[Goldman Sachs lowers the 12-month target price of South Korea's Kospi Index by 25% due to increasing concerns about AI trading] On October 25, as the market's concerns about AI trading intensified, Goldman Sachs Group strategists lowered the target price of South Korea's Kospi Index by 25%. This is the bank's first major cut after raising its target several times this year. Analysts lowered their 12-month target for the index to 9,000 from 12,000, citing the need for more conservative valuation assumptions after the benchmark fell more than 35% from its June high. Strategists believe that this round of selling has left South Korean stocks severely undervalued, and the adjusted target still means that the index has room for more than 60% upside from current levels. Chip manufacturing giants such as Samsung Electronics and SK Hynix have made South Korea's Kospi Index a bellwether for artificial intelligence trading. Investors are increasingly worried about the sustainability of the industry's huge infrastructure spending, while financing costs are rising and there are few signs that these investments will provide adequate returns. Related selling pressure has spread to South Korea's overall stock market. Goldman Sachs strategists estimate that current semiconductor stock valuations mean the industry's earnings will fall 65% in 2027, but the bank believes this scenario is overly pessimistic. Stocks outside the memory chip industry make up about half the index, currently trading at 7.6 times forward earnings.