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 leads broad Asian rebound after three-day rout
    Seoul leads broad Asian rebound after three-day rout SEOUL, July 09 (AJP) — South Korean stocks led a broad Asian rebound Thursday as chip heavyweights surged ahead of SK hynix's highly anticipated Nasdaq ADR debut, while the Bank of Korea's upbeat view on the semiconductor cycle helped outweigh growing skepticism over AI valuations on Wall Street. As of 10:37 a.m., the benchmark KOSPI jumped 2.87 percent to 7,454.62 after tumbling more than 10 percent over the previous three sessions. The junior KOSDAQ climbed 3.66 percent to 813.70, also rebounding from a nearly 10 percent decline this week. Chipmakers spearheaded the recovery after the Bank of Korea said the recent correction in domestic equities was unlikely to develop into a prolonged downturn, citing improving earnings prospects for semiconductor companies. The central bank also said the global chip upcycle should remain intact as AI adoption broadens and major technology companies continue pouring investment into AI infrastructure. The upbeat domestic assessment contrasted with a more cautious tone overseas. Goldman Sachs said overnight that while companies are still expected to beat earnings estimates, strong results alone may no longer be enough to sustain the AI-driven rally because investor expectations have become increasingly demanding. Samsung Electronics rose 3.15 percent to 286,250 won after sliding 6.25 percent in the previous session to its lowest close since May 20. SK hynix rallied 7.90 percent to 2,240,000 won after falling 5.68 percent to its weakest finish since June 5, buoyed by expectations ahead of Friday's American depositary receipt (ADR) debut on Nasdaq. The gains spread across technology and large-cap stocks. SK Square climbed 5.98 percent, LG Energy Solution advanced 4.60 percent, Samsung Electro-Mechanics added 3.45 percent, Samsung Electronics preferred shares rose 3.32 percent, Samsung C&T gained 2.78 percent and KB Financial advanced 1.81 percent. HD Hyundai Heavy Industries edged up 0.97 percent, while Samsung Biologics and Shinhan Financial Group were little changed, rising 0.29 percent and 0.09 percent, respectively. Losses were confined to a handful of cyclical names. Hanwha Aerospace fell 3.75 percent, Kia dropped 3.64 percent, Samsung Life Insurance lost 3.03 percent and Hyundai Motor slipped 2.05 percent. The won weakened against the dollar to 1,506.80 from the previous close of 1,498.50 despite a return of foreign buying. Overnight, Wall Street finished mixed as renewed military tensions between the United States and Iran kept investors cautious. The Dow Jones Industrial Average fell 1.09 percent and the S&P 500 lost 0.28 percent, while the Nasdaq Composite edged up 0.20 percent. Elsewhere in Asia, Japan's Nikkei 225 rose 2.08 percent and Hong Kong's Hang Seng Index gained 0.18 percent. China's Shanghai Composite was the regional laggard, easing 0.02 percent. 2026-07-09 10:58:45
  • AI peak fears hammer Asia, KOSPI for second straight session
    AI peak fears hammer Asia, KOSPI for second straight session SEOUL, July 08 (AJP) - A wave of panic selling triggered by fears that the AI chip boom may have peaked swept through Asia's technology-heavy markets on Wednesday, sending the KOSPI sharply lower for a second straight session and triggering sell-side sidecars on both the KOSPI and KOSDAQ as escalating Middle East tensions compounded the rout. The benchmark KOSPI tumbled 5.35 percent to 7,246.79, while the tech-heavy KOSDAQ slumped 5.56 percent to 785.00. The KOSPI opened 2.7 percent lower, briefly rebounded nearly 2 percent in early trading, then reversed course and fell more than 6 percent intraday before closing at its lowest level in seven weeks. The slide pushed the market's capitalization below 6,000 trillion won for the first time since May 20. As stock index futures extended their losses, the Korea Exchange activated sell-side sidecars on the KOSPI at 1:31 p.m. and on the KOSDAQ two minutes later. The two chip heavyweights remained at the center of the rout. Samsung Electronics fell 6.25 percent to 277,500 won, its lowest close since May 20, while SK hynix dropped 5.68 percent to 2,076,000 won, its weakest finish since June 5. The selloff extended into a second day after Samsung Electronics reported record operating profit but weaker-than-expected revenue, reinforcing concerns that the semiconductor cycle may be nearing its peak. Those worries intensified after Morgan Stanley warned in a recent report that the memory market was approaching its peak growth rate. Rebalancing by single-stock leveraged exchange-traded funds appeared to amplify the decline. Leveraged ETFs tied to Samsung Electronics and SK hynix fell between 10 percent and 13 percent, with all 14 funds trading below their 20,000-won listing price. The weakness quickly spread across the broader market. SK Square fell 6.34 percent to 1.27 million won, Samsung Electronics preferred shares lost 6.22 percent to 186,900 won and Samsung Electro-Mechanics plunged 10.25 percent to 147,900 won, making it one of the day's worst-performing blue chips. Most other large-cap stocks also retreated. Hyundai Motor fell 3.55 percent to 462,500 won, LG Energy Solution lost 4.97 percent to 315,500 won, Samsung Life Insurance slid 7.73 percent to 346,000 won, Samsung C&T dropped 6.95 percent to 395,000 won, Samsung Biologics declined 4.15 percent to 1.363 million won, HD Hyundai Heavy Industries fell 6.34 percent to 517,000 won, Hanwha Aerospace lost 7.22 percent to 1.041 million won, KB Financial eased 1.27 percent to 171,000 won and Shinhan Financial slipped 1.20 percent to 107,300 won. Kia stood out as the lone major gainer, rising 2.02 percent to 156,800 won on expectations of stronger earnings supported by growing sales of eco-friendly vehicles. Investor sentiment deteriorated further after military tensions between the United States and Iran intensified following attacks on commercial vessels near the Strait of Hormuz, adding geopolitical uncertainty to already fragile market confidence. The Korean won strengthened sharply to 1,503.40 per dollar from 1,528.20 in the previous session on foreign return to the KOSPI. 2026-07-08 17:29:08
  • Ants deserting the KOSDAQ nest for chip harvest
    Ants deserting the KOSDAQ nest for chip harvest SEOUL, July 08 (AJP) — The KOSDAQ has long been the playground of Korea's "ants," the moniker in Korea for retail investors, who dominate the country's junior stock market. Now the colony is on the move. The tech-heavy junior market, which recently turned 30, has retreated more than 10 percent so far this year, ranking among the world's weakest performers, while the benchmark KOSPI has surged more than 82 percent. Its sluggish performance owes much to the desertion of its primary players — the ants who have jumped ship to ride the AI wave sweeping the bigger bourse. Individual investors who once chased aggressive returns in biotech, healthcare and other growth stocks on the KOSDAQ are increasingly migrating to large-cap semiconductor bets on the main bourse, drawn by the artificial intelligence boom and newly launched single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK hynix. Since leveraged ETFs linked to the two chip giants debuted on May 27, the KOSDAQ has set seven new yearly lows. Over the same period, the KOSPI gained 2.3 percent, while the junior market fell 8.8 percent. According to Koscom's ETF CHECK, KODEX KOSDAQ150, the country's largest ETF tracking the KOSDAQ150 index, was down 13.9 percent over the past month as of Wednesday afternoon, underscoring broad weakness across the junior market. The contrast is also visible in long-short strategies. KODEX 200 Long KOSDAQ150 Short Futures, which benefits when large-cap shares outperform the junior market, returned 9.04 percent over the past month. Its mirror strategy, KODEX KOSDAQ150 Long KOSPI200 Short Futures, lost 12.63 percent. The shift extends beyond market performance. Investor deposits — cash held in brokerage accounts for future stock purchases — fell to 112.2 trillion won as of Monday, down from 139.7 trillion won a month earlier and the lowest level in nearly three months. Over the past month, retail investors also turned net sellers of KOSDAQ shares, unloading a net 1.41 trillion won. Trading activity tells the same story. According to Korea Exchange Data Marketplace, total KOSDAQ trading value fell from about 306 trillion won during the 10 trading sessions from May 13 to May 26, immediately before the ETF launch, to 209 trillion won during the following 10 sessions from May 27 to June 11. It declined further to 145 trillion won during the latest 10-session period from June 24 to July 7. Retail trading showed an even sharper contrast. During the first 10 trading sessions after the May 27 launch, retail trading value on the KOSPI rose 4.1 percent from the preceding 10-session period, while retail trading on the KOSDAQ fell 37.9 percent. By the latest comparable period, retail trading on the junior market had dropped 60.6 percent from its pre-launch level, compared with a 28.2 percent decline on the KOSPI. Retail investors account for roughly 79 percent of KOSDAQ trading volume, according to KRX data, making changes in their behavior a key measure of liquidity and sentiment. During the retail-investing boom sparked by the COVID-19 pandemic in 2020 and 2021, individual investors accounted for 84 percent to 87 percent of KOSDAQ trading. Traditionally, investors seeking high-risk, high-return opportunities gravitated toward biotechnology, healthcare and other growth companies listed on the KOSDAQ. Leveraged exposure to Korea's two largest semiconductor companies has now provided an alternative: speculative upside backed by strong earnings and the global AI investment boom. Whether the shift proves temporary or structural remains unclear. But as long as retail money remains concentrated in chip-linked products and fresh cash stays thin, a meaningful KOSDAQ recovery may remain elusive. The KOSDAQ closed Wednesday 5.56 percent down at 785, far below its debut at 1,000 points on July 1, 1996. 2026-07-08 17:10:08
  • South Korea urges US to reconsider proposed tariffs over alleged forced-labor imports
    South Korea urges US to reconsider proposed tariffs over alleged forced-labor imports SEOUL, July 8 (AJP) - South Korea urged the U.S. earlier this week to reconsider its proposed tariffs on imports linked to forced labor, according to the Office of the United States Trade Representative (USTR). In a statement submitted to the USTR last Monday, South Korea said it believes the proposed action against the country "is unwarranted and needs to be revised," while sharing Washington's concerns over the "use of forced labor in global supply chains and the need for its elimination." The statement argued that the USTR's conclusion "relies on certain case studies that illustrate how the importation of forced labor goods from specific economies burdens or restricts U.S. commerce," adding that it "appears not to have sufficiently taken into account Korea has doubts as to the basis for the conclusion that it has burdened or restricted U.S. commerce through the importation of such goods," it said. It also pointed out that the International Energy Agency (IEA)'s report cited by the USTR does not identify South Korea as importing polysilicon produced with forced labor or exporting related processed products to the U.S. It also stressed that South Korea remains committed to implementing a pledge made in a joint fact sheet with the U.S. after the two countries reached a broader bilateral trade deal last fall. The statement came in response to the USTR's proposed tariffs under Section 301 of the U.S. Trade Act of 1974, announced early last month. The USTR said 60 economies including South Korea had failed to impose or effectively enforce bans on imports of goods made with forced labor, concluding that such practices unreasonably burden or restrict U.S. commerce. It then proposed additional tariffs of 10 to 12.5 percent on economies that have adopted or committed to importing goods produced with forced labor. 2026-07-08 15:26:01
  • Korean retail flow suggests stock frenzy may be fizzling out
    Korean retail flow suggests stock frenzy may be fizzling out SEOUL, July 07 (AJP) — Korean individual deposits at brokerage houses are thinning fast while overseas stock buying is also losing momentum, suggesting the retail stock frenzy may have peaked and the firepower that has so far sustained the KOSPI against relentless foreign selling could be running out. Investor deposits — cash held in brokerage accounts for future stock purchases — fell to 112.21 trillion won ($76.7 billion) as of Monday, according to the Korea Financial Investment Association, down more than 6 trillion won from 118.26 trillion won on July 3 and the lowest level in nearly three months. The decline came despite a sharp return in retail buying. Individual investors purchased a combined net 3.47 trillion won worth of domestic equities and exchange-traded funds (ETFs) on July 6, including 2.68 trillion won on the KOSPI and 259.1 billion won on the KOSDAQ. Yet investor deposits continued to shrink, suggesting the buying was financed largely with existing market liquidity rather than fresh cash entering brokerage accounts. The outflow has been swift. Investor deposits have dropped more than 20 trillion won from 139.69 trillion won on June 4 and another 20 trillion won in just five trading sessions from 132.47 trillion won on June 29. The figures point to a widening disconnect between trading activity and market liquidity. Retail investors have resumed aggressive buying, but without a corresponding increase in cash parked at brokerages, indicating that existing funds are simply changing hands rather than new money entering the market. Earlier trading data pointed in the same direction. On July 3, individuals sold a net 2.56 trillion won worth of KOSPI shares and another 101.4 billion won of ETFs while buying a net 148.1 billion won on the KOSDAQ. Only part of that money moved overseas. According to Korea Securities Depository data, Korean investors bought $1.94 billion and sold $1.17 billion worth of foreign stocks on July 3, for net purchases of $773.72 million, or roughly 1.12 trillion won. U.S. stocks accounted for virtually all of the inflow, with net purchases totaling $777.77 million. That means less than half of the proceeds from KOSPI sales appears to have been redirected into overseas equities. Even after accounting for those purchases, more than 1 trillion won would ordinarily have remained in brokerage accounts. Instead, investor deposits continued to decline, suggesting some funds were leaving brokerage accounts altogether rather than being recycled within equity markets. The pattern indicates retail investors may be reducing overall risk exposure, with part of the cash likely moving into bank deposits, money-market funds or other lower-volatility assets. Signs of stress among leveraged investors also persisted. Outstanding unpaid stock settlement balances rose to 1.44 trillion won as of July 6 from 1.13 trillion won three trading days earlier, indicating that unsettled trading obligations continued to accumulate. Forced liquidations eased to 39.7 billion won from 56.4 billion won, while the ratio of forced selling to outstanding unsettled balances declined to 3.5 percent from 5.3 percent. Although immediate liquidation pressure moderated, the increase in unpaid balances suggests leveraged investors remain under strain. The market remained highly volatile Tuesday, with the benchmark KOSPI tumbling 4.91 percent to 7,656.31 and the KOSDAQ falling 1.87 percent to 831.23. Taken together, the latest data suggest the recent market rebound has relied more on recycled liquidity than fresh retail inflows. Until investor deposits begin rising alongside retail buying, the market's ability to absorb sustained foreign selling is likely to remain limited. 2026-07-07 17:45:22
  • Investors take profit instead of celebrating Samsung Elec record Q2
    Investors take profit instead of celebrating Samsung Elec record Q2 SEOUL, July 7 (AJP) — South Korea's main bourse sank Tuesday along with chip giants as investors took Samsung Electronics' second-quarter earnings as a cue to take profits rather than celebrate the record performance. As of 11:00 a.m., the benchmark KOSPI had plunged 4.29 percent to 7,697.18. The junior KOSDAQ edged down 0.41 percent to 843.60. Samsung Electronics estimated second-quarter operating profit at 89.4 trillion won, a figure that could approach 10 trillion won excluding one-off bonus payments to employees. The astronomical result nevertheless stoked concerns that the AI-driven boom may be nearing its peak. The market bellwether fell 6.45 percent to 297,500 won in morning trading. No. 2 chipmaker SK hynix also lost nearly 6 percent to 2,209,000 won as investors pulled money from Seoul ahead of its $29 billion American depositary receipt (ADR) listing on the Nasdaq. The stock nevertheless remained a favorite among retail investors. On Monday, the KODEX SK hynix Single Stock Leverage ETF attracted 111.2 billion won in net purchases from individuals, the largest daily inflow among domestic ETFs, as they bet the stock still had room to rise after gaining U.S. market exposure. Defense shares also weighed heavily on the benchmark after Canada selected Germany's Thyssenkrupp Marine Systems (TKMS) over the Hanwha Ocean-led Korean consortium as the preferred bidder for its next-generation submarine program. Hanwha Ocean tumbled 22.57 percent to 89,900 won after the setback, while fellow bidder HD Hyundai Heavy Industries fell 3.95 percent. Most other blue-chip stocks also retreated, with SK Square falling 9.83 percent to 1,348,000 won, Samsung Electro-Mechanics down 8.59 percent to 167,100 won, Samsung Life Insurance losing 8.13 percent to 361,500 won, LG Energy Solution declining 6.77 percent to 330,500 won, Hyundai Motor dropping 6.57 percent to 469,000 won and Samsung C&T slipping 5.78 percent to 423,500 won. Meanwhile, brokerage firms said biotechnology shares could be re-rated as the government prepares to introduce a new classification system for the KOSDAQ market. Hana Securities said the system could help restore confidence among foreign and institutional investors, while premium stock classifications, technology transfer announcements and major medical conferences are expected to improve sentiment from the fourth quarter. The optimism was reflected in Tuesday's trading, with biotechnology shares outperforming the broader market. Alteogen rose 1.81 percent to 337,000 won, HLB gained 2.51 percent to 49,975 won and Abelbio jumped 4.77 percent to 94,500 won, helping support the KOSDAQ despite broader market weakness. Overnight, Wall Street closed higher as easing oil prices and optimism over the U.S. earnings season offset weakness in semiconductor shares. The S&P 500 rose 0.72 percent and the Nasdaq gained 1.12 percent, though the gains did little to lift sentiment in Seoul. Japan's Nikkei 225 fell 1.35 percent, mirroring the retreat in Seoul's chip sector. China's Shanghai Composite slipped 0.45 percent. Hong Kong's Hang Seng, however, bucked the regional trend, rising 0.31 percent. 2026-07-07 11:24:42
  • Hot Stock: Hanwha Ocean nosedives 23% upon losing Canadian sub bid
    Hot Stock: Hanwha Ocean nosedives 23% upon losing Canadian sub bid SEOUL, July 07 (AJP) — Shares of Hanwha Ocean plunged Tuesday after the South Korean shipbuilder failed to secure preferred bidder status for Canada's next-generation submarine procurement program, dashing investor hopes of winning one of the world's largest submarine export deals. The stock was trading at 89,900 won as of 9:50 a.m., down 22.57 percent from the previous session after triggering a volatility curb shortly after the market opened. Shares of HD Hyundai Heavy Industries, which partnered with Hanwha Ocean in the bid, also fell 3.95 percent to 560,000 won. Canadian Prime Minister Mark Carney announced Monday (local time) that Germany's Thyssenkrupp Marine Systems (TKMS) had been selected as the preferred bidder for the Canadian Patrol Submarine Project (CPSP), a program valued at about 60 trillion won ($43.6 billion) including procurement and 30 years of maintenance, repair and overhaul (MRO) services. Under the project, Canada plans to replace its four aging submarines with up to 12 new diesel-electric submarines by the mid-2030s. The Korean shipbuilder had promoted its 3,000-ton KSS-III submarine by highlighting its ability to deliver vessels on a relatively short timeline while offering long-term industrial cooperation and local MRO infrastructure in Canada. TKMS, however, strengthened its competing proposal by offering to prioritize Canadian deliveries ahead of submarines already scheduled for Germany and Norway. The South Korean shipbuilder had pitched its 3,000-ton KSS-III submarine, highlighting faster delivery, local MRO capabilities and broader industrial cooperation with Canada. TKMS, meanwhile, offered to prioritize Canadian deliveries ahead of submarines already scheduled for Germany and Norway. Industry analysts said the two finalists had been viewed as broadly comparable on technology and delivery capability, with geopolitical considerations ultimately tipping the balance. In a statement, Hanwha Ocean said it was disappointed by the outcome despite making every effort, adding that it had been unable to overcome "the NATO alliance barrier." The company said it accepts the result as its own shortcoming and remains committed to pursuing opportunities in the global naval defense market. "We will closely examine the challenges revealed through this competition, come up with clear solutions, and find a way for Korea's naval defense industry to make a greater leap in the global market," the company said. HD Hyundai Heavy Industries also struck an optimistic tone. "Although we are disappointed that our efforts did not result in success, the experience of competing as one Team Korea will serve as a solid stepping stone for K-defense to make a significant leap forward," the company said. Hanwha Ocean stands as the "reserve" supplier should negotiations between Ottawa and the German team that could take "six to 18 months" falter. 2026-07-07 10:23:10
  • Even government bonds can bite, South Koreas regulator warns
    Even government bonds can bite, South Korea's regulator warns SEOUL, July 06 (AJP) — South Korea's financial regulator on Monday warned that even government bonds, long regarded by many retail investors as one of the safest investments, can generate significant losses if interest rates rise. The Financial Supervisory Service (FSS) issued the warning as part of its latest investor education campaign on common investment disputes after complaints increased from investors who suffered unexpected losses after buying low-risk bonds, including Korean government bonds, on brokerage recommendations. The FSS said that while government bonds carry little default risk, their market value can fall when interest rates rise, meaning investors who sell before maturity may incur losses. A 30-year government bond with a face value of 10,000 won that pays a 3 percent annual interest rate could lose about 17 percent of its market value if market interest rates rise by one percentage point, it said. The FSS also urged investors to be cautious about buying long-term bonds, saying they should consider whether they may need access to their money before the bonds mature. Investors who want to preserve their principal or who may need cash for unexpected expenses should be particularly careful. "The longer a bond's maturity, the more its price will fluctuate as market interest rates change," it said. The regulator further cautioned investors against relying solely on sales representatives' interest-rate forecasts when making investment decisions. It noted that market interest rates do not always move in line with the central bank's policy rate, meaning bond prices can still fall even when the central bank cuts rates. The FSS also urged investors to compare prices before buying bonds directly from brokerages, as transaction costs and dealer spreads can make those bonds more expensive than similar ones traded on the Korea Exchange. Exchange-traded bonds may offer lower prices, although they can be harder to buy because of limited liquidity. "We will continue to provide timely guidance on investment risks and strengthen investor protection where necessary," the FSS said. 2026-07-06 17:41:56
  • Durability of Seouls bull questioned as leverage exceeds retail trade
    Durability of Seoul's bull questioned as leverage exceeds retail trade SEOUL, July 06 (AJP) — As the KOSPI correction enters a third week, retail investors remain the primary buffer against relentless foreign selling, but much of their firepower is borrowed, raising questions about the durability of Seoul's record-setting bull market. Outstanding margin loans and stock-backed lending averaged a record 61.98 trillion won ($39.8 billion) per trading day during the April-June quarter, exceeding the combined average daily trading value of 52.5 trillion won on the KOSPI and KOSDAQ over the same period, according to Korea Exchange (KRX) data. Outstanding margin loans climbed 15.9 percent from the first quarter to a record 35.94 trillion won, while stock-backed loans — borrowing secured against shares investors already owned — remained virtually unchanged at 25.97 trillion won. The divergence suggests investors were increasingly borrowing to finance new stock purchases rather than tapping existing holdings for liquidity. The surge in leverage coincided with one of the most extraordinary rallies in the history of South Korea's equity market. The benchmark KOSPI surged past the 5,000 level for the first time in January, broke above 6,000 in February, raced through both 7,000 and 8,000 in May and surpassed 9,000 for the first time in June. The KOSPI has since retreated to just above the 8,000 mark as of Monday after weeks of record foreign selling. The first-half rally was fueled by optimism surrounding artificial intelligence and South Korea's memory-chip industry, led by Samsung Electronics and SK hynix. As prices climbed rapidly, fear of missing out drew more money into the market while early investors locked in profits, producing increasingly sharp swings in share prices. The Korea Exchange said volatility interruption mechanisms, or VIs — temporary two-minute auctions triggered when individual stocks move too sharply — were activated 29,357 times during the first half of the year, the highest number ever recorded for a six-month period. The previous record of 24,401 came during the first half of 2020, when markets were rattled by the COVID-19 pandemic. The KOSPI's average intraday volatility reached 3.30 percent during the first half, the second-highest level on record after 3.51 percent in the first half of 1998. Critics argue that retail trading has become increasingly speculative and selective since the launch of single-stock leveraged exchange-traded funds linked to Samsung Electronics and SK hynix, with the products' daily rebalancing amplifying market swings. In a written response to Park Sung-hoon of the main opposition People Power Party, the Bank of Korea said additional investment in single-stock leveraged ETFs could deepen market concentration because Samsung Electronics and SK hynix already account for more than half of the KOSPI's market capitalization. The central bank also warned that the daily rebalancing and arbitrage activities required by leveraged ETFs could intensify one-way trading and amplify price swings when investor sentiment shifts. The warning marked a notable shift from the Bank of Korea's June 24 Financial Stability Report, which had concluded that single-stock leveraged ETFs would likely have only a limited impact on overall market stability. Less than two weeks later, however, the central bank warned that the products could deepen market concentration and amplify volatility. Signs of overheating also appeared in regulatory data. The Korea Exchange designated 43 stocks as "investment risk" issues during the first half, compared with just two a year earlier. Investment warning designations rose to 379 from 35, while investment caution notices jumped to 2,944 from 271. The issue has also spilled into politics. Ahn Cheol-soo of the main opposition People Power Party on Sunday criticized single-stock leveraged ETFs linked to Samsung Electronics and SK hynix, saying their daily rebalancing had amplified market volatility and turned the KOSPI into a "casino." He called on regulators to consider delisting the products, noting that all 14 leveraged ETFs tied to the two chipmakers had posted negative returns over the past month, with losses reaching as much as 35.9 percent. He also urged President Lee Jae Myung to dismiss the country's top financial regulators over their approval of the products. For brokerages, however, the leverage boom has proved highly lucrative. Applying an assumed annual interest rate of 9 percent to average margin loans and 8.5 percent to stock-backed loans, securities firms are estimated to have generated about 1.36 trillion won in interest income from stock-related lending during the second quarter alone, up 8.7 percent from an estimated 1.25 trillion won in the first quarter. Nearly 60 percent of that increase came from the expansion of margin lending, underscoring that brokerages benefited primarily from investors taking on new debt. Outstanding margin balances have recently hovered around 38 trillion won as brokerages approach regulatory limits on total lending relative to their equity capital. Several major firms, including NH Investment & Securities and KB Securities, have recently raised capital to expand their lending capacity, suggesting margin financing could continue to grow if retail demand remains resilient. The figures point to a fundamental shift in Korea's bull market. It is no longer being driven solely by optimism over artificial intelligence or booming semiconductor earnings. Increasingly, it is being financed by borrowed money. 2026-07-06 16:52:09
  • Asia markets mostly lower ahead of big news related to Korean chip giants
    Asia markets mostly lower ahead of big news related to Korean chip giants SEOUL, July 06 (AJP) — Asian equities opened the week cautiously Monday, with investors awaiting a string of major developments for South Korea's semiconductor sector, including Samsung Electronics' earnings guidance and SK hynix's landmark U.S. listing. As of 10:50 a.m., the benchmark KOSPI slipped 0.58 percent to 8,033.76, while the tech-heavy KOSDAQ tumbled 3.60 percent to 837.32. Retail investors were the market's only net buyers, purchasing 1 trillion won worth of KOSPI shares. Foreign investors and domestic institutions sold a net 234 billion won and 812.1 billion won, respectively. Samsung Electronics traded little changed at 311,500 won after jumping nearly 5 percent earlier in anticipation of its second-quarter earnings guidance due Tuesday. SK hynix fell 3 percent to 2,355,500 won as investors shifted their focus toward its July 10 American Depositary Receipt (ADR) listing on Nasdaq. Consensus estimates currently place Samsung Electronics' second-quarter operating profit at 85.6 trillion won, while several brokerages expect earnings to exceed 90 trillion won. Meritz Securities on Monday raised its forecast to 90.1 trillion won from 85.2 trillion won and lifted its target price to 500,000 won from 420,000 won, saying the market has yet to fully reflect potential provisioning adjustments that could once again produce a sizable earnings surprise. Daishin Securities also said Samsung's earnings momentum has strengthened in recent months as analysts continued revising forecasts higher, reinforcing the stock's longer-term uptrend. SK hynix is set to list ADRs worth about $29 billion on Nasdaq on Friday, a transaction that could become the largest first-time share sale ever by a foreign company, surpassing both Alibaba's $25 billion U.S. debut in 2014 and Saudi Aramco's $25.6 billion IPO in 2019. A Nasdaq listing would make SK hynix eligible for inclusion in major U.S. equity indexes such as the Nasdaq-100, potentially attracting passive inflows from exchange-traded funds including Invesco QQQ, which manages more than $480 billion in assets. Defense shares also attracted heavy buying. Hanwha Ocean surged 11.97 percent to 119,700 won on expectation ahead of Canada's announcement of the preferred bidder for its submarine program later Monday. Investors are betting the Korean shipbuilder will prevail over Germany's ThyssenKrupp Marine Systems (TKMS) in the project, valued at up to 60 trillion won. Hanwha Ocean also continued to benefit from last week's selection as the preferred bidder for South Korea's next-generation destroyer program. Within the Samsung group, preferred shares of Samsung Electronics climbed 5.29 percent, Samsung C&T gained 5.42 percent and Samsung Life Insurance rose 3.79 percent. Samsung Biologics fell 1.90 percent, Samsung SDI lost 2.14 percent and Samsung Electro-Mechanics declined 2.71 percent. Other large-cap cyclicals also outperformed. Hyundai Motor rose 2.85 percent, Kia advanced 5.46 percent, HD Hyundai Heavy Industries gained 3.64 percent, Hyundai Mobis added 4.86 percent, Hanwha Aerospace climbed 1.19 percent and Doosan Enerbility edged up 1.86 percent. Financial shares extended recent gains, with KB Financial rising 2.88 percent and Shinhan Financial adding 2.14 percent. The KOSDAQ remained largely neglected as investors migrate to the KOSPI. Battery, biotech and semiconductor equipment shares broadly weakened, with Altogen, EcoPro BM, EcoPro, Jusung Engineering, Wonik IPS, Reno Industrial and ABL Bio all posting notable declines. HLB bucked the trend, rising 1.96 percent. The uneven performance underscored investors' continued concentration in large-cap blue chips—particularly semiconductor leaders and defense exporters—while growth-oriented sectors remained under pressure. Elsewhere in Asia, markets remained mostly flat. Japan's Nikkei 225 fell 0.34 percent as a firmer yen weighed on exporters, China's Shanghai Composite gained 0.38 percent and Hong Kong's Hang Seng Index slipped 0.21 percent. 2026-07-06 11:12:31