JP Morgan says Korean stocks look cheap. After the recent drop, the KOSPI is attractive on technicals and valuation, but foreign selling and flow imbalance continue, so there is no clear evidence of a floor yet. The bank keeps a positive medium-term view while warning volatility can persist short term. It sees opportunities outside semiconductors, in industrials, finance, and healthcare. The drop came from slower buybacks, weaker global AI sentiment, and technical selling. Foreign investors have been the main force. Since Oct. 2 they have net-sold about $3.29 billion of Samsung and about $6.72 billion of SK Hynix. The bank says foreigners are selling AI-related names across Asia, and the Korean net-selling flow has continued into October. Trend-following investors may also have cut their extreme net-long positions from the past year. The 14-day relative strength index is at its lowest since last April’s tariff selloff. Oversold names have risen sharply. The 12-month forward price-to-earnings ratio is at a historic low. Excluding memory, the KOSPI forward multiple is 8.4x, in the bottom 11% of its history. Price-to-book also looks low given governance improvements and rising return on equity. The bank says clear supply support for a bottom has not appeared yet. Won strength is drawing some macro interest and long-term buyers are interested, but actual inflows are more likely after volatility settles. Over six to twelve months it still sees fundamental strength in the AI ecosystem and Korean stocks, helped by AI investment, security and resilience spending, governance reform, and ample liquidity. Non-memory earnings estimates keep rising, and the correction outside memory has been smaller. The bank lists oversold or cheap names such as Hyundai Motor, Samsung Life, Shinhan Financial, LG Electronics, and SK Telecom, plus quality names that have fallen hard such as Hanwha Aerospace, Kia, and HD Hyundai Heavy. Near-term catalysts include memory earnings, shareholder return updates, lower volatility, and post-US midterm risk appetite. Flow balance and global sentiment recovery are the preconditions. #Kospi#

JP Morgan just dropped a strong note on Memory. Key takeaways: • Hyperscaler AI Capex: +85% in 2026, +70%+ in 2027 • Sustained shortage: 20% → 19% → 15% (2026-28) • HBM TAM: $64B → $160B → $280B • Micron already has >75% of FY27 output locked in via SCAs Memory Big 3 still trading at crazy low multiples. $MU $SKHY $SNDK $005930.KS #Memory# #HBM# #AI#