Fear Black Monday—Why Did Samsung Electronics and SK Hynix Plummet? Emerging Noise, the Real Reason the Market Shook | Kim Jang-yeol, Center Head

Summary

Kim Jang-yeol explains the panic-driven crash in SK Hynix and Samsung Electronics, attributing it not to a fundamental collapse but to a toxic mix of ADR premium overhang, structural supply-demand imbalance, and aggressive foreign selling. He outlines how investors can navigate the turmoil: avoid local memory shares, prefer US-listed alternatives, rotate into defensive sectors, consider buying the deeply undervalued KOSPI in stages, and watch semiconductor equipment plays that benefit from continued capex.

• SK Hynix plummeted 14% despite high ADR premium due to one-way conversion mechanics and potential hedging shorts on local shares.
• Foreign investors are bypassing Korean onshore memory stocks, buying SK Hynix ADR or Micron directly, worsening domestic supply-demand.
• The sell-off is not driven by a fundamental collapse; HBM and LTA-related earnings adjustments merely added noise.
• KOSPI valuations have fallen to historic lows (P/E below 6x), cheaper than during the global financial crisis.
• Cash-rich investors are advised to accumulate KOSPI in stages, while defensive cosmetics and food stocks are holding up relatively well.
• Semiconductor equipment makers are seen as beneficiaries of ongoing memory capex, even if they also sell off in the panic.
• The speaker frames the backdrop as a US Big Tech–memory hegemony battle, with US players wanting to curb memory prices.