Surviving the KOSPI Plunge: Lee Kwon-hee's Diagnosis

He added that shrinking the area is what makes it better.

He summarized that 6F square is disadvantageous and 4F square is advantageous.

CEO Lee said he doesn't really understand why Sangshin Memory has become a hot topic.

He assessed that Wall Street's liberal arts types are overreacting without really understanding the technology.

DRAM does not work alone; it operates like a partner beside the CPU. That is why it must pass verification from CPU and GPU companies before it can actually be used.

The representative case is Nvidia failing to pass verification and therefore being unable to use HBM3. CXMT is on a blacklist, so verification and equipment access on the US side are difficult for it.

Whether equipment suppliers such as KLA supply it is the key issue.

He also pointed to whether Korean measurement equipment companies enter the relevant supply chain as a point to check. He added that even with equipment in place, yield and securing real-use partners are needed again.

CEO Lee assessed that the concern over CXMT competition is overreflected in the market. He also pointed out that a concept car and mass production are different things.

He judged that CXMT is being viewed far too large right now, even though it has no EUV equipment.

The KOSPI converged while raising its lows, and the 5-, 10-, 20-, and 60-day moving averages gathered together. Typically after convergence a direction emerges, up or down, and on October 8 it broke to the downside.

It collapsed sharply on Monday and Tuesday of this week. An interpretation was also offered that, looked at favorably, it could be a flow forming a double bottom.

CEO Lee viewed yesterday's decline as a fake drop, that is, a fake before a rise. He explained that there are cases where prices fall as if pretending before going up.

He said such movements appear in both individual stocks and the index. He described this with the term commonly called 'scare tactics'.

His view is that the market took it a little too seriously.

He also mentioned that it is possible to interpret the market crash as being due to the memory listing.

If issues come up again in NAND flash at that time, they could shake the market.

He also said that liberal arts types should not be thought of as having made a mistake.

Not every investor studies semiconductors in depth. He explained that global managers are no different.

He said that there are not a few cases of hearing rumors, then selling on rumors.

The diagnosis is that there are many system events next month, so there is little reason for foreign investors to buy this month. The point is that the domestic market lacks trigger-event momentum.

An interpretation was also offered that internal momentum comes from shareholder return policy and supply and demand.

An analysis was presented that Nvidia's share price rise was driven more by increased buybacks and cancellations than by earnings. Micron also said it would return most of its free cash flow to shareholders.

However, since it could be a wrapper where returns are given only after everything else is used up, he viewed IR packaging as important.

The explanation is that the reason the rich are regarded as smart is that they received gifts at very low prices. He also pointed out that the tax difference is large.

The explanation is that this means the share price has not been rising much.

He mentioned that very few people want to buy at the current price, and that many investors are stuck holding their positions.

There was a remark that there may be doubts about whether foreign investors will take over the shares of the many investors stuck around 20,000 won.

His judgment is that this market is not one where simply holding still works. He advised keeping a medium-to-long-term weighting while pursuing returns with short-term funds in other stocks.

He also stated that anyone who wants quick profits needs to work harder.

It was said that signs such as collaboration with Nvidia are expected to appear within this year, before mass production.

The case of Google and SoftBank acquiring and then failing was also mentioned. Hyundai Motor has supported research funds by injecting 500 billion won into Boston Dynamics every year.

The failed acquisitions by Google and SoftBank were also mentioned.

It was also reported that Hyundai provides support by injecting 500 billion won every year so that research funds do not run short.