Is the semiconductor truly at its bottom? Signals to definitely check this week | Park Byung-chang, MP Partners CEO [Market Inside]

Summary

Park Byung-chang, CEO of MP Partners, analyzes the sharp sell-off in Korean markets, particularly semiconductors. He characterizes the drop as driven by forced deleveraging of leveraged ETFs rather than a fundamental breakdown, and sees a potential low forming as panic subsides. He argues the current environment is an opportunity to rotate into core AI/semiconductor names like Samsung Electronics and SK hynix, while also highlighting Hyundai Motor's Boston Dynamics acquisition as a positive robotics catalyst. The discussion covers China's memory IPO threat (viewed as overblown), TSMC's cautious demand outlook, and the importance of monitoring whether key index lows hold this week.

• Korean semiconductor stocks have fallen 34-43% from highs, largely due to leveraged ETF unwinding, not fundamental deterioration.
• Forced liquidations and de-leveraging are driving the remaining selling, with the low potentially near.
• The speaker advises rotating from beaten-down non-core holdings into core AI/semiconductor names like Samsung Electronics and SK hynix.
• This week is crucial to see if KOSPI and key tech lows hold; a successful hold could signal a strong rebound.
• Hyundai Motor's full acquisition of Boston Dynamics is seen as a long-term positive for the group's robotics capabilities.
• China's Changxin Memory IPO creates headlines but is viewed as an overblown worry rather than a structural threat to Korean memory firms.
• Defense stocks moved up on Iran tensions but are not recommended as a sustainable trade.
• Goldman Sachs and UBS maintain bullish KOSPI targets, citing historically cheap valuations, though near-term volatility persists.