July 28 Closing Market Conditions: KOSPI Plunges 10%... Samsung and SK Hynix Collapse, Everyone Threw It Away | Hong Seonae, Lee Kwonhee, Kim Jangyeol

Summary

The KOSPI crashed over 10%, triggering circuit breakers, amid fears over Chinese DUV equipment news and NVIDIA circular financing. Panelists Kim Jang-yeol and Lee Kwon-hee argue the AI cycle is not broken, Korean memory stocks are excessively oversold, and upcoming SK hynix earnings could be a catalyst. They also flag ASML as oversold and point to Micron's technical levels as a key barometer for the AI memory cycle.

• KOSPI closed down 10.84% at 6,023, KOSDAQ down 7.7% at 705, with only 36 stocks rising in KOSPI.
• Sell-off triggered by CXMT's DUV equipment entry and NVIDIA circular financing concerns, which panelists view as overblown.
• Kim Jang-yeol argues AI cycle intact; Samsung Electronics and SK hynix are at excessively cheap valuations near 4x forward P/E, presenting a buying opportunity.
• ASML's drop on Chinese competition fears is exaggerated; the competitor's capacity is minimal and the impacted segment is a small fraction of revenue.
• SK hynix Q2 earnings and LTA guidance on July 29 are seen as a potential reversal catalyst if management delivers an optimistic outlook.
• Micron's $750 support level is a critical marker; a breakdown would signal the AI memory cycle is broken, but it is currently holding.
• Lee Kwon-hee expects a short-term technical rebound in KOSPI based on late-session foreign futures buying and oversold conditions.
• Broader indiscriminate selling reflects extreme sentiment; panel warns against getting trapped in the detail and losing sight of the bigger picture.