Goldman Sachs Forecasts Another 40% Rally for Korean, Taiwanese Markets in 2026
Goldman Sachs analysts project a significant additional upside for Korean and Taiwanese benchmark indices in 2026, following an anticipated doubling of these markets. The investment bank attributes the robust outlook to strong corporate earnings and an underestimated longevity of the global semiconductor cycle.
Tumisang Bogwasi
Tumisang Bogwasi
Seoul, South Korea, and Taipei, Taiwan — Analysts at Goldman Sachs project a further 40% gain for the benchmark stock indices in South Korea and Taiwan in 2026, building on an anticipated doubling of these markets earlier in the year. The optimistic forecast underscores the firm’s conviction in the sustained strength of corporate earnings and the prolonged resilience of the global chip cycle, according to a recent report.
Highlights
- Korean, Taiwanese markets projected to double by 2026.
- Goldman Sachs forecasts additional 40% gain.
- Robust earnings identified as primary growth driver.
- Chip cycle longevity underestimated by wider market.
Earnings are cited as the primary catalyst propelling the significant rallies expected across both Korean and Taiwanese benchmark indices through 2026. This earnings-driven momentum is a key factor in Goldman Sachs’s bullish stance, suggesting that corporate profitability will continue to outpace broader market expectations, as noted in the firm’s analysis MarketWatch summary.
Goldman Sachs analysts contend that the market is currently underestimating the duration and strength of the semiconductor cycle. Given that both South Korea and Taiwan are global powerhouses in chip manufacturing and technology, a prolonged upward trend in the semiconductor industry is expected to disproportionately benefit their economies and equity markets. This view aligns with broader industry discussions on the long-term impact of advancements like artificial intelligence on chip demand, as discussed in Goldman Sachs Research.
The projected gains for 2026 follow an impressive anticipated performance where these markets are seen to have already doubled. Such growth rates, if realized, would position Korea and Taiwan among the best-performing global equity markets, attracting significant capital inflows and investor interest in their highly export-oriented, tech-centric economies.
Regional Implications
These projections carry substantial implications for regional capital markets and broader economic stability. An sustained rally in South Korean and Taiwanese equities would likely bolster foreign direct investment into key technology sectors, particularly semiconductors, electronics manufacturing, and software development. This increased investment could further solidify their positions in global supply chains, drawing more capital into their respective economies.
Furthermore, the predicted market performance could lead to a strengthening of the Korean Won and the New Taiwan Dollar against major currencies, reflecting investor confidence and improved trade balances driven by robust tech exports. This currency appreciation would impact import costs and potentially influence monetary policy decisions by the Bank of Korea and Taiwan’s Central Bank, which may consider interventions to maintain export competitiveness if currency strength becomes excessive.
Such a strong outlook could also encourage domestic consumption and capital expenditure, fueling a positive feedback loop within the local economies. However, it also highlights the concentration of risk within the technology sector; any unforeseen slowdown in global tech demand or shifts in geopolitical dynamics could introduce volatility, despite Goldman Sachs’s current optimistic assessment of the chip cycle’s longevity. Investors typically monitor Goldman Sachs equity outlooks for insights into regional market drivers.
