Why you shouldn't just hold on even if there's a rebound | Lee Jaegyu, SK Securities PB Assistant Manager

Summary

Lee Jaegyu, a PB assistant manager at SK Securities, argues that the Korean market is not in a structural breakdown but in an abnormal, oversold state that creates rebound opportunities. He highlights semiconductors as a core buy-on-dips trade, singles out SK hynix for an ADR premium catch-up, points to a developing KOSDAQ rotation, and flags massively beaten-down large caps like SK Square and Samsung SDS as candidates for sharp recoveries. Investors are urged to stay invested but adjust positions according to their trading style.

• Korean semiconductor bellwethers (Samsung Electronics, SK hynix) are in a rebound phase and remain a buy for underweight investors, though overweight investors should trim into strength.
• SK hynix ADR is trading at a large premium to the local share, and the speaker expects the gap to narrow by month-end primarily via a rise in the Korean-listed shares.
• The KOSDAQ index is exhibiting relative strength after severe selling, suggesting a rotation is underway and warrants building some allocation.
• Individual large-cap names such as SK Square and Samsung SDS have suffered extreme drops of 45–50% in a short time, and the speaker sees high probability of sharp bounces.
• The macro backdrop (CPI, oil, geopolitical risk) is not catastrophic; with prices already heavily compressed, bad macro news matters less than during extended rallies.
• Leveraged ETFs and excessive margin usage are discouraged; the speaker emphasizes risk management and maintaining a cash buffer.
• Investors should assess their own rhythm: active traders may favor fast-moving semiconductors, while long-term holders may capture higher expected returns in non-semiconductor laggards.
• The overall message is to stay involved in the market, as the second half is expected to behave differently from the first half, with rotation and recovery themes emerging.