Name: Samsung Electronics strike concerns and high interest rate burden...When will the stock market decline stop?_26.05.18. | Lee Hyeok-jin, Yeo Do-eun, Heo Jae-mu [Morning N Investment]
Uploaded: 2026-05-18T02:27:12+00:00
Duration: 3172 s

Speakers

Lee Hyuk-jin — Reporter, The Bell

Summary

Lee Hyeok-jin discusses the current market decline driven by Samsung Electronics strike concerns, high interest rates, and oil price uncertainty. He advises buying semiconductor stocks on valuation bottoms, avoiding overvalued names like LG Group and Hanmi Semiconductor, and watching for an oil price decline around June that could lift software and Kosdaq stocks.

Samsung Electronics strike and high rates weigh on the market, but semiconductor fundamentals remain strong.
Samsung Electronics is near valuation bottom; a turning point is expected this week.
SK hynix earnings momentum intact; bonus payments already priced in.
LG Group and Hanmi Semiconductor are overvalued and should be avoided.
Oil price decline after June could ease financial conditions and boost US software stocks.
Abundant standby cash from corporates and individuals may support a market rebound.
Tourism and robotics themes are structurally positive but lack clear tradable expressions.

Trade Ideas

Lee Hyuk-jin Reporter, The Bell 1:21

Buy Samsung Electronics at valuation bottom

Samsung Electronics is trading at a valuation of around 6x earnings, near the bottom of its historical band. Despite near-term risks from strikes and bonus costs, the earnings base is high enough that even under a conservative scenario the stock is not expensive. Public opinion is turning against the union as the stock price falls, which may pressure both sides to reach a resolution. The speaker expects a turning point this week.

Lee Hyuk-jin Reporter, The Bell 6:35

Buy SK hynix earnings momentum

SK hynix has already paid 10% performance bonuses without causing a significant valuation reset, showing the market can absorb such costs. AI-driven memory demand is structurally higher, and SK hynix is well positioned in the HBM market. Earnings momentum remains strong, making the stock attractive at current levels.

Lee Hyuk-jin Reporter, The Bell 10:51

Avoid Hanmi Semiconductor overvalued

Hanmi Semiconductor reported operating profit of around 8 billion won, yet its market capitalization was previously around 45 trillion won, implying an extreme valuation disconnect. The company's explanation for the miss is unlikely to satisfy investors, and the stock is likely to undergo a severe revaluation. The speaker warns that many semiconductor materials/equipment ETFs with large Hanmi weightings will be affected.

Lee Hyuk-jin Reporter, The Bell 16:46

Watch oil price decline after June

Based on the historical pattern of geopolitical crises (Russia-Ukraine war), oil prices tend to peak around 45 days after the start of a conflict and then decline. The current Iran conflict shows a similar trajectory, suggesting crude oil will begin to fall around mid-June. This would relieve inflationary pressure and improve financial conditions broadly.

Lee Hyuk-jin Reporter, The Bell 25:11

Buy Microsoft on oil decline

If oil prices decline after June, following the pattern observed after the Russia-Ukraine war, financial conditions will ease significantly. Short-term rates below 4% would allow long-term rates to fall, re-rating sectors that have been compressed by high rates. The speaker expects US software stocks, which have fallen the most, to rebound strongly. Microsoft is cited as a prime example.

Lee Hyuk-jin Reporter, The Bell 26:40

Avoid LG Group overvaluation

LG Electronics and LG Corp have rallied sharply on a turnaround story that is not yet supported by sustainable earnings improvement. The holding company's dividend capacity depends on subsidiary cash flows and payout ratios, which have not increased. The surge appears to be driven by passive ETF flows and thematic rotation, not fundamental improvement. The speaker views this as excessive and a market top signal.

Samsung Electronics strike concerns and high interest rate burden...When will the stock market decline stop?_26.05.18. | Lee Hyeok-jin, Yeo Do-eun, Heo Jae-mu [Morning N Investment]

Summary

Trade Ideas

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