Back in the summer of 2023
the Korean stock market experienced an extraordinary period driven by the “EV Battery” sector.
Companies like EcoPro, EcoPro BM, POSCO Holdings, L&F, Kumyang, and LG Energy Solution became the stars of the market.
For those unfamiliar with the Korean market, let me provide some context: The EV battery sector became a massive speculative bubble.
Investors aggressively sold off blue-chip stocks within the KOSPI 200 to pour all their capital into these battery-related names and the broader battery supply chain.
It was a period of extreme market decoupling.
Even when there were negative external factors—such as a falling broader index or bad news from overseas—these battery stocks simply shrugged them off.
They would dip momentarily, only to bounce back even stronger.
There were many days when the vast majority of the market was falling, but these specific stocks single-handedly dragged the entire index upward.
In July 2023, several ETFs tracking this sector were launched.
Shortly after, the momentum died, and a sharp correction began.
Today, many of these stocks are still struggling to reclaim their previous highs, and some face the risk of being delisted.
The New Trend: The 2026 IT Rally
Fast forward to the first half of 2026. The market narrative has shifted entirely.
Now, large-cap IT stocks (led by Samsung Electronics and SK Hynix) are driving the indices.
Just as investors did back in 2023, traders are selling off KOSDAQ 150 stocks to buy into the IT rally.
Because of this rotation, the KOSDAQ 150 index is finding it very difficult to gain any meaningful traction.
Similar to the EV battery frenzy, these IT stocks currently ignore negative overseas news.
While they sometimes show volatility at the Market Open, they consistently show Strong Buying towards the end of the trading session.
Furthermore, at the end of May 2026, leverage ETFs tracking Samsung Electronics and SK Hynix were launched.
Only time will tell if this marks a market top, but many are arguing that “this time is different.”
Expectation vs Reality
The common argument is that the 2023 rally was driven purely by hype (expectations), whereas the current 2026 rally is driven by actual earnings.
No one knows exactly what will happen next.
In my view, as of today (June 19, 2026), the rise has been largely fueled by expectations, meaning there is still potential for further upside.
However, once this momentum fades, we should be prepared for a deep or prolonged bear market.
If the companies continue to deliver strong earnings, I believe that even if there is a correction, they will eventually break through their current highs.
Unlike the 2023 EV battery stocks, which never reached their previous peak, the presence of solid earnings provides a foundation.
Even if the price inflated by hype settles down, strong fundamentals should act as a floor to support the stock price.
