Cathie Wood: Foreign capital outflow from Korean stocks is not due to fundamental deterioration; algorithmic trading has a greater impact, and semiconductor stocks have entered a buying range.

(1) According to Korean financial media ChosunBiz, “Cathie Wood” stated on the 16th, regarding the recent turbulence in the Korean stock market due to foreign capital sell-offs: “Foreign capital is not leaving because of worsening fundamentals. I believe that programmatic trading has a greater impact.” (2) Speaking about the sharp drop in Korean semiconductor stocks, she said: “Now is indeed an appropriate time to enter the buying range.” (3) When asked about the decisive reason for the outflow of foreign capital, Wood noted that in June this year, when memory chip stock prices peaked and then fell, the KRW/USD exchange rate also reached a historic high. (4) She believes this is not due to fundamental flaws in the market itself, but rather a combination of share price declines and exchange rate factors, resulting in a surge in mechanical programmatic trading. (5) Regarding the recent retracement of memory chip stocks, Wood believes this is a reaction to the previous rapid price surge: the unit price of memory chips rose too quickly, leading to a sharp decline in retail sales of electronic devices; this factor has already been reflected in the share price. (6) The Korea Kospi Index opened today with a drop of over 3%, then rebounded, and, at the time of writing, is slightly down.