# Goldman Cuts Kospi 12-Month Target by 25% as AI Trade Unravels

> **Open Intelligence Dossier** · First detected: 2026-10-26 05:20 UTC · Category: Business

## Executive Summary
Goldman Sachs has slashed its 12-month price target for the Kospi by 25% as the AI-driven trade unravels and market capitalization plunges.

## Intelligence Brief
The South Korean stock market is experiencing significant volatility as Goldman Sachs reduces its 12-month price target for the Kospi by 25%. This adjustment comes as the AI trade unravels, contributing to a broader decline in Seoul stocks. The Korea Herald reports that stocks opened lower in anticipation of upcoming earnings reports and a decision from the Federal Reserve. The market downturn has had a severe impact on major corporate entities, with BigGo Finance reporting that approximately $830 billion in market capitalization has been wiped off the top 10 groups. Specifically, SK saw a sink of 30%, while LG managed to limit its losses to 5.3%. Coverage of the situation is widespread across several financial outlets. Bloomberg.com emphasizes that the reduction in the price target is a direct result of the unraveling AI trade.


Business Insider highlights the extreme volatility of the market sentiment, describing the transition of the AI trade from panic to euphoria within a 24-hour window. Meanwhile, Yahoo Finance confirms the specific action taken by Goldman Sachs regarding the Kospi price target. The reports collectively illustrate a period of instability for South Korean equities, characterized by sharp drops in the valuation of the country's largest conglomerates. Contextually, this downturn is occurring against a backdrop of high sensitivity to global macroeconomic indicators and sector-specific trends. The reliance on the AI trade has created a volatile environment where sentiment can shift rapidly. Barron's provides a contrasting perspective to the general bearish trend, noting that some analysts remain bullish into the year-end. This perspective focuses on the possibility of the Kospi bottoming out, while simultaneously considering the potential for Brent crude oil to reach a topping point.


This tension between immediate losses and long-term bullishness defines the current market atmosphere. Looking ahead, market participants are focused on several key catalysts. According to The Korea Herald, the immediate focus is on the release of upcoming corporate earnings reports and the forthcoming decision from the Federal Reserve. These events are expected to influence whether the Kospi continues its downward trajectory or finds a bottom as suggested by the analysis in Barron's. Observers will likely monitor the recovery or further decline of the top 10 corporate groups, particularly SK and LG, to gauge the lasting impact of the AI trade unraveling on the South Korean economy.

## Multi-Source Evidence Table
| Source Outlet | Headline | Verification URL |
|---|---|---|
| TradingView | BABA, BIDU, SKHY in Focus: Morgan Stanley Sees More Downside In Chinese Stocks, Goldman Sachs Cuts KOSPI Target | [Source Link](https://news.google.com/rss/articles/CBMi_AFBVV95cUxPNDIzWEpCeUhWWW50RFBfZlRtWGU4SXN6YnlTdGN2NF9GLVRYZXBpM3c5S2VGSm8wOGZJSHlNSU11LU4tWlk0MGFfQzFpVmhiNHk2UkE5UkJYQnJ2XzUtS0htZDVlNUpQWFQ1M19yY00xekVoUXBnOUFrQk5QR0NRSk92aWZjVlVsLWJXN0xtWmt1RXplOUx1RjFzT0pkNnhyREhMTTNEeUotejN4elIzcE5CRzRWRnRPY1N2cS1QMlEyM01FVDNicDVQZ0lCWENhODBTempjaU5sYm10Mmh1RkFWT1R1YWEzVFpWWmRibVZac0ZJUDRqMHNuWEw?oc=5) |
| Stocktwits | BABA, BIDU, SKHY in Focus: Morgan Stanley Sees More Downside In Chinese Stocks, Goldman Sachs Cuts KOSPI Target | [Source Link](https://news.google.com/rss/articles/CBMigAJBVV95cUxNcGIzRlFNWThRODhLclltdnFNTFFuTXYyUmRTclM4SjZRRjlGbDlDMHRNcjNiaFhTYTVCTjA2VFBkRnRxYnRGNkVmZl9kNERYUGNJajFleXZyWGx0dml5SHJ1YVhiXzYyeFZTakdaM2FOOWJrVnV3ejNxTWRMU2N6emZKOC11dWIzcnFpU2NXOEFVSG1BWXliSHhiZWZoUHF4eklMTEE0LWdVSEtoYzN4S1hlTmxWcnpLbWtTQUR6RU5IczA5ZFFSalBGb1JNVG5XTjRJSjJwVmxSX084eVdldzNWNC1NN2h4clJjTTktY0xzRS1aTEM4V3RSanBYTzBu?oc=5) |
| The Korea Herald | Seoul stocks open lower ahead of earnings reports, Fed decision | [Source Link](https://news.google.com/rss/articles/CBMiV0FVX3lxTE4wOW9qX19HMXVfLVBFZHQ4X216RHdTel85QnR5eU54c2RKcEZ6YWtZaDdtclFSUFFZLVBXeHQ4RzQ0LTJWQWlIaXdGaVBkQ3hYeVFacjFvVQ?oc=5) |
| BigGo Finance | South Korea's Kospi Plunge Wipes approximately $830 Billion Off Top 10 Groups' Market Cap; SK Sinks 30%, LG Limits Loss to 5.3% | [Source Link](https://news.google.com/rss/articles/CBMidkFVX3lxTE9PejBoVjF3Mk1PcGJEUDNKdS12OFhvOXJHM25zc0xCdjdQYUJvbU1STVRkXzYxT3dzRWwwN2FWdWxadlNoZE1HZnlQdW5lN24wV3c2WHU2ckwtRlZFMlMtN2RLY19yVmJBbkFmQ0Q5b3NNTThOVVE?oc=5) |
| Business Insider | South Korea's AI Trade Just Went From Panic to Euphoria in 24 Hours | [Source Link](https://news.google.com/rss/articles/CBMiogFBVV95cUxNejd3Mml6OWdzS0sxSDBCWlRSVkdydEh4azY3RkxnSEVLVU9CUDFSazNOU2J6QUN6eEh1Q25PMzB1czhFVWRrRi1PMWNScGdrUDFyYU0zSnZiRTY1MnkxRkM2dVFTLTBQZU5pQ1FSc2lDUEVfalI0VDFqZkM5dTZTeHpYSUFKRi1POHZPQUJTazJYeGZSZW1lbW1lMmQ3X3ZRYmc?oc=5) |
| Barron's | Still Bullish Into Year-End: Thoughts on the Kospi Bottoming and Brent Topping | [Source Link](https://news.google.com/rss/articles/CBMijAFBVV95cUxQZVlDWmRRbW9jQjhLUmlMbmJBZl9xUHNqVG52bThya1NHMHJxSG1oSEhpeTFzaTB6LWZGVVk5Y1JuQkNSOWhGSlpRQXpnandiNWhXcVJrLU4xRDNzRTIwNTNNS2pOMDFFY0QxUFJWeE1kY3NBMVZ5LXZPa3RkWnY1bDdva2JWT2pYOXc1RQ?oc=5) |
| Yahoo Finance | Goldman Sachs Cuts Its Price Target for South Korea’s KOSPI | [Source Link](https://news.google.com/rss/articles/CBMipgFBVV95cUxPUVlsOHRFeUYzWkQ0ang4dlR0ZzM1SDFfR3pNZi02RzVycDZLdy0xcElMQTNwU050ZTF3cWRST0tadkZDQjAyWkYxRUUySlVfdUFYaXRWY2FOOUh3VFVocmZ0am9fT2RaQkZ0ZzlxZTdNTzBNVld1eUdJeWZ3X0VyT0gtZU9kSnJUWTg3bjFNWlVtM0VXdVF2Q01QNFhwbGoxalN6X2Fn?oc=5) |
| Bloomberg.com | Goldman Cuts Kospi 12-Month Target by 25% as AI Trade Unravels | [Source Link](https://news.google.com/rss/articles/CBMisgFBVV95cUxNM1VnbnF1OVc5Y0RrZTdNWE5tdGszNVZTdTZzd1I0ZXVKc2sxalFZY3pYazRGcWxSdUFSVDBwdERyRVFISFlRWTdTdmdkakpIdU9oMW1TamxmWmIycVhVVXdNWVZrZ3FKZm9LNGNPV0I0MXRqQmJncnQ1QUtCSlYyWFAtN0doV1E2VzBiQmMzRnJiUk9BVmFpVGhrcENIUHAtb1NQT2Fhc2hVcjFfRFpXZjh3?oc=5) |

---
*Canonical Source: https://pulse.byoviral.com/trend/2026-10-26/goldman-cuts-kospi-12-month-target-by-25-as-ai-trade-unravels*