Despite concerns about unsuitability for Korean stock market investment, both major indices jump... KOSDAQ sees sunshine in a stock-picking market!

Summary

On August 5, 2025, the Korean stock market saw a sharp recovery with both KOSPI (+3.76%) and KOSDAQ (+2.42%) rising amid huge foreign buying. Speakers debated the sustainability of the rebound, with cautious optimism. Lee Kwon-hee and Jang Woo-jin noted weak volume and fragile sentiment, recommending cash positions. Park Byung-chang set a tactical KOSPI range of 6,100–7,500 and sees the bottom confirmed. Semiconductors (Samsung, SK Hynix) remain core long-term positives due to tight DRAM supply and low valuations. Power equipment, shipbuilding, and certain AI substrate names (Samsung Electro-Mechanics, LG Innotek) were highlighted as leaders. Alteogen was praised for massive contracts and royalties. Daewoo E&C was flagged as a stock to avoid due to poor profit conversion.

• KOSPI surged 3.76% and KOSDAQ 2.42% on foreign buying and ETF rotation.
• Lee Kwon-hee and Jang Woo-jin expressed caution, citing weak volume and uncertain foreign futures positions; both advised 50%+ cash.
• Samsung Electronics and SK Hynix are seen as undervalued with 30%+ upside, supported by DRAM tightness through 2028 and cheap PBR.
• AI substrate demand drove Samsung Electro-Mechanics and LG Innotek higher; Lee sees further upside based on earnings and valuation.
• Power equipment (Hyosung Heavy, LS Electric) and shipbuilding (KSOE, HHI, Hanwha Ocean) were identified as strong profit-growth sectors by Park and Lee.
• Alteogen announced a 520bn+ contract and strong Keytruda SC royalties, boosting its cash-flow outlook.
• Park laid out a KOSPI range trade with a stop below 6,100 and target at 7,100–7,500, expecting the index to eventually climb after consolidation.
• Daewoo E&C was downgraded by an analyst to a 20,000 won target on weak earnings momentum; Cha Young-joo recommended avoiding the stock.