Will the August Summer Rally Come? US Stocks at New Highs, When for Korea? / Where Will Samsung Electronics and SK Hynix's Next Lead Stocks Be?

Will the August Summer Rally Come? US Stocks at New Highs, When for Korea? / Where Will Samsung Electronics and SK Hynix's Next Lead Stocks Be? | LS Securities Shin Jungho Center Head
Watch on YouTube ↗  |  August 06, 2026 at 06:00  |  23:07  |  815 Money Talk (815머니톡)
Speakers
Shin Jungho — Head of Research Center, LS Securities

Summary

LS Securities Center Head Shin Jung-ho discusses the KOSDAQ rally driven by money outflow from leveraged ETFs and macro tailwinds, the semiconductor equipment boom as memory capex ramps, a cautious August rebound, the resolution of AI fund forced selling, the positive impact of US midterm elections and rate capping on Korean equities, and the benefits of a stronger won for Naver, Kakao, and small caps. He recommends diversifying into semiconductor equipment, AI software, and defense/shipbuilding sectors.

  • KOSDAQ rally fueled by exhausted selling and capital rotation from leveraged ETFs.
  • Macro environment favors small/mid-caps as export growth and liquidity growth peak.
  • Memory shortage solution shifts investment to semiconductor equipment/materials.
  • August KOSPI expected to rebound but remain in a box range of 2600–2750.
  • Hedge fund unwind absorbed by Citadel, reducing chip stock volatility.
  • US midterm elections likely positive for Korean stocks as rate capping sustains AI capex.
  • Strong won benefits Naver, Kakao and small/mid-cap domestic software players.
  • Portfolio diversification into semiconductor equipment, Samsung SDS, and defense/shipbuilding recommended.
Ideas
Shin Jungho Head of Research Center, LS Securities 0:24
KOSDAQ rally driven by rotation and macro.
Money that was chasing leveraged ETFs is rotating into KOSDAQ. Extreme selling and margin calls in KOSDAQ have exhausted, and August earnings for small/mid-caps are being viewed as acceptable after the heavy drawdown. Macro tailwinds also align: export growth and liquidity growth are peaking and starting to slow, which historically favors KOSDAQ relative to KOSPI. Additionally, the Bank of Korea is likely to pause rate hikes after July CPI showed easing living inflation, removing a headwind for small caps.
KOSDAQ Index HIGH
Shin Jungho Head of Research Center, LS Securities 3:02
Equipment sector benefits from memory capacity build.
The memory shortage cycle is shifting from acute shortage pricing to a supply expansion phase. To solve the shortage, Samsung Electronics, SK Hynix and Micron must aggressively raise capex and increase quantity (Q). This turns the spotlight from memory chip makers to semiconductor equipment and materials companies (소부장) as the primary beneficiaries of the capex boom. The sector had become overvalued and sold off heavily in July, but is now rebounding independently as investors recognize the Q-driven demand story.
Korean semiconductor equipment and materials sector HIGH
Shin Jungho Head of Research Center, LS Securities 7:00
August KOSPI rebound within box range.
Despite political noise, the US government is actively capping long-term yields near 4.7% via reduced Treasury issuance, US-Japan coordination to avoid forced bond sales, and negotiation over trade tensions. This rate containment supports risk assets. After the US midterm elections, policy uncertainty will fade and the bipartisan consensus around AI infrastructure investment and China containment will sustain the capex cycle. This should lead to Korean PER expansion and further upside in Samsung Electronics and SK Hynix as lower interest rates boost AI-driven quantity growth.
EWY MED
Shin Jungho Head of Research Center, LS Securities 8:55
Memory chip volatility fading after supply absorption.
The forced selling pressure from the leveraged AI hedge fund (Leopold) has been absorbed after Citadel acquired its positions, similar to how JP Morgan resolved regional bank failures. This removes an overhang of distressed supply. Just as NVIDIA's volatility subsided after the GPU shortage mania, the extreme volatility in memory chip stocks (Samsung Electronics, SK Hynix, Micron) is likely to decline, allowing them to grind higher more steadily.
005930.KS 000660.KS MU MED
Shin Jungho Head of Research Center, LS Securities 21:25
Strong won lifts Naver and Kakao.
A stronger Korean won, now stabilizing around 1400–1450, is most beneficial for domestic-oriented software and platform companies rather than customs-sensitive exporters. With currency stability, real domestic demand plays such as Naver and Kakao stand to gain because a stronger won improves their domestic purchasing power and consumers' willingness to spend on services. Meanwhile, small/mid-cap stocks also benefit from reduced currency swing risk.
KQ KS MED
Shin Jungho Head of Research Center, LS Securities 22:26
Diversify into equipment, software, and defense.
For H2 2026, investors should diversify away from a pure Samsung Electronics/SK Hynix focus. He recommends adding semiconductor equipment/materials, AI adoption software companies such as Samsung SDS, and China-containment related defense/shipbuilding stocks as part of the AI value chain. This diversified portfolio can generate alpha in the second half.
Korean defense and shipbuilding sector HIGH
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This 815 Money Talk (815머니톡) video, published August 06, 2026, features Shin Jungho discussing KOSDAQ Index, Korean semiconductor equipment and materials sector, EWY, 005930.KS, 000660.KS, MU, KQ, KS, Korean defense and shipbuilding sector. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Shin Jungho  · Tickers: KOSDAQ Index, Korean semiconductor equipment and materials sector, EWY, 005930.KS, 000660.KS, MU, KQ, KS, Korean defense and shipbuilding sector