Seoul: South Korea's stock benchmark is anticipated to reach approximately 4,000 within the next 12 months, as stated by an analyst from JPMorgan Chase and Co. on Monday. Mixo Das, head of Korea equity strategy at JPMorgan, elaborated on the projection, mentioning that there is a favorable scenario where the target could exceed 5,000.

According to Yonhap News Agency, Das provided three primary reasons supporting this forecast, starting with the global easing of monetary policies initiated by the United States. He expressed a bullish sentiment on risk assets globally, indicating a trend where investors might increasingly pursue risky assets and equities, potentially making it a worldwide phenomenon.

The analyst emphasized Korea's strength in advanced technologies, citing sectors like defense, shipbuilding, and high bandwidth memory for AI data centers as key factors for the optimistic outlook. He noted that these sectors are critical to national security and are protected against Chinese competition by government policies.

Das also pointed out that for enhanced investor confidence, Korean companies need to improve returns to shareholders. He mentioned that the government's corporate code reform should progress positively, which could further influence investor perspectives. The current situation, according to Das, is a wait-and-see phase for many investors as they observe the implementation of these regulatory changes.

The insights were shared during the Korea Capital Market Conference, a two-day event in Seoul organized by the Korea Exchange (KRX), featuring participants from local and international financial institutions.