Korean retail investors ramp up US stock buying despite local rally SEOUL, January 27 (AJP) - South Korea’s stock market has rallied sharply this year, but retail investors are continuing to pour money into U.S. equities, a trend cited by policymakers as a key factor behind recent volatility in the won. Average daily settlement amounts for U.S. stocks by South Korean retail investors reached $261 million over 15 trading sessions from Jan. 2 to Jan. 23, according to data released on Tuesday by the Korea Securities Depository. That figure more than tripled from a daily average of $85 million in December and was roughly double the $185 million average recorded in January last year. Overseas equity investment, which briefly cooled late last year, appears to be accelerating again. Retail investors were net sellers of U.S. stocks on only two of the 15 trading days this month, compared with nine days of net selling out of 22 sessions in December, the data showed. Analysts said confidence in U.S. markets has remained resilient despite the domestic rally, while recent stabilization in the foreign-exchange market has supported investor sentiment. Some analysts said further buying of U.S. stocks could lie ahead, pointing to elevated foreign-currency deposits as evidence that investors have already secured dollar funds. According to the Bank of Korea, resident foreign-currency deposits at domestic foreign-exchange banks reached a record $119.43 billion at the end of last year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-27 16:04:28

Foreign investors' holdings of South Korean stocks hit highest level in nearly six years SEOUL, January 25 (AJP) - Foreign investors' share of stocks on South Korea’s benchmark KOSPI climbed to its highest level in five years and nine months in January, according to figures released by the Korea Exchange on Sunday. The total market capitalization of KOSPI‑listed companies stood at 3,759.72 trillion Korean won (roughly US$2.55 trillion) as of early this month, with foreign holdings valued at 1,398.03 trillion won, accounting for about 37.18 percent, the highest since April 2020. The surge was driven by strong buying in sectors such as shipbuilding, defense, and nuclear energy, following heavy purchases of chip-related stocks in the second half of last year. Foreign investors' buying spree, which began in September last year, pushed their share of KOSPI stocks to 35 percent by late October and 37 percent on Jan. 7, before dipping slightly to 36.85 percent a few weeks later. The KOSPI's strong rally at the start of the new year drove overall market capitalization sharply higher, with the index surpassing the historic 5,000-point milestone for the first time since the country's stock market began trading nearly 70 years ago. Market analysts attribute the foreign buying to expectations of large shipbuilding orders, while the surge in defense and nuclear energy stocks has to do with heightened geopolitical tensions surrounding Greenland following U.S. President Donald Trump's repeated threats to secure the Danish territory. South Korean stocks with the highest net buying by foreign investors during the first 23 days of this year were Hanwha Ocean, with 942.6 billion won, followed by Doosan Enerbility at 829.3 billion won. They also snapped up shares of Naver worth 529.8 billion won, HD Hyundai Heavy Industries worth 519.7 billion won, Celltrion worth 513.9 billion won, and Hanwha Aerospace worth 385.1 billion won. 2026-01-25 16:58:05

Korean retail investors pile into Samsung Electronics, margin trading hits record high SEOUL, January 11 (AJP) — South Korean retail investors are piling into Samsung Electronics, snapping up shares sold by foreign investors amid bullish expectations for a memory-chip upcycle driven by rapid adoption of artificial intelligence infrastructure, pushing leveraged trading to record levels. According to the Korea Exchange, individual investors net bought 2.915 trillion won ($2.0 billion) worth of Samsung Electronics shares last week, the largest weekly net purchase since the second week of September 2024. The buying spree coincided with profit-taking by foreign investors, who net sold 10.57 million common shares, equivalent to about 1.5 trillion won, at an average price of 138,000 won per share during the same period. Retail investors also rotated out of rival chipmaker SK hynix, net selling 167 billion won worth of its shares. The shift reflects growing preference for Samsung Electronics, whose earnings outlook has improved alongside broad-based strength in DRAM prices, while SK hynix remains more heavily exposed to high-bandwidth memory supplies for Nvidia. As retail demand surged, leveraged stock investment climbed to an all-time high. The outstanding margin loan balance for Samsung Electronics reached 1.977 trillion won as of Friday, the highest level on record, according to exchange data. The balance represents shares purchased with borrowed funds that have yet to be repaid, with increases signaling rising debt-funded investing. Samsung Electronics’ margin debt has increased for seven consecutive trading sessions, from Dec. 29 through Jan. 8. The surge in leveraged buying has been driven by expectations of stronger memory-chip demand tied to expanding AI investment, as well as renewed investor interest following the company’s fourth-quarter earnings announcement on Jan. 8. Samsung Electronics reported preliminary fourth-quarter operating profit of 20 trillion won, up 208.2 percent from a year earlier, marking its best-ever quarterly performance. On the day of the earnings release, individual investors net bought 985 billion won worth of the stock. Brokerages expect the uptrend in memory-chip prices to continue and see scope for earnings momentum to extend into this year, prompting a series of target price upgrades. According to financial data provider FnGuide, the average target price from at least three brokerages stood at 154,423 won as of Friday, up 17,654 won from the previous consensus. KB Securities raised its target price to 200,000 won. 2026-01-11 11:44:13

Foreign stock ownership in Korean stocks highest in nearly 6 years SEOUL, January 04 (AJP) -Foreign ownership of South Korean stocks climbed to its highest level in nearly six years by the end of December 2025, as global investors doubled down on an AI-driven memory-chip boom led by Samsung Electronics and SK hynix, while bond inflows accelerated ahead of South Korea’s inclusion in a major global sovereign bond index. According to the Korea Center for International Finance (KCIF) on Sunday, foreign ownership accounted for 32.9 percent of Korea’s total stock-market capitalization at the end of December, the highest level since April 2020. The Financial Supervisory Service previously reported foreign ownership at 31.5 percent in April 2020 and 29.6 percent at the end of November last year. The official end-December figure has yet to be released. Foreign investors’ net buying in the electrical and electronics sector reached 4.5 trillion won in December, exceeding overall foreign net buying of 3.5 trillion won, the KCIF said. By stock, SK hynix attracted 2.2 trillion won in net foreign inflows, while Samsung Electronics drew 1.4 trillion won. Foreign ownership of SK hynix rose to 53.8 percent at the end of December, up from 53.2 percent a month earlier, while Samsung Electronics edged up to 52.3 percent from 52.2 percent. The KCIF attributed the surge in equity inflows primarily to tight memory-chip supply and rising prices, which are lifting earnings expectations for Korean chipmakers amid the global AI investment cycle. Nomura recently forecast that commodity memory prices could rise another 20 to 30 percent this year, raising its estimates for annual operating profit by 21.5 percent for Samsung Electronics and 9.7 percent for SK hynix. The center also pointed to valuation differentials as a key driver of foreign inflows. While foreign investors were net sellers of Taiwanese stocks by $1.6 billion in December, they were net buyers of South Korean equities. Taiwan’s 12-month forward price-to-earnings ratio stands at around 17, above its 10-year average of 14.7, while the Kospi trades near 10, broadly in line with its long-term average, the KCIF said. Expectations for policies aimed at boosting corporate value, including a third revision to the Commercial Act and potential changes to dividend taxation, also supported investor sentiment. Foreign money flowed strongly into bonds as well. In December, foreigners made net investments of 8.8 trillion won in Korean bonds, lifting total foreign bond holdings to 339.3 trillion won, up from 329.5 trillion won at the end of November. Korea’s long-anticipated inclusion in the FTSE World Government Bond Index is set to begin in April 2026 and conclude in November 2026, with the weighting added in eight equal monthly steps. The inclusion had originally been scheduled to start in November 2025, but FTSE Russell postponed the timeline to 2026. The WGBI, compiled by FTSE Russell, is regarded as a benchmark “developed-market” sovereign bond index, with stringent criteria covering outstanding issuance, credit ratings and market accessibility. The Korean government expects WGBI inclusion to help attract advanced-economy capital, stabilize fiscal management, reduce government borrowing costs, and enhance financial-market stability and external credibility. The National Pension Service, the country’s largest institutional investor, has previously estimated that WGBI membership could draw at least $56 billion into South Korea’s financial markets. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-04 12:53:47

Korean debt issues tumble in Nov on concerns of borrowing rates going higher SEOUL, December 24 (AJP) -Equity offerings thrived while debt issuance shrank in South Korea in November, cutting direct financing by nearly 2 trillion won ($1.4 billion) and underscoring an unfavorable borrowing environment for Korean companies, data showed Wednesday. According to the Financial Supervisory Service, funds raised through stock and corporate bond issuance totaled 21.89 trillion won in November 2025, down 1.81 trillion won, or 7.6 percent, from the previous month. Direct financing refers to companies raising funds by issuing stocks or bonds without going through financial institutions. Funds raised through stock issuance jumped to 821.4 billion won, up 727.5 billion won, or 774.8 percent, from October. Initial public offerings totaled 14 deals worth 410.9 billion won, all small and midsize IPOs listed on the KOSDAQ. The average IPO size rose to 29.3 billion won from 26.2 billion won a month earlier. Rights offerings also increased, with seven deals worth 410.6 billion won, driven by greater fundraising for operating expenses and facility investment. By contrast, corporate bond issuance fell to 21.07 trillion won, down 2.54 trillion won, or 10.8 percent. Corporate debt issuance nearly halved to 1.96 trillion won, down 45 percent. Refinancing accounted for 55.7 percent of issuance, sharply lower than 72.7 percent in October, while the shares for operating and facility funding expanded to 22.1 percent and 22.2 percent, respectively. Issuance of financial bonds totaled 17.34 trillion won, down 893.7 billion won, or 4.9 percent. Issuance of financial holding company bonds and other financial bonds declined, while bank bond issuance rose 10.0 percent to 8.998 trillion won. Asset-backed securities issuance came to 1.78 trillion won, down 2.6 percent, although issuance of primary collateralized bond obligations (P-CBOs) aimed at supporting small and midsize firms increased. Issuance of commercial paper and short-term bonds surged, reflecting heightened market uncertainty over the trajectory of interest rates. Short-term bond issuance totaled 166.29 trillion won, up 28.65 trillion won, or 20.8 percent. Commercial paper edged up to 44.80 trillion won, while short-term bonds jumped 30.7 percent to 121.49 trillion won. As of the end of November, outstanding corporate bonds totaled 756.23 trillion won, up 6.18 trillion won from the previous month. Net issuance of general corporate bonds extended its upward trend for a second consecutive month. Separately, Asiana Airlines said Wednesday that it approved the issuance of 200 billion won in perpetual bonds to strengthen its capital base. The carrier said the move aims to improve its debt ratio and overall financial health, as the won-dollar exchange rate has surged since the first half of the year and high interest rates have persisted. Asiana said it recently received a one-notch credit-rating upgrade to BBB+, its first since 2015. The company attributed the upgrade to the removal of merger-related uncertainty following the sale of its cargo business in August, as well as to Korean Air’s full purchase of Asiana’s perpetual convertible bond refinancing in November. With the higher credit rating and improved outlook for integration, Asiana said it was able to issue perpetual bonds on its own credit, without credit enhancement, for the first time since 2019. It added that it will continue efforts to strengthen its financial health to support stable integration. 2025-12-24 07:27:00

South Korea's Mirae Industries signs $7.5 million chip equipment supply deal SEOUL, December 22 (AJP) - Mirae Industries, a South Korean manufacturer of semiconductor back-end process equipment, said on Monday it has signed an additional supply contract worth $7.5 million with Unimos Micro Electronics for semiconductor inspection equipment. In a regulatory filing, the company said the contract is equivalent to 37.7 percent of its 27 billion won in revenue recorded last year. Mirae Industries said the latest order reflects the results of its efforts to expand overseas markets and boost exports. A company official said the deal “once again proves our competitiveness in the global market,” adding that cumulative sales through the third quarter have already surpassed full-year 2024 revenue. 2025-12-22 15:20:40

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 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 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 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