Ideas
Small power equipment stocks outperform
Small and mid-cap Korean power-equipment makers are seeing first-quarter orders equal to roughly half of last year's total, and a Korean small/mid power-equipment company may list on Nasdaq. Similar market-cap peers such as Sanil Electric and Jeryong Electric can outperform as the power-equipment theme broadens.
LS Corp has 50% upside
LS Corp, the holding company of LS Electric, had a planned spin-off listing halted by political comments, and its battery-material holdings have lagged. Relative to LS Electric, its valuation is undemanding; the company's own report indicates theoretical upside of about 50%, with further upside if it re-rates toward power-equipment or gas-turbine valuations.
Korean holding company cycle still early
Korean holding companies remain undervalued versus their subsidiaries; they can benefit from NAV growth as subsidiary share prices rise, share buybacks, and expanded dividends. The holding-company cycle is still early and can extend through 2027-28 dividend cycles.
Shinsegae has hidden land value
Shinsegae owns the Express Bus Terminal site next to Gangnam Shinsegae, and redevelopment became official late last year. The land value alone could be similar to the current market cap based on the 2014 Hanjeon site transaction, and development could multiply that value. Real-estate investors rotating into stocks may favor land-rich companies like Shinsegae.
Physical AI is next major cycle
Physical AI is the next major cycle after semiconductors and power. Figure AI passed BMW factory tests, Unitree started retail sales, and non-China humanoid and robotics infrastructure is becoming more viable. Korean auto and defense demand should drive a domestic robot momentum wave around 2028-29.
Hyundai Motor benefits from Atlas
Hyundai Motor owns Boston Dynamics, whose Atlas humanoid is being redesigned for mass production with fewer actuators and electric actuation. Atlas is targeting factory work and defense applications, and defense procurement plans for large unmanned robots after 2028 should make Hyundai a key beneficiary of physical AI.
Defense robotics is second robot market
Boston Dynamics' Atlas is being researched for defense applications, and Korea's defense procurement agency plans to develop more than 10,000 unmanned defense robots after 2028. Defense should become the second major demand source for robots after auto factories.
Ship engine makers have upside
Gas-turbine shortages are driving demand for ship engines as on-site power alternatives; Wartsila delivered 100 ship engines in Jan-Apr and Korea received its first order. Korean engine makers have about 40% upside to close the valuation gap with Wartsila, with more upside if they approach gas-turbine valuations.
Shipbuilders benefit from engine boom
Rising ship-engine prices and delivery delays should lift ship prices, spreading the on-site power and engine theme to the broader shipbuilding sector. Samsung Heavy Industries has returned to profitability after years, and both earnings trend and valuation look attractive; HD Hyundai Heavy Industries and Hanwha Ocean are key names.
Excavator demand creates bottleneck
Large excavators are needed for resource development and data-center or large infrastructure, while small excavators serve housing and urban infrastructure. Resource prices are high, data-center construction is rising, and post-war reconstruction could add demand, creating an excavator bottleneck. Caterpillar is already at new highs and Korean excavator stocks are moving.
Robot component suppliers benefit
The robot industry will resemble autos, where components and after-service are large profit pools. Japanese suppliers such as Harmonic Drive Systems and Nidec dominate key robot components, while Korean auto-parts vendors can capture share as robot production scales.
Robot software platforms are underappreciated
Robots will be heterogeneous and require integration and control software. Hyundai Autoever is moving into robot after-service and software, Samsung SDS is investing in AI data centers and smart factories, and LG CNS is taking over LG's robot business as an integrated solution provider. These IT-service names are underappreciated robot-era large caps.
Resale distributors benefit from secondhand
The secondhand apparel market is growing faster than fast fashion, especially in Asia and Europe and among younger consumers. Limited-edition releases can hold or gain value, and platforms that authenticate and grade goods reduce depreciation. The value accrues to resale platforms and distributors rather than brands whose sales are limited by scarcity.
Trading cards become investable assets
Pokemon card demand has exploded, scarcity is severe, and a rare card auction at 23.9 billion KRW shows a signature transaction price. Cards are becoming Bitcoin-like assets with grading, liquidity, global communities, and fractional or tokenized trading. This should benefit collectible trading-card platforms and distributors.
Buy KOSPI index ETF
Korean KOSPI earnings growth is faster than share-price growth, limiting downside risk, and the market is not uniformly overheated because weak or AI-doubtful companies still lag. Since Korea is a manufacturing economy tied to AI's circular manufacturing demand, buying the index ETF is a simple way to participate without stock-picking.
This 3PRO TV (삼프로TV) video, published May 04, 2026,
features Lee Hyuk-jin
discussing 033100.KQ, 006260.KS, Korean holding companies, 004170.KS, Physical AI/robotics, 005380.KS, Korean defense robotics, 082740.KS, 042660.KS, 329180.KS, 010140.KS, Excavators/construction machinery, CAT, 6594.T, Korean auto parts suppliers, 6324.T, 307950.KS, 018260.KS, LG CNS, Apparel resale/limited-edition distributors, Pokemon cards/collectible trading cards, Collectible trading card distributors/platforms, EWY.
15 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Hyuk-jin
· Tickers:
033100.KQ,
006260.KS,
Korean holding companies,
004170.KS,
Physical AI/robotics,
005380.KS,
Korean defense robotics,
082740.KS,
042660.KS,
329180.KS,
010140.KS,
Excavators/construction machinery,
CAT,
6594.T,
Korean auto parts suppliers,
6324.T,
307950.KS,
018260.KS,
LG CNS,
Apparel resale/limited-edition distributors,
Pokemon cards/collectible trading cards,
Collectible trading card distributors/platforms,
EWY
