Tuesday of Terror, Foreigners' Massive Selling, Stock Prices Plunge... But the Bull Market Isn't Over

Summary

CEO Kang Gwan-woo discusses the extreme market concentration in Samsung Electronics and SK Hynix, which account for the majority of KOSPI earnings. He advises staying long these two stocks while avoiding overvalued auto/LG stocks and the weak KOSDAQ. He also warns that foreign selling is profit-taking absorbed by domestic investors, and the bull market is not over but caution is warranted due to high PBR.

• Samsung Electronics and SK Hynix dominate KOSPI earnings (67% in 2025) and are still relatively cheap.
• Kang recommends holding these two stocks as core positions despite concentration.
• Hyundai Motor, LG Electronics, LG Innotek, and Samsung Electro-Mechanics are overvalued vs analyst targets.
• KOSDAQ lacks earnings momentum and government support will take time.
• Foreign selling is profit-taking, not a bearish signal, as domestic buyers absorb.
• PBR is at 2.0x (historically high), but PER is still below average, creating a tug-of-war.
• End-of-war expectations could provide a further upside catalyst.
• Single-stock levered ETFs are speculative short-term tools, not for long-term holding.