Journalist

Kim Yeon-jae
  • Asian stocks end 2025 quietly as Korean chipmakers steal the spotlight
    Asian stocks end 2025 quietly as Korean chipmakers steal the spotlight SEOUL, December 30 (AJP) - Asian equities wrapped up the final trading session of 2025 mostly flat on Tuesday, while South Korean semiconductor shares closed the year in celebratory fashion, hitting fresh all-time highs. Korea’s benchmark KOSPI slipped 0.15 percent to finish at 4,214.17. Despite the modest pullback, the index logged a surge of more than 75 percent from the final trading day of last year — the strongest annual performance among major Asian stock markets. Foreign and institutional investors locked in profits ahead of year-end, net selling 472.8 billion won ($327 million) and 368.9 billion won, respectively. Retail investors absorbed the selling pressure, posting net purchases of 818.9 billion won in a final-year buying spree. The won weakened as demand for dollars rose toward year-end settlement, with the currency closing at 1,446.8 per dollar, down 12.3 won as of 4:20 p.m. The softer currency pushed bond yields higher across the curve. The three-year government bond yield rose 1.3 basis points to 2.952 percent, while the 10-year yield climbed 3.1 basis points to 3.385 percent. Semiconductor heavyweights led the market’s standout gains. SK hynix advanced 1.72 percent to 651,000 won, while Samsung Electronics added 0.33 percent to 119,900 won, with both stocks setting new all-time highs. The rally followed an upbeat outlook from Nomura Securities, which set 2026 target prices of 160,000 won for Samsung Electronics and 880,000 won for SK hynix. Shares of Hyundai Motor Group affiliates also moved higher. Hyundai Motor rose 1 percent to 296,500 won, Hyundai Mobis gained 1.77 percent to 373,000 won, and Hyundai AutoEver jumped 6.41 percent to 332,000 won, leading gains within the group. Battery-related stocks, however, underperformed. LG Energy Solution fell 3 percent to 368,500 won, weighed down by a series of contract cancellations, while rival Samsung SDI slid 2.9 percent to 269,500 won. The tech-heavy KOSDAQ underperformed regional peers, dropping 0.76 percent to 925.47, as foreign investors offloaded a net 312.3 billion won to lock in profits. Elsewhere in Asia, Japan’s Nikkei 225 slipped 0.37 percent to 50,339.48. Toyota Motor fell 0.24 percent to 3,356 yen, while Honda Motor declined 0.32 percent to 1,536 yen. Semiconductor-related stocks showed mixed performance, with Ibiden rising 1.58 percent and Disco gaining 0.88 percent, while Advantest fell 0.73 percent to 19,635 yen. Taiwan’s TAIEX also retreated, closing 0.36 percent lower at 28,707.13. Heavyweights dragged on the index, with TSMC slipping 0.65 percent to 1,520 Taiwan dollars ($48.46) and Foxconn falling 1.3 percent to 228 Taiwan dollars. MediaTek ended flat at 1,420 Taiwan dollars. Mainland Chinese markets were little changed. The Shanghai Composite finished nearly flat at 3,965.12, while the Shenzhen Composite rose 0.49 percent to 13,604.07. Hong Kong’s Hang Seng Index ended 0.6 percent higher at 25,828.25. Most regional markets close for the year after Tuesday, though mainland Chinese exchanges will continue trading through Wednesday. 2025-12-30 17:08:23
  • KOSPI posts worlds fastest gains in 2025, but capital outflows cloud celebration
    KOSPI posts world's fastest gains in 2025, but capital outflows cloud celebration SEOUL, December 30 (AJP) - South Korea emerged as the world’s best-performing equity market in 2025, with its benchmark KOSPI surging nearly 76 percent over the year. Yet the historic rally came with a paradox: while stock prices soared to record highs, outbound investment overwhelmed domestic buying, leaving the won among the weakest currencies in the region. The KOSPI closed at 4,214.17 on Dec. 30, the final trading day of the year, nearly doubling from 2,399.49 at the end of 2024. The annual gain of 75.6 percent ranks as the third-largest in the market’s history, behind only the 93 percent rally during the 1987 “three-lows” boom and the 83 percent surge in 1999 at the height of the post-IMF technology bubble. Few could have imagined such a turnaround at the start of the year. Investor confidence had been badly shaken by political turmoil following a brief declaration of martial law and the subsequent impeachment of the president. Uncertainty lingered through the first half until a snap presidential election in June began to stabilize sentiment. Optimism strengthened after President Lee Jae Myung pledged to lift the KOSPI to 5,000, injecting momentum into a market long viewed as structurally undervalued. Earlier in the year, volatility had peaked when renewed “Trump-style” tariff threats pushed the KOSPI down to 2,328.2 and the KOSDAQ to 651.3 on April 7 — their lowest levels of 2025. Foreign investors retreated sharply during that period, unloading 13.6 trillion won ($9.6 billion) worth of Korean equities in April alone. The outflows pushed the monthly average exchange rate to around 1,440 won per dollar, highlighting pressure on the currency. Sentiment began to recover only after the June election, as the new administration rolled out policies aimed at strengthening capital markets and enhancing shareholder returns. Momentum accelerated in the second half of the year. The KOSPI closed above 3,000 on June 20 for the first time in three and a half years and broke the 4,000 mark intraday on Oct. 27. On Nov. 3, it reached an all-time closing high of 4,221.87, entering uncharted territory 45 years after the index was launched. Fastest growth among major global markets With a 75.6 percent annual return, the KOSPI recorded the strongest performance among major global equity benchmarks in 2025. Japan’s Nikkei 225 rose 26.5 percent, China’s Shanghai Composite gained 18.3 percent, and Taiwan’s Taiex advanced about 25 percent over the same period. Analysts attribute Korea’s outsized rally to a combination of policy support, ample liquidity and powerful industrial tailwinds, amplified by the global boom in artificial intelligence after the market began the year deeply undervalued. Chipmakers supplying high-bandwidth memory to Nvidia and other AI leaders emerged as the biggest beneficiaries. Samsung Electronics climbed to 120,000 won for the first time intertrade, while SK Hynix more than tripled in value, hitting a record high. “The global liquidity environment remains supportive, and strong corporate earnings combined with the AI growth cycle should continue to underpin the market,” said Kim Jong-min, head of research at Samsung Securities. The tech-heavy KOSDAQ also ranked among the world’s top performers, rising 37 percent for the year. After lagging earlier in 2025, it attracted renewed foreign inflows from October, exceeding 5 trillion won. On Oct. 27, the index closed at 902.7, and on Dec. 4 — nearly a year after the martial law shock — its total market capitalization surpassed 500 trillion won for the first time. Brokerages reap windfall from rally Domestic securities firms were among the biggest beneficiaries of the bull run. According to the Financial Supervisory Service, the combined net profit of 60 brokerage houses reached 2.5 trillion won in the third quarter alone, up 60 percent from a year earlier. Their total assets stood at 908.1 trillion won as of late September, more than 20 percent higher than at the end of 2024. Korea Investment & Securities became the first domestic brokerage to surpass 2 trillion won in cumulative operating profit by the third quarter, with full-year earnings projected to reach 3 trillion won. That would place it close to Nomura Holdings’ 472 billion yen ($3.1 billion) operating profit for fiscal 2024, potentially ranking it third or fourth among Asia’s largest brokerages by earnings in 2025. A rally at home, but money flows abroad Despite the historic rise in share prices, capital flows tell a more complex story. According to Bank of Korea data, outbound portfolio investment by Korean residents surged $11.2 billion in September alone, exceeding the $9.1 billion in foreign inflows into Korean securities. Between January and October, residents invested a net $117.1 billion overseas — including $89.9 billion in equities and $27.2 billion in bonds. October alone recorded a record $17.3 billion in outflows. The scale of these movements suggests not short-term currency speculation but a structural reallocation of portfolios. In that sense, 2025 may be remembered as the year Korea’s stock market delivered its strongest performance on record — even as Korean capital increasingly chose to look abroad. 2025-12-30 16:45:53
  • Koreas foreign money deposits rise on weak won, BOK revises M2 definition
    Korea's foreign money deposits rise on weak won, BOK revises M2 definition SEOUL, December 30 (AJP) -South Korea’s resident foreign-currency deposits rose in November as companies held on to dollar and euro assets amid expectations that the won’s weakness would persist, highlighting deeper structural pressures in the currency market even as authorities revise how monetary liquidity is measured. According to the Bank of Korea, foreign-currency deposits held at domestic banks totaled $103.55 billion at the end of November, up $1.71 billion from a month earlier. Dollar-denominated deposits rose $1.96 billion, while euro deposits increased $390 million. Yen deposits fell $500 million amid weakness in the Japanese currency. The dollar strengthened to 1,470.8 late November, approaching last year's year-end high of 1,472.5 won last year amid martial-law shock. It hovered around 1,480 won throughout December before retreating to 1,440 won range from last week on dollar-selling hedging accompanied by strong verbal connection to bring down the year's closing exchange rate. The central bank said the rise in dollar holdings reflected corporate trade settlements, inflows from foreign-currency bond issuance, and temporary placements of funds set aside for external debt repayment. Euro deposits also rose on trade-related inflows. Market participants said the buildup of dollar and euro deposits points to expectations of prolonged weakness in the Korean won, rather than short-term hedging behavior. The currency’s trajectory in 2025 underscores a broader structural shift. The won traded near 1,350 per dollar in June, before weakening steadily into the 1,470 range in October and November, touching 1,472 on Dec. 9. Toward year-end, a combination of verbal intervention by authorities and hedging-related flows helped pull the exchange rate back toward the 1,440 level. The dollar closed the year at 1,445.75 won, but on an annual basis, it is projected to have averaged around 1,420 won for 2025. The previous average high of the pair was 1,394.9 won in 1998, during the Asian financial crisis and the IMF bailout period. The renewed focus on foreign-currency holdings comes as debate intensifies over whether Korea’s liquidity conditions have contributed to the won’s structural weakness. The Bank of Korea separately on Tuesday unveiled a comprehensive revision of its monetary and liquidity statistics, aimed at better reflecting financial-market realities and aligning with international standards. Under the revised framework, the central bank narrowed the definition of broad money (M2) by excluding investment fund units with high price volatility, while newly including certain short-term instruments such as issuance notes and CMA products issued by large investment banks. The revision also reorganizes institutional classifications and improves data coverage to better capture actual liquidity conditions. As a result of the methodological change, October 2025 M2 under the new standard stood at 4,056.8 trillion won, down 409.5 trillion won, or 9.2 percent, from the previous definition. The BOK said the decline reflects classification changes rather than an abrupt contraction in liquidity. Under the revised methodology, M2 growth in October stood at 5.2 percent year on year, below its long-term average, suggesting that headline money growth in recent years may have overstated underlying monetary expansion. The central bank said the new framework better distinguishes between transactional money and investment-type assets, improving the analytical usefulness of monetary indicators. Amid growing debate over whether rapid M2 growth is fueling asset inflation and foreign-exchange volatility, the central bank last month said it would revise its monetary statistics. 2025-12-30 14:30:07
  • UPDATE: Koreas factory output rebounds on chips, domestic front remains slack
    UPDATE: Korea's factory output rebounds on chips, domestic front remains slack *Updated with additional information and market response SEOUL, December 30 (AJP) - South Korea’s factory output rebounded in November after two consecutive monthly contractions, supported by a sharp pickup in semiconductor production and increased facility investment linked to AI-driven chip demand, government data showed Tuesday. Mining and manufacturing output rose 0.6 percent from the previous month, reversing declines of 4.2 percent in October and 1.0 percent in September, according to the Ministry of Data and Statistics. Factory activity heavily reliant on semiconductors The rebound largely owed to a 7.5 percent jump in semiconductor output and external demand. Output for export shipments climbed 4.6 percent, while production for domestic sales fell 4.5 percent. The report went largely unnoticed by the Korean markets on their last trading day for 2025. KOSPI was 0.2 percent lower at 4,212.61 as of 11:25 a.m. and the U.S. dollar at 1,434.40 won. By sector, pharmaceutical exports surged 23.7 percent from the previous month, while semiconductor exports rose 11.7 percent. In contrast, refined petroleum exports declined 4.1 percent as the petrochemical industry remained mired in a prolonged downturn. Overall industrial production increased 0.9 percent from October, compared with a 2.7 percent drop a month earlier. Service-sector output edged up 0.7 percent, but retail sales slid 3.3 percent, reflecting persistent weakness in private consumption. Facility investment rose 1.5 percent on month, led by machinery investment. The increase was driven by higher spending on precision equipment, including semiconductor inspection tools, as chipmakers expanded capacity to meet AI-driven demand. Manufacturing shipments climbed 1.6 percent from the previous month. Semiconductor shipments surged 12.1 percent on month and 9.1 percent on year, while machinery equipment shipments rose 3.5 percent and 2.3 percent, respectively. Output of “other transport equipment,” dominated by shipbuilding, fell 12.4 percent on month but remained on an upward trajectory year on year, rising 17.3 percent, reflecting the start of full-scale deliveries of LNG carriers ordered under Qatar-related projects. Manufacturing inventories increased 0.6 percent from the previous month. Semiconductor inventories, however, plunged 42.6 percent from a year earlier, reflecting aggressive stockpiling amid fears of supply shortages driven by AI demand. By contrast, inventories of electrical equipment such as batteries rose 12.6 percent on month, while output in the sector fell 8 percent on year, signaling accumulation amid the prolonged electric-vehicle slowdown and repeated overseas order cancellations faced by LG Energy Solution. Refined petroleum inventories also climbed 9.9 percent, pointing to continued weakness in the petrochemical industry. Construction rebound masks deep structural slump Construction output rose 6.6 percent from the previous month, largely due to a higher number of working days compared with October, which included the Chuseok holiday, as well as year-end project completions. Building construction increased 9.6 percent on month, while civil engineering output fell 1.1 percent. On a yearly basis, however, the sector remained deeply depressed. Building construction dropped 16.1 percent from a year earlier, while civil engineering fell 19.7 percent, effectively wiping out nearly one-fifth of last year’s activity. The downturn reflects weak orders throughout 2024, driven by high interest rates and elevated construction costs. Construction orders continued to shrink, falling 9.2 percent on year. Civil engineering orders, including power plants and communication facilities, plunged 17.3 percent, while building orders declined 7.3 percent, pointing to ongoing disruptions in housing supply. The weakness also spilled into services. Real estate-related services, centered on brokerage activity, fell 2.4 percent as tighter debt service ratio (DSR) regulations and supply constraints weighed on transactions. This made real estate the only major service category to contract, even as overall service output rose 3 percent on year. Consumers pull back as financial activity surges Retail sales reversed course, falling 3.3 percent on month after a temporary October rebound fueled by holiday demand. Sales of non-durable goods such as food declined 4.3 percent amid rising prices, while semi-durable goods like clothing dropped 3.6 percent. Durable goods sales, including communication devices and computers, also fell 0.6 percent, following a spike in general-purpose semiconductor prices in November. By retail channel, sales at supermarkets and department stores dropped 4.8 percent and 8.3 percent on year, respectively, underscoring continued pressure on household spending. In contrast, the financial sector continued to expand on buoyant equity trading. Output in finance and insurance rose 2.2 percent from the previous month and 4.2 percent from a year earlier. The combined daily average trading value of the KOSPI and KOSDAQ reached 38 trillion won ($26.2 billion) in November, more than double the level a year earlier. Margin trading also exceeded 26 trillion won as of Nov. 28, highlighting a growing polarization in the economy — with capital increasingly concentrated in financial markets while consumption, construction and real estate remain subdued. 2025-12-30 09:30:29
  • Korean banks fight for deposits deepens as rate inversion signals liquidity strain
    Korean banks' fight for deposits deepens as rate inversion signals liquidity strain SEOUL, December 29 (AJP) - South Korean banks are raising deposit rates aggressively to stem an outflow of funds into buoyant stock markets at home and abroad, triggering an unusual inversion in short-term deposit yields and adding pressure to already strained borrowers. The competition for liquidity has pushed both lending and deposit rates higher, even as the Bank of Korea keeps its policy rate on hold. According to data released Monday by the central bank, the average interest rate on new bank loans rose 0.13 percentage point in November to 4.15 percent, reversing a three-month decline. Household loan rates climbed 0.08 percentage point to 4.32 percent, while corporate loan rates rose 0.14 percentage point to 4.10 percent. Household rates reached a seven-month high, and corporate rates turned upward for the first time in six months. Jeonse (long-term rental deposit) loan rates — closely tied to household living costs — also increased for a second straight month, rising 0.12 percentage point to 3.90 percent. Short-term rates jump as banks scramble for liquidity The upward pressure is most visible in short-term lending and deposit products, reflecting banks’ urgent need to secure liquidity. General credit loan rates jumped 0.27 percentage point to 5.46 percent, while mortgage rates rose 0.19 percentage point to 4.17 percent, their biggest November increase in four years and the first return to the 4 percent range in eight months. Banks have been raising add-on rates preemptively following the government’s Oct. 15 real estate measures, which tightened “stressed debt service ratio (DSR)” rules. At the same time, short-term market yields have climbed after the Bank of Korea maintained a hawkish tone while keeping its benchmark rate unchanged. The one-year bank bond yield rose 0.27 percentage point in November, outpacing the 0.18 percentage point increase in five-year yields. As a result, loans tied to short-term rates — especially general credit loans — saw the steepest increases. Despite rising borrowing costs, the share of fixed-rate household loans continued to fall. Fixed-rate loans accounted for 54.6 percent of household lending in November, down 1.6 percentage points from the previous month and marking a fourth consecutive decline. Within mortgage loans, the fixed-rate share dropped 3.8 percentage points to 90.2 percent, suggesting borrowers are increasingly betting on future rate cuts after perceiving that interest rates have peaked. SMEs face heavier burden as risk premiums widen Small and medium-sized enterprises are bearing a disproportionate share of the tightening. SME lending rates rose 0.18 percentage point to 4.14 percent, compared with a 0.11 percentage point rise for large corporations, whose average rate stood at 4.06 percent. The wider gap reflects rising risk premiums tied to concerns over SME creditworthiness. Bank of Korea data show that so-called “marginal firms” — companies unable to cover interest payments with operating profits — accounted for 18.0 percent of SMEs in 2024, well above the 13.7 percent recorded among large corporations. Deposit rates overtake savings banks for first time since 1998 On the funding side, deposit rates rose 0.24 percentage point to an average of 2.81 percent in November, outpacing the increase in lending rates and narrowing banks’ net interest margin on new transactions by 0.11 percentage point to 1.34 percent. A notable development is that commercial bank deposit rates have surpassed those offered by savings banks for the first time in roughly 27 years, since the 1998 Asian financial crisis. The reversal reflects sharply diverging strategies: savings banks, constrained by exposure to troubled real estate project financing and weak loan demand, have frozen or lowered rates, while major banks have raised them aggressively to prevent capital outflows. An inversion has also emerged within deposit maturities themselves. According to the Korean Statistical Information Service, the average rate on deposits with maturities under six months stood at 2.58 percent, higher than the 2.43 percent offered on deposits with maturities of two to three years — a clear signal of banks’ urgency to secure short-term funds. Funds flow accelerates from deposits to markets The liquidity squeeze is being amplified by a massive shift of household money into financial markets. Data from the Korea Financial Investment Association show inflows into public offering funds reached about 66.8 trillion won ($46.6 billion) as of Sunday, more than triple last year’s 22 trillion won. The surge underscores how capital is rapidly migrating from bank deposits into equities and investment products, intensifying competition among banks for funding and helping explain the sharp rise in short-term deposit rates. 2025-12-29 17:43:02
  • Asian markets diverge as investors navigate ex-dividend effects
    Asian markets diverge as investors navigate ex-dividend effects SEOUL, December 29 (AJP) - Major Asian equity markets moved in different directions in the final week of December, as investors digested ex-dividend adjustments alongside shifting policy and sector-specific signals. South Korea’s stock market extended its rally despite the ex-dividend cutoff, while Japan slipped under selling pressure tied to dividend adjustments and inflation concerns. The benchmark KOSPI rose 1.45 percent to 4,190 as of 10 a.m. Monday, posting a second straight gain and marking the strongest performance among major Asian markets. The index continued its late “Santa rally” even after dividend eligibility ended last week. Retail investors led the advance, net buying 378.1 billion won ($263.4 million), while institutions and foreign investors turned net sellers, offloading 344.0 billion won and 20.0 billion won, respectively, following the ex-dividend date. The won strengthened to 1,435.3 per dollar, up 9.7 won from the previous session, a move widely attributed to tangible measures such as forward exchange selling and currency hedging after recent verbal intervention by authorities. Blue-chip stocks advanced on multiple positive catalysts. Samsung Electronics climbed 2.1 percent to 119,500 won, supported by reports that it passed performance tests for its next-generation HBM4 chips and equipped its latest application processor with an in-house GPU. Investor sentiment was also lifted by the company’s expansion into automotive electronics through its Harman unit’s €1.5 billion ($1.76 billion) acquisition of German auto supplier ZF’s advanced driver-assistance systems business. SK hynix surged 6 percent to 635,000 won after being lifted from “investment warning” status. The rally was fueled by heavy buying and reports that HBM3E prices have risen more than 20 percent, alongside bullish forecasts such as Nomura Securities’ projection that the chipmaker’s operating profit could reach 100 trillion won in 2026. The Korean chipmakers are also set to gain if the mass-scale earthquake in Taiwan causes disruption in chipmaking activities in the country, home to around 70 percent of global chip supplies. Other stocks recently freed from investment warnings also jumped, with Hanwha Aerospace gaining 8 percent to 70,000 won and SK Square rising 3.5 percent to 346,500 won. Naver advanced 3.6 percent to 240,000 won, benefiting from user inflows into its Naver Plus Store following a massive data breach at Coupang that affected about 33.7 million accounts and reportedly led to a decline in the e-commerce giant’s daily active users. Shares linked to autonomous driving also moved higher. Hyundai AutoEver climbed 5.3 percent to 305,500 won, while Hyundai Mobis rose 2.9 percent to 368,500 won. By contrast, LG Energy Solution slipped 2 percent to 375,500 won upon back-to-back EV fallout. After it lost contract with Ford earlier in the month, the company also reported the cancellation of another deal with U.S. battery pack maker Freudenberg Battery Power Systems. The tech-heavy KOSDAQ gained 0.6 percent to 925, supported by retail net buying of 200.0 billion won. Japan’s Nikkei 225 fell 0.32 percent to 50,587, weighed down by ex-dividend selling and stronger-than-expected inflation data that reinforced expectations the Bank of Japan could pursue additional rate hikes. Major stocks were mostly weaker, with Toyota Motor down 0.2 percent to 3,373 yen ($21.6). Semiconductor-related shares also declined, as Advantest slipped 1.4 percent and Disco fell 1.9 percent, though Ibiden bucked the trend, rising 1.1 percent to 6,690 yen following its stock split. Taiwan’s TAIEX opened 0.35 percent higher at 28,654. MediaTek gained 1 percent to 1,400 Taiwan dollars ($44.6) after announcing a joint development with Japan’s Denso on an automotive system-on-chip for advanced driver assistance. Foxconn rose 1.8 percent to 230 Taiwan dollars on growing optimism over AI server shipments. In mainland China, Hong Kong stocks outperformed regional peers. The Hang Seng Index rose 0.8 percent to 26,038 after the United States extended tariff exemptions on Chinese-made semiconductors for another 18 months, lifting Semiconductor Manufacturing International Corp. 3 percent to 73 Hong Kong dollars ($9.4). Meanwhile, China’s mainland benchmarks were little changed, with the Shanghai Composite at 3,964 and the Shenzhen Component at 13,580. 2025-12-29 11:14:03
  • Korean won revisits 1,430 versus dollar for the first time since Nov
    Korean won revisits 1,430 versus dollar for the first time since Nov SEOUL, December 26 (AJP) -The Korean won strengthened more than 1 percent on Friday, extending its 1.3 percent jump in the previous session on Wednesday, as the U.S. dollar broadly weakened against major East Asian currencies, including the Japanese yen and the Chinese yuan. The dollar opened at 1,449.9 won after the Christmas break and slid as low as 1,429.5, marking its first dip below the 1,430 level since Nov. 4 — a move that signaled a possible shift in market positioning toward the won. Dollar-selling gathered pace on expectations that the greenback could face further downside pressure amid renewed strength in regional currencies, a trader said, cautioning that it remains unclear whether the past two sessions mark a structural turning point. The Chinese yuan has strengthened past 7 per dollar, supported by easing geopolitical tensions and a rebound in local equity markets, while the yen has remained firm since the Bank of Japan’s rate hike last week. 2025-12-26 14:45:52
  • Santa largely skips Asian markets as gains stay modest
    Santa largely skips Asian markets as gains stay modest SEOUL, December 24 (AJP) - Santa Claus largely skipped Asian markets this season, with gains modest across the region and year-end positioning overshadowing any holiday cheer. South Korea’s benchmark KOSPI finished 0.21 percent lower at 4,108.62 on Tuesday, pressured by retail investors liquidating holdings ahead of a tax deadline, even as foreign and institutional investors maintained a more constructive stance. Retail investors net sold 717.5 billion won ($490.7 million), a move widely attributed to tax-avoidance strategies ahead of Friday’s cutoff for capital gains tax exemptions applied to major shareholders. In contrast, foreign investors bought a net 520.1 billion won, while institutions added 200.4 billion won, reflecting selective accumulation rather than broad risk-taking. The Korean won strengthened sharply, closing at 1,456.6 per dollar as of 4:30 p.m., gaining 25.4 won on the day. The surge followed aggressive verbal intervention by foreign-exchange authorities. Market participants cited a mix of currency hedging and forward exchange selling, likely triggered by coordination involving the National Pension Service and major exporting firms. Bond markets responded to the stabilizing currency, with yields edging lower. The 10-year government bond yield fell 3.4 basis points to 3.345 percent, reversing the upward pressure seen over the previous two sessions. Performance among market leaders was mixed. Samsung Electronics slipped 0.36 percent to 111,100 won, taking a breather after recent record highs. SK hynix rose 0.68 percent to 588,000 won. Traders noted that Samsung faced heavier selling pressure due to its higher concentration of retail ownership. Shipbuilding and defense stocks retreated as investors locked in profits following Monday’s rally linked to U.S. Navy collaboration news. Hanwha Ocean fell 3.57 percent to 119,000 won, while Hanwha Systems dropped 4.25 percent. In the automotive sector, Hyundai Motor gained 0.7 percent to 289,000 won, supported by its renewed push into software-defined vehicles (SDVs) and the appointment of a new software lead. Hyundai AutoEver, however, slipped 2.38 percent to 287,500 won as investors opted to lock in gains after a sharp ascent. The tech-heavy KOSDAQ closed 0.47 percent lower at 915.2, weighed down by the same cash-out trend. Alteogen fell 2.16 percent, while Rainbow Robotics dropped 3.88 percent. Hyundai Movex surged 9.94 percent to a one-year high of 18,580 won on expectations tied to contract wins and its potential role in automating production for Hyundai Motor Group, despite having no direct corporate affiliation. Elsewhere in Asia, movements were restrained. Japan’s Nikkei 225 edged down 0.14 percent to 50,344.1 amid thinning holiday volumes. Automakers underperformed, with Toyota falling 1.82 percent, Nissan dropping 1.01 percent and Honda shedding 0.67 percent. Semiconductor shares bucked the trend, led by Ibiden’s 5.53 percent jump, Advantest’s 2.47 percent rise and Tokyo Electron’s 0.67 percent gain. Taiwan’s TAIEX rose a modest 0.22 percent to 28,371.98, outperforming Seoul and Tokyo. Analysts attributed the advance largely to year-end “window dressing” as local institutions sought to bolster valuations. TSMC gained 0.34 percent, while MediaTek fell 0.72 percent. Mainland Chinese markets posted moderate gains on renewed stimulus hopes. The Shanghai Composite rose 0.53 percent, while the Shenzhen Component gained 0.88 percent. Hong Kong’s Hang Seng Index ended its shortened Christmas Eve session with a modest 0.17 percent gain at 25,818.93. The KOSPI and Hang Seng will be closed Wednesday for Christmas. Markets in Japan, mainland China and Taiwan will remain open for regular trading — but with volumes thin and gains modest, Santa’s presence across Asian markets this year appears fleeting at best. 2025-12-24 17:21:17
  • Koreas Hyundai Motor elevates engineers to C-suite
    Korea's Hyundai Motor elevates engineers to C-suite SEOUL, December 24 (AJP) - South Korea's Hyundai Motor Group on Wednesday carried out a reshuffle underlying its renewed focus and command over software-defined mobility capabilities. Jin Eun-sook, Vice President of the ICT Division, was promoted to President to become the first female president in the history of Hyundai Motor Company and the third female leader within the broader group, joining the ranks of top executives at Hyundai Commercial and Innocean. Jin, having previously served as CTO of NHN, is recognized for her deep expertise in cloud computing, data, and platforms, as well as her global strategic vision. Since joining the group as Head of the ICT Division in 2022, she has spearheaded key digital transformation initiatives, including the integration of the group’s "Global One App" and the establishment of a next-generation Enterprise Resource Planning (ERP) system. In her new role, Jin is expected to accelerate the group’s digital shift by fostering a developer-centric corporate culture and enhancing the development and operational capabilities of the group’s overall IT systems and infrastructure, the company said. Hyundai AutoEver, the group’s dedicated software arm, separately named Ryoo Seok-moon as its new CEO-designate. Ryoo, a seasoned software engineer, joined the company in 2024 to lead its Software Platform Business Division, where he oversaw critical projects in IT system architecture and vehicle software development. Ryoo brings a wealth of experience from the broader tech and mobility sectors, having served as CTO of the car-sharing platform Socar and Technical Director at Riot Games. His appointment is seen as a strategic move to internalize high-level technical leadership and cultivate top-tier development talent within the organization. "This reshuffle is characterized by placing leaders with proven technical and development expertise at the forefront of our software and IT divisions," a Hyundai Motor Group official said. "We will continue to strengthen our technology-driven management and sustain group-wide investments to complete our transition into a software-defined mobility company." On December 3, Song Chang-hyun, founder and CEO of 42dot - Hyundai’s autonomous-driving subsidiary - and head of Hyundai’s Advanced Vehicle Platform division, resigned - shortly after Tesla showcased its Full Self-Driving in Seoul from late November. 42dot has been testing self-driving buses in downtown Seoul, but the technology embedded in Hyundai and Kia production vehicles has yet to reach the midpoint of the autonomy race by global benchmarks. Hyundai Motor's latest appointments, therefore, are seen as a process of centralizing software expertise at the parent company, moving away from a fragmented structure across the group’s subsidiaries. “The core reason Hyundai trades at a chronic discount is the fragmentation of its software capabilities across affiliates such as 42dot, Hyundai Mobis, Hyundai AutoEver and Boston Dynamics,” said Choi Tae-young, an analyst at DS Investment & Securities. “The real challenge is empowering one lead entity to standardize data and fundamentally change how the organization works,” added Lee Hyun-wook, a researcher at IBK Securities. 2025-12-24 14:26:07
  • Koreas consumer confidence dips as weak won fuels inflation fears
    Korea's consumer confidence dips as weak won fuels inflation fears SEOUL, December 24 (AJP) - South Korea’s consumer confidence fell in December as inflationary expectations rose amid persistent weakness in the won, survey data showed Wednesday. The composite consumer sentiment index (CCSI) for December dropped 2.5 points from November to 109.9, according to the Bank of Korea. While a reading above 100 indicates that optimism outweighs pessimism, several subindices pointed to growing household anxiety over economic conditions. The index measuring perceptions of current domestic economic conditions fell 7 points to 89, while the outlook for the next six months dropped 6 points to 96. The declines suggest a rising share of consumers believe conditions have deteriorated compared with six months earlier and remain uncertain about the near-term outlook. Employment sentiment also weakened. The employment opportunity index slid 3 points to 92, reflecting a cooling labor market as the number of “idled” young people surpassed 700,000 for the first time, according to data from Statistics Korea. Expectations for higher borrowing costs strengthened. The prospective interest rates index rose 4 points to 102, signaling broad expectations that the central bank could raise rates within the next six months. Analysts pointed to persistent hawkish signals from U.S. Federal Reserve Chair Jerome Powell and the tightening cycle in Japan as key drivers. Inflation concerns remained dominant. The prospective prices index rose 2 points to 148, reflecting widespread expectations that prices will continue to climb over the next year. The sentiment aligns with November consumer price data, which showed inflation rising 2.4 percent — the third straight month above the 2 percent level. Households cited fuel prices (45.8 percent), fresh food prices (45.0 percent), and utility costs (36.7 percent) as the main sources of inflation pressure, exacerbated by higher import prices as the won hovers near one of its weakest annual averages on record. Housing price expectations also firmed. The prospective housing prices index edged up 2 points to 121, underscoring the limited effectiveness of government measures to cool the Seoul property market. According to the Korea Real Estate Board, Seoul apartment prices had risen 8.25 percent as of Dec. 15, the fastest pace since the agency began compiling the data. By contrast, wage expectations softened. The prospective wages index slipped 1 point to 122, limiting households’ ability to offset rising living and housing costs. Perceptions of living standards also deteriorated. The current living standards index stood at 95 and the outlook index at 100, both down 1 point from the previous month. While the prospective household income index fell 1 point to 103, the expected household spending index remained unchanged at 110, suggesting many consumers see little room to cut spending despite stagnant income growth. 2025-12-24 11:47:02