Why Korea’s chip-heavy stock market isn’t overheating

The South Korean benchmark Kospi's more-than 50 percent exposure to the country's top two chipmakers SK hynix and Samsung Electronics is not excessive when viewed against the sector's robust earnings outlook, according to Park Yeon-ju, head of research at Mirae Asset Securities. "This is not a case of a fundamentally flawed market dynamic. On the contrary, earnings of the two chipmakers have improved so dramatically that valuations still do not fully capture the extent of the fundamental gains,"

By The Korea Herald