Korean Stock Market Where Only Foreigners Make Money... Samsung Electronics' Plunge Sends a Warning: 'At This Rate, It Will Become an ATM' | CEO Kang Gwan-woo

Summary

CEO Kang Gwan-woo explains that recent Korean market volatility is driven by single-stock leveraged ETFs causing negative compounding and by heavy foreign selling that may continue for months. He advises a long-term mindset, highlighting KOSPI's high ROE and recommending accumulation on dips. For Samsung Electronics and SK hynix, he argues the memory cycle is intact, Q3 price negotiations will be a near-term catalyst, and the stocks will become attractive value plays with ~5% shareholder yields by 2028.

• Volatility is fueled by single-stock leveraged ETFs that produce severe negative compounding and distort market dynamics.
• Foreign ownership of KOSPI is elevated; an additional 120-240 trillion won of selling is likely, pressuring the market through Q3 and possibly Q4.
• Despite near-term headwinds, the Korean market's globally competitive ROE makes long-term accumulation via dollar-cost averaging attractive.
• The memory chip cycle is not broken; Samsung and SK hynix should see earnings growth through 2027 and then transition into high-dividend value stocks with shareholder yields around 5%.
• The Q3 memory contract price increase is a decisive catalyst; a 30% rise would be a huge positive, while a 10% rise would likely trigger a sell-off.
• Samsung's foundry is showing early signs of a turnaround, adding optionality, though non-memory segments remain too small to drive major re-rating.
• Michael Burry's short on Korean memory stocks is seen as misplaced given cheap PBR multiples and extraordinary ROE levels.