Historic Selloff, Sidecar Triggered 3 Days in a Week: Reasons for Extreme Volatility / Leader Stocks Crash, Which Stocks Will Rise Now? | Director Lee Young-hoon

Summary

Lee Young-hoon, Director at iM Securities Seoul Financial Center, and Hwang Yu-hyun, PB Team Lead at Shinhan Investment & Securities, discuss a week of extreme Korean market volatility with three sidecar triggers. Lee attributes the selloff mainly to tangled supply-demand from foreign derivative selling, retail buying, and ELS/DLS hedging rather than an internal problem. He expects the index to remain range-bound until the next futures/options expiry and favors selective rotations into asset-value, dividend, and North America-linked semiconductor equipment names. On biotech, he has reduced exposure and wants to wait for a new leader or clearer cash-flow/license-out catalyst.

• Korean market saw extreme volatility and multiple sidecar triggers during the week.
• Lee sees the volatility as a supply-demand dislocation, not an internal market problem.
• He expects the index to stay trapped until the next futures/options expiry.
• Range-bound conditions may favor neglected asset-value, value-up, and dividend-related stocks.
• Large marts, Samsung Electronics, and SK hynix are discussed as specific tactical setups.
• In semiconductor equipment/materials, Lee focuses only on North America-linked companies.
• Biotech strategy shifts to earnings- and cash-flow-backed names while avoiding speculative leaders.
• Alteogen was sold after noise emerged; ST Pharm and Sam Chun Dang are cited as different model examples.