Journalist

Seo Hye Seung, Kim Yeon-jae
  • HOT STOCK: British fund bullish on LG Chem, local banks wary how far the stock can go
    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
    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
    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
    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
    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 Nikkeis rally to new highs
    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
    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 Koreas margin loans surge nearly 50%
    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
  • Koreas job growth in September hits 19-Month high, manufacturing still tepid
    Korea's job growth in September hits 19-Month high, manufacturing still tepid SEOUL, October 17 (AJP) - South Korea saw the largest job addition in 19 months in September, driven mainly by service-sector hiring under government stimulus measures, while manufacturing and youth employment remained sluggish, data showed Friday. According to the Ministry of Data and Statistics, the number of employed people aged 15 and over reached 29.15 million in September, an increase of 312,000 from a year earlier. It was the largest on-year gain since February 2023, when employment rose by 329,000. The headline employment data has stayed positive throughout the year, but gains were uneven across sectors and age groups. Employment among young people aged 15 to 29 fell by 146,000, marking the steepest decline among all age groups. Workers in their 50s also continued to lose jobs for the ninth consecutive month. In contrast, those aged 60 and older added 380,700 positions, more than offsetting the declines in younger cohorts. By industry, the largest job gains were seen in health and social welfare services, which added 304,000 positions (a 10.1 percent increase), followed by arts, sports and recreational services with 75,000 (up 14.5 percent) and education services with 56,000 (up 2.9 percent). The nation’s traditional backbone sectors continued to shed workers. Construction lost 84,000 jobs (down 4.1 percent), and manufacturing contracted by 61,000 (down 1.4 percent). The agriculture, forestry and fisheries sector also saw a sharp fall, losing 146,000 jobs (down 9.1 percent). Among self-employed workers, those with employees increased by 30,000, partly reflecting government support programs such as livelihood recovery subsidies. In contrast, self-employed without employees declined by 80,000, and family workers decreased by 20,000. The number of unemployed persons stood at 635,000, up 12,000 from a year earlier, led largely by workers in their 30s to 50s. Meanwhile, the population classified as “inactive,” who have given up job hunting, increased by 42,000 (up 1.7 percent) to 2.52 million. On a brighter note, the number of inactive people aged 15 to 29 and those in their 30s fell by 34,000 and 12,000, respectively. 2025-10-17 15:36:19
  • Asian stocks upbeat, KOSPI leads the pack to new highs
    Asian stocks upbeat, KOSPI leads the pack to new highs SEOUL, October 16 (AJP) - Asian shares extended gains on Thursday as expectations for a U.S. rate cut outweighed concerns over renewed trade tensions between Washington and Beijing. Korea’s benchmark KOSPI jumped 2.49 percent to close at a record high of 3,748.37, driven by strong foreign and institutional buying. Nine of the top 10 blue chips advanced, led by an 8 percent surge in Hyundai Motor and a 7 percent rise in Kia Motors amid growing optimism for a breakthrough in Seoul–Washington tariff talks. The Supreme Court’s ruling on SK Group Chairman Chey Tae-won’s $1 billion divorce case drew heavy attention, sending related stocks in mixed directions. SK hynix climbed 6.98 percent to 452,000 won (US$318.61), while holding company SK Inc. slid 5.62 percent to 218,500 won. Preferred shares of SK Discovery, another Chey-affiliated firm, eased 1.25 percent to 35,550 won. Elsewhere in the region, Taiwan’s TAIEX continued its upward momentum, rising 1.36 percent to 27,647.87, while Japan’s Nikkei 225 added 1.27 percent to close at 48,277.74. China-related markets remained subdued. The Shanghai Composite Index fluctuated throughout the session before ending 0.1 percent higher at 3,916.23, while the Shenzhen Component Index slipped 0.25 percent to 13,086.41. Data from the National Bureau of Statistics showed declines in both the consumer price index and producer price index, heightening concerns over slowing domestic demand. Markets in Hong Kong and Singapore opened lower as financial shares retreated. Investors worried that further U.S. rate cuts could compress banking-sector margins. The Hang Seng Index and Straits Times Index were each down about 0.3 percent in afternoon trading. 2025-10-16 17:13:25