This Industry Will Explode When Semiconductors Falter: Which Industry's Stock Price Will Reverse in October?

Summary

AFW Partners CEO Lee Seon-yeop discusses September Korean market weakness and how to position for October. He argues that September's supply, FX, rate, and event risks are mostly known volatility factors rather than a trend change. He highlights secondary batteries, ESS, and solar as the standout theme tied to data-center power bottlenecks and improving earnings. He also says Korean memory target-price cuts are largely FX-driven and pre-priced, and he suggests using September volatility as an October buying opportunity.

• September Korean market faces IPO supply, stronger won, semiconductor earnings cuts, Fed uncertainty, Middle East tensions, and Chuseok caution.
• Lee views these factors as volatility shocks rather than a shift in market direction.
• FOMC, employment, and CPI data will determine whether the Fed hikes; a one-off non-continuous hike is expected to have limited lasting impact.
• October could see improving market direction after September de-risking and event resolution.
• Secondary batteries, ESS, and solar are highlighted on data-center power shortages and improving earnings.
• Korean memory semiconductor target-price cuts are seen as currency-related and already pre-priced.
• Lee advises against excessive short-term trading and suggests using September corrections for longer-term positioning.