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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South Korean investors turn cautious after leveraged ETF frenzy SEOUL, August 5 (AJP) - Just weeks ago, South Korea's stock market looked less like an equity market than a high-stakes casino as some observers put it. Retail investors poured hundreds of trillions of won into newly launched single-stock leveraged exchange-traded funds (ETFs) linked to the country's two major chipmakers Samsung Electronics and SK hynix, fueling one of the sharpest boom-and-bust cycles in the country's stock market history. Circuit breakers were activated on consecutive trading days for the first time, as investors who had borrowed heavily to buy stocks were forced into widespread selling as prices collapsed. Regulators, meanwhile, came under fire for failing to curb the rapid spread of highly speculative products. But the mood has shifted. Both regulators and investors are now navigating a gradual retreat from leverage after one of the most volatile episodes in the country's stock market history. The clearest sign is how quickly leverage itself is disappearing. Trading in 16 leveraged and inverse ETFs linked to Samsung Electronics and SK hynix has collapsed since regulators raised the minimum cash deposit requirement to 30 million won (about US$20,000) on July 31. Turnover fell from roughly 12.4 trillion won on July 30 to about 3 trillion won on the day the rule took effect, before dropping again to around 1.2 trillion won two trading days later — about one-tenth of the level seen before the regulation. Other indicators also point to a broad reduction in risk-taking. According to the Korea Financial Investment Association (KOFIA), outstanding margin loans — money borrowed from brokerages to buy stocks — fell below 30 trillion won at the end of July for the first time in six months. The balance has shrunk by nearly 10 trillion won from its June 24 peak of 38.6 trillion won, meaning more than a quarter of margin financing has disappeared in little over a month. Loans backed by stocks also declined sharply. Outstanding balances fell to about 25.4 trillion won as of July 31, down nearly 3 trillion won from 28.1 trillion won on March 5. The decline was compounded by a wave of forced liquidations after the market's sharp selloff, as investors either repaid debt voluntarily or had their positions liquidated by brokerages after failing to meet margin requirements. Those liquidations totaled 103.8 billion won on July 30 and 122.0 billion won on July 31 following consecutive market-wide circuit breakers. Taken together, the data point to a broad deleveraging across South Korea's retail investment market rather than a retreat confined to leveraged ETFs alone. For regulators, that appears to be the intended outcome. Authorities tightened suitability requirements and tripled the minimum cash deposit for single-stock leveraged ETFs after the products came to dominate ETF trading within weeks of their launch. Officials argued the products had magnified volatility by encouraging short-term speculation around just two companies that dominate the country's equity market. Early data suggest the measures are beginning to have the intended effect. Trading in single-stock leveraged ETFs has fallen sharply while the broader market has remained orderly, indicating that speculative activity has cooled without causing broader market disruption. Investors, meanwhile, also appear to be drawing lessons from one of the most violent corrections in the market's history. The KOSPI has recovered above the 6,300 level after plunging nearly 44 percent from its late-June peak, but margin borrowing and leveraged ETF trading remain well below the levels seen before the selloff. The contrast suggests many retail investors are still reluctant to return to highly leveraged bets. That shift is no longer confined to the domestic market. After buying a net $3.79 billion of the Direxion Daily Semiconductor Bull 3X Shares ETF (SOXL), a leveraged fund designed to deliver three times the daily return of the Philadelphia Semiconductor Index, in July, Korean retail investors turned into net sellers at the start of August. On Aug. 3 alone, they sold a net $664 million — nearly one-fifth of their total July purchases — before returning to modest net buying the following day. The selling did not signal a broader retreat from U.S. equities. Korean investors remained net buyers of U.S. stocks, purchasing a net $278 million in early August, while rotating into semiconductor companies including Micron Technology, Sandisk and SK hynix's U.S.-listed ADR, all of which ranked among their most-bought stocks over the period. The pattern suggests investors are becoming more selective, shifting away from leveraged products while maintaining confidence in the long-term AI investment theme. The retreat from leverage, however, does not mean the underlying risks have disappeared. It is changing who bears them. According to Bloomberg, demand has surged for over-the-counter derivatives known as "crash puts" or "stability notes." The products are designed to protect investment banks against the unlikely but potentially devastating scenario in which a stock loses roughly half of its value in a single trading session. Instead of keeping that risk themselves, banks pay other investors to take it on in exchange for higher returns. Goldman Sachs and BNP Paribas have reportedly marketed such products linked to Samsung Electronics and SK hynix, offering double-digit returns to investors willing to absorb losses if an extreme one-day market collapse occurs. South Korea's experience reflects a broader trend. As leveraged ETFs continue to expand globally, financial institutions are developing increasingly sophisticated ways to redistribute the risks created by those products rather than keeping them on their own balance sheets. The speculative frenzy may be cooling. Whether the risks have been reduced - or simply redistributed - may prove to be the market's next lesson. AJP Takeaways: — South Korea's retail investors have sharply reduced leverage since July 31, 2026, after regulators tripled the minimum cash deposit requirement for single-stock leveraged exchange-traded funds (ETFs) from 10 million won to 30 million won. — Trading in Samsung Electronics and SK hynix leveraged and inverse ETFs has fallen by about 90 percent, with daily turnover dropping from roughly 12.4 trillion won on July 30, 2026, to around 1.2 trillion won two trading days after the new rules took effect. — Margin borrowing has also declined significantly. Outstanding margin loans fell below 30 trillion won at the end of July 2026 for the first time in six months, down nearly 10 trillion won from the June 24, 2026 peak. — Outstanding loans backed by stocks declined to about 25.4 trillion won as of July 31, 2026, indicating that investors are relying less on borrowed money to invest in equities. — According to Bloomberg, investment banks including Goldman Sachs and BNP Paribas have marketed over-the-counter derivatives such as "crash puts" and "stability notes" that transfer extreme market risk to investors willing to accept higher potential returns. 2026-08-05 17:53:47 -
KOSPI rebounds above 6,500 as foreign investors return amid global chip rally SEOUL, August 5 (AJP) - South Korean stocks extended their rally on Wednesday, with the benchmark KOSPI climbing back above 6,500 as foreign investors returned to the market as net buyers. The rally was further supported by strength in global semiconductor shares and easing Middle East tensions. The KOSPI closed 3.76 percent higher at 6,598.26 after rising as much as 6,674.66 intraday. The surge triggered a buy-side sidecar early in the session, while the junior KOSDAQ gained 2.42 percent to 799.59 after briefly climbing above the 800-point level for the first time in 13 trading days. Foreign investors drove the advance, purchasing a net 1.45 trillion won (US$1.04 billion) worth of KOSPI shares, while individuals and institutions sold a combined 1.47 trillion won to lock in profits following recent gains. Despite the strong buying in the cash market, foreigners remained modest net sellers of KOSPI200 futures, unloading a net 135.7 billion won. Semiconductor heavyweights once again led gains after a strong overnight rally in U.S. technology stocks. SK hynix jumped 5.77 percent to close at 1,668,000 won, while Samsung Electronics gained 2.50 percent to 246,000 won. Samsung Electro-Mechanics soared 14.43 percent to 1,356,000 won, and SK Square added 5.57 percent to 1,119,000 won as buying spread across the Artificial Intelligence (AI)-related semiconductor supply chain. Automakers also traded higher, with Hyundai Motor rising 3.06 percent to 404,500 won and Kia gaining 2.62 percent to 133,000 won. Among industrial and defense names, Samsung C&T climbed 7.75 percent to 347,500 won, HD Hyundai Heavy Industries advanced 5.38 percent to 509,000 won, Doosan Enerbility gained 5.48 percent to 77,000 won, and Hanwha Aerospace edged up 0.30 percent to 1,007,000 won. Financials and other large-cap stocks also finished higher, with Samsung Life Insurance rising 5.76 percent to 294,000 won, KB Financial adding 1.13 percent to 170,700 won, LG Energy Solution gaining 2.13 percent to 335,500 won, and Samsung Biologics inching up 1.02 percent to 1,491,000 won. Sentiment was boosted after Wall Street rallied overnight. The S&P 500 and Dow Jones Industrial Average both closed at record highs, while the Nasdaq gained 2.59 percent. The advance was fueled by optimism that the United States and Iran were nearing an agreement to reopen the Strait of Hormuz, easing concerns over global energy supplies and pushing U.S. crude oil futures down 5.7 percent. Technology shares also advanced after Advanced Micro Devices (AMD) reported better-than-expected second-quarter revenue and earnings and issued third-quarter sales guidance above market forecasts, reinforcing confidence that AI spending remains resilient. AI software company Palantir Technologies also surged 29.45 percent after reporting strong quarterly results, while Nvidia gained 2.56 percent, Micron Technology rose 7.62 percent and Intel climbed 10.84 percent. The gains pushed the Philadelphia Semiconductor Index higher and lifted semiconductor shares globally. SK hynix's U.S.-listed ADRs also advanced 8.17 percent overnight, reinforcing bullish sentiment toward South Korean chipmakers. The KOSDAQ rose for a fourth straight session, bringing its four-day gain to about 24 percent. Among major stocks, Alteogen rose 3.75 percent after announcing a 500 billion won licensing agreement with a global pharmaceutical company. Rainbow Robotics gained 3.64 percent, while Jusung Engineering and Wonik IPS climbed 5.07 percent and 1.24 percent, respectively. Optical communication stocks outperformed after reports that the United States is preparing restrictions on imports of certain Chinese-made components used in data centers. Lightron closed at the daily 30 percent limit, while Taihan Fiberoptics jumped 18.57 percent. Trading activity remained elevated, with turnover totalling 25.5 trillion won on the main board and 6.3 trillion won on the junior market. The currency market also reflected the improved sentiment. The Korean won strengthened to 1,426.50 per dollar from 1,432.50 won in the previous close. Regional markets also advanced. Japan's Nikkei 225 climbed 3.66 percent to 66,300.44, while China's Shanghai Composite gained 1.47 percent to 3,878.43 and Hong Kong's Hang Seng Index edged up 0.21 percent to 25,907.17. 2026-08-05 17:32:13 -
FSC pushes back on Bloomberg's 'uninvestable' claim SEOUL, August 05 (AJP) — South Korea's financial regulator has rejected a Bloomberg column that described the country as becoming "uninvestable," saying the assessment relied on inaccurate data and overlooked the country's economic fundamentals. The Financial Services Commission (FSC) in a statement released late Tuesday said there was no basis for concerns that South Korea could be regarded as an uninvestable market, saying the country has emerged as an irreplaceable part of the global artificial intelligence (AI) supply chain and continues to attract investment. The response came after Bloomberg columnist Shuli Ren argued in a recent column titled "South Korea is Becoming Uninvestable, Too" that even investors who remain optimistic about the global AI boom could choose to stay away from South Korean stocks because of growing concerns over the market's volatility. The FSC disputed the statistics cited in the column, claiming they did not match officially verified data and that the source of the figures was unclear. The regulator noted that forced liquidations involving margin loans and unpaid purchases averaged about 3,000 accounts per day in June, far below the 360,000 accounts cited. It also added that the country’s economic fundamentals remained solid, citing second-quarter GDP growth of 3.7 percent from a year earlier and a record current account surplus of $38.61 billion in May. It said expectations for listed companies' earnings have continued to improve on optimism over the AI and semiconductor industries, even after the KOSPI reached its recent peak. According to FnGuide data cited by the FSC, projected earnings for KOSPI-listed companies rose from 644 trillion won ($465 billion) at the end of March to 978 trillion won as of Tuesday. Notably, forecasts continued to improve after the KOSPI's late-June peak, rising from 930 trillion won to 978 trillion won. Turning to the recent market turbulence, the regulator said the sharp volatility since mid-June reflected a combination of factors rather than a deterioration in the country's economic fundamentals, adding that market conditions were beginning to stabilize. It pointed to recent measures targeting single-stock leveraged exchange-traded funds (ETFs), saying the government was working to curb risks associated with the products while maintaining overall market stability. Daily turnover in the ETFs fell to 1.3 trillion won on Tuesday, down from 12.4 trillion won before the higher minimum cash deposit requirement took effect on July 30 and 19.4 trillion won at its peak on June 25. "We will continue to manage short-term market volatility while advancing measures to strengthen the capital market and support long-term growth," the FSC said. AJP Takeaways: — On Aug. 5, 2026, the Financial Services Commission (FSC) rejected a Bloomberg opinion column that described South Korea as becoming "uninvestable," saying the assessment relied on inaccurate data and did not reflect the country's economic fundamentals. — The FSC said South Korea remains an important destination for investment, citing its role in the global artificial intelligence (AI) and semiconductor supply chain, stronger corporate earnings expectations and support from domestic and international investment banks. — The regulator said forced liquidations involving margin loans and unpaid purchases averaged about 3,000 accounts per day in June 2026, disputing the Bloomberg column's reference to 360,000 accounts. — The FSC said recent market volatility reflected multiple factors rather than weakening economic fundamentals and pointed to a sharp decline in trading of single-stock leveraged exchange-traded funds (ETFs) following tighter regulations introduced on July 30, 2026. — The Financial Services Commission said it will continue managing short-term market volatility while pursuing measures to strengthen South Korea's capital market and support long-term growth. 2026-08-05 14:18:11 -
Kakao Games trims losses, eyes recovery with new lineup SEOUL, August 05 (AJP) — Shares of South Korean game developer Kakao Games fell Wednesday morning trading after the company reported lower second-quarter revenue, although its operating loss narrowed from the previous quarter. According to a filing with the Financial Supervisory Service (FSS) Wednesday, the company posted revenue of 75.0 billion won ($54 million), down 35.2 percent from a year earlier, while its operating loss narrowed to 23.0 billion won from 25.5 billion won in the previous quarter. The stock was trading 4.7 percent lower at 7,950 won in the morning trading. Revenue fell as sales from existing games continued to decline and no major new titles were released during the quarter. Although the company remained in the red, ongoing restructuring efforts helped reduce its operating loss from the previous quarter. Mobile game sales totaled 52.7 billion won, while PC online game revenue rose 51 percent from a year earlier to 22.3 billion won, serving as a key support for the quarter. Meanwhile, net loss widened to 57.0 billion won from 39.5 billion won, and pretax loss increased to 64.5 billion won from 45.8 billion won. Looking ahead, the company plans to launch a series of major new titles from the third quarter as it seeks to revive earnings. It will open pre-registration later this month for its Korean fantasy multiplayer online role-playing game (MMORPG) "Dokkaebi's World," inspired by Korea's traditional folklore and mythical goblins known as dokkaebi, ahead of its planned launch in October. The upcoming lineup also includes adventure game "Dungeon Arise" and zombie survival game "God Save Birmingham," both scheduled for release later this year. "Odin Q: Valkyries Call," the latest game in the Odin series, is planned for early next year. The company has also secured global publishing rights for "ArcheAge S: Strait of Freedom" and "Guardian Maiden," a collectible action game, as it expands its future lineup. It is also developing new games based on popular Korean webtoons and comics with The Grimm Entertainment, a South Korean webtoon production company. Separately, Kakao Games is stepping up shareholder returns. Its plans include cancelling 500,000 treasury shares, introducing restricted stock units (RSUs), transferring part of its capital reserve to retained earnings, and encouraging executives to increase their shareholdings. "We will focus on delivering high-quality games with strong global potential while strengthening the foundation for sustainable growth," Chief Executive Officer Lee Si-woo said. "We will continue to roll out new titles while maintaining transparent communication with users and shareholders." AJP Takeaways — Kakao Games reported second-quarter 2026 revenue of 75.0 billion won ($54.3 million), down 35.2% from a year earlier. — Kakao Games’ second-quarter 2026 operating loss narrowed to 23.0 billion won from 25.5 billion won in the first quarter of 2026. — Kakao Games plans to begin pre-registration for the Korean fantasy MMORPG Dokkaebi’s World in August 2026 and target a full launch in October 2026. — The company plans to release Dungeon Arise and God Save Birmingham later in 2026, followed by Odin Q: Valkyries Call in early 2027. — Shareholder-return measures include cancelling 500,000 treasury shares, introducing restricted stock units, reallocating capital reserves to retained earnings and increasing executive share ownership. 2026-08-05 10:58:33 -
KOSDAQ continues to outperform KOSPI after tightened rules on leveraged ETFs SEOUL, August 4 (AJP) - South Korea's junior KOSDAQ outperformed the benchmark KOSPI for a third straight session on Tuesday, extending its broad rally. Tighter regulations on single-stock leveraged exchange-traded funds (ETFs) reduced trading in chip stocks, broadening gains to biotechnology, robotics and other growth stocks. The KOSDAQ closed at 780.72 points, up 5.88 percent, while the KOSPI gained 1.62 percent to 6,358.95. The latest gain marked the third consecutive session of KOSDAQ outperformance since stricter rules on single-stock leveraged products took effect on July 31. The KOSDAQ closed at 780.72 points, up 5.88 percent, while the KOSPI gained 1.62 percent to 6,358.95. The latest advance marked the third consecutive session of KOSDAQ outperformance since stricter rules on these EFFs took effect on July 31. Under the revised rules, the minimum cash deposit required to trade them was raised to 30 million won (US$21,600) from 10 million won, and investors can no longer use stock or ETF holdings to meet the requirement. The measures followed sharp volatility in leveraged products linked to the country's two chip giants Samsung Electronics and SK hynix. Turnover in the 16 leveraged and inverse ETFs tied to Samsung Electronics and SK hynix fell from 12.45 trillion won on July 30 to 1.39 trillion won on Monday, down 88.9 percent from the day before the new rules took effect. Despite sharp intraday swings, Samsung Electronics and SK hynix both finished higher. Samsung Electronics, which briefly fell as much as 4.80 percent after opening 2.09 percent higher, recovered late in the session to close up 0.21 percent at 240,000 won. SK hynix also rebounded from an intraday decline of as much as 5.36 percent after rising more than 4 percent earlier in the day, ending 0.64 percent higher at 1,577,000 won. Elsewhere on the KOSPI, Hanwha Aerospace surged 9.25 percent to 1,004,000 won, LG Energy Solution climbed 3.96 percent to 328,500 won, Samsung Biologics advanced 3.72 percent to 1,476,000 won and SK Square rose 3.41 percent to 1,060,000 won. While the slowdown does not necessarily mean money has flowed directly into the junior stocks, market participants said reduced concentration in Samsung Electronics and SK hynix has created room for investors to rotate into previously overlooked sectors. Foreign investors also reinforced the shift by buying KOSDAQ shares before the new rules took effect. They were net buyers for four consecutive sessions from July 28 through July 31, despite two circuit breakers during the market selloff, favoring growth stocks such as Rainbow Robotics, Alteogen, EcoPro, PharmaResearch, Techwing and Robotis. The rotation remained evident on Tuesday. Alteogen jumped 9.29 percent to 347,000 won, HLB gained 11.17 percent to 34,350 won, ABL Bio soared 13.24 percent to 80,400 won and LigaChem Biosciences climbed 15.20 percent to 109,900 won. Robotics shares also advanced, with Robotis rising 7.89 percent to 232,500 won and Rainbow Robotics adding 1.85 percent to 467,000 won, while battery materials makers EcoPro and EcoPro BM gained 5.94 percent to 82,000 won and 5.89 percent to 102,500 won, respectively. Still, some analysts cautioned against assuming money leaving leveraged ETFs has flowed directly into individual KOSDAQ stocks. According to Hyundai Motor Securities, retail investors' net purchases of domestic equity ETFs excluding single-stock leveraged products rose from 2.2 trillion won between May 27 and the end of June to 4.7 trillion won in July, suggesting many simply switched to other ETF products rather than individual shares. Nevertheless, institutional investors bought a net 543.4 billion won worth of KOSDAQ shares on Tuesday, offsetting net sales of 277.2 billion won by foreign investors and 258.7 billion won by retail investors, helping extend its rally. Across Asia, Japan's Nikkei 225 gained 0.32 percent to close at 63,957.53, extending strength in technology-related shares. China's Shanghai Composite rose 0.33 percent to 3,822.28, while Hong Kong's Hang Seng Index fell 0.77 percent to 25,807.95 as investors locked in recent gains. 2026-08-04 17:25:58 -
AI startup XIIlab's shares soar as new contract fuels earnings hopes SEOUL, August 4 (AJP) - Artificial intelligence (AI) startup XIIlab saw its shares rise on the junior KOSDAQ on Tuesday. The stock closed at 11,020 won (US$7.93), up 17.23 percent from the previous session, after surging as much as 30 percent during the session to hit the daily price limit of 12,220 won. The rise came after the startup announced that it had signed a contract worth 30.7 billion won with BNINC, an AI infrastructure provider, to supply software for the National IT Industry Promotion Agency's project to procure next-generation high-performance AI computing resources including 2,016 NVIDIA Vera Rubin GPUs. The deal, valued at nearly three times the company's annual revenue, raised expectations for a sharp increase in future earnings. Running from Aug. 4 through March 2027, the deal follows a series of major AI infrastructure projects secured by XIIlab. Earlier this year, it signed a contract with Samsung SDS to support the construction of AI computing infrastructure, which provides the high-performance computing power needed for AI development. It also won a contract last month to supply software for NVIDIA Spectrum-X, a networking platform designed to enable AI servers to communicate more efficiently. Founded in 2010, XIIlab develops AI software that analyzes video to identify people, objects and events. It also creates synthetic data for AI training and develops GPU-based software used in AI computing systems. 2026-08-04 16:37:51 -
BECUAI hits daily limit on return from capital reduction SEOUL, August 04 (AJP) — Shares of South Korean artificial intelligence (AI) data company BECUAI surged to the daily 30 percent trading limit on Tuesday as trading resumed following a capital reduction, while growing demand for licensed AI training data added to positive sentiment. The stock was trading at 2,990 won ($2.15), up 30 percent from the previous close Tuesday, according to the Korea Exchange. Trading resumed after the company reduced the number of outstanding shares to 6.29 million from 31.45 million. While the capital reduction did not change the company's underlying value, investor sentiment was supported by expectations that the move would help improve shareholder value following a prolonged decline in the stock price. The company said inquiries from domestic and global technology companies have increased after The New York Times sued OpenAI for using its copyrighted articles to train AI models without permission. The case has prompted AI companies to place greater emphasis on licensing news content from publishers to reduce legal risks. The company is also stepping up efforts to boost shareholder value. Chief Executive Officer Im Kyoung-hwan, the company's largest shareholder, plans to increase his stake by about 3 percent through open-market purchases. BECUAI will also hold an investor relations presentation hosted by the KOSDAQ Association on Aug. 10 to introduce its business and growth strategy to institutional investors, shareholders and the media, according to a Korea Exchange filing. Founded in 1998, BECUAI supplies licensed news, video and image data used to train AI models. It also develops AI software and services for corporates, including Samsung Electronics, LG, SK Telecom and KT. 2026-08-04 15:15:33 -
Korean issues in short-term debt hit record high H1 SEOUL, August 04 (AJP) —South Korean companies increasingly turned to short-term borrowing in the first half as higher funding costs and a sluggish capital market outside the semiconductor sector pushed issuers away from longer-term financing. According to the Financial Supervisory Service (FSS) on Tuesday, companies raised a record 1,272.8 trillion won ($917 billion) through commercial paper (CP) and short-term notes during the January-June period, up 68 percent from a year earlier, while equity and corporate bond issuance fell 15.6 percent to 126.6 trillion won. Electronically registered short-term notes — debt securities with maturities of up to one year sold directly to investors — surged to a first-half record 990 trillion won ($713 billion), nearly doubling from a year earlier. Commercial paper, unsecured short-term promissory notes, also reached a record 282.7 trillion won, up 19 percent. The shift reflected growing reliance on short-term funding by both financial institutions and non-financial companies, which together issued an additional 441.9 trillion won in short-term debt from a year earlier. Issuance of asset-backed commercial paper also increased by 7.1 trillion won. Brokerages were among the biggest issuers as surging retail stock trading increased demand for margin financing and settlement funding. For non-financial companies, however, the move underscored the widening divide in corporate credit markets. With long-term borrowing costs remaining elevated, lower-rated issuers increasingly opted for shorter maturities instead of locking in expensive bond financing. According to the Korea Financial Investment Association, yields on three-year BBB-minus unsecured corporate bonds stood at 10.258 percent, more than double the 4.462 percent yield for AA-minus issuers. The sharp funding premium effectively shut many lower-rated borrowers out of the long-term bond market. The deterioration was also evident in direct financing. Total equity and corporate bond issuance dropped 15.6 percent from a year earlier to 126.6 trillion won, driven largely by weaker corporate bond issuance. Equity fundraising fell 29.6 percent to 2.98 trillion won as initial public offerings declined to 28 from 42 a year earlier and most listings were relatively small. Rights offerings also dropped 29.5 percent to 1.96 trillion won because there were fewer large capital raisings exceeding 100 billion won. Corporate bond issuance declined 15.2 percent to 123.6 trillion won. Corporate bond sales plunged 31.5 percent to 25.9 trillion won, primarily because companies issued fewer refinancing bonds. Refinancing dominated issuance. Debt rollovers accounted for 72.9 percent of proceeds, while only 23.6 percent funded operating expenses and just 3.6 percent financed capital investment, highlighting limited appetite for new investment despite improving economic growth. Financial bond issuance fell 7.2 percent overall as weaker issuance by non-bank financial institutions offset modest increases by banks and financial holding companies. Asset-backed securities issuance also declined 30.6 percent to 7.3 trillion won. 2026-08-04 13:15:28 -
KOSPI slides after historic rally as chip stocks plunge SEOUL, August 3 (AJP) - South Korea's stock market tumbled on Monday, with Samsung Electronics and SK hynix both sinking more than 8 percent, sending the country's benchmark KOSPI back below 6,300 points. The decline erased much of Friday's historic rebound, which proved short-lived. The index closed 5.12 percent lower at 6,257.45 as foreign and institutional investors extended heavy selling despite aggressive buying by retail investors. Individuals snapped up a net 4.65 trillion won (US$3.3 billion) worth of shares, but it was not enough to offset net sales of 1.95 trillion won by institutions and 2.83 trillion won by foreign investors. Foreign investors also remained net sellers in the KOSPI 200 futures market, adding pressure to the broader index. The junior KOSDAQ, however, bucked the broader downward trend, rising 2.44 percent to 737.35 as investors shifted buying toward biotechnology and robotics shares. The decline came even after U.S. investment bank Morgan Stanley took a favorable stance, raising its rating on South Korean equities from "equal weight" to "overweight," indicating a more positive outlook and its view that South Korean stocks could outperform. It said the recent market turmoil was mainly caused by technical factors rather than a deterioration in corporate fundamentals. The bank said much of the recent deleveraging had already run its course, with the wave of forced selling largely over, and reiterated its year-end KOSPI target of 9,000. The market, however, remained under pressure from short-term profit-taking following last Friday's record-setting rally, when the KOSPI surged 17.91 percent on strong foreign buying and growing optimism over global investment in artificial intelligence (AI). Samsung Electronics plunged 8.76 percent to 239,000 won, while SK hynix tumbled 8.79 percent to 1,567,000 won. The South Korean won also weakened, with the dollar trading at 1,430.8 won, up from 1,424.0 won in the previous session, as foreign investors continued selling domestic stocks. Despite the sharp pullback in semiconductor leaders, the broader AI supply chain remained more resilient. Samsung Electro-Mechanics rose 3.42 percent to 1,181,000 won, while Hyosung Heavy Industries gained 3.23 percent to 2,495,000 won and LS Electric added 1.95 percent to 188,400 won. Hyundai Motor rose 1.29 percent to 393,000 won as investors rotated into robotics plays after the United States tightened restrictions on Chinese robot imports, fueling expectations that Korean companies could gain market share. Affiliate Hyundai AutoEver surged 4.94 percent to 382,500 won while Hyundai Mobis climbed 3.68 percent to 493,500 won. Doosan also jumped 5.81 percent after investors welcomed its planned acquisition of SK Siltron. Sentiment was further boosted after Eugene Investment & Securities raised its target price, citing stronger long-term growth prospects from the deal. The divergence was even more pronounced on the KOSDAQ, where biotechnology and robotics stocks extended recent gains. Alteogen climbed 2.92 percent to 317,500 won, HLB added 0.98 percent to 30,900 won and Rainbow Robotics gained 5.89 percent to 458,500 won. Among the day's biggest movers, ALT, an AI media and telecommunications device maker, rose 29.97 percent to 1,492 won. Wonik Holdings, a semiconductor and display materials company surged 29.97 percent to 19,860 won, Cosmo Robotix jumped 21.30 percent to 17,880 won and home appliance maker Winix soared 21.45 percent to 5,860 won. The KOSDAQ's strength triggered a buy-side sidecar for the second consecutive session during morning trading, signaling continued investor demand for high-growth sectors even as large-cap semiconductor shares declined. Across Asia, Japan's Nikkei 225 fell 0.94 percent to 63,754.90 as a stronger yen weighed on exporters and technology stocks, while China's Shanghai Composite slipped 0.59 percent to 3,809.66. Hong Kong's Hang Seng Index bucked the regional trend, rising 0.30 percent to 25,962.22 supported by bargain hunting in technology shares after recent market volatility. 2026-08-03 17:50:24 -
Korea's 40C heat sends KOSDAQ-listed cooling appliance stocks soaring SEOUL, August 03 (AJP) — Cooling appliance stocks on South Korea's junior KOSDAQ market rallied Monday as record-breaking heat and prolonged tropical nights fueled demand for air conditioners, fans and dehumidifiers. Winix, which manufactures dehumidifiers and other home appliances, jumped 21.45 percent to close at 5,860 won. Paseco and Shinil Electronics, both known for electric fans and seasonal home appliances, gained 10.44 percent and 3.56 percent, respectively. SPG, a motor manufacturer whose products are widely used in cooling appliances and industrial equipment, rose 14.90 percent. The gains came as the country experienced one of its most severe heat waves on record, with temperatures climbing above 40 degrees Celsius in some areas. Investors piled into shares of cooling appliance makers on expectations that demand would remain strong despite broader market volatility. Early consumer data also suggest that demand is accelerating. According to the Korea Consumer Agency, inquiries about air conditioners in June surged 111 percent from the previous month, while those for electric fans climbed 109 percent. Forecasters expect the heat wave to continue. The Korea Meteorological Administration (KMA) warned on Monday that "parts of the Jeolla and Gyeongsang regions are expected to experience life-threatening levels of extreme heat, with maximum temperatures reaching 39 degrees Celsius." The agency issued its highest-level heat warnings for parts of South Jeolla and South Gyeongsang provinces. The agency urged people to avoid unnecessary outdoor activities, stay in air-conditioned places and remain hydrated. It also advised people to check on family members, neighbors and elderly people living alone, and to call emergency services if anyone shows signs of heat-related illness. 2026-08-03 16:22:20