Goldman Sachs predicted that the benchmark Korea Composite Stock Price Index (KOSPI) would reach the 2,900-point level and South Korea's per-capita gross domestic product (GDP) would surpass US$30,000 (32.64 million won) in 2018.
“Goldman Sachs believe that it should expand the proportion of South Korea, China and India in terms of stock market. The main KOSPI is expected to hit the 2,900-point level next year,” Goldman Sachs head economist Kwon Goo-hoon said in a press conference on the country’s 2018 macroeconomics and stock market outlook at the Seoul office in Gwanghwamun on December 5.
In addition, he said South Korea’s economic growth rate would reach some three percent next year, surpassing the existing consensus of 2.9 percent, driven by the global economic recovery and the increase in domestic consumption.
Goldman Sachs also predicted that South Korea's per-capita GDP would break the US$30,000 (32.64 million won) level in the middle of next year for the first time. When South Korea sees its GDP exceed US$30,000 (32.64 million won), it will be the ninth country achieving the landmark among the members of the Organization for Economic Cooperation and Development and the third in Asia after Japan and Australia.
Goldman Sachs said South Korea’s stock market is bullish as the boom in memory chips has continued and the country is benefiting from the global economic recovery. In particular, South Korea has an advantage for the fourth Industrial Revolution.
Kwon said, “Currently, the global economy is most driven by the trend of information and communication technology (ICT). South Korea has the ICT sector accounting for nearly 10 percent of its GDP and taking up the second most proportion in Asia after Taiwan. So, the country has an industrial structure that can benefit from the fourth Industrial Revolution.
Meanwhile, Kwon has maintained a positive outlook for Samsung Electronics that has mixed outlooks among foreign investment banks. He said, “I am a macro-economic expert but I have a positive outlook for Samsung Electronics. The company’s target stock price continues to rise and the demand of DRAM chips, which some say the industry will peak soon, is expected to remain stable, though the price of NAND chips is decreasing.”