Chairman Choi Tae-won's Reason for Lowering 'Memory Margin Rate' | Vincent Hana Securities Analyst [Weekend Interview]

Summary

Vincent, an analyst at Hana Securities, discusses the recent sharp correction in the Korean stock market and explains why he remains bullish, targeting a recovery to previous highs within 5–6 months. He highlights foreign investor inflows and institutional buying as catalysts. The second half of the interview focuses on memory semiconductors, particularly SK Hynix, where he argues that a paradigm shift in the memory cycle and a favorable LTA structure with upside flexibility will lead to a re-rating.

• Vincent believes the KOSPI is still in a strong bull market and the 30% drawdown is a correction, not a bear market.
• Based on historical patterns, he expects the index to reclaim its previous high in about 5–6 months, with foreign and institutional investors leading the rebound.
• Foreign selling has slowed and buying resumed recently, suggesting a floor is forming and rule-based overseas funds are returning.
• Memory semiconductors are still profitable, but the market is debating whether the cycle persists or is breaking — Vincent argues the latter.
• SK Hynix’s LTA structure keeps the price floor but leaves the upside open, allowing the company to benefit fully from rising memory prices.
• Samsung’s LTA locks both floor and ceiling, limiting its upside compared to SK Hynix.
• Chairman Choi Tae-won’s recent comments about lowering memory prices are seen as a strategic move toward sustainable partnerships, akin to a paradigm shift from cyclical to infrastructure-like earnings.
• Vincent concludes that SK Hynix is poised for a re-rating as the memory cycle becomes smoother and longer-lasting.