Rebalancing Fear? What's the Answer After All... | Park Byeong-chang, MP Partners CEO

Summary

MP Partners CEO Park Byeong-chang discusses the Korean stock market, dominated by rebalancing fears and a stark divergence between large-cap semiconductors and KOSDAQ/small caps. He argues the only answer is to stay with Samsung Electronics and SK hynix, which remain undervalued and resilient. KOSDAQ is seen as overvalued and under heavy institutional selling, but a capitulation bottom may form later. The US market is absorbing rebalancing flows well, and dips should be bought. A brief mention of HD Hyundai's AI robot development is noted as a positive watch.

• The Korean market shows extreme divergence: KOSPI is near highs driven by large-cap semiconductors, while KOSDAQ has plunged to pre-2021 levels.
• Park Byeong-chang emphasizes that large-cap semis (Samsung Electronics, SK hynix) are the only investable theme, supported by undervaluation and favorable catalysts.
• Near-term events include SK hynix ADR SEC approval, Micron's earnings, and MSCI annual review; all seen as supportive for large-cap semiconductors.
• KOSDAQ weakness is fueled by institutional selling, margin call risks, and delayed revitalization policies; investors are advised to avoid it for now.
• Aggressive individual investor selling could wash out KOSDAQ and create a capitulation bottom, which would be a future opportunity to monitor.
• Rebalancing fears from pension funds and ETFs are real but are being gradually absorbed; similar fears in 2023 were followed by new highs.
• S&P 500 is resilient; any dip should be bought.
• HD Hyundai's development of shipbuilding AI robots using NVIDIA's simulation platform is an interesting development worth monitoring.