Caught-off-guard foreigners, urgent short covering... SK Hynix's massive after-hours reversal disclosure / individual investors who bet 5.7 trillion won won | Lee Ji-hwan, CEO of Aurora Investment Advisory

Summary

Lee Ji-hwan reviews the August 19 selloff in Korean markets, arguing the intraday semiconductor crash was driven more by option-expiry and forced selling than by long-term Treasury yields. He highlights SK Hynix's after-hours 40 trillion won buyback/cancellation as a short-covering catalyst and expects Samsung Electronics to follow with shareholder return. He remains positive on Korean semiconductor names and supplier plays, sees power equipment and cosmetics as rebound/consumer cyclical opportunities, and advises reducing pharma/bio into strength. For the broader market, he expects US midterm election seasonality and Korean buyback momentum to support a rebound into the second half.

• SK Hynix announced a 40 trillion won buyback/cancellation after the close and rebounded 8%+ in after-hours trading.
• Foreigners sold roughly 2.2 trillion won of SK Hynix during regular trading and likely covered after the announcement.
• The speaker sees semiconductor leadership staying with Samsung Electronics and SK Hynix due to medium-term foreign inflows.
• Semiconductor materials/parts/components and power equipment are highlighted as rebound leaders.
• Pharma/bio strength may fade as semiconductors recover; reduce into rallies.
• KOSDAQ leadership may emerge only after October-November.
• US midterm seasonality supports a more positive US equity view from October onward.
• USD/KRW is expected to stabilize around 1,400.