Ideas
KOSPI favored on policy and liquidity.
The speaker remains positive on Korean equities and prefers KOSPI over KOSDAQ. Korea is the strongest major market YTD while Nasdaq and M7 are negative; KOSPI still trades below emerging-market average valuations, and policy momentum, liquidity, corporate-governance reform, and ETF inflows support a move toward 6,000-7,000. He says there is no need to cut overall equity exposure.
Semiconductor leaders remain core buy-on-dip.
He remains positive on Korean semiconductors as the main earnings sector. Samsung Electronics and SK hynix may generate around KRW 300tn combined operating profit, their market-cap weight is high, and they are unlikely to fall much; he would buy them on pullbacks. However, their upside may be more limited than laggards.
Hyundai Steel has larger upside than index.
He repeatedly cites Hyundai Steel as a representative laggard. If KOSPI rises about 10% to 6,000, Hyundai Steel could rise 15-20% because it has higher expected return, low valuation, and a small enough market cap to move. It is used as a contrast to Samsung and SK hynix having less remaining upside.
Laggard low-PBR stocks offer higher upside.
He argues the old low-PBR-has-a-reason logic no longer works because government policy and abundant liquidity are driving structural re-rating of undervalued companies. Money is moving into previously ignored and laggard sectors and stocks, which now offer higher expected returns than index ETFs or already-expensive leaders, especially if the market goes flat.
Large-cap KOSPI stocks remain favored.
He argues the market remains a fastball market where top market-cap KOSPI stocks are favored because ETF assets have grown to KRW 350tn and liquidity and policy flows concentrate in large caps. Recent gains were led by large caps even as KOSDAQ had more decliners, showing large caps remain advantaged.
LG Electronics undervalued with liquidity-driven upside.
He notes LG Electronics has a market cap around KRW 16-17tn but generates over KRW 3tn in operating profit, a clear undervaluation. In the current liquidity-rich environment, money can flow into laggard LG Group names and drive sharp price gains despite previous skepticism.
Korean banks re-rate on policy, buybacks.
Korean banks remain deeply undervalued: KB around 1.03x PBR, Shinhan 0.74x, Woori 0.66x, Hana 0.665x, and the sector around 0.7x versus Japan 1.6x and Taiwan 2x. The third commercial law amendment, mandatory treasury-share cancellation, expanded dividends and buybacks, and liquidity inflows could re-rate them to around 0.9x, implying 20-30% upside. He thinks KB could rise 10% if Samsung and SK hynix rise 5%.
Korean shipbuilding gets US demand.
Shipbuilding is among the laggard sectors receiving incremental funds, and the US is asking Korea to cooperate in shipbuilding, which supports the order outlook.
AmorePacific cheap, liquidity flows in.
AmorePacific had been completely neglected as cosmetics attention shifted to the US, but it is now rising because it is undervalued and liquidity is being supplied into left-behind names. This fits his broader low-PBR and laggard rotation.
Holding companies gain from treasury-share cancellation.
Holding companies such as CJ, SK, and LS are receiving money because they hold large treasury-share positions and are direct beneficiaries of the third commercial law amendment and mandatory treasury-share cancellation. The policy momentum supports value enhancement and stock buybacks or cancellations.
Insurers lag but DB Insurance rising.
Insurance is the laggard within financials and profitability is not as strong as banks or securities, but DB Insurance has been rising over the past two weeks. It is a lower-priority catch-up idea worth monitoring.
Wonik IPS drawdown risk after surge.
Front-end semiconductor equipment stocks such as Wonik IPS have already risen a lot; if a market pullback comes, their drawdowns can be abrupt. Investors who cannot endure volatility and adjust position sizes should be cautious.
Korean nuclear merits from low LCOE.
Nuclear and power-equipment stocks saw volatility. Korea has the lowest nuclear LCOE, and the US is asking Korea for cooperation in shipbuilding and nuclear, reportedly prioritizing nuclear. These companies have merit, especially as low-PBR and laggard beneficiaries.
Chinese tourism shift supports Korean leisure.
Chinese inbound tourists to Korea are increasing while Chinese travel to Japan declines; this supports Korean hotels, leisure, and transport sectors, which were also among laggard sectors receiving funds. The speaker ran out of time to detail but flagged the setup.
E-Mart deep value has upside.
E-Mart trades around 0.31x PBR. The stock has already rallied, so he does not say it must go up, but such a deep valuation leaves upside if the consumer and retail re-rating continues.
This 3PRO TV (삼프로TV) video, published February 11, 2026,
features Lee Jae-kyu
discussing EWY, 005930.KS, 000660.KS, 004020.KS, Korean low-PBR laggard stocks, KOSPI large-cap stocks, 066570.KS, 316140.KS, 086790.KS, 105560.KS, 055550.KS, Korean shipbuilding sector, 090430.KS, 034730.KS, 006260.KS, 001040.KS, 005830.KS, 240810.KQ, Korean nuclear power and power equipment, 267260.KS, Korean hotels, leisure, and transport sectors, 139480.KS.
15 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Jae-kyu
· Tickers:
EWY,
005930.KS,
000660.KS,
004020.KS,
Korean low-PBR laggard stocks,
KOSPI large-cap stocks,
066570.KS,
316140.KS,
086790.KS,
105560.KS,
055550.KS,
Korean shipbuilding sector,
090430.KS,
034730.KS,
006260.KS,
001040.KS,
005830.KS,
240810.KQ,
Korean nuclear power and power equipment,
267260.KS,
Korean hotels, leisure, and transport sectors,
139480.KS
