South Korea's KOSPI Tumbles 34% in One Month, Yet Semiconductor Exports Show No Slowdown: iM Securities

According to iM Securities on July 29, South Korea's KOSPI index has declined 34% from its peak over roughly one month, a pullback the firm views as excessive given no weakening signals in semiconductor exports. Research analyst Park Sang-hyun noted that historically, major KOSPI corrections coincided with sharp drops in export growth, but this decline appears driven by supply-demand dynamics and uncertainty rather than fundamentals.

While Hyperscaler free cash flow (FCF) faces pressure from expanded capital expenditure, operating cash flow (OCF) continues to expand, limiting credit risks. Park stated that the top five Hyperscalers' OCF is expected to maintain roughly 20% growth this and next year, contrasting sharply with dot-com bubble comparisons where Cisco and Intel's OCF stalled or declined.