Will Samsung Electronics' Q3 earnings save the market?

Summary

Deputy General Manager Lee Hyeok-jin discusses how single‑stock leveraged ETFs are distorting Korean market liquidity, creating a long‑semiconductor/short‑everything‑else dynamic. He remains bullish on Korean memory chips and equipment names, flags Hyundai Motor Group as oversold, and suggests watching for a July recovery in KOSDAQ as policy catalysts emerge. The high volatility from these products is also seen as a headwind for foreign inflows and the won.

• Single‑stock leveraged products soak up over 15 trillion won daily, draining liquidity from non‑semiconductor and small‑cap segments.
• Memory semiconductor valuation and earnings are unbeatable, and Samsung’s upcoming results could surprise well above 90 trillion won in operating profit.
• Korean semiconductor equipment/materials are a safe haven that will rally once the leverage‑driven liquidity distortion unwinds.
• Hyundai Motor Group has fallen to extreme undervaluation, touching the lower band of its valuation envelope twice, making further drops a systemic risk.
• KOSDAQ earnings are actually improving, and early‑July policy events could unlock a rotation back into oversold, non‑semiconductor stocks.
• High volatility from the leverage craze deters long‑term foreign investors and exerts pressure on the Korean won.