Opportunities in KOSDAQ after semiconductor supply chain diversification in the second half of the year | Lee Jae-gyu, SK Securities PB Deputy Manager [Today's Featured Stock]

Summary

Lee Jae-gyu, SK Securities PB Deputy Manager, analyzes the steep KOSPI decline (-8.9%) driven by ETF-related supply/demand distortions in Samsung Electronics and SK hynix. He argues the second half will see a market shift toward a stock-picking environment, with rotation into KOSDAQ and undervalued sectors like shipbuilding, banking, pharma/biotech, cosmetics, and secondary batteries. He views the semiconductor selloff as a buying opportunity for underweight investors and recommends avoiding overvalued power equipment and defense stocks.

• KOSPI dropped 8.9% as ETF unwinding distorted Samsung Electronics and SK hynix flows.
• Lee expects H2 to differ from H1 with a stock-picking market and rotation out of semiconductor heavyweights.
• KOSDAQ has already cleaned credit balances and compressed valuations, offering limited downside and upside potential.
• Samsung Electronics and SK hynix are seen as oversold; a buying opportunity for investors with low exposure.
• Shipbuilding stocks are cheap vs. power equipment and semiconductors, attracting value-focused rotation.
• KB Financial and the banking sector benefit from strong earnings, securities growth, and high dividend capacity.
• Pharma/biotech, cosmetics, and secondary batteries are gaining from foreign buying and the rotation into lagging sectors.
• Power equipment and defense names are considered overvalued and should be avoided.