The Korea Composite Stock Price Index (KOSPI) recently approached the 8000-point threshold before entering a consolidation phase, pressured by profit-taking following a sharp short-term rally. However, from the perspective of the financial investment industry, the upward trend for Korean stocks remains intact, supported by earnings growth. Stock price appreciation has not kept pace with corporate profit growth. Data released by Yuanta Securities on the 12th shows that among constituents of the MSCI Global Index, South Korean companies reported net profits of $330 billion over the past 12 months, ranking second globally behind the United States ($2.95 trillion). Japan followed with $300 billion, and the UK with $250 billion. Analysis indicates that compared to its profit scale, South Korea's market capitalization weighting within the MSCI Global Index is significantly lower, which is a core reason for the overall undervaluation of Korean stocks. In terms of the proportion of net profits corresponding to its MSCI Global Index weight, South Korea stands at only 2.3%, lower than Japan (5%) and the UK (3.3%). Yuanta Securities researcher Kim Yong-gu stated, "Among major global economies, South Korea exhibits the largest gap between its profit contribution to the MSCI index and its market cap weighting, making it one of the most severely undervalued markets globally. Currently, the pace of stock price increases is completely failing to keep up with the market's upward revisions to earnings expectations." Major brokerages consistently forecast that net profits for South Korean companies within the MSCI index are expected to increase to 380 trillion won by the end of next year and further rise to 400 trillion won by 2028. Boosted by industry sentiment, Citigroup significantly raised its target prices for two South Korean companies the previous day: Samsung Electronics' target price was raised from 300,000 won to 460,000 won; SK Hynix's target price was raised from 1.7 million won to 3.1 million won. Earlier this month, Citigroup had lowered Samsung Electronics' target price from 320,000 won to 300,000 won, considering potential losses from a possible strike by its union. Less than 10 days later, driven by a significant surge in memory chip prices, the target price was raised substantially again. Citigroup analyst Peter Lee said, "We initially estimated that strike-related provisions might drag down performance by about 10%. Even factoring this in, we still judge there is further upside potential for the memory sector." He also predicted, "Even if a strike materializes, it would be a short-term, company-specific risk. Instead, it could exacerbate the global shortage of memory chip supply, benefiting major memory players like Samsung Electronics, SK Hynix, and Micron in terms of pricing." Against the backdrop of strong semiconductor earnings growth, the market has begun actively discussing the KOSPI potentially reaching the 10,000-point mark. Currently, the KOSPI's trailing 12-month price-to-earnings ratio (P/E) is only 8.5 times, lower than levels seen during past global financial crises. Analysts believe that, supported by strong performance driven by semiconductors and the logic of value re-rating, as long as valuations return to reasonable levels, the index has a solid foundation to stabilize and break through the 10,000-point level. However, some viewpoints note that South Korean stocks, which have gained 81% year-to-date, face short-term adjustment pressures. IBK Investment & Securities researcher Byun Joon-ho stated, "Leading economic indicators highly correlated with the KOSPI are likely to peak around August-September; semiconductor export growth may also start slowing from September. Coupled with uncertainties such as the Jackson Hole Economic Symposium and U.S. midterm elections, market volatility is expected to increase significantly after the summer rally." Second-quarter earnings expectations for Samsung Electronics and SK Hynix are expected to support the stock market rally continuing into July. However, if operating profit growth momentum slows in the third quarter, the overall upward trend in earnings will also weaken accordingly. On Tuesday, the Korea Composite Stock Price Index closed at 7643.15 points, down 2.29%. During the session, it initially surged to an intraday high of 7999.67 points in the morning, then quickly retreated to a low of 7421.71 points, marking a maximum intraday decline of 5.12%, resulting in a roller-coaster trading day.