This Week Individuals Bought All 24 Trillion Won of Foreign Selling: Buying the Dip in a Crash — Crisis or Opportunity? Who Will Buy NPS Volume in July?

Summary

Director Lee Ju-yeon analyzes the severe sell-off in Korean equities, where retail investors bought a record 24 trillion won in one week, absorbing heavy foreign and institutional outflows. She argues the decline is supply-driven rather than fundamental, and though near-term headwinds like NPS rebalancing in July will limit upside, the market offers dip-buying opportunities. She highlights semiconductor equipment stocks benefiting from memory capex and undervalued biotech names like LigaChembio as attractive areas.

• KOSPI and KOSDAQ suffered broad-based declines, but individuals aggressively bought 24 trillion won this week, absorbing foreign selling.
• The sell-off is attributed to supply/demand factors, not fundamental deterioration, with high individual leverage and derivative hedging exacerbating volatility.
• The National Pension Service is heavily overweight domestic equities and will be forced to sell from July, creating a supply overhang.
• Korean semiconductor equipment stocks are benefiting from massive memory capex by Samsung and SK hynix, showing resilience amid market turmoil.
• The biotech sector, especially LigaChembio, has fallen sharply and is seeing strategic buying from institutions, presenting a low-price entry opportunity.