Aju Press - Aasia News Hub

Journalist

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

Stricter delisting rules rattle KOSDAQ-listed companies SEOUL, July 14 (AJP) - South Korea's tougher delisting rules are starting to shake up the stock market sooner than expected. Less than two weeks after the new delisting regulations took effect on the South Korean bourse earlier this month, several companies listed on the junior KOSDAQ have already been flagged as at risk of being placed on the Korea Exchange's watchlist. Under the regulations, which took effect July 1, companies whose market capitalization remains below 20 billion won (US$14.5 million) for 30 consecutive trading days must first issue a warning disclosure before they can be placed on the watchlist. As of Monday, nine companies had issued such warnings, with five of them already placed on the watchlist. To remain listed, those companies must keep their market capitalization above the threshold for at least 45 consecutive sessions within a window of 90 trading days. The regulations also strengthen monitoring of so-called "penny stocks," with companies whose shares close below 1,000 won for 30 consecutive sessions being placed on the watchlist. Many smaller companies are scrambling to remain listed under the tougher measures, with some turning to share buybacks, private placements and stake sales to boost their market values. Those efforts, however, have only fueled heightened volatility. Shares of KOSDAQ-listed electronics company Wellkeeps Hitech surged 71 percent over the past three sessions after it disclosed the risk of being placed on the watchlist, briefly pushing its market capitalization above 20 billion won last Friday. Its short-lived gains faded, with shares down 9.8 percent at 1,191 won as of early Tuesday afternoon. Anxiety has also spread to online forums for investors. On one online board on Naver, the country's largest portal, dedicated to the company, one user questioned whether the company had much of a business at all, leaving a post that read, "What does this company even do?" Another urged it to "learn from Hansung Enterprise," referring to the seafood company whose shares previously surged after retail investors piled in to help lift its market capitalization and save it from delisting. Gold&S, an education services company, also showed a similar pattern. After an initial rally following its disclosure, the stock fell for five straight trading sessions and was trading down 14.4 percent at 1,239 won as of early Tuesday afternoon. The sharp swings reflect a split between investors betting on a recovery and those avoiding stocks at risk of delisting. As delisting fears grow, shareholders of smaller listed companies are increasingly seeking advice from major law firms on measures such as reverse stock splits, capital reductions, potential lawsuits and ways to avoid legal disputes during delisting. Frustration among retail investors is also growing. Some blame companies for deteriorating to the brink of delisting, while others argue regulators introduced the stricter regulations too abruptly, leaving companies with little time to adjust. Debates have now moved beyond stock markets and online forums, with retail investors turning to the National Assembly’s petition platform to voice opposition to recent capital market reforms. A petition opposing tougher delisting rules had drawn nearly 3,000 signatures as of Tuesday, while another criticizing single-stock leveraged exchange-traded funds had gathered more than 31,000 signatures. They argue that shrinking liquidity and the abrupt implementation of stricter regulatory measures, which are intended to improve market health by weeding out vulnerable companies, are putting excessive pressure on smaller firms. 2026-07-14 16:41:01
Koreans raid retirement savings to chase the stock bull SEOUL, July 14 (AJP) — South Koreans are dipping into pension and long-term funds to join the stock market rush, risking their retirement nest eggs as they chase short-term returns. The number of Koreans cashing out private retirement savings plans jumped 62.7 percent in the first five months of the year from a year earlier, while fund redemptions rose 47.3 percent, according to data submitted by the Financial Supervisory Service (FSS) and the Korea Securities Depository (KSD) released Tuesday by Rep. Song Eon-seok of the main opposition People Power Party. The data suggests many retail investors pulled money out of long-term savings to ride the stock rally despite the risks of a volatile market. Between January and May, 72,477 Koreans pulled out of their private retirement savings plans, up 62.7 percent from 44,554 a year earlier. Payouts from those early withdrawals rose 54.8 percent to 1.74 trillion won ($1.25 billion). Withdrawals from investment funds also accelerated. The number of fund redemptions rose 47.3 percent from a year earlier to 1.81 million during the January-May period, while the amount withdrawn surged 146.1 percent to about 2,786 trillion won. Song argued that the figures reflect expectations of further gains in the stock market, prompting many households to move money out of retirement savings plans and investment funds in search of higher returns. But a recent market correction, fueled by heavier foreign selling, a weaker won and the rapid expansion of single-stock leveraged exchange-traded funds, has left many of those investors nursing losses. "Many people cashed out retirement savings plans and redeemed investment funds to enter the stock market, only to find themselves caught in rising volatility that is now putting their retirement savings at risk," Song said. He urged the government to focus on building a stable and predictable investment environment rather than pursuing short-term measures to boost the stock market. As of 10:09 a.m. Tuesday, the benchmark KOSPI had recovered some of Monday's losses, rising 2.22 percent to 6,958.02 after the previous session's massive 8.95 percent selloff. The junior KOSDAQ, however, slipped 0.93 percent to 791.91. 2026-07-14 10:37:08
AMCHAM takes Korean delegation to Washington for annual doorknock SEOUL, July 14 (AJP)-The American Chamber of Commerce in Korea (AMCHAM) is leading a delegation of Korean companies to Washington this week for its "K-Doorknock" program, aimed at helping businesses expand into the U.S. market and address a range of pending trade, investment and regulatory issues between the two countries. The initiative will make its debut during AMCHAM's annual Washington Doorknock mission, which runs from July 13 to 16 and brings business leaders together with U.S. policymakers to discuss issues affecting the U.S.-Korea economic relationship. K-Doorknock gives Korean companies investing in the United States a dedicated channel to engage directly with senior government officials, lawmakers and industry leaders as bilateral investment continues to grow. Led by AMCHAM Chairman and CEO James Kim, the delegation includes senior executives from Dunamu, Hangang Asset Management, HKI America Inc, Hyundai Motor Group, LG Group, and SoluM. Representatives from Bayer, Corning, Kim & Chang, Novelis and Pfizer are also joining the delegation. During the four-day visit, the delegation is scheduled to meet officials from the White House, the Office of the U.S. Trade Representative (USTR), the Department of Commerce, the Department of State and the National Security Council (NSC), as well as bipartisan members of Congress, the U.S. Chamber of Commerce, leading think tanks and policy experts. The visit comes amid evolving trade and regulatory issues, including a proposed 12.5 percent U.S. tariff on imports from South Korea under a Section 301 investigation into forced-labor import restrictions and broader discussions over the regulatory environment for companies operating in both markets. The chamber said the meetings will focus on strengthening bilateral investment, advancing regulatory cooperation, promoting innovation and deepening economic cooperation between the two countries. "Washington Doorknock has long been one of AMCHAM's defining initiatives and an important platform for strengthening economic ties between Korea and the United States," Kim said. "K-Doorknock represents the next evolution of that mission. As investment between our two countries continues to grow in both directions, AMCHAM is committed to supporting Korean companies expanding in the United States, just as we have long supported American companies doing business in Korea." Kim said the bilateral relationship has evolved beyond trade and is increasingly driven by two-way investment, advanced technology, resilient supply chains and closer public-private cooperation. "We look forward to engaging with our partners in Washington to advance practical solutions that strengthen competitiveness, encourage investment and create new opportunities for growth in both countries," he said. This year’s mission is part of AMCHAM’s Freedom 250 initiative marking the 250th anniversary of U.S. independence. The chamber plans to issue a post-mission summary after the delegation returns, outlining key meetings, policy discussions and potential areas of cooperation. 2026-07-14 09:29:40
Seoul bourse enters a technical bear phase SEOUL, July 14 (AJP) -South Korean stocks has entered a technical bear market on Tuesday after the benchmark KOSPI fell nearly 30 percent from its June peak above the 9,000 mark, as a brutal selloff in semiconductor shares deepened on renewed concerns that the artificial intelligence boom may be nearing an earnings peak. The benchmark KOSPI plunged 8.95 percent to close at 6,806.93, its lowest level in 48 trading sessions and the fourth-largest one-day point decline on record. The tech-heavy KOSDAQ lost 4.55 percent to 799.36. The selloff followed Monday's record collapse in SK hynix shares and spread overnight to Wall Street, where SK hynix's Nasdaq-listed American depositary receipts slid another 9.3 percent after their spectacular debut last Friday. The weakness rippled across the broader U.S. semiconductor sector, with Micron Technology falling 4.3 percent, Intel losing more than 6 percent, Sandisk tumbling 12.6 percent, while Nvidia, AMD and Marvell Technology also retreated as investors reassessed lofty AI valuations. The combined decline erased much of the optimism surrounding SK hynix's landmark U.S. listing, which had been expected to broaden the company's global investor base and reinforce Korea's position at the center of the AI memory supply chain. Instead, investors shifted their focus from the historic capital raising to slowing earnings momentum. SK hynix's Korean shares crashed 15.37 percent to 1.845 million won on Monday, marking the steepest one-day decline in the company's history after having already retreated sharply from their record high. The ADRs closed at $152.35 overnight, extending the correction after Friday's Nasdaq debut. Samsung Electronics also slid 10.7 percent in Seoul, leaving the country's two semiconductor bellwethers down roughly 32 percent and 38 percent, respectively, from their recent peaks. The correction officially pushed the KOSPI into what market convention defines as a technical bear market, with the index falling about 28 percent from its intraday high of 9,385.59 reached on June 19 to Tuesday's intraday low near 6,780. Trading was halted for 20 minutes after the Korea Exchange activated a market-wide circuit breaker at 1:28 p.m., the 13th such suspension in history. More strikingly, seven circuit breakers have now been triggered this year alone, reflecting unprecedented volatility fueled by concentrated semiconductor bets and the proliferation of single-stock leveraged exchange-traded funds. The unwind has been particularly painful for retail investors who had crowded into leveraged products tracking Samsung Electronics and SK hynix during this year's AI-driven rally. All 14 leveraged ETFs linked to the two companies fell to record lows. KODEX SK hynix Leverage ETF has now lost more than 66 percent from its late-June peak, while TIGER Samsung Electronics Leverage ETF has shed nearly 60 percent from its June high. Online investment communities were flooded with posts from individual investors reporting losses reaching hundreds of millions of won, with many lamenting that leveraged ETFs had become "gambling rather than investing." Market strategists said the correction reflects a combination of profit-taking after one of the world's strongest equity rallies, mounting concerns that semiconductor earnings may have peaked, and external shocks including renewed geopolitical tensions in the Middle East that lifted oil prices and global bond yields. Analysts also noted that the Korean market has become unusually dependent on a handful of AI-related stocks. According to Eugene Investment & Securities, Samsung Electronics and SK hynix accounted for more than 78 percent of the KOSPI's gains during the first half of the year. As a result, the correction in those two names has translated into market-wide volatility far exceeding that seen in Japan or Taiwan, where chip shares have also weakened but broader indexes have remained relatively resilient. Adding to investor caution are growing doubts over second-quarter earnings. Korea Investment & Securities recently lowered its operating profit forecasts for SK hynix by incorporating the impact of long-term supply agreements, trimming this year's and next year's earnings estimates by 9 percent and 11 percent, respectively. It now expects second-quarter operating profit to come in about 8 percent below market consensus. The ADR listing itself may also have contributed to the reversal. While SK hynix's U.S. shares initially surged after listing, analysts said much of the optimism had already been priced into the Seoul-listed shares before the debut, prompting investors to lock in profits once the long-anticipated event had passed. Despite the sharp correction, strategists stopped short of calling for a prolonged bear market. Many argued that valuation has become considerably more attractive after the rapid decline, although a sustained recovery will depend on whether upcoming earnings from major global chipmakers can restore confidence in AI demand. 2026-07-14 08:33:25
Financial watchdog urges asset managers to improve transparency SEOUL, July 13 (AJP) - Financial watchdog Financial Supervisory Service (FSS) on Monday urged asset managers to improve disclosure practices by providing clearer information on voting rights and strengthening internal controls. It also called for an end to misleading or exaggerated advertisements for exchange-traded fund (ETF) to better protect investors. In a meeting with the head of the Korea Financial Investment Association and CEOs of 20 asset management firms, FSS chief Lee Chan-jin stressed the need for greater transparency in how fund managers vote on corporate matters including board appointments, executive pay, mergers and dividend policies on behalf of investors. The meeting followed an FSS review, which found that many firms still used formulaic disclosures, giving investors little insight into how key company decisions were actually made. The review showed that asset managers have become more active in exercising shareholder voting rights. The voting rate for public and private funds has improved from 79.6 percent in 2024 to 91.6 percent in 2025 and 91.8 percent this year. The proportion of votes cast against management proposals also increased to 8.2 percent from 5.2 percent over the same period. Despite the improvement, the regulator said the quality of disclosures remained weak. Of the 285 asset managers reviewed this year, 121, or 42.4 percent, relied on generic explanations such as "little impact on shareholder interests" and "no harm to shareholder rights" instead of explaining the reasons behind their votes, making it difficult for investors to understand the basis for those decisions. Asset managers need to improve these voting procedures and provide clearer disclosures so investors can properly assess whether voting decisions are appropriate," Lee said. He also warned against misleading or exaggerated advertising in the country's fast-growing ETF market, saying investors often rely heavily on promotional materials when selecting products. Lee urged firms to ensure the accuracy of information through an internal review process, while working with liquidity providers to keep ETF market prices closely aligned with their net asset values. Industry participants also raised concerns over excessive product competition, saying the industry should voluntarily limit the launch of ETFs that closely replicate competitors’ products to create a healthier market. Lee also called on asset managers to channel more capital into promising companies and emerging industries, creating a cycle in which investment supports business growth and generates returns for investors. The FSS said it plans to hold workshops in July and August for asset managers responsible for related disclosures to share information and provide examples of practices. Meanwhile, Samsung Asset Management, NH-Amundi Asset Management and VIP Asset Management, three of the country's leading fund managers, were cited as examples of best practice in this year's review. 2026-07-13 18:00:31
Patriotic retail investors on buying spree to rescue beloved brands from delisting SEOUL, July 13 (AJP) - In a market usually driven by earnings, valuations and future prospects, some South Korean retail investors are making room for something more sentimental: trying to save the companies they grew up with. From a beloved penmaker to a well-known seafood brand, individual investors have rushed to buy shares of struggling companies facing possible delisting. Their buying spree has sent stock prices sharply higher as they try to save familiar brands from disappearing from the market. But the buying spree has also raised a broader question: Is it an act of loyalty to iconic South Korean companies or simply shareholders trying to avoid losses? Experts say it may be a mix of both, exposing an unintended effect of the Korea Exchange's tougher delisting rules. "Many investors are likely buying shares not only to support the company but also to protect their own investment from losses," said Lee Jeong-hwan, a professor of economics and finance at Hanyang University. The phenomenon emerged after the Korea Exchange earlier this month introduced tougher listing guidelines, under which companies listed on the main KOSPI market with shares trading below 1,000 won or a market capitalization under 30 billion won (US$21.7 million) can face delisting reviews. Rather than abandoning struggling companies, however, many individual investors have done the opposite - buying shares to push their market values above the threshold. The clearest example was Hansung Enterprise, a seafood processor best known for Crabme, one of South Korea's best-selling crab-flavored seafood products. Its shares surged 100 percent last week, making it the top-performing stock in the market. The stock climbed from 4,635 won to 8,460 won in just about a week, hitting the daily 30 percent price limit in two consecutive sessions on Thursday and Friday. The rally showed little sign of slowing on Monday. As of 2:40 p.m., shares were up 26.83 percent at 10,730 won after earlier touching the daily limit of 10,990 won. Hansung had been struggling with rising raw-material costs and weakening profitability, leaving the company at risk of delisting after its market capitalization slipped to 28.7 billion won, below the Korea Exchange's new requirement. The turnaround began not with an earnings surprise or a restructuring announcement, but with posts on online investor forums. Users shared stories about the company's long-running charitable activities, including hosting annual concerts for Korean War veterans for roughly 25 years, prompting some retail investors to buy its shares to support a company they believed deserved another chance. Within days, buying accelerated. Hansung's market capitalization climbed to 52.5 billion won, lifting the company back above the delisting threshold. A similar story unfolded at Monami, one of the country's best-known stationery brands, whose inexpensive ballpoint pens have been a fixture in classrooms, offices and homes for decades. The stock climbed 62 percent during the week, rising from 1,318 won on July 6 to 2,145 won after nearly hitting the daily trading limit on two consecutive sessions. The rally extended into Monday, with the shares up another 17.02 percent at 2,510 won as of 2:41 p.m., after touching an intraday high of 2,780 won, just below the daily price limit of 2,785 won. The rally also lifted its market capitalization from 24.9 billion won to 40.5 billion won, helping the company avoid the immediate risk of delisting. For many investors, it was about preserving a familiar brand. "I hardly ever go to stationery stores anymore, but I still bought a Monami three-color pen online not long ago," said Lee K.M., a South Korean IT professional in his 30s who studied in the U.S. "It's cheap, writes well and is one of those reliable Korean products that has always been around. I even carried Monami pens with me when I lived in the U.S." His sentiment appeared to resonate with many retail investors, several of whom described Monami as one of those familiar brands that had quietly endured for decades. Hansung thanked the unexpected support. "We sincerely appreciate the encouragement and support we have received through online communities and social media," the retailer said in a statement posted on its website, pledging to continue producing "quality food products" as it has since its founding in 1963. Song Jae-hwa, the CEO of Monami, also posted a handwritten message on the company's official Instagram account on July 10. "Your trust and support have given us tremendous strength during a time when Monami faced the possibility of delisting." The rallies quickly evolved into a broader debate across online investing communities over whether investors were preserving Korean brands or simply fueling another speculative trade. On Naver's stock message board, one investor wrote, "Monami is a patriotic company. Let's send it to 10,000 won by Liberation Day," while another described it as "a good company that even pays dividends." Others were far more skeptical. "There are limits to using patriotism to manipulate a stock," one investor wrote. Another investor wrote: "Delisting doesn't mean the company disappears — just buy its products instead," arguing that consumers should support the companies through purchases rather than by driving up their share prices. One investor summed up the debate: "Patriotism or not, I have to survive first." The episode revived memories of South Korea's 2019 boycott of Japanese products, when patriotic consumption spilled into the stock market. On July 4, 2019, Monami's shares surged 29.88 percent to close at 3,325 won, hitting the daily trading limit as investors bet consumers would shift away from Japanese stationery brands. The following day, Shinsung Tongsang, operator of homegrown casualwear brand Topten, jumped as much as 26.6 percent intraday on expectations that the boycott would also benefit domestic apparel makers at the expense of Japanese rivals such as Uniqlo. Unlike those gains, however, the latest rallies have been driven not by expectations of stronger sales but by investors' attempts to keep companies above the Korea Exchange's minimum market-capitalization requirement. Lee of Hanyang University, said the buying was a predictable response from shareholders facing potential losses, but he said the episode also raised questions about the exchange's new delisting rules. "If a brief rise in the share price is enough to lift a company back above the 30 billion won threshold, similar episodes could continue," he said. "That suggests the listing standards need to be refined." Yang Jun-sok, a professor of economics at the Catholic University of Korea, offered a more market-driven explanation. He said distressed companies often attract speculative buying from investors hoping for a last-minute rescue through an acquisition, government support or another turnaround. "In many cases, investors buy because they believe someone else will eventually rescue the company through an acquisition or financial support," Yang said. "Even if that doesn't happen, they may think the shares have already fallen so much that the downside is limited." He compared the episode to the 2021 GameStop frenzy in the U.S., when retail investors on Reddit's WallStreetBets forum piled into shares of the struggling video-game retailer. The buying was driven less by confidence in the company's business than by a desire to inflict losses on hedge funds that had heavily shorted the stock. The stock soared from $17.25 at the start of January to as high as $483 on Jan. 28, forcing many short sellers to buy back shares to limit their losses and driving prices even higher. "That wasn't a normal investment either," Yang said. "Many participants were motivated to punish short sellers for betting against the company." Whether the recent rallies reflect genuine support for familiar Korean brands or simply another speculative trade remains open to debate. One widely shared online post captured that skepticism with a sarcastic remark: "This is what the Korean stock market has come to — we're talking about pen stocks and imitation-crab-stick stocks while the rest of the world is talking about artificial intelligence." Regardless of investors' motives, however, the episode has already exposed an unexpected consequence of the country's tougher delisting regime. Rules intended to weed out weak companies instead encouraged some shareholders to rally around them. For now, the buying spree has bought both companies more time. Whether it represents a new form of patriotic investing or simply shareholders trying to protect themselves from losses remains open to debate. The bigger question is whether the momentum can continue once the initial excitement fades. 2026-07-13 15:51:30
KOSPI falls below 7,000 as chip stocks nosedive SEOUL, July 13 (AJP) - South Korean stocks plunged sharply on Monday afternoon, with the benchmark KOSPI falling below the 7,000 level for the first time in more than two months as heavy selling in semiconductor heavyweights triggered another market-wide selloff. As of 1:30 p.m., the KOSPI was trading at 6,880.97, down 7.96 percent, while the junior KOSDAQ fell 4.33 percent to 801.20. The KOSPI's drop below 7,000 marked its first breach of the level since May 4, extending a steep correction after the index had climbed to record highs earlier this year. Semiconductor heavyweights led the decline as investors continued to unwind positions following last week's listing of SK hynix's American depositary receipts (ADRs) and took profits after months of AI-driven gains. Samsung Electronics fell 9.21 percent to 258,750 won, while SK hynix plunged 13.35 percent to 1,889,000 won. SK Square tumbled 15.19 percent, Samsung Electro-Mechanics slumped 17.99 percent, and Samsung Electronics preferred shares dropped 9.01 percent. Samsung Life Insurance lost 6.46 percent. Not all blue chips declined. LG Energy Solution rose 1.23 percent, while KB Financial Group gained 0.70 percent, outperforming the broader market. Earlier in the session, the Korea Exchange activated a sell-side sidecar, the 35th such activation this year and the sixth this month. 2026-07-13 13:43:40
SK hynix ETF frenzy heads to Wall Street after record ADR debut SEOUL, July 13 (AJP) -A wave of leveraged exchange-traded funds tied to SK hynix's newly listed American depositary receipts is set to hit Wall Street this week, extending the AI chipmaker's explosive rise from South Korea's stock market to the world's largest financial market and raising fresh concerns that the trading frenzy which reshaped Seoul could spread to New York. At least six ETF products from U.S. issuers including Leverage Shares, ProShares, GraniteShares and CorgiFunds are scheduled to begin trading on July 13 and 14 U.S. time after SK hynix completed the largest U.S. listing ever by a foreign company. Most of the funds will offer either two-times leveraged exposure or inverse bets linked to the daily performance of SK hynix's Nasdaq-listed ADRs, allowing investors to magnify gains or profit from declines in one of the world's hottest artificial intelligence stocks. Leverage Shares plans to launch the 2x Long SK Hynix Daily ETF under ticker SKHX alongside the SKHZ short ETF, while ProShares will debut the leveraged SKHU fund. GraniteShares is preparing the leveraged SKUU and inverse SKDD products, while CorgiFunds and Direxion are also introducing leveraged vehicles. The launches follow SK hynix's blockbuster Nasdaq debut on Friday, when its ADRs surged 13.08 percent from the offering price to close at $168.49 after the company raised $26.5 billion in the second-largest equity offering in U.S. history behind only SpaceX. The speed with which ETF issuers have rushed to launch derivative products underscores the extraordinary investor appetite surrounding AI infrastructure stocks, particularly companies at the center of the high-bandwidth memory boom powering generative artificial intelligence. Single-stock leveraged ETFs have become a lucrative niche for fund managers in recent years, with products tied to Nvidia, Tesla, Alphabet and AMD attracting heavy trading volumes. Similar products tracking SpaceX appeared almost immediately after the aerospace company's U.S. listing, setting records for first-week ETF trading activity. Unlike conventional ETFs, leveraged funds seek to deliver a multiple of a stock's daily return by using swaps, futures and other derivatives. The products reset every trading day, making them short-term trading instruments rather than long-term investment vehicles. Their arrival on Wall Street also exports a phenomenon that has already transformed South Korea's equity market. Leveraged ETFs linked to SK hynix and Samsung Electronics have exploded in popularity since launching in Seoul in late May. Combined assets in the products have grown to more than 13 trillion won ($8.6 billion), while cumulative trading value has exceeded 212 trillion won in little more than a month. Semiconductor shares and related leveraged ETFs now account for more than 70 percent of total trading on Korea's main bourse, making the AI rally increasingly concentrated in just a handful of securities. Bank of Korea officials have warned that mandatory daily rebalancing by leveraged funds can amplify price swings as issuers are forced to buy rising stocks and sell falling ones to maintain target leverage. The central bank has cautioned that the products increase concentration risk and can reinforce momentum during periods of market stress. The Korea Exchange chairman has also publicly expressed regret over approving single-stock leveraged ETFs, arguing that they have contributed to excessive volatility in Samsung Electronics and SK hynix, while some lawmakers have called for the products to be abolished altogether. 2026-07-13 07:55:23
SK hynix ADR: An epic Korea Inc. drama from penny stock to blockbuster SEOUL, July 10 (AJP) - Few Korean stocks have rewarded investors—or punished them—as dramatically as SK hynix. The memory chipmaker, whose Nasdaq American depositary receipts became the largest U.S. equity offering ever by a foreign issuer this week, once traded at just 135 won, making it one of the cheapest technology shares on the Korea Exchange and a dismal reminder of Korea Inc.'s collapse in the aftermath of the Asian financial crisis. Its fortunes have ridden the semiconductor industry's roller-coaster boom-and-bust cycle ever since. Originally founded as Hyundai Electronics, the company entered the memory-chip business in 1983 and listed on the Korea Stock Exchange in December 1996 at 20,000 won per share. The stock briefly climbed to 49,600 won before the Asian financial crisis upended the country's corporate landscape and the global chip industry. A government-led restructuring forced Hyundai Electronics to acquire LG Semicon in 1999. The deal created a larger national memory champion but also saddled the company with heavy debt just as global DRAM prices collapsed. The breakup of Hyundai Group following the financial crisis added to the strain, pushing the chipmaker into a severe liquidity crunch. Renamed Hynix Semiconductor in 2001, the company entered creditor-led restructuring as mounting losses and debt pushed it toward collapse. By 2003, its shares had plunged to 135 won. Foreign and institutional investors largely abandoned the stock, leaving it dominated by short-term retail traders willing to gamble on its survival. The recovery was anything but immediate. Hynix returned to profitability in 2003 and exited creditor management in 2005, but another memory downturn and the 2008 global financial crisis dragged its shares back toward 5,000 won. The repeated reversals reinforced the market's view of memory chips as one of the technology industry's most punishingly cyclical businesses. The decisive turning point came in 2012, when SK Telecom acquired control of Hynix for about 3.4 trillion won, ending more than a decade of financial uncertainty and giving the company the resources to pursue long-term technological investments. The company was subsequently renamed SK hynix. The acquisition gave the chipmaker not only capital but also the patience to invest through another uncertain phase of the memory cycle. SK hynix poured money into advanced memory technologies, including high-bandwidth memory, years before artificial intelligence created explosive demand for the product. The company developed the world's first HBM in 2013, when the technology had few obvious commercial applications. Demand remained limited for years, but SK hynix continued investing while rivals treated the product as a niche segment. That persistence eventually reshaped the company. As Nvidia's AI accelerators became the backbone of generative artificial intelligence, HBM emerged as one of the world's most strategically important semiconductor products. SK hynix's early lead allowed it to become the dominant supplier just as AI infrastructure spending began to surge. Investors rewarded that technological advantage with one of the sharpest re-ratings ever seen in South Korea's stock market. SK hynix shares climbed from around 250,000 won in July 2025 to nearly 3 million won less than a year later, briefly making the company South Korea's most valuable listed corporation. Even after retreating to 2.186 million won as of Thursday, the stock remained almost tenfold higher than a year earlier, ranking it among the world's best-performing large-cap semiconductor shares. The rally unfolded in several waves. The shares spent much of the second half of 2025 below 500,000 won before breaking above 1 million won in April 2026. They crossed 2 million won the following month and approached the 3 million-won mark in June as optimism over record earnings, expanding AI infrastructure investment and the Nasdaq ADR offering intensified. The rise was not merely a surge in price. It also marked a fundamental reassessment of what kind of company SK hynix had become. According to KRX Data Marketplace, its price-to-earnings (PER) ratio climbed from 10.34 times on July 10, 2025, to a peak of 47.05 times in late June 2026 before easing to 35.81 times. The dramatic expansion reflected investors' growing willingness to value SK hynix less like a conventional memory producer and more like an essential supplier to the global AI industry. Foreign investors remained central to the rally. They owned approximately 50.01 percent of SK hynix shares as of July 10, according to Korea Exchange data. Although foreign ownership had declined from a peak of 56.25 percent in September 2025 as investors locked in gains, overseas shareholders still controlled about half of the company. Institutional participation also expanded through semiconductor-focused funds and single-stock leveraged exchange-traded funds, drawing a wider range of investors into a stock that had once been treated largely as a speculative turnaround bet. This week's Nasdaq ADR debut marked another milestone rather than the beginning of the transformation. For many investors, the listing represented the culmination of a comeback that began more than two decades ago, when Hynix was fighting simply to survive. The ADRs were priced at $149 each, raising approximately $26.5 billion in the largest U.S. equity offering ever by a foreign issuer. Each ADR represents one-tenth of a common share, with the offer priced at a slight premium to the company's Seoul-listed stock. The blockbuster deal offered a stark contrast to the company's darkest period. A chipmaker once reduced to a 135-won penny stock had returned to global capital markets as the world's leading AI memory supplier and the issuer of Wall Street's largest-ever foreign share sale. Whether the current AI boom proves to be another turn in the semiconductor cycle or the beginning of a structural shift remains one of the market's biggest debates. But few companies have traveled farther than SK hynix. Its journey from a debt-ridden casualty of Korea Inc.'s post-crisis collapse to one of the world's most valuable AI chipmakers has already secured its place as one of the most extraordinary corporate turnarounds in South Korean capital-market history. 2026-07-10 16:12:14
South Korea to reassess single-stock leveraged ETFs amid volatility concerns SEOUL, July 10 (AJP) - South Korea's newly-introduced single-stock leveraged exchange-traded funds (ETFs) are under scrutiny after those linked to the country’s largest two chipmakers suffered heavy losses, raising concerns about market volatility and investor protection. In a press briefing at Cheong Wa Dae on Friday, chief presidential secretary for policy Kim Yong-beom said that the government has been holding regular meetings with the country's top financial policymakers including officials from the Ministry of Finance and Economy, the Financial Services Commission, the Bank of Korea and the Financial Supervisory Service, to come up with measures. "We are continuously monitoring market conditions while considering whether any adjustments are needed," Kim told reporters, referring to the side effects of such ETF products since their market debut on May 27. "We will closely examine its impact on the market and whether any changes or measures are needed to protect investors," he added. His comments came amid growing debate over whether these products are amplifying volatility in South Korea's stock market, which has seen sharp ups and downs over the past year, driven largely by an unprecedented semiconductor rally. Unlike conventional ETFs that track a basket of stocks or a market index, single-stock leveraged ETFs seek to deliver twice the daily return of a single stock. In South Korea, these products are concentrated almost entirely on Samsung Electronics and SK hynix, allowing investors to amplify gains when share prices rise but magnifying losses when they decline. They faced growing scrutiny after sharp swings in the shares of the two chip giants resulted in steep losses for many retail investors. Calls for tighter oversight have also emerged from political circles, with lawmaker Ahn Cheol-soo of the main opposition People Power Party (PPP) urging earlier this week that the products be delisted, saying they had turned the country's stock market into a "casino" and describing them as a "policy failure." 2026-07-10 15:49:37