Are you only waiting for Samsung Electronics and SK Hynix to rebound? You're missing other rising opportunities in the meantime

Summary

Lee Jae-gyu, SK Securities PB Deputy Manager, argues that the Korean market is shifting from the semiconductor-dominated first half to a broadening rotation in the second half. He urges investors to reduce semiconductor overweight, use index ETFs for the rebound, and focus on oversold sectors with earnings support such as shipbuilding and biotech, while watching cosmetics and catch-up large caps. He stresses realistic positioning to avoid being left behind as market breadth improves.

• KOSPI and KOSDAQ have technical support and breath is improving despite large-cap weakness
• First-half market was abnormally concentrated in semiconductors; second-half rotation is underway
• Investors should reduce semiconductor overweight in Samsung Electronics and SK Hynix, keeping only 20-30% allocation
• Broad index ETFs (KOSPI, KOSDAQ) are the safest way to capture the rebound when markets are deeply sold
• Shipbuilding stocks like HD Hyundai Heavy Industries offer deep value after strong earnings and sharp sell-offs
• Biotech ETF is preferred over individual stocks to play upcoming medical conference catalysts while managing risk
• Cosmetics sector is in a strong trend but has already rallied; waiting for a pullback is prudent
• Large caps that missed the H1 rally, such as Naver and LG Electronics, could catch up if rotation continues