HOT STOCK: Korean refiners rally on Russia sanctions, petrochemicals join ride SEOUL, October 24 (AJP) - South Korean refinery shares surged Friday as oil prices spiked following U.S. sanctions on Russia’s top refiners, Rosneft and Lukoil, elevating petrochemical sector long weighed down by overcapacity and an industrial slowdown. SK innovation, the market leader, jumped 7.6 percent to 133,900 won ($93.2), while S-Oil gained 2.5 percent to about 74,900 won. The rally followed a sharp climb in West Texas Intermediate (WTI) and Brent crude prices after Washington’s move against Moscow’s oil giants. With Russia ranking as the world’s No. 3 producer after the U.S. and Saudi Arabia, any restriction on its exports threatens to tighten global supply and push prices higher. Rising crude prices typically widen refining margins, improving profitability for refiners. This time, momentum also extended to petrochemical stocks, as higher feedstock costs tend to raise product prices. LG Chem hit a fresh high of 401,000 won after climbing 3 percent intraday, while smaller ISU Chemical soared by the daily limit for three straight sessions — leaping to 12,400 won from 5,850 won a week earlier. Refiners are broadly expected to report stronger third-quarter earnings. According to Yuanta Securities Korea analyst Hwang Kyu-won, SK innovation is likely to swing back to profit in the third quarter. “Dubai crude prices rose by more than $3 a barrel, which appears to have boosted refinery margins,” Hwang said. Consensus data from FnGuide projects SK innovation’s Q3 operating profit at about 201.8 billion won, driven mainly by its refining business. S-Oil is also expected to return to profit this quarter. Hanwha Investment & Securities analyst Lee Yong-wook forecast operating profit of 274.3 billion won, noting that “refining-segment profit is projected to reach 144 billion won, marking a sharp rebound from a 440 billion won loss in the previous quarter.” Despite rising competition from Chinese refiners, Korea’s oil refining industry remains among the world’s most competitive. In jet fuel alone, the country’s “Big Four” — SK innovation, S-Oil, HD Hyundai Oilbank, and GS Caltex — command roughly 30 percent of global market share, a position they have held for several years. Most analysts agree that Korean refiners tend to benefit whenever concerns mount over tighter oil supply — and Friday’s rally offered a timely reminder. 2025-10-24 16:53:30

Asian shares rebound, lifted by optimism over Trump's APEC tour SEOUL, October 24 (AJP) - Asian stocks rebounded Friday, buoyed by news that U.S. President Donald Trump will embark on his first Asia tour of his second term next week — a trip that includes back-to-back summit meetings with leaders of South Korea, Japan, and China during APEC week. Markets welcomed expectations that the visit could bring progress on pending trade and investment issues across the region. The benchmark KOSPI rose about 1.5 percent, reclaiming the 3,900-point threshold, as institutional investors bought a net 130 billion won ($90 million) worth of shares, joined by foreign investors with about 50 billion won in net purchases. Retail investors sold around 180 billion won to take profits. SK hynix jumped as much as 4.5 percent to 499,500 won, touching an intraday high of 504,000 won, while Samsung Electronics added 1.4 percent to 97,800 won on reports that it secured orders to produce Tesla’s next-generation AI5 chipsets. Battery-related shares rallied alongside Tesla’s overnight gains. LG Energy Solution advanced 3.7 percent to 465,000 won, while materials makers outperformed. ISU Chemical surged more than 25 percent past 12,000 won amid strong interest in its battery-material unit ISU Specialty Chemical, and POSCO Future M climbed 9.5 percent to about 223,000 won. Refinery shares were also among the session’s best performers on expectations of improved margins. SK Innovation soared nearly 8 percent to 134,500 won, and S-Oil rose 4 percent to 76,000 won, tracking a more than 5 percent overnight jump in global oil prices. The rally came after Washington imposed fresh sanctions on Russia’s top refiners, Rosneft and Lukoil, sending both WTI and Brent crude sharply higher. Japan’s Nikkei 225 climbed 1.3 percent to 49,260, following regional strength and gains in U.S. tech and energy shares. Daikin Industries, a leading chemical and air-conditioning manufacturer, rose 2.5 percent to 18,480 yen ($121.1), one of the day’s top advancers. Taiwan’s TAIEX market was closed for a substitute public holiday marking the nation’s National Day. 2025-10-24 10:47:41

HOT STOCK: British fund bullish on LG Chem, local banks wary how far the stock can go SEOUL, October 23 (AJP) - Shares of LG Chem set a new ceiling this week as the Korean chemical giant defied industrial headwinds after being spotlighted by a major foreign shareholder for excessive undervaluation. LG Chem closed Thursday at 389,500 won ($271), down after a 13 percent surge in the previous session. The rally followed a public statement by British activist fund Palliser Capital, which argued that “LG Chem’s stock is significantly undervalued, currently trading at just 74 percent of its intrinsic value.” Palliser urged the company to sell part of its stake in battery affiliate LG Energy Solution and use the proceeds for share buybacks to boost shareholder value. Founded in 2021 by James Smith, former chief investment officer of Elliott Management’s Hong Kong office, Palliser holds about 1 percent of LG Chem and ranks among its top ten shareholders. Smith is already well-known to Korea’s corporate scene for his past challenges to succession and governance structures at Samsung Electronics and Hyundai Motor during his Elliott tenure. Palliser has since pushed for shareholder-friendly actions at Samsung C&T in 2023 and SK Square in 2024. However, local analysts remain unconvinced that LG Chem’s rally can be sustained. “LG Chem remains overly reliant on internal business from its affiliate LG Energy Solution,” said Roh Woo-ho, analyst at Meritz Securities, in a report on October 16. He estimated that only 8.6 percent — or 56.3 billion won — of the company’s estimated 657.6 billion won third-quarter operating profit will come from non-LGES operations. “The lack of meaningful external revenue raises questions about business sustainability,” Roh noted. Petrochemicals, once the company’s core business, continue to weigh on earnings. According to second-quarter results released in August, the petrochemical division generated 4.696 trillion won in revenue — about 41.1 percent of the company’s total 11.47 trillion won — but posted losses of 56.5 billion won in Q1 and 90.4 billion won in Q2. The downturn reflects mounting competition from Chinese producers flooding the global market with cheaper, higher-quality output. Even the country’s third-largest player, Yeochun NCC, has faced liquidity strains and the threat of insolvency. LG Chem is seeking to offset the weakness by expanding into advanced materials and life sciences. The company supplies cathode materials for LG Energy Solution’s EV batteries, develops photo imageable dielectric (PID) materials for semiconductor packaging, and is broadening its pharmaceutical R&D pipeline. Still, much of its near-term sentiment hinges on LG Energy Solution’s performance, whose third-quarter operating profit jumped 34.1 percent year-on-year — offering a temporary boost to LG Chem’s outlook, if not yet a structural turnaround. 2025-10-23 17:33:24

Asian shares lower early Thursday, Korea flat on rate freeze SEOUL, October 23 (AJP) - Asian markets opened lower Thursday as investors locked in profits following Wall Street’s overnight decline, though a few selective gainers held their ground. In Seoul, the main indices hovered near flat after the Bank of Korea kept its policy rate unchanged for a sixth consecutive month, underscoring the complex uncertainties weighing on the economy. The KOSPI inched up 0.1 percent to 3,888.2, while the KOSDAQ was little changed at 879.24. SK hynix returned to positive territory, retrying record levels, while Samsung Electronics slipped 1.8 percent to 96,900 won despite overnight confirmation by Elon Musk about Samsung Electronics joining TSMC in the production of its AI5 chips powering its next-generation Tesla fleet. Hanmi Semiconductor, a key high-bandwidth-memory (HBM) equipment maker, eased 0.7 percent to 150,700 won as analysts cited profit-taking after the U.S. market slump. Battery makers also weakened. LG Energy Solution dipped 0.4 percent to 450,200 won after Tesla’s weaker-than-expected results, and EcoPro Materials lost 3 percent to 67,000 won. Parent EcoPro, which had surged more than 15 percent Wednesday, gave back 2.5 percent to 85,200 won on the KOSDAQ. By contrast, LG Chem extended its momentum, adding 0.7 percent to 394,000 won after Wednesday’s 13-percent jump triggered by Palliser Capital’s activist campaign urging value-enhancing reforms. ISU Chemical soared over 20 percent to 9,200 won, following a limit-up rally the previous session. Company officials said they could not identify any specific catalyst for the move. In Tokyo, the Nikkei 225 dropped 1.5 percent to around 48,560, dragged by SoftBank Group, down another 3 percent to 22,900 yen ($150.5). Defense contractors outperformed, with Sumitomo Heavy Industries up 7 percent to 3,930 yen and Kawasaki Heavy Industries gaining 2.7 percent to 10,800 yen on optimism over Prime Minister Sanae Takaichi’s pledge for stronger defense spending. The Shanghai Composite Index opened around the 3,880, down roughly 0.7 percent. Shares related to natural resources and trade advanced across the board, while property and technology stocks declined broadly. Taiwan’s TAIEX fell 0.8 percent to 27,410, erasing the prior day’s mild gains. 2025-10-23 11:31:18

South Korean stocks soar while other Asian markets mostly flat SEOUL, October 22 (AJP) - South Korean shares extended gains Wednesday, outperforming most Asian markets that moved flat to lower amid profit-taking. The benchmark KOSPI rose 1.56 percent to close at 3,883.68, while the KOSDAQ gained 0.76 percent to 879.15. Battery-related shares led the rally after a JP Morgan report showed global energy storage system (ESS) shipments in September jumped 105 percent year-on-year. LG Energy Solution climbed 3.09 percent to 450,500 won ($315.05), and Samsung SDI advanced 1.16 percent to 262,000 won. LG Chem surged 13.01 percent to 391,000 won after British activist fund Palliser Capital said the stock was trading at a 74 percent discount to its net asset value (NAV) — one of the steepest among major South Korean conglomerates. Hanwha Ocean jumped 9.69 percent to 132,400 won, boosted by expectations that its third-quarter operating profit will soar more than 1,000 percent from a year earlier on strong orders for high-value-added vessels. Semiconductor bellwethers Samsung Electronics and SK hynix, which have powered recent market rallies, extended modest gains. Samsung Electronics rose 0.82 percent to 98,300 won, and SK hynix added 0.52 percent to 481,500 won. On the KOSDAQ, EcoPro stood out, soaring 15.15 percent to 87,400 won. The supplier of cathode materials and precursors for secondary batteries has benefited from renewed optimism in the global EV and ESS markets. Elsewhere in Asia, Japan’s Nikkei 225 ended nearly flat, shedding 0.02 percent to close at 49,307.79 after recovering from earlier losses of 0.7 percent triggered by tech sell-offs. SoftBank Group dropped 4.9 percent to 23,700 yen ($156.15), weighed down by concerns over large-scale tech investments including its Stargate initiative. China’s Shanghai Composite Index slipped 0.07 percent to 3,913.76 as investors remained cautious amid lingering U.S.–China trade tensions. Taiwan’s TAIEX fell 0.37 percent to 27,648.91. 2025-10-22 17:15:29

HOT STOCK: Undervalued Hyundai Motor plays catch-up amid tariff hopes SEOUL, October 22 (AJP) - South Korean automaker Hyundai Motor is emerging as a comeback play in Asian markets, as optimism grows over a possible U.S. tariff relief deal that could level the playing field long tilted in favor of Japanese rivals. Currently, South Korean car exports to the U.S. face a 25 percent import tariff—10 percentage points higher than the 15 percent levied on Japanese and European brands. Despite the disparity, Hyundai Motor’s shares have surged nearly 20 percent so far this month, closing Wednesday at 261,000 won ($182.56). The stock’s rally outpaced gains of 6 percent in Toyota and 1.8 percent loss in Volkswagen, even as those competitors benefit from lower U.S. duties. Hyundai Motor Group, which also owns the premium Genesis and Kia marques, ranked 33rd in Time magazine’s 2025 “World’s Best Companies” list—up 159 notches from last year—beating out Toyota at 48th. The ranking cited improvements in employee satisfaction, revenue growth, and ESG performance. Last year, Hyundai’s revenue jumped 23 percent to 175 trillion won ($127 billion), with operating profit up 45 percent to 14.2 trillion won. This year, however, profits took a hit from the tariff spike. “Among the top ten KOSPI companies by market capitalization, Hyundai and Kia are the only ones expected to post year-on-year profit declines,” said Kiwoon Securities analyst Shin Yoon-chul. Hyundai’s third-quarter operating profit is estimated to have fallen around 30 percent to 2 trillion won, reflecting the U.S. tariff burden. If the rate drops to 15 percent after an intergovernmental deal, quarterly operating profit could rebound to 2.4 trillion won, according to Daishin Securities analyst Kim Gwi-yeon. Another potential headwind emerged after China restricted exports of automotive semiconductors by Nexperia—one of Hyundai’s key suppliers and a global leader in power semiconductor production. Even so, local brokerages remain optimistic, pointing to Hyundai’s steady shipment performance. The automaker’s global sales rose 3.2 percent year-on-year in the third quarter to 1.04 million units. U.S. sales alone climbed 2.3 percent to a record 257,000 units. Electric vehicle sales, though modest at about 10,000 units, grew 35.2 percent from a year earlier. To sustain momentum, Hyundai plans to introduce a hybrid (HEV) version of its Palisade SUV in North America later this year, followed by a software-defined vehicle (SDV) built on its next-generation Pleos OS platform in 2026. “Profit margin recovery may remain limited through the first half of 2026 amid tariff uncertainties,” said Sangsangin Investment & Securities analyst Yu Min-ki. “But Hyundai’s growing diversity of profit-contributing models will strengthen its resilience going forward.” 2025-10-22 15:54:08

KOSPI fueled by red-hot SK hynix continues record rally; Asian stocks higher early Tuesday SEOUL, October 21 (AJP) - South Korean and Japanese shares extended gains on Tuesday, buoyed by red-hot semiconductor and energy stocks, sending a ripple effect across broader Asian markets. The benchmark KOSPI climbed 2 percent to 3,890, inching closer to the symbolic four-digit threshold. SK hynix continued its scorching run, breaching 500,000 won ($ 351.60), as investors piled in amid growing fear of missing out (FOMO) on a sustained memory chip rally. “SK hynix shares are flying on FOMO among chip investors amid evident tightening in the DRAM supply chain,” said Ryu Hyung-keun, a researcher at Daishin Securities. Analysts expect the global DRAM shortage to deepen as high-end fabs pivot toward high-bandwidth memory (HBM) and other advanced chips. Even with new facility investments, installation of production equipment such as extreme-ultraviolet (EUV) lithography tools takes at least six months — a lag that could push DRAM prices up 15–20 percent in the fourth quarter from the July–September period. Nuclear and EV suppliers gain Nuclear-equipment stocks surged after reports that Seoul and Washington are renegotiating their nuclear accord to allow Korea to enrich and reprocess nuclear fuel. KEPCO KPS jumped 4.4 percent to 52,300 won (US$36.83), while Doosan Enerbility rose 1.7 percent to 81,700 won. EV supply-chain names also rallied following upbeat results from U.S. electric-vehicle makers. LG Energy Solution advanced 3.4 percent to 447,000 won, and Samsung Electronics edged up 1.4 percent to 99,600 won, approaching the symbolic 100,000-won milestone. LG Innotek, a key Apple camera-module supplier, soared 5.6 percent to 227,000 won on expectations of solid iPhone earnings. Regional markets upbeat Japan’s Nikkei 225 rose 1.2 percent to 49,760, extending gains for a second session as investors welcomed easing political uncertainty ahead of the ruling-party vote widely expected to confirm Sanae Takaichi — known for her pro-monetary-easing stance — as the next prime minister. Semiconductor-related stocks led the rally, with Advantest, a major chip-testing-equipment maker, climbing 3 percent to 18,000 yen (about 170,000 won). On the mainland, the Shanghai Composite Index inched up 0.2 percent to 3,870, stabilizing after weaker-than-expected third-quarter growth data. Investors are now focused on the Chinese Communist Party’s Fourth Plenum, which runs through Thursday. Hong Kong’s Hang Seng Index advanced 1.4 percent to 26,215, lifted by technology and platform stocks, while Taiwan’s TAIEX added 0.6 percent to 27,850. 2025-10-21 11:25:46

Asian shares broadly higher early Mon, led by Nikkei's rally to new highs SEOUL, October 20 (AJP) - Asian markets opened higher across the board Monday, led by Japan, as political uncertainties eased following Sanae Takaichi’s likely premiership and sentiment in China improved after the central bank left its loan prime rates unchanged for October. Japan’s Nikkei 225 surged 2.6 percent in early trading to hit fresh record highs after reports of a political breakthrough in Tokyo — a coalition deal between the ruling Liberal Democratic Party and the Japan Innovation Party — paving the way for Takaichi’s appointment as prime minister. The KOSPI opened 0.71 percent higher at 3,775.4 but soon hovered near flat as investors took a breather from last week’s record-setting rally driven by optimism over a possible tariff deal with the United States. Market participants also stayed cautious ahead of Thursday’s Bank of Korea monetary policy meeting and Friday’s release of the U.S. consumer price index. Among major movers, SK hynix extended its record-breaking climb, rising 2.3 percent to 477,500 won (US$ 335.69), while Samsung Electronics slipped 0.6 percent to around 97,000 won. LG Electronics jumped 5.6 percent to about 89,000 won after its third-quarter earnings beat market expectations. In China, the Shanghai Composite Index edged up 0.6 percent to around 3,862, while Hong Kong’s Hang Seng Index advanced 2 percent to 25,753, recovering losses from last week. Taiwan’s TAIEX rose 1.7 percent to 27,761, and Singapore’s Straits Times Index traded higher in off-market hours. 2025-10-20 11:28:18

KOSPI survives broad Asian stock slide U.S. bank concerns SEOUL, October 17 (AJP) - Major Asian stock markets fell across the board Friday amid renewed jitters over the financial health of U.S. regional banks. Korean shares, however, defied the trend, extending their rally to fresh record highs. The benchmark KOSPI finished nearly flat but managed to notch a new closing high of 3,748.8, supported by strong gains in battery stocks after data showed global electric vehicle sales hit an all-time high in September. EcoPro soared 27.04 percent to 73,300 won ($51.38), while LG Energy Solution added 3.21 percent to close at 434,000 won. Defense stocks retreated as optimism grew over potential cease-fire talks in Ukraine. Hanwha Aerospace slid 2.56 percent to 912,000 won, and LIG Nex1 dropped 3.15 percent to 431,000 won. Elsewhere in Asia, sentiment soured following the negative U.S. news. Japan’s Nikkei 225 lost 1.44 percent to 47,582.15, and Taiwan’s TAIEX declined 1.25 percent to 27,302.37. On the mainland, China’s Shanghai Composite Index fell 1.95 percent to 3,839.76, pressured by simultaneous declines in CPI and PPI data as well as renewed anxiety over Washington’s threat of 100-percent tariffs. Hong Kong’s Hang Seng Index also tumbled about 2.7 percent, hovering near the 25,200 level. 2025-10-17 17:11:42

Exchange, brokers warn as Korea's margin loans surge nearly 50% SEOUL, October 17 (AJP) - Leveraged stock investment in South Korea has soared nearly 50 percent this year to surpass 23 trillion won ($16.4 billion), as the benchmark KOSPI’s 50-percent rally fueled aggressive borrowing for equity trades — prompting warnings from regulators and market participants. The balance of margin accounts at securities firms reached 23 trillion won, up 49 percent from 15.8 trillion won at the end of 2024, according to data released Friday by the Korea Financial Investment Association (KOFIA) and the Korea Exchange (KRX). In a joint statement, KOFIA and KRX cautioned investors about the risks of leveraged trading, emphasizing that excessive borrowing could amplify losses in the event of a market downturn. They noted a particularly sharp increase in margin borrowing among investors under 30 and over 50, raising concern about overexposure among retail investors and retirees. Margin trading allows investors to borrow funds from brokers to purchase shares, with those shares serving as collateral. If stock prices fall below maintenance levels, the collateral value erodes, triggering forced liquidations, or margin calls, at depressed prices — a process that can exacerbate market volatility. 2025-10-17 16:13:26