Middle East War Erupts, US Interest Rate 4.7% Emergency, Why the Stock Market Crash? / Hyundai Motor Target Price Downgrade, Are Robot Stock Expectations Bursting?

Summary

CEO Lee Kwon-hee discusses the impact of rising US rates and the single-stock leveraged ETF unwind on Korean equities. He identifies oversold sectors with strong fundamentals (power equipment, shipbuilding, defense) as rebound candidates, argues Samsung Electronics and SK Hynix are undervalued relative to Micron, and highlights long-term value in refining stocks like S-Oil due to global capacity shortages.

• US long-term yield near 4.7% weighs on markets; Fed expected to hold in July with a possible final hike in September.
• Single-stock leveraged ETF liquidation caused collateral damage, dragging down healthy stocks in biotech and power equipment.
• Power equipment, shipbuilding, and defense sectors have strong Q2 earnings but fell over 40% from highs, offering a technical rebound setup.
• Defense stocks also benefit from intensifying geopolitical conflicts.
• Global refinery capacity shortages due to Russian damage and underinvestment support long-term upside for Korean refiners like S-Oil.
• Samsung Electronics and SK Hynix trade at a persistent ~30% discount to Micron; aggressive shareholder return programs could narrow the gap.
• HLB surged on uncertain FDA meeting news for a biliary tract cancer treatment; details remain unclear.