Emergency Interview: Samsung Electronics and SK Hynix, Foreign Selling Bomb Exploded 'Is It Time to Exit the Stock Market?' | The Premier CEO Kang Gwan-woo

Summary

Kang Gwan-woo, CEO of The Premier, discusses the recent sharp decline in KOSPI driven by foreign selling of Samsung Electronics and SK Hynix, but views it as profit-taking rather than a trend reversal. He highlights the structural strength of the memory duopoly, with operating profit share far exceeding market cap share, leaving room for further re-rating. He compares SK Hynix (high beta, aggressive) and Samsung (defensive with foundry upside), and warns against expecting excessive PER expansion. He also notes the tailwind from massive AI capex by global hyperscalers but cautions about potential cutbacks.

• Korean stock market fell sharply on May 12 due to foreign selling, but Kang sees it as profit-taking after a strong rally.
• Samsung Electronics and SK Hynix together account for 67% of projected KOSPI operating profit in 2026, but only 45% of market cap, suggesting room for further gains.
• Kang recommends SK Hynix for aggressive investors due to its high beta and pure memory focus, and Samsung for defensive investors due to diversification and foundry potential.
• He is skeptical that memory stocks can re-rate to 10-12x forward PER, seeing 8-9x as more realistic given potential earnings plateau.
• Global AI capex is expected to reach $1 trillion by 2027, directly and indirectly benefiting Korean semiconductor firms.
• Kang warns that if one major hyperscaler cuts AI spending, it could create an inflection point for the sector.