The Real Reason the Korean Stock Market Is Frustrating... Smart Money Moves From Semiconductors to 'Here' | iM Securities Seoul Financial Center Director Lee Young-hoon

Summary

Lee Young-hoon explains why the Korean stock market is frustrating despite decent semiconductor earnings: the unexpected rate hike is tightening liquidity, retail money is leaving, and leadership is narrow and dependent on Samsung Electronics and SK hynix buybacks. He sees money rotating among AI-linked narrative sectors such as secondary batteries, power equipment, and nuclear, with renewables and defense as the next rotation candidates. He remains cautious on chasing current leaders and says KOSPI is likely rangebound until a meaningful foreign-triggering event appears.

• Korea's unexpected rate hike tightens liquidity and reinforces retail and foreign supply outflows.
• Samsung Electronics and SK hynix buybacks provide limited market liquidity but not broad market strength.
• Foreign investors are still overweight semiconductors and likely reduce on rallies, limiting semiconductor upside.
• Current rotation is concentrated in AI-linked sectors such as power equipment, nuclear, and secondary batteries.
• Samsung SDI leads secondary batteries with sticky supply and LFP mass production narrative, while LG Energy Solution has limited downside.
• Hyosung Heavy Industries leads power equipment on its US factory and order story despite a not-cheap valuation.
• Next rotation candidates are Korean renewables/solar/wind and defense, where supply is quietly building and triggers may change the picture.
• KOSPI is likely to remain rangebound and rotation-driven until a strong external trigger broadens flows.