Journalist
SHIN DONGKUN
sdk6425@ajunews.com
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More Big Brokerages Adopt Co-CEO Structures as Businesses Diversify More securities firms in South Korea are adopting a co-CEO structure, particularly among large brokerages, as their scale and business lines expand. The shift reflects broader diversification into areas such as comprehensive investment services and investment banking, with companies splitting accountability by division. As of April 30, three firms have adopted co-CEO structures: Mirae Asset Securities, KB Securities and Meritz Securities, according to the financial investment industry. Mirae Asset Securities has operated under a co-CEO system since 2023, with CEO Kim Miseop overseeing global and IB operations and CEO Heo Seonho leading wealth management and retail. The company has since posted broadly balanced growth across major businesses including WM, global, IB and trading. KB Securities, operating with separate CEOs for IB and WM, has produced results strong enough to enter the annual operating profit “1 trillion won club.” Meritz Securities, after adopting a two-top structure led by Jang Wonjae and Kim Jongmin in 2024, increased its contribution to parent Meritz Financial Group from 19% to 28%. More recently, NH Investment & Securities has moved to switch to a co-CEO structure, citing a larger organization and a more complex business structure following its entry into the IMA (comprehensive investment account) business. NH Investment & Securities in March became the third brokerage to receive approval for the IMA business. After the approval, it launched its first product and has been expanding its asset management business in earnest. The company said the co-CEO structure will run key business units under a system of accountable management and strengthen its mid- to long-term growth base by linking growth in client assets with investment finance capabilities. “As the scope of business widens and the scale of assets under management grows, the weight and complexity of management decisions also increase,” a company official said, calling the shift “a strategic choice to raise the company’s competitiveness and accountable management system by another level” as capital markets grow. Industry officials say the spread of co-CEO structures is being driven by the sharp expansion in brokerages’ size and business scope. The securities business has become too complex to manage under a single standard. Investment banking depends on speed in sourcing deals and executing investments, while wealth management focuses on maintaining a client base and managing stable returns. Under a single-CEO structure, managing businesses with different characteristics can lead to delayed decisions or concentrated risk, the industry says. By contrast, a co-CEO structure separates decision-making authority by division to increase speed, while each CEO bears individual responsibility for the area in charge. Officials say the approach can also improve risk controls and management transparency. * This article has been translated by AI. 2026-04-30 08:00:18 -
KOSPI Hits Record 6,690.90 for Third Straight Session Despite OpenAI Jitters South Korean stocks pushed to fresh highs for a third straight session, shaking off overnight weakness on Wall Street tied to concerns about OpenAI and the pace of artificial intelligence growth. The benchmark KOSPI closed at 6,690.90, setting another all-time high, according to the financial investment industry on April 29. In the main board market, individual investors bought a net 167.4 billion won, and institutions were net buyers of 477.7 billion won. Foreign investors sold a net 613.6 billion won, taking profits. U.S. stocks fell overnight, led by technology shares, as uncertainty around OpenAI weighed on sentiment. Reports said OpenAI failed to meet internal targets ahead of a planned initial public offering, and investors also raised concerns that slower revenue growth could make it harder to cover AI data center costs. OpenAI said its business was operating normally, but the comments did not fully ease market worries. AI-related shares were hit. Nvidia fell 1.6%, while Oracle and CoreWeave, key cloud partners for OpenAI, slid 4.1% and 5.8%, respectively. The Philadelphia Semiconductor Index dropped 3.58%. South Korean shares also came under pressure early. Samsung Electronics and SK hynix fell 1.13% and 1.23% at the open, and the KOSPI started the session down 0.33% at 6,619.00. Buying demand picked up later, lifting the index into positive territory. Lee Kyung-min, an analyst at Daishin Securities, said, “Despite OpenAI-related concerns, Samsung Electronics maintained a solid price trend, keeping the KOSPI strong.” Brokerages at home and abroad have been increasingly vocal about expectations for the index to reach 7,000. Hana Securities projected the KOSPI’s upper range in the second half at 7,540 to 8,470 depending on scenarios. Goldman Sachs set a 12-month target of 8,000, and JPMorgan left room for as high as 8,500. Japan’s Nomura Securities also set a first-half target of up to 8,000. Some analysts, however, warned of a pullback after a sharp run-up. The KOSPI has surged more than about 30% in April, quickly building technical 부담. May is often seen as seasonally weak under the “Sell in May” pattern, which could strengthen a wait-and-see stance among investors. Byun Jun-ho, an analyst at IBK Investment & Securities, said, “The KOSPI’s monthly gain in April is around 31%, the biggest surge since January 1998,” adding, “The market is nearing, or has already entered, a 부담 zone, and short-term profit-taking demand could grow.” 2026-04-29 17:15:23 -
Korea short-selling hits record high, but top 10 most-shorted stocks all rise South Korea’s stock market rally has pushed past the downward pressure typically associated with short selling. Even as short positions surged during the recent run-up, share prices in heavily shorted names continued to climb. According to the Korea Exchange on the 29th, net short-selling balances stood at 3.05 billion shares as of the 24th, holding near a record high. The balance was 2.95 billion shares on the 22nd, then rose by about 100 million shares in a single day on the 23rd and remained at that level through the 24th. Short-selling balances accounted for 0.47% of listed shares, the highest level since short selling resumed in March last year. Net short-selling balances refer to shares sold short that have not yet been repurchased and returned. A rising balance indicates more investors are positioning for a decline, even as the KOSPI has posted an unusually strong advance. The increase is being viewed as a natural response to the sharp market jump, reflecting both profit-taking short positions and higher hedging demand from institutions and foreign investors. Short selling typically weighs on prices, but recently many of the most-shorted stocks have risen alongside the broader market, suggesting demand has been strong enough to absorb that pressure. All of the top 10 stocks by short-selling value this month (April 1-28) gained. Samsung Electronics, No. 1 at 4.5918 trillion won in short-selling value, rose 17% to 222,000 won from 189,600 won. SK hynix, No. 2, climbed 46% to 1.3 million won from 893,000 won. HD Hyundai Heavy Industries, No. 3, surged about 48% to 667,000 won from 451,500 won even though short sales accounted for 31.3% of trading during the period. Hyundai Motor, No. 4, rose about 14%, and Hanmi Semiconductor gained 34%. Analysts attributed the resilience to strong expectations for earnings improvement across key sectors such as semiconductors, shipbuilding and autos, which helped offset selling pressure. Short covering — buying shares to close short positions — also appeared to amplify gains. The financial investment industry expects solid growth momentum in major sectors to continue. Yang Seung-yoon, a researcher at Eugene Investment & Securities, said HD Hyundai Heavy Industries disclosed a supply contract for land-based power-generation engines for a data center in Texas, adding that “physical systems are not keeping up with the speed of the AI revolution.” Lee Jeong-bin, a researcher at Shinhan Investment Corp., said, “Semiconductors’ 12-month forward operating profit is 599 trillion won, and their share within the KOSPI reaches about 68%,” adding, “It’s not just the direction of profit growth — the level itself has moved higher.” Lee Sang-su, a researcher at iM Securities, said the roadmap that supported higher valuation multiples for domestic automakers — including SDV, autonomous driving and synergy with Boston Dynamics — “remains valid.”* This article has been translated by AI. 2026-04-29 15:26:43 -
Hyundai Steel Extends Rally to Five Sessions on Steel Price Rebound, China Output Cut Hopes Hyundai Steel extended its gains for a fifth straight session in early trading, supported by a rebound in steel prices and expectations of higher product prices. As of 10:25 a.m. on April 29, Hyundai Steel shares were trading at 45,950 won, up 1,850 won, or 4.20%, from the previous session. The stock has risen for five consecutive sessions since April 23, gaining more than 10% over that period. The advance was attributed to growing expectations for an industry upturn as China, the world’s largest steel producer, has recently reduced output. According to the World Steel Association, China’s crude steel production last month totaled 87 million tons, down 6.3% from 92.8 million tons a year earlier. China has signaled output cuts, citing carbon-emissions reductions and industrial restructuring. Market participants say that if China-driven supply tightening continues, steel prices could firm further and lift earnings expectations for South Korean steelmakers. Global steel price trends have also been supportive, analysts said, as easing geopolitical risks in the Middle East, expectations for steadier interest rates and a weaker dollar have reduced some pressure on the sector. Brokerages are also focusing on the possibility of near-term earnings improvement. Kim Yun-sang, an analyst at iM Securities, said inflation and high interest rates remain a burden, but recent steel price moves and stabilizing macroeconomic variables are a positive shift. He added that while the price rise is partly tied to supply disruptions, higher prices themselves are supportive for earnings. * This article has been translated by AI. 2026-04-29 10:35:32 -
FSS chief’s expense account disclosed for first time; averaged 2.09 million won a month over 8 months Details of official expenses used by Financial Supervisory Service Gov. Lee Chan-jin since taking office have been disclosed for the first time, with most spending tied to discussions on supervisory issues, staff encouragement and media briefings. According to financial authorities on the 29th, the FSS posted the governor’s expense-account records on its website the previous day. The disclosure covers eight months of spending from August last year, when Lee took office, through March this year. Total spending during the period was 16,677,500 won across 76 transactions, averaging about 2.09 million won a month. Monthly totals were 1,621,100 won in August 2025; 2,167,000 won in September; 1,629,000 won in October; 2,336,600 won in November; 2,068,400 won in December; 2,268,300 won in January 2026; 2,204,100 won in February; and 2,383,000 won in March. Most expenses were incurred at restaurants around Yeongdeungpo-gu in Seoul, where the FSS headquarters is located. By purpose, work-related meetings accounted for a large share, including discussions on key supervisory issues and work plans and sharing difficulties by division. Other items included staff encouragement, meetings with news organizations, consultations with related agencies, and condolence or congratulatory payments. The disclosure follows Lee’s pledge during a National Assembly Legislation and Judiciary Committee audit in October last year. After criticism over how the FSS exercises its authority, he said he would improve transparency in the use of official expenses. Separately, official expenses used under the previous FSS governor from January through May last year totaled 12.10 million won, averaging 2.42 million won a month: 2.37 million won in January, 2.55 million won in February, 1.82 million won in March, 2.45 million won in April and 2.89 million won in May. 2026-04-29 09:40:16 -
Kyobo Securities Raises Samsung SDI Target to 880,000 Won After Q1 Beat Kyobo Securities on Tuesday raised its target price for Samsung SDI to 880,000 won and maintained a “buy” rating, citing first-quarter results that beat market expectations by a wide margin. Choi Bo-young, a researcher at Kyobo Securities, said Samsung SDI posted consolidated first-quarter revenue of 3.5764 trillion won, up 12.6% from a year earlier. The company reported an operating loss of 155.6 billion won, a sharp improvement from the consensus estimate of an operating loss of 280.9 billion won, Choi said. Kyobo attributed the surprise to expanding battery demand tied to artificial intelligence data centers, improved performance in the energy storage system, or ESS, business, and the reflection of customer compensation payments. Choi said losses narrowed more than expected as demand strengthened for battery backup units, or BBUs, for AI data centers and for high-output cylindrical batteries used in power tools in the small-battery division. He added that in the ESS division, increased shipments of high value-added uninterruptible power supply, or UPS, products for data centers supported results, and compensation related to volumes from a North American customer also helped profitability. On the UPS segment, Choi said the market remains limited in size but growth visibility is improving quickly, with proactive steps underway such as converting a UPS line at the Ulsan plant. He forecast that because global competitors are limited in the high-output small BBU segment, Samsung SDI’s market share could expand faster than overall market growth.* This article has been translated by AI. 2026-04-29 08:30:16 -
KOSPI Hits Record High, South Korea Rises to No. 8 in Global Market Value ◆ Ajou Economy Top News ▷ Foreign and institutional investors flip from selling to buying; retail investors post record net selling of 14 trillion won - South Korea’s stock market, lifted by strength in AI-related semiconductor shares, moved ahead of the U.K. to rank eighth globally by market capitalization. - The KOSPI closed at 6,641.02, setting another all-time high after briefly topping 6,700 during the session. - Total market capitalization in South Korea rose to about 6,116 trillion won, up 53% from the end of last year. - Some brokerages cited the AI semiconductor-led rally and policy momentum in projecting the KOSPI could reach 7,000 to 8,000. ◆ Key Report ▷ Heungkuk Securities: Hyundai Steel outlook improves; target price raised - Heungkuk Securities kept its “buy” rating on Hyundai Steel and raised its target price to 55,000 won. - The company’s first-quarter results missed expectations, with revenue of 5.7397 trillion won and operating profit of 15.7 billion won, but higher sales volume confirmed a recovery in demand. - The brokerage said improved steel scrap prices, subsidiary performance and one-off gains helped cushion consolidated profitability. - It forecast results would continue improving from the second quarter, reflecting higher prices in China, better supply-demand conditions and the impact of price increases. ◆ Major filings after the close (28th) ▷ CrowdWorks: 1 billion won paid-in capital increase ▷ Aptochrom: 12 billion won paid-in capital increase ▷ GemVax: additional purchase of Korea Stem Cell Bank shares worth 12.4 billion won ▷ KBI Metal: acquisition of Wonyoung Hitech shares, raising stake to 100% ▷ SK Bioscience: share buyback worth 17.1 billion won ▷ NC: provides 21.8 billion won worth of treasury shares to employees ◆ Fund flows (as of the 27th, excluding ETFs) Domestic equity funds: 132 billion won Overseas equity funds: -5.7 billion won ◆ Key events today (Wed.) Eurozone: M3 (March), corporate loans (March), consumer confidence (April) United States: durable goods orders (March), housing starts and permits (March), remarks by Federal Reserve Chair Powell * This article has been translated by AI. 2026-04-29 06:54:24 -
Korea’s March Public Offerings Rise 3.8% as Short-Term and Structured Finance Lead Public offerings expanded across equities, corporate bonds and short-term funding in March, but the mix tilted further toward short-term and structured financing rather than long-term funding. According to the Financial Supervisory Service’s report released on the 29th on companies’ direct financing results for March 2026, total public issuance came to 19.9832 trillion won, up 3.8% from the previous month. Public issuance of equities and corporate bonds combined rose by 733.5 billion won from a month earlier. Equity issuance totaled 440.2 billion won, up 28.9%. Initial public offerings raised 210.4 billion won, down 27.6%, while paid-in capital increases surged 353.3% to 229.8 billion won, driving the overall gain. The number of IPOs increased, but the amount raised fell, while rights offerings emerged as the main funding channel. Corporate bond issuance totaled 19.5430 trillion won, up 3.4%, though components moved in different directions. Straight corporate bonds fell 6.5% to 4.7810 trillion won. Financial bonds and asset-backed securities increased, lifting the overall total. ABS issuance jumped 208.7% from the previous month to 1.3196 trillion won. The March market was marked by weaker long-term issuance and stronger structured and short-term funding. For straight corporate bonds, refinancing accounted for 85.6% of issuance, indicating companies largely rolled over existing debt rather than funding new investment. Issuance also concentrated in higher-rated paper, with 98.5% rated A or above. In the ABS market, structured financing expanded rapidly. P-CBO issuance surged 3,166.3%, and issuance backed by financial companies’ underlying assets rose 1,269.5%, pointing to growing use of credit-enhanced structures rather than plain-vanilla bond sales. Short-term markets grew even faster. Combined issuance of commercial paper and short-term bonds reached 200.4738 trillion won, up 25.6%. CP issuance rose 23.5% and short-term bonds increased 26.3%, underscoring a shift in funding strategy toward shorter maturities. Kim Eun-gi, an analyst at Samsung Securities, said April is a heavy redemption period, with 10.7 trillion won of straight corporate bonds maturing, excluding the first quarter. “Even so, corporate bond issuance yields are forming at levels higher than in February, when net redemptions were large, and as the U.S.-Iran situation drags on, volatility in government bond yields is also increasing, creating an atmosphere in which companies are delaying corporate bond issuance,” he said. He added that, unlike past crisis periods, CP yields are staying low, keeping short-term funding conditions favorable. “As the rate advantage of CP and CD over corporate bond yields has grown, companies are likely to make up funding shortfalls from net corporate bond redemptions with CP or bank loans,” Kim said.* This article has been translated by AI. 2026-04-29 06:46:36 -
KOSPI Sets Another Record as Chip Stocks Drive Rally; How Long Can It Last? The KOSPI’s run of record highs shows little sign of slowing, with some market watchers saying the index could even push past 7,000 in short order if the trend holds. The rally has been led by semiconductors, as gains in Samsung Electronics and SK hynix — together accounting for more than 40% of total market value — have amplified the index’s rise. Analysts say how long the rally lasts will largely depend on the semiconductor cycle. Optimists argue that an AI-driven “super cycle” could extend for a prolonged period, supporting further gains. Others warn that if the cycle turns down as it has in the past, the market could face a sharp correction. ◆ Semiconductors power the rally Aju Economy compared the KOSPI and the KRX Semiconductor Index over the past year (April 28, 2025, to April 28, 2026; 244 trading days) and found they moved in the same direction on 191 days, or 78.3% of the period. On April 28, the KOSPI rose 0.86% while the KRX Semiconductor Index fell 0.45%. The link was stronger on up days. Both indexes rose on 132 days, more than double the 59 days when both fell, underscoring how the KOSPI tends to respond when chip stocks gain momentum. Days when the two diverged totaled 49, or 20.1%, including 26 days when the KOSPI rose but semiconductors fell and 23 days when the KOSPI fell but semiconductors rose. There were four days, or 1.7%, when one index was flat at 0.00%. The results highlight the sector’s outsized influence in South Korea’s market, where large chipmakers dominate the top of the market-cap rankings. As of April 28, Samsung Electronics (including preferred shares) accounted for 26% of the market and SK hynix for 17%. ◆ How long will the “super cycle” last? Analysts say the rally’s durability ultimately hinges on chip industry conditions. Since 2000, the semiconductor industry has typically swung between booms and downturns in cycles of three to four years. The most recent downturn was in 2022-2023, when demand for memory chips fell sharply and Samsung Electronics and SK hynix posted large losses. Their share prices were then stuck in the 50,000-won range for Samsung Electronics and the 70,000-won range for SK hynix. The turnaround began in the second half of last year, as the AI boom drove a surge in memory-chip demand and the market entered what is often called a “super cycle.” Research firm Omdia raised its forecast for this year’s semiconductor market growth to more than 60%, projecting rapid expansion in memory. It said demand for high-bandwidth memory, or HBM, is jumping as AI data centers spread, while supply remains tight — creating a market where rising prices, unlike in past cycles, are leading the upturn. Kim Dong-won, head of the research center at KB Securities, said AI data center and cloud companies are actively pursuing three- to five-year long-term supply agreements to secure stable memory supplies. “This trend will strengthen the durability of the semiconductor upcycle,” he said. Still, some warn of a pullback after the recent surge. BNK Investment & Securities said in a report on April 27 that memory conditions appear to be entering a late-cycle phase, raising the possibility that demand could soften. Overseas, Goldman Sachs and others have also voiced concerns about the pace of the short-term run-up. * This article has been translated by AI. 2026-04-28 18:27:21 -
South Korea’s KOSPI Hits Record Close as Market Cap Rises to World No. 8 South Korea’s stock market has overtaken the U.K. to rank eighth globally by market capitalization, driven by a semiconductor rally tied to artificial intelligence. The market’s value has more than doubled in about a year, and analysts say the ranking could rise further as the benchmark KOSPI nears the 7,000 level. <Related article, page 10> According to the Korea Exchange, the KOSPI on April 28 closed up 25.99 points, or 0.39%, at 6,641.02. It set another record high close after doing so the previous session. The index climbed as high as 6,712.73 intraday, briefly topping 6,700. With the rally continuing, total market capitalization for South Korea’s exchanges — KOSPI, KOSDAQ and KONEX combined — reached about 6,116 trillion won (about $4.16 trillion) at the close. That was up 53.4% from 3,986 trillion won on Dec. 30 last year. Bloomberg said South Korea’s market cap, based on closing prices, rose 45% from the start of the year through April 27. That pushed it past the U.K., which rose 3% over the same period to $3.99 trillion, placing South Korea eighth worldwide. As recently as 2024, the U.K. market was about twice the size of South Korea’s, but the gap reversed in a little over a year. The U.S. ranks first at $75.4004 trillion, followed by China (mainland), Japan, Hong Kong, India, Canada and Taiwan. From India in fifth to the U.K. in ninth, markets are clustered around $4 trillion, leaving room for further shifts if South Korean shares keep rising. Bloomberg cited heavy concentration in AI semiconductor-related stocks and policy momentum as key drivers. Samsung Electronics and SK hynix, the top two companies by market value in South Korea, led the rally as global money moved into AI-linked firms. Corporate governance reforms and pro-market policies also supported gains. The two companies account for more than 40% of the KOSPI’s total market capitalization. Major global investment banks and South Korean brokerages have forecast further gains, citing improving earnings at leading companies. Some projections extend beyond 7,000 to as high as 8,000. Hana Securities set a second-half KOSPI upper range of 7,540 to 8,470 depending on scenarios. Goldman Sachs set a 12-month KOSPI target of 8,000, and JPMorgan said it sees room up to 8,500. Japan’s Nomura Securities set a first-half target of up to 8,000. Lee Kyung-min, a researcher at Daishin Securities, said South Korea’s market rose to eighth globally on an intraday basis, adding that as rotation spreads into areas such as robotics and construction and the market enters earnings season, stock-by-stock divergence is becoming more pronounced. 2026-04-28 18:21:19