Part 1) Neglected Bio Stocks: Three Reasons from the Industry | Park Se-ik, Executive Director of Chesley Investment Advisory [Womae Shinbak]

Summary

Park Se-ik addresses market volatility, urging investors to buy KOSPI on dips as panic over war and rate fears is overblown. He then dissects an article on why Korean biotech stocks are neglected despite strong fundamentals, explaining three reasons: trust collapse from disclosure scandals, fund flows to semiconductors, and leveraged single-stock products draining risk capital. He sees a rebound setup for biotech backed by government growth funds and licensing catalysts. Finally, he reviews the governance discount at Youngone Corporation, where excess cash and weak shareholder returns suppress the stock.

• Park Se-ik personally bought the KOSPI index during the dip, arguing the sell-off on geopolitical fears is a buying opportunity.
• Korean biotech/healthcare sector has severely underperformed KOSPI and KOSDAQ despite solid fundamentals.
• Three reasons for biotech neglect: trust issues from Alteogen/Samchundang disclosures, semiconductor rally fund outflows, and leveraged single-stock products absorbing risk capital.
• Biotech fundamentals are strong with 16% revenue growth, and H2 catalysts include the 150 trillion won government growth fund and big pharma licensing deals.
• Youngone Corporation exemplifies a governance discount due to high cash, low dividends, insider pay decoupled from performance, and a layered holding structure.
• Reform of inheritance tax based on PBR could incentivize better shareholder returns and re-rating for such companies.