The Real Reason Samsung Electronics and SK Hynix Target Prices Rose / Why Are Semiconductor Materials, Parts, and Equipment Stocks Gaining Attention as KOSDAQ Leaders? | CEO Kim Min-soo

Summary

CEO Kim Min-soo of Lemon Research argues that the Korean market remains a 주도주 (leading stock) environment dominated by semiconductors. He explains that memory giants Samsung Electronics and SK hynix are seeing a structural valuation re-rating that supports much higher target prices, while KOSDAQ's rebound is being driven by semiconductor materials, parts, and equipment (소부장) stocks rather than old leaders like biotech or batteries. Within equipment, front-end process plays benefit first from capacity expansion, with back-end to follow later. Investors should concentrate on these leaders and stay positioned through pullbacks.

• The Korean market is driven by concentrated leaders (주도주); semiconductors are the current leaders, and trickle-down to other sectors is unlikely.
• Samsung Electronics and SK hynix can re-rate from 6-10x to ~15x P/E due to a prolonged memory upcycle and structural change, implying further significant upside.
• KOSDAQ is being led by semiconductor materials/equipment stocks, not by biotech or secondary batteries.
• Global equipment shortages, massive Chinese AI investment, and US restrictions are funneling demand to Korean 소부장 companies, which remain undervalued versus global peers.
• Within equipment, front-end (deposition, etch, cleaning) benefits immediately from fab construction; back-end (packaging, testing) will become more important as HBM volumes grow.
• The speaker advises focusing on semiconductor leaders and adding during corrections rather than chasing non-semiconductor names.