Individual investors bought 11 trillion won, today was an excellent choice. | Hong Seon-ae, Lee Kyung-min, Daishin Securities FICC Research Department Head [Yeouido Insight]

Summary

Lee Kyung-min, Head of FICC Research at Daishin Securities, analyzes the 10% KOSPI plunge. He argues that fundamentals and earnings remain strong, making the sell-off a buying opportunity within a high-volatility uptrend. He highlights semiconductor leadership, SK hynix’s specific catalysts, and identifies undervalued laggard sectors like secondary batteries, power equipment, domestic consumption, and KOSDAQ that should rebound once the semiconductor overconcentration eases.

• KOSPI dropped ~10% intraday, triggering its fourth circuit breaker of the year.
• Lee sees the sell-off as sentiment-driven, not due to earnings deterioration; earnings upgrades continue.
• Daishin raised its KOSPI year-end target to 11500; near-term support at 8000-7700.
• Semiconductors remain the leading sector with strong AI-driven long-term contracts and valuation expansion.
• SK hynix has company-specific catalysts including an ADR listing that could bring 40 trillion won.
• Secondary batteries, power equipment, cosmetics, pharma/bio, and internet are undervalued vs. earnings and poised to rebound when semiconductor concentration eases.
• KOSDAQ has corrected sharply and is expected to rebound as bond yields stabilize after June CPI.
• Major sell-offs driven by panic are historically buying opportunities, not a reason to sell.