The Butterfly Effect of Pension Fund Rebalancing... A Twisted Supply and Demand Market That Only Enriched Foreigners

Summary

CEO Lee Kwon-hee and hosts analyze the steep sell-off in Korean memory semiconductors and the KOSPI, arguing the correction is overdone and mirrors past NVIDIA shakeouts that preceded new highs. Lee views Samsung Electronics, SK hynix, and even Micron as near a bottom and advocates buying. Host Myeong Min-jun separately highlights Hyundai Motor as deeply undervalued. The discussion covers pension fund rebalance distortions, foreign accumulation, and the importance of upcoming big tech earnings for capex confirmation.

• KOSPI and memory semiconductor stocks have suffered one of the steepest corrections in recent history, with Samsung and SK hynix down 35-40% from peaks.
• Lee Kwon-hee compares the current sell-off to past NVIDIA corrections of 20-40% that were ultimately buying opportunities before massive rallies.
• He believes Samsung and SK hynix are near a bottom and advises against panic selling, stating the fundamentals (AI server DRAM demand) remain strong.
• Micron Technology is seen as a potential catalyst; a sharp rebound there could break the negative global feedback loop in memory chips.
• Host Myeong Min-jun points to Hyundai Motor as an extremely cheap stock after a 50% drawdown, calling it a bargain.
• Foreign investors are quietly accumulating KOSPI futures, and Lee expects a technical rebound with the index unlikely to break 6,000.
• The pension fund rebalancing controversy created a supply-demand imbalance that mainly helped foreign traders, but this distortion is expected to normalize.
• Upcoming big tech earnings will be critical to confirm that hyperscale capex on AI infrastructure is not being reduced.