SK Hynix, Samsung Electronics... The semiconductor rally is just beginning / National Pension Service increases holdings, money flows to large-cap stocks | CEO Lee Kwon-hee

Summary

Lee Kwon-hee discusses the Korean market's structural strength, led by semiconductors and other sectors. He highlights the National Pension Service's increased equity allocation as a positive for large caps. Specific stock ideas include SK Hynix, Samsung Electronics, POSCO Future M, and Hanmi Pharmaceutical based on earnings momentum, battery materials, and pipeline value.

• Foreign new money flows into Korean large caps, offsetting selling by existing foreign institutions.
• NPS raises domestic equity target to 20.8%, supporting large-cap stocks.
• Semiconductor earnings have bottomed in Q1 2025 and are expected to improve through Q2 and Q3.
• SK Hynix and Samsung Electronics remain core holdings with upside from AI demand.
• POSCO Future M is positioned to benefit from LFP battery expansion and artificial graphite demand.
• Hanmi Pharmaceutical is undervalued relative to its pipeline, making it a buying opportunity.
• Other sectors like shipbuilding, defense, and cosmetics are also performing well.
• Biotech stocks such as DND Pharmatech and Alteogen see institutional buying but lack clear catalysts.