Simon Woo, Head of South Korea Research at Bank of America Securities, has stated that long-term agreements by chip companies and improved shareholder returns could serve as the next catalysts to draw global capital back into South Korean technology stocks. In an interview on Monday, Woo noted that if long-term agreements materialize, the market would perceive Asian tech stocks as having reduced cyclicality and lower risk.
Meanwhile, higher dividend yields and share buyback programs are also expected to attract investors back to artificial intelligence-related stocks. Given the previous triple-digit growth base, the market has already priced in a slowdown in the semiconductor sector, though expectations remain positive. Long-term agreements are not only crucial for business operations but also hold significant importance for the strategic development of core technologies.
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