Goldman Sachs Asia chief equity strategist Mu Tianhui said Korean stocks should
rebound after a sell-off that triggered a market circuit breaker. The KOSPI
plunged as much as 8.8% on Monday, leading Asian tech stocks lower; the drop
followed an AI-driven rally and concentrated, leveraged buying in a few
semiconductor and tech names. Mu said rising retail speculation — notably
purchases of leveraged ETFs — and forced liquidations of piled-up positions
amplified the decline. Goldman last week raised its Korea and Taiwan market
forecasts on expectations that the AI cycle will drive profit growth; Mu said
fundamentals remain strong, valuations are reasonable, and earnings upside
should continue to support gains.
