The Reason We Must Endure This 'Hellish Decline and Sideways Market'

Summary

Yoo Chang-hee, CEO of Ustock, discusses the brutal Korean equity decline and sideways market. He believes memory semiconductors (Samsung Electronics, SK hynix) will lead a short-term rebound and remain in a strong long-term upcycle with significant upside targets. He also identifies NAVER's solid support and cloud potential, and expects LG Electronics to recover once robotics catalysts emerge. Near-term caution is expressed for biotech stocks due to interest rates.

• Market sell-off overdone; Samsung/SK hynix likely to lead a technical rebound as they showed defense on the prior day's drop.
• Spot memory prices are rising again, and fixed contracts should follow in August, setting up semiconductor stocks for stabilization.
• Long-term semiconductor upcycle intact; SK hynix targets above 300,000–400,000 won and Samsung targets 400,000–500,000 won remain valid.
• NAVER is holding a strong support zone at 190,000–200,000 won; its cloud and data center push could be a catalytic upside driver.
• LG Electronics has fallen back to pre-event levels and looks oversold; upcoming robotics unveiling could be the required momentum catalyst.
• Biotech is expected to remain weak until autumn, as rate stabilization is needed and individual stock credibility issues persist.
• Korea's July export data showed semiconductors up 180%, reinforcing the strong earnings backdrop despite price weakness.
• Foreign flows are mixed, with record MSCI Korea ETF inflows suggesting some global investors see Korean semiconductors as cheap.