Journalist

SHIN DONGKUN
  • Leverage rises in Korean stock market amid expectations of year-end rally
    Leverage rises in Korean stock market amid expectations of year-end rally SEOUL, December 09 (AJP) - South Korean retail investors have pushed margin loan balances above 27 trillion won for the first time, driven by growing expectations of a year-end “Santa rally." As of Dec. 5, outstanding margin loans stood at a record 27.076 trillion won. Margin loans — funds borrowed from securities firms to purchase stocks — are widely seen as a barometer of leveraged retail trading activity. Stock-backed loans also increased sharply, rising by roughly 600 billion won between Dec. 1 and Dec. 5. Bank lending to households has also accelerated. In November, unsecured credit loans at South Korea’s five largest banks rose by 1.14 trillion won, the largest monthly increase since July 2021, reflecting a shift of funds toward equity markets. Market optimism has been bolstered by anticipation of the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) meeting on Dec. 10, with investors focusing on the possibility of an interest rate cut. Improved foreign investor flows have also supported share prices. Analysts warn that while a sustained rally would limit risks, any sharp market correction could trigger significant losses for highly leveraged investors. Signs of stress have already emerged. In November, forced liquidations by securities firms exceeded 30 billion won on Nov. 7, 18 and 25 as falling share prices eroded collateral values. Total forced sales for the month hit their highest level this year. Such liquidations occur when margin ratios fall below required thresholds, prompting brokerages to sell pledged shares. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-09 15:14:51
  • South Korean brokerages post higher profit in Q3
    South Korean brokerages post higher profit in Q3 SEOUL, December 03 (AJP) - South Korean securities firms posted a combined net profit of 2.49 trillion won in the third quarter, up 37.6 percent from a year earlier but down 12.6 percent from the previous quarter, preliminary data from the Financial Supervisory Service (FSS) showed on Wednesday. The sector’s average return on equity rose to 2.6 percent from 2.1 percent a year earlier, supported by a rebound in stock markets that lifted commission income. However, higher interest rates weighed on bond trading, dragging overall quarterly profit lower. As of end-September, the industry’s total capital stood at 100.7 trillion won, up 4.2 trillion won over three months. The average net capital ratio increased to 920.2 percent, with all firms comfortably above the regulatory minimum of 100 percent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-03 08:40:30
  • South Korean asset management firms Q3 profit surges 128 percent year-on-year
    South Korean asset management firms' Q3 profit surges 128 percent year-on-year SEOUL, December 01 (AJP) - South Korea’s asset management industry expanded in the third quarter, with total assets under management (AUM) rising 3.9 percent from the previous quarter to 1,868.8 trillion won (about $1.27 trillion). Fund deposits grew 5 percent to 1,226.8 trillion won ($835 billion), while investment advisory contracts increased 1.8 percent to 642 trillion won. Funds recorded gains across major categories: equity funds reached 149.5 trillion won, bond funds 105.8 trillion won, and derivative funds 70 trillion won. Industry profitability strengthened sharply. Net profit jumped 128.5 percent year-on-year to 944.7 billion won, while operating profit climbed 154.9 percent to 996.3 billion won. Return on equity improved 1.3 percentage points to 21.9 percent. An official from the Financial Supervisory Service (FSS) said that improved government policies and stronger market performance helped lift stock indices and support profitability. However, the regulator noted the continued dominance of ETF-related public funds and widening performance gaps among firms. Nearly 80 percent of industry-wide net profit in the third quarter was concentrated among the top 30 companies. The number of asset management firms increased by five to 505, with total employment reaching 13,626, up 119 from the previous quarter. Among 501 firms assessed, 299, or 59.7 percent, were profitable. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-01 10:08:15
  • Foreign investors extend buying spree in Korean stocks but retreat from bonds
    Foreign investors extend buying spree in Korean stocks but retreat from bonds SEOUL, November 14 (AJP) - Foreign investors extended their months-long buying streak in South Korean equities in October, even as they pulled back from the country’s bond market, according to data released Friday by the Financial Supervisory Service. Overseas investors purchased a net 4.2 trillion won ($3.1 billion) in Korean stocks last month, marking the sixth straight month of net inflows. The bulk of the buying was concentrated in the benchmark KOSPI market. By the end of October, foreign investors held 1,250 trillion won in Korean equities — about 30.1 percent of total market capitalization. European investors led the charge, adding a net 4.5 trillion won in equities. Asia-based investors followed with net purchases of 100 billion won. Investors from the Middle East, however, were net sellers, offloading about 600 billion won. By country, Britain and Ireland emerged as the most active buyers, with net purchases of 2.4 trillion won and 1.3 trillion won, respectively. U.S. investors sold a net 1 trillion won, while Kuwait shed 600 billion won. The upbeat sentiment in stocks contrasted with foreign activity in South Korea’s bond market. Although investors bought 3.8 trillion won in bonds in October, redemptions totaled 4 trillion won, resulting in a net withdrawal of 178 billion won. Foreign holdings of Korean bonds stood at 307 trillion won at month’s end, or 11.2 percent of all outstanding bonds. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-14 10:15:33