"Samsung Electronics and SK Hynix Are Undervalued Compared With Micron... U.S. Investors Are Also Flocking to the KOSPI"

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[Financial News]  As the domestic stock market continues its strong rally, with the KOSPI nearing the 8,000 level, Japanese media reported that even U.S. institutional and retail investors are jumping into Korean stocks.
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On the 14th, Nihon Keizai Shimbun reported in an article titled 'Wall Street Is Falling for Korean Stocks' that "if you walk the streets of New York, you can feel the popularity of Korean culture, from music and food to cosmetics," adding that "the same is true on Wall Street in New York. U.S. investors are pouring enthusiasm into investing in Korean stocks."
It also reported that the prices of SK hynix and Samsung Electronics have surged nearly threefold over the past year, driven by rising memory chip prices amid the expansion of the artificial intelligence (AI) industry. Even after that rally, the two companies' forward price-to-earnings ratios (PERs) are still around 6 times, making them attractive because they remain undervalued compared with Micron Technology, which trades at around 9 times.
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It also noted that interest in the Korean stock market is growing among the U.S. investment community.
Eduardo Marques of Pentent Partners told Nihon Keizai Shimbun that he is "addicted to finding hidden value-investing opportunities in Korean stocks."
He added that focusing on the gap in forward PERs between SK hynix, Samsung Electronics and Micron Technology is "a method widely known in Western markets. You can buy at a much lower price."
Jonathan Lennon of Pleasant Lake Partners also referred to the large bonuses at Samsung Electronics and SK hynix, saying, "The size of the bonuses at the two companies is expected to reach $4 billion, which amounts to several percent of South Korea's Gross Domestic Product (GDP). This will have an unprecedented ripple effect on Korea's consumer market."
Money from U.S. retail investors is also flowing into the Korean stock market.
More than $600 million flowed into the memory semiconductor exchange-traded fund (ETF) launched earlier last month by U.S. asset manager Roundhill within just over a month. The ETF is said to allocate nearly half of its weight to Samsung Electronics and SK hynix.
Interactive Brokers, a U.S. online brokerage, also began allowing direct trading of stocks listed on the Korea Exchange (KRX) from the 7th.
y27k@fnnews.com Seo Yoon-kyung Reporter