Investing.com — A South Korean chipmaker is forecast to surpass a U.S. graphic chip giant as the world’s most profitable company by 2027, driven by a surge in memory semiconductor earnings that is expected to lift South Korea’s broader equity market to record highs.
is projected to post an operating profit of KRW488 trillion with a 61.6% margin in 2027, edging past ’s KRW485 trillion, according to Bloomberg consensus data compiled by KB Securities.
Fellow Korean memory chipmaker is forecast to rank third globally with KRW358 trillion in operating profit and a 79.6% margin, the highest among the top 11 companies.
The rankings mark a significant climb for both Korean firms. Samsung Electronics and SK hynix are expected to rank second and fourth globally in 2026, before rising to first and third respectively in 2027, the report said.
The projected earnings surge is set to ripple through South Korea’s public finances. Combined corporate tax payments from Samsung Electronics and SK hynix are forecast to rise 12 times year-on-year to KRW141 trillion in 2026, reaching approximately KRW203 trillion up 44% year-on-year, in 2027, per KB Securities estimates.
The combined net profit for the two companies in 2026 is estimated at $316.8 billion, equivalent to roughly 75% of Korea’s foreign exchange reserves, the report noted.
Planned investments in the Pyeongtaek P5 facility and the Yongin semiconductor cluster are expected to generate substantial dollar inflows, contributing to rate stabilization.
At the index level, operating profit is projected to reach KRW792 trillion in 2026, a 165% year-on-year increase, before surpassing the KRW1,000 trillion threshold at KRW1,044 trillion in 2027.
Excluding memory semiconductor earnings, 2026 KOSPI operating profit is still expected to grow 37% year-on-year, with gains broadening across defense, shipbuilding, machinery, oil refineries, energy and robotics sectors.
“KOSPI is currently trading at 12m fwd P/B of 1.4x―a steep discount vs. the global and Asia EM averages of 3.1x and 2.0x, respectively,” KB Securities said, adding that compared to markets with similar return-on-equity levels of around 20%, the U.S. at 4.5x and Taiwan at 3.9x, the index appeared undervalued.
KB Securities set a 2026 KOSPI target of 7,500 points, implying a P/B of 2.0x, citing the semiconductor earnings cycle and government measures including revisions to the Commercial Act aimed at improving corporate governance.
Foreign investors recorded net selling of KRW66 trillion in Korean equities and bonds in February and March, with KRW55 trillion concentrated in March alone, driven by profit-taking, government bond redemptions and Middle East geopolitical risks, the report said.