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
  • Even government bonds can bite, South Koreas regulator warns
    Even government bonds can bite, South Korea's regulator warns SEOUL, July 06 (AJP) — South Korea's financial regulator on Monday warned that even government bonds, long regarded by many retail investors as one of the safest investments, can generate significant losses if interest rates rise. The Financial Supervisory Service (FSS) issued the warning as part of its latest investor education campaign on common investment disputes after complaints increased from investors who suffered unexpected losses after buying low-risk bonds, including Korean government bonds, on brokerage recommendations. The FSS said that while government bonds carry little default risk, their market value can fall when interest rates rise, meaning investors who sell before maturity may incur losses. A 30-year government bond with a face value of 10,000 won that pays a 3 percent annual interest rate could lose about 17 percent of its market value if market interest rates rise by one percentage point, it said. The FSS also urged investors to be cautious about buying long-term bonds, saying they should consider whether they may need access to their money before the bonds mature. Investors who want to preserve their principal or who may need cash for unexpected expenses should be particularly careful. "The longer a bond's maturity, the more its price will fluctuate as market interest rates change," it said. The regulator further cautioned investors against relying solely on sales representatives' interest-rate forecasts when making investment decisions. It noted that market interest rates do not always move in line with the central bank's policy rate, meaning bond prices can still fall even when the central bank cuts rates. The FSS also urged investors to compare prices before buying bonds directly from brokerages, as transaction costs and dealer spreads can make those bonds more expensive than similar ones traded on the Korea Exchange. Exchange-traded bonds may offer lower prices, although they can be harder to buy because of limited liquidity. "We will continue to provide timely guidance on investment risks and strengthen investor protection where necessary," the FSS said. 2026-07-06 17:41:56
  • Durability of Seouls bull questioned as leverage exceeds retail trade
    Durability of Seoul's bull questioned as leverage exceeds retail trade SEOUL, July 06 (AJP) — As the KOSPI correction enters a third week, retail investors remain the primary buffer against relentless foreign selling, but much of their firepower is borrowed, raising questions about the durability of Seoul's record-setting bull market. Outstanding margin loans and stock-backed lending averaged a record 61.98 trillion won ($39.8 billion) per trading day during the April-June quarter, exceeding the combined average daily trading value of 52.5 trillion won on the KOSPI and KOSDAQ over the same period, according to Korea Exchange (KRX) data. Outstanding margin loans climbed 15.9 percent from the first quarter to a record 35.94 trillion won, while stock-backed loans — borrowing secured against shares investors already owned — remained virtually unchanged at 25.97 trillion won. The divergence suggests investors were increasingly borrowing to finance new stock purchases rather than tapping existing holdings for liquidity. The surge in leverage coincided with one of the most extraordinary rallies in the history of South Korea's equity market. The benchmark KOSPI surged past the 5,000 level for the first time in January, broke above 6,000 in February, raced through both 7,000 and 8,000 in May and surpassed 9,000 for the first time in June. The KOSPI has since retreated to just above the 8,000 mark as of Monday after weeks of record foreign selling. The first-half rally was fueled by optimism surrounding artificial intelligence and South Korea's memory-chip industry, led by Samsung Electronics and SK hynix. As prices climbed rapidly, fear of missing out drew more money into the market while early investors locked in profits, producing increasingly sharp swings in share prices. The Korea Exchange said volatility interruption mechanisms, or VIs — temporary two-minute auctions triggered when individual stocks move too sharply — were activated 29,357 times during the first half of the year, the highest number ever recorded for a six-month period. The previous record of 24,401 came during the first half of 2020, when markets were rattled by the COVID-19 pandemic. The KOSPI's average intraday volatility reached 3.30 percent during the first half, the second-highest level on record after 3.51 percent in the first half of 1998. Critics argue that retail trading has become increasingly speculative and selective since the launch of single-stock leveraged exchange-traded funds linked to Samsung Electronics and SK hynix, with the products' daily rebalancing amplifying market swings. In a written response to Park Sung-hoon of the main opposition People Power Party, the Bank of Korea said additional investment in single-stock leveraged ETFs could deepen market concentration because Samsung Electronics and SK hynix already account for more than half of the KOSPI's market capitalization. The central bank also warned that the daily rebalancing and arbitrage activities required by leveraged ETFs could intensify one-way trading and amplify price swings when investor sentiment shifts. The warning marked a notable shift from the Bank of Korea's June 24 Financial Stability Report, which had concluded that single-stock leveraged ETFs would likely have only a limited impact on overall market stability. Less than two weeks later, however, the central bank warned that the products could deepen market concentration and amplify volatility. Signs of overheating also appeared in regulatory data. The Korea Exchange designated 43 stocks as "investment risk" issues during the first half, compared with just two a year earlier. Investment warning designations rose to 379 from 35, while investment caution notices jumped to 2,944 from 271. The issue has also spilled into politics. Ahn Cheol-soo of the main opposition People Power Party on Sunday criticized single-stock leveraged ETFs linked to Samsung Electronics and SK hynix, saying their daily rebalancing had amplified market volatility and turned the KOSPI into a "casino." He called on regulators to consider delisting the products, noting that all 14 leveraged ETFs tied to the two chipmakers had posted negative returns over the past month, with losses reaching as much as 35.9 percent. He also urged President Lee Jae Myung to dismiss the country's top financial regulators over their approval of the products. For brokerages, however, the leverage boom has proved highly lucrative. Applying an assumed annual interest rate of 9 percent to average margin loans and 8.5 percent to stock-backed loans, securities firms are estimated to have generated about 1.36 trillion won in interest income from stock-related lending during the second quarter alone, up 8.7 percent from an estimated 1.25 trillion won in the first quarter. Nearly 60 percent of that increase came from the expansion of margin lending, underscoring that brokerages benefited primarily from investors taking on new debt. Outstanding margin balances have recently hovered around 38 trillion won as brokerages approach regulatory limits on total lending relative to their equity capital. Several major firms, including NH Investment & Securities and KB Securities, have recently raised capital to expand their lending capacity, suggesting margin financing could continue to grow if retail demand remains resilient. The figures point to a fundamental shift in Korea's bull market. It is no longer being driven solely by optimism over artificial intelligence or booming semiconductor earnings. Increasingly, it is being financed by borrowed money. 2026-07-06 16:52:09
  • Asia markets mostly lower ahead of big news related to Korean chip giants
    Asia markets mostly lower ahead of big news related to Korean chip giants SEOUL, July 06 (AJP) — Asian equities opened the week cautiously Monday, with investors awaiting a string of major developments for South Korea's semiconductor sector, including Samsung Electronics' earnings guidance and SK hynix's landmark U.S. listing. As of 10:50 a.m., the benchmark KOSPI slipped 0.58 percent to 8,033.76, while the tech-heavy KOSDAQ tumbled 3.60 percent to 837.32. Retail investors were the market's only net buyers, purchasing 1 trillion won worth of KOSPI shares. Foreign investors and domestic institutions sold a net 234 billion won and 812.1 billion won, respectively. Samsung Electronics traded little changed at 311,500 won after jumping nearly 5 percent earlier in anticipation of its second-quarter earnings guidance due Tuesday. SK hynix fell 3 percent to 2,355,500 won as investors shifted their focus toward its July 10 American Depositary Receipt (ADR) listing on Nasdaq. Consensus estimates currently place Samsung Electronics' second-quarter operating profit at 85.6 trillion won, while several brokerages expect earnings to exceed 90 trillion won. Meritz Securities on Monday raised its forecast to 90.1 trillion won from 85.2 trillion won and lifted its target price to 500,000 won from 420,000 won, saying the market has yet to fully reflect potential provisioning adjustments that could once again produce a sizable earnings surprise. Daishin Securities also said Samsung's earnings momentum has strengthened in recent months as analysts continued revising forecasts higher, reinforcing the stock's longer-term uptrend. SK hynix is set to list ADRs worth about $29 billion on Nasdaq on Friday, a transaction that could become the largest first-time share sale ever by a foreign company, surpassing both Alibaba's $25 billion U.S. debut in 2014 and Saudi Aramco's $25.6 billion IPO in 2019. A Nasdaq listing would make SK hynix eligible for inclusion in major U.S. equity indexes such as the Nasdaq-100, potentially attracting passive inflows from exchange-traded funds including Invesco QQQ, which manages more than $480 billion in assets. Defense shares also attracted heavy buying. Hanwha Ocean surged 11.97 percent to 119,700 won on expectation ahead of Canada's announcement of the preferred bidder for its submarine program later Monday. Investors are betting the Korean shipbuilder will prevail over Germany's ThyssenKrupp Marine Systems (TKMS) in the project, valued at up to 60 trillion won. Hanwha Ocean also continued to benefit from last week's selection as the preferred bidder for South Korea's next-generation destroyer program. Within the Samsung group, preferred shares of Samsung Electronics climbed 5.29 percent, Samsung C&T gained 5.42 percent and Samsung Life Insurance rose 3.79 percent. Samsung Biologics fell 1.90 percent, Samsung SDI lost 2.14 percent and Samsung Electro-Mechanics declined 2.71 percent. Other large-cap cyclicals also outperformed. Hyundai Motor rose 2.85 percent, Kia advanced 5.46 percent, HD Hyundai Heavy Industries gained 3.64 percent, Hyundai Mobis added 4.86 percent, Hanwha Aerospace climbed 1.19 percent and Doosan Enerbility edged up 1.86 percent. Financial shares extended recent gains, with KB Financial rising 2.88 percent and Shinhan Financial adding 2.14 percent. The KOSDAQ remained largely neglected as investors migrate to the KOSPI. Battery, biotech and semiconductor equipment shares broadly weakened, with Altogen, EcoPro BM, EcoPro, Jusung Engineering, Wonik IPS, Reno Industrial and ABL Bio all posting notable declines. HLB bucked the trend, rising 1.96 percent. The uneven performance underscored investors' continued concentration in large-cap blue chips—particularly semiconductor leaders and defense exporters—while growth-oriented sectors remained under pressure. Elsewhere in Asia, markets remained mostly flat. Japan's Nikkei 225 fell 0.34 percent as a firmer yen weighed on exporters, China's Shanghai Composite gained 0.38 percent and Hong Kong's Hang Seng Index slipped 0.21 percent. 2026-07-06 11:12:31
  • Young South Koreans sour on Lees housing policy
    Young South Koreans sour on Lee's housing policy SEOUL, July 03 (AJP) — More than half of young South Koreans are disgruntled with the current administration's housing policy amid sky-high rent prices. A survey released Friday by polling firm Korea Gallup showed that 46 percent of respondents viewed the President Lee Jae Myung administration's housing policy negatively, compared with 26 percent who viewed it positively. Negative sentiment was strongest among younger adults, with 56 percent of people in their 30s and 51 percent of those in their 20s giving the policy a negative rating, while positive ratings stood at just 15 percent and 17 percent, respectively. The findings mark a sharp reversal from four months earlier. Positive ratings of the administration's housing policy fell from 51 percent in March — the highest level since 2013 — to 26 percent, while negative ratings rose from 27 percent to 46 percent. For critics, the biggest complaint was the government's failure to curb rising home prices, cited by 21 percent of respondents. Another 10 percent pointed to tighter lending limits, while 8 percent said the policy imposed excessive regulation. Supporters, by contrast, cited the administration's efforts to stabilize home prices, at 14 percent. Restrictions on multiple-home owners followed at 13 percent, while 6 percent cited higher property taxes. Expectations for further price increases also remained firmly entrenched. 55 percent of respondents said home prices would rise over the next year, compared with 14 percent who expected them to fall and 21 percent who predicted little change. The outlook was especially pronounced among younger respondents, with 69 percent of those in their 30s and 68 percent of those in their 20s expecting housing prices to climb further. The survey also showed continued support for the country's jeonse system, a lease arrangement in which tenants pay a large lump-sum deposit instead of monthly rent. A majority of respondents (54 percent) said the system should be maintained, while 28 percent said it should be phased out. The survey was conducted between June 30 and July 2 through telephone interviews using randomly selected mobile phone numbers. It surveyed 1,005 adults aged 18 and older and has a margin of error of plus or minus 3.1 percentage points at a 95 percent confidence level. 2026-07-03 17:54:32
  • From Starbucks to teen baseball, May 18 mockery carries a dear price
    From Starbucks to teen baseball, May 18 mockery carries a dear price SEOUL, July 03 (AJP) -Starbucks' May 18 controversy continues to reverberate across South Korea, with the country's largest coffee chain under Shinsegae Group paying for the blunder through a dent in sales while a Seoul high school baseball team is seeking forgiveness from a rival school in Gwangju after taunting its players with Starbucks-related slogans during a national championship game. The episode underscores the strict social boundaries surrounding the May 18, 1980 Gwangju Democratic Uprising, a defining milestone in South Korea's transition to democracy and one that remains highly sensitive in public life. According to the Gwangju Metropolitan Office of Education and the Seoul Metropolitan Office of Education on Friday, about 80 members of Paichai High School's baseball program — including players, coaches, parents and school officials — will visit Gwangju Jeil High School on July 6 to offer a formal apology. Gwangju Jeil is one of South Korea's most storied baseball schools and the alma mater of several former Major League Baseball players. Paichai's baseball team has been banned by the Korea Baseball Softball Association from playing at national tournaments for six months. The apology follows an incident during the National High School Baseball Championship in Seoul on Monday, when Paichai players shouted "Let's go to Starbucks" and "Tank Day" toward Gwangju Jeil players. The chants were widely interpreted as references to Starbucks Korea's controversial May promotion and as mockery of the Gwangju Democratic Uprising, with which the city is closely identified. The phrase "Tank Day" ignited nationwide criticism in May after Starbucks Korea used it to promote a tumbler discount event on May 18, the anniversary of the Gwangju Democratic Uprising. Critics said the wording evoked the military tanks deployed during the bloody suppression of pro-democracy demonstrators in 1980. Starbucks Korea subsequently issued a public apology, replaced its chief executive and introduced mandatory history education for all employees. The controversy has since spilled over into consumer spending. According to data released Friday by Mobile Index, a consumer analytics platform operated by Korean AI data company IGAWorks, estimated domestic credit and debit card spending at Starbucks fell to 100.39 billion won ($72.5 million) in June, down more than 20.8 billion won from May and the lowest monthly level since November last year. Monthly active users of the Starbucks mobile application also dropped sharply to 7.06 million in June from 8.19 million in May, a decline of about 1.13 million users, or 13.8 percent. Starbucks' share of users among food and beverage membership applications fell to 42.3 percent from 47.7 percent over the same period. The spending estimates exclude transactions made through cash, corporate transfers, gift certificates, digital wallets and in-app payment methods. 2026-07-03 16:21:23
  • Stock investing in Korea now means buying Samsung and SK hynix
    Stock investing in Korea now means buying Samsung and SK hynix SEOUL, July 03 (AJP) — The hotter South Korea's stock market becomes, the narrower it grows. Investing in Korean equities is now synonymous with owning Samsung Electronics or SK hynix. "People don't ask whether you own stocks anymore. They ask whether you own Samjeonnix," insurance planner Lee Min-joo said, referring to the Korean investor shorthand combining Samjeon (Samsung Electronics) and SK hynix. "Those two stocks dominate almost every conversation I have with clients." The country's two semiconductor giants now account for roughly half of the KOSPI's market capitalization, which stood at 6,504 trillion won ($4.18 trillion) on Friday. Their recent wild swings have dictated not only the direction of Seoul's benchmark index but also rippled through semiconductor-heavy markets from Tokyo and Taipei to Wall Street. The concentration reflects the AI-driven rally that has propelled Korean equities this year, drawing both first-time investors and seasoned traders into an increasingly crowded trade. By the end of last year, about one-quarter of South Korea's 50 million people owned stocks. With the KOSPI and its two largest constituents nearly doubling this year, market participants believe many more have since joined the rally. The enthusiasm has been even more pronounced in exchange-traded funds. According to ETF Check, a platform operated by financial market technology provider Koscom, the KODEX SK hynix Single Stock Leverage ETF attracted the largest retail inflows over the past month, with net purchases totaling 2.37 trillion won ($1.52 billion). It was followed by the KODEX Samsung Electronics Single Stock Leverage ETF, which drew 1.89 trillion won, the TIGER SK hynix Single Stock Leverage ETF with 1.45 trillion won, and the TIGER Samsung Electronics Single Stock Leverage ETF with 1.12 trillion won. The fifth most-purchased fund was the SOL AI Semiconductor TOP2 Plus ETF, an unleveraged product heavily weighted toward Samsung Electronics and SK hynix alongside several other major semiconductor stocks. It attracted 744.8 billion won in net inflows. Together, the five funds drew 7.57 trillion won in retail money over the past month, underscoring how heavily individual investors have concentrated their bets on the country's two dominant memory chipmakers. Yoon Jae-hong, an analyst at Mirae Asset Securities, said the trend reflects investors' growing preference for owning the industry's clear winners rather than diversified semiconductor portfolios. "As semiconductor stocks became increasingly driven by Samsung Electronics and SK hynix, investors began asking why they should own a broader semiconductor ETF when they could invest directly in the two market leaders," Yoon said. He added that investors seeking lower-risk exposure, particularly through retirement pension and tax-advantaged accounts where leveraged products are unavailable or less suitable, have increasingly turned to the SOL AI Semiconductor TOP2 Plus ETF. The shift is also evident in what investors are selling. The TIGER Semiconductor TOP10 Leverage ETF, which tracks a broader basket of Korean semiconductor companies with leverage, posted the largest retail outflow over the past month at 404.2 billion won. Its unleveraged counterpart, the TIGER Semiconductor TOP10 ETF, followed with net outflows of 204.4 billion won. Academics say the pattern also reflects the distinctive characteristics of Korean retail investors. Lee Jeong-hwan, a professor of economics and finance at Hanyang University, said leveraged ETFs naturally attract investors seeking short-term gains, contributing to higher trading turnover and greater market volatility. "The investment strategy itself is different," Lee said. "Many investors aim to make quick profits. They sell into rallies, cut losses quickly when prices fall and move in and out of positions much more actively." He added that Korean retail investors have long exhibited a stronger appetite for risk than their counterparts in many overseas markets. "Korean retail investors tend to have a stronger appetite for risk," Lee said, noting that the absence of a capital gains tax on most domestic stock trading lowers the cost of frequent transactions and encourages rapid-fire trading. That strategy has become increasingly painful as AI-related semiconductor stocks have entered a period of violent swings. Over the past month, the KODEX SK hynix Single Stock Leverage ETF has plunged 29.15 percent, from 31,100 won to 22,035 won. The KODEX Samsung Electronics Single Stock Leverage ETF has tumbled 40.03 percent, from 29,350 won to 17,600 won. Even the unleveraged SOL AI Semiconductor TOP2 Plus ETF has fallen 8.74 percent over the same period. The selloff has reignited debate over whether the AI-driven semiconductor rally is merely entering a period of consolidation or approaching the end of its explosive run. Some analysts argue the latest correction resembles earlier episodes triggered by concerns over China's DeepSeek AI model and this year's "Turbo Quant" rotation, in which quantitative funds rapidly unwound crowded AI trades before the sector eventually rebounded. The next major test may come within days. Investors are now awaiting Samsung Electronics' preliminary earnings on July 7, followed later this month by SK hynix's quarterly results, which are expected to offer the clearest indication yet of whether record AI memory demand remains strong enough to justify a market where investing in Korean stocks has become increasingly synonymous with betting on two chip giants. 2026-07-03 14:10:10
  • AI panic sweeps Asia, hitting Seoul hardest
    AI panic sweeps Asia, hitting Seoul hardest SEOUL, July 02 (AJP) - South Korean stocks led Asia's selloff on Thursday as another wave of panic over artificial intelligence and semiconductor valuations rattled investors, dragging the benchmark KOSPI below the 8,000 mark and the junior KOSDAQ below 900. The benchmark KOSPI tumbled 7.89 percent to close at 7,648.09, its first finish below 8,000 in 15 trading sessions. The index opened down 4.46 percent at 7,933.10, briefly recovered above 8,100 during the session, but selling accelerated into the close, sending it to an intraday low of 7,616.33. The KOSDAQ extended its losses, falling 6.74 percent to 866.72, closing below the 900 level for the first time in four trading sessions. The rout followed another steep overnight decline in U.S. semiconductor shares, reinforcing concerns that the AI-driven rally that propelled global markets to record highs may be losing momentum. Chipmakers bore the brunt of the selling. Samsung Electronics plunged 9.06 percent to 286,000 won, SK hynix slumped 14.57 percent to 2.187 million won, SK Square dropped 13.20 percent to 1.525 million won and Samsung Electro-Mechanics fell 12.65 percent to 192,600 won. The weakness spread across much of the broader market. Samsung Electronics preferred shares fell 7.73 percent to 188,700 won, Samsung C&T lost 6.34 percent to 406,500 won, Hyundai Motor slipped 1.13 percent to 482,000 won and HD Hyundai Heavy Industries declined 4.07 percent to 590,000 won. Not all blue chips joined the selloff. KB Financial rose 4.10 percent to 165,000 won, Kia gained 2.61 percent to 145,200 won, LG Energy Solution advanced 1.72 percent to 354,000 won and Samsung Biologics edged up 0.72 percent to 1.406 million won. Hanwha Aerospace was another standout. The defense contractor climbed as much as 6.69 percent before ending the session up 2.29 percent at 1.116 million won after increasing its stake in Korea Aerospace Industries (KAI). Hanwha's combined holding in KAI rose to 11.21 percent, making it the aerospace company’s second-largest shareholder. Investors viewed the purchase as part of Hanwha's strategy to strengthen its position in South Korea's aerospace industry, while buying by the National Pension Service and expectations for robust overseas defense orders also supported the shares. The risk-off mood spread across much of Asia. Japan's Nikkei 225 fell 2.33 percent to 68,831.00 as semiconductor shares came under pressure, with chip-equipment maker Tokyo Electron dropping 5.6 percent. China's Shanghai Composite Index lost 2.03 percent to 4,028.90. Hong Kong, however, bucked the regional trend. The Hang Seng Index rose 0.42 percent to 22,977.00 after reopening from Wednesday's public holiday, supported by an 8.7 percent surge in Chinese electric-vehicle maker BYD following its second consecutive month of sales growth. 2026-07-02 16:40:13
  • Seoul tanks again, so who pays for the leverage party?
    Seoul tanks again, so who pays for the leverage party? SEOUL, July 02 (AJP) - A gambler should know the risks. Reckless leveraged bets often end badly. But when a debt-fueled stock frenzy unravels and defaults pile up, South Korea faces a familiar question: who should bear the cost — individual investors or regulators? Another painful correction hit the Seoul stock market, which until just a week ago had appeared almost invincible after an extraordinary 18-month rally. The KOSPI tumbled nearly 8 percent on Thursday, while the KOSDAQ fell almost 7 percent, a brutal hangover for the junior market just a day after its subdued 30th anniversary. The KOSPI closed at 7,648.09, down about 16 percent from its June 22 peak of 9,114.55. Even so, it remains roughly 90 percent higher than at the start of the year and more than double its level of 3,075.05 a year earlier. Such spectacular gains naturally attracted profit-taking from foreign investors and savvy short sellers. Those left nursing the biggest losses, however, are often the latecomers gripped by fear of missing out, many of whom entered the rally with borrowed money. According to the Korea Financial Investment Association (KOFIA), involuntary stock liquidations triggered by margin calls totaled 969.9 billion won ($623 million) in June, the largest monthly amount this year. That brought forced selloffs during the first half to 3.15 trillion won ($2.03 billion). The monthly figures illustrate how leverage accelerated as the rally gathered pace. Forced liquidations totaled 216.6 billion won in January and 248.3 billion won in February before jumping to 558.5 billion won in March, when Middle East tensions rattled global markets. They eased to 264.2 billion won in April, then surged again to 794.6 billion won in May before reaching June's record. Yang Jun-sok, an economics professor at the Catholic University of Korea, said the latest wave of forced liquidations should be viewed partly as a "learning process" for investors rather than simply a problem requiring government intervention. "The problem is moral hazard," Yang said. "If people are protected from losses every time, they will take even greater risks in the future." The spike in margin calls followed one of the most volatile months in the market's recent history. During June, the KOSPI swung 1,991 points between an intraday low of 7,394.46 and a high of 9,385.59. Just one trading day after closing above 9,000 for the first time, the benchmark plunged 9.99 percent, repeatedly triggering market stabilization measures, including sidecars and circuit breakers. The Korea Exchange activated 10 sidecars — five on buy orders and five on sell orders — while three circuit breakers were triggered during the month. The VKOSPI volatility index climbed to 97.78 on June 24, its highest level since the 2008 global financial crisis. The turmoil has also renewed scrutiny of investor safeguards. A recent review of the country's 10 largest brokerage mobile trading platforms found that nine allow investors to place stock orders exceeding their available cash balance without requiring them to explicitly opt into unpaid settlement trading. Toss Securities, one of the country's newer online brokerages, was the only firm that blocks such orders by default. Under South Korea's unpaid settlement system, investors can buy stocks by paying only part of the purchase price upfront and settling the remaining balance two business days later. If they fail to make the payment on time, brokerages automatically liquidate the shares to recover the outstanding balance. Brokerages argue that the system allows experienced investors to trade more efficiently. Critics, however, say the default setting lowers the psychological barrier to leveraged investing by enabling investors to place larger orders without fully appreciating that they are effectively borrowing money. Yang said brokerages ultimately transfer the risks of leveraged trading to investors, making financial literacy all the more important. He added that investors in more mature markets, such as the United States, generally have a better understanding of investment risks, while South Korea still has room to improve. "It's like saying too many students received D's, so let's give them more A's, B's and C's instead," he said. "Then no one has an incentive to study." Government intervention, Yang argued, should be reserved for situations where market losses threaten the broader financial system. Otherwise, allowing investors to bear the consequences of their own decisions, painful as that may be, ultimately creates healthier markets over the long run. 2026-07-02 16:39:47
  • KOSPI falls below 8,000 as Wall Street chip rout spills over
    KOSPI falls below 8,000 as Wall Street chip rout spills over SEOUL, July 2 (AJP) - South Korean stocks suffered another heavy selloff on Thursday, with the benchmark KOSPI plunging more than 5 percent in early trading, falling below 8,000 points. The decline followed an overnight rout in U.S. semiconductor shares, which reignited concerns that the artificial intelligence (AI)-led boom may be losing momentum. Just minutes after trading began, the KOSPI fell 5.30 percent to 7,862.92 and the junior KOSDAQ also dropped 4 percent to 892.18. A sharp decline in U.S. chipmakers spilled over into Seoul, with semiconductor-related stocks bearing the brunt of the selling after the Philadelphia Semiconductor Index tumbled 6.27 percent. Samsung Electronics tumbled 7 percent to 292,500 won, SK hynix plunged 8.28 percent to 2.348 million won, SK Square slid 10.13 percent to 1.579 million won and Samsung Electro-Mechanics dropped 8.62 percent to 2.015 million won. Selling spread to other blue chip stocks. Samsung C&T fell 7.95 percent to 399,500 won, Samsung Life Insurance lost 8.27 percent to 355,000 won, Hyundai Motor declined 5.03 percent to 463,000 won, Samsung Electronics preferred shares slipped 6.36 percent to 191,500 won, while LG Energy Solution and Samsung Biologics edged down 1.87 percent and 1.43 percent to 341,500 won and 1.376 million won, respectively. Only a handful of blue chips bucked the broader decline. Hanwha Aerospace rose 4.49 percent to 1.14 million won, while KB Financial gained 0.88 percent to 159,900 won. The weakness would mean a rough start to the second half, as the KOSPI briefly reclaimed 8,600 before reversing course, slipping below 8,100 to finish at 8,303.41 the previous day amid persistent foreign selling. Wall Street provided little relief overnight. The Dow Jones Industrial Average slipped 0.03 percent, the S&P 500 fell 0.22 percent and the Nasdaq Composite lost 0.66 percent as investors locked in profits at the start of the third quarter. Semiconductor stocks bore the brunt of the selling, with Micron Technology plunging 10.57 percent, Sandisk dropping 10.62 percent, Intel falling 9.03 percent, AMD losing 6.89 percent and Nvidia declining 1.25 percent. The notable exception was Meta Platforms, which surged 8.81 percent after unveiling plans to commercialize excess AI computing capacity through cloud services. However, the announcement also fueled concerns that major technology companies may have overinvested in AI infrastructure and could reduce future demand for advanced semiconductors. Investors are now turning their attention to upcoming developments as Samsung Electronics is set to release its preliminary earnings report for the second quarter next week, while SK Hynix is set for its U.S. ADR listing this month. Earnings reports for the so-called "Magnificent Seven" — Alphabet, Amazon, Apple, Microsoft, Nvidia, Meta, and Tesla — will also be released later this month. Meanwhile, the South Korean won weakened against the U.S. dollar, with the greenback trading at 1,555.7 won in early trading, compared with the previous day's close of 1,554.9 won. 2026-07-02 09:44:04
  • KOSDAQ at 30 bares Peter Pan syndrome
    KOSDAQ at 30 bares Peter Pan syndrome SEOUL, July 01 (AJP) – KOSDAQ, South Korea's answer to the Nasdaq, turned 30 on Wednesday. But the celebration was notably subdued as the junior market remains trapped in a kind of Peter Pan syndrome, unable to match the spectacular rise of its bigger sibling, the KOSPI. While the benchmark KOSPI has quadrupled over the past 18 months, KOSDAQ has barely moved. After standing at 925 eighteen months ago, it closed its 30th anniversary at 929.35. The market debuted at 1,000 points on July 1, 1996. The divergence has widened this year. The KOSPI has surged 92.67 percent on an artificial intelligence-driven rally led by Samsung Electronics and SK hynix, while the KOSDAQ has slipped 1.72 percent into negative territory. Many of KOSDAQ's biggest success stories have graduated to the main board, while retail investors — once the backbone of the junior exchange — have shifted their money into large-cap AI stocks. Rather than celebrating its milestone, the exchange enters its fourth decade under mounting pressure to restore investor confidence through another round of market reforms. The contrast is stark. KOSDAQ's share of South Korea's total stock market capitalization has shrunk to about 6 percent from roughly 12 percent at the beginning of the year, according to Korea Exchange. All talk, no solution? The Korea Exchange launched KOSDAQ CONNECT 2026, a three-day conference beginning Wednesday to coincide with the market's 30th anniversary. Jointly organized by the Korea Investor Relations Service and the KOSDAQ Association, the event brings together listed companies, institutional investors, investment banks, venture capital firms and retail investors in what the exchange describes as its largest investor relations conference dedicated to the KOSDAQ market. Speaking at the opening ceremony in Seoul, Korea Exchange Chairman Jeong Eun-bo pledged to strengthen the market's fundamentals and restore credibility. "The exchange will actively improve the quality of the market so that KOSDAQ can become a trusted marketplace," he said. "By ensuring the efficient allocation and circulation of venture capital, we will build a market where productive finance functions at its best." He added that he hoped KOSDAQ CONNECT 2026 would become "a meaningful platform for enhancing corporate value." The opening day featured presentations on KOSDAQ's three-decade history and future roadmap, panel discussions on its direction, and industry sessions covering pharmaceuticals, biotechnology and medical devices. Over the following two days, policymakers are scheduled to unveil additional measures to improve market quality, expand technology-track listings, increase venture capital funding and strengthen disclosure requirements. Analysts, however, say the success of those initiatives will ultimately depend on whether they restore investor confidence and improve the quality of listed companies. Kim Jung-hoon, an analyst at Trust Investment Advisory, said KOSDAQ needs to attract companies with sustainable growth prospects instead of merely increasing the number of technology-track IPOs. "As delisting requirements become stricter, IPOs should focus on companies with proven growth potential," he said. He also argued that improving investor communication is just as important as raising listing standards. "Many KOSDAQ companies don't even have dedicated investor relations teams. There needs to be a better system for communicating with shareholders." Recent policy initiatives, he added, have done little to bring investors back. "There have been plenty of policy measures, but on the ground it's difficult to feel their impact because investors remain focused on Samsung Electronics and SK hynix." Outside the conference hall, the market's challenges were on full display. The exhibition booths of KOSDAQ-listed companies were largely empty, with few visitors stopping by despite the anniversary event. KOSDAQ's fortunes have mirrored South Korea's changing industrial landscape. The market enjoyed a spectacular boom during the venture-capital frenzy of 1999 and 2000, reaching a record high of 2,834.40 in March 2000 — a peak it has never revisited. It plunged after the Nasdaq-led dot-com crash, falling below 300 by 2004 and to 261.19 during the global financial crisis in 2008. It later found renewed momentum through a biotech rally led by Celltrion in the mid-2010s and again in 2023 as battery makers including EcoPro, EcoPro BM and L&F surged. But as the electric-vehicle boom faded and investors rotated into AI-driven semiconductor stocks, KOSDAQ failed to produce a new generation of market leaders, leaving even a return to the 1,000-point level increasingly elusive. Analysts say the market's prolonged stagnation reflects structural weaknesses, including the steady migration of successful companies to the KOSPI, the growing number of so-called zombie companies and repeated surprise share issuances that have eroded investor confidence. The loss of blue-chip companies has been particularly painful. Naver, Kakao and Celltrion all began on KOSDAQ before transferring to the main board. Alteogen, now the market's largest company by market capitalization, is also pursuing a KOSPI listing. Retail investors have been voting with their feet. Individuals have sold a net 10 trillion won ($7.3 billion) worth of KOSDAQ shares this year, rotating into major semiconductor stocks as the AI investment boom accelerated. Foreign and institutional investors have been net buyers, purchasing roughly 6 trillion won and 4 trillion won worth of shares, respectively. The government is betting that stricter listing standards can help reverse the decline. Beginning Wednesday, listed companies must maintain a market capitalization of at least 20 billion won, up from the previous 15 billion won threshold, to remain on the exchange. Stocks trading below 1,000 won will also face tougher delisting requirements. The Korea Exchange also plans to introduce a three-tier KOSDAQ structure in October, dividing the market into premium, standard and management segments in an effort to channel investment toward stronger companies while weeding out weaker ones. Three decades after its launch, however, KOSDAQ is still searching for a way to become a destination for tomorrow's market leaders instead of merely serving as a nursery for future KOSPI companies. 2026-07-01 17:15:57