Foreigners Sold, But KOSPI Held Up—Why Samsung Electronics and SK Hynix Open the 9,000 Era | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Cha Young-joo, Director of Wise Economic Research Institute, reviews a KOSPI market that has stabilized after July's leveraged-ETF-driven correction. He argues foreign selling in Samsung Electronics and SK Hynix is temporary MSCI positioning, not fundamental, and that earnings and free cash flow are strengthening. He sees KOSPI as undervalued with a 9,000-12,000 target and recommends accumulating Samsung Electronics, SK Hynix, and shareholder-return names. Nvidia earnings and Korea's broadening shareholder return policies are key near-term catalysts.

• KOSPI has moved from July's sharp decline to a narrow 6,400-7,000 range with reduced volatility.
• Foreign selling in Samsung Electronics and SK Hynix is attributed to MSCI EM positioning around CXMT/YMTC inclusion.
• Nvidia earnings is seen as a key catalyst, with shareholder return, AI server pricing, and investment-cycle commentary in focus.
• KOSPI is described as deeply undervalued based on ROE near 25.4% and PBR around 1.4x, supporting 9,000-12,000 targets.
• Samsung Electronics and SK Hynix are viewed as attractive accumulation candidates due to earnings, free cash flow, and shareholder returns.
• Korean shareholder return activity is broadening through buybacks, cancellations, and dividends, including Hyundai Motor's announcement.
• Macro-driven bear market risk over the next 6-12 months is viewed as low.