Ideas
Sell defense rallies; no trend reversal.
The defense sector's rebound is only technical, not a trend reversal. Tank demand is weakening because drones are making tanks less effective, and Middle East export expansion is constrained by geopolitical sensitivities. Earnings are not bad, but the sector may remain uninteresting, so rebounds should be used to reduce exposure.
Tank demand worries hit Hyundai Rotem.
Hyundai Rotem is the weakest defense name because concerns are widespread that tank demand will decline as drones reduce the tank's battlefield value.
Hanwha Aerospace expansion looks saturated.
Some investors argue Hanwha Aerospace is fine because of U.S. and Croatia deliveries, but it already accounts for about 60% of the global market, so further expansion is questionable.
LIG Nex1 export upside constrained.
LIG Nex1 was viewed positively, but additional Middle East export orders beyond the UAE are difficult because of Iran's sensitivities and the troop-dispatch issue, leaving limited new catalyst.
Shipbuilders are turning up; buy over defense.
Shipbuilders, led by HD Hyundai Heavy Industries, are in a good flow after an excessive short-term decline. Foreign and institutional selling eased valuation pressure, and order volume this year is much larger than last year; Samsung Heavy Industries also recently won a large order, supporting a bottoming attempt. Shipbuilding is preferred over defense.
Ship engine makers show strong momentum.
Ship engine and marine engine stocks are strong. HD Hyundai Heavy's engine plant expansion and power-generation engines support the cycle, while Hanwha Engine and Hyundai Marine Engine are showing especially strong charts.
USD/KRW rebound toward 1,400.
After an excessively sharp won rally, USD/KRW is rebounding as U.S. investment dollar demand increases and the dollar strengthens after Fed hikes, with DXY above 100. The rebound could extend to the 1,400 level.
Oversold cosmetics stocks due for rebound.
Cosmetics stocks were oversold as won strength hit the sector, but the decline looks excessive. Third-quarter earnings may beat, and domestic demand from foreign tourists buying at Olive Young remains strong. PharmaResearch, D'Alba Global, and Korea Kolmar are attempting to rebound.
Cosmax rebounds as China overhang clears.
Cosmax is turning better as the China-related dual-listing issue is resolved, removing an overhang and improving the stock's flow.
APR can rebound if doubts clear.
APR fell sharply on counterfeit and Seoul-related concerns. If those doubts are resolved, the stock can rebound at any time.
Samyang Foods overdone, rebound likely.
Samyang Foods was hit by FX despite improving earnings and is trying to bottom. The selloff looks overdone, so a rebound is likely.
Weak won helps Samsung and SK hynix.
For large exporters like Samsung Electronics and SK hynix, a won rebound to the 1,400 level before earnings would be more positive than the expected earnings decline, because FX recovery would support results.
Airlines benefit from FX and strong demand.
Won strength reduces the fuel-cost burden, and even if USD/KRW rebounds it remains far below the old 1,550 level. Tourist demand from Japan and China is strong, load factors are high, and Korean Air also benefits from semiconductor air-cargo exports. The positives outweigh the negatives.
Financials attractive for year-end dividends.
Financials are supported by year-end dividends. Non-life insurers, KB Financial, Hana Financial, and Shinhan Financial look good. Investors seeking stable year-end dividends may find them attractive, partly due to dividend separation taxation, though small investors may not have a strong reason to chase them.
Securities stocks contrarian buy on turn.
Securities stocks are currently weak, but at these levels they may be worth a contrarian buy as the market mood begins to turn.
Hyundai Motor waits for Nvidia catalyst.
Hyundai Motor has lost robot and Physical AI momentum, and August demand is weak. However, an Nvidia collaboration could materialize within the year through an MOU or joint venture, providing a potential catalyst, so the setup is worth monitoring.
This 815 Money Talk (815머니톡) video, published September 17, 2026,
features Lee Kwon-hee
discussing Korean defense stocks, 064350.KS, 012450.KS, 079550.KS, Korean shipbuilding sector, 329180.KS, 010140.KS, 082740.KS, 071970.KS, USD/KRW, US Dollar Index (DXY), 214450.KQ, 483650.KS, 161890.KS, KORU, 192820.KS, 278470.KS, 003230.KS, 005930.KS, 000660.KS, 003490.KS, Korean airline sector, Korean financial stocks, 105560.KS, 086790.KS, 055550.KS, Korean securities stocks, 005380.KS.
16 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Kwon-hee
· Tickers:
Korean defense stocks,
064350.KS,
012450.KS,
079550.KS,
Korean shipbuilding sector,
329180.KS,
010140.KS,
082740.KS,
071970.KS,
USD/KRW,
US Dollar Index (DXY),
214450.KQ,
483650.KS,
161890.KS,
KORU,
192820.KS,
278470.KS,
003230.KS,
005930.KS,
000660.KS,
003490.KS,
Korean airline sector,
Korean financial stocks,
105560.KS,
086790.KS,
055550.KS,
Korean securities stocks,
005380.KS
