[Edaily Reporter Shin Ha-yeon ] KOSDAQ stocks in the semiconductor materials, parts, and equipment (MPE) sector are undergoing a sharp correction amid concerns over a slowdown in artificial intelligence (AI) investment and a potential peak in the semiconductor industry. However, analysts suggest that now is the time to revisit heavily sold-off stocks, as major companies continue to post earnings growth and foreign investors have been buying even during the market decline.

According to MP Doctor on the 22nd, over the one-month period from the 19th of last month to today, SEOJIN SYSTEM CO., LTD(178320)fell 46.30% and EO Technics Co., Ltd.(039030)dropped 38.11%. ISC Co., LTD.(095340)and Soulbrain Co., Ltd.(357780)also fell 24.46% and 24.45%, respectively, while LEENO Industrial Inc(058470) slipped 22.46%. The average return for these five stocks was -31.16%, a figure that falls well below the KOSDAQ Index’s decline (-22.19%) over the same period.
In contrast, these companies’ first-quarter earnings this year showed clear signs of growth. LEENO Industrial Inc., a specialist in semiconductor test sockets and pins, reported revenue of 99.8 billion won and operating profit of 47.3 billion won, representing year-over-year increases of 27.2% and 35.4%, respectively. EO Technics Co., Ltd., a company specializing in laser processing equipment for semiconductors, also saw its revenue rise to 115.1 billion won and its operating profit to 29.8 billion won, representing increases of 35.7% and 105.8%, respectively. This performance is believed to have been driven by demand for laser equipment used in precision processing, fueled by the miniaturization of semiconductors and the expansion of advanced packaging technologies.

ISC Co., LTD.’s growth was even more pronounced. First-quarter revenue reached 68.3 billion won, a 115.5% increase, while operating profit rose 237.8% to 23.6 billion won. Growth was driven by an expanding share of high-value-added products, such as sockets for AI semiconductors and system-level testing (SLT). First-quarter AI-related revenue totaled 55.3 billion won, accounting for 81% of total revenue. Soulbrain Co., Ltd., a company specializing in chemical materials for semiconductor processes, saw revenue rise 25.9% to 263.8 billion won and operating profit increase 24.0% to 44.7 billion won. Sales of process materials in the semiconductor division—including etching solutions, cleaning solutions, and chemical-mechanical polishing (CMP) slurries—drove these results.

SEOJIN SYSTEM CO., LTD, meanwhile, posted an operating loss of 33 billion won, slipping into the red; however, since its semiconductor division—which accounts for 40% of total revenue—produces wafer transfer equipment and power supply units used in etching and deposition processes, analysts maintain that the company is well-positioned to benefit in the medium to long term from a recovery in semiconductor capital expenditures.

Analysts attribute the recent stock price decline largely to a deterioration in investment sentiment across the semiconductor sector as a whole, rather than to the fundamentals of individual companies. They explain that, in addition to concerns over the sustainability of AI infrastructure investment and delays in data center construction, a flood of profit-taking selling—centered on memory stocks that had surged sharply since the beginning of the year—led to a correction in materials, parts, and equipment stocks as well.

The securities industry also assesses the recent correction as a supply-and-demand adjustment following a sharp rise in stock prices, rather than a decline in AI demand. Kim Rok-ho, an analyst at Hana Securities, stated, “It is more reasonable to interpret this as a correction for companies whose stock prices rose rapidly and significantly, rather than a collapse in AI demand,” and predicted that stock prices would enter a recovery phase once short-term earnings and mid-term guidance are confirmed.

Above all, the fact that foreign investors continued to buy these stocks even during the correction phase is interpreted as evidence that expectations for their medium- to long-term growth—driven by AI semiconductors, advanced packaging, and expanded capital investment—remain valid.

Over the past month (June 19–July 21), foreign investors made net purchases of ISC Co., LTD. worth 366.3 billion won, as well as 307.5 billion won of LEENO Industrial Inc., 256.0 billion won of EO Technics Co., Ltd., 215.0 billion won of SEOJIN SYSTEM CO., LTD., and 171.3 billion won of Soulbrain Co., Ltd., respectively. Foreign investors’ net purchases of these five stocks totaled over 1.3 trillion won. Buying activity was particularly concentrated between late June and early July, when stock price declines accelerated. From the 30th of last month through the 3rd of this month, foreign investors made net purchases of around 200 billion won each in ISC Co., LTD., LEENO Industrial Inc., and EO Technics Co., Ltd.