AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Ryu Yuna
Ryu Yuna류윤아
ReporterFinancial Supervisory Service (FSS) & finance, capital markets, Southeast Asian affairs
Yuna Ryu covers finance, capital markets and Southeast Asian affairs.
She is drawn to the questions that numbers raise and the stories that data alone cannot answer.
Prior to journalism, she worked at Hyundai Motor Company and the Singapore Chamber of Commerce, focusing on business strategy and international affairs. She has also hosted diplomatic receptions and international conferences as an MC.

Ryu holds a master's degree in Media and Communication from Korea University, where her research focused on neuroscience-based studies of media effects. "Beyond every statistic is a human story waiting to be heard."
Latest by Ryu Yuna
  • KOSPI leads Asian retreat on oil jitters, capping sidecar-ridden week
    KOSPI leads Asian retreat on oil jitters, capping sidecar-ridden week SEOUL, July 24 (AJP)— South Korean stocks suffered another sharp selloff Friday as surging oil prices driven by escalating Middle East tensions and mounting interest-rate concerns fueled broad risk aversion, sending both the KOSPI and KOSDAQ into sell-side sidecars for a fifth consecutive trading session. The benchmark KOSPI closed at 6,690.62, down 5.72 percent, and the junior KOSDAQ fell 5.32 percent, to 748.22, as foreign and institutional investors accelerated selling despite heavy buying by retail investors. The plunge followed another weak session on Wall Street overnight, where technology shares came under pressure and rising oil prices added to concerns over the global inflation outlook. Samsung Electronics and SK hynix bore the brunt of the selloff as foreign investors rapidly unwound positions in the two semiconductor heavyweights. Samsung Electronics tumbled 7.59 percent to 249,500 won, while SK hynix dropped 8.34 percent to 1,759,000 won. Foreign investors dumped a net 1.76 trillion won worth of SK hynix shares and 873 billion won of Samsung Electronics, while institutions also emerged as the largest sellers of both companies, offloading 867.3 billion won and 858.8 billion won, respectively. The SK Group was also in focus after the Seoul High Court largely upheld its revised divorce ruling ordering Chairman Chey Tae-won to pay former wife Roh Soh-yeong 944 billion won in the property settlement. SK Square fell 9.17 percent amid the broader market selloff. Selling spread across other large-cap technology and cyclical names. Samsung Electronics preferred shares lost 7.33 percent to 177,100 won, Samsung Electro-Mechanics fell 8.43 percent to 1,326,000 won, Hyundai Motor declined 7.18 percent to 401,000 won, and LG Energy Solution slipped 5.32 percent to 329,500 won. Financial shares also weakened, with Samsung Life Insurance falling 3.49 percent and KB Financial losing 2.72 percent, while Samsung C&T declined 5.00 percent. Among industrials, HD Hyundai Heavy Industries dropped 2.51 percent, and Kia slumped 12.88 percent, making it one of the day's biggest losers among blue chips. Defensive buying was limited. Samsung Biologics climbed 10.08 percent to 1,518,000 won, while Hanwha Aerospace gained 2.19 percent and Shinhan Financial edged up 0.58 percent. The weakness was equally pronounced on the junior KOSDAQ market. Among heavyweights, HLB was the lone gainer, rising 4.33 percent to 31,300 won. Biotechnology company Alteogen slipped 1.96 percent to 300,500 won, while battery materials makers EcoPro and EcoPro BM fell 7.35 percent and 8.38 percent, respectively. Drug developer LegoChem Biosciences tumbled 17.62 percent, semiconductor equipment makers Jusung Engineering and PSK dropped 13.97 percent and 8.34 percent, respectively, while semiconductor equipment supplier Wonik IPS lost 11.30 percent. Precision parts maker Leeno Industrial declined 7.71 percent and biotech firm ABL Bio edged down 2.56 percent. The Korean won, however, was broadly steady, with the dollar trading at 1,464.50 won, compared with 1,466.8 won in the previous session. The market rout came as investors grappled with a deteriorating macroeconomic outlook. Brent crude climbed back toward $100 a barrel and the yield on the benchmark U.S. 10-year Treasury note rose above 4.7 percent, reinforcing concerns that higher energy prices could keep inflation elevated and delay monetary easing. Adding to the cautious mood, Alphabet shares fell 6.89 percent after the company unveiled a sharply higher AI spending plan despite beating quarterly revenue estimates. The selloff was mirrored across regional markets. Japan's Nikkei 225 dropped 2.79 percent to 64,572.00, Hong Kong's Hang Seng Index declined 1.16 percent to 24,919.50 and China's Shanghai Composite fell 1.61 percent to 3,814.20. 2026-07-24 17:30:50
  • AI boom rewrites Happy Forever in Koreas biggest divorce battle
    AI boom rewrites "Happy Forever" in Korea's biggest divorce battle SEOUL, July 24 (AJP) — A handmade birthday poster once wished SK Group Chairman Chey Tae-won and Roh Soh-yeong "Happy Forever." Nearly four decades later, their marriage has ended in a 944 billion won ($642 million) property settlement shaped not only by family history and corporate succession, but also by an artificial intelligence boom that transformed the value of Chey's fortune. The Seoul High Court on Friday largely upheld its earlier landmark ruling in what has become known as South Korea's "divorce of the century," ordering Chey to pay Roh 944 billion won after reducing the property division from the 1.38 trillion won awarded in the previous appellate decision. The court reaffirmed that Chey's SK Inc. shares remain marital property subject to division while excluding 30 billion won linked to former President Roh Tae-woo, the ex's late father, from calculating her legal contribution, in line with last year's Supreme Court ruling. Yet the retrial became about far more than correcting an accounting issue. Between the original appeal and Friday's judgment, SK Inc.'s value surged alongside the global artificial intelligence rally as SK hynix emerged as one of Nvidia's most important suppliers of high-bandwidth memory chips. The judges directly addressed that extraordinary appreciation. "The respondent's share price rose sharply after the close of arguments in the previous appellate proceedings," the court said in an explanation released after the ruling. Rather than simply updating the valuation to reflect today's much higher market price, however, the court struck a middle ground. "The increase cannot be regarded as having been unaffected by the respondent's managerial contribution," it said. The judges concluded that allowing either spouse alone to capture gains or losses after the marriage had effectively ended would undermine the purpose of equitable property division. "If profits or losses arising from the disposition of shares after judicial divorce are attributed only to one spouse, it would not accord with the purpose of fairly liquidating and dividing marital property," the court said. Instead, the court kept the valuation date at the close of arguments in the original appellate proceedings but reflected the subsequent surge by adjusting the division ratio itself. It awarded Roh one-third of the marital estate while allowing Chey to retain the remaining two-thirds. "The substantial rise in the respondent's share price after the previous appeal is taken into account in determining the division ratio," the court wrote, adding that the appreciation also reflected "the respondent's managerial contribution." The judges further ruled that Chey should retain ownership of his SK Inc. shares because they underpin management control of South Korea's second-largest conglomerate. "The respondent shall continue to hold the shares, while the portion lacking in the applicant's share shall be compensated in cash." That leaves Chey facing a cash obligation of 944 billion won plus statutory interest after the judgment becomes final. AI turns domestic divorce into global corporate case The litigation has attracted attention far beyond South Korea because it unfolded alongside one of the biggest wealth creations in modern semiconductor history. SK hynix has become one of the world's largest beneficiaries of the AI boom through its dominance in high-bandwidth memory chips powering Nvidia's AI accelerators. This month the chipmaker raised about $26.5 billion through the largest U.S. equity offering ever completed by a foreign issuer. Its rise substantially increased the value of SK Inc., the holding company through which Chey controls the sprawling SK Group. Even after Friday's reduced award, Chey still faces nearly 1 trillion won in cash payments should the ruling stand, renewing market attention on whether SK Group could accelerate asset sales, including the long-discussed disposal of silicon wafer maker SK Siltron. A marriage that mirrored corporate Korea Chey and Roh married in 1988, uniting one of South Korea's most influential business families with the daughter of then-President Roh Tae-woo. Their marriage survived financial crises, corporate restructurings and Chey's imprisonment. While behind bars following his conviction for corporate crimes, Chey cemented his control over SK's holding company through the merger of two SK affiliates, strengthening his grip over the conglomerate. During that period he also wrote a 229-page book, New Exploration, Social Enterprise, arguing that governments should create incentives encouraging companies to solve social problems. He received his second presidential pardon in August 2015. Later that year, he publicly announced his intention to divorce after revealing he had fathered a daughter with another woman, bringing one of South Korea's highest-profile marriages to a dramatic end. Chey's partner, Kim Hee-young, who uses the English name Chloe, later established the T&C Foundation in 2018, a nonprofit supporting scholarships and educational programs. The couple made their first official public appearance together the following year. At the event, Chey reflected publicly on his personal life. "I reflected on my past and realized that I had lived my life wrongly," he said, adding that he had come to see himself as "a coldhearted businessman with zero sympathy." Formal divorce proceedings began in 2017 after efforts to reach a settlement failed. From $50 million to nearly $1 billion The family court in 2022 ordered Chey to pay Roh 66.5 billion won in property division and 100 million won in alimony, concluding that much of his SK-related wealth could not be treated as jointly accumulated marital property. Roh appealed the ruling, calling the award "a denial of women's commitment to the household." Her persistence dramatically changed the outcome. The Seoul High Court in 2024 increased the property award to about 1.38 trillion won and raised alimony to 2 billion won, finding that Roh's decades of child-rearing, household responsibilities and public role as the spouse of a chaebol chairman had materially contributed to the formation, maintenance and growth of the marital estate, including the value of Chey's SK Inc. holdings. The Supreme Court later upheld the divorce and the 2 billion won alimony award but sent only the property division issue back for reconsideration, ruling that 30 billion won linked to former President Roh Tae-woo could not legally be counted as Roh's contribution to the marital estate. Friday's judgment reduced the payment to 944 billion won, but preserved the central legal principle. "The shares held by the respondent constitute property subject to division," the court said, finding that both spouses contributed to "the formation, maintenance and increase in value" of those assets during their marriage. For Roh, the legal battle ultimately transformed what began as a 66.5 billion won ($50 million) award into one of the largest divorce settlements ever ordered in Asia. Even after the retrial reduced the previous record award, she emerged entitled to nearly 1 trillion won, vindicating her long-running argument that decades devoted to supporting one of South Korea's largest business empires deserved far greater recognition than the trial court had initially granted. "Happy Forever" For all the attention on AI, corporate control and billion-dollar shareholdings, the case ultimately traces the unraveling of a marriage that lasted nearly four decades. Before leaving the family home after 37 years, Roh wrote that the hardest item to pack away was not jewelry or artwork but a handmade birthday poster created by their three children. The drawing showed their parents dressed as a bride and groom beneath hearts and stars. Written underneath were two words that, in retrospect, became the most poignant line in South Korea's biggest divorce battle: "Happy Forever." 2026-07-24 16:59:02
  • Court largely upholds landmark SK divorce ruling, cuts payout to 944 billion won
    Court largely upholds landmark SK divorce ruling, cuts payout to 944 billion won SEOUL, July 24 (AJP) — A South Korean appeals court on Friday largely reaffirmed its landmark ruling in the country's "divorce of the century," ordering SK Group Chairman Chey Tae-won to pay 944 billion won ($642 million) to his former wife, Roh Soh-yeong, after the Supreme Court sent the property division case back for retrial. The Seoul High Court's Family Division 1 reduced the property settlement from its previous 1.38 trillion won ruling but maintained that Roh is entitled to one of the largest divorce awards ever ordered in South Korea. The court did not explain its reasoning in open court. The decision follows the Supreme Court's ruling last October, which upheld the couple's divorce but ordered the Seoul High Court to reconsider only the property division after finding legal flaws in its earlier judgment. The top court left intact the previous 2 billion won alimony award. The long-running dispute has centered on whether Chey's stake in SK Inc., the holding company of South Korea's second-largest conglomerate, should be treated as marital property and how it should be valued. The case has attracted nationwide attention as the value of SK Inc.'s stake in AI memory chip leader SK hynix has soared during the years-long litigation. Chey, 65, and Roh, 65, have been embroiled in one of South Korea's most closely watched divorce battles since Roh sought a divorce and a share of the group's wealth after Chey publicly acknowledged an extramarital relationship. Following Friday's ruling, Chey's legal team said it was "sorry for causing public concern" and would decide whether to appeal again after reviewing the written judgment. The case is expected to return to the Supreme Court if Chey files a further appeal, extending a legal battle that has become a closely watched test of how South Korean courts treat inherited corporate wealth in divorce proceedings. 2026-07-24 14:23:31
  • SK to delist EV charging subsidiary ahead of planned sale
    SK to delist EV charging subsidiary ahead of planned sale SEOUL, July 24 (AJP) - SK Inc. launched a tender offer for minority shareholders of its electric vehicle charging subsidiary SK Signet as it moves to delist the company ahead of a planned sale, according to a company disclosure on Friday. SK is offering 8,200 won (US$5.90) per common share for up to 10.07 million shares, equivalent to 25.07 percent of the company's fully diluted share count. The tender offer runs from Friday through Aug. 24, with settlement scheduled for Aug. 26. The offer price is more than 20 percent above the stock's one-month average price, allowing shareholders to exit before the planned delisting and sale. SK currently owns 74.9 percent of the EV charger maker. According to a tender offer filing submitted to the Financial Supervisory Service (FSS), it plans to delist SK Signet if the tender offer secures enough shares. If not, SK said it will acquire the remaining shares through a comprehensive share exchange, making SK Signet a wholly owned subsidiary. The filing also disclosed that SK signed a non-binding memorandum of understanding (MOU) with a potential buyer on July 15 for a potential sale of the company. The deal has yet to be finalized. SK said the tender offer is intended not only to facilitate the sale process but also to provide minority shareholders with an opportunity to dispose of their holdings at a premium as part of its commitment to responsible management and shareholder protection. The offer price was based primarily on the company's one-month average share price, reflecting volatility in the KONEX market. The company aims to complete the delisting and conversion into a wholly owned subsidiary in the fourth quarter before completing the sale in the first quarter of next year. SK Signet, acquired by SK in 2021, manufactures fast and ultra-fast EV charging systems. The company has struggled as the global EV market slowed, swinging from a 3 billion won operating profit in 2022 to operating losses of 149.4 billion won in 2023, 242.8 billion won in 2024 and 48.4 billion won in 2025. 2026-07-24 10:41:53
  • Reality bites as Koreas retail investors struggle to escape leverage trap
    Reality bites as Korea's retail investors struggle to escape leverage trap SEOUL, July 23 (AJP) - Reality bites, and it takes a strong stomach to survive the KOSPI reality show, where billions of won in retail wealth disappear every trading day. Panic flashes across online stock forums. "Save me. I'm trapped at 22,000 won," one investor wrote, unsure whether to sell or keep holding a Samsung Electronics 2x leveraged exchange-traded fund bought near that price. The desperation reflects what is becoming a familiar pattern. According to the Korea Financial Investment Association, brokerages forcibly liquidated 59.6 billion won ($43 million) worth of shares purchased on margin Tuesday, the highest amount since July 10, when forced selling reached 81.6 billion won. It also marked the second consecutive session above 50 billion won after Monday's 52.8 billion won. Investor deposits — cash available in brokerage accounts for stock purchases — shrank by 5.83 trillion won in a single day to 106.69 trillion won. Outstanding margin loans, however, rose by 225.7 billion won to 33.56 trillion won, suggesting many retail investors remain willing to borrow despite mounting losses. The losers are leaving, but plenty more are waiting to buy the dip. Despite nearly 20 percent declines in both the KOSPI and KOSDAQ over the past month, speculative appetite remains remarkably resilient. Seoul's stock market, until recently the world's best-performing major equity market this year, has joined the ranks of the worst performers in July. The decline in investor deposits does not necessarily mean the speculative fever has broken. Deposits fall whenever investors buy stocks, withdraw cash or settle transactions. But when deposits decline while margin borrowing continues to rise, the pattern suggests demand is increasingly being financed with leverage rather than fresh cash. Yang Jun-sok, professor of economics at the Catholic University of Korea, said policymakers originally hoped to redirect speculative money away from real estate and into productive investment through the stock market. Instead, the rally exceeded expectations. "At first, the government encouraged people to invest in the stock market," Yang said. "Now it finds itself with another speculative force to calm." South Korea's benchmark KOSPI became the world's best-performing major stock index this year as the AI boom propelled Samsung Electronics and SK hynix sharply higher. At one point, the two chipmakers accounted for more than half of the benchmark's market capitalization, leaving the index unusually dependent on just two AI-related stocks while amplifying volatility through leveraged products tied to them. The government has since tightened controls on single-stock leveraged ETFs, suspending new listings and banning promotional campaigns until market conditions stabilize. Authorities also raised the minimum cash deposit for new or additional purchases to 30 million won from 10 million won and plan to increase the minimum trading unit from one share to 20 shares later this year while strengthening investor education, risk disclosures and safeguards against excessive price deviations. The measures are intended to slow new speculative demand rather than force existing investors to unwind their positions. Officials have also stopped short of delisting the products altogether, arguing that doing so could trigger another wave of selling. Presidential Policy Chief Kim Yong-beom said Sunday that delisting the funds was "hard to imagine" because of the market disruption it could cause. Instead, regulators are exploring ways to reduce volatility, including narrowing gaps between market prices and net asset values and easing selling pressure generated by ETF rebalancing near the market close. The government's challenge is to engineer what economists call an orderly deleveraging — reducing leverage gradually without triggering a disorderly cascade of forced liquidations. In theory, margin borrowing should slow, existing loans should be repaid over time and forced selling should steadily diminish. So far, the numbers suggest otherwise. Although outstanding margin loans remain below their June peak, they increased again in the latest session, indicating leveraged dip-buying remains alive. "There are still people saying stocks should be bought when they become cheaper," Yang said. "That means demand has not yet been suppressed." Evidence of investor distress is nevertheless mounting. The proportion of overdue margin purchases ending in forced liquidation climbed rapidly from 1.1 percent on July 16 to 4.6 percent Monday and 5.7 percent Tuesday. Under Korea's margin trading rules, investors who fail to settle purchases within two business days face automatic liquidation at the market opening, adding to selling pressure and increasing the likelihood of further margin calls. Yang said repeated warnings from regulators, academics and market professionals, along with mandatory investor education, have done little to curb speculative demand. "In the end, investors may have to learn the hard way," he said. "Unless they experience forced liquidations themselves, they will continue to view leveraged ETFs as useful and relatively safe. The market itself created that false sense of security." He recalled a legal dispute following the 1997 Asian financial crisis, when a Korean state-owned financial institution unsuccessfully sued a U.S. investment bank in New York after suffering losses on complex derivatives. The court rejected the institution's argument that it had not fully understood the products. "Fundamentally, investors have a responsibility to understand what they are buying, even if nobody explains it to them, especially when the product is complex," Yang said. "That is what Korean investors are now learning." Faster deleveraging before a bigger shock "Korea's market rose too far, too fast," Yang said. "Because the rally developed over such a short period, it may be better to reduce leverage quickly rather than drag the adjustment out." He argued Korea's AI-driven rally far outpaced comparable gains in the United States or Taiwan. While the S&P 500 reached repeated record highs over several years and Taiwan's benchmark remained broadly diversified despite TSMC's dominance, Korea's surge became unusually concentrated in a handful of AI-related shares. The Bank of Korea's first interest-rate increase since January 2023 — raising the policy rate to 2.75 percent on July 16 — is part of that effort to cool speculative excess. The government's dilemma is becoming increasingly clear. It wants to reduce leverage and curb speculation without triggering the kind of market collapse that would inflict heavy losses on millions of retail investors and undermine confidence in its broader capital-market agenda. 2026-07-23 16:31:23
  • South Koreans top longevity as well as suicide in OECD scale
    South Koreans top longevity as well as suicide in OECD scale SEOUL, July 23 (AJP)—South Koreans are among the world's longest-living people, but also have the highest suicide rate in the OECD. According to the Ministry of Health and Welfare's analysis of the OECD Health Statistics 2026 released Thursday, South Korea again recorded the highest suicide rate among OECD members in 2023. A total of 24.8 people per 100,000 died by suicide, more than double the OECD average of 10.9. Despite that grim statistic, the country ranked among the world's longest-lived nations. Life expectancy at birth for babies born in 2024 reached 83.7 years, 2.5 years above the OECD average of 81.2 years. Only Switzerland (84.2 years), Japan (84.1), Spain (84.0) and Sweden (83.8) ranked higher, placing South Korea among the world's longest-lived countries. South Korea also recorded relatively few deaths that could have been prevented through better public health measures or timely medical care. The rate stood at 139 deaths per 100,000 people, compared with the OECD average of 208.8. It has steadily improved over the past decade, falling from 194.0 in 2013 to 154.0 in 2018 and 139.0 in 2023. Koreans also visited doctors more frequently than people in any other OECD country. The average person made 17.9 visits a year, nearly 2.7 times the OECD average of 6.6. Healthcare spending, however, remained relatively modest. Current health expenditure accounted for 8.5 percent of GDP, below the OECD average of 9.3 percent. Annual healthcare spending reached about $5,098 per person in 2024, rising at an average annual rate of 8.5 percent over the past decade, outpacing the OECD average of 6.1 percent, partly due to the country’s rapidly aging population. At the same time, the country continued to face a shortage of doctors. It had 2.6 practicing doctors per 1,000 people, including practitioners of traditional Korean medicine, compared with the OECD average of 4.0. Only Costa Rica ranked lower. The total nursing workforce, including nurses and nursing assistants, stood at 9.8 per 1,000 people, slightly above the OECD average of 9.7. However, the number of registered nurses alone was 5.5 per 1,000, well below the OECD average of 8.8. Meanwhile, the smoking rate among people aged 15 and older was 13.2 percent, close to the OECD average of 12.7 percent, while annual alcohol consumption averaged 7.6 liters per person, below the OECD average of 8.3 liters. Weight-related indicators were comparatively favorable, although the trend is worsening. Korea had the second-lowest share of overweight and obese adults among OECD countries at 37.3 percent, behind only Japan's 25.3 percent and well below the OECD average of 58.7 percent. Still, the proportion has continued to climb, rising from 30.8 percent in 2014 to 33.7 percent in 2019 and 37.3 percent in 2024. 2026-07-23 16:04:30
  • Koreas SME loan delinquencies hit 11-year high
    Korea's SME loan delinquencies hit 11-year high SEOUL, July 23 (AJP) —South Korean small and medium-sized enterprises (SMEs) are falling behind on bank loan repayments at the fastest pace in 11 years, further exposing an economy heavily dependent on large chipmakers and a few big manufacturers. According to data released Wednesday by the Financial Supervisory Service (FSS), the delinquency ratio, the share of bank loans that were more than one month overdue, rose to 0.67 percent at the end of May from 0.61 percent in April and 0.64 percent a year earlier. It marked the highest level since October 2016, when the restructuring of major shipbuilders and shipping companies, including STX Offshore & Shipbuilding and Hanjin Shipping, pushed the large corporate loan delinquency rate to a record 2.67 percent. Banks recorded 3.3 trillion won ($2.4 billion) in newly delinquent loans during May, up from 2.9 trillion won the previous month, while they cleared 1.5 trillion won of bad loans through write-offs and sales, down from 1.6 trillion won a month earlier. The monthly new delinquency ratio also edged up to 0.13 percent from 0.12 percent in April. The deterioration was driven primarily by corporate borrowers. The delinquency ratio on corporate loans jumped to 0.84 percent from 0.74 percent a month earlier and 0.77 percent a year earlier. Among them, the ratio for SMEs rose to 1.00 percent from 0.90 percent a month earlier and 0.95 percent a year earlier, reaching its highest level since May 2015. Delinquencies among large corporations also climbed to 0.27 percent from 0.22 percent a month earlier and 0.15 percent a year earlier, the highest since September 2021. Within the SME sector, the delinquency ratio for incorporated SMEs increased to 1.11 percent from 0.98 percent a month earlier, while that for sole proprietors rose to 0.84 percent from 0.78 percent. The rise reflects prolonged weakness in domestic demand has made it harder for smaller businesses that rely heavily on local consumption to repay their loans. Another factor is the government's push to steer more bank lending toward businesses with growth potential rather than household borrowing. While the policy has expanded funding for these companies, some are taking longer to generate stable cash flow, making it harder for some companies to repay their loans. Kim Young-do, a senior researcher at the Korea Institute of Finance (KIF), said in a February report that banks could face growing pressure to expand lending to businesses while limiting the risks that come with it. While household loan delinquencies also rose from the previous month to 0.45 percent, they remained below the 0.47 percent recorded a year earlier, indicating that the overall increase was driven mainly by corporate borrowers. The FSS warned that delinquency rates could continue to rise as corporate lending expands and higher interest rates increase borrowing costs. The regulator said it would encourage banks to clean up bad loans and set aside more money to absorb potential losses. 2026-07-23 10:10:51
  • Foreign investors return lifts KOSPI ahead of key big tech earnings
    Foreign investors' return lifts KOSPI ahead of key big tech earnings SEOUL, July 22 (AJP) - Foreign investors extended their buying streak to a third consecutive session on Wednesday, helping lift the benchmark KOSPI higher despite caution among investors ahead of U.S. big tech earnings, which could determine whether the recent rally in artificial intelligence (AI)-related stocks can be sustained. The KOSPI rose 0.74 percent to close at 6,797.70 points after surging as much as 6 percent during the session, but gave up most of its gains in late trading. The junior KOSDAQ, meanwhile, fell 0.30 percent to 751.09. Foreign investors purchased 2.61 trillion won (US$1.9 billion) worth of KOSPI shares, bringing their net buying over the past three sessions to 3.46 trillion won, according to the Korea Exchange. The latest inflows mark a sharp turnaround in foreign investors’ stance after weeks of heavy selling. They dumped 19.8 trillion won during the week spanning late June and early July before trimming their net selling to 4.1 trillion won the following week. They then returned as net buyers last week and have further accelerated their purchases this week. The buying spree was concentrated in semiconductor and technology shares, with foreign investors purchasing a net 3.18 trillion won worth of electrical and electronics stocks over the past three trading sessions. Samsung Electronics, the key beneficiary of the inflows, rose 0.58 percent to close at 260,500 won, while SK hynix edged down 0.33 percent to 1,830,000 won as investors locked in profits following recent gains. Among other large-cap technology shares, Samsung Electro-Mechanics climbed 2.67 percent to 1,345,000 won and Samsung Electronics preferred shares gained 2.27 percent to 185,100 won, while Samsung Biologics fell 1.65 percent to 1,372,000 won. Automakers outperformed, with Hyundai Motor advancing 4.76 percent to 418,000 won and Hyundai Mobis jumping 6.99 percent to 513,000 won. Shipbuilder HD Hyundai Heavy Industries also gained 2.88 percent to 464,500 won, while Samsung C&T rose 3.06 percent to 354,000 won. On the junior KOSDAQ, robotics shares remained a bright spot despite the broader index's decline, as Samsung Electronics' newly established robotics division continued to fuel expectations for physical AI. Robotics software developer NRobotics jumped 29.89 percent to 2,390 won and service robot maker Hyulim Robot gained 9.70 percent to 6,900 won, while Lightron Fiber-Optic Devices rose 6.67 percent. The broader index, however, gave up its early gains as profit-taking spread across technology shares. The recent sell-off, which sent the KOSPI down about 20 percent this month, has made valuations more attractive, encouraging foreign investors to return to the market. Wall Street investment banks Morgan Stanley and JPMorgan have also struck a more optimistic tone on South Korean stocks. Morgan Stanley maintained its 9,000-point KOSPI target this week, saying the recent selloff has brought the market close to a bottom. JPMorgan also reaffirmed its 12-month target of 12,500, citing resilient corporate fundamentals and continued earnings momentum led by semiconductors. The positive outlook has also been driven by expectations that the AI-driven memory-chip upcycle will last longer than previously anticipated. Morgan Stanley said concerns over tighter memory supply in 2027 and 2028 have increased, describing the recent pullback in semiconductor shares a buying opportunity. A stabilizing South Korean won has also improved sentiment toward local assets by easing concerns over foreign capital outflows. The currency weakened slightly on Wednesday, however, with the dollar-won exchange rate rising to 1,479.50 in afternoon trading from 1,473.40 in the previous session. Still, analysts cautioned that whether foreign buying develops into a sustained trend will largely depend on earnings from U.S. technology giants, beginning with Alphabet after the U.S. market closes Wednesday. Alphabet, one of the world's four largest hyperscale cloud operators, previously projected capital spending of $180 billion to $190 billion this year, roughly double last year's level, as it expands AI infrastructure. If the company maintains or raises its spending outlook for next year, expectations for memory demand could strengthen further, providing another catalyst for Korean chip stocks. The cautious mood was reflected across Asia. Japan's Nikkei 225 erased an intraday gain of more than 2 percent to end 0.18 percent lower, while Taiwan's benchmark index rose 1.34 percent even as chipmaker TSMC slipped 0.41 percent. 2026-07-22 17:42:34
  • Busan fever sweeps Asia as Taiwanese lead new tourism boom
    Busan fever sweeps Asia as Taiwanese lead new tourism boom SEOUL, July 22 (AJP) - Busan has emerged as one of Asia’s hottest urban escapes, drawing travelers with its beaches, seafood, cinematic coastal scenery and the hometown appeal of BTS members Jimin and Jungkook. Chinese can now be heard across the southern port city, but increasingly it is not the Mandarin typically associated with mainland visitors. Taiwanese travelers have become one of Busan’s largest and fastest-growing visitor groups, helping transform the city from a secondary stop after Seoul into a destination in its own right. A new expression circulating on social media in Taiwan, mainland China and Japan captures the mood: “Busan sickness.” The phrase describes the lingering longing travelers feel after leaving the city. Once commonly associated with “Seoul sickness,” the post-trip nostalgia appears to have shifted southward as Busan gains a stronger identity among young Asian travelers. The boom is visible in the numbers. Busan welcomed 1.94 million foreign visitors in the first five months of 2026, up 40 percent from a year earlier and 78.4 percent from the same period in 2019, according to the Busan Tourism Organization’s latest data. The figure represented 22.2 percent of South Korea's 8.72 million inbound visitors during the period, meaning more than one in five foreign tourists visiting Korea traveled to Busan. While nationwide inbound tourism grew about 21 percent, Busan expanded at nearly twice that pace, cementing its status as one of Asia's fastest-rising urban tourism destinations. In May alone, the city received 460,683 international visitors, a 42.9 percent increase from a year earlier and 83.7 percent above the pre-pandemic level recorded in May 2019. The most striking change has come from Taiwan. Some 84,502 Taiwanese visitors traveled to Busan in May, up 46.3 percent from a year earlier and more than four times the May 2019 level. They accounted for 18.3 percent of all foreign visitors that month, nearly matching mainland Chinese travelers, who made up 19.4 percent. Over the January-May period, Taiwan was Busan’s largest single visitor market, with 375,322 arrivals and a 19.4 percent share. Mainland China followed with 359,981 visitors, or 18.6 percent, while Japan accounted for 233,685, or 12.1 percent. Mainland Chinese tourism is also recovering rapidly. Their arrivals nearly doubled from a year earlier to 89,275 in May and were almost three times the corresponding 2019 level. But the strong Taiwanese presence has changed the linguistic and cultural complexion of Busan’s tourism districts, particularly around Haeundae, Gwangalli and popular shopping areas. The city’s broader tourism surge has also translated into heavier spending. Foreign visitors spent 132.2 billion won ($95 million) in Busan in May, more than 2.5 times January’s 51.2 billion won, according to city data. Busan retained its position as South Korea’s second-largest destination for foreign tourist spending after Seoul for a third consecutive month. The appeal is also reflected in online sentiment. An analysis by Yanolja Research of 11,270 Chinese-language travel posts on Xiaohongshu and 18,694 reviews on Ctrip ranked Busan first in overall satisfaction among eight Asian cities, ahead of Tokyo and Singapore, with an average score of 4.723 out of five. Nature accounted for 38.2 percent of Busan-related mentions, followed by food at 23.8 percent. The finding suggests that the city’s appeal comes less from the sheer number of attractions than from the concentration and intensity of the experiences it offers. Busan’s first advantage is its highly photogenic landscape. Unlike the dense and relentlessly paced capital, Busan is increasingly perceived as a place that feels distinctly Korean but is less exhausting. Its geography places expansive coastlines beside urban neighborhoods, giving travelers beaches, cafés, markets and nightlife within a relatively compact area. Haeundae, Gwangalli and Gamcheon Culture Village have long appealed to social media users. More recently, attractions that let visitors experience the sea rather than merely view it have widened the city’s draw. The Haeundae Blueline Park beach train, promoted on Xiaohongshu as a “train running by the sea,” has become one of the city’s most recognizable images. Yacht tours, Skyline Luge and the X the Sky observatory have similarly helped turn Busan’s coastline into an activity-driven tourism product. Affordability is another strength. Local dishes such as pork-and-rice soup and milmyeon wheat noodles offer inexpensive alternatives to the increasingly costly dining scene in Seoul. That value has proved especially attractive to Taiwanese visitors, who can reach Busan on direct flights to Gimhae International Airport in about two hours. Travelers from parts of Japan enjoy similarly easy access, allowing Busan to function as a convenient weekend destination rather than an extension of a longer trip to Seoul. Yanolja Research said Busan was moving beyond its traditional image as a city of beaches and scenery by combining marine resources with transportation, observation decks, leisure activities and entertainment. The result, it said, was a new model of an “Asian experiential tourism city” built around the sea. The latest tourism figures suggest the model is working. Busan is no longer merely South Korea’s second city or a seaside add-on to Seoul. For a growing number of Asian travelers, it has become the Korean city they miss once they leave. 2026-07-22 16:08:54
  • S&P lifts Samsung outlook as AI memory boom gathers pace
    S&P lifts Samsung outlook as AI memory boom gathers pace SEOUL, July 22 (AJP) — Global ratings agency S&P Global Ratings has made its call on Samsung Electronics, betting that an AI-driven memory supercycle will drive at least two more years of strong earnings growth. The agency revised its outlook on the chipmaker to positive from stable, saying favorable industry conditions, including strong demand for high-bandwidth memory (HBM) and a prolonged supply shortage, are likely to support memory prices through 2027. "The positive outlook reflects our expectation that Samsung will strengthen its technological competitiveness, expand its market share in HBM and foundry businesses, and deliver solid operating performance over at least the next two years as the memory industry continues its structural growth," S&P said. The stock rose 3.86 percent to 269,000 won in Wednesday afternoon trading following the outlook. The optimism rests on a widening gap between AI demand and chip supply. The ratings agency expects Samsung to be among the biggest beneficiaries of the AI-driven memory supercycle, as investment in hyperscale data centers continues to outpace new semiconductor capacity. Some DDR5 chip prices have already risen three- to fourfold from a year earlier. It also sees memory shortages persisting for at least two more years as AI infrastructure spending continues to accelerate. The world's four largest hyperscale cloud operators are projected to quadruple capital spending from 2024 levels to around $1 trillion by 2028, with much of the money directed toward AI infrastructure, while meaningful supply growth is not expected before then. Reflecting that outlook, the agency forecasts Samsung's annual revenue will reach a record 683 trillion won ($495 billion) in 2026 before climbing to 821 trillion won in 2027. EBITDA, a widely used measure of operating earnings, is expected to surge from around 91 trillion won in 2025 to 393 trillion won in 2026 and 502 trillion won in 2027. The agency also expects this cycle to be less volatile than previous memory booms. As shortages persist, customers are increasingly seeking long-term supply agreements lasting three to five years. The growing use of customized memory products should also give chipmakers clearer order visibility and help protect earnings when the market eventually turns. Samsung's advances in HBM technology further reinforce that outlook. According to S&P, Samsung has advanced its HBM technology by pairing its latest 1c DRAM with a 4-nanometer base die in next-generation HBM4 chips, while largely fixing the production yield issues that affected its earlier HBM3E products. The agency also sees improving prospects for Samsung's foundry business. It said yields on its most advanced manufacturing processes are beginning to stabilize. At the same time, capacity constraints at Taiwan Semiconductor Manufacturing Co. could give Samsung an opportunity to win more orders as an alternative supplier. Backing that expansion, Samsung's annual capital expenditure is projected to rise from 52 trillion won in 2025 to between 81 trillion won and 84 trillion won over the next two years. Even so, S&P expects the balance sheet to remain resilient. Strong cash generation is forecast to lift free cash flow from 33 trillion won last year to 201 trillion won this year and 288 trillion won in 2027. 2026-07-22 14:34:48