Citi has released its latest set of preferred stock picks in South Korea, identifying companies it views as likely beneficiaries of expanding AI infrastructure, persistent semiconductor demand and shifts in domestic consumption. The bank's selections cut across technology, industrial, retail and manufacturing sectors and spotlight firms with exposure to AI-related capex and changing market dynamics.
The names singled out by Citi include established chip makers and equipment suppliers, industrial and heavy-equipment producers, consumer-facing retailers and specialty manufacturers. Below are the firms named and the rationale Citi provided for each pick:
- Samsung Electronics - Citi stays constructive on the memory-chip heavyweight, pointing to continued long-term semiconductor demand driven by AI inference workloads and by the trend toward more highly customized chips built for particular applications.
- Eugene Technology - The brokerage expects the semiconductor equipment maker to gain from rising investment in advanced chip manufacturing as demand tied to AI accelerates.
- Doosan - Citi anticipates the company will benefit from secular growth in AI-related data center investments as well as from broader demand for industrial equipment connected to the technology cycle.
- ISC - The chip-testing socket manufacturer is expected to see increased demand as semiconductors become more customized and AI infrastructure continues to expand.
- Hyundai Department Store - The retailer earns a spot on Citi's list on the back of solid same-store sales growth, a relatively rational competitive environment in the duty-free shop segment and signs that Zinus has reached a bottoming phase.
- Hankook Tire - Citi highlights the tire maker for potential price increases to help offset raw-material input cost pressure, for a long-term growth opportunity in the United States and for what it views as valuation appeal tied to a turnaround in Hanon System.
- PharmaResearch - The firm is expected to draw benefits from consumption uplift associated with a wealth-effect and from rising per-visitor spending driven by continued growth in foreign inbound traffic to Korea.
- Hyosung Heavy - The industrial equipment producer is supported by its unique capability to produce 765kV transformers in the United States and by a trend of rising average selling prices for high-voltage transformers amid supply shortages.
- Kangwon Land - Citi features the casino operator as the only gambling venue accessible to local players within South Korea.
Citi's compilation brings together companies linked to multiple threads of demand: AI-related infrastructure and chip customization underpin the technology and equipment names, while domestic retail performance and inbound tourism dynamics support picks in the consumer and service segments. The list reflects a cross-sector approach that emphasizes exposure to AI-driven capex, semiconductor industry cycles and shifting consumption patterns at home.
Investors tracking these names should note the varied drivers cited by Citi: semiconductors and related equipment are tied to AI inference workloads and chip customization; industrials are linked to data center buildouts and high-voltage equipment demand; and retailers and specialized service providers stand to benefit from domestic spending trends and inbound visitor spending.
This article summarizes Citi's selected South Korea stock picks and the specific reasons the bank assigned to each company. The coverage spans technology, industrial, retail and manufacturing sectors and is based on Citi's stated views about demand trends and company positioning.