STOCKS | Brokerages Say South Korea’s KOSPI Is Deeply Undervalued, Recommend Gradual Buying Below 6,000

Brokerages describe South Korea’s KOSPI as deeply undervalued and recommend gradually adding positions below 6,000. According to Sina Finance, Korean stocks are expected to be influenced over November 2–6 by the U.S. midterm elections and several key economic data releases. The U.S. midterm elections for the House and Senate will take place on November 3 (local time). Polls suggest Democrats could regain control of the House, while the Senate race is tight. A Democratic sweep could constrain further fiscal expansion and tax cuts under the Trump administration. Brokerages expect market uncertainty to ease after the election, regardless of the outcome. Data releases beginning November 3 include the U.S. October ISM manufacturing index. On November 4, ADP will publish its October private-sector employment figures, and the Labor Department will release September JOLTS data. The October ISM services index is due November 5, followed by the October nonfarm payrolls report on November 6. Markets expect modest job growth and an unemployment rate near 4.2%. Experts expect the U.S. labor market to continue expanding steadily and moderately, with employment data influencing the Fed’s year-end rate decision. NH Investment & Securities researcher Na Jeong-hwan said investors should focus on stocks rising on strong volume during the KOSPI’s rebound from the low 5,000s, adding that stocks with sustained inflows could lead the rally. Brokerages put the KOSPI’s forward P/E at just 4, an extremely low level, but say a sustained advance depends on confidence in earnings growth for 2027 and 2028 and continued net buying by foreign investors. Yuanta Securities Korea researcher Lee Jae-won said investors could gradually add positions below 6,000 based on shareholder return yield and P/B valuations, while maintaining semiconductor holdings and targeting materials, parts and equipment, and energy storage systems for excess returns. Daol Investment & Securities researcher Jo Byeong-hyeon said the P/E of 4 reflects a fully priced-in earnings discount, and advised keeping the first target below 6,600 even if positive developments materialize.