Why Did It Plummet and Why Did It Rise Again? The Market's Real Reason | Lee Seon-yeop, AFW Partners CEO

Why Did It Plummet and Why Did It Rise Again? The Market's Real Reason | Lee Seon-yeop, AFW Partners CEO [Weekend Interview]
Watch on YouTube ↗  |  July 24, 2026 at 23:00  |  34:33  |  3PRO TV (삼프로TV)
Speakers
Lee Seon-yeop — CEO, AFW Partners

Summary

CEO Lee Seon-yeop argues the recent Korean semiconductor crash was a technical liquidation event, not fundamental deterioration. He highlights that AI hyperscalers continue massive capex spending, prioritizing survival over short-term ROI. The excessive drop has created a buying opportunity, and the market is beginning to broaden beyond the two dominant chip stocks, paving the way for a healthier, gradual rally in the KOSPI.

  • The sharp sell-off in Samsung and SK hynix was caused by momentum fund profit-taking and deleveraging.
  • AI hyper-scaler investment remains robust, focusing on survival rather than immediate returns.
  • The sell-off has largely ended; foreign investors started buying from mid-July.
  • Korean semiconductor demand still far exceeds supply, with many customers unable to obtain chips.
  • The KOSPI is shifting from extreme two-stock concentration towards a broader, healthier market advance.
  • Undervalued stocks with solid earnings and turnaround themes are gaining interest.
  • This environment favors a gradual, sustainable uptrend for the Korean market rather than the volatile moves of the first half.
Ideas
Lee Seon-yeop CEO, AFW Partners 0:59
AI-driven chip demand remains intact; buy dip.
The dramatic sell-off in Korean semiconductor stocks, including Samsung Electronics and SK hynix, was a technical liquidation event driven by momentum fund profit-taking and levered deleveraging, not fundamental deterioration. Hyper-scaler AI capex remains massive and will continue because survival in the AI race outweighs near-term ROI concerns. The magnitude of the drop priced in a loss scenario that is unlikely to materialize, given that chip supply remains tight and many customers cannot even secure allocation. With momentum selling largely exhausted and foreign investors already accumulating since mid-July, the sell-off is a buying opportunity and these stocks should recover.
005930.KS 000660.KS HIGH
Lee Seon-yeop CEO, AFW Partners 23:30
KOSPI broadening rally brings health and upside.
The KOSPI is transitioning from an unhealthy extreme concentration in two mega-cap semiconductor stocks to a broader, more stable rally. As other sectors and undervalued companies start to participate in the uptrend, the index will advance at a more gradual pace with lower volatility. This broadening creates a healthier market environment that benefits overall Korean equities and reduces the risk of a narrow-led collapse.
^KS11 MED
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This 3PRO TV (삼프로TV) video, published July 24, 2026, features Lee Seon-yeop discussing 005930.KS, 000660.KS, ^KS11. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lee Seon-yeop  · Tickers: 005930.KS, 000660.KS, ^KS11