#每周来晒 #KoreanStocksCrashWouldYouBuyTheDip

Today’s plunge in Korean stocks was truly mind-boggling. The KOSPI fell nearly 7% at one point during the session, breaking below 6,000 points, and the Korea Exchange even activated the SIDECAR circuit breaker to halt algorithmic selling. Samsung Electronics fell more than 8%, while SK hynix was even harsher, plunging more than 10% at one point during the session.

But my judgment is clear: this is panic selling, not a collapse in fundamentals.

A few reasons:

First, Samsung’s stock falling despite blowout earnings is itself an unjustified sell-off. Samsung Electronics’ third-quarter operating profit reached ₩107.4 trillion, up 782.5% year-on-year, breaking through ₩100 trillion for the first time in history, while its operating margin of 55.1% hit a record high. Converted into dollars, that is approximately $80.3 billion, even exceeding Nvidia’s expected quarterly operating profit. With earnings this strong and the stock still falling, put simply, this is a hole created by foreign investors taking profits and dumping shares.

Second, valuations have already reached extremely low levels. Based on projected 2027 earnings, Samsung Electronics’ forward P/E is only around 4x. KB Securities directly described it as “extremely undervalued,” saying it is difficult to find a basis for the valuation discount. Some analysts have given it a fair valuation of around ₩500,000, while the current share price is only slightly above ₩260,000, representing a discount of nearly half.

Third, historical experience tells me that panic plunges of this magnitude are often long-term bottoming zones. The IMF just raised its forecast for South Korea’s 2026 economic growth from 2.6% to 3.3%; the fundamentals have not deteriorated to the point that such panic is warranted.

My strategy: build positions in batches, not go all-in at once. Allocate part of the portfolio to both Samsung and SK hynix, initially building a 30% core position; add more if they fall another 10%, and add again if they fall 20%. The AI demand cycle for memory chips is far from over, and HBM4 still has significant growth potential next year.

Be greedy when others are fearful, but use discipline to be greedy—not emotion to gamble.