KOSPI Surges as Samsung and SK Hynix Sentiment Recovers; Wall Street Warns of Deepening Korean AI Semiconductor Dependence

Summary

A volatile KOSPI session ends with a strong 5.7% rebound, driven by institutional buying and easing semiconductor fears. Speakers argue that the recent sell-off was an overreaction to noise (Meta capex rumors, US chip price pressures) and that fundamentals remain robust. They recommend buying the KOSPI, Korean memory leaders Samsung and SK Hynix, oversold defense and securities stocks, and highlight deep value in KEPCO and power equipment. Biotech bottom-fishing opportunities are noted in Samsung Biologics and Celltrion. Leveraged ETFs amplify volatility, but a resolution is expected to stabilize the market.

• KOSPI rebounds 5.7% on strong institutional buying after a sharp sell-off triggered by unfounded rumors.
• Valuation is extremely compressed with forward P/E hitting 6.5x, a level last seen in the Global Financial Crisis, despite rising EPS.
• DRAM memory stocks Samsung Electronics and SK Hynix are favored on supply tightness, HBM growth, and DRAM's advantage over NAND.
• Defense sector highlighted for oversold conditions, strong order pipelines, upcoming NATO summit, and European demand for Korean defense.
• Securities and bank sectors present a rebound play as rate-hike expectations recede on weaker US employment data.
• KEPCO called deeply undervalued with 2025E operating profit multiples below 2x and potential catalyst from US nuclear project collaboration.
• Power equipment exporters recommended despite recent underperformance due to strong export data and expected Q2 earnings beats.
• Celltrion and Samsung Biologics attract buying interest as biotech shows signs of bottoming, supported by solid earnings surprises.