KOSPI Swings All Day; Foreigners Sold 156 Trillion Won of Domestic Stocks This Year

Summary

The Korean market experienced extreme intraday swings, with the KOSPI eventually closing slightly higher amid massive foreign and institutional buying. Panelists attributed the recent violent sell-off primarily to single-stock leveraged ETFs and emphasized that fundamentals remain solid. Key investment ideas included rotating from domestic SK hynix into US-listed memory stocks, buying deeply oversold Samsung Electronics, accumulating semiconductor equipment leaders on pullbacks, and positioning in Korean bank stocks as potential new market leaders in a higher-rate environment.

• KOSPI reversed early losses to end up 0.73% as foreigners and institutions bought heavily while individuals sold.
• Single-stock leveraged ETFs were repeatedly blamed for amplifying the downswings and distorting supply-demand dynamics.
• Kim Jang-yeol advocated shifting to US-listed memory stocks (Micron, SK hynix ADR) over domestic SK hynix, citing sharper Korean declines and persistent ADR premiums.
• Kim Jang-yeol argued Samsung Electronics is exceptionally oversold at a 4x P/E and is set to catch up with SK hynix, aided by a possible ADR listing catalyst.
• Lee Kwon-hee called the Alteogen plunge a mistake stemming from a misunderstood patent report and expects a strong rebound once the error is recognized.
• Kim Jang-yeol provided a detailed fundamental case for buying semiconductor equipment stocks PSK, PSK Holdings, and Tes on dips amid a major capex cycle.
• Lee Ji-hwan identified Korean banks (KB, Shinhan) as the next leading sector, benefiting from sustained high rates and market rotation.
• Lee Da-sol maintained that AI capex is intact and that the current correction is a speed adjustment, not a trend reversal.