Lee Kwang-hee, a 36-year-old associate at Korea Investment & Securities, achieved a 25.6% return and 3rd place in the H2 2025 Hankyung Star Wars competition. Lee advocates holding semiconductor stocks unconditionally while targeting overlooked stocks showing volume surges after price drops. He believes the current semiconductor rally is structurally different from the COVID-era cycle due to global big tech leadership rather than temporary consumption rebounds. Lee transitioned to the securities industry in 2018 after working at an education company, joining Korea Investment & Securities in December 2018 following one year of preparation.
Lee Identifies Overlooked Stocks Through Volume Surge Analysis
Lee monitors where market capital flows and pays particular attention when stocks showing significant price declines produce large-volume bullish candles. He explained that such patterns on previously overlooked stocks may signal emerging market interest. Lee examines financial statements and news to identify reasons for the volume surge. He emphasized that studying with colleagues who share an interest in stocks helped identify industries and stocks the market might favor. Lee cited SK Eternix as a representative example, noting the stock gained attention due to the Iran conflict despite already posting strong earnings.
Korea Investment Associate Recommends Holding Samsung Electronics and SK Hynix
Lee stated that semiconductors must be held unconditionally despite recent corrections. He noted that finding stocks in Korea with comparable profitability and valuation appeal to Samsung Electronics and SK Hynix is difficult. Lee observed that rising interest rates due to war have increased capital concentration in semiconductors with confirmed earnings. He added that the current rally appears more structural than the COVID-era cycle because global big tech companies are leading the market rather than revenge consumption driving demand. Lee believes the bull market may last longer than the COVID-era semiconductor boom.
Lee Cites SK Eternix and Consumer Goods Stocks as Recent Focus Areas
Beyond semiconductors, Lee focuses on consumer goods and export-oriented stocks. He searches for companies with continuously improving earnings that have declined due to capital flowing into semiconductors. Lee recently watched D&D Pharmatech, which fell despite positive clinical results due to supply-demand issues, YG-1, which may benefit from China's tungsten export ban, and Sama Aluminum, which secured new sales channels. Lee stated he concentrates on growth stocks with structural momentum where growth is proven by actual earnings numbers, noting that market-beating returns ultimately come from structural growth stocks leading the era rather than undervalued value stocks.
FST Investment Delivered 300% Return Over Six-Month Period
Lee identified FST, a semiconductor pellicle manufacturer, as his most successful investment. He studied the stock deeply for the first time and believed pellicle importance would grow as semiconductor processes become increasingly fine. Lee held the position for six months to one year and recorded approximately 300% returns. He cited Lokit Healthcare as a disappointing case, noting the stock delivered large gains but subsequently dropped sharply due to Samchundang Pharm issues, teaching him the importance of stop-losses and selling discipline. Lee stated he lacks sufficient experience to establish special principles but approaches investment by avoiding emotion-driven trades. He cautioned about interest rate risks under new Fed Chair Kevin Warsh, noting that rate increases triggered market declines in 2022.
FAQ
What return did Lee Kwang-hee achieve in the H2 2025 Hankyung Star Wars competition?
Lee Kwang-hee achieved a 25.6% return and finished in 3rd place in the H2 2025 Hankyung Star Wars competition alongside colleague Hong Kyung-min at Korea Investment & Securities.
Why does Lee recommend holding semiconductor stocks unconditionally?
Lee stated that Samsung Electronics and SK Hynix offer profitability and valuation appeal that is difficult to find elsewhere in Korea. He believes the current semiconductor rally is structurally different from the COVID-era cycle because global big tech companies are driving demand rather than temporary consumption rebounds, suggesting the bull market may last longer.
Which stocks did Lee cite as recent investment focuses beyond semiconductors?
Lee recently focused on D&D Pharmatech, which declined despite positive clinical results, YG-1, which may benefit from China's tungsten export ban, and Sama Aluminum, which secured new sales channels. He also cited SK Eternix as a stock that gained attention due to the Iran conflict despite strong earnings.
