Hyundai Motor becomes a robotics stock, Physical AI changes the game, and another catalyst for Korea stock market upgrade

Summary

Kang Gwan-woo, CEO of The Premier, discusses the re-rating of Hyundai Motor Group from an auto to a robotics play, recommending Hyundai Motor and Kia as half-half positions. He sees a new upcycle in shipbuilding and cautions that defense stocks require stock selection. The overall market is overheated with foreign selling and rising rates, but the AI semiconductor cycle remains intact, favoring a buy-the-dip approach with risk management.

• Hyundai Motor Group's valuation is expanding due to robotics narrative and Boston Dynamics IPO.
• Kia is recommended as a value play within the Hyundai Motor Group.
• Shipbuilding sector enters a new upcycle on high-margin orders and backlog growth.
• Defense stocks need stock selection; some are overvalued.
• MSCI and bond index inclusions are structurally positive but near-term neutral.
• Rising US and Korean interest rates pose a headwind, but AI earnings cycle supports the market.
• Foreign investors are net sellers, and market volatility is high, requiring disciplined risk management.