KOSDAQ's Time Has Come... 'Right Here' Is Where Funds Will Flow / All About Memory Semiconductors, Why Overinvestment Concerns Are Unfounded | Director Lee Juyeon

Summary

Director Lee Juyeon argues that KOSPI is deeply undervalued with earnings upgrades ahead. He expects a rotation from semiconductors to non-semiconductor sectors from mid-June onward, favoring a broad KOSDAQ recovery led by semiconductor equipment and materials stocks. Memory leaders Samsung, SK Hynix, and Micron are in a powerful AI cycle with structurally improved earnings visibility and low valuations, while overinvestment fears are unfounded. He also highlights Kia as a catch-up play within the Hyundai group.

• KOSPI forward P/E below 8x, near COVID lows, with rising EPS and Goldman Sachs target upgrade.
• Extreme semiconductor concentration set to ease; historical pattern shows non-semiconductor strength from mid-month.
• KOSDAQ expected to rebound broadly; semiconductor equipment & materials sector best positioned to lead thanks to real earnings growth.
• Memory cycle is historically strong (571% OP growth) with low valuations; LTA structural changes improve earnings stability.
• Overinvestment concerns dismissed: data center vacancy at all-time lows, output growth constrained by technical complexity.
• Samsung, SK Hynix, Micron all rated as buys on any significant dips.
• Kia is trading at 7-8x P/E versus Hyundai Motor above 10x, presenting a valuation catch-up opportunity.
• Near-term catalysts are limited until late June Q2 earnings season, but the broader setup remains constructive.