SK Hynix over Samsung Electronics? Foreigners' Pick for Semiconductor Opportunity | Myeong Min-jun, Choi Hyo-eun, Lee Je-chung [Stock Beginner Rescue Team]

Summary

Lee Je-chung, Managing Director of CSOP Asset Management, explains why Hong Kong capital is flooding into Korean semiconductor leveraged ETFs, with a strong preference for SK hynix over Samsung Electronics due to momentum, upcoming ADR, and the AI-driven memory supercycle. He also highlights potential follow-on flows into Korean electronic equipment makers as market accessibility improves, supported by government reforms and extended AI capex.

• CSOP manages 75 trillion won and launched the world’s first 2x leveraged single-stock ETFs on Samsung Electronics and SK hynix.
• Hong Kong retail and high-net-worth investors poured roughly 20 trillion won into these two ETFs, with SK hynix attracting 16 trillion won.
• The preference for SK hynix is driven by higher volatility, momentum trading, ADR listing catalyst, and shareholder return announcements.
• The AI-driven semiconductor cycle is expected to last around 5 years because of US-China tech hegemony competition, much longer than typical memory cycles.
• Korean government efforts on integrated accounts, FX settlement, and corporate governance improvements are enhancing the market’s appeal to foreign capital.
• Beyond the top two, large-cap electronic equipment makers like Samsung Electro-Mechanics, HD Hyundai Electric, and Hyosung Heavy Industries are seen as the next beneficiaries once accessibility improves.
• Lee Je-chung holds both Samsung Electronics and SK hynix but favors SK hynix for faster year-end momentum.