Korean securities research center heads surveyed on July 6 view the recent semiconductor stock correction as a short-term speed adjustment rather than a fundamental downturn, according to a Financial News poll. The survey, which canvassed leaders from major domestic brokerages, found unanimous consensus that memory market conditions and AI demand remain robust despite near-term volatility. Kim Dong-won, KB Securities research head, attributed the pullback to short-term overheating and portfolio rebalancing rather than deteriorating fundamentals, stating the adjustment reflects normalization after first-half gains. The assessment comes amid broader market concerns over the sustainability of AI infrastructure investment and semiconductor sector valuations.
Analysts View Semiconductor Correction as Speed Adjustment
None of the surveyed securities firms interpreted the recent semiconductor correction as a long-term industry slowdown. Kim Dong-won of KB Securities stated, "The recent semiconductor correction is more about short-term overheating burden and normalization of first-half leading stock weightings than fundamental damage. We place more weight on the possibility of a rebound after speed adjustment rather than a long-term trend reversal."
Yang Ji-hwan, Daishin Securities research head, dismissed AI investment slowdown concerns, saying, "Worries about AI CAPEX rally are a recurring question from the past three years. Competitive investment expansion to maximize AI model performance will continue, and HBM long-term supply contracts will also expand." Lee Jin-woo of Meritz Securities projected that "memory supply-demand will become even tighter in 2027."
AI Infrastructure Remains Top Pick for Second Half
Most securities firms named semiconductors as the top priority sector for the second half, alongside AI infrastructure-related industries including IT hardware, power equipment, and cables. The firms expect AI investment to spread to data centers, power facilities, and server components, extending benefits across the AI value chain centered on semiconductors.
Beyond semiconductors, analysts highlighted shipbuilding, finance, securities, and retail sectors. Shipbuilding continues to see order backlog and earnings improvement, while finance and securities are expected to benefit from capital market revitalization. Retail sector picks reflect wealth effects from rising asset prices and consumption recovery expectations.
Yoon Seok-mo of Samsung Securities listed IT, securities, and department stores among preferred second-half sectors. Some analysts suggested rotation into previously underperforming sectors such as internet, pharmaceuticals, biotech, and domestic demand stocks. NH Investment Securities divided second-half investment into AI infrastructure beneficiaries (semiconductors, power equipment, secondary batteries) and policy/consumption beneficiaries (department stores, hotels, securities, holdings, pharmaceuticals/biotech).
KOSDAQ to See Policy-Driven Differentiation
The KOSDAQ market is expected to see intensified stock-by-stock differentiation alongside policy momentum. Analysts project that while delisting requirement tightening and venture capital expansion policies may improve investor sentiment, companies without earnings support will naturally be filtered out in a "separating wheat from chaff" process.
Yoon Chang-yong of Shinhan Investment Securities stated, "KOSDAQ can see short-term strength from policy expectations and domestic semiconductor investment expansion benefits, but from earnings season onward, wheat-chaff separation will proceed centered on thematic materials/parts/equipment stocks."
Cho Soo-hong of NH Investment Securities said, "Strengthened delisting requirements, tier system introduction, and National Growth Fund 2nd sale will be key catalysts for the KOSDAQ market. There is a possibility of accelerated exit of insolvent companies and expanded institutional fund inflows centered on quality firms." Park Yeon-joo of Mirae Asset Securities advised, "It is desirable to approach centered on small and medium-sized firms with AI infrastructure investment benefits and global competitiveness."
FAQ
Q: What did Korean securities analysts say about the recent semiconductor stock correction on July 6?
A: Korean securities research center heads surveyed by Financial News unanimously viewed the correction as a short-term speed adjustment rather than a fundamental downturn. Kim Dong-won of KB Securities attributed it to short-term overheating and portfolio normalization, not deteriorating fundamentals.
Q: Which sectors do Korean analysts prefer for the second half?
A: Most firms named semiconductors as the top priority, alongside AI infrastructure-related sectors including IT hardware, power equipment, and cables. Additional preferred sectors include shipbuilding, finance, securities, and retail, with some analysts suggesting rotation into internet, pharmaceuticals, and domestic demand stocks.
Q: How do analysts expect the KOSDAQ market to perform in the second half?
A: Analysts project policy momentum will improve sentiment, but companies without earnings support will be filtered out in a "separating wheat from chaff" process. Yoon Chang-yong of Shinhan Investment Securities expects short-term strength followed by differentiation during earnings season, while Cho Soo-hong of NH Investment Securities cited delisting requirement tightening and National Growth Fund 2nd sale as key catalysts.
