Ideas
KOSPI to rally, bear market overblown.
The widely held fear of a second-half bear market is overblown. Psychological pessimism has peaked and rational optimism is starting. Samsung's strong earnings, falling oil prices reducing Fed rate hike pressure, and overall liquidity support will allow the KOSPI to recover and rally toward year-end.
Earnings beat, HBM4 cycle winner.
Samsung Electronics' upcoming Q2 earnings will beat consensus because of strong memory demand and lagged price increases, and the market will eventually view the provisioning (충당금) as temporary, with much of it used for share buybacks. The provisioning discount will reverse. Longer-term, Samsung gains structural advantage from HBM4 requiring in-house foundry collaboration, while the current sell-off below 80,000 won is not a cycle peak.
Seoul housing and data center construction boom.
Post-local-election, construction approvals are accelerating, driving a boom in Seoul housing and data center projects. Margins on residential construction are far higher than on SMR or other projects. Most construction stocks trade below PBR 1x, and a re-rating is likely as the pipeline materializes next year.
Offline retail undervalued, tourism boost.
Offline retail is deeply undervalued (PBR ~1x) because the market underestimates physical traffic recovery driven by tourism and in-person demand that AI cannot replicate. Online time share is falling due to AI usage, benefiting offline. Korea's situation mirrors Japan 2–3 years ago, where retailers like Fast Retailing and Mercari hit new highs.
Defense restocking cycle, new tech demand.
Defense stocks saw their war-premium bubble deflate, but order backlogs are growing and a restocking cycle is inevitable. The war has revealed the importance of drones and air defense systems, which will drive new R&D spending, benefiting the sector.
Micron market cap to surpass Meta.
Perplexity CEO predicts Micron's market cap will surpass Meta's within 6–11 months, implying substantial upside for Micron shares. Given that AI industry leaders' views on the memory bottleneck are more informed than market strategists' fears, this call should be weighted heavily, meaning Micron is underappreciated.
ADR listing premium, memory demand strong.
SK hynix ADR listing on July 10th could mirror TSMC's ADR premium of ~15% over the local shares, providing a re-rating catalyst. Combined with ongoing memory supply shortages and strong AI-driven demand, SK hynix will continue to see upward pressure on its stock price despite near-term volatility from single-stock leverage ETFs.
Preferred discount to narrow, dividends high.
Samsung Electronics preferred shares are trading at an abnormally wide 35% discount to common shares, versus the historical average of 15%, largely due to being excluded from single-stock leverage ETF trades. With high dividends (potentially ~7%) and expected regulatory tightening on leveraged ETFs reducing distortions, the discount will narrow, making preferred shares a strong buy.
Neglected stocks rebound, leverage ETF regulation.
The massive distortion caused by single-stock leveraged ETFs has drained money from KOSDAQ and other non-memory stocks, creating extreme undervaluation in neglected small/mid-cap shares. Expected regulatory crackdown on these leveraged products will reverse the distortion and trigger a strong rebound in KOSDAQ and 소외주.
This 3PRO TV (삼프로TV) video, published July 06, 2026,
features Lee Hyuk-jin
discussing EWY, 005930.KS, Korean Construction Stocks, Korean Offline Retail Stocks, Korean defense stocks, MU, 000660.KS, 005935.KS, KOSDAQ Index.
9 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Hyuk-jin
· Tickers:
EWY,
005930.KS,
Korean Construction Stocks,
Korean Offline Retail Stocks,
Korean defense stocks,
MU,
000660.KS,
005935.KS,
KOSDAQ Index
