Journalist
Ryu Yuna류윤아
Julia37@ajupress.com
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."
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
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KOSPI and Nikkei under profit-taking pressure SEOUL, June 26 (AJP) — South Korean and Japanese shares fell Friday on broad profit-taking after the previous session's Micron Technology-fueled chip rally, while oil prices, which had returned to prewar levels, turned higher on reports of a suspected attack near the Strait of Hormuz. As of 10:16 a.m., the benchmark KOSPI was down 2.72 percent at 8,687.50. The junior KOSDAQ fell 1.08 percent to 878.20. Japan's Nikkei 225 declined 3.0 percent to 70,174.53. In Seoul, foreign investors sold a net 1.75 trillion won worth of KOSPI shares as of 10:07 a.m., while retailers absorbed nearly all of the selling. Institutions were also net sellers, offloading 39.9 billion won. The pullback came after one of the most volatile weeks in the KOSPI's recent history. The benchmark plunged 9.99 percent on Tuesday before rebounding about 8.7 percent over the following two sessions as Samsung Electronics and SK hynix traded places as South Korea's most valuable listed company. Semiconductor shares led the decline in Seoul. Samsung Electronics fell 3.21 percent to 347,000 won after opening 1.26 percent lower, while SK hynix dropped 3.53 percent to 2,814,000 won. The two chipmakers initially benefited from Micron Technology's stronger-than-expected earnings, but sentiment reversed after reports that Apple plans to raise prices across its product lineup and revise its next-generation chip roadmap to cope with soaring memory costs. While higher memory prices have improved earnings prospects for chipmakers, investors worried they could squeeze profit margins for major technology companies. Losses spread across related stocks, with SK Square plunging 7.32 percent to 1,760,000 won and Samsung Electronics preferred shares falling 3.40 percent to 227,000 won. Samsung Electro-Mechanics, however, rose 1.85 percent to 203,400 won. Among other large caps, Hyundai Motor fell 3.08 percent to 487,500 won, LG Energy Solution declined 2.27 percent to 344,000 won and Samsung Biologics slipped 0.94 percent to 1,373,000 won. Samsung Life Insurance lost 1.01 percent to 442,500 won, while Samsung C&T edged up 0.39 percent to 521,000 won. Shipbuilders and financial shares were also mostly weaker. HD Hyundai Heavy Industries fell 2.92 percent to 565,000 won, Doosan Enerbility dropped 4.10 percent to 84,200 won, KB Financial slipped 0.39 percent to 151,300 won and Kia declined 2.01 percent to 136,700 won. Market sentiment also weakened after the U.K. Maritime Trade Operations said it had received a report of a suspected attack on a cargo ship off the coast of Oman as it transited the Strait of Hormuz. The report revived concerns over Middle East oil supplies and pushed crude prices higher. Brent crude futures for August delivery rose 2.06 percent to $75.26 a barrel, while U.S. West Texas Intermediate crude gained 2.25 percent to $71.92. Wall Street offered little support overnight. The Dow Jones Industrial Average rose 0.14 percent, while the S&P 500 edged down 0.01 percent and the Nasdaq Composite lost 0.46 percent as investors reassessed the impact of rising memory-chip prices. The Korean won also weakened, with the U.S. dollar trading at 1,547.9 won, up 5.2 won from the previous session's close of 1,542.7 won. 2026-06-26 10:41:46 -
Foreign 'Sell Korea' tops $30 bn in May, 10 times '25 outflow SEOUL, June 26 (AJP) — Foreign investors sold a record 47 trillion won ($30.5 billion) worth of Korean stocks in May, pushing their net sales in the first five months 10 times their 2025 annual outflow and explaining the stubbornly weak won versus the U.S. dollar, data showed Friday. Despite their heavy selling, their holdings in Korean shares and share in market cap surged to a record high to reflect their cherry-picking in heavyweight blue chips. According to data released Friday by the Financial Supervisory Service (FSS), overseas investors were net sellers of 47.02 trillion won in listed Korean shares in May, the largest monthly net outflow on record. They sold a net 49.04 trillion won on the benchmark KOSPI while buying a net 2.02 trillion won on the junior KOSDAQ. The cumulative net selloff reached 114.22 trillion won during the first five months of the year, more than ten times last year's full-year net outflow. Their relentless selling continued in June, with a net 41.5 trillion won worth of KOSPI shares so far this month. The dollar, as result, has soared 2.3 percent to 1,541.8 won Thursday, up 2.3 percent from May-end, and 7.2 percent from December-end. Despite the heavy selling, a rally in large-cap stocks, particularly semiconductor shares, lifted the market value of foreign investors' holdings by 730.9 trillion won from a month earlier to a record 2,852.3 trillion won at the end of May. Foreign ownership also climbed to an all-time high of 35.3 percent of South Korea's total stock market capitalization. By region, investors from the Americas accounted for the largest net sales at 33.2 trillion won, followed by Europe at 7.4 trillion won, the Middle East at 1.1 trillion won and Asia at 100 billion won. U.S. investors led the selling with net outflows of 28.86 trillion won, accounting for more than half of total foreign net sales during the month. They nevertheless remained the largest foreign holders of Korean equities, with holdings worth 1,188.0 trillion won at the end of May, accounting for 41.7 percent of all foreign-owned stocks. Canadian investors sold a net 4.27 trillion won, while investors from Norway and Hong Kong were net buyers, purchasing 2.29 trillion won and 2.01 trillion won, respectively. Foreign appetite for Korean bonds, however, remained strong. Overseas investors recorded net bond purchases of 8.79 trillion won in May after purchasing 11.72 trillion won worth of bonds and redeeming 2.92 trillion won of maturing debt, marking a second straight month of net investment. European investors were the biggest buyers with 5.7 trillion won, followed by Asian investors with 2.0 trillion won. Most purchases were concentrated in government bonds. Foreign investors recorded net purchases of 9.89 trillion won in sovereign debt while trimming holdings of quasi-government bonds. They favored bonds with remaining maturities of one to five years (7.02 trillion won) and more than five years (4.30 trillion won), while reducing holdings of securities with less than one year remaining. At the end of May, foreign investors held 333.6 trillion won worth of listed Korean bonds, equivalent to 11.7 percent of the total market. Asian investors accounted for the largest share of foreign bond holdings at 133.3 trillion won, narrowly ahead of European investors at 132.0 trillion won. Government bonds accounted for 94.7 percent of foreign-held Korean bonds. 2026-06-26 09:44:45 -
Thailand Seeks Broader Partnership with South Korea Beyond Tourism As the Comprehensive Economic Partnership Agreement (CEPA) between South Korea and Thailand approaches completion, Thailand is looking to expand its collaboration with South Korea beyond tourism and trade into advanced industries, healthcare, defense, and supply chains. The goal is to elevate cooperation in future industries such as investment, digital technology, and defense. In an interview on June 24 at the Thai Embassy in Yongsan, Seoul, Thai Ambassador Tanee Sangrat expressed his hope that South Korea would view Thailand not just as a tourist destination but as a strategic partner in innovation and advanced manufacturing. He stated, "Our cooperation must evolve beyond tourism and trade to focus on future industries." Ambassador Sangrat emphasized that Thailand is accelerating the development of advanced manufacturing and digital industries to overcome its current low growth phase, with South Korea's technology, capital, and industrial experience playing a crucial role. He noted, "South Korea is not only an important market for Thailand but also possesses global competitiveness in various fields, including semiconductors and advanced manufacturing. There is significant potential for collaboration in producing products aimed at the global market with Thai companies." The ambassador highlighted the long-standing historical trust between the two nations, recalling that Thailand contributed 11,786 troops as part of the United Nations forces during the Korean War. He believes this shared history forms a solid foundation for current cooperation. In light of the ongoing global supply chain restructuring due to U.S.-China tensions and instability in the Middle East, he stressed that Thailand could serve as a new production and investment hub for South Korean companies. He pointed out, "There are substantial opportunities for collaboration in industries that require stable supply chains, such as automotive, computer parts, data centers, robotics, and defense." He identified the CEPA as a key task for economic cooperation and expressed optimism about finalizing the agreement within the year. "While there are a few issues remaining, both leaders share the same goal of concluding the agreement this year," he said. Currently, trade between the two countries stands at approximately $15 billion. The ambassador projected that the CEPA could increase trade by $2 billion to $3 billion, with a long-term goal of expanding it to $30 billion. South Korea ranks as Thailand's 13th largest trading partner, while Thailand is South Korea's 16th largest. He anticipates that the agreement will facilitate cooperation beyond trade into investment, digital industries, and supply chains. Additionally, he expects enhanced collaboration in logistics, industrial policy, and infrastructure based on memoranda of understanding (MOUs) for the development of smart industrial complexes and transportation. Thailand is pursuing a transformation of its industrial structure centered on advanced manufacturing and digital innovation, guided by its national strategy, Thailand 4.0. From 2022 to 2027, the country is also implementing a national AI strategy and action plan to accelerate the development of the digital economy and future industries such as artificial intelligence (AI). Ambassador Sangrat identified promising areas for cooperation, including the digital economy, semiconductors, AI, defense, biohealth, medical technology, wellness, and future foods. He stated, "South Korea's advanced manufacturing competitiveness will significantly aid Thailand's industrial advancement." He also highlighted defense cooperation as a new avenue for collaboration, mentioning that the Defense Technology Institute of Thailand is developing a defense industrial complex in Kanchanaburi. He encouraged South Korean defense companies to consider investment opportunities in this area. The Thai government is strengthening its defense manufacturing capabilities based on this industrial foundation. The ambassador expressed hope for participation from South Korean defense firms in the developing defense industrial complex in Thailand and indicated a commitment to actively attract investment in the Thai defense industry. In addition to defense, he identified cybersecurity, disaster response, and humanitarian assistance as new fields for collaboration between the two nations. He remarked, "Cybersecurity is one of the most critical issues we face, and we must collaborate with South Korea and ASEAN countries to address it." The silver economy was also highlighted as a promising area for cooperation. The ambassador noted, "Aging can present new opportunities, providing investment prospects for South Korean companies, Thai businesses, and foreign investors alike." He pointed out that Thailand has already established itself as a medical hub attracting patients from the Middle East, Europe, Africa, and Asia. He anticipates that this will lead to expanded collaboration with South Korea across the entire senior-friendly industry, including medical devices, hospital infrastructure, senior housing, and elder care services. Cooperation centered on startups is also on the rise. The Thai Embassy recently launched the Seoul-Thailand Startup Innovation Space (STSiS). Ambassador Sangrat explained, "This will support Thai startups entering the Korean market while also serving as a platform for Korean companies to expand into Thailand and the ASEAN market." According to the Thai Ministry of Tourism and Sports, 1.55 million South Koreans visited Thailand last year, a 16.8% decrease from the record 1.87 million in the previous year. From January to May this year, the number was 539,848, down 7.6% from the same period last year. Despite this trend, Ambassador Sangrat expressed his hope that "Korean friends will not view Thailand solely as a tourist destination," adding, "Thailand is also a country of innovation and technology." He further emphasized, "Thailand is not just a labor-supplying country but a modern economy equipped with innovation and technology," positioning it as a strategic partner for deeper cooperation with South Korea. * This article has been translated by AI. 2026-06-25 17:36:00 -
KOSPI, Nikkei 225 refueled by revived chip fever SEOUL, June 25 (AJP) — The KOSPI moved to the brink of reclaiming the 9,000-point milestone amid a tense market rivalry between the country's two chip heavyweights, while the junior KOSDAQ sank further as bets narrowed on chip infrastructure. The benchmark KOSPI closed up 5.42 percent at 8,930.30 after briefly climbing above the 9,000-point threshold during afternoon trading. Trading was volatile throughout the session. A buy-side sidecar was triggered shortly after the open amid a rush into chip stocks after overnight results from Micron Technology reinforced expectations that the AI boom would last well through next year. Samsung Electronics climbed 5.29 percent to close at 358,500 won, while SK hynix surged 13.06 percent to 2,917,000 won to reclaim the No. 1 market capitalization title after losing it for just one day. Shares tied to the two chipmakers also rallied sharply, with SK Square rising 5.56 percent to 1,899,000 won, Samsung C&T gaining 7.79 percent to 519,000 won, Samsung Life Insurance adding 3.23 percent to 447,000 won and Samsung Electronics preferred shares surging 10.07 percent to 235,000 won. Samsung Electro-Mechanics also gained 1.68 percent to 1,997,000 won. Samsung Biologics ended little changed, edging up 0.07 percent to 1,386,000 won, while Kia rose 0.43 percent to 139,500 won. Much of the non-semiconductor blue chips remained subdued. Hyundai Motor fell 1.18 percent to 503,000 won, LG Energy Solution dropped 3.69 percent to 352,000 won, HD Hyundai Heavy Industries slipped 0.85 percent to 582,000 won and Hanwha Aerospace declined 2.29 percent to 1,069,000 won. Institutional investors remained the dominant buyers, purchasing a net 4.24 trillion won ($2.75 billion) worth of KOSPI shares. Retail investors sold a net 3.45 trillion won, while foreign investors offloaded a net 773.6 billion won. The semiconductor-led surge came at the expense of the secondary market, where the tech-heavy KOSDAQ fell 2.46 percent to 887.81, slipping back below the 900-point mark. Among KOSDAQ heavyweights, Alteogen edged up 0.94 percent to close at 375,000 won, while battery materials makers EcoPro BM and EcoPro tumbled 5.57 percent to 144,000 won and 5.29 percent to 102,000 won, respectively. Among semiconductor equipment makers, Jusung Engineering plunged 8.50 percent to 166,900 won, although Wonik IPS and Reno Industrial gained 2.72 percent to 154,700 won and 4.11 percent to 88,700 won, respectively. The Korean won weakened slightly against the U.S. dollar, trading at 1,544.7 won per dollar, down 2 won from the previous session. The session underscored the market's growing divide, with semiconductor winners continuing to outpace the broader market. Japan's Nikkei 225 jumped 4.61 percent to 72,366.34, extending gains alongside the global chip rally. China's Shanghai Composite rose 0.23 percent to 4,120.28, while Hong Kong's Hang Seng Index declined 1.61 percent to 23,035.63. 2026-06-25 17:01:18 -
CEPA 's signing between Korea and Thailand to elevate ties: envoy SEOUL, June 25 (AJP) - Contrary to its image abroad as a holiday resort or golfing destination, Thailand is strengthening its technology-driven manufacturing base to revive economic growth that has slowed to below 2 percent, while inviting South Korean capital, technology and expertise to accelerate its digital and industrial transformation, Thailand's ambassador to South Korea said. "Korea in itself is an important market for Thailand, but more uniquely Korea's advancement in many industries has great potential to collaborate with Thai companies and corporations to process and manufacture many products for the global market," Ambassador Tanee Sangrat told AJP in an interview. Thailand, in return, can provide new opportunities for Korean businesses amid geopolitical tensions and global supply-chain diversification as the Southeast Asian nation steps up efforts to attract foreign direct investment for industrial upgrading and greater economic resilience, he said. The ambassador expressed optimism that the Comprehensive Economic Partnership Agreement (CEPA) between the two countries could be concluded this year, describing it as a catalyst for expanding bilateral ties beyond traditional trade. "There are only a couple of issues left to be dealt with," Sangrat said. "Leaders of both sides have expressed the same goal." Bilateral trade currently stands at around $15 billion. Sangrat said CEPA could increase that by an additional $2 billion to $3 billion as Thailand works toward its longer-term goal of doubling trade to $30 billion. South Korea is Thailand's 13th-largest trading partner, while Thailand ranks as Korea's 16th, well below Korea's roughly $90 billion trade volume with Vietnam. Sangrat said CEPA would broaden cooperation into investment, digital industries and supply-chain partnerships while reinforcing Thailand's position as a gateway for Korean companies seeking to expand across ASEAN. He also pointed to recently signed agreements on transport cooperation, institutional knowledge exchange and smart industrial estate development as foundations for deeper collaboration in logistics, industrial policy and infrastructure. Thailand's long-term industrial ambitions are embodied in Thailand 4.0, the government's strategy to transform the country into one of Southeast Asia's leading digital economies through advanced manufacturing, digital innovation and technology adoption. According to Thailand's National Broadcasting and Telecommunications Commission, wider adoption of 5G could generate an additional $9.3 billion in economic value by 2035, creating significant opportunities for foreign technology providers. Thailand has also launched a national AI Strategy and Action Plan covering 2022 to 2027 under the supervision of the Ministry of Higher Education, Science, Research and Innovation and the Ministry of Digital Economy and Society. "The areas that are most promising now are future industries — digital economy, semiconductors, AI," Sangrat said. He said South Korea's expertise in advanced manufacturing makes it a natural partner as Thailand seeks to move further up the technology value chain. South Korea's Ministry of Land, Infrastructure and Transport and Thailand's Ministry of Industry recently signed a memorandum of understanding on smart industrial estate development. Defense is another emerging area of cooperation. "Our Defense Technology Institute has been working on establishing an industrial park for defense industries in Kanchanaburi Province," Sangrat said. "We want to invite Korean defense companies to take a look at our offer. I will be happy to work with them and invite them to invest in our defense industry." Innovation is another pillar of bilateral relations. The recently launched Seoul-Thailand Startup & Innovation Space (STSiS) at the Thai Embassy in Seoul aims to connect startups, technology companies and investors from both countries. Sangrat said the initiative would help Thai startups enter Korea while supporting Korean firms seeking business opportunities throughout Thailand and ASEAN. The push to diversify economic cooperation comes as tourism, traditionally the foundation of bilateral exchanges, has softened. South Korean arrivals to Thailand fell to 1.55 million in 2025 from a record 1.87 million in 2024, a decline of 16.8 percent. During the first five months of 2026, arrivals fell another 7.6 percent year on year to 539,848, according to Thailand's Ministry of Tourism and Sports. Beyond industry, Sangrat sees growing opportunities in healthcare and the silver economy as both countries confront rapidly aging populations. Thailand has developed into one of Asia's leading medical hubs, attracting patients from the Middle East, Europe, Africa and across Asia with high-quality treatment at competitive costs. "There is a silver lining in this transformation," he said. "It's also an opportunity for Korean companies, Thai companies and foreign direct investment to invest in a wide spectrum of what you call the silver economy." He said demand would continue to expand across senior healthcare, medical devices, hospital infrastructure, age-friendly housing and elderly care facilities. "We want Korean companies to use Thailand as a base and expand not only into Thailand but across ASEAN." Sangrat also called for closer cooperation in cybersecurity, disaster relief and humanitarian assistance as common security challenges intensify. "Cybersecurity is something that is foremost on our mind," he said. "We are all threatened by cybersecurity, and we can address it directly through our partnership with Korea and our friends in ASEAN." The ambassador said the relationship rests on decades of trust built through shared history, noting that Thailand was among the few Asian countries to send combat troops under the United Nations Command during the 1950-53 Korean War, contributing 11,786 personnel. "I would like our Korean friends to look at Thailand not only for tourism purposes," he said. "Thailand should not only be known for tourism, but also as a land of innovation and technology." 2026-06-25 12:42:02 -
Chip rally resumes on hynix ADR news and Micron earnings, KOSPI up 5% SEOUL, June 25 (AJP) — South Korean stocks surged toward reclaiming the 9,000 milestone as chip stocks were refueled by multiple catalysts, from Micron Technology's blowout earnings to SK hynix's Nasdaq listing plan and Samsung Electronics' massive buyback program. The benchmark KOSPI opened 5.55 percent higher and was up 5.61 percent at 8,946.02 as of 9:36 a.m. The junior KOSDAQ opened 1.10 percent higher before easing to 913.47, up 0.46 percent. Samsung Electronics and SK hynix led the rally after Micron Technology posted blockbuster quarterly earnings and projected the AI memory supercycle would extend well beyond 2027, setting the stage for another red-hot earnings streak by the larger Korean chipmakers. The U.S. chipmaker, the world's third-largest DRAM producer behind Samsung Electronics and SK hynix, reported fiscal third-quarter revenue of $41.46 billion, up 74 percent from the previous quarter and nearly 4.5 times higher than a year earlier. The figure exceeded both the company's revenue guidance of about $33.5 billion and Wall Street's estimate of roughly $35.8 billion. Adjusted earnings per share came in at $25.11, well above the consensus estimate of $20.86. The company forecast fourth-quarter revenue of $49 billion to $51 billion, significantly above analysts' expectations, and projected gross margins of around 86 percent. Micron shares jumped about 13 percent in after-hours trading following the earnings release. The record results were driven by booming demand for high-bandwidth memory (HBM) and server DRAM used in AI data centers. Micron said demand continues to outstrip supply and that its entire HBM production for 2026 has already been sold under fixed-price contracts, reinforcing expectations that the AI-driven memory upcycle has further room to run. Samsung Electronics is scheduled to report preliminary second-quarter earnings in early July and full results later in the month. SK hynix is expected to release its earnings in late July. As of 9:18 a.m., Samsung Electronics rose 5.14 percent to 358,000 won, while SK hynix surged 9.38 percent to 2,822,000 won. The chip euphoria also lifted Japan's Nikkei 225 by 2.3 percent. SK hynix announced Wednesday after the market closed that it is launching a roughly $33 billion public offering tied to a Nasdaq listing of American Depositary Receipts (ADRs), with subscription and payment scheduled for July 10 and July 14, respectively. Samsung Electronics earlier in the day unveiled a $65 billion buyback program. Beyond the chipmakers, Samsung affiliates broadly advanced. Samsung C&T surged 14.23 percent to 550,000 won, Samsung Life Insurance climbed 6.58 percent to 461,500 won, Samsung Biologics gained 2.24 percent to 1,416,000 won, and Samsung Electro-Mechanics rose 1.48 percent to 199,300 won. Samsung Electronics preferred shares also jumped 7.26 percent to 229,000 won. SK Group shares also rallied, with SK soaring 14.61 percent to 816,000 won and SK Square advancing 6.84 percent to 1,922,000 won. Elsewhere, HD Hyundai Heavy Industries rose 4.60 percent to 614,000 won, Kia gained 2.95 percent to 143,000 won, LG Energy Solution added 1.09 percent to 369,500 won, Hyundai Motor edged up 0.98 percent to 514,000 won, and Doosan Enerbility also inched up 0.66 percent to 91,200 won. 2026-06-25 09:53:06 -
Leverage handover arrives even as KOSPI party goes on SEOUL, June 24 (AJP) - South Korea's stock market is hot, volatile and increasingly dependent on borrowed momentum. Government-approved leveraged exchange-traded funds have added another layer of risk, producing side effects within weeks of their launch and prompting an unusual public mea culpa from regulators. Single-stock leveraged ETFs tied to Samsung Electronics and SK hynix, which allow investors to bet on twice the daily movement of the shares, plunged 24 to 25 percent during this week's market rout, magnifying losses as the benchmark KOSPI suffered its worst one-day decline of the year. The underlying shares rebounded on Wednesday, with Samsung Electronics rising 9.84 percent to 340,500 won and SK hynix gaining 0.98 percent to 2.58 million won. But the sharp swings have done little to ease concerns over the risks posed by leveraged investing concentrated around the country's AI champions. The concerns have grown serious enough for regulators to publicly second-guess their own decision. Financial Supervisory Service chief Lee Chan-jin said he regretted approving the products just weeks after their launch. "The effect has been minimal, but the side effects have become too significant," Lee said. "There is a risk that investors gain little while securities firms and liquidity providers earn most of the profits," he added. "I should have stopped it through all means," he told reporters. The Bank of Korea echoed those concerns on Wednesday. In its Financial Stability Report for the first half of 2026, it said that although the country's financial system remains broadly stable, rising leverage, growing stock-market speculation and increasing financial imbalances could become significant sources of instability amid heightened volatility in domestic financial and foreign-exchange markets. The central bank identified leveraged stock investing as one of the biggest financial stability risks. Combined exposure to margin trading and leveraged ETFs surged to 74.8 trillion won ($55 billion) at the end of May, up 160.5 percent from a year earlier. Outstanding margin loans and unpaid margin balances alone climbed to a record 39.4 trillion won, while net assets in leveraged ETFs rose to 35.4 trillion won. Borrowing for direct stock purchases has accelerated sharply since the second half of last year as the market rallied, the central bank said, warning that highly leveraged investors could face significant losses if stock prices reverse and forced liquidations trigger a vicious cycle of selling pressure. The issue extends far beyond South Korea. Leveraged ETFs have become one of the fastest-growing corners of global finance, turning market momentum itself into a tradable asset class. But their rapid expansion has revived an old question: At what point does leverage stop reflecting markets and start driving them? Assets in leveraged exchange-traded funds worldwide have surpassed $290 billion, according to Bloomberg, with the United States accounting for more than $220 billion and Asia about $45 billion. Yet the same mechanism that boosts returns during rallies can accelerate declines during periods of market stress. Unlike conventional ETFs, leveraged ETFs automatically buy or sell underlying assets to maintain their target leverage as markets move. This can add buying pressure when markets rise and increase selling pressure when markets fall, creating self-reinforcing cycles that amplify market swings. Analysts warn such feedback loops can be especially powerful in markets heavily concentrated in a handful of stocks, such as South Korea's semiconductor sector. Nomura estimates leveraged ETFs generate roughly $9 billion in rebalancing demand for every 1 percent move in the market. Barclays strategist Alexander Altmann said daily rebalancing flows in U.S. leveraged ETFs have averaged about $20 billion over the past 10 trading sessions, roughly four times the annual average. Altmann warned that the rapid expansion of leveraged ETFs has created a classic "tail-wagging-the-dog" scenario, where leverage no longer follows markets but increasingly dictates them, turning momentum into a self-fulfilling prophecy regardless of corporate fundamentals. Nomura strategist Charlie McElligott warned that South Korea has become one of the epicenters of the AI-driven trading boom, where the structural dynamics surrounding leveraged ETFs are amplifying volatility and creating a "butterfly effect" that extends far beyond the local market. Those concerns have become more acute since South Korea introduced 16 single-stock leveraged and inverse ETFs tracking Samsung Electronics and SK hynix in late May. Assets in the products have already tripled to more than $9 billion from around $3 billion at launch. Their rapid growth has coincided with increasingly speculative trading behavior. According to the Financial Supervisory Service, the average daily turnover ratio of single-stock leveraged ETFs reached 122.5 percent between May 27 and June 12, with some sessions nearing 200 percent — a pace more typical of short-term speculation than traditional ETF investing. Regulators worry the products, which are overwhelmingly held by retail investors, could magnify losses during periods of market stress. More than 90 percent of holders are individual investors, and assets in the products have already exceeded 14 trillion won. Among the measures under review are raising the current 10 million won minimum deposit requirement, expanding mandatory investor education, restricting additional single-stock leveraged ETF listings and imposing higher fees to discourage excessive short-term trading. Kim Tae-gi, an economics professor at Dankook University, said the recent turmoil reflects broader flaws in how leveraged investing expanded, arguing that policymakers failed to put adequate safeguards in place as speculative trading accelerated. "The problem isn't the ETFs themselves. It's that leveraged investing was introduced without enough safeguards," Kim said. He argued that policymakers should focus less on tightening regulations after the fact and more on restoring market discipline. Raising entry barriers or expanding investor education alone would do little if speculative incentives remain intact. "The focus should not be on imposing more regulations, but on restoring market discipline and ensuring that speculative trading does not undermine market stability," Kim said. "Otherwise, the stock market could become even more fragile." 2026-06-24 17:42:25 -
Korea's record birth streak extends to fourth month SEOUL, June 24 (AJP) — South Korea extended its record birth streak this year with four-month tally nearing 100,000 mark for the first time in seven years and helping to bolster the fertility rate closer to 1. According to the Ministry of Data and Statistics on Wednesday, 24,521 babies were born in April, up 3,734, or 18.0 percent, from a year earlier. It was the highest April figure since 2019 and marked the largest year-on-year increase for the month since monthly records began in 1981. Births have now risen for 22 consecutive months since July 2024. From January to April, a total of 99,534 babies were born, the highest level for the period since 2019. The cumulative increase of 15.5 percent from a year earlier was also a record. The rebound pushed April's total fertility rate — the average number of children a woman is expected to have over her lifetime — to 0.93, up from 0.80 a year earlier. Marriages, a leading indicator for future births, also maintained their upward trajectory. April marriages rose 9.0 percent from a year earlier to 20,622, extending a multi-year recovery and surpassing the 20,000 threshold for the first time since 2016 for the month of April. The sustained increase reflects several factors that have emerged over the past two years, including a rise in marriages, a larger population of women in their 30s and a more positive perception of childbirth. Women in their 30s continued to drive the recovery. The birth rate among women aged 30 to 34 climbed to 86.8 births per 1,000 women, up 12.7 from a year earlier, while that for women aged 35 to 39 rose to 63.4, up 12.3. Birth rates also increased among women in their late 20s, though those aged 24 and younger remained on a downward trend. By birth order, first-born children accounted for 62.2 percent of births and second-born children 32.2 percent, both slightly higher than a year earlier, while the share of third or later children fell to 5.6 percent. Deaths fell 1.3 percent to 28,405 in April, leaving the country with a natural population decline of 3,884 people. That was a marked improvement from the loss of 8,004 recorded a year earlier. Still, experts urged caution against declaring victory. When South Korea's fertility rate climbed to 0.99 in January, experts attributed much of the rebound to the so-called second echo-boom generation — those born between 1991 and 1995, the children of the country's second baby boomers — entering their peak marriage and childbearing years. That demographic support is expected to continue for another two to three years, but analysts say it should not be mistaken for a permanent shift. 2026-06-24 14:24:38 -
Seoul seeks to raise free subway age to 70 SEOUL, June 24 (AJP) - South Korea's capital is moving to overhaul one of its longest-standing welfare benefits for older citizens, proposing to raise the eligibility age for free subway rides from 65 to 70 as the country grapples with the realities of a superaged society. If approved, the ordinance would authorize the Seoul city government to offer free or discounted bus rides to residents aged 70 and older who live in the city. The city would decide later how many free rides would be provided and who would qualify for the benefit. The ordinance up for a vote on Wednesday does not itself change the eligibility age for free subway rides. Instead, it would provide the legal basis for Seoul's broader transportation reform, with details to be finalized through future legislation and administrative measures. The measure is part of Seoul Mayor Oh Se-hoon's broader effort to reform transportation benefits for South Korea's aging population and was one of his key campaign pledges during this month's local elections. After winning reelection, Oh met with the head of the Seoul Federation of the Korean Senior Citizens Association on June 19 to discuss senior transportation policies. The association welcomed the proposal, saying the change would better reflect fiscal sustainability and South Korea's changing demographics. The proposal reflects growing concerns that South Korea's decades-old senior transportation system no longer matches the country's demographic reality. People aged 65 and older have long been entitled to unlimited free subway rides, a benefit that has remained largely unchanged for nearly 40 years despite rapid population aging and longer life expectancy. City officials say the reform aims to make the system more sustainable while expanding transportation options for older residents. The city is considering limiting free bus rides to 14 trips a month. According to estimates by the Seoul Metropolitan Council, a fully free bus program for all eligible seniors would cost more than 100 billion won ($73 million) annually and approximately 578.9 billion won over five years. Officials said the actual burden would likely be lower if the city adopts a monthly cap on the number of free rides. Any savings generated by raising the eligibility age for free subway rides could also offset part of the cost of the new bus program. The measure is widely expected to pass, as the conservative People Power Party holds a majority in the Seoul Metropolitan Council with 68 of its 106 seats, while also gaining support from senior citizens' groups. The debate mirrors broader social changes in South Korea, where people are living longer and remaining economically active well beyond traditional retirement age. According to the Ministry of Health and Welfare's 2023 survey on older adults, South Koreans now consider the average age at which a person becomes "elderly" to be 71.6 years. Meanwhile, the labor force participation rate among people aged 65 and older rose to 40.7 percent last year from 29.5 percent in 2000. If the ordinance passes, Seoul plans to proceed with further public consultations and budget discussions before deciding when to implement the revised transportation benefits program. 2026-06-24 10:49:51 -
Korea's new obsession: borrowing to buy stocks, not homes SEOUL, June 23 (AJP) - South Korea's stock craze has reached a point where borrowing to buy shares is becoming more socially acceptable than borrowing to buy an apartment. The shift reflects a profound change in a country long defined by its obsession with real estate, as millions of Koreans pour into a handful of AI-related stocks in pursuit of rapid wealth creation. Tuesday's selloff offered a reminder of how fragile that enthusiasm can be. The benchmark KOSPI crashed nearly 10 percent, while the junior KOSDAQ plunged almost 8 percent as a broad market correction swept through Seoul. Only 46 stocks advanced against 859 decliners on the main board, while 134 gained versus 1,574 losers on the KOSDAQ. For Korea's "ants" — the nickname for retail investors — it was a bruising day. Yet the mania itself shows little sign of cooling. Stocks dominate lunchtime conversations, subway rides and office meetings. Fear of missing out, or FOMO, has pushed leveraged investment to unprecedented levels, overtaking concerns that once centered almost exclusively on the housing market. Margin loans reached a record 38.48 trillion won ($28 billion) as of June 19, according to the Korea Financial Investment Association, after the KOSPI broke above 9,000 for the first time in history. The psychology surrounding wealth accumulation is changing alongside the money. According to the 2026 Korea Wealth Report by Hana Financial Research Institute, 43 percent of wealthy Koreans with more than 1 billion won ($730,000) in financial assets said financial investments are now a more effective way to build wealth than real estate. The findings point to a remarkable reversal in a country where apartment ownership has long been treated as the ultimate measure of financial success. But the fever is highly concentrated. "It's like college admissions," said Park Jae-ha, a day trader in his 20s. "There are many universities, but everyone only wants to get into SKY." In Korea's stock market, the equivalent of SKY — shorthand for Seoul National University, Korea University and Yonsei University — has become a small group of AI winners led by Samsung Electronics and SK hynix. The divergence is becoming extreme. According to market data provider MP Doctor, the KOSPI surged 11.43 percent during the week of June 15-19, making it the best-performing major stock index among G20 economies. The KOSDAQ, by contrast, fell 6.07 percent during the same period, making it the worst performer in the group. Over the past month, the junior index has slumped 16.75 percent. The gap has widened all year. While the KOSPI has soared 114.81 percent so far this year, the KOSDAQ has gained just 4.44 percent. The junior market now accounts for only 6.8 percent of South Korea's total stock market capitalization, its lowest share since 1999. The concentration is visible even in borrowing. Of the record 38.48 trillion won in margin loans, 29.4 trillion won was tied to KOSPI stocks, compared with 9.08 trillion won for the KOSDAQ. Analysts cite three drivers behind the divide: money flows, earnings and interest rates. Semiconductor giants continue to enjoy rising profit forecasts as global AI investment accelerates, while many KOSDAQ companies, concentrated in biotechnology and battery sectors, have struggled to generate comparable earnings momentum. Higher interest rates have added further pressure. Growth stocks tend to be more sensitive to tighter liquidity conditions, leaving the KOSDAQ particularly vulnerable as monetary policy turns more hawkish. "For money to return to the KOSDAQ, the current rally in large-cap stocks would first have to end," said Lee Jae-won, an analyst at Yuanta Securities. That bleak outlook is already visible online. KOSDAQ investor communities have become increasingly bitter as the performance gap with the KOSPI widens. "It's a pyramid," one investor wrote. "The winners at the top keep getting richer while the rest keep slipping." Some have turned their frustration toward policymakers. "Even when chip stocks rise in the U.S., biotech doesn't collapse," another investor wrote. "If pharmaceuticals and biotech continue to suffer because of this semiconductor obsession in Korea, financial authorities have made a serious mistake." Others have simply given up. "For now, staying out of the market is an investment strategy," one post read. Meanwhile, optimism thrives elsewhere. "This is a historic moment," one investor wrote. Another recalled advice from a friend who made 1 billion won during the rally. "Never sell Samsung and SK hynix. Just be patient." Regulators, however, are increasingly uneasy. Lee Chan-jin on Monday openly regretted approving single-stock leveraged ETFs tied to Samsung Electronics and SK hynix, saying the products had produced limited benefits while exposing retail investors to mounting risks. "I personally regret the timing of the approval," he said. The products were introduced last month to encourage domestic investors to gain leveraged exposure at home instead of turning to overseas markets. "The effect has been minimal, but the side effects have become too significant," Lee said. He warned that the products encourage excessive trading and primarily benefit securities firms rather than investors. "There is a risk that investors gain little while securities firms and liquidity providers earn most of the profits." Lee said turnover in some single-stock leveraged ETFs reached 200 percent and remains around 130 percent. He estimated cumulative trading commissions generated by the products at between 5 trillion won and 10 trillion won. In one of his strongest remarks, he even expressed personal regret. "Maybe I should have physically blocked the approval process at the time," he said. The regulator is now discussing possible measures with policymakers, including safeguards on margin and credit-backed trading. Yet the warnings have done little to dampen enthusiasm. "I refresh the app over and over, sometimes several times a minute," said Dan Kim, 36, who owns SK hynix, Samsung Electronics, Samsung Electro-Mechanics and the TIGER U.S. S&P 500 ETF. "Yesterday was all red, and now I check again today and it's all blue. Honestly, maybe I'd be better off not looking at it at all." Still, he keeps checking. "I never invested before," said H.K., who runs a cafe in Seoul. "Every customer who comes into my cafe seems to be talking about stocks these days — Samsung, SK hynix, ETFs. At some point, I started to feel like I was the only one not in the game." Some are getting rich. Others are being left behind. As more Koreans borrow money to chase a handful of AI winners, the country's defining asset bubble may no longer be apartments. It may be a handful of stocks. And the biggest question may no longer be who is winning today, but who will still be standing when the rally eventually cools. 2026-06-23 17:36:40