Journalist

Shin Dong-kun
  • KOSPI Nears 7,400 as Analysts See Room for 8,000 to 9,000 on AI, Chip Boom
    KOSPI Nears 7,400 as Analysts See Room for 8,000 to 9,000 on AI, Chip Boom The KOSPI’s ceiling appeared to give way as the benchmark surged to just below 7,400. The index was up nearly 450 points from the previous session, extending a rally that has accelerated since it closed above 6,000 on Feb. 25. That move came about 50 trading days ago. Despite headwinds cited by the market — war in the Middle East, a weakening real economy and concerns about an AI bubble — brokerage research chiefs said the rally could continue into the second half, with some projecting the KOSPI could move beyond 8,000 and even approach 9,000. "KOSPI could go as high as 9,000" On the 6th, Ajou Economy conducted an emergency survey of research heads at seven brokerages: Korea Investment & Securities, NH Investment & Securities, Samsung Securities, Kiwoom Securities, Shinyoung Securities, Yuanta Securities and SangSangIn Securities. Several respondents said further upward revisions were likely, and some said a top-end scenario could reach 9,000. Choi Hyun-jae, head of research at Yuanta Securities, said, “Under the best-case scenario, there is room up to 8,100,” adding, “In terms of market capitalization, above 9,000 is also possible.” Yoon Seok-mo, head of research at Samsung Securities, said he raised his previous annual band top to 8,400 from 7,200, based on “a 12-month expected ROE of 19.6% and an appropriate P/B of 2.2 times.” Baek Young-chan, head of research at SangSangIn Securities, said he plans to raise his forecast from 7,540 and that 8,000 is possible, citing profit growth at Samsung Electronics and SK hynix as “the key driver.” Others said they also need to revisit forecasts after the unprecedented run-up. Lee Jong-hyeong, head of research at Kiwoom Securities, said that while the firm previously suggested a 5,200 to 7,300 range, “given the current price level and earnings momentum, an upward revision is needed,” adding that a trend in which semiconductor demand overwhelms supply “will continue for some time.” Yoo Jong-woo, head of research at Korea Investment & Securities, said the firm is presenting 7,250 as the upper end but could raise it further in the second half, explaining that rising EPS is driving the index higher. Kim Hak-kyun, head of research at Shinyoung Securities, said it is difficult to set a ceiling and argued the market remains undervalued. “This is a phase where the power of semiconductors is showing up dramatically,” he said, adding that the market is hard to view as a bubble. He said Samsung Electronics and SK hynix are trading at about six times earnings, while the overall KOSPI is below eight times. Kim said it is better to keep an open mind “until upward revisions to earnings estimates start to fade.” AI value chain and the power of semiconductors Research chiefs broadly pointed to AI and semiconductors as the main reasons they expect the rally to persist. They said the KOSPI is in a phase of restructuring its earnings base around AI and chips, prompting a reassessment of index levels. Cho Soo-hong, head of research at NH Investment & Securities, said, “More than the number itself, the AI cycle is key,” adding that the semiconductor industry is being reshaped from consumer-led demand to infrastructure-led demand. Choi said that next year Samsung Electronics could post the largest profit in the global semiconductor industry, adding that a profit structure “similar to Nvidia’s, or even higher,” is possible. Baek said the second-half outlook should consider conditions and Middle East variables, but added that next year the index could reach the mid-8,000s. For the second half, most respondents said leadership is likely to remain concentrated in the AI value chain centered on semiconductors. Some also cited brokerage and defense sectors as potential gainers. Lee said the AI value chain, along with power equipment, brokerages and defense, would lead. Choi said earnings estimates are barely rising outside semiconductors and IT, adding, “In a major uptrend, market leadership does not change.” He also cited power equipment, nuclear power and materials tied to data centers. Yoo said industrials such as energy, power machinery and robots, along with the AI value chain, are key. Yoon said that with global liquidity expanding, Samsung Securities is maintaining a preference for the AI value chain — including semiconductors, power equipment, nuclear power and robots — and also holds a positive view on industrials and financials. Baek cited solar power, secondary batteries, brokerages, construction and optical communications and fiber as leading groups. Cho said the rally is spreading from semiconductors to AI infrastructure, power equipment, nuclear power, defense and brokerages. * This article has been translated by AI. 2026-05-06 18:34:42
  • KOSPI Surges Past 7,000 as Semiconductor Rally Lifts Samsung, SK Hynix
    KOSPI Surges Past 7,000 as Semiconductor Rally Lifts Samsung, SK Hynix South Korea’s benchmark KOSPI has pushed above the 7,000 mark, about two months after breaking through 6,000. Compared with a year earlier, the index has nearly tripled in an unprecedented rally, prompting talk that the market has entered a new normal. Brokerage research chiefs said the momentum could carry the index to 9,000. According to the Korea Exchange, the KOSPI on the 6th closed at 7,384.56, up 447.57 points, or 6.45%, from the previous session. It extended record highs and at one point neared 7,500. The index stood at 2,573.80 on May 7 last year, meaning it has risen about 187% in a year. Semiconductors led the surge. Expectations for improved earnings at major chipmakers and upward revisions to profit forecasts boosted sentiment and spread gains across the supply chain. Samsung Electronics closed at 266,000 won, up 33,500 won (14.41%). Its market capitalization reached about 1,555 trillion won, entering the so-called $1 trillion club for the first time. It is the second in Asia after Taiwan’s TSMC and ranks 12th globally by market value, according to Bloomberg data. SK Hynix rose 10.64% to 1,601,000 won, with a market cap of 1,141 trillion won. The Korea Exchange said total KOSPI market capitalization stood at 6,058 trillion won at the close, up about 3,951 trillion won from 2,107 trillion won a year earlier. The combined market cap of Samsung Electronics (including preferred shares) and SK Hynix was about 2,848 trillion won, or roughly 47% of the total, nearly double the 23.7% share a year earlier. Other gainers included SK Square, SK Hynix’s holding company and the market’s fourth-largest by capitalization, as well as KOSPI-listed members of the KRX Semiconductor Index such as Hanmi Semiconductor, DB HiTek, HD Hyundai Energy Solutions, KC Tech and LX Semicon. Nearly half of the KOSPI’s total market value is effectively tied to the semiconductor cycle. Market participants said the rally reflects more than liquidity-driven gains, describing it as a structural re-rating as chip-led profit dynamics reshape the index’s baseline. Some analysts said there is room for further upside. Research chiefs at seven major brokerages forecast the KOSPI could reach as high as 9,000 in the second half of the year. Lee Jae-won, an analyst at Yuanta Securities, said, “With the KOSPI PER at about 7.18 times, valuation pressure is not heavy even now that the index is above 7,300,” adding that it “acts as a factor supporting the downside.” * This article has been translated by AI. 2026-05-06 17:57:15
  • Top 10 South Korean Brokerages’ Q1 Net Profit Nearly Matches Big Five Banks
    Top 10 South Korean Brokerages’ Q1 Net Profit Nearly Matches Big Five Banks South Korea’s securities industry has narrowed the earnings gap with banks, buoyed by a strong stock market that has lifted trading and brokerage revenue. On the 6th, the financial investment industry and FnGuide said the combined first-quarter net profit of the 10 largest brokerages by equity totaled 4.4656 trillion won, bringing results to roughly the level of the banking sector. By firm (consensus estimates), Mirae Asset Securities posted the largest net profit at 1.0332 trillion won, followed by Korea Financial Holdings (Korea Investment & Securities) at 672.9 billion won, Meritz Financial Group (Meritz Securities) at 668.5 billion won, Kiwoom Securities at 417.9 billion won, Samsung Securities at 386.0 billion won and Daishin Securities at 69.5 billion won. Brokerage units of financial groups also reported: NH Investment & Securities 475.7 billion won, KB Securities 350.2 billion won, Shinhan Investment Corp. 288.4 billion won and Hana Securities 103.3 billion won. Against that backdrop, the combined first-quarter net profit of the five major banks totaled 4.4420 trillion won. By bank, Shinhan Bank led with 1.1571 trillion won, followed by Hana Bank with 1.1042 trillion won and KB Kookmin Bank with 1.1010 trillion won. NH NongHyup Bank posted 557.7 billion won and Woori Bank 531.2 billion won. The securities industry’s net profit relative to banks has risen steadily, from 27.8% in 2022 to 36.3% in 2023, 42.9% in 2024 and 50.0% in 2025. Last year, the combined net profit of the 10 brokerages reached 7.67 trillion won, close to half the 15.33 trillion won earned by the five banks. Analysts said the gap has narrowed faster this year as stock prices rose and trading value expanded, improving brokerages’ earnings structure. Brokerage business was cited as the main driver, with commission income jumping as both retail investors and foreign funds flowed into the market. The industry has also diversified revenue sources compared with the past, with results from global investment and trading adding support. Mirae Asset Securities, which is expected to post more than 1 trillion won in first-quarter net profit, saw earnings surge as valuation gains tied to its SpaceX investment increased sharply. Regulatory changes were also described as supportive. The introduction of comprehensive investment management accounts, known as IMA, and the expansion of short-term note issuance businesses are increasing the scale of brokerages’ fund management and broadening opportunities to generate revenue across investment and corporate finance. Market watchers said the brokerage sector is likely to remain resilient for the time being on the back of the market rally. Woo Do-hyung, an analyst at Yuanta Securities, said credit provision balances and client deposits (130 trillion won) rose 4.1% and 17.6%, respectively, from the previous month to record highs. He said buying sentiment remains firm and turnover among retail investors is likely to keep rising. * This article has been translated by AI. 2026-05-06 14:51:17
  • Samsung Electronics, SK Hynix jump about 10% to fresh record highs
    Samsung Electronics, SK Hynix jump about 10% to fresh record highs Samsung Electronics and SK Hynix surged to new record highs as expectations for an AI-driven investment cycle and foreign inflows reinforced a semiconductor-led rally. According to the Korea Exchange, Samsung Electronics was trading at 258,000 won as of 9:07 a.m., up 25,500 won, or 10.97%, from the previous session. SK Hynix rose 135,000 won, or 9.33%, to 1,582,000 won. It climbed as much as 10.64% intraday, briefly topping 1.6 million won. SK Square, SK Hynix’s holding company, jumped 15.94% to 1,149,000 won. Samsung Electronics’ preferred shares also advanced, up 9.08% to 185,000 won. Analysts cited optimism about the chip cycle and global market momentum. Strength in U.S. technology shares over the Children’s Day holiday was seen as feeding into sentiment in South Korea. Expectations that expanding AI investment will lift memory demand have also kept talk of a semiconductor “supercycle” alive. On May 5 (local time), U.S. stocks rose, with the S&P 500 and the Nasdaq both closing at record highs, according to the report. Falling international oil prices also added to a supportive backdrop. The tech-heavy Nasdaq gained 258.32 points, or 1.03%, to finish at 25,326.126. Chip-related shares broadly advanced after reports said Apple began talks with Intel and Samsung Electronics to diversify its chip production. . 2026-05-06 09:15:15
  • Shinhan Investment Cuts Yuhan Target Price on Slower-Than-Expected Lazertinib Uptake
    Shinhan Investment Cuts Yuhan Target Price on Slower-Than-Expected Lazertinib Uptake Shinhan Investment Corp. on Tuesday kept its “buy” rating on Yuhan Corp. but cut its target price 29.4% to 120,000 won, citing slower-than-expected growth in prescriptions for lazertinib. Analyst Lee Ho-cheol said lazertinib royalty income has fallen short of expectations, weighing on the stock’s recent performance, but added that a turnaround remains possible depending on key clinical results in the second half of the year. Yuhan reported consolidated first-quarter 2026 revenue of 526.8 billion won, up 7.2% from a year earlier. Operating profit rose 37.3% to 8.8 billion won, with an operating margin of 1.7%. The results, however, missed market consensus, Lee said. He cited several factors: the company did not recognize a $30 million milestone tied to a European launch of lazertinib; royalties of 5.3 billion won came in below expectations; and a higher share of overseas active pharmaceutical ingredient, or API, sales with higher cost ratios weighed on profitability. Lee said the longer-term outlook remains intact. He expects Yuhan to receive the European milestone in the first half of the year, and said a foundation for broader prescribing is forming after lazertinib was listed as a preferred first-line regimen in NCCN guidelines and the U.S. Food and Drug Administration approved a subcutaneous formulation of the combination drug Rybrevant. He also said the overseas API business is expected to grow on capacity expansion and improved bargaining power. Expansion of the HC building is underway, with operations targeted for the first half of 2028, and potential benefits from a U.S. biosecurity law have also been discussed. Lee said the key variable for a rebound in the share price will be clinical results in the second half. He said that if the MARIPOSA Phase 3 trial shows the lazertinib-Rybrevant combination is superior to Tagrisso in median overall survival, or mOS, and safety, prescriptions could expand and the stock could see a valuation re-rating. * This article has been translated by AI. 2026-05-06 08:19:18
  • Merrill Lynch Adds $250 Million to Seoul Branch, Doubling Capital Base
    Merrill Lynch Adds $250 Million to Seoul Branch, Doubling Capital Base Merrill Lynch, a foreign investment bank, is expanding its business in South Korea after injecting several hundred billion won in additional funds into its Seoul branch, an unusual move among foreign securities firms that typically keep local capital relatively flat. According to the financial investment industry on May 5, Merrill Lynch’s Seoul branch recently received a $250 million remittance (about 370 billion won) from its headquarters to bolster operating funds. As a result, its equity capital is expected to rise from about 360 billion won at the end of last year to the 700 billion won range, more than doubling. The increase would place Merrill Lynch among the top tier by equity capital among the 12 foreign securities firms with branches in South Korea. As of the end of last year, the largest was Morgan Stanley’s Seoul branch at 655.5 billion won. Foreign securities firms generally remit most profits to their headquarters as dividends, limiting growth in local equity capital. JPMorgan’s Seoul branch, for example, sent 133 billion won of last year’s profit to its headquarters. Against that backdrop, Merrill Lynch’s capital expansion is seen as atypical. Over the past five years, cases in which major foreign securities branches more than doubled equity capital have been rare. Goldman Sachs’ Seoul branch increased capital from 396 billion won at the end of 2021 to 604.6 billion won at the end of 2025, up about 52%, while Morgan Stanley’s Seoul branch rose about 32% from 497.4 billion won to 655.5 billion won. Other firms posted only modest gains of around 10% or saw declines over the period. The latest funding appears tied to improving results and a strong domestic stock market. Merrill Lynch’s Seoul branch posted net profit of 76.1 billion won last year, up from 38.8 billion won in 2024. The broader outlook for foreign securities firms has also improved: combined net profit for the 12 foreign branches operating in South Korea rose from 256 billion won in 2023 to 322.9 billion won in 2024 and 427.4 billion won last year. Industry officials view the move as a signal of expanded operations, as rising corporate valuations in a buoyant market lift revenue opportunities such as mergers and acquisitions and advisory work. “With the recent market rally, demand for IB, M&A and advisory services is increasing at the same time,” a financial investment industry official said. “The larger the equity capital, the more a firm can participate in big deals or expand trading, so it appears they moved early to strengthen capital.”* This article has been translated by AI. 2026-05-05 15:03:14
  • OPEC+ Producers Agree to Raise Oil Output by 188,000 Barrels a Day Starting in June
    OPEC+ Producers Agree to Raise Oil Output by 188,000 Barrels a Day Starting in June Saudi Arabia, Russia and other major oil producers have agreed to modestly increase crude output starting in June. Yonhap reported on the 3rd, citing an OPEC announcement, that seven OPEC+ members — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — agreed in a joint statement to raise production. The countries said they will implement production adjustments totaling 188,000 barrels a day from June under the “additional voluntary production adjustments” plan announced in April 2023, calling it part of a joint effort to stabilize the oil market. They said it is important to keep “full flexibility” to increase, pause or reverse the voluntary adjustments while maintaining a cautious approach to market stability. Figures attached to the statement show Saudi Arabia and Russia could each raise output by 62,000 barrels a day from June. Iraq could increase by 26,000 barrels a day, Kuwait by 16,000, Kazakhstan by 10,000, Algeria by 6,000 and Oman by 5,000. The countries said they will meet June 7 to discuss oil market conditions and compliance with production cuts, and plan to hold regular monthly meetings afterward. The statement did not mention it, but markets have viewed the move as a response to the United Arab Emirates’ recent declaration that it would leave OPEC and OPEC+. The UAE previously announced it would quit the “oil producers’ cartel” amid Middle East tensions and increased volatility in international oil prices, and signaled it could raise output. Saudi-led OPEC and OPEC+ have managed oil prices by limiting production through country-by-country quotas. The latest step is seen as a buffer that effectively allows more output to prevent further departures after the UAE.* This article has been translated by AI. 2026-05-03 20:42:18
  • Lee Jae-myung Shares Photo of Pet Dog Wearing Gift From Indonesia’s Prabowo
    Lee Jae-myung Shares Photo of Pet Dog Wearing Gift From Indonesia’s Prabowo President Lee Jae-myung posted photos and video on social media showing his pet dog wearing clothes given by Indonesian President Prabowo Subianto, continuing a public exchange between the two leaders. In an Instagram post on the 3rd, Lee wrote, “Bobby wearing the outfit President Prabowo sent,” and shared footage of the dog walking on a lawn. In the images, Bobby wears an outfit and leash with the dog’s name on them. Prabowo previously gave clothing and a leash for Lee’s dog during his state visit to South Korea last month. Lee said in the post that the dog was “playing excitedly in new clothes and then resting,” and tagged Prabowo’s account to ask, “Is Indonesia’s Bobby doing well, too?” Prabowo’s pet cat is also named “Bobby,” the same name as Lee’s dog. The post was written in both Korean and Indonesian. During a summit with Prabowo on April 1, Lee said the state visit had produced a “historic outcome” by elevating bilateral ties to a “special comprehensive strategic partnership.”* This article has been translated by AI. 2026-05-03 20:09:15
  • Iran’s IRGC says Trump faces only ‘impossible’ military option or ‘bad deal’
    Iran’s IRGC says Trump faces only ‘impossible’ military option or ‘bad deal’ Iran’s Islamic Revolutionary Guard Corps said President Donald Trump has sharply limited diplomatic and military options, stepping up pressure as tensions rise again. According to Yonhap News Agency, the IRGC’s Intelligence Organization said in a statement on the 3rd that Trump is left to choose between an “unworkable military operation” and an “unfavorable deal with Iran.” As grounds for its assessment, the group cited what it called a “blockade deadline” Iran presented to the U.S. Defense Department, shifts in the attitudes of China, Russia and Europe toward the United States, a private letter Trump sent to the U.S. Congress, and partial acceptance of Iran’s negotiating terms. It said U.S. room for decision-making is “gradually shrinking.” Iran has recently been reported to have proposed a 14-point revision in response to a nine-point cease-fire plan presented by the United States. The revisions reportedly include compensation for war damage, guarantees against renewed military attacks, withdrawal of U.S. forces from areas around Iran, lifting a maritime blockade, easing sanctions on Iran, ending regional conflicts including in Lebanon, and resetting the operating mechanism for the Strait of Hormuz. The United States and Iran agreed to a cease-fire on April 8, but tensions have escalated again after cease-fire talks held April 11 in Islamabad, Pakistan, fell into deadlock.* This article has been translated by AI. 2026-05-03 19:51:14
  • Mayon Volcano Erupts in Philippines, Forcing Thousands to Evacuate as Alert Raised
    Mayon Volcano Erupts in Philippines, Forcing Thousands to Evacuate as Alert Raised Mayon Volcano, considered the Philippines’ most active volcano, has erupted, prompting the evacuation of thousands of nearby residents. Philippine authorities said the 2,463-meter (8,081-foot) volcano in Albay province on Luzon began spewing ash, smoke and lava starting on May 2 (local time), affecting 52 nearby villages, Yonhap News Agency reported on May 3. Authorities raised the volcano alert to Level 3 on a five-step scale and ordered the emergency evacuation of about 1,500 households. Evacuees were staying in temporary shelters while waiting for activity to subside. Access near the volcano was restricted under the Level 3 alert, and flights in surrounding airspace were also limited. The Philippine Institute of Volcanology and Seismology said intensifying activity sent lava flowing for several kilometers, and rockfalls and pyroclastic density currents were observed within the 6-kilometer (3.7-mile) permanent danger zone. Pyroclastic density currents are fast-moving flows of superheated ash, rocks and toxic gases. The institute said 32 volcanic earthquakes were detected over the past 24 hours and warned that additional hazards, including moderate explosions, could not be ruled out in the coming days. It urged the public not to enter the danger zone. The Philippines sits on the Pacific “Ring of Fire,” where volcanic eruptions and earthquakes are frequent. Mayon is regarded as the country’s most active volcano. A major eruption in 1814 killed about 1,200 people, and another in 1993 left 79 dead. 2026-05-03 19:45:15