Foreigners Fleeing Korean Stock Market? Where Are They Going After Selling Semiconductor Stocks? This Current Correction Is Not The End, But The Overture To A Grand Finale

Summary

Lee Kyung-min from Daishin Securities argues that the recent KOSPI correction is a temporary rebalancing driven by foreign selling, not a trend reversal. He expects the uptrend to resume with a strong July-August, driven by solid fundamentals. He advises buying into dips, with opportunities in undervalued sectors and oil-related assets on a potential Q3 oil dip.

• KOSPI correction is temporary, support at 8000 and 7300-7500; uptrend to resume with hot July-August.
• Foreign selling is mechanical rebalancing due to overweight, not structural bearishness.
• USD/KRW overshooting at 1540 is temporary; expected to fall to 1400-1420 in Q3.
• Undervalued sectors (chemicals, energy, batteries, pharma, securities, etc.) may bounce short-term.
• Oil prices expected to dip in Q3 on US-Iran ceasefire, but supply constraints will push oil higher next year; suggests buying oil-related on dips.
• Overvalued sectors (semiconductors, IT, auto) need a cooldown.
• Rate hikes are manageable this year due to strong growth, but next year could be problematic.