KOSPI to See Continued Extreme Volatility for Years, Says Life Asset Management CEO

According to Life Asset Management CEO Kang Dae-kwon in an interview published July 4, South Korea's KOSPI index will continue experiencing extreme volatility for the coming years. The executive noted that daily swings of 4-5% are likely to become routine as the market shifts from institutional and foreign investors to retail participants. With domestic stocks rising nearly 100% this year, institutional investors are reducing positions due to portfolio rebalancing mandates, while retail investors become increasingly dominant, amplifying daily fluctuations.

Kang also cautioned against overconcentration in semiconductor stocks, noting that while Samsung Electronics and SK Hynix remain undervalued with price-to-earnings ratios of 6-7 times, related suppliers like Samsung Electro-Mechanics trade at 60-70 times earnings. He recommended focusing on domestic consumption stocks in the second half, citing expected fiscal stimulus and potential wealth effects from semiconductor bonuses.