South Korea’s benchmark index has regained bullish momentum with a significant rebound in chip shares, led by Sandisk’s positive growth forecast, though analysts remain cautious about the sustainability of this rally.
South Korea’s Kospi has moved back into bull market territory after a strong rebound in semiconductor shares pushed the index more than 20% above its July low. The latest advance came after a sharp recovery in technology stocks, with chipmakers again setting the pace in Asian trading.
The immediate catalyst was Sandisk, which surged after executives set out a long-term plan for steady revenue growth through fiscal 2030. The company said it expects mid-to-high-teens annual sales growth and adjusted gross margins of about 80%, while also signalling that it intends to return all excess cash to shareholders once investment needs are met.
That outlook helped lift the wider memory-chip complex. Micron, SK Hynix, Seagate and Western Digital also advanced, reinforcing the view that investor appetite has returned to the sector after a period of heavy selling. Reuters and other market reports have noted that South Korea’s benchmark tends to track the fortunes of chips closely, given the sector’s outsized role in the country’s exports and stock market performance.
Even so, some analysts are warning against reading too much into the latest move. KB Securities’ Peter Kim has argued that the earlier sell-off was driven more by positioning and fund flows than by a fundamental change in earnings expectations, while Jung In Yun of Fibonacci Asset Management Global said it would be premature to call the latest rise a completely new bull market.
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