Stock Markets April 26, 2026 06:35 AM

South Korean Memory Makers Poised to Top Global Profit Rankings by 2027

Bloomberg consensus compiled by KB Securities projects Samsung and SK hynix will vault to the top of global operating profit standings, lifting KOSPI forecasts

By Nina Shah NVDA
South Korean Memory Makers Poised to Top Global Profit Rankings by 2027
NVDA

Analysts compiling Bloomberg consensus data for KB Securities expect South Korean memory semiconductor firms to drive a dramatic rise in corporate earnings and tax receipts over 2026-2027, with Samsung Electronics forecast to become the world's most profitable company in 2027, narrowly ahead of Nvidia. The surge is projected to lift KOSPI operating profit past the KRW1,000 trillion mark and prompt notable foreign exchange and fiscal effects.

Key Points

  • Samsung Electronics is forecast to post KRW488 trillion in operating profit with a 61.6% margin in 2027, narrowly exceeding Nvidia's KRW485 trillion, per Bloomberg consensus compiled by KB Securities.
  • SK hynix is projected to generate KRW358 trillion in operating profit in 2027 with a 79.6% margin, the highest among the top 11 firms.
  • KOSPI operating profit is forecast to rise to KRW792 trillion in 2026 (a 165% year-on-year increase) and to KRW1,044 trillion in 2027; gains are expected to broaden beyond memory into defense, shipbuilding, machinery, oil refineries, energy and robotics.

KB Securities' aggregation of Bloomberg consensus forecasts points to a substantial reordering of the global profit leaderboard by 2027, led by South Korean memory chipmakers.

The data project Samsung Electronics to record an operating profit of KRW488 trillion in 2027, representing a 61.6% operating margin. That level would place Samsung just ahead of U.S. graphics chip designer Nvidia, which is forecast at KRW485 trillion for the same year.

Also climbing the rankings is SK hynix, another Korean memory specialist. KB Securities' compilation shows SK hynix with an expected KRW358 trillion in operating profit for 2027, and a 79.6% margin - the highest margin among the top 11 companies in the ranking.

Those projected results imply a sharp rise for both Korean firms from the prior year. The report indicates Samsung Electronics and SK hynix are set to sit second and fourth, respectively, in 2026 before advancing to first and third positions in 2027.


Fiscal and macro implications

KB Securities' estimates extend beyond corporate profit tallies and into public finance and currency effects. The combined corporate tax payments from Samsung Electronics and SK hynix are forecast to surge, rising 12-fold year-on-year to KRW141 trillion in 2026 and then increasing to around KRW203 trillion - a 44% year-on-year rise - in 2027, according to the report.

The two companies' combined net profit for 2026 is estimated at $316.8 billion, which the report notes is roughly equivalent to 75% of Korea's foreign exchange reserves. Planned capital expenditures in the Pyeongtaek P5 facility and the Yongin semiconductor cluster are anticipated to bring significant dollar inflows, which the report says should help stabilize the KRW/USD exchange rate.


Index-level effects and broader industry breadth

At the index level, the KOSPI's operating profit is projected to expand sharply, reaching KRW792 trillion in 2026 - a 165% increase year-on-year - before topping KRW1,000 trillion at KRW1,044 trillion in 2027.

KB Securities also models a scenario excluding memory semiconductor earnings, under which 2026 KOSPI operating profit would still be forecast to rise 37% year-on-year. The report highlights a widening of profit gains across multiple sectors, naming defense, shipbuilding, machinery, oil refineries, energy and robotics as beneficiaries.

The brokerage comments on valuation, noting KOSPI is trading at a 12-month forward price-to-book of 1.4x - a marked discount to global and Asia emerging market averages of 3.1x and 2.0x, respectively. Against markets with comparable return-on-equity levels of about 20%, KB Securities cites the U.S. at 4.5x and Taiwan at 3.9x, implying the Korean index appears undervalued on a P/B basis.

On that basis, KB Securities has set a 2026 KOSPI target of 7,500 points, which corresponds to a P/B multiple of 2.0x. The firm points to the semiconductor earnings cycle and government measures - including revisions to the Commercial Act aimed at improving corporate governance - as supporting factors for the target.


Investor flows and near-term pressure points

The report documents notable foreign selling pressure in early 2024, with foreign investors recording net selling of KRW66 trillion in Korean equities and bonds across February and March. Of that total, KRW55 trillion occurred in March alone. The brokerage attributes those outflows to profit-taking, government bond redemptions and geopolitical risks in the Middle East.

These flows and the valuation gap underscore the near-term dynamics market participants will weigh alongside the projected earnings surge from memory semiconductors.

Risks

  • Foreign investor outflows - Foreign investors recorded net selling of KRW66 trillion in Korean equities and bonds in February and March (KRW55 trillion in March alone), driven by profit-taking, government bond redemptions and Middle East geopolitical risks, which could pressure asset prices in the near term.
  • Concentration risk - A large portion of the projected KOSPI profit growth depends on memory semiconductor earnings; while KOSPI profit would still rise excluding memory by 37% in 2026, the index's performance could be sensitive to swings in memory demand and pricing.
  • Policy and valuation uncertainty - Although KB Securities points to government measures including Commercial Act revisions and a target P/B uplift to 2.0x for 2026 KOSPI of 7,500, the realization of these governance changes and valuation re-rating is not guaranteed, introducing uncertainty for equity returns.

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