The Dawn of a National Re-rating: Global Investment Banks' Perspective on the South Korean Market for H2 2025
Executive Summary Beginning in May and June 2025, major global investment banks (IBs) have pivoted from their previous cautious stance to a distinctly constructive view on the South Korean market. This shift in tone is the result of a complex interplay of three key drivers: the mitigation of geopolitical trade risks, expectations of expansionary fiscal policy based on domestic political stability, and the increasing visibility of corporate governance reforms through the "Corporate Value-Up Program." This report synthesizes and deeply analyzes the latest investment opinions on the South Korean economy and stock market from reports and market analyses published by major global IBs, including Goldman Sachs, Morgan Stanley, J.P. Morgan, and UBS, since May 2025. The analysis reveals that a new consensus is forming among IBs: South Korea's domestic policy momentum can serve as a powerful buffer against external volatility. This is materializing in the form of upgraded KOSPI p...