Samsung Electro-Mechanics and Jusung Engineering led South Korean stocks in the first half with gains exceeding 600%, according to Korea Exchange data released on July 4. Samsung Electro-Mechanics rose 756.47% to top the KOSPI index while Jusung Engineering surged 625.63% to lead KOSDAQ, both driven by artificial intelligence sector momentum. Foreign investors net purchased 2.0384 trillion won of Samsung Electro-Mechanics during the period, the largest inflow among all listed companies. Securities firms attributed the outperformance to AI data center demand for multilayer ceramic capacitors (MLCC) and flip-chip ball grid array (FC-BGA) components. The results reflect broader market concentration in AI-related stocks amid limited liquidity and infrastructure investment themes.
Samsung Electro-Mechanics Tops KOSPI with 756.47% First-Half Gain
Samsung Electro-Mechanics recorded a 756.47% gain in the first half to lead all KOSPI-listed stocks, according to Korea Exchange. Samsung Electro-Mechanics preferred shares rose 585.34%, followed by Samhwa Capacitor (416.24%), Gaon Cable (409.96%), and Daewoo Engineering & Construction (393.19%). The performance exceeded semiconductor leaders Samsung Electronics (178.57%) and SK Hynix (307.07%) over the same period.
Foreign investors drove the rally by net purchasing 2.0384 trillion won of Samsung Electro-Mechanics, the largest amount among all listed companies during the first half. Foreign buying extended to Celltrion, Doosan Enerbility, APR, Doosan, and Hyundai Rotem in descending order of net purchase value.
Securities Firms Raise Samsung Electro-Mechanics Target Prices to 3 Million Won
Multiple securities firms raised Samsung Electro-Mechanics target prices to 3 million won in July. Hana Securities adjusted its target from 1.7 million won to 3 million won, NH Investment & Securities from 1.7 million won to 3 million won, Shinhan Investment Corp from 2 million won to 3 million won, iM Securities from 2.3 million won to 3 million won, and Meritz Securities from 2.8 million won to 3 million won.
Kim Min-kyung, researcher at Hana Securities, stated: "MLCC and FC-BGA supply shortages are intensifying centered on AI data center demand. Benefits from expanded demand for ultra-small high-capacity MLCC for data centers will concentrate on global top-tier companies." Kim added: "FC-BGA profitability is improving steeply with expanded network and server sales proportions and rising prices across all product lines. Embedded FC-BGA demand incorporating silicon capacitors and passive components is increasing, expanding high-profitability product sales proportions."
Financial data provider FnGuide reported Samsung Electro-Mechanics' Q2 consensus at 3.2895 trillion won in revenue (up 18.1% year-over-year) and 395.4 billion won in operating profit (up 85.6% year-over-year).
Jusung Engineering Leads KOSDAQ with 625.63% Surge
Jusung Engineering rose 625.63% to lead KOSDAQ-listed stocks in the first half. Daehan Fiber Optic (519.14%), GigaVice (510.16%), BL Pharmtech (442.88%), and PSK (431.44%) followed. Jusung Engineering entered the top five KOSDAQ companies by market capitalization after starting the year outside the top 50. The stock surged after the government announced its "Korea Great Leap Forward 3 Mega Projects."
BNK Investment Securities Maintains Hold Rating on Valuation Concerns
BNK Investment Securities maintained a hold rating on Jusung Engineering, citing valuation burden as a concern despite growth potential. Lee Min-hee, researcher at BNK Investment Securities, stated: "We expect Q2 revenue of 65.9 billion won, operating profit of 2.3 billion won, and operating profit margin of 3.5%. Performance was weak due to poor order activity last year but is gradually improving with Q4 last year as the bottom."
Lee added: "Semiconductor orders reached 108.5 billion won in Q1 last year. ChangXin Memory Technologies (CXMT) new fab investment orders have been proceeding since late Q1 this year. SK Hynix Cheongju site (M15X) centers on retrofit equipment but new equipment orders are expected to increase in the second half."
Analysts Affirm AI-Led Strategy for Second Half
Securities firms maintain that AI-led investment strategy remains valid for the second half. Kim Jong-min, chief researcher at Samsung Securities, stated: "Market attempts at rotation seeking alternatives due to short-term technical burden on leading stocks may appear intermittently, but the possibility of fundamental leadership change is extremely small. The key to second-half investment is not responding to short-term price fluctuations but coldly determining where this rally's destination lies."
Cho A-in, researcher at Samsung Securities, stated: "Recent semiconductor stock volatility is closer to a process of shaken investor sentiment amid mixed interpretations of the same phenomenon rather than new negative factors emerging. Samsung Electronics' Q2 preliminary results announcement scheduled next week will be an event that visibly shows this industry situation. If results above market expectations are confirmed, doubts about AI investment sustainability that recently expanded are highly likely to be partially alleviated."
FAQ
What stocks led Korean markets in the first half of 2026?
Samsung Electro-Mechanics rose 756.47% to lead KOSPI while Jusung Engineering gained 625.63% to top KOSDAQ in the first half, according to Korea Exchange data released on July 4.
Why did Samsung Electro-Mechanics surge in the first half?
Foreign investors net purchased 2.0384 trillion won of Samsung Electro-Mechanics, driven by AI data center demand for MLCC and FC-BGA components, according to securities firm analysts quoted in the source.
