Journalist
SHIN DONGKUN
sdk6425@ajunews.com
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Korea Investment & Securities to Compensate Belgian Fund Investors 50.2% Korea Investment & Securities has reportedly compensated investors in the "Belgian real estate fund" approximately 50.2% of their losses. Initially, the firm offered limited voluntary compensation to some investors, but it has since expanded the scope to include all investors. This decision is said to reflect a significant commitment to consumer protection by President Kim Seong-hwan.According to the Financial Supervisory Service and the financial investment industry on May 14, Korea Investment & Securities has compensated investors in the "Korea Investment Belgian Core Office Real Estate Investment Trust No. 2" (Belgian fund) at an average rate of 50.2% of their losses.The "Belgian fund" was established in 2019 by Korea Investment Real Asset Management and was structured to invest in lease rights for local office buildings leased long-term by Belgian government agencies. However, it faced controversy over improper sales, leading to numerous investor complaints. Initially, the fund was marketed with an emphasis on stable rental income over five years, but a surge in global interest rates and a downturn in the European commercial real estate market led to failed asset sales and ultimately resulted in total investment losses.The total loss from this fund amounts to approximately 90 billion won, with Korea Investment & Securities accounting for about 58.9 billion won of that. Following the complete loss of the fund, the firm initially conducted voluntary compensation for only 458 out of 1,897 sales, which represented 24.1% of total sales, amounting to about 6.07 billion won. The remaining 1,439 cases were excluded from compensation.After discussions with investors, Korea Investment & Securities changed its policy to provide blanket compensation for all investors. The compensation rate was reportedly adjusted based on individual sales processes and investment preferences, ranging from 40% to 80%. The total compensation amount is approximately 29.5 billion won, which is about half of the sales amount for the fund. This represents a fivefold increase compared to the initial voluntary compensation decision.The significant expansion of the compensation scope by Korea Investment & Securities reflects a proactive response to the financial authorities' emphasis on enhancing consumer protection. Since the appointment of Lee Chan-jin as the head of the Financial Supervisory Service, there have been repeated calls to strengthen consumer protection for high-risk overseas alternative investment products. Lee publicly stated early in his tenure that if violations of internal controls related to improper sales are confirmed, the compensation standards for all disputes, including those already processed, could be readjusted. Additionally, the Financial Supervisory Service plans to mandate the submission of due diligence reports related to overseas real estate funds and establish standard guidelines for investment risks to significantly enhance investor protection.In line with this direction, Korea Investment & Securities has established a consumer protection task force directly under the president's office, strengthening its consumer protection system throughout the entire process from product development to sales and post-management. An industry official commented, "This is a measure taken in response to the need to restore investor trust and enhance financial consumer protection, especially as large securities firms are achieving record performances recently."* This article has been translated by AI. 2026-05-14 18:20:03 -
Socar Shares Surge for Second Day Amid Krafton's Autonomous Driving Investment Socar's stock has continued to rise for a second consecutive day. After hitting the upper limit the previous trading day, the shares showed a double-digit increase on the 14th, attracting significant market attention. According to the Korea Exchange, as of 10:25 a.m. on this day, Socar's shares were trading at 19,600 won, up 14.35% from the previous day. The stock had closed at 17,140 won, marking a 29.95% increase the day before. The surge in stock price is attributed to news of a strategic investment from Krafton. Krafton announced it would invest 65 billion won in Socar's autonomous driving business. Socar is reportedly planning to establish a new autonomous driving subsidiary, 'Apex Mobility,' with an investment of 150 billion won. Market analysts are noting that this investment could enable Socar to expand beyond a simple vehicle-sharing platform into a mobility company focused on autonomous driving and physical AI. Krafton is also seen as broadening its business scope from game development to include AI and mobility data. Socar has reported a profit for seven consecutive quarters. In its first-quarter report released on this day, the company disclosed a consolidated operating profit of 1.38834 billion won, a 1.8% decrease compared to the same period last year. * This article has been translated by AI. 2026-05-14 11:46:16 -
SK Hynix Surpasses 2 Million Won in Pre-Market Trading as KOSPI Attempts to Break 8000 The KOSPI index is attempting to break the 8000 mark after rebounding in a single day, with Samsung Electronics and SK Hynix showing strong performance in early trading. According to NextTrade, as of 8:32 a.m. on May 14, Samsung Electronics was trading at 286,500 won, up 2,500 won (0.88%) from the previous trading day. At the same time, SK Hynix recorded a rise of 19,000 won (0.96%), reaching 1,995,000 won, even surpassing 2 million won in pre-market trading. This surge appears to be influenced by the strong performance of semiconductor stocks on the New York Stock Exchange, which closed higher on May 13, local time. The S&P 500 index finished up 43.29 points (0.58%) at 7,444.25, while the tech-heavy Nasdaq Composite rose by 314.14 points (1.20%) to close at 26,402.34. Samsung Electronics and SK Hynix have been experiencing record highs recently, driven by growing demand for high-bandwidth memory (HBM) in AI applications. Analysts believe that the ongoing expansion of AI investments will likely sustain a bullish trend in the semiconductor sector for the foreseeable future. Despite a breakdown in labor negotiations leading to an impending strike announced by the union, Samsung Electronics continues to see an upward trend. The previous day, the KOSPI managed to hold above the 7800 level despite foreign selling, and it is expected to attempt to break through 8000 today. * This article has been translated by AI. 2026-05-14 08:55:47 -
Kyobo Securities Upgrades NCSoft's Target Price Amid Strong Game Performance Kyobo Securities maintained its "buy" rating on NCSoft on May 14 and raised its target price from 340,000 won to 375,000 won. Analyst Kim Dong-woo noted that NCSoft's first-quarter revenue reached 557.4 billion won, with an operating profit of 113.3 billion won, exceeding market expectations. He attributed this success to the strong performance of Aion 2 and Lineage Classic. Aion 2 generated 136.8 billion won in revenue, reflecting some carryover from the previous quarter and robust traffic. Lineage Classic, which launched in February, recorded 108.8 billion won in operating revenue, although some sales were deferred to the second quarter, resulting in an accounting revenue of 83.5 billion won. In the mobile MMORPG sector, Lineage M saw a 7.9% increase in revenue compared to the previous quarter, maintaining a solid trend. However, declines in revenue from Lineage W and Lineage 2M led to total mobile MMO revenue of 182.8 billion won. The casual gaming segment, boosted by contributions from Springcoms and Lihuhu, totaled 35.5 billion won. Kim stated, "NC has successfully continued the success of Aion 2 and Lineage Classic within the MMORPG genre, which retains its originality. The global version of Aion 2 is also scheduled for release in the third quarter." He added that NC is diversifying its portfolio through the acquisition of Lihuhu, Springcoms, and JustPlay, moving away from a structure that previously saw significant volatility based on a few major new releases. Notably, JustPlay has established differentiated competitiveness in casual ad tech, leveraging first-party data for user acquisition marketing. Kyobo Securities projects NCSoft's revenue for the year to reach 2.48 trillion won, with an operating profit of 494.8 billion won. The increase in the target price reflects upward revisions in revenue estimates for Lineage Classic and Aion 2, as well as a decrease in payment commission rates, leading to an 11.8% increase in the estimated net profit for the year.* This article has been translated by AI. 2026-05-14 08:30:50 -
KOSPI Hits Record High Amid Semiconductor Surge, Deepening 'K-Shaped' Market The KOSPI has once again reached an all-time high, driven by a rally in major semiconductor stocks, particularly Samsung Electronics and SK Hynix, as the index approaches the 7,900 mark. However, the surge is concentrated on these two large-cap semiconductor companies, exacerbating the 'K-shaped' market phenomenon where performance varies significantly among different sectors. On this day, the KOSPI closed at 7,822.24, marking a record high with an increase of 324.24 points (4.32%) from the previous trading day, which closed at 7,498.00. The index has surged over 54% since the end of March, when it stood at 5,052.46. Compared to the closing figure of 4,214.17 at the end of last year, the KOSPI has risen by 85.62% this year. Market analysts are optimistic, with domestic brokerages suggesting that the KOSPI could surpass 8,000 and even reach 9,000. Foreign investment bank JP Morgan has projected that the index could exceed 10,000. The recent upward trend is largely attributed to the semiconductor sector. On this day, Samsung Electronics and SK Hynix saw their shares rise by 6% and 13%, respectively, fueled by growing expectations for increased demand for AI semiconductors. However, the concentration of gains in the semiconductor sector raises concerns. The recent rise in the domestic stock market has increasingly focused on Samsung Electronics and SK Hynix. On this day, the combined market capitalization of Samsung Electronics (including preferred shares), SK Hynix, and SK Square accounted for 52% of the KOSPI's total market cap. Among the 34 KRX indices calculated by the Korea Exchange, all nine indices with the highest recent gains included Samsung Electronics and SK Hynix. The semiconductor index topped the list with a 22.98% increase, followed by the value-up index at 22.16%. The average increase for indices that included these two stocks was 19.45%, while the average for other indices without them was only 0.27%. This indicates a market where returns are heavily influenced by the inclusion of major semiconductor stocks. The trend of concentration is also evident in trading volumes. The average daily trading volume of the KOSPI this month reached 48.4982 trillion won, a 64.1% increase from last month's 29.555 trillion won. In contrast, the average daily trading volume decreased from 947.18 million shares to 773.96 million shares, reflecting a decline in the number of traded stocks but a surge in trading volume for specific large-cap stocks. So far this month, the average daily trading volume for Samsung Electronics and SK Hynix combined has reached 74.5353 trillion won, accounting for 37% of the total KOSPI trading volume. Including Samsung Electronics' preferred shares and SK Square, the combined share of these four stocks rises to 42%, up from 34.6% last month, indicating a deepening concentration trend. Market experts believe there is still potential for further KOSPI gains. Analysts suggest that while the current concentration in the semiconductor sector may continue for some time, there is also a possibility that market momentum could gradually spread to other sectors. Kim Jong-min, a researcher at Samsung Securities, noted in a recent report, "Behind the explosive rise lies extreme polarization in returns. In the future, we are likely to see a rotation of investments toward semiconductor materials, alternative energy, and physical AI beneficiaries." He added, "A gradual rotation following extreme concentration could serve as a stepping stone for the KOSPI's resurgence."* This article has been translated by AI. 2026-05-11 16:59:49 -
SK Hynix Hits 1.9 Million Won as Samsung Electronics Surges 7% SK Hynix reached a record high of 1.9 million won during trading, driven by strong demand expectations for artificial intelligence (AI) semiconductors, attracting significant foreign and institutional investment. According to the Korea Exchange, as of 10:58 a.m. on May 11, SK Hynix shares rose by 209,000 won (12.40%) to 1,895,000 won. The stock briefly touched the 1.9 million won mark, setting a new all-time high. Its market capitalization surged to approximately 1,350.57 trillion won. Market analysts suggest that ongoing investments in high-bandwidth memory (HBM) for AI semiconductors are fueling optimism about earnings. The competition among global tech giants to invest in AI infrastructure has led to increased buying interest in SK Hynix, a key player in Nvidia's supply chain. Investor sentiment also spread across major semiconductor stocks. At the same time, Samsung Electronics saw its shares rise by 7.26% to 288,000 won, with a market capitalization estimated at 1,683.73 trillion won. The combined market capitalization of Samsung Electronics and SK Hynix reached approximately 3,034 trillion won, highlighting their significant role in driving the domestic stock market's upward trend. Additionally, the day's gains appear to be influenced by the recent rise in the New York stock market over the weekend, driven by optimism surrounding a potential resolution to ongoing negotiations and better-than-expected employment figures. Last weekend, the tech-heavy Nasdaq index closed up 440.88 points (1.71%) at 26,247.08.* This article has been translated by AI. 2026-05-11 11:15:42 -
Samsung Electronics and SK Hynix Surge Ahead in Pre-Market Trading On May 11, Samsung Electronics and SK Hynix, the two leading companies in the South Korean stock market, saw their shares rise sharply in pre-market trading, with increases of 6% to 7%, continuing their trend of hitting record highs. According to Next Trade, as of 8:06 a.m., Samsung Electronics was trading at 285,500 won, up 17,000 won (6.33%) from the previous trading day, bringing its market capitalization to approximately 1,669 trillion won. At the same time, SK Hynix's shares surged by 11,800 won (7.00%) to reach 1,804,000 won, with a market capitalization of around 1,285 trillion won. Combined, the market capitalizations of the two companies approached 2,954 trillion won. The strong buying interest in these semiconductor giants has heightened expectations for further gains in the KOSPI index. Market analysts attribute the rising stock prices of Samsung Electronics and SK Hynix to increased demand for high-bandwidth memory (HBM) and improving conditions in the memory chip sector. Notably, foreign investors and leveraged funds have concentrated their investments in these semiconductor leaders, intensifying the trend of trading volume being dominated by Samsung Electronics and SK Hynix. Additionally, the upward momentum in the stock prices appears to be influenced by the recent gains in the New York stock market over the weekend, driven by optimism surrounding a potential resolution to ongoing negotiations and better-than-expected employment data. The Dow Jones Industrial Average closed up 12.19 points (0.02%) at 49,609.16. The S&P 500 index rose by 61.82 points (0.84%) to finish at 7,398.93, while the tech-heavy Nasdaq composite gained 440.88 points (1.71%) to close at 26,247.08.* This article has been translated by AI. 2026-05-11 08:15:29
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Shinhan Securities Raises Lotte Wellfood's Target Price by 14% Amid Overseas Growth Shinhan Investment Corp. announced on May 11 that it has raised its target price for Lotte Wellfood from 140,000 won to 160,000 won, an increase of 14%, while maintaining its investment rating at 'Buy.' This adjustment is attributed to the company's improving performance driven by growth in overseas sales and cost efficiency in South Korea. Analyst Jo Sang-hoon from Shinhan Investment noted, "Despite ongoing cost pressures, Lotte Wellfood achieved surprising results in the first quarter due to increased domestic efficiency and rising overseas sales. It is particularly important to focus on the recovery of growth in overseas markets, especially in India and Kazakhstan." In the first quarter of this year, Lotte Wellfood reported consolidated sales of 1.027 trillion won, a 5.4% increase compared to the same period last year, while operating profit surged by 118.4% to 35.8 billion won, exceeding market consensus by 47%. Jo explained that domestic profitability improved significantly due to efforts to streamline low-margin SKUs and channels, enhance purchasing efficiency, and improve logistics. He added that overseas sales showed broad growth across all regions, driven by increased sales volume and price hikes. Looking ahead, Jo anticipates a reduction in cocoa price pressures. He stated, "Cocoa prices, which exceeded $10,000 per ton in the first half of last year, have dropped to around $3,200 this year. By the end of the second quarter, we expect the effects of improved margin spreads to be fully reflected in the results." He also expressed optimism about the company's operations in India, noting, "Following the merger of the frozen and dry food divisions last year, we expect synergy effects and increased efficiency. This will lead to expanded regional coverage and a strengthened Lotte brand image." Shinhan Investment forecasts that Lotte Wellfood's Indian subsidiary will achieve an average annual growth rate of 23% over the past five years, with a projected increase of 13.1% this year. The frozen food segment is expected to grow by 13.2%, while the dry food segment is anticipated to grow by 12.9%. 2026-05-11 07:57:18 -
Investors Split Strategies Amid Record KOSPI Surge and Derivative Trading Amid a record-breaking bull market, investors are divided in their strategies. As the KOSPI continues to hit all-time highs, funds in derivative trading accounts, margin trading balances, and investor deposits have surged to unprecedented levels, indicating a significant increase in long positions. Conversely, the amount of funds set aside for short selling has also reached record highs, reflecting a growing interest in short positions in anticipation of a market correction following the recent surge. According to the Korea Financial Investment Association, as of May 7, the balance of funds in derivative trading accounts reached 38.2567 trillion won, marking an all-time high. This represents an increase of over 6 trillion won compared to the previous week’s figure of 32.2335 trillion won on April 30. Compared to the 18.3986 trillion won recorded on the first trading day of the year, January 2, this amount has more than doubled in just four months. Funds in derivative trading accounts are reserved for investments in exchange-traded derivatives such as KOSPI 200 futures and options. Due to their higher volatility and frequent use of leverage, these funds are typically seen as indicators of aggressive investor sentiment. Analysts suggest that the recent sharp rise in the KOSPI has led to a significant influx of capital into the derivatives market as investors bet on further gains. The scale of margin trading, or borrowing to invest, is also nearing risky levels. The balance of margin trading loans surpassed 36 trillion won for the first time at the end of April and has remained around 35 trillion won since then. Margin trading represents the amount borrowed by investors from brokerage firms to invest in stocks, and it tends to increase rapidly when bullish sentiment is strong. Additionally, investor deposits, which serve as market liquidity, reached a record high of 137 trillion won on May 7, indicating a substantial increase in available capital for investment. However, concerns are growing regarding the relatively weak risk management capabilities of individual investors. Data shows that individual investors have incurred losses amounting to billions of won annually in derivative trading from 2020 to 2024. While high volatility and leverage can lead to significant profits in a rising market, they can also result in rapid losses if market conditions shift. At the same time, there is an increasing caution among market participants regarding potential volatility following the recent surge. The balance of funds set aside for short selling has recently surpassed 180 trillion won for the first time. As the stock market remains bullish, both long and short positions are being established as investors prepare for potential corrections after reaching new highs. Market analysts believe that corporate earnings will be a key factor in determining whether the KOSPI can continue its upward trajectory. Lee Kyung-min, a researcher at Daishin Securities, stated, "As long as the upward trend in leading earnings per share (EPS) remains intact, the likelihood of continued gains is high. We should keep the possibility of further increases open rather than hastily limiting the KOSPI's upside potential."* This article has been translated by AI. 2026-05-11 03:16:34 -
South Korea's Stock Market Surpasses Canada, Ranks Seventh Globally South Korea's stock market has risen to the seventh largest in the world by market capitalization, surpassing Canada. Just ten days after overtaking the UK for eighth place, the KOSPI index has climbed significantly, driven by gains from semiconductor giants Samsung Electronics and SK Hynix. According to Bloomberg, as of June 6, South Korea's market capitalization reached approximately $4.59 trillion, edging past Canada's $4.5 trillion. On April 27, the market capitalization was recorded at $4.04 trillion, allowing South Korea to surpass the UK. Only six countries now have larger market capitalizations than South Korea: the United States ($77.08 trillion), China ($15.27 trillion), Japan ($8.33 trillion), Hong Kong ($7.47 trillion), India ($5.1 trillion), and Taiwan ($4.67 trillion). The KOSPI index has surged 77.7% this year, exceeding last year's impressive growth of 75.5%. This marks the first time since the 1980s that the KOSPI has seen back-to-back years of over 70% growth. The surge in the KOSPI is largely attributed to the semiconductor sector. Since mid-April, Samsung Electronics and SK Hynix have consistently reached record highs, boosting the overall market capitalization. Expectations for further ranking improvements are rising. The KOSPI jumped 5.12% on May 4 and 6.45% on June 6, closing at a new high of 7,490.05. Samsung Electronics rose 2.07% to 271,500 won, while SK Hynix increased by 3.31% to 1,654,000 won. Together, these companies account for 45% of the KOSPI's total market capitalization, valued at 1,587 trillion won and 1,179 trillion won, respectively. Han Ji-young, a researcher at Kiwoom Securities, noted, "The pace of profit improvement is significantly outpacing stock price increases. The consensus for KOSPI's operating profit in 2026 is projected at 124.2%, exceeding the expected stock price growth during the same period." She added that with foreign investors recording net purchases of 6 trillion won since May, the momentum for further gains in the KOSPI, particularly in leading sectors like semiconductors, remains strong.* This article has been translated by AI. 2026-05-07 23:14:11