Variables Remaining After the Crash…Now is the Time to Prepare for Recovery Rather Than Sell | Lee Jaegyu, SK Securities PB Assistant Manager [Focus Today's Stock]

Summary

SK Securities PB assistant manager Lee Jaegyu addresses the severe Korean market crash and consecutive circuit breakers, advising investors against panic selling and margin use. He argues valuations are extremely stretched to the downside and recovery will come, recommending index ETFs and a shift from overbought large-cap tech to oversold sectors like batteries, shipbuilders, and select large-cap laggards.

• Korean market suffered historic two-day circuit breakers, forced margin selling is underway.
• Semiconductor leaders Samsung Electronics and SK hynix now trade at 3.5-3.6x P/E, offering a tactical bounce.
• Secondary battery stocks have turned profitable and face a supply shortage by late 2027.
• Shipbuilders are enjoying margin expansion with operating margins as high as 20%.
• Market rotation favors oversold large-caps and sectors like defense, renewables, healthcare, and internet.
• Investors should hold cash positions and avoid leveraged ETFs; broad KOSPI/KOSDAQ ETFs are recommended.
• FOMC rate expectations have been tempered, but macro uncertainty remains secondary to the oversold condition.