Semiconductors are not over yet...but now is the time to be careful | Jang Woo-jin, CEO of Geumsigong [Global Interview]

Summary

Jang Woo-jin, CEO of Geumsigong, warns that the Korean market's uptrend is fragile and semiconductor margins face compression, urging investors to trim positions in Samsung Electronics and SK hynix. He notes a potential short-term boost for SK hynix from its ADR listing and advises watching semiconductor materials/equipment/OSAT stocks. Overall, he recommends caution, raising cash into rallies, and avoiding long-term buying in KOSPI and KOSDAQ.

• KOSPI uptrend may be breaking after a key moving average breach; a head-and-shoulders top risk is forming, warranting caution.
• Samsung Electronics and SK hynix face margin compression as capex rises; now is the time to trim positions, not add.
• SK hynix's ADR listing could bring ETF passive flows and a 1-2 week short-term boost to its local share price.
• Korean semiconductor materials, equipment, design houses, and OSAT companies may benefit from Samsung's foundry ramp-up and are worth watching.
• KOSDAQ and non-semiconductor KOSPI sectors are already in a bear market and should be avoided.
• Liquidity is tight with foreign and institutional outflows, while individual investors' buying power is low and bank deposits are rising.
• The sustainability of AI capex is questioned; hyper-scalers must eventually cut hardware investment to become profitable, threatening semiconductor demand.