Noh Young-rae

The Korean stock market is dominated by Samsung Electronics and SK Hynix, which together account for nearly half of the KOSPI 200 cap-weighted index. To outperform the market, investors need to allocate roughly half their domestic equity portfolio to these two semiconductor leaders, as only about 20-30 other stocks can beat them on a risk-adjusted basis. The AI cycle and strong earnings momentum support continued leadership. The Samsung strike is a non-event for long-term investors and could resolve positively.

The Korean stock market is dominated by Samsung Electronics and SK Hynix, which together account for nearly half of the KOSPI 200 cap-weighted index. To outperform the market, investors need to allocate roughly half their domestic equity portfolio to these two semiconductor leaders, as only about 20-30 other stocks can beat them on a risk-adjusted basis. The AI cycle and strong earnings momentum support continued leadership. The Samsung strike is a non-event for long-term investors and could resolve positively.

Hyundai Motor Group is attractively valued with explosive upside potential from robotics (Atlas, humanoid) and operational cost savings from automation, making it a large-cap 'joker' in the current market.

Kioxia, the surviving Japanese NAND flash maker (descendant of Toshiba memory), is expected to report operating profit exceeding Toyota Motor this year (about 4 trillion yen vs Toyota's 3 trillion yen). It represents the revival of Japan's semiconductor industry and could become a national stock.

Japan is rearming and loosening its pacifist constitution, and the US is stepping back while Japan steps up. Mitsubishi Heavy Industries and Kawasaki Heavy Industries are the few remaining comprehensive defense contractors with significant upside potential. Once the restrictions are fully lifted, their ceiling is hard to estimate.