All-in on loans and debt-fueled investment… Interest rates are rising, but household debt isn't being reined in

Summary

Park Se-ik discusses investor stress amid KOSPI volatility, surging household debt despite rising rates, and conflicting views on the semiconductor cycle. He advocates increasing equity allocation to near full, sees Korean semiconductors as a buy-on-dip range trade, views Hyundai Motor's recovery positively, and highlights Korean power equipment firms as beneficiaries of Amazon's massive Asian data center build-out.

• KOSPI rollercoaster causing retail investor stress; Park warns against speculative trading and leveraged ETFs.
• Household debt continues to grow strongly; Bank of Korea rate hike expected due to persistent demand and liquidity.
• Wall Street divided on semiconductor peak; Park sees Korean semis range-bound with buy-on-dip opportunities given remaining earnings momentum.
• Kim Young-ik article warns KOSPI may be overvalued based on Buffett index and leading indicators.
• Amazon is aggressively building AI data centers in Asia; Korean power equipment makers (Hyosung Heavy, LS Electric, Daehan Cable) winning orders.
• Hyundai Motor Q2 weakness priced in; H2 recovery, robotics and SDV catalysts could drive re-rating; analyst target implies 75% upside.
• Park Se-ik recommends increasing Korean and US equity exposure to near full at current index levels.