Manager Cho Ki-jun Criticizes Institutions' "Bias Towards Samsung Electronics and Hynix, Deepening Market Distortion"

Manager Cho Ki-jun criticized institutional investors for concentrating funds on Samsung Electronics and SK Hynix, neglecting the decline of other individual stocks and distorting the market. He pointed out the phenomenon where pension funds sell other stocks and only buy Samsung Electronics and SK Hynix, arguing that this deepens market imbalance.

He indicated that this concentrated buying encourages the decline of individual stocks and harms the overall health of the market. Manager Cho emphasized that the problem in the Korean stock market is worsening because pension funds continue to violate these rebalancing principles.

He added that such investments by institutions are ultimately causing the collapse of the Korean market, and despite repeatedly warning pension funds to stop these actions, they are repeating the same mistakes.

Manager Cho Ki-jun questioned whether the rise in US 30-year long-term bond yields is a direct cause of the Korean market's collapse. He pointed out the phenomenon where the Korean market fluctuates wildly because some negative factor hasn't been resolved even as US long-term bond yields rise.

He emphasized that the Korean market, in particular, shows excessive volatility compared to the US market, and its vulnerability is further highlighted by the concentration on specific stocks. Manager Cho stated that it is very concerning that institutional investors like pension funds are distorting investments by taking advantage of market volatility in such a situation.

Manager Cho Ki-jun strongly demanded that a short-selling ban is urgently needed to protect the KOSDAQ market in South Korea. He criticized the exchange's method of suppressing stock price increases by issuing investment warnings or cautions for specific stocks while still allowing short-selling.

Manager Cho argued that short-selling should be prohibited for at least 15 days to a month for stocks that have triggered an investment warning. He emphasized that such measures are necessary to ensure the soundness of the KOSDAQ market and protect investors.

Manager Cho Ki-jun pointed out that Korea's corporate ecosystem has a structure where it is difficult for innovative companies, other than Samsung Electronics and SK Hynix, to grow. He expressed concern that, unlike the US, it is difficult for new innovative companies to emerge in Korea.

He argued that if the phenomenon of funds excessively flowing into Samsung Electronics and SK Hynix continues, future growth engines will eventually be depleted, and the entire stock market will decline. Manager Cho critically stated that this phenomenon will ultimately lead to an 'aging Korean stock market.'

He added that if an environment where diverse companies can grow healthily is not created, the vitality of the Korean economy will inevitably decline in the long run.

Manager Cho Ki-jun advised holders of Samsung Electronics and SK Hynix that they can comfortably hold onto their shares. He stated that Samsung Electronics has the potential to rise to 320,000 won and SK Hynix to 2.2 million won without major issues.

However, he added that a process of absorbing supply would be necessary rather than a short-term surge. This implies that absorbing selling pressure for a certain period is essential for a stable stock price increase.

Manager Cho Ki-jun presented target prices of 320,000 won for Samsung Electronics and 2.2 million won for SK Hynix, indicating a positive outlook for these stocks. He specifically mentioned that expectations for Samsung Electronics' 100 trillion won share buyback and shareholder return policy remain valid.

He interpreted the current market situation as an impact from the US market due to a sharp rise in government bond yields, not a financial crisis. Manager Cho reiterated his critical stance on the phenomenon where not only individual investors but also institutional investors are biased towards Samsung Electronics and SK Hynix.

Manager Cho Ki-jun assessed Kakao's human spin-off of its X business unit and Kakao AI (Kana) not as a negative, but as a positive. He emphasized that contrary to market concerns, this spin-off could be a huge positive for Kakao.

Kakao is currently trading at historic low prices, which he evaluated as having high investment appeal. Manager Cho explained that this human spin-off should be interpreted not as a simple equity split, but as a strategic move specialized in the AI business.

He stated that this demonstrates Kakao's commitment to focusing on the AI sector to secure future growth engines. This specialization strategy is analyzed to increase Kakao's corporate value in the long term.

Manager Cho Ki-jun predicted that oversold biotech stocks, including AprilBio, have entered an oversold territory and are expected to rebound soon. He emphasized that rumors of AprilBio returning its Lundbeck license are not true, and there is no reason for the stock price to fall excessively.

He compared the current situation of AprilBio to the Kolon TissueGene case, explaining that it is in an oversold phase. Manager Cho expressed anticipation that after a change in major shareholder and a surge in trading volume, there is a possibility of a price breakout.

Manager Cho Ki-jun pointed out that despite Olix signing a license-out agreement with Hanseo Pharmaceutical, the market showed no reaction, and indiscriminate selling occurred. He stated that even with positive corporate announcements, there was no positive impact on the stock price.

This was cited as an example of intensified selling amidst a general market downturn. Manager Cho expressed concern that this phenomenon is hindering the healthy functioning of the market.

He added that a market situation where positive news is not properly reflected causes great confusion for investors.

Manager Cho Ki-jun identified short-selling as the main cause of the KOSDAQ market's decline and called for stronger short-selling regulations. He argued that a minimum 15-day short-selling ban is necessary, and furthermore, short-selling in the KOSDAQ market should be completely prohibited for one year.

Manager Cho emphasized that these measures are issues that regulatory authorities, the exchange, and political circles should recognize and actively address. He criticized short-selling for increasing market uncertainty and hindering healthy investment.

He asserted that short-selling should be banned to stabilize the market and protect individual investors.

Manager Cho Ki-jun predicted that NRB will greatly benefit from the government's expanded modular housing supply policy. The government plans to increase supply starting with 2,000 modular homes this year, and related construction will be in full swing through LH and GH projects.

NRB was identified as the biggest beneficiary, having sufficient supply capacity to meet these government policies. Manager Cho evaluated that while NRB's stock price is currently undergoing a short-term adjustment, it has ample potential for mid-to long-term price appreciation.

Manager Cho Ki-jun analyzed the supply and demand trends in the PCB industry, stating that foreign buying is flowing in despite institutional selling. While institutions are generally taking selling positions in major PCB-related stocks such as Gigavis, Daeduck Electronics, and Korea Circuit, foreign investors are selectively buying.

Based on this supply and demand situation, Manager Cho diagnosed that the PCB sector is an oversold stock and has the highest likelihood of a quick rebound.

Manager Cho Ki-jun diagnosed the recent market decline as an excessive reaction to rising US long-term bond yields and an indiscriminate selling phenomenon. He analyzed that the market overreacted despite the bond yield increase not being severe enough to cause such a decline.

He also pointed out that general indifference to the market, excluding Samsung Electronics and SK Hynix, fueled this excessive decline. Based on this analysis, Manager Cho expressed optimism that the market is likely to rebound with a long bullish candle next week.