August 3rd Closing Market Conditions: KOSPI Suffers Aftermath of Surge, Plunges After One Day of Rebound; Foreigners Hit the Brakes Again

Summary

On August 3, KOSPI plunged over 5% after a 18% surge the prior session, driven by heavy selling in Samsung Electronics and SK hynix. Guest Kim Jang-yeol highlighted a massive valuation gap between Korean memory stocks and Micron, seeing 15-20% upside normalization potential. He also advocated Samsung Electro-Mechanics as a clean semiconductor play and Hyosung Heavy Industries after a 50% crash. CEO Lee Kwon-hee focused on robotics stocks benefiting from US-China restrictions, a 5% allocation to telecom equipment on strong export data, and Doosan's hidden value from the SK Siltron deal. Foreign selling and leverage ETF distortions continued to drive extreme volatility.

• KOSPI fell 5.36% to 6,241, erasing most of Friday's 18% surge, with Samsung Electronics and SK hynix down ~8%.
• Kim Jang-yeol noted Korean memory stocks now trade 25% below Micron since May, implying a 15-20% catch-up trade.
• He also recommended Samsung Electro-Mechanics as a cheap, ETF-distortion-free play on semiconductor supply chain.
• Hyosung Heavy Industries was pitched as a deep-value pick after a 50% decline, with improving margins and single-digit PER.
• Lee Kwon-hee argued for Korean robotics stocks, saying US-China tech restrictions create structural demand tailwinds.
• Telecom equipment stocks were highlighted for a 5% portfolio allocation, supported by 30% YoY export growth and bottoming charts.
• Doosan's win-win acquisition of SK Siltron stake was seen as unlocking 2-3 trillion won in hidden value.
• Foreigners again sold heavily in spot and futures, with late-day futures selling signaling a cautious near-term outlook.