Real Rally Begins... The Momentum for KOSPI 8000 Is 'This' / What Are the Undervalued Earnings Stocks Foreigners Have Already Bought? | Han Ji-young, Research Fellow (Full Version)

Summary

Han Ji-young, Research Fellow at Kiwoom Securities, argues the KOSPI rebound is real and driven by returning foreign flows, normalized volatility, cheap valuations and improving earnings visibility. He sees broadening leadership beyond semiconductors into lagging securities and retail/department stores, while remaining bullish on memory semiconductors supported by LTA contracts and rising spot prices. He expects KOSPI to break 8000 and retest 9000 this year, with Samsung and SK hynix shareholder return announcements as a key catalyst, while USD/KRW stays in a 1410-1450 range.

• KOSPI rebound is backed by foreign net buying after semiconductor deleveraging and cheaper valuations.
• Korean earnings recovery is broadening beyond semiconductors, with securities and retail/department stores lagging despite foreign inflows.
• Korean securities offer attractive dividend yields and catch-up potential, while retail/department stores have not fully priced foreign buying.
• Memory semiconductor upcycle is considered durable due to LTA prepayments, stable spot prices and positive SanDisk guidance.
• Nvidia-Wall Street AI alliance and hyperscaler core earnings reduce near-term AI bubble risk.
• Samsung and SK hynix shareholder return announcements are expected by late August or early September.
• USD/KRW is seen rangebound near 1410-1450, with limited downside to 1300.
• Near-term profit-taking is possible next week, but the broader KOSPI rebound remains intact.