"A sharp drop is an opportunity"...After KOSPI hit 9,000, it is taking a breather. How should investors rebuild their portfolios?

[Financial News] As the KOSPI (Korea Composite Stock Price Index) has recently shown sharp volatility after breaking above the 9,000 level, advice has emerged that investors should focus on companies' fundamental value and earnings rather than the index's short-term ups and downs.
On the 30th of last month, LS Securities analyst Yeom Seung-hwan appeared on the YouTube channel 'Kim Jaewon TV' and described the recent market correction as "a simple supply-demand adjustment, not an external shock."
Yeom said the rapid rise in the KOSPI to the 9,000 level was driven by excessive concentration in a few stocks, including Samsung Electronics and SK hynix.
He said the current correction is being caused by foreign investors mechanically selling holdings to meet portfolio weight rules, and predicted that this supply-demand instability would ease from July.
On the semiconductor industry, he stressed that a completely different paradigm is now at work. Yeom explained, "Semiconductors are now moving beyond the old cycle of booms and busts. They will show step-by-step growth as a 'security asset' needed by Big Tech companies and for national data center expansion." He argued that a market plunge should instead be seen as an opportunity to increase investments.
Looking ahead, he said the stock market is likely to continue a rotation-driven phase in which momentum spreads from leading stocks to laggards. Among the sectors worth watching, he pointed to biotech, which is expected to benefit from measures to revitalize KOSDAQ, and recommended industrial names such as shipbuilding, defense, and power equipment as promising picks because they are seeing clear gains from the U.S.-China trade conflict and improving earnings.
Yeom said, "Supply and demand are only a short-term issue. What ultimately determines a stock's long-term performance is a company's earnings and growth potential." He added, "Companies with solid earnings support will eventually find their proper value, so investors should review their portfolios."
Meanwhile, on the 1st, the KOSPI closed at 8,303.41, down 173.07 points, or 2.04%, from the previous session. It briefly tried to rebound in early trading by recovering the 8,600 level, but the index fell as individual investors bought a net 1.7397 trillion won, while foreigners and institutions sold a net 1.7011 trillion won and 70.4 billion won, respectively.
moon@fnnews.com Moon Young-jin Reporter