[Emergency Market Update] Today, Already a 7 Trillion Won Sell-Off Causing a Sharp Decline... Have Foreigners Abandoned the Korean Stock Market? "The Real Reason for the Massive Sell-Off" | Park Geun-hyung, Department Head

Summary

In this emergency market update, Park Geun-hyung explains the sharp KOSPI sell-off as foreign profit-taking ahead of large IPOs (SpaceX, Anthropic) and domestic rate hike concerns, but argues the market is not breaking. He highlights deep value in memory semiconductors, structural growth in MLCC/substrate stocks, and positive spillover to department stores, while warning against overvalued SpaceX-related names.

• Foreign selling is driven by profit-taking and IPO supply fears, not a structural exit from Korea.
• Memory semiconductor stocks are undervalued vs. earnings contribution and likely to re-rate.
• Samsung Electro-Mechanics has multiple catalysts: MLCC shortage, silicon capacitor, glass substrate, and earnings upgrades.
• The global substrate and MLCC sector is in a price upcycle confirmed by Goldman Sachs forecast revisions.
• SK Telecom benefits from Anthropic IPO and Jensen Huang collaboration.
• Department stores are rising on semiconductor bonus-induced consumption in tech hubs.
• SpaceX-related Korean stocks are overvalued with governance red flags.
• Market volatility is high but not at crisis levels; 10-year US Treasury yield at 5-5.3% is the key tipping point.