Korean Stock Market Q3 Focus Shifts to Earnings Sustainability, Hana Securities Reports

According to Hana Securities, on July 27, analyst Kim Doo-eon released a report stating that third-quarter Korean stock market performance hinges less on earnings size than sustainability. Foreign investors made net purchases of 2.3 trillion won last week, and strong long-term contracts with major tech firms are improving cash flow visibility. Kim emphasized that memory companies protecting both price and market ecosystem will see lower valuations: "Supply shortages create earnings, but symbiosis creates valuation."

Micron's strategic customer commitment contracts (SCA), which lock in order volumes and cash flow floors, signal a shift from Samsung and SK Hynix's traditional long-term agreements (LTA), which only extended transaction periods. Kim noted SK Group Chairman Chey Tae-won's recent price comments reflect a strategy to sustain profitability through market expansion rather than maximizing single-quarter gains, protecting against chip inflation and new competitors.