A Semiconductor-Driven Market That Sucks Up All Supply and Demand—What to Do About Hyundai Motor and Kia’s Stock Plunge? / 'This Stock' to Watch When the Market Gets Boxed

Summary

Director Lee Young-hoon of iM Securities reviews sectors beyond semiconductors that are being starved of liquidity. He sees Kia as a rare global outperformer with earnings and dividend merit, expects Korean securities stocks to benefit from cheap PBR and government policy, calls Hanwha Aerospace the top defense pick on weapon shortages, and views cosmetics ODM as a niche play when the market gets boxed in the summer.

• Toyota’s EV development halt is seen as a speed adjustment because electric-car diffusion is slowing, not a strategic mistake, though the autonomous driving race remains critical.
• Global auto makers are entering restructuring; Hyundai Motor Group stands out for financial strength, but Kia is specifically highlighted for growth, share gains, and rising dividends.
• Korean securities stocks are deemed undervalued, supported by surging retail trading fees and the government’s value-up program, offering low-risk exposure.
• Hanwha Aerospace is presented as the flagship defense name with catalysts from K9 howitzers, NATO demand, and expectations of US mid-level weapon outsourcing.
• Shipbuilding and power equipment are fundamentally stable but are completely ignored because semiconductor names are absorbing all trading volumes.
• Cosmetics ODM companies are picked as a personal favorite for a trading niche in a range-bound summer market, benefiting from the trend of brands outsourcing production.
• Other neglected areas such as medical devices (skin aesthetics) and entertainment are mentioned as potential niche candidates when the index turns boxed.