Leveraged ETF 75% Liquidated... Two Major Positive Catalysts for Korean Stock Market / Samsung Electronics and SK Hynix Surge... Can We Trust It?

Summary

Director Park Hyun-sang analyzes the Korean market's sharp bounce, attributing it to the near-completion of leveraged ETF liquidations and record foreign inflows into the EWY ETF. He advises avoiding speculative small biotechs, watching oversold defense stocks for future recovery, and rotating into semiconductor materials and equipment names as mega-cap chips consolidate.

• Director Park Hyun-sang explains the KOSPI's sharp bounce, citing leveraged single-stock ETF liquidation at around 75% and record foreign inflows into the MSCI Korea ETF (EWY) as major positive catalysts.
• He notes that the leveraged unwind is nearly complete, easing forced selling pressure, and JPMorgan says the tech selloff is largely over.
• He emphasizes that investor disbelief and individual selling during the rally is a healthy wall of worry.
• Within the market, he expects Samsung Electronics and SK Hynix to see limited further upside before consolidating, and suggests rotation into overlooked semiconductor materials and equipment (소부장) names.
• He warns retail investors to avoid highly volatile, news-driven small-cap biotech stocks like Samcheondang Pharm and TissueGene due to frequent crashes.
• He flags defense stocks as oversold and worth accumulating once the market stabilizes.
• He advises investors to stay in the market, raise some cash, and prepare for a potential box-range trading environment between KOSPI 6500-7200.