With the KOSPI extending a run of fresh records since the start of the new year, Korea Investment Securities raised its target for this year to 5,650 from 4,600.

In a report on Tuesday, Korea Investment Securities researcher Kim Dae-jun explained the upgrade, saying corporate earnings are surging, led by semiconductors.

He said the KOSPI's 12-month forward EPS stood at 435 points as of Jan. 6, 28.8 percent higher than in an October 2025 forecast. He added that he would apply that EPS change rate in calculating the new outlook.

He added that the appropriate PER used to estimate the target was 13 times, and said it was achievable given an expected strengthening of shareholder return policies.

He also set the index floor at 4,100.

He expected the KOSPI to stay at least above 4,000 even if it turns weak, thanks to higher earnings than in the past.

He forecast the index path to show gains in the first half and a sideways move in the second half.

He said U.S. rate cuts expected in the first half and South Korea's fiscal expansion policy would proceed as planned, and recommended increasing investment allocation in the first half on that basis.

[Yonhap News Agency]