On the Day the Market Collapsed, Don't Be Swayed by Rebalancing | Lee Kwon-hee, CEO of Wizwave [Global Interview]

Summary

Lee Kwon-hee, CEO of Wizwave, explains the recent sharp sell-off in Korean and global markets as driven by temporary supply factors such as pension rebalancing and leveraged ETF selling, not by deteriorating fundamentals. He remains bullish on the AI-led semiconductor cycle and sees Samsung Electronics as a particularly attractive catch-up opportunity relative to an overbought SK Hynix. He also points to unfairly sold non-semiconductor names like Hyundai Motor and Naver, which could benefit from a future rotation once semiconductor valuations peak.

• Market drop attributed to rebalancing, ETF selling, and short-selling, not fundamentals.
• AI data center infrastructure build-out ensures strong semiconductor demand for the foreseeable future.
• Samsung Electronics is undervalued relative to SK Hynix after lagging and is a clear buy.
• SK Hynix is overbought but its uptrend remains intact; no fresh buy signal.
• Non-semiconductor large caps like Hyundai Motor and Naver were unfairly hit; rotation expected later.
• Leveraged ETFs exacerbated the decline but do not change the long-term upward trend.
• Foreign flows and options activity suggest the sell-off was overdone and a short-term bounce is likely.