Korean stocks are in trouble. 20 Years of Prave Trader "Looking Overseas, Only One 'Open Market'"

YTN Radio (FM 94.5) [YTN News FM Wise Radio Life]
□ Broadcast Date: November 22, 2024 (Fri)
□ Host: Announcer Park Gui-bin
□ Castor: Kim Jin, Director of One Top (20 years old)

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information.

◆ Announcer Park Gui-bin (hereinafter referred to as Park Gui-bin): Aggressive selling by foreign investors is not unusual. The KOSPI is also going sideways in the 2,400s. There are also many concerns that the so-called Cell Korea phenomenon may cause a big problem in the Korean stock market. I will talk with 20-year-old Prapp Trader and Kim Jin, director of One Top. Hello, director.

◇Kim Jin, Director of Wontop (hereinafter Kim Jin): Yes, hello.

◆Park Gui-bin: Director, as I just mentioned, Cell Korea. That means foreigners sell all Korean stocks. First of all, there are concerns about the Korean economic crisis. How do you see it?

◇Kim Jin: Honestly, I don't think it's that serious that something very special has happened to our economy. Because if the economy is really shocked, it's usually called a bankrupt company. Marginal companies need to continue, but there is no such trend, so I don't think it's that level. However, if you think about the past, I think it's right that something has changed a lot. About 15 years ago, all Korean companies belonging to companies that are said to be major players in key industries in the entire world. For example, there were Samsung Electronics in semiconductors, Samsung Electronics in mobile phones, LG Display in displays, Hyundai Motor in cars, and Hyundai Heavy Industries in shipbuilding. So, foreign investors actually gave nicknames to the Korean stock market, and it was Dr. KOSPI. However, looking back a little coldly now, if you think about whether Korean companies are major players in key industries globally, I don't think so. That is why I am worried that Korea is not shrinking for any serious reason, but rather a process that is gradually cooling down in a way, and I think this is why foreign investors are acting. In fact, if there is a serious economic shock, it can be overcome quickly through strong measures, but I think it is a little worse because it is gradually cooling down now.

◆Park Gui-bin: Some people say this because they think of nightmares when the IMF crisis broke out in the past, but it's not that bad, but what the director diagnosed now is a process that is gradually cooling down. I think I'm a little worried about this, too. Then how's this? Aren't you saying that foreign investors are continuing to sell Korean stocks now? There's a reason why should I say this is the case?

◇Kim Jin: To be honest, I don't think there are many Korean stocks to buy. In fact, if you think about the concept of stocks that are still rising around the world, it almost comes down to the name AI. So it seems that only those stocks that are rising in Asiana or Europe are rising. Unfortunately, however, there seems to be no stock at the center of this global AI cycle in Korea. At least SK Hynix was the only stock that had been treated as an alternative in Korea, but interest in semiconductors in the stock market has recently declined. So, from the perspective of foreigners, it's not because we have bad feelings, but rather because we can't see stocks to buy, so I think we're selling them rather than buying them. Of course, there are many other reasons, but I think so.

◆Park Gui-bin: I see. But I don't think our stock market is the only one that's hurt, and Japan also seems to be in a bad situation right now. What's wrong with Japan?

◇Kim Jin: If you look at it now, there is only one stock market in the world that has been rising since Trump's election. Europe is bad, Japan is bad, and Korea is bad, but Taiwan is relatively good because Taiwan has stocks that people all over the world love, so I think Taiwan is relatively good. Japan, Korea, and Europe are all bad, but Korea is also weak.

◆Park Gui-bin: What on earth is Trump's election that only the United States is good and everything else is bad? What's wrong with that?

◇Kim Jin: First of all, I think Trump's first policy is to make America great again, and I think he feels a lot about putting pressure on neighboring countries in the beginning. However, if you think about Trump in the first term, we get along well later. So, I think there's no need to think about the short-term flow and the serious deterioration into the future.

◆Park Gui-bin: If you could pick a certain stock market variable in the Trump era, what would it be?

◇Kim Jin: There are many variables, but in Korea, I think the most important variable is the exchange rate. Basically, most of the basic policies of the Trump administration are probably inflation-causing policies. So in fact, the U.S. Fed has begun to cut interest rates, but it seems difficult to cut interest rates very sharply. But if you can't lower interest rates this easily, this is the most fundamental reason why the U.S. dollar can continue to be strong. If so, it means that the won/dollar continues to rise in Korea. Some people say that a good won/dollar would be good because it would improve Korea's export competitiveness, but from the perspective of the stock market, Korea is traditionally divided into an emerging market, and if the local currency is weak, the stock market is usually bad. I wonder if that burden will work at the core for the next few years. I have that concern.

◆Park Gwibin: I see. Anyway, I don't think it's that good for investors right now, but let's talk about Samsung Electronics for a moment when we come back to the domestic stock market. We announced a share buyback plan worth 10 trillion won. That's what we're going to do for the next year. Nevertheless, there seems to be no reversal except for the day we announced that day. Please point out the reason for this briefly because Samsung Electronics is the largest company in Korea, but there are concerns about what will happen to the rest of the company if Samsung Electronics does this. So, please point this out briefly, and then I think I need to ask you how to invest now.

◇Kim Jin: First of all, Samsung Electronics is not in a situation where many people like semiconductors globally yet. It was yesterday that everyone was interested in global semiconductor stocks. Only NVDA, AVGO in the United States, and TSMC in Taiwan, which announced their performance. The rest are all very marginalized right now. So, in the case of Samsung Electronics, it has just become a semiconductor company with the largest KEPA of memory semiconductors. That's why it's very attractive to buy 10 trillion won of treasury stocks, but these treasury stocks become a factor that makes stock prices stronger when business conditions are good, and since the basic business conditions themselves are negative, it may be a situation where you're not spending 10 trillion won well. That's what I thought.

◆Park Gui-bin: How should we turn to overseas stock markets now?

◇Kim Jin: A lot of people are looking at overseas stock investment these days, but this is the way to become patriotic, let's make dollars with this. Rather, I'm telling you more and actively recommending it.

◆Park Gui-bin: Let's look abroad?

◇Kim Jin: Yes.

◆Park Gwi-bin: Where should I go abroad?

◇Kim Jin: As I mentioned earlier, there is only one good market in the global market in the United States, and in fact, there is only one AI industry that is growing globally. However, if you look at this AI industry alone, all companies in the United States have overwhelming capital and overwhelming control. So there's no alternative. Then I'd like to say that we're trying to make money by investing in stocks, but I think we need to focus on the United States. Unexpectedly, a lot of foreign investments are made, and the better performance is that the U.S. market is good, but there is also a difference in investment. When Korean individual investors invest in Korea, they invest a lot in small and medium-sized stocks. But surprisingly, when you go abroad, you invest in large stocks that everyone knows. However, in the short term, small and medium-sized stocks have high volatility, so the return is good, but if you look at this for a long time, large stocks, especially leading stocks, have the best return. That's why you're investing in good stocks in the United States. That's why I thought the return was much better when investing abroad.

◆Park Gui-bin: Then the performance is good, and now the big leaders, NVDA, AVGO, and Taiwan TSMC, as you mentioned earlier, should I just invest here?

◇Kim Jin: I feel like semiconductors are dying a little bit these days, but I think all the stocks with AIs in these companies are good. If you look at the U.S. recently. So even though there is a deficit in performance, sales increase slightly, and it rises 30% per night. These days, even in the U.S. Because of those trends, so many people in the U.S. will recommend items from most securities companies or something like this, but most of them don't recommend small items. Then I think it would be good to pay attention to that.

◆Park Gwibin: I see. Please refer to what the director said, and anyway, investment is an individual's choice and responsibility lies with the individual, so you have to approach it carefully. Lastly, this investment requires a strategy, but I think psychological factors are also very important. Please tell me as an advice to invest with this information.

◇Kim Jin: I think there was a wrong advertisement in our country. When everyone says yes, if you can say no, then you can invest and succeed. I think this is so imprinted on Korean people. But in my experience, even if you invest hard at that time when everyone else says it's good, there's no big problem in making money.

◆Park Gui-bin: Follow the trend?

◇Kim Jin: But the market is so bad right now. But don't go there in advance and say yes to yourself because everyone else is telling you to play, and don't do stocks first. In the case of the Korean market, I think it's better to wait until everyone thinks it's good, and I hope you do that because investing in stocks doesn't make money.

◆Park Gwibin: I see. When others say yes, let's say yes. Let's stop here. Until now, I was Kim Jin, director of Prav Trader Co., Ltd. One Top. Thank you.

◇Kim Jin: Thank you.