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
  • Seoul bourse enters a technical bear phase
    Seoul bourse enters a technical bear phase SEOUL, July 14 (AJP) -South Korean stocks has entered a technical bear market on Tuesday after the benchmark KOSPI fell nearly 30 percent from its June peak above the 9,000 mark, as a brutal selloff in semiconductor shares deepened on renewed concerns that the artificial intelligence boom may be nearing an earnings peak. The benchmark KOSPI plunged 8.95 percent to close at 6,806.93, its lowest level in 48 trading sessions and the fourth-largest one-day point decline on record. The tech-heavy KOSDAQ lost 4.55 percent to 799.36. The selloff followed Monday's record collapse in SK hynix shares and spread overnight to Wall Street, where SK hynix's Nasdaq-listed American depositary receipts slid another 9.3 percent after their spectacular debut last Friday. The weakness rippled across the broader U.S. semiconductor sector, with Micron Technology falling 4.3 percent, Intel losing more than 6 percent, Sandisk tumbling 12.6 percent, while Nvidia, AMD and Marvell Technology also retreated as investors reassessed lofty AI valuations. The combined decline erased much of the optimism surrounding SK hynix's landmark U.S. listing, which had been expected to broaden the company's global investor base and reinforce Korea's position at the center of the AI memory supply chain. Instead, investors shifted their focus from the historic capital raising to slowing earnings momentum. SK hynix's Korean shares crashed 15.37 percent to 1.845 million won on Monday, marking the steepest one-day decline in the company's history after having already retreated sharply from their record high. The ADRs closed at $152.35 overnight, extending the correction after Friday's Nasdaq debut. Samsung Electronics also slid 10.7 percent in Seoul, leaving the country's two semiconductor bellwethers down roughly 32 percent and 38 percent, respectively, from their recent peaks. The correction officially pushed the KOSPI into what market convention defines as a technical bear market, with the index falling about 28 percent from its intraday high of 9,385.59 reached on June 19 to Tuesday's intraday low near 6,780. Trading was halted for 20 minutes after the Korea Exchange activated a market-wide circuit breaker at 1:28 p.m., the 13th such suspension in history. More strikingly, seven circuit breakers have now been triggered this year alone, reflecting unprecedented volatility fueled by concentrated semiconductor bets and the proliferation of single-stock leveraged exchange-traded funds. The unwind has been particularly painful for retail investors who had crowded into leveraged products tracking Samsung Electronics and SK hynix during this year's AI-driven rally. All 14 leveraged ETFs linked to the two companies fell to record lows. KODEX SK hynix Leverage ETF has now lost more than 66 percent from its late-June peak, while TIGER Samsung Electronics Leverage ETF has shed nearly 60 percent from its June high. Online investment communities were flooded with posts from individual investors reporting losses reaching hundreds of millions of won, with many lamenting that leveraged ETFs had become "gambling rather than investing." Market strategists said the correction reflects a combination of profit-taking after one of the world's strongest equity rallies, mounting concerns that semiconductor earnings may have peaked, and external shocks including renewed geopolitical tensions in the Middle East that lifted oil prices and global bond yields. Analysts also noted that the Korean market has become unusually dependent on a handful of AI-related stocks. According to Eugene Investment & Securities, Samsung Electronics and SK hynix accounted for more than 78 percent of the KOSPI's gains during the first half of the year. As a result, the correction in those two names has translated into market-wide volatility far exceeding that seen in Japan or Taiwan, where chip shares have also weakened but broader indexes have remained relatively resilient. Adding to investor caution are growing doubts over second-quarter earnings. Korea Investment & Securities recently lowered its operating profit forecasts for SK hynix by incorporating the impact of long-term supply agreements, trimming this year's and next year's earnings estimates by 9 percent and 11 percent, respectively. It now expects second-quarter operating profit to come in about 8 percent below market consensus. The ADR listing itself may also have contributed to the reversal. While SK hynix's U.S. shares initially surged after listing, analysts said much of the optimism had already been priced into the Seoul-listed shares before the debut, prompting investors to lock in profits once the long-anticipated event had passed. Despite the sharp correction, strategists stopped short of calling for a prolonged bear market. Many argued that valuation has become considerably more attractive after the rapid decline, although a sustained recovery will depend on whether upcoming earnings from major global chipmakers can restore confidence in AI demand. 2026-07-14 08:33:25
  • Financial watchdog urges asset managers to improve transparency
    Financial watchdog urges asset managers to improve transparency SEOUL, July 13 (AJP) - Financial watchdog Financial Supervisory Service (FSS) on Monday urged asset managers to improve disclosure practices by providing clearer information on voting rights and strengthening internal controls. It also called for an end to misleading or exaggerated advertisements for exchange-traded fund (ETF) to better protect investors. In a meeting with the head of the Korea Financial Investment Association and CEOs of 20 asset management firms, FSS chief Lee Chan-jin stressed the need for greater transparency in how fund managers vote on corporate matters including board appointments, executive pay, mergers and dividend policies on behalf of investors. The meeting followed an FSS review, which found that many firms still used formulaic disclosures, giving investors little insight into how key company decisions were actually made. The review showed that asset managers have become more active in exercising shareholder voting rights. The voting rate for public and private funds has improved from 79.6 percent in 2024 to 91.6 percent in 2025 and 91.8 percent this year. The proportion of votes cast against management proposals also increased to 8.2 percent from 5.2 percent over the same period. Despite the improvement, the regulator said the quality of disclosures remained weak. Of the 285 asset managers reviewed this year, 121, or 42.4 percent, relied on generic explanations such as "little impact on shareholder interests" and "no harm to shareholder rights" instead of explaining the reasons behind their votes, making it difficult for investors to understand the basis for those decisions. Asset managers need to improve these voting procedures and provide clearer disclosures so investors can properly assess whether voting decisions are appropriate," Lee said. He also warned against misleading or exaggerated advertising in the country's fast-growing ETF market, saying investors often rely heavily on promotional materials when selecting products. Lee urged firms to ensure the accuracy of information through an internal review process, while working with liquidity providers to keep ETF market prices closely aligned with their net asset values. Industry participants also raised concerns over excessive product competition, saying the industry should voluntarily limit the launch of ETFs that closely replicate competitors’ products to create a healthier market. Lee also called on asset managers to channel more capital into promising companies and emerging industries, creating a cycle in which investment supports business growth and generates returns for investors. The FSS said it plans to hold workshops in July and August for asset managers responsible for related disclosures to share information and provide examples of practices. Meanwhile, Samsung Asset Management, NH-Amundi Asset Management and VIP Asset Management, three of the country's leading fund managers, were cited as examples of best practice in this year's review. 2026-07-13 18:00:31
  • Patriotic retail investors on buying spree to rescue beloved brands from delisting
    Patriotic retail investors on buying spree to rescue beloved brands from delisting SEOUL, July 13 (AJP) - In a market usually driven by earnings, valuations and future prospects, some South Korean retail investors are making room for something more sentimental: trying to save the companies they grew up with. From a beloved penmaker to a well-known seafood brand, individual investors have rushed to buy shares of struggling companies facing possible delisting. Their buying spree has sent stock prices sharply higher as they try to save familiar brands from disappearing from the market. But the buying spree has also raised a broader question: Is it an act of loyalty to iconic South Korean companies or simply shareholders trying to avoid losses? Experts say it may be a mix of both, exposing an unintended effect of the Korea Exchange's tougher delisting rules. "Many investors are likely buying shares not only to support the company but also to protect their own investment from losses," said Lee Jeong-hwan, a professor of economics and finance at Hanyang University. The phenomenon emerged after the Korea Exchange earlier this month introduced tougher listing guidelines, under which companies listed on the main KOSPI market with shares trading below 1,000 won or a market capitalization under 30 billion won (US$21.7 million) can face delisting reviews. Rather than abandoning struggling companies, however, many individual investors have done the opposite - buying shares to push their market values above the threshold. The clearest example was Hansung Enterprise, a seafood processor best known for Crabme, one of South Korea's best-selling crab-flavored seafood products. Its shares surged 100 percent last week, making it the top-performing stock in the market. The stock climbed from 4,635 won to 8,460 won in just about a week, hitting the daily 30 percent price limit in two consecutive sessions on Thursday and Friday. The rally showed little sign of slowing on Monday. As of 2:40 p.m., shares were up 26.83 percent at 10,730 won after earlier touching the daily limit of 10,990 won. Hansung had been struggling with rising raw-material costs and weakening profitability, leaving the company at risk of delisting after its market capitalization slipped to 28.7 billion won, below the Korea Exchange's new requirement. The turnaround began not with an earnings surprise or a restructuring announcement, but with posts on online investor forums. Users shared stories about the company's long-running charitable activities, including hosting annual concerts for Korean War veterans for roughly 25 years, prompting some retail investors to buy its shares to support a company they believed deserved another chance. Within days, buying accelerated. Hansung's market capitalization climbed to 52.5 billion won, lifting the company back above the delisting threshold. A similar story unfolded at Monami, one of the country's best-known stationery brands, whose inexpensive ballpoint pens have been a fixture in classrooms, offices and homes for decades. The stock climbed 62 percent during the week, rising from 1,318 won on July 6 to 2,145 won after nearly hitting the daily trading limit on two consecutive sessions. The rally extended into Monday, with the shares up another 17.02 percent at 2,510 won as of 2:41 p.m., after touching an intraday high of 2,780 won, just below the daily price limit of 2,785 won. The rally also lifted its market capitalization from 24.9 billion won to 40.5 billion won, helping the company avoid the immediate risk of delisting. For many investors, it was about preserving a familiar brand. "I hardly ever go to stationery stores anymore, but I still bought a Monami three-color pen online not long ago," said Lee K.M., a South Korean IT professional in his 30s who studied in the U.S. "It's cheap, writes well and is one of those reliable Korean products that has always been around. I even carried Monami pens with me when I lived in the U.S." His sentiment appeared to resonate with many retail investors, several of whom described Monami as one of those familiar brands that had quietly endured for decades. Hansung thanked the unexpected support. "We sincerely appreciate the encouragement and support we have received through online communities and social media," the retailer said in a statement posted on its website, pledging to continue producing "quality food products" as it has since its founding in 1963. Song Jae-hwa, the CEO of Monami, also posted a handwritten message on the company's official Instagram account on July 10. "Your trust and support have given us tremendous strength during a time when Monami faced the possibility of delisting." The rallies quickly evolved into a broader debate across online investing communities over whether investors were preserving Korean brands or simply fueling another speculative trade. On Naver's stock message board, one investor wrote, "Monami is a patriotic company. Let's send it to 10,000 won by Liberation Day," while another described it as "a good company that even pays dividends." Others were far more skeptical. "There are limits to using patriotism to manipulate a stock," one investor wrote. Another investor wrote: "Delisting doesn't mean the company disappears — just buy its products instead," arguing that consumers should support the companies through purchases rather than by driving up their share prices. One investor summed up the debate: "Patriotism or not, I have to survive first." The episode revived memories of South Korea's 2019 boycott of Japanese products, when patriotic consumption spilled into the stock market. On July 4, 2019, Monami's shares surged 29.88 percent to close at 3,325 won, hitting the daily trading limit as investors bet consumers would shift away from Japanese stationery brands. The following day, Shinsung Tongsang, operator of homegrown casualwear brand Topten, jumped as much as 26.6 percent intraday on expectations that the boycott would also benefit domestic apparel makers at the expense of Japanese rivals such as Uniqlo. Unlike those gains, however, the latest rallies have been driven not by expectations of stronger sales but by investors' attempts to keep companies above the Korea Exchange's minimum market-capitalization requirement. Lee of Hanyang University, said the buying was a predictable response from shareholders facing potential losses, but he said the episode also raised questions about the exchange's new delisting rules. "If a brief rise in the share price is enough to lift a company back above the 30 billion won threshold, similar episodes could continue," he said. "That suggests the listing standards need to be refined." Yang Jun-sok, a professor of economics at the Catholic University of Korea, offered a more market-driven explanation. He said distressed companies often attract speculative buying from investors hoping for a last-minute rescue through an acquisition, government support or another turnaround. "In many cases, investors buy because they believe someone else will eventually rescue the company through an acquisition or financial support," Yang said. "Even if that doesn't happen, they may think the shares have already fallen so much that the downside is limited." He compared the episode to the 2021 GameStop frenzy in the U.S., when retail investors on Reddit's WallStreetBets forum piled into shares of the struggling video-game retailer. The buying was driven less by confidence in the company's business than by a desire to inflict losses on hedge funds that had heavily shorted the stock. The stock soared from $17.25 at the start of January to as high as $483 on Jan. 28, forcing many short sellers to buy back shares to limit their losses and driving prices even higher. "That wasn't a normal investment either," Yang said. "Many participants were motivated to punish short sellers for betting against the company." Whether the recent rallies reflect genuine support for familiar Korean brands or simply another speculative trade remains open to debate. One widely shared online post captured that skepticism with a sarcastic remark: "This is what the Korean stock market has come to — we're talking about pen stocks and imitation-crab-stick stocks while the rest of the world is talking about artificial intelligence." Regardless of investors' motives, however, the episode has already exposed an unexpected consequence of the country's tougher delisting regime. Rules intended to weed out weak companies instead encouraged some shareholders to rally around them. For now, the buying spree has bought both companies more time. Whether it represents a new form of patriotic investing or simply shareholders trying to protect themselves from losses remains open to debate. The bigger question is whether the momentum can continue once the initial excitement fades. 2026-07-13 15:51:30
  • KOSPI falls below 7,000 as chip stocks nosedive
    KOSPI falls below 7,000 as chip stocks nosedive SEOUL, July 13 (AJP) - South Korean stocks plunged sharply on Monday afternoon, with the benchmark KOSPI falling below the 7,000 level for the first time in more than two months as heavy selling in semiconductor heavyweights triggered another market-wide selloff. As of 1:30 p.m., the KOSPI was trading at 6,880.97, down 7.96 percent, while the junior KOSDAQ fell 4.33 percent to 801.20. The KOSPI's drop below 7,000 marked its first breach of the level since May 4, extending a steep correction after the index had climbed to record highs earlier this year. Semiconductor heavyweights led the decline as investors continued to unwind positions following last week's listing of SK hynix's American depositary receipts (ADRs) and took profits after months of AI-driven gains. Samsung Electronics fell 9.21 percent to 258,750 won, while SK hynix plunged 13.35 percent to 1,889,000 won. SK Square tumbled 15.19 percent, Samsung Electro-Mechanics slumped 17.99 percent, and Samsung Electronics preferred shares dropped 9.01 percent. Samsung Life Insurance lost 6.46 percent. Not all blue chips declined. LG Energy Solution rose 1.23 percent, while KB Financial Group gained 0.70 percent, outperforming the broader market. Earlier in the session, the Korea Exchange activated a sell-side sidecar, the 35th such activation this year and the sixth this month. 2026-07-13 13:43:40
  • SK hynix ETF frenzy heads to Wall Street after record ADR debut
    SK hynix ETF frenzy heads to Wall Street after record ADR debut SEOUL, July 13 (AJP) -A wave of leveraged exchange-traded funds tied to SK hynix's newly listed American depositary receipts is set to hit Wall Street this week, extending the AI chipmaker's explosive rise from South Korea's stock market to the world's largest financial market and raising fresh concerns that the trading frenzy which reshaped Seoul could spread to New York. At least six ETF products from U.S. issuers including Leverage Shares, ProShares, GraniteShares and CorgiFunds are scheduled to begin trading on July 13 and 14 U.S. time after SK hynix completed the largest U.S. listing ever by a foreign company. Most of the funds will offer either two-times leveraged exposure or inverse bets linked to the daily performance of SK hynix's Nasdaq-listed ADRs, allowing investors to magnify gains or profit from declines in one of the world's hottest artificial intelligence stocks. Leverage Shares plans to launch the 2x Long SK Hynix Daily ETF under ticker SKHX alongside the SKHZ short ETF, while ProShares will debut the leveraged SKHU fund. GraniteShares is preparing the leveraged SKUU and inverse SKDD products, while CorgiFunds and Direxion are also introducing leveraged vehicles. The launches follow SK hynix's blockbuster Nasdaq debut on Friday, when its ADRs surged 13.08 percent from the offering price to close at $168.49 after the company raised $26.5 billion in the second-largest equity offering in U.S. history behind only SpaceX. The speed with which ETF issuers have rushed to launch derivative products underscores the extraordinary investor appetite surrounding AI infrastructure stocks, particularly companies at the center of the high-bandwidth memory boom powering generative artificial intelligence. Single-stock leveraged ETFs have become a lucrative niche for fund managers in recent years, with products tied to Nvidia, Tesla, Alphabet and AMD attracting heavy trading volumes. Similar products tracking SpaceX appeared almost immediately after the aerospace company's U.S. listing, setting records for first-week ETF trading activity. Unlike conventional ETFs, leveraged funds seek to deliver a multiple of a stock's daily return by using swaps, futures and other derivatives. The products reset every trading day, making them short-term trading instruments rather than long-term investment vehicles. Their arrival on Wall Street also exports a phenomenon that has already transformed South Korea's equity market. Leveraged ETFs linked to SK hynix and Samsung Electronics have exploded in popularity since launching in Seoul in late May. Combined assets in the products have grown to more than 13 trillion won ($8.6 billion), while cumulative trading value has exceeded 212 trillion won in little more than a month. Semiconductor shares and related leveraged ETFs now account for more than 70 percent of total trading on Korea's main bourse, making the AI rally increasingly concentrated in just a handful of securities. Bank of Korea officials have warned that mandatory daily rebalancing by leveraged funds can amplify price swings as issuers are forced to buy rising stocks and sell falling ones to maintain target leverage. The central bank has cautioned that the products increase concentration risk and can reinforce momentum during periods of market stress. The Korea Exchange chairman has also publicly expressed regret over approving single-stock leveraged ETFs, arguing that they have contributed to excessive volatility in Samsung Electronics and SK hynix, while some lawmakers have called for the products to be abolished altogether. 2026-07-13 07:55:23
  • SK hynix ADR: An epic Korea Inc. drama from penny stock to blockbuster
    SK hynix ADR: An epic Korea Inc. drama from penny stock to blockbuster SEOUL, July 10 (AJP) - Few Korean stocks have rewarded investors—or punished them—as dramatically as SK hynix. The memory chipmaker, whose Nasdaq American depositary receipts became the largest U.S. equity offering ever by a foreign issuer this week, once traded at just 135 won, making it one of the cheapest technology shares on the Korea Exchange and a dismal reminder of Korea Inc.'s collapse in the aftermath of the Asian financial crisis. Its fortunes have ridden the semiconductor industry's roller-coaster boom-and-bust cycle ever since. Originally founded as Hyundai Electronics, the company entered the memory-chip business in 1983 and listed on the Korea Stock Exchange in December 1996 at 20,000 won per share. The stock briefly climbed to 49,600 won before the Asian financial crisis upended the country's corporate landscape and the global chip industry. A government-led restructuring forced Hyundai Electronics to acquire LG Semicon in 1999. The deal created a larger national memory champion but also saddled the company with heavy debt just as global DRAM prices collapsed. The breakup of Hyundai Group following the financial crisis added to the strain, pushing the chipmaker into a severe liquidity crunch. Renamed Hynix Semiconductor in 2001, the company entered creditor-led restructuring as mounting losses and debt pushed it toward collapse. By 2003, its shares had plunged to 135 won. Foreign and institutional investors largely abandoned the stock, leaving it dominated by short-term retail traders willing to gamble on its survival. The recovery was anything but immediate. Hynix returned to profitability in 2003 and exited creditor management in 2005, but another memory downturn and the 2008 global financial crisis dragged its shares back toward 5,000 won. The repeated reversals reinforced the market's view of memory chips as one of the technology industry's most punishingly cyclical businesses. The decisive turning point came in 2012, when SK Telecom acquired control of Hynix for about 3.4 trillion won, ending more than a decade of financial uncertainty and giving the company the resources to pursue long-term technological investments. The company was subsequently renamed SK hynix. The acquisition gave the chipmaker not only capital but also the patience to invest through another uncertain phase of the memory cycle. SK hynix poured money into advanced memory technologies, including high-bandwidth memory, years before artificial intelligence created explosive demand for the product. The company developed the world's first HBM in 2013, when the technology had few obvious commercial applications. Demand remained limited for years, but SK hynix continued investing while rivals treated the product as a niche segment. That persistence eventually reshaped the company. As Nvidia's AI accelerators became the backbone of generative artificial intelligence, HBM emerged as one of the world's most strategically important semiconductor products. SK hynix's early lead allowed it to become the dominant supplier just as AI infrastructure spending began to surge. Investors rewarded that technological advantage with one of the sharpest re-ratings ever seen in South Korea's stock market. SK hynix shares climbed from around 250,000 won in July 2025 to nearly 3 million won less than a year later, briefly making the company South Korea's most valuable listed corporation. Even after retreating to 2.186 million won as of Thursday, the stock remained almost tenfold higher than a year earlier, ranking it among the world's best-performing large-cap semiconductor shares. The rally unfolded in several waves. The shares spent much of the second half of 2025 below 500,000 won before breaking above 1 million won in April 2026. They crossed 2 million won the following month and approached the 3 million-won mark in June as optimism over record earnings, expanding AI infrastructure investment and the Nasdaq ADR offering intensified. The rise was not merely a surge in price. It also marked a fundamental reassessment of what kind of company SK hynix had become. According to KRX Data Marketplace, its price-to-earnings (PER) ratio climbed from 10.34 times on July 10, 2025, to a peak of 47.05 times in late June 2026 before easing to 35.81 times. The dramatic expansion reflected investors' growing willingness to value SK hynix less like a conventional memory producer and more like an essential supplier to the global AI industry. Foreign investors remained central to the rally. They owned approximately 50.01 percent of SK hynix shares as of July 10, according to Korea Exchange data. Although foreign ownership had declined from a peak of 56.25 percent in September 2025 as investors locked in gains, overseas shareholders still controlled about half of the company. Institutional participation also expanded through semiconductor-focused funds and single-stock leveraged exchange-traded funds, drawing a wider range of investors into a stock that had once been treated largely as a speculative turnaround bet. This week's Nasdaq ADR debut marked another milestone rather than the beginning of the transformation. For many investors, the listing represented the culmination of a comeback that began more than two decades ago, when Hynix was fighting simply to survive. The ADRs were priced at $149 each, raising approximately $26.5 billion in the largest U.S. equity offering ever by a foreign issuer. Each ADR represents one-tenth of a common share, with the offer priced at a slight premium to the company's Seoul-listed stock. The blockbuster deal offered a stark contrast to the company's darkest period. A chipmaker once reduced to a 135-won penny stock had returned to global capital markets as the world's leading AI memory supplier and the issuer of Wall Street's largest-ever foreign share sale. Whether the current AI boom proves to be another turn in the semiconductor cycle or the beginning of a structural shift remains one of the market's biggest debates. But few companies have traveled farther than SK hynix. Its journey from a debt-ridden casualty of Korea Inc.'s post-crisis collapse to one of the world's most valuable AI chipmakers has already secured its place as one of the most extraordinary corporate turnarounds in South Korean capital-market history. 2026-07-10 16:12:14
  • South Korea to reassess single-stock leveraged ETFs amid volatility concerns
    South Korea to reassess single-stock leveraged ETFs amid volatility concerns SEOUL, July 10 (AJP) - South Korea's newly-introduced single-stock leveraged exchange-traded funds (ETFs) are under scrutiny after those linked to the country’s largest two chipmakers suffered heavy losses, raising concerns about market volatility and investor protection. In a press briefing at Cheong Wa Dae on Friday, chief presidential secretary for policy Kim Yong-beom said that the government has been holding regular meetings with the country's top financial policymakers including officials from the Ministry of Finance and Economy, the Financial Services Commission, the Bank of Korea and the Financial Supervisory Service, to come up with measures. "We are continuously monitoring market conditions while considering whether any adjustments are needed," Kim told reporters, referring to the side effects of such ETF products since their market debut on May 27. "We will closely examine its impact on the market and whether any changes or measures are needed to protect investors," he added. His comments came amid growing debate over whether these products are amplifying volatility in South Korea's stock market, which has seen sharp ups and downs over the past year, driven largely by an unprecedented semiconductor rally. Unlike conventional ETFs that track a basket of stocks or a market index, single-stock leveraged ETFs seek to deliver twice the daily return of a single stock. In South Korea, these products are concentrated almost entirely on Samsung Electronics and SK hynix, allowing investors to amplify gains when share prices rise but magnifying losses when they decline. They faced growing scrutiny after sharp swings in the shares of the two chip giants resulted in steep losses for many retail investors. Calls for tighter oversight have also emerged from political circles, with lawmaker Ahn Cheol-soo of the main opposition People Power Party (PPP) urging earlier this week that the products be delisted, saying they had turned the country's stock market into a "casino" and describing them as a "policy failure." 2026-07-10 15:49:37
  • KOSDAQ Turns 30 Amid Declining Investor Interest and Market Challenges
    KOSDAQ Turns 30 Amid Declining Investor Interest and Market Challenges The KOSDAQ, launched in 1996 with aspirations of becoming "Korea's NASDAQ," marked its 30th anniversary, but the celebratory atmosphere was notably absent.Once a thriving platform for venture and biotech companies, the market is now experiencing a rapid decline in trading and liquidity as investments shift towards large-cap semiconductor stocks amid a surge in artificial intelligence (AI) investments. Retail investors, who once heavily favored KOSDAQ, are increasingly moving their funds to Samsung Electronics and SK Hynix, further weakening the market's support from individual investors. While discussions on market reforms continue, concerns are growing that without restoring investor confidence, the KOSDAQ may struggle to escape a prolonged downturn.The KOSDAQ's struggles have become more pronounced this year. While the KOSPI has surged over 80% due to the AI semiconductor rally, the KOSDAQ has fallen more than 10% since the beginning of the year, making it one of the worst-performing markets among major global exchanges. On its 30th anniversary on July 1, the KOSDAQ index remained at 929, failing to reach its initial launch index of 1,000 points in 1996, and it dropped to 785 on July 9. The market's overall health is rapidly deteriorating, with declines in trading volume, investor funds, and individual trading activity.One significant factor affecting market sentiment was the launch of a single stock leverage ETF for Samsung Electronics and SK Hynix on May 27. This high-risk product, which aims to double the daily returns of specific stocks, has faced criticism as a "gambling ETF" due to its volatility. However, amid the AI investment boom, retail investors have shifted their funds away from KOSDAQ growth stocks in biotech and healthcare towards semiconductor leverage ETFs and large-cap AI semiconductor stocks.Since the ETF's launch, the KOSDAQ has set new record lows seven times. During the same period, the KOSPI rose by 2.3%, while the KOSDAQ fell by 8.8%.The trend is also reflected in ETF performance. According to KOSCOM's ETF investment information platform, "ETF CHECK," the KODEX KOSDAQ 150 ETF, which tracks the KOSDAQ 150 index, has dropped 13.9% in the past month. In contrast, a long-short strategy that bets on KOSPI strength and KOSDAQ weakness has yielded high returns, with the KODEX 200 Long KOSDAQ 150 Short Futures recording a 9.04% return, while the opposite strategy, KODEX KOSDAQ 150 Long KOSPI 200 Short Futures, has seen a 12.63% loss.This shift is also evident in the flow of funds. As of July 7, investor deposits had decreased to 112.2 trillion won, down from 139.7 trillion won a month earlier, marking the lowest level in nearly three months. During the same period, retail investors sold a net 1.41 trillion won worth of KOSDAQ stocks.Trading activity has also contracted sharply. According to data from the Korea Exchange (KRX), KOSDAQ trading volume was approximately 306 trillion won in the ten trading days leading up to the ETF launch from May 13 to 26. However, from May 27 to June 11, immediately after the launch, it dropped to 209 trillion won, and in the most recent ten trading days (June 24 to July 7), it fell to 145 trillion won. In just over a month, trading volume has shrunk to half its previous level.Retail investors have been leaving the KOSDAQ even more rapidly. In the ten trading days following the ETF launch, individual trading volume on the KOSPI increased by 4.1%, while KOSDAQ individual trading volume plummeted by 37.9%. In the most recent ten trading days, KOSDAQ individual trading volume has decreased by 60.6% compared to before the launch, while the KOSPI's decline was limited to 28.2%. Retail investors, often referred to as "ants," currently account for about 79% of KOSDAQ trading, down from 84-87% during the retail investment boom of 2020-2021. As individual funds exit, KOSDAQ's liquidity is inevitably shrinking.In the past, retail investors flocked to the KOSDAQ in search of growth stocks in biotech and healthcare. However, the current AI investment boom and the strong performance of Samsung Electronics and SK Hynix have drawn demand towards high-risk, high-reward single stock leverage ETFs.The KOSDAQ's structural limitations are becoming increasingly evident. Major companies like Naver, Kakao, and Celltrion have transitioned to the KOSPI after achieving growth, and Alteogen, currently the top company by market capitalization, is also seeking to move to the KOSPI. As quality companies continue to leave, the number of so-called "zombie companies" has increased, and repeated capital increases have undermined investor trust.In response to the 30th anniversary, the Korea Exchange held "KOSDAQ CONNECT 2026" and is pursuing reforms, including strengthening listing maintenance requirements, improving technology-based listings, and implementing a three-tier market structure divided into premium, standard, and managed markets. Jeong Eun-bo, chairman of the Korea Exchange, stated, "We will make KOSDAQ a trusted market through a 'many births, many deaths' structure."However, many in the market argue that institutional improvements alone are insufficient. Without nurturing new representative companies to lead in the AI era and restoring investor confidence, the KOSDAQ risks remaining a "transit point for companies heading to the KOSPI" rather than a market for future enterprises.Investment expert Kim Jeong-hoon noted, "As delisting requirements are tightened, it is crucial to create a structure where growth-validated companies can conduct proper IPOs rather than increasing technology-based listings. Recently, there have been numerous cases where companies that failed to attract institutional demand during the pre-IPO process traded below their offering price shortly after listing, further eroding trust in the IPO market."He also pointed out the lack of communication from companies with investors, stating, "Many KOSDAQ-listed companies lack dedicated investor relations personnel. A system for actively communicating with shareholders needs to be improved." He added, "Amid the AI investment boom, market attention is focused on Samsung Electronics and SK Hynix, making it difficult to feel the effects of policy changes."While it is too early to determine whether the shift of retail funds is a structural change, analysts warn that if the trend of capital concentration in AI semiconductor-related products continues and new investment inflows do not recover, a meaningful rebound for the KOSDAQ will be challenging.As the KOSDAQ celebrates its 30th anniversary, it continues to experience growing pains. The challenge now is to create reasons for investors who have left for AI semiconductors to return, and to foster the growth of companies and market trust that will serve as the starting point for that return. 2026-07-10 08:04:00
  • KOSPI paradox – few winners among retail investors
    KOSPI paradox – few winners among retail investors SEOUL, July 09 (AJP) — "I demand a refund," wailed a day trader on social media after SK hynix shares plunged from their near 3 million won peak in June. Memes of disbelief, despair and fury quickly spread across Korean investing forums. The complaint captured the contradiction of this year's Korean stock market. The benchmark KOSPI nearly doubled through June to become one of the world's best-performing equity markets, yet a large majority of retail investors are losing money. Trading data from a major domestic brokerage showed that an average 73.5 percent of investors in the 50 most-purchased Korean stocks remained underwater at the end of June, meaning they bought shares above current prices. In half of those stocks, more than 80 percent of investors were sitting on losses. The average return of the 50 stocks still reached 20.5 percent, but that figure masked an exceptionally narrow rally. The five best-performing stocks gained an average of 198 percent, suggesting that a handful of AI beneficiaries generated most of the market's advance while the majority delivered mediocre or negative returns. Nowhere was that concentration more evident than in semiconductors. According to Korea Exchange data, Samsung Electronics and SK hynix ranked as the two most-bought stocks by retail investors this year through July 8, attracting net purchases of roughly 51.9 trillion won and 48.3 trillion won, respectively. As semiconductor shares kept climbing, latecomers increasingly piled into the market through single-stock leveraged ETFs in an attempt to catch up. Many instead bought near the top. Shinhan Securities data illustrate the paradox. Despite SK hynix rising roughly tenfold from last summer, half of them or 45.7 percent of its shareholders were still losing money as of Thursday afternoon because many entered only after the rally had become widely celebrated. The average investor still showed a healthy 76.8 percent gain thanks to earlier buyers, but the headline return concealed the large number of recent entrants now sitting in the red. Samsung Electronics investors fared somewhat better. Average returns stood at 72.2 percent, while about 63 percent of investors remained profitable. Analysts said the pattern reflects a familiar retail tendency to chase momentum after prices have already risen sharply, leaving investors exposed when sentiment reverses. Overseas bet proved smarter. Among the 50 most-purchased foreign stocks, only 44.2 percent of investors were underwater on average during the first half, while average returns reached 44.7 percent — more than twice the comparable figure for Korean shares. The difference reflected a broader AI rally in the United States, where gains spread across chipmakers, software companies, cloud providers and infrastructure firms. Korea's advance, by contrast, rested overwhelmingly on its two semiconductor champions. That dependence made the market especially vulnerable once doubts emerged over whether the AI memory boom had peaked. Foreign investors have since sold roughly 40 trillion won worth of KOSPI shares over 13 consecutive sessions, concentrating their selling on semiconductor heavyweights after several global investment banks questioned the durability of the memory-chip supercycle. Retail investors who had amplified their exposure through leveraged ETFs found the reversal even more painful. According to Korea Exchange data, the KODEX Samsung Electronics Single Stock Leveraged ETF surged from its listing price of 20,000 won on May 27 to an intraday high of 31,325 won before tumbling to 15,535 won on Thursday, about 22 percent below its debut price. The KODEX SK hynix Single Stock Leveraged ETF followed a similar pattern. It climbed from 20,000 won to as high as 44,000 won before falling back to around 21,400 won, wiping out more than half of its peak value. Because such products are designed to deliver multiples of daily returns rather than long-term performance, volatility itself steadily erodes returns, making them particularly punishing during sharp reversals. Investor frustration has become increasingly visible online. "It's only a matter of time before it converges to zero," one user wrote on the Naver Finance message board for the Samsung Electronics leveraged ETF. Another posted: "Don't expect Samsung Electronics to rise if everyone's buying leveraged ETFs. Know what you're buying." 2026-07-09 18:00:38
  • KOSPIs fragile rebound fails to calm jittery investors
    KOSPI's fragile rebound fails to calm jittery investors SEOUL, July 09 (AJP) - South Korean stocks snapped a three-day losing streak on Thursday, closing marginally higher after surrendering most of their early gains in a volatile session that underscored the fragility of investor sentiment. The benchmark KOSPI closed at 7,291.91, up 0.62 percent. The index opened 3.31 percent higher and briefly climbed above the 7,500 level, but the early rally quickly faded after Bahrain and Kuwait sounded warning sirens and Qatar issued emergency security alerts following renewed U.S. strikes on Iran, reviving fears of a wider Gulf conflict. The index later slipped into negative territory before recovering into the close. Even after the modest rebound, the main index remained nearly 800 points below its 8,088.34 close on July 3, following a slide to 7,246.79 a day earlier. Retail investors were net sellers, unloading 1.33 trillion won, while foreign and institutional investors purchased a net 146.1 billion won and 1.29 trillion won, respectively. Semiconductor shares led the rebound after suffering steep losses over the previous two sessions. Samsung Electronics edged up 0.18 percent to 278,000 won, while SK hynix jumped 5.30 percent to 2,186,000 won, supported by bargain hunting and optimism ahead of its planned American depositary receipt (ADR) listing on Nasdaq on Friday. Among other heavyweight stocks, SK Square rose 4.49 percent to 1,327,000 won, Samsung Electro-Mechanics gained 0.95 percent to 1,493,000 won, and KB Financial Group added 0.23 percent to 171,400 won. Losses were concentrated in autos, financials and healthcare. Hyundai Motor fell 3.68 percent to 445,500 won, LG Energy Solution slipped 0.63 percent to 313,500 won, Samsung Life Insurance dropped 5.78 percent to 326,000 won, Samsung C&T declined 4.18 percent to 378,500 won, Samsung Biologics lost 2.79 percent to 1,325,000 won, Kia slid 7.65 percent to 144,800 won, Hanwha Aerospace fell 8.45 percent to 953,000 won, HD Hyundai Heavy Industries eased 1.93 percent to 507,000 won, and Shinsegae slipped 2.14 percent to 105,000 won. The KOSDAQ also recovered from intraday volatility, rising 1.15 percent to close at 794.00 after briefly climbing to 819.69, but ultimately failed to reclaim the 800-point level. Institutional investors bought a net 308.1 billion won worth of KOSDAQ shares, while foreign investors added 22 billion won. Retail investors remained net sellers, offloading 321.5 billion won. Jusung Engineering surged 11.50 percent, while EcoPro gained 1.79 percent and Rainbow Robotics rose 0.58 percent. On the downside, Alteogen fell 4.31 percent, EcoPro BM lost 0.98 percent, ABL Bio slipped 1.23 percent, and LigaChem Biosciences declined 1.83 percent. Elsewhere in the region, Japan's Nikkei 225 climbed 1.38 percent to 67,743.85, rebounding alongside semiconductor-related shares. Advantest and Tokyo Electron were among the major gainers after reports that China may allow limited sales of Nvidia's H200 chips to selected domestic AI firms lifted chip sentiment. China's Shanghai Composite added 1.65 percent to 4,036.59, extending gains despite earlier inflation concerns. Hong Kong's Hang Seng Index was the lone major loser, slipping 0.70 percent to 24,030.18. 2026-07-09 17:51:44