Even if a V-shaped rebound is difficult, the bottom is near… Time to accumulate Samjeonnix from now on

Summary

Cha Young-joo, Director of Wise Economic Research Institute, analyzes the sharp sell-off in Korean memory chip stocks. He argues the decline is driven by forced selling from margin calls and leveraged ETF unwinding rather than fundamental damage. He recommends aggressively accumulating Samsung Electronics and SK Hynix at current levels, citing extremely low valuations, intact AI demand, and temporary noise around SK Hynix’s shareholder return communication.

• The Samsung-SK Hynix slump is a supply/demand disruption from margin calls and single-stock leveraged ETFs.
• Samsung Electronics broke below 200,000 won, now trading under 5x forward PER, presenting a buying opportunity.
• SK Hynix Q2 operating profit was 6.05 trillion won, below consensus, but net profit reached 9.3 trillion won.
• SK Hynix could not disclose concrete shareholder return plans due to a 25-day SEC quiet period after its ADR issue.
• Long-term supply agreements and continued capex support memory makers’ earnings visibility despite price concerns.
• The speaker sees the forced-selling climax passing soon, with stabilizing conditions and eventual recovery in the stocks.
• Investors are advised to accumulate Samsung and SK Hynix via dollar-cost averaging with a patient horizon.