Samsung Electronics hasn't risen enough yet? The truth behind foreign selling | Baek In-jae, Deputy Center Head [Double Crew]

Watch on YouTube ↗  |  May 20, 2026 at 02:24  |  17:28  |  3PRO TV (삼프로TV)
Speakers
Lee Kyung-soo — Senior Research Fellow

Summary

Analyst Lee Kyung-soo explains that foreign selling in Korean stocks is misleading—foreign ownership is actually rising. He sees MSCI rebalancing and potential developed-market inclusion as catalysts for further inflows. The semiconductor rally is in a late cycle but still has strong momentum, and rising rates favor hardware stocks over software.

  • Foreign ownership ratio in Korea rose from 36% to 38% despite net selling.
  • MSCI emerging market weight for Korea expected to jump from ~16% to ~24-25% in May.
  • Korea has a 60-70% chance of MSCI developed market watchlist inclusion.
  • Semiconductor cycle is in late stage but historically has highest momentum here.
  • Profit warnings on CapEx sustainability pose a medium-term risk for semiconductors.
  • Rising interest rates drive global capital toward hardware stocks (Micron, Western Digital).
  • Samsung Electronics and SK hynix remain the key beneficiaries of the hardware rotation.
  • Government reforms (24-hour FX trading, disclosures) support Korea's upgrade case.
Trade Ideas
Lee Kyung-soo Senior Research Fellow 2:48
Foreign ownership up, Korea bullish
In the May MSCI review, Korea's weight in emerging market indices is expected to jump from ~16% to ~24-25%, triggering passive inflows. Additionally, Korea has a 60-70% chance of being added to the MSCI developed market watchlist, which would lead to eventual index inclusion and a structural increase in foreign allocation. The government is actively addressing key requirements like 24-hour FX trading and improved disclosures.
EWY MED
Lee Kyung-soo Senior Research Fellow 7:12
Rising rates favor hardware stocks
In a rising-rate environment, global capital is rotating into hardware/technology stocks that offer cheap valuations, high quality, and strong cash flows, while software stocks underperform. This structural preference benefits semiconductor and storage companies such as Micron and Western Digital, which have been outperforming the S&P 500.
WDC MU MED
Lee Kyung-soo Senior Research Fellow 13:56
Semiconductor late cycle, momentum high
The semiconductor cycle is in a late stage, but historically the late cycle has the highest price momentum, often exceeding 50% of the entire rally. The cycle is not over until a 20% peak-to-trough decline occurs. Earnings continue to improve through 2025, and the correlation between Samsung Electronics and SK hynix remains high. Investors should not sell too early.
005930.KS 000660.KS HIGH
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This 3PRO TV (삼프로TV) video, published May 20, 2026, features Lee Kyung-soo discussing EWY, WDC, MU, 005930.KS, 000660.KS. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lee Kyung-soo  · Tickers: EWY, WDC, MU, 005930.KS, 000660.KS