KOSPI Awaits a Relief Pitcher, Why the National Pension Service Can't Step In? | Chesley Investment Advisory Executive Director Park Se-ik

Summary

Park Se-ik reviews the sharp KOSPI/KOSDAQ correction, arguing that valuations and lack of a U.S. recession make current levels a strong buying opportunity. He highlights AI semiconductor stocks as attractively priced, Samsung Biologics' entry into the fast-growing peptide CDMO market, and a transit-demand driven earnings boost for Korean airlines. He also notes foreign investors are snapping up Korean assets while domestic funds remain sidelined.

• KOSPI correction is overdone; PBR near 1.4x and no recession create a high-probability rebound setup.
• AI infrastructure cycle is still intact; memory chips remain in short supply, making Samsung Electronics and SK hynix cheap after 35-40% drops.
• Samsung Biologics' acquisition of PolyPeptide Group opens the high-growth peptide CDMO market, which is projected to grow fivefold by 2035.
• Transit passenger surge due to geopolitics is lifting revenue for Korean airlines like Korean Air and Asiana Airlines.
• Foreign private equity is actively buying undervalued Korean companies, highlighting attractive valuations ignored by local institutions.
• National Pension Service cannot step in as a buyer because its domestic stock allocation is still above the target range.
• Overall sentiment is extremely bearish, but history shows such periods are when contrarian buying pays off.