Citi reiterated its bullish KOSPI call as the benchmark swung sharply, with Tuesday's rebound triggering a buy-side sidecar after another bout of intense volatility in South Korean equities.
Citi reiterated its 10,000 KOSPI target, arguing the recent selloff in South Korean equities is a technical correction rather than a sign of weakening fundamentals and could offer a buying opportunity. The benchmark index, which has been highly volatile in 2026, fell into a broader decline after reaching a record closing high of 9,114.55 on June 22, but rebounded 3.56% on Tuesday to close at 6,747.95 after dropping more than 4% on Monday. The rally was strong enough to trigger a buy-side sidecar at 12:41 p.m., temporarily suspending program buy orders after KOSPI 200 futures rose 5% or more for at least a minute. Citi told clients that market headwinds have peaked and said strong economic fundamentals and a market-friendly policy mix could support a recovery. From Tuesday's close, Citi's target implies roughly 48% upside and remains nearly 10% above the previous closing record. Volatility has remained a defining feature of the market, with the Korea Exchange triggering circuit breakers seven times through mid-July, versus none in 2025, while annualized volatility on the KOSPI has climbed above 60%.