Volatility worse than the financial crisis… Should we exit the Korean stock market now? / SK Hynix ADR and leveraged ETF listing… What impact will it have on stock prices? | Director Lee Juyeon

Summary

Director Lee Juyeon analyzes recent extreme volatility in Korean markets, noting that retail selling has pushed valuations to historic lows below 2008 crisis levels. She argues that earnings upgrades and easing volatility create a buying opportunity. She also highlights the near-term catalyst for Samsung and SK Hynix from SK Hynix's ADR listing and upcoming leveraged ETFs, and expects a liquidity rotation into KOSDAQ.

• Korean equity valuations (KOSPI forward PER 6.14x) are lower than during the 2008 crisis; earnings consensus continues to rise.
• Volatility index (VKOSPI) reached near 100 and is now declining, signaling easing market stress.
• Samsung Electronics and SK Hynix may see short-term positive momentum as SK Hynix ADR lists and US leveraged ETFs launch.
• If ADR leveraged ETFs gain traction, domestic liquidity could rotate into undervalued KOSDAQ stocks.
• Semiconductors' recovery hinges on volume growth (Q) rather than price (P), dependent on big tech capex plans.
• Institutional investors and pension funds are buying amid retail selling, providing downside support.
• Strongest earnings momentum sectors: energy, semiconductors, IT hardware, chemicals, securities.