KOSPI Breaks Through 7,000 Intraday... Is a Revaluation of Samsung and SK hynix Beginning?

Semiconductor Stocks Drive Wall Street Rally

Extreme Undervaluation Compared to TSMC and Micron

Momentum Building for Mid- to Long-term Revaluation

The KOSPI index rose for the fifth consecutive day, surpassing the 7,000-point mark during the session. This surge was driven by strong performance in U.S. semiconductor stocks spilling over to the domestic market. In addition, analyses pointing to extreme undervaluation of Samsung Electronics and SK hynix are fueling expectations for a stock price revaluation.

On the 14th, the status of the domestic stock market was displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul, as the KOSPI index recovered the 7,000-point level in early trading amid the strength of US technology stocks. It marks the first time in 15 trading days since the 24th of last month that the KOSPI index surpassed the 7,000-point level during the session. Photo by Kang Jin-hyung

On August 14, the KOSPI opened at 6,995.67, up 2.68% from the previous trading day, and as of 9:50 a.m., it was trading at 6,937.95, up 1.83%. The index even climbed as high as 7,010.86 in early trading, marking the first time in 15 trading days since July 24 that it has crossed the 7,000-point level. At the same time, the KOSDAQ was trading at 860.30, down 0.12%. Shares of Samsung Electronics and SK hynix rose by 0.75% and 5.34%, respectively.

Overnight, U.S. stock markets rose across the board as the July Producer Price Index (PPI) growth rate slowed. The S&P 500 closed at a record high of 7,798.99, up 50.49 points (0.65%) from the previous session. The Dow Jones Industrial Average finished at 53,839.99, up 69.72 points (0.13%), while the tech-heavy Nasdaq Composite closed at 26,803.03, up 214.54 points (0.81%).

Semiconductor companies led the advance. Memory chip maker SanDisk surged 13.7%. At its Investor Day event, SanDisk projected that its sales for fiscal years 2028 to 2030 would grow at a robust mid-to-high teens annual rate, driven by strong demand from the expansion of artificial intelligence (AI) infrastructure. Micron Technology and SK hynix’s American Depositary Receipts (ADR) also gained 4.23% and 7.29%, respectively.

Currently, Samsung Electronics and SK hynix have entered an undervalued range. According to KB Securities, the two companies’ estimated operating profits for next year are projected at 575 trillion won and 389 trillion won, respectively. However, as of the closing price on August 12, their price-earnings ratios (PER) are only 3.7 times and 3.2 times, respectively.

They are also extremely undervalued compared to global competitors. The combined estimated operating profits of both companies (641 trillion won) is five times that of Taiwan’s TSMC (139 trillion won), yet their market capitalizations are at similar levels. Micron also has a market capitalization that is 26% higher than SK hynix, even though SK hynix’s operating profit is twice that of Micron.

Kim Dongwon, a researcher at KB Securities, commented, “The new shareholder return policies to be announced soon by Samsung Electronics and SK hynix are expected to drive a revaluation of their valuations and a rise in share prices, similar to the case of TSMC. As the long-term supply and demand base strengthens, the revaluation of valuations will accelerate in earnest.”

This content was produced with the assistance of AI translation services.