Samjeon-Nix Plunge? Don't Be Afraid, It's Time to Approach with 'Contrarian Thinking' | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Cha Young-joo, Director of Wise Economic Research Institute, discusses the volatile Korean market and argues that the recent plunge in Samsung Electronics and SK hynix is an emotional sell-off, not a fundamental breakdown. He stresses that market leadership has shifted from retail to foreign/institutional investors and presents a contrarian buy case for the memory duo based on sustained earnings growth and low valuations. He also flags a conditional watch on Hyundai Motor as a robot story and touches on power, defence, and semiconductor equipment sectors.

• Market influence has shifted from retail investors to foreign and institutional players after a sharp drop in customer deposits.
• Short-term credit risk has eased with margin debt falling from 38trn to 33trn won, but a break below KOSPI 6,000 could reignite risks.
• Samsung Electronics and SK hynix are described as very attractive at current levels; earnings continue to rise and forward P/E is under 10x.
• Major capex commitments from Samsung, SK hynix, Micron and TSMC suggest the semiconductor upcycle is intact and supply glut is 2-3 years away.
• Hyundai Motor is a conditional watch: if the stock holds 400,000–500,000 won after Q2 earnings, it could start getting a robot-business valuation premium.
• Semiconductor materials/equipment sub-sectors are treated cautiously as Samsung/SK hynix act like a liquidity black hole.
• Power infrastructure names are noted as gradually attractive but no specific vehicles are recommended.