The Real Reason Samsung Electronics and SK Hynix Stock Prices Plunged, and the True Intentions Behind Foreigners' KOSPI Trades

Summary

Lee Gwon-hee, CEO of Wizwave, analyzes the sharp drop in Samsung Electronics and SK Hynix, attributing it to aggressive foreign short futures positioning and disappointment over vague shareholder return timelines. Despite index weakness, he highlights positive momentum in non-ferrous metals fueled by copper, a recovering South Korean biotech sector driven by Alteogen’s royalty surge, and defensive rotation into high-dividend financials. He also notes strength in defense, Samyang Foods, and medical aesthetics stock PharmaResearch, while cautioning that the market remains volatile and earnings-sensitive in August.

• Foreign investors are adding short futures and selling Samsung Electronics and SK Hynix, with delayed buyback announcements magnifying the decline.
• Despite KOSPI weakness, more than half of listed stocks are rising, signaling a rotation into stock-picking.
• Copper price surge and thorium interest lift non-ferrous metal stocks like Korea Zinc, Poongsan, and JS Link.
• US biotech index breakout supports a Korean biotech recovery, with Alteogen benefiting from faster CUREX royalties and upcoming milestones.
• Defensive buying pushes up high-dividend financial holding companies (Hana, Shinhan, Meritz) and DB Insurance.
• Samyang Foods benefits from export growth and Palantir collaboration, while PharmaResearch approaches a record-earnings breakout.
• Defense stocks and PCB substrate names like Simek are rebounding technically but remain in early recovery.