Morgan Stanley Cuts KOSPI Bear-Case Target to 6,000

South Korea’s KOSPI has been propelled by leveraged exchange-traded funds and heavyweight chipmakers, as investors bet on artificial-intelligence demand and a memory-sector upcycle. Morgan Stanley said that momentum now appears vulnerable to fatigue after an ETF-driven rally. The warning matters because the benchmark’s concentration in Samsung Electronics and SK Hynix can amplify market swings when foreign investors reassess risk or expectations for the semiconductor industry weaken.

In its latest report, Morgan Stanley lowered its bear-case target for the KOSPI to 6,000, citing signs that trading enthusiasm had faded after leveraged ETFs helped drive the advance. On the same day, Citi cut its rating on South Korean equities to neutral. Weakness in Samsung Electronics and SK Hynix, two of the index’s largest constituents, added pressure to the broader market and reinforced concerns that the rally was losing momentum.