Fear dominates the market more than earnings... The crash is over, but the illusion has begun | Myeong Min-jun, Park Ga-young, Lee Gwon-hee

Summary

In a highly emotional market session after a severe crash, Lee Gwon-hee, CEO of Wise Wave, analyzes the panic selling in Korean semiconductors and broader KOSPI. He argues the sell-off is overdone and identifies a rebound to 8,000 for the KOSPI, driven by institutional buying and cheap valuations. He highlights Samsung Electronics' upcoming shareholder return catalyst, SK Hynix's extreme cheapness, the relative strength of cosmetics stocks, and a cautious relative view on Amazon ahead of big tech earnings.

• Korean markets suffered a historic sell-off, with SK Hynix falling sharply and KOSPI dropping over 10% intraday.
• Lee sees capitulation selling, with pension funds and institutions stepping in to buy, and abundant foreign buying capacity after rebalancing.
• Samsung Electronics and SK Hynix are both extremely cheap based on earnings and free cash flow; a sharp rebound is expected.
• Samsung's upcoming earnings call may include shareholder return policy, a potential near-term catalyst.
• Cosmetics and beauty stocks (Amorepacific, LG H&H, PharmaResearch) held up well and offer better risk/reward than semiconductors.
• Ahead of big tech earnings, Microsoft and Meta are preferred while Amazon is viewed as the weakest link due to cloud competition and weak profitability.
• The discussion captures investor distress and advises long-term holding for high-quality stocks, with diversification away from overweight semiconductor bets.