Aju Press - Asia News Hub

Journalist

Ryu Yuna류윤아

ReporterFinancial Supervisory Service (FSS) & finance, capital markets, Southeast Asian affairs

Yuna Ryu covers finance, capital markets and Southeast Asian affairs.
She is drawn to the questions that numbers raise and the stories that data alone cannot answer.
Prior to journalism, she worked at Hyundai Motor Company and the Singapore Chamber of Commerce, focusing on business strategy and international affairs. She has also hosted diplomatic receptions and international conferences as an MC.

Ryu holds a master's degree in Media and Communication from Korea University, where her research focused on neuroscience-based studies of media effects. "Beyond every statistic is a human story waiting to be heard."

Latest by Ryu Yuna

Silver glitters: stocks lift wealth of the gray in Korea, U.S., Japan SEOUL, October 07 (AJP) — Older generations on both sides of the Pacific — seemingly the last to have enjoyed an era of abundant liquidity and cheap borrowing — are benefiting from asset inflation, helping fuel consumer spending this year despite geopolitical risks and elevated interest rates. In South Korea, investors aged 60 and older accounted for 40 percent of individual investors’ domestic stock profits in the first half despite representing less than a third of trading. U.S. baby boomers hold nearly $100 trillion in wealth, while Japanese households headed by people in their 60s have the highest average securities holdings among age groups. The figures point to a common advantage across three aging societies: older generations entered the latest market rally with substantial assets already in hand. Korea’s seniors turn more proactive with retirement savings Korean investors aged 60 and above generated 92.35 trillion won ($69.0 billion) in domestic stock profits in January-June, or 40.0 percent of the 231.14 trillion won earned by individual investors at eight major brokerages, according to data the firms submitted to Rep. Kim Jae-sup of the People Power Party. Their share of profits far exceeded their 29.3 percent share of trading value, with the gap particularly pronounced among the oldest investors. Those in their 70s accounted for 5.9 percent of trading but 11.2 percent of profits. Investors aged 80 and older represented just 1.1 percent of trading yet generated 3.5 percent of profits. Much of that pattern reflects where older households stand in the wealth accumulation cycle, according to Yang Jun-sok, an economics professor at the Catholic University of Korea. “Individuals from their late 50s through their early 70s tend to have the most assets, whether physical or financial, because they have accumulated wealth over decades,” Yang said. The gains came during a volatile first half. On March 23, the KOSPI plunged 6.49 percent to 5,405.75 as Middle East tensions intensified, triggering a temporary curb on program selling. The benchmark subsequently rebounded to a record close of 9,114.55 on June 22. Older investors took an increasingly prominent role as the market rallied. Their 29.3 percent share of first-half trading was up from 15.8 percent in 2021. Investors in their 60s alone accounted for 22.4 percent, rising from 12.8 percent in 2021 and surpassing the 21.5 percent share of those in their 40s. “For people who are approaching retirement or have just retired, financial assets are often near their lifetime peak,” Yang said. “That means they tend to benefit more when stock markets rise.” Older Koreans are also borrowing more to invest. Margin-loan balances held by investors aged 60 and above reached 9.61 trillion won at the end of June, accounting for 30.4 percent of the total at 10 brokerages, according to data obtained by Democratic Party lawmaker Kim Hyun-jung. Balances among investors aged 70 and older surged 56.8 percent from the end of 2025 to 2.47 trillion won. Those held by people in their 60s jumped 42.3 percent to 7.14 trillion won, also outpacing the overall increase of 36.3 percent. Margin loans allow investors to borrow from brokerages to buy shares, magnifying both gains and losses. Yang said the increase may also reflect a broader appetite for risk among Korean investors. “Korean individual investors tend to follow price momentum more closely and appear more willing to take risks,” he said. U.S. boomers ride gains on accumulated wealth In the United States, the scale of older generations’ existing wealth is the dominant factor. Baby boomers — born between 1946 and 1964 and now roughly 62 to 80 years old — held $97.4 trillion in net worth at the end of the second quarter, according to Yardeni Research’s analysis of the Federal Reserve’s Distributional Financial Accounts. That vast asset base makes gains in stocks and housing particularly consequential for the generation. Federal Reserve data released Sept. 11 showed that U.S. household and nonprofit net worth rose by $12.8 trillion to $195.9 trillion in the second quarter, with corporate equity gains accounting for much of the increase. “Baby boomers bought homes and built up financial assets years ago, so rising house and stock prices increase the value of what they already own,” Yang said. Retirement patterns, however, distinguish the U.S. experience from Korea’s. “The United States does not have the same kind of fixed retirement structure as Korea, where many people leave their main jobs in their late 50s,” Yang said. Older Americans also increased their market activity in September. Charles Schwab’s Trading Activity Index, which tracks trading among its clients, recorded larger monthly increases among older generations than among millennials and Generation Z. The index for the Silent Generation, the cohort preceding baby boomers, rose 4.20 percent from August. The Baby Boomer index increased 3.02 percent, compared with 2.11 percent for millennials and 0.85 percent for Generation Z. U.S. equities have since extended their gains. The S&P 500 closed at a record 7,818.93 on Tuesday, while the Nasdaq Composite reached a record 27,599.79, supported by earnings expectations and continued enthusiasm for artificial intelligence-related companies. For older households with substantial stock portfolios, such gains can add considerably to wealth even without further purchases. Japan’s seniors move from savings to investment In Japan, older households also hold substantial financial assets, while policy incentives and inflation are encouraging more of them to invest. Households headed by people in their 60s had the highest average securities holdings among age groups in 2025, according to the Statistics Bureau’s Family Income and Expenditure Survey on savings and liabilities, released May 19. Among households with two or more members, those headed by people in their 60s held an average 7.13 million yen in securities, including stocks, investment trusts and bonds. That compared with 3.48 million yen for households headed by people in their 50s and 4.56 million yen for those aged 70 and above. A separate Statistics Bureau survey showed a similar pattern in direct stock ownership in 2024. Households headed by people aged 60 to 69 held an average 2.609 million yen in stocks, compared with 2.068 million yen for those in their 50s, 1.368 million yen for those in their 40s and 907,000 yen for those in their 30s. More recent figures suggest investment participation is also broadening among older Japanese. A July 6 analysis by Nomura Research Institute, based on Financial Services Agency data, found that the share of people holding Nippon Individual Savings Accounts, or NISA, rose by 2.4 percentage points among both those in their 50s and those in their 60s between June and December 2025. Those increases exceeded gains of 2.1 percentage points among people in their 20s, 2.0 points among those in their 30s and 1.9 points among those in their 40s. Yuji Hosaka, a specially appointed professor at Korea University’s Graduate School of Public Administration, pointed to the 2024 overhaul of the tax-exempt investment program as one driver. “Japan significantly expanded NISA in 2024, allowing people to invest more money while keeping eligible gains tax-free for an unlimited period,” he told AJP. Under the revised system, individuals can invest up to 3.6 million yen a year, with a lifetime tax-exempt holding limit of 18 million yen, according to the Financial Services Agency. Hosaka said the program is particularly attractive to older Japanese who accumulated substantial savings during decades when bank deposits were favored over investments. It also supports the government’s longstanding campaign to move household money “from savings to investment.” Inflation is giving that shift greater urgency. Many people approaching retirement made their financial plans during Japan’s prolonged period of very low inflation, Hosaka said. Higher prices are now eroding the purchasing power of those savings. “That is changing Japan’s traditional preference for savings,” he said. “As prices rise and concerns grow over whether retirement funds will be enough, more older people are turning to investment to protect the value of their money.” Across the three markets, decades of accumulated wealth are giving the silver generation fresh reasons to shine. But as more retirement money rides on stocks, a market turn could take some of that glitter off their golden years. 2026-10-07 17:43:20
FSS calls for stronger internal audits as compliance violations persist SEOUL, October 07 (AJP) -South Korea's financial watchdog on Wednesday urged securities firms to strengthen preventive audits after recent inspections found repeated basic compliance failures. The Financial Supervisory Service (FSS) made the request at a meeting with auditors from 21 securities firms, including 10 large investment firms and 11 mid-sized brokerages, aimed at strengthening preventive, investor-centered internal controls. At the meeting, the watchdog urged firms to move away from audits that identify problems only after they occur and focus on detecting risks before investors suffer losses. “We need to fundamentally reassess whether current internal controls are sufficient to meet investors’ expectations and earn their trust,” said Seo Jae-wan, deputy governor responsible for financial investment at the FSS. Seo said recurring violations included false or inadequate product descriptions and sales staff using personal mobile phones to solicit customers without leaving required records, a sign that even basic controls were not working properly. He also called on internal audit teams to independently check whether investor-protection procedures are working in practice, rather than limiting their response to declarations or pledges after problems emerge. “Senior management, including chief executives, should not view internal audits as merely a cost, but should strengthen audit capabilities by providing sufficient staff and resources.” Seo said. The FSS also shared findings from recent reviews of how financial products are developed and sold and gave guidance on stock lending by liquidity providers (LPs). It also urged brokerages to properly implement measures introduced to curb excessive margin lending, in which investors borrow money from securities firms to buy stocks. Separately, the regulator asked firms to ensure that follow-up measures under its plan to curb false and misleading advertising are properly implemented. The meeting also addressed cybersecurity following a series of recent data breaches across the country’s financial sector. The regulator urged securities firms to thoroughly review their IT security and monitoring systems, quickly assess potential investor harm and take immediate protective measures if needed. Brokerage representatives agreed to review whether investor-protection and risk-management systems were working properly across their operations and to strengthen preventive internal audits. The regulator said it would continue helping firms strengthen internal audits and improve coordination with regulatory inspections. 2026-10-07 10:56:19
Digital Korea falls prey to cyberattacks, from central bank to churches SEOUL, October 07 (AJP) —From its central bank to major churches, South Korea is confronting a widening range of cyber threats as surging hacking attempts and a series of data leaks raise concerns over security across its highly connected economy. The Bank of Korea and the state-run Export-Import Bank of Korea have reported sharp increases in attempted attacks this year. Separately, a law firm is preparing a damages lawsuit over a Shinhan Bank data breach affecting about 25,000 customers, while confirmed and suspected leaks involving a public-sector training platform and two major churches have extended concerns beyond finance. Data released Wednesday by Rep. Lee Jong-wook of the opposition People Power Party showed that the Export-Import Bank detected 283 hacking attempts this year through Oct. 5, nearly eight times the 36 recorded in all of last year. The total already exceeded the combined 197 attempts recorded over the preceding five years, according to materials submitted to the lawmaker by the state-invested bank. Attempts involving harmful IP addresses and related activity jumped to 230 from 19 last year, accounting for 81.3 percent of this year’s total. Attempts to access its web systems rose to 53 from 17. Of the 283 attempts, 272 originated from overseas IP addresses, including 128 in the United States, 56 in Singapore and 18 in China. Those locations indicate where the traffic originated, rather than necessarily identifying the attackers’ nationality. The lender said it had suffered no hacking-related damage, including leaks of personal or credit information, over the past six years. It operates a cybersecurity monitoring center around the clock and shares threat information with the finance ministry’s cyber safety center. The Bank of Korea recorded 136 hacking attempts this year through Oct. 2, about 4.5 times the 30 detected in all of last year. The latest was an unauthorized access attempt against its website from a Netherlands-based address in September, adding to 135 attempts detected in the first eight months of the year. Targets have mainly been systems accessible through the internet, including the central bank’s main website, economic statistics portal and electronic library. Some earlier incidents caused disruption or exposed personal information. A distributed denial-of-service attack intermittently slowed access to the central bank’s website in December 2023. In May and June this year, an intrusion into a system used by an outside training provider exposed the personal information of 186 Bank of Korea employees. The central bank said it recorded no successful intrusions, service disruptions or data leaks between the beginning of September and Oct. 2. For commercial bank customers, the fallout is already moving toward the courts. S Law Firm, based in Seoul’s Seocho district, is recruiting Shinhan Bank customers affected by its recent breach, according to a notice posted on the firm’s website Tuesday. Customers who received a breach notification or can otherwise verify that their information was exposed are eligible to join. The firm plans to file a damages lawsuit once enough plaintiffs sign up. Each participant is expected to seek between 100,000 won ($74) and 300,000 won. The participation fee is 10,000 won, plus a 10 percent contingency fee. Shinhan disclosed last week that an unauthorized external party had bypassed authentication on a loan-related service and obtained personal and credit information linked to about 25,000 customers. The exposed information included names, phone numbers, annual income and calculated borrowing limits, along with other details submitted during loan applications. Shinhan Bank CEO Jung Sang-hyuk apologized and said the bank would fully compensate customers for losses linked to the incident. Similar intrusions have also been identified at KB Kookmin Bank, Hana Bank, BNK Busan Bank, Yegaram Savings Bank, Welcome Savings Bank and Hyundai Capital. Authorities are investigating signs that artificial intelligence may have been used to automate parts of the attacks. President Lee Jae Myung said Tuesday that AI appeared to have been involved, although authorities have yet to determine how it was used. Outside finance, personal information belonging to more than 100,000 users was exposed from an online training platform run under the Anti-Corruption and Civil Rights Commission. The platform provides ethics and integrity training for public institution employees, private school staff and others working at organizations affiliated with the public sector. Compromised records included names, user IDs, encrypted passwords, phone numbers, employers and job titles. The Korea Integrity and Civil Rights Training Institute, which oversees the service, said the records came from an older system used before the platform moved to the cloud in April 2025. Information on the current system was not affected, it said. An outside contractor had retained the old records instead of deleting them after the transition. The remaining records have since been deleted, and the institute pledged tighter oversight of vendors and their handling of personal information. Suspected breaches at two major Seoul churches have raised concerns over the exposure of membership, donation and internal administrative records. Cybersecurity company Oasis Security said it found data linked to Yoido Full Gospel Church and SaRang Church on an overseas hacker’s server. The material associated with Yoido Full Gospel Church included about 960,000 member records updated over the past two years and roughly 330,000 donation records. Electronic approval documents and internal messenger records were also found. The record count does not necessarily represent the number of individual members affected. Data linked to SaRang Church included information on about 89,000 members and 286 employees, according to Oasis Security. The company said the attacker gained administrator access to Yoido Full Gospel Church’s database. At SaRang Church, stolen login credentials appeared to have been used to enter the system and access other internal networks. Both churches are investigating the extent and cause of the suspected breaches. Yoido Full Gospel Church said the Korea Internet & Security Agency had notified it of signs of a possible personal data leak and that it was working with authorities and cybersecurity specialists to establish what happened. SaRang Church said it had formed an emergency task force, reported the incident to relevant authorities and begun measures to prevent further damage. 2026-10-07 09:58:25
KOSDAQ cybersecurity stocks surge as bank hacks raise AI attack concerns SEOUL, October 6 (AJP)— South Korean cybersecurity stocks surged Tuesday as a series of attacks on financial institutions and concerns over the possible use of artificial intelligence (AI) in hacking fueled expectations for stronger security spending. AhnLab, one of the country’s largest cybersecurity companies, which provides software and services to protect computers, networks and cloud systems, jumped 15.58 percent to close at 89,000 won ($65.50) on the junior KOSDAQ. Genians, another cybersecurity company that helps businesses control network access and detect cyber threats, climbed 20.83 percent to 24,650 won. Both stocks hit their highest levels of 2026. Some names posted even sharper gains. SANDS Lab, which develops AI-based cyber threat intelligence and security technologies, surged 29.99 percent to 8,970 won, while RaonSecure, an IT security and digital authentication provider, jumped 29.98 percent to 14,870 won. Both stocks hit the daily upper limit. The broader cybersecurity sector also advanced. Fasoo AI, a data security company, rose 15.60 percent. SGA Solutions, which provides system and cloud security services, gained 15.61 percent. Monitorapp, a web and network security company, advanced 11.23 percent, while X-Gate, which specializes in VPNs and firewalls, climbed 9.10 percent. The rally followed a series of cyberattacks on major banks in the country, including Shinhan Bank, KB Kookmin Bank and Hana Bank. The breaches exposed personal information of at least 25,935 customers and employees through support systems, while the banks' main internet and mobile banking transaction systems were not compromised. Concerns intensified after President Lee Jae Myung said Tuesday that AI appeared to have been used in the attacks. Financial authorities were examining whether AI tools helped automate parts of the hacking, although they had not identified a specific tool or specified exactly how it may have been used. Investors are looking at whether the attacks could prompt broader cybersecurity spending beyond the financial sector, including at public institutions and private companies. Demand for security solutions could grow further if AI-assisted cyberattacks become more widespread and companies seek to strengthen existing defenses. 2026-10-06 17:42:26
No panic or bank runs after sweeping cyberattacks on Korean lenders SEOUL, October 06 (AJP) — Business continued as usual at South Korean bank branches Tuesday after a wave of cyberattacks disclosed over the long holiday weekend. For most customers, the immediate concern was whether their money was still there. Few cared to change their passwords or other account details, let alone withdraw their money. The breaches exposed a gap between banks’ heavily guarded transaction systems and the employee and partner services supporting them. Shinhan, KB Kookmin and Hana spent nearly 124 billion won ($92 million) on cybersecurity last year, yet attackers penetrated those peripheral systems and stole personal information. Cho, a resident doctor in his 30s, checked his account after hearing the morning news. “All I needed to know was if my money was still there,” he said. Hyun, a welfare center worker in her 30s, learned of the breach through a banking app notice. “I was worried about whether my money was safe,” she said. “I'm also wondering whether I should change my banking app and account passwords.” Authorities said last Thursday that no direct financial losses had been reported, but warned that stolen information could be used in phone scams and fraudulent text messages. The banks’ main internet and mobile banking transaction systems were not breached. The attacks instead exposed customer information through loan inquiry pages, mobile employee tools and an outside sales-support system. Shinhan reported that 25,727 customers’ information was exposed. KB Kookmin reported 119 affected customers and employees, while Hana reported 89 customers. The pattern raises questions about whether banks gave these smaller systems the same scrutiny as their core banking services. According to Financial Supervisory Service data submitted to People Power Party lawmaker Lee Yang-soo, Hana spent 53 billion won on information security in 2025, KB Kookmin 39.3 billion won and Shinhan 31.68 billion won. The figures cover personnel, infrastructure and other services, without showing how much went toward the systems that were compromised. At KB Kookmin, almost 68 hours passed between the first intrusion and the bank recognizing the incident. Attackers accessed RM Agent and PB Agent, mobile support tools for employees, from late Sept. 27 until about 6 p.m. on Sept. 29. The bank recognized the incident around 7 p.m. the following day — roughly 25 hours after the attacks had stopped. The breach affected 99 customers and 20 employees, according to material submitted to the National Assembly. Exposed information included names, mobile phone numbers and some encrypted resident-registration numbers. Shinhan detected suspicious activity about 15 hours after the first access on the evening of Sept. 28. Blocking an IP address did not end the attack: intruders continued targeting six services, switching addresses as the bank blocked them. The attackers repeatedly entered different customer numbers to locate valid records, using IP addresses traced to eight countries. The bank made its final IP block shortly after midnight on Sept. 30. Exposed data included loan application information, names, phone numbers and some identity-verification information. At Hana, attackers targeted ODS, a system employees use to process customer paperwork outside branches. The attack lasted more than 10 hours on Sept. 30, and the bank identified the leak early on Oct. 2 — about 42 hours after the intrusion began. Hana said the server was separated from its transaction systems and that no account balances or transaction histories were exposed. The breaches came despite established security programs and, in Shinhan’s case, top regulatory assessment scores. Shinhan said in its half-year report that it had received an S grade with 100 points in the Financial Services Commission’s assessment of personal credit information management and protection, its sixth consecutive year with the top grade. It also holds domestic and international information-security certifications. KB Financial Group opened a cybersecurity center in January, pairing teams that simulate attacks with teams responsible for monitoring and defense. Hana says its integrated security monitoring center operates around the clock. Regulators are now pressing firms to examine the less visible systems connecting banks with employees, contractors and loan brokers. Following an on-site investigation launched after Shinhan’s Sept. 30 report, authorities shared attacker IP addresses and methods across the sector on Oct. 2. At a wider meeting on Oct. 4, the FSC and FSS ordered checks of all internet-facing systems, particularly authentication, access controls and vulnerabilities. Firms were told to block unnecessary external connections, limit permissions for essential access and check whether support services unnecessarily stored or exposed personal credit information. Authorities also called for prompt customer notification, compensation for losses and protection against follow-on scams. Banks and card companies were given until Tuesday to complete their reviews. Securities firms, insurers, savings banks and electronic financial businesses have until Thursday. Authorities are examining whether AI helped automate the attacks, although its precise role remains unconfirmed. Regulators urged firms to strengthen AI-based defenses and adopt zero-trust security, which requires verification rather than assuming a user or device can be trusted. Police said Tuesday they had formally opened a case under the Information and Communications Network Act and assigned a 28-member cyberterror investigation team. For the time being, consumers are opting to sit tight. “I haven't changed anything since,” said Lee, a consultant in their 50s. “I just thought the banks would strengthen security.” A university student who declined to be named said he had heard little discussion of the breaches. “I don't think the leaked information is likely to be mine,” he said. 2026-10-06 16:57:13
FSS identifies 19 IPs linked to financial cyberattacks SEOUL, Oct. 6 (AJP) —Seoul has identified 12 countries and territories hosting 19 internet protocol (IP) addresses linked to a barrage of cyberattacks on the country’s financial sector, spanning major commercial banks, regional and online lenders, and brokerage houses. The addresses were traced to 12 countries and regions, including the United States, Japan, Hong Kong, Singapore, Vietnam, Thailand, Malaysia, Spain, Latvia, Sweden and Germany, according to financial authorities and industry sources Tuesday. One was traced to South Korea. Five addresses were traced to the United States, while Japan, Sweden and Germany had two each. The Financial Supervisory Service (FSS) narrowed down the list after examining suspicious access linked to recent breaches at Shinhan Bank and other financial institutions. The regulator has distributed the list across the financial sector and asked firms to complete internal inspections and address any weaknesses by Thursday. The Financial Services Commission (FSC), the FSC and the FSS shared information on known attacks with financial institutions on Oct. 2 and distributed a security checklist to help prevent similar breaches, according to joint statement on Sunday. Concerning institutions were told to identify all externally exposed IT assets and services and review vulnerabilities, authentication, access controls and intrusion-detection systems. They were asked to promptly complete the inspections and report the results to the regulator. Authorities also told firms to check that previously shared threat information had been properly incorporated into their detection and blocking systems. The information included attack IP addresses, methods, intrusion attempts and past incidents. The filing also called on firms to review external access routes, block unnecessary access and limit essential access to the minimum permissions and information required. Systems used by employees and outside contractors were also to be checked for weaknesses that could allow authentication to be bypassed. Financial firms have since expanded their reviews to cover a longer period and a wider range of systems. Toss Bank, a South Korean online-only bank, found that two U.S.- based IP addresses linked to the recent attacks had also attempted to access its servers in January. The same addresses were detected again in access attempts in July and August. The investigation comes as recent breaches have raised concerns over cybersecurity across the country's financial sector. Shinhan Bank, one of the firms affected by the recent incidents, disclosed that an unauthorized external party had accessed a loan-related service and obtained personal and credit information linked to about 25,000 customers. The bank has pledged to compensate customers for any losses linked to the breach. 2026-10-06 14:09:38
Korean investors turn to Japan on weak yen and AI boom SEOUL, October 2 (AJP) — South Korean retail investors are increasingly looking across the Korea Strait as a stalling market at home and volatile U.S. bond prices turn their attention to Japan’s weak yen and expanding opportunities in the AI supply chain. South Korean investors bought $4.65 billion worth of Japanese stocks in the first nine months of 2026, up 94 percent from $2.40 billion a year earlier, according to the Korea Securities Depository (KSD). Purchases of U.S. shares remained vastly larger at $228.51 billion but fell 1.2 percent over the same period. Wall Street is still the dominant overseas destination for Korean money, though Japan is attracting renewed interest. For Shin, an investor in his 30s who bought SK hynix at around 2.5 million won, the neighboring market is now on his radar. “I didn’t have to look as far as Wall Street,” Shin said. Investors like Shin are known in Korea as “Ilhak ants,” a nickname for retail investors buying Japanese stocks. The shift became more visible in September, when Korean investors made net purchases of $11.21 million in Japanese stocks. Global X Nikkei 225, an exchange-traded fund tracking Japan’s benchmark index, alone attracted $14.36 million in net buying, according to KSD data. Four index ETFs among the 50 most-bought Japanese securities drew a combined $18.45 million in net purchases through Sept. 29, compared with $1.72 million across three index funds in August. Among individual stocks, SoftBank Group led with $6.48 million in net buying, followed by trading house Sumitomo Corp. at $2.94 million and chip-testing equipment maker Advantest at $2.73 million. The appeal rests on several factors: valuations below those of some competing markets, a currency that remains weak despite rising interest rates, and companies supplying the global AI investment boom. Yuji Hosaka, a specially appointed professor at Korea University’s Graduate School of Public Administration, said Japan presents an unusual combination of higher rates and resilient equities. “The conventional pattern is not playing out in the same way in Japan,” Hosaka said. “Rates are moving up gradually, but the yen remains weak.” That leaves room for investors to benefit from exporters’ currency advantage and, potentially, a gradual yen recovery, he said. Valuations offer an opening Japanese stocks are not uniformly cheap, but their valuations offer an opening for investors wary of the sharp gains in Korean and U.S. technology shares. The MSCI Japan Index traded at 16.38 times expected earnings as of Aug. 31. Its price-to-book ratio, which compares share prices with net asset values, stood at 2.03. An analyst specializing in the Japanese market told AJP that earlier underperformance had left parts of the market better positioned to benefit from improving semiconductor sentiment. “Japan had lagged other markets, so valuations still looked relatively attractive as semiconductor sentiment improved,” the analyst said. The weak yen also lowers the currency cost of entering the market, although Korean investors’ eventual returns depend on its movement against the won. Japan’s interest rates remain relatively low despite successive increases. The Bank of Japan raised its policy rate by 0.25 percentage point to 1.25 percent in September, its highest level in 31 years. Borrowing costs have risen, but funding conditions remain relatively supportive of corporate investment. Corporate-governance reforms provide another source of optimism. Japanese regulators and the Tokyo Stock Exchange have pressed listed companies to use capital more efficiently and improve corporate value. A July revision of the Corporate Governance Code placed greater emphasis on investment for growth and stronger board oversight. “The government and market authorities are pushing companies to improve corporate governance and corporate value,” Hosaka said. “That creates an expectation that companies will have to improve the way they are managed.” An alternative route into AI Japan’s semiconductor supply chain gives investors exposure to the same data-center spending that has lifted earnings expectations for U.S., Korean and Taiwanese chipmakers. Its companies supply the materials, components and equipment needed to manufacture and test increasingly sophisticated chips. Micron Technology this week forecast quarterly revenue above market estimates and said customer commitments under long-term supply agreements had risen to $32 billion from $22 billion in June, underscoring sustained demand for AI memory and data-center capacity. Japanese shares exposed to that spending have already made substantial gains. Memory-chip maker Kioxia had surged 456 percent this year as of Sept. 11. Advantest was the largest constituent of the Nikkei 225 by index weight as of Thursday, accounting for 11.77 percent. “The AI market itself is led by the United States, but Japanese semiconductor and equipment companies are moving with the same cycle,” the analyst said. “I see it as part of the broader semiconductor upturn.” Japan’s established robotics and factory-automation industries offer another route into that investment cycle. The country remained Asia’s second-largest industrial robot market in 2025, according to the International Federation of Robotics. The strength in manufacturing is also showing up in business confidence. The BOJ’s Tankan survey put sentiment among large manufacturers at plus 24 in the July–September quarter, its strongest reading since March 2018. Global AI demand supported manufacturers even as confidence among non-manufacturers weakened. For Korean investors, Hosaka said, some of Japan’s more established opportunities lie in the businesses surrounding chip production. “Japan’s materials, components and equipment suppliers should remain strong,” he said. “Those businesses are benefiting from the semiconductor boom.” The yen’s double edge The yen has remained weak despite monetary tightening, falling as far as 158.05 per dollar after the September rate increase. That boosts the yen value of overseas earnings for Japan’s exporters. A moderate currency recovery would not necessarily erase that advantage, the analyst said. “Even if the yen rebounds, it is still starting from a very weak level,” the analyst said. “Unless it suddenly strengthens to around 125 per dollar, a moderate recovery would not automatically put Japanese exporters at a disadvantage.” The Nikkei 225 stood at 68,189.94 on Friday, down 1.11 percent from Thursday’s record close of 68,956.72 but still about 3 percent above its Sept. 1 opening level. The question is how well the market can absorb further rate increases. Tokyo core consumer prices rose 2.7 percent in September from a year earlier, accelerating from 1.8 percent in August. A separate measure excluding fresh food and fuel climbed 3 percent, adding to pressure for further tightening. Several BOJ policymakers said at the September meeting that rates might need to rise faster if underlying inflation strengthened. Government representatives urged the central bank to assess the cumulative impact of earlier increases before moving too aggressively. For Korean investors, a stronger yen could add to returns when converted into won. But a sharp appreciation could squeeze exporters’ earnings, while higher borrowing costs could weigh on investment and stock valuations. Hosaka said gradual tightening alone was unlikely to derail the market. “Even with further rate increases, I do not think they will become a major long-term problem for Japanese stocks,” he said. 2026-10-02 17:52:48
KB Kookmin Bank reports data breach trailing Shinhan leak SEOUL, October 2 (AJP) — KB Kookmin Bank, one of South Korea's largest commercial banks, reported a data breach that exposed about 100 customer records through unauthorized external access, following a much larger breach at another bank giant Shinhan a day earlier. KB Kookmin Bank recently confirmed that customer information had been exposed through unauthorized external access, according to financial authorities and industry sources Friday. After detecting signs of abnormal activity, the bank blocked the affected server and the route used to access it. The leaked information came from an internal mobile system used by employees. The bank said the incident was unrelated to customer transactions, including internet and mobile banking. The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) received a report on the breach from the bank and are discussing follow-up measures. The case followed Shinhan Bank's disclosure a day earlier that personal and credit information linked to about 25,000 customers had been exposed in a cyberattack involving an artificial intelligence (AI) agent. Shinhan said the compromised data included information related to loan applications. The bank later apologized and pledged to compensate customers for any losses linked to the breach. The incidents have put focus on cybersecurity at the country's largest commercial banks. Financial authorities are conducting an on-site review to determine whether further damage occurred. AJP Takeaways - KB Kookmin Bank said on October 2, 2026, that about 100 customer records were exposed through unauthorized external access. - KB Kookmin Bank said the affected system was an internal employee platform, separate from internet and mobile banking. - The KB Kookmin Bank breach followed Shinhan Bank's October 1, 2026, disclosure of a data leak affecting about 25,000 customers. 2026-10-02 13:04:34
KOSPI jumps nearly 2% on chip rally, U.S. investment deal SEOUL, October 01 (AJP) — South Korean stocks rebounded nearly 2 percent Thursday as Micron Technology's stronger results lifted semiconductor shares, while nuclear and steel stocks gained on new U.S. energy investment projects. The benchmark KOSPI closed higher at 6,971.35, up 1.95 percent from the previous session. The index opened 0.34 percent lower at 6,814.49 and fell as low as 6,765.06 before reversing higher through the session. Institutions bought a net 334.4 billion won ($246 million) of KOSPI shares, while retail investors sold about 1.43 trillion won and foreign investors unloaded 544.2 billion won. The rebound followed Micron's fiscal fourth-quarter results, which beat market expectations and reinforced confidence in demand for memory chips used in artificial intelligence (AI) infrastructure. Micron reported fiscal fourth-quarter revenue of $54.23 billion and adjusted earnings of $33.42 per share. The company forecast revenue of about $61.5 billion for the following quarter, also above market estimates. Customer financial commitments under its long-term supply agreements increased to about $32 billion from $22 billion in June as AI-related memory demand continued to expand. The results helped semiconductor stocks recover after several sessions of pressure from high U.S. Treasury yields and foreign selling. Samsung Electronics closed the regular session 2.79 percent higher at 276,000 won, while SK hynix gained 3.21 percent to 1,833,000 won. Both stocks pared some of their regular-session gains after the close. In KRX after-market trading as of 4:34 p.m., Samsung Electronics was at 273,000 won, while SK hynix traded at 1,815,000 won. Samsung Electronics preferred shares were up 3.23 percent at 201,500 won, while Samsung Electro-Mechanics gained 2.05 percent to 1,544,000 won. SK Square, the largest shareholder of SK hynix, was up 0.26 percent at 1,142,000 won. South Korea's latest export data added to optimism over the chip cycle. Semiconductor exports surged 262.8 percent from a year earlier to a record $60.3 billion in September, helping lift South Korea's overall exports to a record $120.94 billion, up 83.5 percent year on year, according to the Ministry of Trade, Industry and Resources (MOTIR) Thursday. Energy and infrastructure stocks were another focus after South Korea and the United States unveiled plans for projects under Seoul's $200 billion strategic investment commitment. The two countries agreed on a framework to use a $120 billion strategic investment fund to build eight large nuclear reactors in the United States, including two Korean-designed APR1400 units and six Westinghouse AP1000 units, with Korean companies expected to participate in the projects. The plans lifted nuclear-related shares. Wonil T&I hit the daily limit, jumping 29.94 percent to 10,850 won, while KEPCO Engineering & Construction rose 2.61 percent to 125,800 won and Doosan Enerbility gained 0.61 percent to 82,100 won. Steel shares also rose on expectations that the U.S. energy projects could boost demand for construction materials and pipelines. Daehan Steel surged 16.82 percent to 9,100 won, while SeAH Besteel Holdings gained 4.56 percent to 47,000 won and Dongkuk Steel advanced 4.55 percent to 9,880 won. Investors also focused on the proposed Alaska LNG project, which includes a roughly 1,300-kilometer pipeline from Alaska's North Slope to an LNG export terminal. The project could create substantial demand for steel pipes if it proceeds. Other major KOSPI stocks also remained higher in after-market trading. LG Energy Solution was up 0.70 percent at 359,500 won, Hyundai Motor gained 0.72 percent to 347,500 won and Samsung Biologics rose 2.44 percent to 1,425,000 won. The KOSDAQ posted an even stronger advance. The junior index jumped 4.48 percent to close at 894.29. It had opened at 853.96 and briefly fallen to 851.92 before turning higher. Foreign investors bought a net 230.8 billion won of KOSDAQ shares and institutions purchased 568.2 billion won, while retail investors sold about 776.1 billion won. The advance broadened beyond large-cap memory stocks as stronger Micron capital-spending expectations supported semiconductor equipment makers, while biotechnology and battery stocks also attracted buying. The strength continued into after-market trading. Wonik IPS, a semiconductor equipment maker focused on deposition and other chip-manufacturing systems, was up 7.76 percent at 141,700 won as of 4:34 p.m. EO Technics, which supplies laser-processing equipment for semiconductor, display and printed-circuit-board production, gained 6.54 percent to 554,000 won. Jusung Engineering, a maker of semiconductor deposition equipment including ALD and CVD systems, rose 2.37 percent to 238,000 won. LEENO Industrial, which makes semiconductor test probes and IC test sockets, climbed 9.95 percent to 80,700 won. Simmtech, a supplier of semiconductor package substrates, gained 4.99 percent to 157,800 won. HPSP, a semiconductor equipment company, rose 7.22 percent to 68,300 won. Battery shares also remained firm. EcoPro, the holding company of a battery-materials group, rose 4.59 percent to 84,300 won, while cathode-material producer EcoPro BM advanced 4.03 percent to 113,500 won. Alteogen, a biotechnology company developing platform technologies for biologic drugs, gained 3.34 percent to 263,000 won. Rainbow Robotics, which develops collaborative, mobile and humanoid-based robot platforms, rose 3.59 percent to 433,000 won. The turnaround also marked a sharp change from the previous session, when the KOSPI fell for a third straight day as foreign and institutional selling overwhelmed early gains in chip stocks. Still, high U.S. borrowing costs remained a source of pressure. The U.S. 10-year Treasury yield had climbed above 5.3 percent overnight, keeping investors sensitive to the outlook for inflation and interest rates. The Korean won weakened to around 1,362.70 per dollar from 1,361.6 earlier Thursday. Across the region, Japan's Nikkei 225 surged 3.30 percent to 68,956.72 as chip and AI-related shares rallied on strong semiconductor demand. Hong Kong and mainland Chinese markets were closed for the National Day holiday. AJP Takeaways - The KOSPI reversed an early decline to close 1.95 percent higher at 6,971.35 on October 1, supported by institutional buying and a rebound in semiconductor shares. - Micron Technology's record fiscal fourth-quarter revenue and stronger-than-expected guidance lifted sentiment toward Samsung Electronics, SK hynix and South Korean semiconductor equipment makers. - South Korea's September semiconductor exports surged 262.8 percent year on year to a record $60.3 billion, adding to expectations that AI-driven memory demand remains strong. Korea.kr - The KOSDAQ jumped 4.48 percent to 894.29 as foreign and institutional investors bought semiconductor equipment, battery and biotechnology shares. 2026-10-01 17:48:55
KOSPI enters fourth quarter fighting to reclaim 7,000 SEOUL, October 01 (AJP) — Much of the KOSPI’s early-year exuberance has fizzled out as 2026 enters its final quarter, with thinning trade, volatile bond markets and monetary tightening cooling the leveraged bets that helped propel its rally. After taking nearly five years to climb from 3,000 to 4,000, the benchmark swept past successive milestones to breach 9,000 in June. Now, 7,000 has become a resistance level, raising the question of how long the next breakthrough will take. The index ended the third quarter at 6,838.04, down 19.3 percent over the period and 25 percent below its June 22 record close of 9,114.55. It began the fourth quarter with a 1.95 percent rebound to 6,971.35 on Thursday. Institutions bought a net 334.3 billion won of shares, helping offset foreign selling of 547.3 billion won. The recovery left the benchmark within reach of 7,000, but the forces behind its retreat remain. Elevated oil prices, persistent inflation and U.S. long-term yields above 5 percent have eroded the appeal of equities even as corporate earnings stay strong. Average daily turnover fell 38 percent from the second quarter to 34.66 trillion won ($25.7 billion) in the third, leaving the market with less buying power to absorb selling pressure. Kim Doo-eun, an analyst at Hana Securities, estimates that about 91.6 trillion won in potential selling pressure has accumulated around 7,000 as investors who bought near that level wait for an opportunity to exit. Still, he sees an important distinction between the current impasse and the nearly five-year climb from 3,000 to 4,000. “The biggest difference is that we are now in the AI era,” he said. “Samsung Electronics and SK hynix have gained a much stronger position in the global market.” Their earnings strength could help the benchmark break out sooner, he added. “The upside is that the market has developed some resistance to the bad news we have already seen,” Kim said. “At the same time, corporate earnings continue to improve.” That improvement has yet to overcome the drag from global borrowing costs. The U.S. 10-year Treasury yield remained above 5.2 percent at the end of September despite an easing in oil prices, keeping pressure on equity valuations. “By conventional valuation measures, the market looks unusually undervalued,” an analyst at Yuanta Securities said. “But that alone does not tell the full story, as external macro uncertainties are still weighing heavily on valuations.” Higher bond yields reduce the incentive to take additional risk in Korean stocks, the analyst said, making them a greater constraint on foreign inflows than short-term currency movements. The won traded around 1,350 per dollar on Wednesday with relatively limited volatility, yet foreigners sold a net 2.05 trillion won of KOSPI shares, concentrating on heavyweights including Samsung Electronics and SK hynix. Kim Dae-jong, an economics professor at Sejong University, said further increases in U.S. long-term yields and persistent foreign selling could keep the index below 7,000 for an extended period. Earnings offer the strongest counterweight. Consensus estimates for 109 KOSPI-listed companies put third-quarter operating profit at 218.27 trillion won, up 20.4 percent from the previous quarter. Electrical and electronics companies, led by the two chipmakers, are expected to account for 189.15 trillion won, up 25.2 percent. AI infrastructure spending by major U.S. technology companies continues to support demand for high-bandwidth memory and other advanced chips. “Major U.S. technology companies cannot keep increasing AI spending forever,” the Yuanta analyst said, although he sees little sign of an imminent sustained slowdown. Goldman Sachs has maintained its KOSPI target of 12,000, arguing that investors underestimate the duration of Korea’s memory-chip earnings cycle. It projects capital spending by major U.S. technology companies could reach $1.2 trillion next year. Australia’s Macquarie has also retained its 8,000 target, attributing the correction to lower valuations rather than weaker fundamentals. Turning those earnings expectations into a sustained rally may require a change in who is buying. Retail investors provided substantial support in the first half, purchasing a net 99.17 trillion won of KOSPI shares while foreigners sold a net 148.32 trillion won. The Yuanta analyst expects the next phase to follow a different pattern. “Foreign investors would likely need to return first, and then retail investors would follow.” Kim of Sejong said individuals could take profits or stay on the sidelines near 7,000, returning as bargain buyers after sharper declines — a pattern already evident this year. Their willingness to commit will depend partly on the war involving the United States and Iran. A prolonged conflict, elevated oil prices and further U.S. rate increases would be the worst combination for Korean equities, the Yuanta analyst said. Korea’s exposure is substantial. Energy imports rose 27.9 percent from a year earlier in the first 20 days of September, while crude-oil imports increased 37.3 percent, customs data showed. A BOK official said international oil prices during Sept. 1–16 were 29 percent above the August average, posing an upside risk to producer prices. The government last month set a target of reducing dependence on crude from any single region to below 50 percent by 2035, from around 70 percent, as it seeks to diversify supplies following Middle East disruptions. U.S.-China tensions and the November U.S. midterm elections add another layer of uncertainty. “Policy changes tied to the U.S.-China technology rivalry will remain an important variable for Korean stocks,” Kim of Sejong said. “Around the U.S. midterm elections, shifts in fiscal, trade and AI infrastructure policy could also increase volatility through Treasury yields, the dollar and global equities.” The vote could also clear some of the uncertainty, the Yuanta analyst said. “If we are already passing the worst point, the midterm elections may not necessarily be negative for stocks,” he said. “Some of the uncertainty weighing on the market could ease once the vote is over.” History offers some support: Hana Securities found that the S&P 500 rose in the fourth quarter in five of the six U.S. midterm-election years since 2000, with an average gain of 3.6 percent. At home, dividends, share buybacks and cancellations have helped cushion the market, according to the Yuanta analyst. “The market held up even when almost every macro variable was unfavorable,” he said. “If additional shareholder returns continue, there is more reason to look upward than downward.” Any recovery, however, could remain narrow. Biotechnology and battery shares have been uneven, while buying has increasingly favored semiconductor materials, components and equipment suppliers. Easing macroeconomic uncertainty could broaden interest to nuclear power, energy storage and shipbuilding, he said. For now, the test is whether the KOSPI can turn a move above 7,000 into a sustained recovery. “What matters is whether trading volume and foreign inflows support the index once it gets above that level,” Kim of Sejong said. AJP Takeaways - The KOSPI opened the fourth quarter just below 7,000 after losing 19.3 percent in the third quarter. - Daily turnover fell 38 percent, weakening the market’s ability to absorb selling as high U.S. yields discourage foreign inflows. - Strong chip earnings and shareholder returns provide support, but a durable recovery will require broader buying and relief from oil and interest-rate pressures. 2026-10-01 17:17:38