Semiconductor Plunge, What Collapsed Was Not the Industry but Sentiment | Lee Kwon-hee, Wizwave CEO

Summary

Lee Kwon-hee, CEO of Wizwave, argues that the recent sharp correction in Korean semiconductors and the KOSPI is driven by sentiment rather than deteriorating fundamentals. He sees the sell-off as overdone, with valuations compressing to crisis levels despite intact AI demand and stronger LTA protections, creating a buying opportunity. He also highlights that Korean cosmetics and biotech sectors could surge once interest rate fears subside.

• Korean semiconductor stocks plunged 30-40% without a major crisis, driven by sentiment and profit-taking.
• Industry fundamentals remain strong with robust AI capex outlook and long-term supply agreements (LTAs) reducing cancellation risk.
• KOSPI P/E has fallen to 5.8x versus a 10-year average of 10x, pricing in a severe earnings downturn.
• Speaker expects the correction to end, with a likely bounce to around 8,000 on the KOSPI.
• Korean cosmetics and biotech sectors have been held back by interest rate fears and could rally on any rate stabilization.
• Caution that the market still faces near-term uncertainty from big tech earnings and potential further rate hikes.