Woofun AI reports that JPMorgan Chase maintains an overweight rating on South Korean equities, citing solid fundamentals and significant relief in leverage pressure. The bank attributes the recent KOSPI decline of approximately 28%-29% from June 22 highs to amplified deleveraging by leveraged funds and ETFs rather than a systemic reversal. Data indicates relevant leveraged ETF sizes have contracted from $50 billion to $26 billion, representing 75% deleveraging progress, while long-short equity fund ratios have dropped below 4 times. JPMorgan sets a 12-month KOSPI target of 12,500 points, noting that retail financing risks remain limited to small-cap stocks and foreign outflows are driven by portfolio rebalancing rather than fundamental pessimism.