Is the Interest Rate Hike Really Bad News for the Korean Stock Market? Why the Stock Market Is Holding Up Despite Foreigners' 3.6 Trillion Won Spot and Futures Sell-off

Summary

CEO Lee Kwon-hee reviews the Korean market during the September quadruple witching and argues that foreign futures and spot selling is mostly expiration-driven, with individual and institutional futures buying cushioning KOSPI. He sees semiconductor equipment and materials as the strongest structural theme, favors banks, refiners/petrochemicals, and shipping on their respective catalysts, and advises watching K-beauty, content, and Hyundai Glovis for turn or breakout signals.

• Quadruple-witching foreign selling is treated as a flow and derivative event rather than a bearish fundamental signal.
• KOSPI's rising trendline is intact, and a break above the recent box high is the key upside trigger.
• Semiconductor equipment and materials is benefiting from KRX rebalancing flows and a 5-year Yongin and packaging capex cycle.
• Hanmi Semiconductor is highlighted as a top pick in back-end packaging equipment with OSAT customer traction.
• Korean banks are viewed as rate-hike beneficiaries and a long-term dip-buying opportunity.
• Refiners, petrochemicals, and airlines are seen as strong-won and oil-import beneficiaries.
• K-beauty and export consumer names are seen as having already discounted much of the won-strength damage.
• Shipping stocks and Hyundai Glovis are discussed as freight-rate and breakout setups.