Historic Oversold Crash... Foreigners "Buy Cheap with Open Mouths" — When Will Fear-Driven Forced Liquidations End? | Hwang Yuhyun Team Leader

Summary

Hwang Yuhyun, PB Team Leader at Shinhan Investment Securities, discusses the historic oversold crash in the Korean stock market, highlighting forced liquidations, extreme fear, and foreign buying. She compares the current selloff to the 2018 midterm election decline but notes that this time fundamentals for Samsung Electronics and SK hynix remain solid due to long-term contracts, making a case for holding or buying the stocks. The ETF regulation starting tomorrow may help reduce volatility, and the market may be near a bottom, although timing remains uncertain.

• Korean equities are experiencing a historic oversold crash with panic-driven forced liquidations and extreme volatility.
• Foreign investors are aggressively buying KOSPI and KOSDAQ shares as domestic forced selling intensifies.
• Samsung Electronics and SK hynix have fallen sharply but earnings are supported by stable long-term contracts and chip demand, making current prices attractive.
• The speaker compares the current environment to October 2018, when midterm election uncertainty caused a sharp correction, followed by recovery.
• New ETF regulations are set to begin tomorrow, which the speaker hopes will reduce market volatility and slow forced outflows.
• While a near-term bottom may be forming, confirming a bottom and rebuilding investor confidence will take time and requires monitoring.