Those Who Bought Inverse and Those Stuck with Long-Term Bonds... | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik argues the sharp Korean stock market drop is a panic opportunity and expects a strong rebound next year. He tells long-term Korean bond holders to wait about a year as GDP growth should slow and yields fall. He also sees the Japanese yen as deeply undervalued and prefers Japanese high-dividend stocks. Finally, he discusses Korean corporate governance, arguing companies like SK Hynix should monetize stakes and return cash to shareholders.

• Korean stocks suffered a 40% panic decline; Park compares it to the COVID crash and expects a 'chimaek party' rebound.
• He advises buying the fear and focusing on rebound leaders.
• Long-term Korean bondholders should hold about one year because GDP growth is expected to fall and yields should decline.
• Big Mac and tonkatsu curry indices show the yen is extremely undervalued; he prefers Japanese high-dividend stocks to capture dividends and yen recovery.
• Complex Korean listed structures create discounts unless companies sell stakes and return capital.
• SK Hynix should monetize part of its Kioxia stake and return proceeds via dividends or buybacks.
• LG Chem's LG Energy Solution listing is cited as a historical example of failing to return value to existing shareholders.