The Fed Turned Hawkish... Why KOSPI Rises Despite Rate Hike Concerns / Samsung Electronics, SK Hynix Valuation Standards Are Changing | CEO Lee Kwon-hee

Summary

Lee Kwon-hee discusses the hawkish June FOMC outcome and its limited damage to KOSPI, arguing the rate-increase fears are overblown. He focuses on a major valuation regime shift in Korean memory stocks from PBR to PER, making Samsung Electronics and SK Hynix clear beneficiaries. Samsung Electro-Mechanics is also highlighted as a breakout candidate following Murata’s new highs. Biotech is mentioned as already priced for bad news.

• The Fed’s hawkish hold and raised inflation/dot-plot projections hit US equities but the sell-off was seen as an overreaction; Korean index futures bounced overnight.
• Chair Powell is viewed as an opportunist who dislikes rigid forward guidance and is moving the Fed toward more discretionary, reactive decision-making.
• The core investment call is that Korean memory makers are being re-rated from PBR to PER, mirroring Micron, because AI-driven structural growth undermines the old cyclical valuation framework.
• Samsung Electronics (005930.KS) and SK Hynix (000660.KS) at 8x and 6.8x forward PER respectively should converge toward Micron’s 11x, offering significant upside.
• Samsung Electro-Mechanics (009150.KS) is seen as breaking out of a box range above 200,000 won, supported by Murata’s record highs in Japan.
• Biotech was called resilient to rate-hike fears because the sector has already been heavily sold off.
• Short-term trading tools like four-eight (selling in the 40s) and rhythm management were discussed for active traders in a trending market.