Is the Samsung Electronics concentration finally ending?... The Korean stock market will completely change in July / What to do about EcoPro BM's sharp drop? | CEO Lee Kwon-hee

Summary

CEO Lee Kwon-hee discusses the EcoPro BM rights offering, arguing it is fundamentally positive despite short-term dilution. He moves on to battery sector oversold conditions, biotech and semiconductor equipment leadership, power equipment beneficiaries of a domestic mega project, dangers in the Wemade China deal, and earnings-driven trades in defense and construction equipment. The overall message is that KOSDAQ can stabilize as money rotates away from the extreme Samsung Electronics concentration.

• EcoPro BM’s rights offering is for a profitable nickel smelter; temporary share dilution of 10-15% should be absorbed.
• Samsung SDI and L&F have already completed capital raises and are now safe from further dilution risk.
• POSCO Holdings’ lithium brine assets are being re-evaluated as lithium prices rise and the stock is technically bottoming.
• Biotech names like Celltrion, Samsung Biologics and Alteogen are showing early signs of a sector recovery.
• Semiconductor equipment and materials stocks now dominate KOSDAQ and are cushioning the battery sell-off.
• The mega infrastructure project in the southeast makes LS Group and power equipment stocks a high-conviction long.
• Wemade’s Chinese acquisition carries severe IP-theft risk and requires extreme caution.
• Defense and construction equipment names are supported by strong global demand and approaching earnings season.