Semiconductor Plunge: It's Time to Accumulate, Not Fear | Lee Jae-gyu, SK Securities PB Assistant Manager

Summary

Lee Jae-gyu, SK Securities PB Assistant Manager, interprets the sharp Korean market sell-off as an opportunity rather than a panic. He argues that the semiconductor plunge allows accumulation in Samsung Electronics and SK Hynix due to solid AI-driven demand, supply bottlenecks, and compelling forward valuations. He also highlights a rotation into heavily oversold non-semiconductor sectors, especially KOSPI 200 mid/small caps and KOSDAQ biotech, advising fractional buying, caution with leverage, and portfolio rebalancing.

• Major Korean semiconductor stocks suffered a steep drop, creating a buyable dip with strong AI HBM demand and supply constraints supporting upside.
• Samsung Electronics and SK Hynix are recommended for accumulation on forward valuations of 5x and 6x, with pre-earnings sell-off reducing risk.
• Nvidia's upcoming Ultra Rubin GPU is expected to triple or quadruple HBM demand, reinforcing the long-term memory semiconductor thesis.
• KOSPI 200 mid/small-cap ETF sharply outperformed the large-cap KODEX 200, signaling fund rotation into beaten-down small caps.
• KOSDAQ biotech/pharma stocks held up well despite broad market losses, indicating seller exhaustion and potential for a strong rebound.
• Heavily sold entertainment, cosmetics, and bio sectors are positioned for short-term mean-reversion and rotational inflows.
• Investors are advised to keep cash at 15-25%, avoid margin trading, and use fractional buying methods amid still-elevated volatility.