Min Jae-gi

Samsung Electronics and SK Hynix remain the core semiconductor leaders; despite strong share price gains, their forward P/E ratios are still only 6.8x and 8x respectively, compared to Micron's 15x, and they are likely to re-rate toward at least 10x as earnings continue to surge. Their rapid recovery from the recent selloff further confirms market leadership and justifies a large portfolio weighting.

Samsung Electronics and SK Hynix remain the core semiconductor leaders; despite strong share price gains, their forward P/E ratios are still only 6.8x and 8x respectively, compared to Micron's 15x, and they are likely to re-rate toward at least 10x as earnings continue to surge. Their rapid recovery from the recent selloff further confirms market leadership and justifies a large portfolio weighting.

Korean renewable energy is a neglected theme poised to return in 2H. The government will announce the Korean Green Transformation (KGX) and a domestic IRA in July, targeting a massive increase in renewable capacity from 39GW to 100GW by 2030. SK Group, with its renewable subsidiaries like SK Eternix and SK Ocean Plant, is the primary vehicle. The policy push, combined with green bond financing, creates a catalyst for a sector rotation when semiconductor momentum eventually cools.