Black Tuesday, The Real Reason for the Historic Crash... Why Foreigners Dumped 6.2 Trillion Won in Stocks and Swept Up 3.6 Trillion Won in Futures at Market Close | Director Park Hyun-sang

Summary

Director Park Hyun-sang analyses the historic 10% KOSPI crash, attributing the sell-off to US rate hike fears and forced liquidation from leveraged ETFs. He views the plunge as excessive and expects semiconductor stocks to lead a rebound, but urges investors to wait for a second correction before buying. He also highlights beaten-down shipbuilding, defence and power equipment sectors with solid earnings as accumulating opportunities.

• KOSPI fell nearly 10%, the worst single-day drop outside wartime, with foreigners selling 6.2 trillion won and institutions 5.7 trillion won, while retail absorbed 11.7 trillion won.
• Key triggers: BofA's warning of possible three US rate hikes and forced unwinding of leveraged ETF positions.
• Semiconductor names Samsung Electronics and SK hynix remain fundamentally strong and are expected to lead any rebound, aided by upcoming earnings catalysts.
• Investors should avoid buying the first dip and wait for a second correction and confirmed bounce before entering.
• Shipbuilding, defence and power equipment sectors have sold off sharply but have strong earnings, and could benefit from liquidity rotation.
• Foreigners reversed to net long 2.1 trillion won in futures near the close, but the speaker remains sceptical of using foreign futures positions as a signal.
• The speaker emphasizes maintaining a resilient mindset, avoiding panic, and using a gradual, confirmation-based approach.