Money Is Moving! Let Me Tell You About the Golden Blind Spot | Lee Kyung-soo, Senior Researcher at Hana Securities Research Center

Summary

Lee Kyung-soo, a senior researcher at Hana Securities Research Center, argues that rising rates and wide Korean sector-return dispersion favor a catch-up in low-PBR/value asset stocks. He highlights steel, POSCO Holdings, distribution/retail and financials as key undervalued areas, with steel preferred because earnings visibility and industrial-metal triggers are improving. He also expects industrial metals and copper to rise on inflation hedging, US ISM new orders, and AI/data-center demand. The discussion is framed as a quantitative, valuation-driven rotation rather than a short-term market call.

• Korean low-PBR/value stocks are favored as rates rise and sector returns mean-revert.
• Steel is the cheapest PBR sector; tariffs and China concerns are seen as largely reflected.
• POSCO Holdings is preferred within steel for its unpriced lithium optionality; Hyundai Steel lacks similar growth triggers.
• Distribution/retail and financials can benefit from extreme undervaluation even without their own earnings triggers.
• High-dividend and low-valuation factors tend to outperform if the KOSPI rally slows.
• Industrial metals are expected to rise with inflation, ISM new orders, and AI/data-center demand.
• Copper is singled out for the strongest demand fundamentals and rebound potential.
• The speaker cautions against chasing daily market noise rather than accumulating valuation-driven ideas.