KOSPI Drops Below 6,000 Today as Forward PER Hits 5.8x, Lowest Since 2008 Crisis

According to Herald Economy, major South Korean brokerage research centers diagnosed the KOSPI's drop below 6,000 today (July 22) as excessive price correction driven by fear and liquidity issues, not deteriorating fundamentals. The KOSPI's 12-month forward price-to-earnings ratio fell to 5.8x, lower than levels during the 2008 financial crisis (6.4x), while corporate earnings remained intact. Researchers attributed the decline to mounting doubts about AI investment sustainability, semiconductor peak-out concerns, foreign profit-taking, and deleveraging across single-stock leveraged ETFs.

The research centers expect a potential rally restart in the third quarter if U.S. big tech earnings and AI investment guidance confirm the cycle's viability. Semiconductors and AI are seen leading any rebound, with potential spillover to defense, power machinery, and other underperforming sectors. Year-end KOSPI targets ranged from 8,000 to 10,900, reflecting continued mid-term upside conviction despite near-term volatility.