AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kim Yeon-jae
  • Koreas record C/A surplus pales by near-tripling capital outflows
    Korea's record C/A surplus pales by near-tripling capital outflows SEOUL, Feb. 06 (AJP) -The black figure in South Korea’s current account stretched to a monthly high in December and an annual high for 2025 thanks to red-hot chip sales, but the bulk of the gains went to defending the Korean currency against rapid depreciation and funding outbound investments, data showed. According to data released by the Bank of Korea on Friday, the current account in December recorded a surplus of $18.7 billion, an increase of more than $6 billion from the previous month. This marked the largest monthly surplus on record. For the full year, the surplus reached $123.05 billion, also rewriting the all-time high. Much of the glow fades when the data is set against the financial account, which measures capital flows. The financial account posted net asset increases of $23.77 billion in December, more than doubled from a year earlier, and $119.76 billion for full-year 2025, compared with $96.87 billion in 2024, implying that much more Korean money flowed out than in. The current-account surplus was driven largely by exports, which rose more than 13 percent to $69.54 billion. Chips were the primary earner, with exports expanding 43.1 percent to about $20.92 billion. Information and communication technology devices, including mobile phones, also performed strongly, rising 24 percent to $4.77 billion. Petroleum product exports reached $4.24 billion, up 6 percent from a year earlier, following a four-week improvement in refining margins through late December and a year-end surge in demand. Ships, once a pillar of export growth through October, fell 3 percent to $2.89 billion, marking a second consecutive month of decline. Automobile exports, which exceeded $6 billion in November, slipped back to $5.59 billion. Major automakers such as Hyundai and Kia have entered “contingency plans” as inventories subject to a potential 25 percent tariff under U.S.-Korea trade negotiations hit the market. Steel products also remained sluggish. Although the decline narrowed from November’s 6.3 percent drop, exports still fell 1.7 percent to $4.02 billion. Home appliance exports slid 8.1 percent to $560 million amid competition from cheaper Chinese products. Imports totaled $57.37 billion, up 4.6 percent from a year earlier. The decline in raw material import prices, which hovered around 8 percent in November, slowed sharply to just 1 percent. This reflected the won’s weakness, which averaged 1,467.3 per dollar in December, and rising prices for selected items. While crude oil imports fell 14.4 percent to $5.59 billion and gas dropped 33.4 percent to $2.03 billion, mining imports surged. Mineral imports rose 22.3 percent to $2.55 billion, while other metals, including rare earths, climbed 11.8 percent to $1.55 billion. The largest increase was seen in consumer goods, which jumped 17.9 percent to $9.72 billion. Durable goods, in particular, surged 30.8 percent to $4.37 billion, reflecting soaring prices for smartphones and computers as general-purpose chips were diverted to the AI business-to-business market, along with rising imported car sales. The problem is that much of the money earned has failed to build wealth at home. Investment income reached a record $30.17 billion in 2025, up $1.47 billion from a year earlier. Dividend income accounted for more than two-thirds of the total, at $20.19 billion. But the devil is in the details. In December, outward securities investment by residents rose 17.2 percent to $14.37 billion, with equities accounting for $11.83 billion. In contrast, inward investment by foreigners fell to $5.68 billion from $5.81 billion in November, with just $410 million flowing into stocks and the remainder into bonds. For full-year 2025, outbound securities investment reached $140.3 billion, nearly triple the $52.54 billion invested in local securities by foreigners. Direct investment showed a similar trend. Outward investment rose $6.49 billion, while inward foreign investment increased by only $5.17 billion. The gap, however, narrowed sharply from October, when outbound investment was nearly ten times larger than inbound. For 2025, outbound direct investment reached $41.23 billion, nearly tripling the $15.8 billion invested in Korea by foreign entities. It is little wonder that Korea’s pledge of up to $350 billion — including about $200 billion in cash — to the United States has weighed on the won, despite strong exports and a buoyant stock market. Reserve assets fell $4.44 billion in December, compared with a $1.69 billion increase in November. The country’s foreign exchange reserves fell $2 billion in December and $2.15 billion in January as authorities intervened to support the won and curb import-driven inflation through currency swap arrangements with the National Pension Service. As of 10:15 a.m. Friday, the won was trading at 1,470.2 per dollar, down 1.2 won from the previous close. After stabilizing briefly near the 1,420 level earlier this month, the currency is again facing renewed weakness. 2026-02-06 12:10:58
  • Freefall may be looming in Seoul as short selling mounts
    Freefall may be looming in Seoul as short selling mounts SEOUL, Feb. 05 (AJP) - “What goes up must come down,” the saying goes — and after a prolonged roller-coaster ride, Korean stocks plunged Thursday as heavy institutional selling triggered a sharp reversal. The immediate cue came from a retreat in U.S. technology shares. But the pullback was hardly unexpected, given the rapid buildup in short-selling positions and growing signs of speculative excess. Both the KOSPI and the secondary KOSDAQ tumbled nearly 4 percent Thursday from their previous day’s peaks, underscoring how quickly sentiment had shifted. The reversal had been foreshadowed by institutional investors’ readiness to lock in profits at the first sign of weakness. As of Tuesday, the balance of stock lending — widely seen as a precursor to short selling — climbed to a record 140.8 trillion won ($96 billion), up 24.5 percent from six months earlier, according to market data. In stock lending transactions, institutional players such as pension funds and insurers lend shares to traders, who sell them in anticipation of repurchasing them later at lower prices. The expanding lending balance suggests a growing number of investors have been positioning for a correction or seeking protection against heightened downside risks. Market volatility in early February has been unusually intense. On Monday, concerns over a potential hawkish shift in U.S. monetary policy triggered a 5.3 percent plunge in the KOSPI, briefly pushing it below the psychologically important 5,000 mark. The index rebounded sharply the following day, surging 6.84 percent to a record close, before extending gains on Wednesday — only to reverse course again. By comparison, Japan’s Nikkei 225 posted far more moderate fluctuations over the same period, highlighting the exceptional turbulence in Korean equities. Reflecting elevated investor anxiety, the VKOSPI volatility index climbed above 50 on Feb. 5, more than 50 percent higher than a month earlier. “As volatility widens and the market appears increasingly disconnected from economic fundamentals, investors are actively seeking hedging tools,” a market official said, speaking on condition of anonymity. Yet products designed to profit from falling markets have struggled as the rally continues. Samsung Asset Management’s KODEX 200 Futures Inverse 2X ETF — the most actively traded inverse product — closed at 345 won on Feb. 4, down 38 percent over the past month and more than 90 percent below its 2016 listing price, leaving it trading at levels comparable to penny stocks. Other inverse products have also weakened. Mirae Asset’s TIGER Inverse ETF has fallen about 22 percent since the start of the year. Inverse ETFs move opposite to the underlying index, meaning their performance deteriorates when markets rise. When the KOSPI fell 3.86 percent in the following session, the KODEX leveraged inverse fund briefly jumped nearly 9 percent, underscoring the products’ sensitivity to market swings. Analysts say structural factors also weigh on returns, including frequent trading and retail investors’ tendency to react quickly to market headlines. Average daily ETF trading value this year has nearly doubled from last year to more than 11 trillion won, according to the Korea Exchange, reflecting heavier speculative activity. The Bank of Korea has also noted rising trading volumes in leveraged and inverse ETFs. “Participants in leveraged and inverse ETF markets, especially double-inverse products, tend to focus on short-term trades and are highly sensitive to external news,” said an official at a capital markets research institute. 2026-02-05 17:25:32
  • Seouls FX battle costs $4 bn over the last two months
    Seoul's FX battle costs $4 bn over the last two months SEOUL, February 04 (AJP) - South Korea has deployed nearly every tool in its policy playbook to defend the won, which authorities say has weakened “excessively” beyond its fundamentals — a view shared even by the U.S. Treasury secretary. Measures have ranged from pressuring public and private institutions to sell dollar holdings to offering tax incentives aimed at drawing capital back home. Yet despite these efforts, the national coffers have paid a heavy price. As of the end of January 2026, foreign exchange reserves stood at $425.91 billion, down $2.15 billion from the previous month, following a decline of more than $2 billion in December, according to the Bank of Korea (BOK) on Wednesday. Nearly $4.2 billion has been depleted in just two months. The central bank attributed the decline primarily to its FX swap arrangement with the National Pension Service (NPS). Under the program, the BOK supplies dollars to the NPS for overseas equity purchases, temporarily limiting capital outflows that typically weaken the won. The BOK has said the swap would temporarily dent reserves but be reversed once the dollars are returned. However, whether the strategy is producing meaningful results remains uncertain. The average exchange rate rose to 1,467.35 won per dollar in December, up from 1,461 in November. Despite continued intervention, the rate remained weak at around 1,451 won as of Feb. 4. In late January, the won posted the sharpest decline among major currencies, briefly approaching the 1,470 level. Private dollar hoarding offsets intervention A broader look at the private sector highlights a structural challenge. According to BOK data released on Jan. 26, resident foreign currency deposits reached a record $119.43 billion in December, up $15.88 billion from November. Both the balance and the monthly increase marked all-time highs. The central bank is well aware of the trend. At a press conference following the January Monetary Policy Board meeting, BOK Governor Rhee Chang-yong noted that individuals and corporations already hold ample dollar liquidity. Rhee explained that many market participants, betting on continued dollar strength, prefer lending their dollars in financial markets rather than selling them in the spot market. “The issue lies in circulation structure, not in total supply,” he said. Meanwhile, growing preference for overseas assets reflects persistent skepticism over corporate earnings growth and long-term prospects for “Korea Inc.” Data from the Korea Securities Depository show that Korean investors’ holdings of U.S. stocks reached a record $171.8 billion, rising 5 percent between Dec. 31 and Jan. 16. The BOK also reported that outward securities investment surged by $12.26 billion in November, led by equities, while foreign inflows remained below $6 billion and were concentrated largely in bonds. Policy efforts face structural limits Authorities are rolling out measures to attract capital back home, including Reshoring Investment Accounts and the National Growth Fund. The Financial Supervisory Service is also considering incentives such as higher interest rates for converting dollars into won. South Korea’s gradual inclusion in the World Government Bond Index through November is also raising hopes for stronger foreign inflows. Still, analysts stress that sustained currency stability ultimately depends on economic fundamentals. Shinhan Securities expects the exchange rate to remain around 1,400 won per dollar, citing weak growth and slowing potential output. South Korea’s economy contracted 0.3 percent in the fourth quarter of 2025, while full-year growth barely reached 1 percent. “The reason many people are investing in ‘Gobbuss’ (KODEX 200 Futures Inverse 2X) even as the KOSPI hits record highs is anxiety over the real economy,” said an investment banking official, speaking on condition of anonymity. “The psychology behind refusing to sell dollars is essentially the same.” Stocks surge despite currency weakness Despite the won’s fragility, equity markets continued to rally. The KOSPI closed Wednesday at a record 5,371.10, up 1.57 percent. Institutional investors posted net purchases of 1.4 trillion won ($964.2 million), while retail investors sold a net 1 trillion won. In January, institutions were net buyers of 34 trillion won, while retail and foreign investors were net sellers of 2.7 trillion won and 3.7 trillion won, respectively. Meanwhile, the dollar rose 1.30 won to close at 1,452.30. 2026-02-04 17:42:43
  • Greater rights offerings and fewer IPOs amid big-cap-led Korean stock boom
    Greater rights offerings and fewer IPOs amid big-cap-led Korean stock boom SEOUL, Feb. 04 (AJP) - South Korea’s equity issuance saw a significant jump of approximately 55 percent last year, fueled by large-scale rights offerings. In contrast, new shares issued through initial public offerings (IPOs) contracted, underscoring a deepening funding freeze for small- and medium-sized enterprises (SMEs) and venture firms. According to the Financial Supervisory Service (FSS) on Wednesday, public equity issuance last year totaled 13.71 trillion won ($9.4 billion), an increase of 55.4 percent from the previous year. Rights offerings accounted for 10.30 trillion won of the total, skyrocketing 113.3 percent compared to 2024. The surge was primarily driven by major conglomerates, with the total value of rights offerings by large corporations alone increasing by nearly 220 percent on year. The number of rights offerings reached 72, an increase of 28.6 percent from the 56 cases recorded in 2024. Reflecting a growth trend skewed toward conglomerates, the push in rights offerings was led by major players. While rights offerings by large firms surged 220 percent versus the previous year, those by SMEs decreased 22.6 percent during the same period. IPO market chills amid tightened regulations Equity issuance through IPOs amounted to 3.68 trillion won, down 10.7 percent from a year ago. The number of IPOs fell 14 percent to 98 cases. By market, 6 cases were listed on the benchmark KOSPI, while 92 cases were on the tech-heavy KOSDAQ. The divergence is attributed to continued strong performances by existing listed giants, while SMEs and venture firms struggled. Furthermore, the government's aggressive moves to exit "zombie companies" and block "split-off listings" have raised the bar for initial public offerings. Corporate bond issuance totaled 276.25 trillion won, a slight decrease of 0.7 percent against the previous year. Compared to 2024, general corporate bonds and ABS increased 6.5 percent and 20.0 percent, respectively, while financial bonds fell 4.0 percent. For general corporate bonds, refinancing accounted for the largest share at 79.6 percent, followed by operating capital (16.4 percent) and facility investment (4.0 percent). By credit rating, high-grade bonds (AA or higher) rose to 70.7 percent, while lower-rated bonds (A or lower) fell to 29.3 percent relative to the year before. By maturity, mid-term bonds continued to dominate at 95.0 percent, with long-term and short-term bonds accounting for 3.4 percent and 1.6 percent, respectively. Among financial bonds, bank bonds and other financial bonds decreased 12.2 percent and 2.4 percent, while bonds issued by financial holding companies jumped 31.3 percent from a year earlier. As of the end of last year, the total outstanding balance of corporate bonds stood at 756.88 trillion won, up 9.3 percent from the prior year. Meanwhile, issuance of commercial paper (CP) and short-term bonds reached 1,663.32 trillion won, marking a 27.6 percent increase over 2024. 2026-02-04 10:28:27
  • KOSPI, Nikkei rebound from Warsh Shock, hit fresh record highs
    KOSPI, Nikkei rebound from 'Warsh Shock,' hit fresh record highs SEOUL, Feb 03 (AJP) - Asian equity markets staged a decisive rebound Tuesday, shaking off jitters dubbed the “Warsh Shock,” as South Korea’s benchmark KOSPI surged nearly 7 percent to a fresh all-time high and fueling a regionwide rally. The sharp recovery followed gains on Wall Street after U.S. purchasing managers’ index data returned to expansion for the first time in a year, easing concerns about an economic slowdown. Market sentiment also improved as investors reassessed initial fears that Federal Reserve chair nominee Kevin Warsh would take an aggressively hawkish stance, increasingly viewing them as overblown. The Korean won strengthened alongside equities, with the dollar falling as much as 10.5 won to 1,443 won from the previous close. Meanwhile, a rapid rotation into risk assets pushed the yield on the 10-year Korean government bond up 5.8 basis points to 3.661 percent. The KOSPI soared 6.84 percent to close at 5,228.08, recouping the previous session’s losses and setting a new intraday and closing record. Hopes that Warsh could emerge as a “hawkish dove” rather than a hardliner helped reignite appetite for equities. Institutional investors led the rally with a net purchase of 2.17 trillion won ($1.5 billion), while foreign investors added 705 billion won. Retail investors, who had fueled buying the previous day, took profits, unloading 2.94 trillion won. Chip behemoths roared on. Samsung Electronics jumped 11.37 percent to a record 167,500 won, while SK hynix climbed 9.28 percent to 907,000 won, both marking fresh 52-week highs. Hyundai Motor, the third-largest company by market capitalization, rose 2.82 percent to 491,500 won. LG Energy Solution, which has struggled with sluggish earnings, gained 2.9 percent to close at 391,000 won. Naver, however, lagged the broader rally, edging up just 0.37 percent to 269,000 won as investors stayed on the sidelines ahead of its earnings release expected around Feb. 5. The tech-heavy KOSDAQ advanced 4.19 percent to 1,144.33, erasing the previous session’s sharp losses, though it fell short of a new record. Mirae Asset Venture Investment was the day’s standout performer, hitting the daily 30 percent upper limit to close at 22,100 won. The surge followed news that Elon Musk’s SpaceX had acquired xAI, benefiting Mirae Asset Venture, a major investor in SpaceX. In Japan, the Nikkei 225 snapped its losing streak, jumping 3.92 percent to close at 54,720.66, also a new all-time high. A rebound in U.S. technology stocks lifted Japanese semiconductor shares. Advantest rose 7.1 percent, Disco gained 7.4 percent, Tokyo Electron climbed 4.8 percent, and Ibiden surged 8.6 percent, capping a strong day for the chip sector. Toyota Motor advanced a more modest 1.67 percent to 3,594 yen, as much of its strength as the world’s top auto seller in 2025 was already priced in. Elsewhere in the region, Taiwan’s TAIEX rose 1.81 percent to 32,195.36. MediaTek surged 5.28 percent after reporting better-than-expected earnings, while TSMC gained 2.0 percent. Chinese markets also rebounded broadly, with the Shanghai Composite up 1.3 percent and the Shenzhen Composite climbing 2.2 percent. Hong Kong’s Hang Seng Index, however, lagged peers, inching up just 0.13 percent to close at 26,810, weighed down by dollar strength and turbulence in cryptocurrency markets. 2026-02-03 17:07:55
  • UPDATE: Koreas inflation cools to 2% in January on soft fuel prices, weak demand
    UPDATE: Korea's inflation cools to 2% in January on soft fuel prices, weak demand *Updated with additional information SEOUL, February 03 (AJP) - South Korea’s inflation eased back to the central bank’s target level in January, as softer fuel prices and subdued domestic demand outweighed lingering pressures from a weak currency. According to the Ministry of Data and Statistics, the consumer price index (CPI) rose 2.0 percent in January from a year earlier, slowing from 2.3 percent in December and 2.4 percent in both October and November. The moderation partly reflected seasonal factors. The Lunar New Year holiday falls in February this year, unlike last year when it came in January and pushed up food prices due to family gatherings and ceremonial demand. Energy prices also helped contain inflation despite the won’s prolonged weakness against the U.S. dollar. Gasoline and diesel prices fell 2.4 percent and 3.5 percent, respectively, easing pressure on utility costs during the winter peak season. The data suggest that sluggish domestic demand has so far offset inflationary pass-through effects from currency depreciation and global price volatility. The exchange rate remained a key inflationary factor, though pressures softened slightly. The won averaged 1,458.19 per dollar in January, strengthening modestly from 1,467.35 in December. The stabilization was supported by government intervention in the foreign exchange market and a broader softening of the U.S. dollar through January, allowing the won to recover part of its recent losses. The easing helped reduce energy import costs. Dubai crude oil traded in a narrow range of $58 to $62 per barrel in January, broadly unchanged from December. Fuel prices, however, reversed the sharp increases seen late last year, when gasoline and diesel surged 5.7 percent and 10.8 percent, respectively. Reflecting the fuel decline, transportation costs fell 0.9 percent month-on-month. Month-on-month price movements underscore restrained consumption behavior amid still-elevated price levels. Food and beverages rose 0.6 percent from December, household goods increased 0.5 percent, and recreation and culture climbed 0.6 percent. Prices for “miscellaneous goods and services” rose 2.8 percent on the month and 5.0 percent year-on-year, largely due to annual price adjustments at the start of the year. Insurance service fees surged 15.3 percent from a year earlier, the steepest increase among all CPI items. Household goods and domestic services also rose 2.9 percent year-on-year, outpacing most other categories. A breakdown by item type confirms the subdued demand trend. Dining-out prices rose just 0.3 percent, while non-dining personal services increased 1.0 percent. In contrast, price growth for agricultural and industrial products either slowed or shifted toward contraction. Prices of agricultural, livestock and fishery products rose 0.7 percent year-on-year, easing from 1.0 percent in December. Overall goods inflation narrowed sharply from 0.4 percent to 0.1 percent. Notably, manufactured goods prices fell 0.1 percent month-on-month, helped by the won’s relative stabilization. The Ministry of Economy and Finance assessed in a press release that inflation remained relatively stable in January but warned of potential upward pressure during the Lunar New Year holiday in mid-February. “Given lingering uncertainties such as international oil price volatility and winter weather conditions, the government plans to devote all its resources to stabilizing perceived inflation for the public,” the ministry said. 2026-02-03 08:29:52
  • Trumps Warsh pick triggers panic in Korean markets for strong USD bias
    Trump's Warsh pick triggers panic in Korean markets for strong USD bias SEOUL, February 02 (AJP) - Korean markets saw panicky selling on Monday following Donald Trump’s nomination of Kevin Warsh as the next chair of the U.S. Federal Reserve, with equities and the won sliding sharply on concerns that his policy framework could reinforce dollar strength and drain global liquidity. Whether Warsh would ultimately comply with Trump’s long-standing calls for lower borrowing costs remains uncertain. Investors, however, moved quickly to price in a scenario in which rate cuts coexist with tighter underlying liquidity — a mix widely viewed as unfavorable for emerging-market currencies such as the Korean won. Trump announced Warsh’s nomination last Friday. He is set to succeed Jerome Powell, whose term expires on May 15 after a tenure frequently marked by public friction with the White House. The selloff was broad-based. The KOSPI closed down 5.26 percent at 4,949.67, falling below the psychologically important 5,000 level. Intraday volatility triggered a sell-side “sidecar” trading halt, underscoring the disorderly nature of the move. The won weakened to 1,464.3 per dollar, down 24.8 won by late afternoon. Commodity markets echoed the risk-off mood. Gold futures fell 11.4 percent to $4,745.10 per troy ounce, while silver futures plunged 31.4 percent to $78.531, marking their steepest single-day declines since January 1980, when former Fed chair Paul Volcker unleashed aggressive rate hikes to rein in inflation. Hawkish by structure, not by label Warsh is not generally regarded as a traditional monetary hawk. Paradoxically, that nuance has unsettled markets. Investors point to his record as a Fed governor, particularly his clashes with Ben Bernanke over the second round of quantitative easing (QE2). At the time, Warsh openly opposed large-scale asset purchases, warning Bernanke, “If I were in your chair, I would not be leading the Fed in this direction.” That history has reinforced expectations that Warsh, even if willing to lower policy rates, would prioritize balance-sheet discipline — keeping the dollar scarce and underpinning its value. Warsh’s more recent thinking suggests a hybrid approach: cutting rates to support investment while continuing quantitative tightening (QT) through Treasury sales. The goal is to stimulate corporate activity without undermining the dollar. Under such a framework, rate cuts would not necessarily weaken the greenback. Instead, reduced global dollar liquidity could persist, weighing on currencies like the won and making Korean assets less attractive on a currency-adjusted basis. Warsh has defended the apparent contradiction by arguing that productivity gains from artificial intelligence can offset inflationary pressures. In a July interview, he said the AI revolution would be a “significant disinflationary force,” allowing looser policy without destabilizing prices. He has also cited Alan Greenspan as a reference point, praising Greenspan’s decision to refrain from preemptive rate hikes during the 1990s technology boom as productivity gains kept inflation in check. For South Korea, that historical parallel is unsettling. Greenspan’s accommodative stance ultimately preceded the 2000 dot-com collapse, when the Nasdaq plunged 78 percent and the U.S. dollar index weakened sharply. Korea was hit harder still: the KOSDAQ fell nearly 80 percent, while the won depreciated from the 1,100 range to around 1,360 per dollar. Analysts warn that a similar combination of equity volatility and currency weakness could re-emerge if global liquidity tightens more aggressively than markets expect under a Warsh-led Fed. Liquidity stress back on the radar Concerns are also resurfacing over potential liquidity stress as QT drains bank reserves. In September 2019, heavy Treasury issuance combined with corporate tax payments pushed the U.S. repo rate from 2 percent to 10 percent, forcing emergency Fed intervention. Some market participants fear that under Warsh, such stress might be tolerated — or allowed to run longer — as part of balance-sheet normalization. “Unlike in 2019, there is now a broader consensus that normalizing the balance sheet itself is a core policy objective,” a KB Securities official said on condition of anonymity. NH Investment & Securities similarly cautioned that a rapid policy pivot should not be assumed. A tougher outlook for the won Optimism earlier this year that the won could stabilize near 1,400 per dollar, as suggested by Lee Jae Myung, is now being reassessed. For Korean markets, the concern is less about Warsh’s personal ideology than about whether the next Fed chair institutionalizes a framework that favors a strong dollar by design. If that proves to be the case, Monday’s panicky selling may mark the start of a longer adjustment rather than a one-off reaction. 2026-02-02 17:15:04
  • Korean Economy/Business Calendar
    Korean Economy/Business Calendar SEOUL, January 30 (AJP) - Feb 2 (Mon) 4Q 2025 & Annual Results - Samsung SDI Feb 3 (Tue) Jan. 2026 Consumer Price Index (CPI) - Ministry of Data and Statistics Feb 4 (Wed) 4Q 2025 Results - Hanwha Ocean Feb 5 (Thu) 4Q 2025 Results - Hanwha Systems Feb 5–6 (Thu–Fri) 4Q 2025 Results - NAVER Feb 6 (Fri) Dec. 2025 Balance of Payments (Preliminary) - Bank of Korea Feb 8 (Sun) 4Q 2025 Results - HD Hyundai Heavy Industries Feb 11 (Wed) Jan. 2026 Employment Trends - Ministry of Data and Statistics Feb 13 (Fri) Dec. 2025 Money & Liquidity / Jan. 2026 Export & Import Prices - Bank of Korea Feb 20 (Fri) 4Q 2025 Household Credit (Preliminary) - Bank of Korea Feb 24 (Tue) Feb. 2026 CCSI / Jan. 2026 PPI - Bank of Korea Feb 25 (Wed) Feb. 2026 BSI & ESI - Bank of Korea Annual 2025 Births & Deaths / Dec. 2025 Population Trends - Ministry of Data and Statistics 2026-01-30 14:46:13
  • UPDATE: Koreas factory output strongest in four months in December, slows for full 2025
    UPDATE: Korea's factory output strongest in four months in December, slows for full 2025 *Updated with additional information and market response SEOUL, January 30 (AJP) - South Korea’s factory output grew at its fastest pace in four months in December, driven by chip-led exports and a sharp rebound in construction, though growth slowed for full-year 2025 amid prolonged weakness in building activity. Mining and manufacturing production rose 1.7 percent from the previous month, rebounding from two consecutive contractions and accelerating from a 0.8 percent gain in November, according to data released Friday by the Ministry of Data and Statistics. Services output increased 1.1 percent on month, with retail sales rising 0.9 percent. Capital investment fell 3.6 percent, while construction investment surged 12.1 percent. Gains in manufacturing were primarily driven by semiconductors, where production rose 2.9 percent on month, marking a second straight month of expansion. The pace moderated from November’s 8.8 percent surge as the base effect from October’s slump began to fade. The most significant sector-specific rebound occurred in pharmaceuticals. After a 10.5 percent decline in November, output jumped 10.2 percent in December. Conversely, automobile production — a major pillar of the manufacturing base — fell 2.8 percent, marking its second consecutive monthly decrease. On a year-on-year basis, production of “other transport equipment,” including ships, surged 26.4 percent, driven by strong orders for specialized vessels such as LNG carriers. However, facility investment in this segment plunged 16.1 percent from the previous month, contributing to an overall 3.6 percent decline in total capital expenditure. Overall manufacturing shipments rose 2.5 percent. While shipments of automobiles and pharmaceuticals declined, semiconductors and electrical equipment anchored the aggregate gain. Both domestic and export demand showed strength, with domestic shipments rising 1.2 percent and export shipments climbing 4.0 percent. Korean markets were mixed. The KOSPI was trading at 5,273, up 1.0 percent, while the KOSDAQ remained virtually flat at 1,165. The dollar added 3.8 won to 1,438.8 won. Domestic front improves The retail sales index edged up 0.5 percent year on year, driven by a 4.5 percent increase in durable goods, particularly passenger cars. Still, sticky inflation weighed on spending. Semi-durable goods, such as clothing, fell 2.2 percent, while non-durable goods, including cosmetics, decreased 0.3 percent. Retail patterns also showed a stark divergence. Year-on-year sales at supermarkets and general stores fell 4.3 percent, department stores dropped 4.4 percent, and convenience stores declined 2.6 percent. In contrast, the retail index for passenger cars and fuel stations rose 5.3 percent. This suggests that while households are tightening their belts on food and daily necessities, spending on automotive-related items has remained elevated. A standout figure in the latest report was the performance of the construction sector. Construction output surged 12.1 percent from the previous month, reversing a downturn that had persisted for 19 months. The recovery was led by a 13.7 percent increase in building construction and a 7.4 percent rise in civil engineering. Construction orders also climbed 18.7 percent on month. Building orders, particularly in the residential segment, rose 21.2 percent, while civil engineering orders increased 13.0 percent. The surge in orders, however, was heavily concentrated in the public sector, which recorded a 65.2 percent jump in contracts. In contrast, private-sector orders — a key gauge of organic market demand — fell 1.3 percent. Analysts say that while output figures point to a short-term rebound, the divergence between public and private orders suggests the sector has yet to achieve a structural recovery. Five-year streak continues, but momentum falters For the full year of 2025, South Korea’s total industrial production edged up 0.5 percent, supported by synchronized gains in manufacturing and services. This marked the fifth consecutive year of expansion since 2021. Mining and manufacturing output rose 1.6 percent for the year, with semiconductors again leading the gains and other transport equipment providing a notable tailwind. Momentum, however, weakened toward year-end, with fourth-quarter production falling 3.2 percent from the previous quarter, signaling a cooling trend in late 2025. The service sector grew 1.9 percent for the year, supported by increased activity in health and social welfare as well as wholesale and retail trade. By contrast, the education sector contracted, weighing on overall service-sector growth. Despite the continued expansion, the pace of growth has slowed markedly. After surging 5.5 percent in 2021 on post-pandemic base effects, growth decelerated to 4.8 percent in 2022, 1.2 percent in 2023 and 1.5 percent in 2024. Last year’s 0.5 percent gain marked the first time since the recovery began that growth slipped below the 1 percent threshold. 2026-01-30 09:21:59
  • Asian shares struggle for direction amid Fed signals, Middle East tensions
    Asian shares struggle for direction amid Fed signals, Middle East tensions SEOUL, January 29 (AJP) - Asian markets closed mixed on Thursday as investors struggled to find direction amid conflicting signals from corporate earnings, central bank policy and rising geopolitical tensions, a combination that kept volatility elevated across the region. Currency markets reflected the uncertainty. The South Korean won was quoted at 1,428.9 per dollar at 4:40 p.m., down 4.6 won from the previous close. While the won pared earlier losses as the U.S. dollar weakened in late trading, it remained volatile amid competing global factors. Market sentiment was initially buoyed by comments from U.S. Treasury Secretary Scott Bessent, who dismissed the possibility of intentional intervention to weaken the Japanese yen, alongside the U.S. Federal Reserve’s decision to hold rates at 3.5–3.75 percent with a hawkish tone. The dollar later reversed course after media reports said President Donald Trump was weighing military options against Iran. The U.S. Dollar Index fell 0.16 percent to 96.20 by late afternoon. The benchmark 10-year U.S. Treasury yield rose 3.9 basis points to 3.557 percent, reflecting investor unease over the Fed’s stance and heightened geopolitical risks. South Korean stocks recovered from early losses, with the benchmark KOSPI closing up 0.98 percent at 5,221.25, supported by strong earnings and corporate investment announcements that offset macroeconomic concerns. Samsung Electronics fell 1.05 percent to 160,700 won despite reporting fourth-quarter operating profit of 20.1 trillion won ($14 billion). Investors were cautious after the company warned that rising memory prices could weigh on demand for smartphones and personal computers, while losses in its home appliances business also dampened sentiment. SK hynix climbed 2.38 percent to 861,000 won after overtaking Samsung in semiconductor profitability for the first time. The chipmaker posted quarterly operating profit of 19.2 trillion won and announced a shareholder return plan that includes the cancellation of 15.3 million treasury shares. Shares in SK Square, a major shareholder, jumped 5.36 percent. Hyundai Motor surged 7.21 percent to 528,000 won, extending gains that have lifted the stock more than 150 percent from late January last year. Investors welcomed the automaker’s commitment to complete real-world testing of its humanoid robot “Atlas” and smart-car prototypes by late 2026, despite a nearly 20 percent year-on-year decline in operating profit. LG Energy Solution fell 3.36 percent to 416,500 won after confirming a fourth-quarter operating loss of 122 billion won. Weakness in its energy storage system business and recent contract cancellations weighed on the stock, pushing it out of the top three by market capitalization. The tech-heavy KOSDAQ outperformed, rising 2.73 percent to 1,164.41, driven by technology shares and government-backed “value-up” initiatives. Rainbow Robotics jumped 9.35 percent following Samsung’s pledge to accelerate robotics investments, while EcoPro BM gained 7.42 percent. Biotech firm Alteogen slipped 1.15 percent ahead of its planned move to the KOSPI. In Japan, the Nikkei 225 ended flat at 53,375.60 after a volatile session. Early losses linked to yen strength were offset by gains in automakers, though safe-haven demand for the yen amid Middle East tensions capped the index’s advance. The yen was quoted at 153.30 per dollar late in the day. Toyota Motor rose 3.02 percent after reporting record sales for 2025, while Honda gained 2.17 percent on strong guidance led by hybrid vehicles. Chip tester Advantest climbed 5.17 percent after posting an earnings beat. Taiwan’s TAIEX fell 0.82 percent to 32,536.27 on profit-taking and concerns over the impact of a weaker dollar on foreign exchange reserves. TSMC slipped 0.82 percent, Foxconn fell 0.67 percent, and MediaTek ended flat after erasing early gains. Mainland Chinese markets were steadier, with the Shanghai Composite edging up 0.16 percent to 4,157.98. In Hong Kong, the Hang Seng Index reversed early losses to trade 0.36 percent higher at 27,928 in late afternoon dealings, supported by gains in gold-related shares. 2026-01-29 17:08:02