Market Optimism for "10,000 KOSPI" Fades as Samsung and SK Hynix Shares Plummet

[Anchor]

We continue our discussion with Kim Hye-min from the Business News Department.

Q. What is the outlook for the stock market?

[Reporter Kim Hye-min: Until recently, there were many analyses suggesting that the KOSPI could reach 10,000 points. However, brokerage firms are now successively lowering their target prices for Samsung Electronics and SK Hynix. On July 8, BNK Securities set the target price for SK Hynix at 1.85 million won, and Kiwoom Securities lowered its target price for Samsung Electronics from 430,000 won to 390,000 won. I meet with several experts every day to cover the stock market and ask for their opinions. We have seen instances where Samsung Electronics' stock price plummeted on the day it reported record-high earnings, and the KOSPI has shown significant volatility even on minor news. As a result, some experts are saying that they can no longer easily make short-term predictions, as stock prices can fluctuate depending on how expectations for future growth are reflected, even if memory demand remains solid.]

Q. What is the direction of measures for "leverage ETFs"?

[Reporter Kim Hye-min: Single-stock 2x leverage ETFs were actually prepared at the end of last year. At that time, the move was pushed to attract investment funds to the domestic market amid soaring won-dollar exchange rates. Back then, market volatility was not as high as it is now, and there were expectations that it would help stabilize the exchange rate to some extent. However, in the current situation where Samsung Electronics and SK Hynix account for well over half of the total market capitalization, the expected effects are absent, and the increased volatility is shaking the entire stock market. Today, July 13, all 14 single-stock leverage ETF products hit new lows due to the plunge in semiconductor stocks. In the case of SK Hynix, some products have fallen more than 66% from their peak, and Samsung Electronics products have also dropped by more than 60%. As volatility increases and individual investors have already suffered significant losses from leverage investments, financial authorities are preparing countermeasures. Inside and outside the market, it is expected that alternatives will emerge, such as raising the current 10 million won deposit requirement for leverage investments, limiting the investment ratio in high-risk products, or strengthening investor education. Today, Financial Supervisory Service Governor Lee Chan-jin held a meeting with CEOs of asset management companies, emphasizing the provision of accurate information on ETFs and self-regulation regarding exaggerated advertisements.]
※ Please note: This article was translated by AI and may contain errors.