Ideas
Secondary batteries could turn around next year.
The secondary battery sector has bounced off its bottom and Korean exports in the sector are gradually improving. Battery companies are shifting mix toward ESS, and after a very depressed base this could become next year's key turnaround story, potentially showing higher earnings growth than semiconductors and producing explosive stock performance once the turn becomes clear.
Hawkish BOK rates cap Korean stock upside.
The Bank of Korea has raised rates twice while the US, Europe, and Japan have not or have raised only once, making Korea the most aggressive major economy. The BOK's hawkish signal that rates will stay high into early next year suppresses liquidity flows into Korean stocks and caps upside; the related won strength also cuts export earnings and delayed the market rebound after the July-August decline.
Use pre-midterm weakness for post-election recovery.
Historically, US stock performance is often weak in the two to three months before midterm elections, but after the election stocks have risen almost 80% to 100% of the time over the following three to six months. The current period should be treated as a consolidation window, with weakness as a low-buy opportunity for a post-midterm and early next year recovery.
Democratic sweep favors renewables and biotech.
If Democrats take both the House and Senate, the biggest policy beneficiaries would be eco-friendly/renewable energy and pharma/bio because the regulatory environment would shift meaningfully. If the likely split occurs with Democrats taking the House and Republicans keeping the Senate, the market flow would not change dramatically, but Trump policies would lose some force.
Energy and power grid shortages favor energy.
Energy and power grids are a more severe bottleneck than semiconductors; electricity itself and the grid needed to connect it are massively short. Korea has renewable generation plans but little transmission-grid discussion, so energy and power grid exposure should be a core H2 through next year opportunity, with the biggest potential change if midterm politics favor renewables.
Doosan Enerbility has nuclear and gas turbines.
Doosan Enerbility has both nuclear and gas turbine exposure, and gas turbines are also doing well recently. This diversified exposure helps the stock hold up and makes it a viable nuclear-related way to play power and energy even though nuclear construction is slow.
Renewables have stronger policy than nuclear.
Under the current Lee Jae-myung government, wind and solar generation weight is expanding sharply while nuclear construction takes too long, so policy intensity favors renewables over nuclear. A nuclear-only story cannot sustain stock prices, but among nuclear-related names Doosan Enerbility is an exception because it also has gas turbine exposure.
Renewables have stronger policy than nuclear.
Under the current Lee Jae-myung government, wind and solar generation weight is expanding sharply while nuclear construction takes too long, so policy intensity favors renewables over nuclear. A nuclear-only story cannot sustain stock prices, but among nuclear-related names Doosan Enerbility is an exception because it also has gas turbine exposure.
IT appliances, chemicals, IT hardware turnaround.
Among industries where next year's operating profit may improve more than this year's, only three stand out: IT home appliances/batteries, chemicals, and IT hardware. These are coming from depressed bases, and base-effect turnaround stories tend to produce the most explosive stock performance once the turn becomes visible.
EV demand lacks full recovery power.
EVs are still autos, and with high interest rates auto demand cannot surge strongly. Tesla and BYD are selling well only because they are discounting heavily, meaning demand is not strong enough to raise prices. The EV market will only get partial benefit from energy transition, not a full industry recovery.
Samsung SDI leads ESS-driven battery turnaround.
Samsung SDI is the only secondary battery name that can really benefit from ESS growth without an EV recovery; it has secured cash, is investing in US ESS, and is furthest ahead in transitioning toward ESS. Other battery companies still need time to survive independently, so SDI deserves the most attention within the battery complex.
USD/KRW will rebound from September.
The factors that drove won strength over the past three months are fading: SK Hynix ADR-related dollar inflows, the end of August corporate tax interim payments, and government pressure on exporters to convert dollars. From September, USD/KRW is likely to rebound modestly.
Strong won supports airlines and consumer staples.
If the won stabilizes around 1,380-1,390 per dollar instead of falling sharply, won-strength beneficiaries such as airlines, consumer goods, and consumer staples should perform well. These sectors benefit from a stronger won, but the trade is conditional on the won not rebounding too much.
FX rebound favors shipbuilders, defense, autos.
If USD/KRW rebounds, the most exchange-rate-sensitive Korean sectors are shipbuilding, defense, and autos. These export/currency-sensitive sectors deserve attention as key beneficiaries of a weaker won.
This 815 Money Talk (815머니톡) video, published August 30, 2026,
features Heo Jae-hwan
discussing Korean secondary battery stocks, EWY, SPY, ICLN, XBI, Korean energy and power grid stocks, 034020.KS, Korean renewable energy, Korean nuclear energy, Korean IT home appliance/battery stocks, Korean chemicals, Korean IT hardware, DRIV, 006400.KS, USD/KRW, Korean consumer staples, Korean airlines, Korean autos, Korean Defense, Korean Shipbuilding.
14 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Heo Jae-hwan
· Tickers:
Korean secondary battery stocks,
EWY,
SPY,
ICLN,
XBI,
Korean energy and power grid stocks,
034020.KS,
Korean renewable energy,
Korean nuclear energy,
Korean IT home appliance/battery stocks,
Korean chemicals,
Korean IT hardware,
DRIV,
006400.KS,
USD/KRW,
Korean consumer staples,
Korean airlines,
Korean autos,
Korean Defense,
Korean Shipbuilding
