Stock Market Crushing Mental Health, Semiconductor Stocks Plunging, Where Is the Bottom? / Samsung Electronics, SK Hynix Semiconductor Hedge Funds Are Buying | CEO Lee Kwon-hee

Summary

CEO Lee Kwon-hee of Wise Wave discusses the recent sharp decline in Korean equities and semiconductor stocks, attributing it to leverage ETF liquidity issues and foreign selling. He sees a near-term bottom in KOSPI, highlights that hedge funds have turned to aggressively buying US semiconductor stocks, and identifies specific Korean names with improving fundamentals or foreign buying, including SK Innovation, KEPCO, Able C&C, and various semiconductor equipment and substrate companies.

• The KOSPI sell-off is largely driven by leverage-related liquidity stress, but a bottom may be near as foreign futures buying remains strong.
• Hedge funds have ended a multi-month selling streak in US semis and are now making their largest weekly purchases in 3.5 years, signaling a bullish turn.
• SK Innovation is flagged as a dual recovery play in oil refining and secondary batteries.
• Foreign investors continue to accumulate Korean semiconductor equipment and substrate stocks like Jusung Engineering, Techwing, Innotek, and Daeduck Electronics.
• Able C&C is seeing a strong earnings recovery and global expansion into major retail channels, restarting cosmetics sector momentum.
• KEPCO is positioned as a key beneficiary of surging AI data center electricity demand, with the stock deeply discounted from its peak.
• Concerns about big-tech pushing for lower memory prices in LTA talks are mentioned but the speaker sees the overall semiconductor thesis intact.