UBS raises rating on South Korean stock market, optimistic about semiconductor earnings outlook

Golden Ten Data reported on March 5 that the Chief Investment Office of UBS Global Wealth Management stated in its report that after a significant decline earlier this week, the valuation of the South Korean stock market now appears more attractive. UBS upgraded its rating for local stocks to "attractive" after the South Korean stock market experienced a roughly 20% correction, noting that this correction reflects "technical deleveraging rather than a deterioration in fundamentals." UBS pointed out that, amid supply shortages, DRAM prices remain high, which will support strong earnings growth for South Korean semiconductor manufacturers. "Importantly, this momentum is not just a short-term phenomenon, but is driven by structural trends such as global AI infrastructure development, digital transformation, and South Korea's leading position in advanced manufacturing." UBS expects that by the second half of 2027, DRAM spot prices will nearly double, rising to $1.7 per Gb.