Ideas
January earnings season favors KOSPI over KOSDAQ.
In January, Lee favors the KOSPI over the KOSDAQ because the market is entering earnings season and large-cap KOSPI names such as semiconductors and Hyundai Motor Group are the main earnings beneficiaries. He expects the KOSDAQ to become active again later, so an overall balanced KOSPI/KOSDAQ posture for the year is appropriate, but January is relatively KOSPI-oriented.
January earnings season favors KOSPI over KOSDAQ.
In January, Lee favors the KOSPI over the KOSDAQ because the market is entering earnings season and large-cap KOSPI names such as semiconductors and Hyundai Motor Group are the main earnings beneficiaries. He expects the KOSDAQ to become active again later, so an overall balanced KOSPI/KOSDAQ posture for the year is appropriate, but January is relatively KOSPI-oriented.
Foreign re-rating can lift Korean large caps.
The main determinant of Korean equity returns this year is how foreign investors re-evaluate major Korean companies. If the market shifts from treating them as cyclical or legacy businesses to structurally competitive global players, valuations can re-rate across memory semiconductors, Hyundai Motor Group, and defense/space names.
Hyundai Motor Group can re-rate via dividends.
Hyundai Motor Group has been handicapped by a legacy automaker discount, but its valuation can re-rate if the market recognizes humanoid robotics, autonomous driving, and stronger shareholder returns. Its PER and PBR are only about half of global automakers such as Toyota and GM, while its payout ratio is 35% versus over 50% at Toyota/GM/Honda and 100% at GM in 2024, leaving room to increase dividends or buybacks, especially with dividend income separate taxation incentives.
Defense/space tech can re-rate Korean defense.
Korean defense companies are increasingly tied to space, and if foreign investors recognize their space-related technology, the market may award them a higher valuation. This is a conditional re-rating setup rather than an immediate call.
Focus robot/humanoid on substantial large-cap names.
Robot and humanoid stocks already rallied strongly, but this year the opportunity should shift toward companies with tangible commercialization, revenue visibility, and backing from large corporate groups such as Hyundai Motor Group and Samsung Group. He prefers larger, more substantial robot/humanoid names over speculative small caps.
Semiconductor equipment/materials will differentiate.
Korean semiconductor equipment/materials stocks will not all move together. As the AI/HBM investment cycle becomes more concrete, performance within the sector should differentiate, so investors need to be selective rather than buying the whole group.
KOSDAQ bio is a key 2026 axis.
Lee sees KOSDAQ bio as one of the two main KOSDAQ axes, along with robots/humanoids. Bio may be weak during the January earnings season, but it should improve from around February and could start building momentum in January through J.P. Morgan Healthcare Conference licensing-deal expectations.
Shipbuilding/defense/nuclear still up, but slower.
The shipbuilding, defense, and nuclear power theme is not finished, but the pace of upside will be more gradual than in the past two years. Investors should remain positive but moderate expectations for the slope.
LG Energy Solution loses contract-driven inflows.
LG Energy Solution had two large contracts cancelled or returned, so the supply/demand that would have flowed into the stock is unlikely to return under current conditions, and there is no clear alternative destination in the sector. This makes it a specifically weak part of the secondary battery complex.
Avoid new secondary battery purchases now.
Secondary battery stocks appear to have bottomed technically and on earnings, but earnings are not strong enough to support a sustained uptrend. ESS demand is only about 10% of the EV market, leaving both the narrative and numbers insufficient. Holders should focus on whether companies can survive and remain competitive, but new purchases should be avoided until the industry clearly turns.
Memory re-rating supports Samsung and SK hynix.
Memory semiconductors can re-rate if the market shifts from treating them as pure cyclical businesses to structurally growing AI/HBM suppliers. Samsung Electronics and SK hynix are key KOSPI large caps with PER below 10; foreign and institutional managers who underperformed by missing them may need to fill positions, and consensus target prices are being upgraded, with Samsung's domestic operating-profit consensus still below 100 trillion won versus foreign estimates of 130-135 trillion won. The 2021/2018 peak risk is less likely to repeat because current expansion is focused on HBM and process conversions rather than legacy wafer capacity, and 2026 earnings are largely confirmed with 2027 outlook the key swing factor. New investors should split purchases rather than buy all at once.
This 815 Money Talk (815머니톡) video, published January 04, 2026,
features Lee Young-hoon
discussing EWY, KOSDAQ, KOSPI large caps, 005380.KS, Korean defense/space sector, Korean robotics/humanoid sector, Korean semiconductor equipment/materials sector, KOSDAQ bio/healthcare sector, Korean shipbuilding/defense/nuclear sectors, 373220.KS, Korean secondary battery sector, 005930.KS, 000660.KS.
12 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Young-hoon
· Tickers:
EWY,
KOSDAQ,
KOSPI large caps,
005380.KS,
Korean defense/space sector,
Korean robotics/humanoid sector,
Korean semiconductor equipment/materials sector,
KOSDAQ bio/healthcare sector,
Korean shipbuilding/defense/nuclear sectors,
373220.KS,
Korean secondary battery sector,
005930.KS,
000660.KS
