Keep This Signal in Mind and Watch It Carefully | Hong Seon-ae, Jang Woo-jin, Geumsigong CEO

Summary

Jang Woo-jin, CEO of Geumsigong, argues the Korean market is entering a bear phase except for semiconductor leaders. He advises holding Samsung Electronics, SK Hynix, Samsung Electro-Mechanics, and LG Innotek while avoiding non-semiconductor stocks and KOSDAQ. He is cautious on Korean semiconductor equipment due to stretched valuations and lack of positive reaction. He also notes a long-term power demand theme but says it is not yet actionable.

• KOSPI ex-semiconductors is forming a double top and entering a bear market.
• Samsung Electronics, SK Hynix, Samsung Electro-Mechanics, and LG Innotek are the only stocks expected to keep rising.
• KOSDAQ index is similarly weak; investors are advised to avoid or reduce exposure.
• Korean semiconductor equipment stocks are not responding to capex news, with high valuations and limited upside conviction.
• Long-term power demand from data centers supports nuclear and power infrastructure, but the market is not pricing it in yet.
• Fed hawkishness and liquidity drain are fueling concentration into semiconductors.
• Key exit triggers for semi longs include AI capex slowdown, chip price declines, and power supply bottlenecks.