Lyon: A 15% to 25% pullback in the South Korea Kospi index is an attractive entry point; preferred picks include Samsung Electronics and SK Hynix, among others.

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Golden Finance reported that on June 30, CLSA released a report stating that the South Korean government, together with Samsung and SK Group, announced a massive artificial intelligence (AI) investment plan totaling over 4,750 trillion Korean won, covering semiconductors (3,206 trillion won), physical AI (undisclosed amount), and AI data centers (up to 1,550 trillion won). Although the investment timeline extends to 2035 and beyond, the firm believes the short-term impact is limited, but this move strengthens the long-term AI investment cycle and industry positioning. Based on this theme, CLSA's top picks include Samsung Electronics, SK Hynix, Samsung C&T, Hyundai Motor, Hyundai Mobis, Samsung E&A, and Naver. For the KOSPI index, the firm continues to view a 15% to 25% pullback as an attractive entry point, and the recent 14% decline provides a compelling opportunity (unless systemic risks arise).
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