Anxious Investors Dumped 3 Trillion Won in Samsung Electronics and SK Hynix... But Now Is Not the Time to Panic-Sell Stocks | Aurora Investment Advisory CEO Lee Jihwan

Summary

Aurora Investment Advisory CEO Lee Jihwan argues that the recent Korean market selloff is a short-term supply and program-trading event rather than a fundamental breakdown. He sees long-term foreign accumulation continuing in KOSPI leaders such as Samsung Electronics and SK Hynix and advises investors not to panic-sell before Chuseok. Fed dovish comments support equities and rate-hike history favors longer-term equity gains, but rapid won appreciation warrants caution in KOSDAQ small/mid parts and materials exporters.

• Dovish Fed commentary and lower US yields are stabilizing markets and supporting Korean foreign inflows.
• Thursday's KOSPI drop is viewed as technical program selling, not a yen-carry or Middle East shock.
• Samsung Electronics and SK hynix are seeing hidden long-term foreign accumulation despite visible selling.
• Retail investors may be overreacting to holiday anxiety by selling before Chuseok.
• A Fed rate hike, if it occurs, has historically been followed by equity gains after an initial drawdown.
• Rapid won appreciation is a bigger risk for KOSDAQ small/mid parts and materials exporters.
• Sector strategy should favor semiconductor/tech names, with banks/insurance as a rate-hike hedge.