Korea's EPS Upward Revisions Hit 95.2% as Semiconductors Face Peak Out Risk, Robeco Says

Robeco Asset Management released its H2 2026 global market outlook on July 14, with Asia-Pacific equity head Joshua Crabb noting that Korea's extraordinary earnings revision rally masks mounting concerns over peak profitability. According to Bloomberg data cited by Robeco, Korea's 12-month forward earnings-per-share revisions reached 95.2% in the past three months, far outpacing Taiwan's 8.5%.

Despite record profit growth in semiconductors, the Korean market trades at historically depressed valuations. The KOSPI's 12-month forward price-to-earnings ratio stands at 6.35x, lower than levels during the 2008 financial crisis (6.82x on October 26). Crabb emphasized that the pace and magnitude of any earnings decline matter most; if profit contraction remains gradual and modest, investor sentiment could shift as markets recognize current undervaluation. Robeco's Chris Berkouwer added that long-term government support and extended supply contracts are extending the semiconductor cycle beyond traditional peaks.