Huatai Securities says KOSPI's >20% pullback from the June 19 peak through July
10 was not driven by fundamentals; FactSet consensus EPS for 2026E and 2027E
were revised up 3.15% and 6.05% over that period. The current pressure stems
from high index concentration and leverage, which raise volatility; marginal
tightening in USD liquidity and a tougher Korean regulatory stance on leveraged
trading can structurally amplify even small moves. Near-term risks include
product redemption pressure and the implementation of regulatory measures. Over
the medium-to-long term, KOSPI's direction still depends on industry
fundamentals.
