[Securities Industry Tidbits]KB Securities Targets 'Ten Thousand Households' at Olympic Park Foreon

(Seoul=Yonhap Infomax) Ha Rin Song = Olympic Park Foreon, located in Dunchon-dong, Gangdong-gu, Seoul, has commenced large-scale move-ins this month, marking the largest apartment reconstruction project in South Korean history with a total of 12,032 units.

Thousands of affluent households, able to afford pre-sale prices in the 1 billion won ($770,000) range and transaction prices exceeding 2 billion won ($1.54 million), have moved in, rapidly elevating Dunchon-dong’s status to a new wealth hub in southeastern Seoul.

For securities firms, Olympic Park Foreon represents a lucrative opportunity to secure a robust client base, given its overwhelming number of households and high-income, high-asset residents.

KB Securities, which has been rapidly expanding its retail business, was quick to capitalize on this opportunity. At the end of last month, it relocated and expanded its Gangdong branch to the fourth floor of the Olympic Park Foreon shopping complex, upgrading it to the Dunchon Station PB Center.

On the 19th, KB Securities hosted an investment seminar featuring fund managers at the community center seminar room in Olympic Park Foreon’s third complex. The event was open to residents and clients, with approximately 70 seats filled on a first-come, first-served basis.

Speakers included not only KB Securities research analysts but also Cho Sang-hyun, Head of Equity at Hyundai Asset Management, Oh Joon-kyu, CEO of Hwangso Asset Management, and Hong Sung-chul, Head of Equity at Taurus Asset Management.

Reflecting the scale of Olympic Park Foreon, residents from a wide age range (30s to 70s) with investment interests attended, with additional chairs brought in to accommodate the crowd.

Attendees diligently took notes on the yellow booklets provided by KB Securities, capturing key points from each speaker.

“This Cycle Will Be Spectacular” – “SK Hynix Still Undervalued”

Speakers shared a positive outlook on the current KOSPI rally, highlighting semiconductors as a promising sector, with frequent mentions of SK Hynix Inc., South Korea’s second-largest chipmaker.

In the first session, Ha In-hwan, Senior Researcher at KB Securities, stated, “While external factors such as exchange rates may pose challenges, as pledged by the President, initiatives like the National Growth Fund could push the KOSPI to 5,000. Market corrections present buying opportunities,” expressing expectations for a year-end ‘Santa Rally’ starting mid-December.

He added, “South Korea has agreed to invest $20 billion annually through negotiations with the US, which may reduce domestic employment and consumption effects. This will intensify polarization between companies and individuals, so investors should focus on export-oriented firms in semiconductors, power, and shipbuilding that generate revenue overseas.”

Drawing parallels to Japan’s surge in foreign tourists amid yen weakness, he projected long-term growth for South Korea’s tourism industry.

In the second session, Cho, Head of Equities, addressed “The Outlook for the Korean Stock Market,” saying, “Liquidity unable to flow into real estate will move into virtual assets and equities. Whether the KOSPI reaches 5,000 or 6,000 is uncertain, but this cycle is likely to end on a strong note.”

He continued, “In the Trump 2.0 era next year, with GDP growth at 1.3% and a base rate of 2.0%, investors should seek companies with growth potential. Export-oriented industries such as semiconductors, shipbuilding, defense, nuclear power, and entertainment, which are less affected by US tariffs, are key.”

On SK Hynix, he remarked, “Some say it’s too expensive, but I still see it as undervalued,” confidently sharing his market outlook.

In the third session, Oh, CEO of Hwangso Asset Management and a former fund manager and full-time equity investor, introduced his firm’s three core investment principles: “We invest company funds just like client assets, concentrate on two to three promising industries, and pursue compound returns.”

Since its founding in 2019, Oh’s firm has achieved a 1,200% return based on a ‘growth investing’ strategy. He identified artificial intelligence (AI) as the most promising sector, stating, “The growth potential of semiconductors is limitless. I believe SK Hynix could reach a market cap of 1,000 trillion won ($770 billion).”

US Exceptionalism, AI Trends Continue – Income Portfolio Strategy for 1 Billion Won

Hong, who previously managed pension funds and has delivered tenfold returns on US funds for retail clients over the past six years, said, “The gap between the US and other countries is widening again, and there are no clear factors to shake US exceptionalism.”

He added, “While AI stocks are experiencing corrections, the equity market is more mature than in the 1990s, and this is not a period when unprofitable companies’ shares surge. It remains a favorable environment for investment.”

However, he cautioned, “If there are signs of a peak in the AI cycle, investors should swiftly move to cash. Inflation could unsettle markets in the second half, but from next year, there may be opportunities in sectors outside of AI.”

Finally, Seo Du-seok, Head of KB Asset Management, gave a lecture on selecting ETFs. For a portfolio generating an average pre-tax monthly income of 1.4 million won ($1,080) from a 100 million won ($77,000) investment, he recommended: 60% in RISE US Tech 100 Daily Fixed Covered Call, 30% in US 30-Year Treasury Covered Call, and 10% in Global Realty Income.

He advised, “When choosing a covered call ETF, check which stocks are held. The ETF should include stocks with upside potential.” (Securities Department, Ha Rin Song)

hrsong@yna.co.kr

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