Journalist

Shin Dong-kun
  • Korean Brokerages Ramp Up Marketing for Domestic Derivatives as Retail Trading Grows
    Korean Brokerages Ramp Up Marketing for Domestic Derivatives as Retail Trading Grows A bull market is drawing more retail investors into derivatives, intensifying marketing competition among brokerages. Firms are cutting fees and offering gift-card promotions. Experts warn that if the rally fades, losses from leveraged derivatives trading could fall squarely on individuals. According to the securities industry on the 23rd, brokerages are stepping up campaigns tied to domestic derivatives. Brokerage A said it will offer up to three months of discounted fees for domestic futures and options customers and provide gift cards to clients who meet trading requirements. Brokerage B is targeting new and inactive customers with gas gift cards, cash and fee coupons to spur first trades. Brokerage C is offering cash for completing education and additional rewards based on trading volume. The industry is broadly competing on incentives to expand domestic derivatives trading. The shift is also seen as a response to tighter oversight that has made aggressive marketing harder for overseas stocks and overseas derivatives, pushing firms to focus on domestic derivatives, which face relatively fewer restrictions. Brokerage results from last year underscore the trend. As of the end of last year, brokerages’ fee income from domestic derivatives (excluding overseas) totaled 508.9 billion won, up 13.8% from 447.1 billion won a year earlier. Over the same period, interest income from credit provision rose 8.5% to 3.1073 trillion won from 2.8626 trillion won. The structure rewards higher trading volumes with more fees, and expanding debt-funded investing boosts interest income. Still, responsibility for investment decisions and losses rests with individuals, prompting calls for caution. Futures and options are typical leveraged products that allow large positions with small margin deposits, meaning losses can multiply if investors bet the wrong way. Margin trading carries similar risks. Data from the office of Rep. Heo Young, a member of the National Assembly’s Political Affairs Committee, show individual investors posted cumulative losses of about 3.667 trillion won in domestic derivatives from 2020 to 2024. Losses were recorded each year over the five-year period, though the first half of 2025 saw a profit of 326.3 billion won. Heo said investors who meet eligibility requirements may mistakenly believe they are fully prepared for high-risk trading and take on excessive speculation, adding that brokerages’ sales practices that stoke get-rich-quick sentiment through promotions should be examined. Financial authorities, meanwhile, have not issued specific warnings on exchange-traded domestic derivatives. They highlighted risks in leveraged ETFs and overseas derivatives trading late last year and early this year, but have provided no separate guidance for domestic exchange-traded derivatives. A Financial Supervisory Service official said there are no plans yet to respond regarding domestic derivatives, adding that exchange-traded derivatives are handled by investors who have completed education, making them different from products such as ETFs traded by the general public.* This article has been translated by AI. 2026-04-23 18:00:55
  • Shinhan Investment posts 288.4 billion won Q1 net profit on stock market boom
    Shinhan Investment posts 288.4 billion won Q1 net profit on stock market boom Brokerages have begun reporting first-quarter results, and Shinhan Investment was among the first, posting a sharp jump in profit as a stock market rally lifted trading activity. Other securities firms are also expected to report strong gains. Shinhan Investment said Thursday its first-quarter net profit rose 167.4% from a year earlier to 288.4 billion won. Operating profit climbed 228.5% to 386.4 billion won. Operating revenue increased 90.2% to 701.5 billion won, while operating expenses rose 25.4% to 315.1 billion won, highlighting improved profitability. By revenue source, fee income totaled 407.4 billion won, the largest share. Brokerage commissions accounted for 293.5 billion won, followed by financial product fees of 28.3 billion won and investment banking fees of 42.6 billion won. Product management income came to 162.3 billion won, and net interest income was 131.7 billion won. Profitability indicators also improved, with return on assets at 1.97% and return on equity at 20.00%. The company attributed the gains to higher trading value amid the market upswing. “Along with an increase in stock brokerage commissions, profit and loss from product management improved,” a Shinhan Investment official said, adding that results strengthened broadly across business lines including brokerage, investment banking and financial products. 2026-04-23 15:12:06
  • Samsung Electro-Mechanics Ends 11-Session Rally, Falls 5% on Profit-Taking
    Samsung Electro-Mechanics Ends 11-Session Rally, Falls 5% on Profit-Taking Samsung Electro-Mechanics ended an 11-session winning streak and turned lower, as investors locked in gains after a sharp run-up, analysts said. As of 2:29 p.m., the stock was down 44,000 won, or 5.42%, at 768,000 won, according to the Korea Exchange. The shares had risen for 11 straight sessions from April 8 through April 22, surging from 514,000 won to 812,000 won and setting fresh record highs along the way. The rally reflected expectations that demand for electronic components would improve as artificial intelligence use spreads. Investors also focused on anticipated growth in demand for package substrates used in AI servers and multilayer ceramic capacitors, or MLCCs. Brokerages have also raised their price targets. Daishin Securities lifted its target to 920,000 won, citing expectations for an industry upturn. It forecast structurally tight MLCC supply and expanding demand led by AI and automotive electronics. The shift is expected to support broader profitability gains. The company is seen maintaining high utilization in its FC-BGA and MLCC businesses while improving its product mix by increasing the share of higher value-added products. Some in the market expect results to come in above existing forecasts. From the second quarter of 2026, operating profit is expected to top the market consensus in an earnings surprise. While the stock has jumped 66.2% over the past month, adding to near-term 부담, analysts said the pace of earnings improvement suggests further upside may still be possible. Still, the heavy short-term gains appeared to spur profit-taking on the day, pushing the shares lower.* This article has been translated by AI. 2026-04-23 14:42:17
  • South Korea watchdog, industry group move to curb misleading investment ads
    South Korea watchdog, industry group move to curb misleading investment ads South Korea’s financial watchdog is moving to tighten oversight of investment advertising as some promotions use misleading phrases such as “steady like monthly rent” — which can be read as guaranteeing profits — or “targeting 15% annual returns,” which highlights unrealized performance. The Financial Supervisory Service said it has begun a broad overhaul of advertising rules with the Korea Financial Investment Association to block false or exaggerated ads by financial investment firms and strengthen investor protection. The FSS and the association said on the 23rd they launched an “advertising system improvement” task force with financial investment companies and held a kickoff meeting. The group includes industry participants such as securities firms and asset managers, as well as the Korea Financial Consumer Protection Foundation, to discuss changes from a consumer-protection perspective. As stock investing by individual and institutional investors has expanded, the capital market has grown quickly and marketing competition among financial investment firms has intensified. Net stock buying by individual investors swung from 19.2 trillion won in net selling last year to 26.5 trillion won in net buying through the first quarter of this year. Regulators said some firms, amid the competition, have omitted essential information such as fees and risks or used exaggerated claims like “guaranteed profits” and “highest returns.” They also pointed to the rise of ads on social media and YouTube, including promotions using so-called “finfluencers,” and said existing rules have limits in managing them. The task force will focus on expanding the scope of ads subject to prior review, improving review procedures and strengthening internal controls at firms. Discussions include reinforcing the association-led pre-screening function and improving oversight of companies’ own advertising channels. The FSS and the association said they plan to gather views broadly from the industry and financial consumers and finalize measures in the third quarter of this year. “Financial investment company advertising should provide accurate information that helps investors make rational decisions,” said Seo Jae-wan, senior deputy governor of the FSS. “False and exaggerated advertising can undermine trust in the capital market,” he said, calling for active industry participation and stronger internal controls. 2026-04-23 10:07:10
  • SK hynix Hits Record High After Q1 Earnings Surprise
    SK hynix Hits Record High After Q1 Earnings Surprise SK hynix shares rose sharply in intraday trading after the company posted a surprise first-quarter profit on surging demand tied to artificial intelligence chips. According to the Korea Exchange, SK hynix was trading at 1.26 million won as of 9:44 a.m. Thursday, up 3.03% from the previous session. Earlier, it climbed 3.6% to 1.267 million won, setting a fresh record high. The move followed an earnings beat. SK hynix said its first-quarter operating profit on a consolidated basis totaled 37.6103 trillion won, up 405% from a year earlier. Revenue rose 198% to 52.5763 trillion won, well above market expectations. FnGuide’s consensus had projected revenue of 50.1046 trillion won and operating profit of 34.8753 trillion won. The company also surpassed its previous quarterly records set in the fourth quarter of last year, when it posted revenue of 32.8270 trillion won and operating profit of 19.1700 trillion won. Its operating margin reached 72%, up from 58% the prior quarter, marking a record high. The results were driven mainly by a surge in demand for high-bandwidth memory, or HBM, as investment in AI servers expanded. Some analysts said the broader memory chip market is entering a “supercycle” as global big tech companies increase data center spending. Samsung Electronics, another major player in semiconductors, earlier reported preliminary first-quarter results of 133 trillion won in revenue and 57.2 trillion won in operating profit, underscoring strong conditions across South Korea’s chip sector. Samsung shares also touched a record high of 228,000 won early Thursday.* This article has been translated by AI. 2026-04-23 09:51:37
  • DS Investment Raises Samsung Biologics Target Price to 2.1 Million Won, Keeps Buy Rating
    DS Investment Raises Samsung Biologics Target Price to 2.1 Million Won, Keeps Buy Rating DS Investment & Securities on Wednesday maintained its “buy” rating on Samsung Biologics and raised its target price to 2.1 million won from 1.3 million won, citing steady growth after first-quarter results broadly matched market expectations. . Analyst Kim Min-jung said Samsung Biologics posted 2026 first-quarter revenue of about 1.2571 trillion won, up 25.8% from a year earlier, and operating profit of about 580.8 billion won, up 35.1%. Operating margin was 46.2%. The results were in line with prior market forecasts of 1.2797 trillion won in revenue and 590.2 billion won in operating profit. Kim said plants 1 through 4 were running at full capacity and previously deferred revenue was recognized, supporting the quarter’s performance. She added that the 180,000-liter Plant 5 is expected to begin contributing to revenue in the second half of this year, with structural operating-profit growth anticipated from 2027. The purchase price for GSK’s U.S. plant was finalized at $353 million — $280 million for the facility and $73 million for inventory and spare parts — and revenue from the plant is expected to be reflected starting in the second quarter. The acquisition is expected to be consolidated into results and could be a key driver for upward earnings revisions, Kim said. On a separate basis, Kim projected Samsung Biologics’ full-year 2026 revenue at 5.3843 trillion won and operating profit at 2.6772 trillion won, up 18.2% and 28.2%, respectively, from the previous year. DS Investment said the company’s medium- to long-term growth outlook remains intact. Samsung Biologics recently applied to the Incheon Free Economic Zone Authority for a permit to build Plant 6, aiming to break ground within the year and complete construction in 2027. It also plans to accelerate expansion of domestic production facilities following completion of the U.S. plant acquisition and easing uncertainty over tariffs. Kim said the U.S. plant has capacity of about 60,000 liters, with orders already secured for about 50% of that capacity. She said additional orders could leave room for higher revenue estimates. Kim added that while the stock has been weak in the short term due to labor-management disputes, concerns about production disruptions are overdone and core processes are expected to remain stable. * This article has been translated by AI. 2026-04-23 08:00:18
  • HD Hyundai Heavy Industries shares jump on icebreaker, generator orders
    HD Hyundai Heavy Industries shares jump on icebreaker, generator orders HD Hyundai Heavy Industries shares rose on April 22 after the company reported back-to-back large orders. According to the Korea Exchange, the stock was trading at 624,000 won as of 2:22 p.m., up about 8.33% from the previous session. The company said it won a 514.8 billion won contract from the Swedish Maritime Administration to build one dedicated icebreaking vessel. The ship will be 126 meters long with a displacement of 15,000 tons, and will have PC4-class icebreaking capability and an electric propulsion system. Delivery is scheduled by 2029. The high-spec vessel can continuously break through about 1 to 1.2 meters of ice to secure shipping lanes and will be deployed in polar operations, including the Baltic Sea. The win was seen as demonstrating the company’s technical competitiveness in a market where Nordic shipbuilders have been strong. The company also disclosed that it signed a 627.1 billion won contract the same day with U.S.-based Aperion Energy Group to supply engine generators. The deal is equivalent to 3.57% of revenue, with a contract period running through 2030. The equipment will be used for power plant construction projects in the United States, under milestone-based payments that include a 20% advance payment. Market participants said the expanded order book across shipbuilding and energy equipment supports efforts to diversify the company’s business portfolio. * This article has been translated by AI. 2026-04-22 14:30:15
  • Korea Private Equity Council Chief Backs Tighter Rules, Warns Against Disadvantaging Local Firms
    Korea Private Equity Council Chief Backs Tighter Rules, Warns Against Disadvantaging Local Firms Public sentiment toward private equity funds, or PEFs, has turned sharply negative since last year, with criticism increasingly framing them as “predatory capital.” The Homeplus controversy has added to the backlash, and the government has moved to tighten regulation of the sector. Industry officials warn that rules could undermine the foundation Korea’s PEF market has built over two decades. Others say the sector must strengthen accountability and rebuild trust to ensure its role in corporate restructuring and industrial reorganization is properly recognized. Park Byeong-geon, chairman of the Private Equity Fund Council and CEO of Daishin Private Equity, met with Aju Economic Daily on the 20th. He said he broadly agrees with tougher oversight but warned against regulatory imbalance with foreign managers, while urging socially responsible investing, or SRI, to support long-term returns and restore confidence. “I agree with tighter rules, but there must be no reverse discrimination” Park said he shares “consensus” with the government and ruling party’s push to strengthen PEF regulation “in the big picture,” but added that the industry needs to weigh in on details. “The most important principle is that there should be no reverse discrimination compared with foreign managers,” he said, stressing that the goal is not to block competition but to ensure “fair competition under the same rules.” He said regulation could curb investment activity by domestic managers if it ends up favoring overseas firms. “In the process of applying certain regulations to the market, a structure could form in which domestic managers are disadvantaged and foreign managers gain a windfall,” Park said, calling that an outcome that could run counter to policy intent. Park also warned that if compliance requires excessive disclosure of trade secrets, local firms could lose competitiveness. He said disclosure of key information during fund operations could put domestic managers at a disadvantage in bidding for deals or lead to talent losses to foreign rivals. He said Korea’s PEF market was formed in the mid-2000s under government leadership, as concerns grew about protecting domestic investors and preventing an outflow of national wealth amid rising foreign capital inflows. Since then, he said, a local ecosystem has taken root, supported by domestic institutional investors such as the National Pension Service and mutual aid associations. “PEFs backed by domestic capital have a structure that must consider domestic stakeholders such as pension funds, while managers centered on foreign capital inevitably prioritize the interests of their home-country investors,” Park said. “If homegrown PEFs grow properly, positive effects can flow back to domestic investors and the broader industrial base.” “PEFs will be a key pillar of the National Growth Fund” Park said that despite the poor public perception, domestic PEFs have played a meaningful role and that leveraging those strengths can help Korea’s industrial development. He said domestic PEFs can also work effectively with policy finance initiatives the current government is emphasizing. “Policy funds such as the National Growth Fund require venture capital and PEFs to play roles together,” Park said. “If venture firms identify early-stage companies, PEFs should supply large-scale capital at the growth stage to support scale-ups.” He said some promising startups, including in AI, seek overseas funding at the scale-up stage because of a domestic investment gap. That, he said, can increase financing burdens and lead to growth and returns flowing abroad. Park said PEFs, with experience executing large investments, can play a central role in the National Growth Fund. He said about 70% of PEF investment goes to small and midsize companies, and 40% to 50% to technology companies, adding that the industry will mobilize its capabilities accordingly. He said the National Growth Fund is expected to channel capital across key national industries including artificial intelligence, semiconductors, biotech, aerospace and defense. If such an investment ecosystem takes hold, he said, it could become an important foundation for Korea’s push to join the ranks of advanced economies. “The National Growth Fund is not simply a supply of capital, but a policy to strengthen the entire growth stage of Korean industry,” Park said, adding that the PEF industry is ready to contribute. “Social responsibility is performance” Park emphasized the need for socially responsible investing to restore long-term trust after major controversies in the private equity industry. He also argued that SRI can support returns. “Comparing the returns of general funds and funds that consider ESG, the performance of funds that consider ESG is actually higher,” Park said. “The existing perception that social responsibility conflicts with profitability needs to be reconsidered.” He said overseas markets, including Europe, already show data supporting the performance of responsible investing, and predicted a similar trend could emerge in Korea within three to five years given private equity’s long-term investment horizon. “Socially responsible investing is morally right, but it does not necessarily move in inverse proportion to profitability,” he said, adding that the industry will continue to strengthen such investment. Industry data in Korea also point in that direction, he said. According to the industry, employment at companies backed by PEFs rose an average 9.1% a year, well above the overall market average in the 4% range. Wages increased an average 9.3% a year, above the national average in the 3% range, and the share of regular workers was about 94%, indicating stronger job stability. Park attributed the trend to policy and market shifts. He said government regulation is also providing incentives that consider environmental and social factors, and consumers are increasingly assigning higher brand value to companies that demonstrate responsibility, which he said can support corporate value and returns over the long term. Park said 251 institutions in Korea participate in the stewardship code, including 75 PEFs, the largest participation by sector. He said that reflects continued emphasis by major institutional investors, including the National Pension Service, on responsible investment and stewardship code implementation. He added that the industry plans to further strengthen self-regulation and responsible investment in line with efforts to advance the code, including what he described as “Stewardship Code Season 2” presented by National Pension Service Chairman Kim Seong-ju. “There will be no repeat of the Homeplus incident” Park also underscored private equity’s economic role. He said PEFs account for more than half of Korea’s M&A market, and annual investment totals about 30 trillion won, far exceeding venture investment. He said the industry has invested a cumulative roughly $57 billion in high-risk, high-growth sectors such as AI, semiconductors and renewable energy, serving as a “risk absorber” in areas difficult to fund with public resources alone. He added that research and development investment and capital expenditures have increased an average 16% and 10% a year, respectively, strengthening long-term growth foundations. Park said self-regulation and greater transparency are needed. “Ultimately, the goal is to compete on equal terms with foreign managers while establishing ourselves as responsible investors that contribute to the Korean economy,” he said. “We must ensure something like Homeplus never happens again,” Park said. “In particular, homegrown PEFs have a very strong will to prevent any recurrence.” 2026-04-22 13:47:25
  • PEF Council Chair Park Byeong-geon Says Group Aims to Launch Industry Association in Second Half
    PEF Council Chair Park Byeong-geon Says Group Aims to Launch Industry Association in Second Half The private equity fund (PEF) industry’s biggest issue this year is launching an industry association. The sector is working to convert the existing PEF council into a formal association, with a target of launching in the second half of the year. The move is aimed at unifying the industry’s policy-response channel as financial authorities tighten regulation. Park Byeong-geon, chairman of the private equity council, said he is confident the association can be launched within the year. “Views cannot match 100% on the transition, but a large number of member firms agree with the purpose,” he said. Park said an association would have broad impact across the industry by strengthening its role as a single window for conveying the sector’s views to policymakers. He said the group would speak up “so that reverse discrimination does not occur” against domestic managers compared with overseas firms during the process of introducing new rules. He also cited stronger self-regulation as a reason for the push. “The industry’s own self-regulation must also go hand in hand,” Park said, adding that firms should strengthen internal controls and help establish sound market order to prevent a repeat of cases such as the Homeplus incident. Park said the association would also seek to improve the industry’s image. He said perceptions of private equity have been shaped more negatively than warranted and that its positive roles — including corporate restructuring, growth support and industrial reorganization — have not been sufficiently recognized. He added that buying struggling companies, improving their fundamentals and transferring them to more suitable investors can play a meaningful economic role and should be properly evaluated. Park said the group also plans to more actively publicize results related to expanding socially responsible investment. “The PEF industry is already carrying out various socially responsible investment activities, but they tend to be undervalued,” he said, adding that the industry will use related data to more clearly communicate its contributions. “We will work to launch the association within the second half of this year,” Park said. “We will strive for private equity to take root as a sound member of the Korean economy.” * This article has been translated by AI. 2026-04-22 13:46:32
  • Hanwha Asset Management Highlights Investment Strategy for Korea Manufacturing Amid Supply Chain Shift
    Hanwha Asset Management Highlights Investment Strategy for Korea Manufacturing Amid Supply Chain Shift Hanwha Asset Management said it held an investment strategy seminar to assess opportunities in South Korean manufacturing as global supply chains are reshaped. The firm said Tuesday it hosted the two-day seminar, titled “The New Cold War Era and the Revival of Korean Manufacturing,” starting Monday at The Plaza Hotel. The seminar was planned as supply chains are being rapidly reorganized amid U.S.-China tensions and rising geopolitical strains. Hanwha Asset Management said South Korea has built competitiveness across manufacturing, including semiconductors, power equipment, nuclear power, defense and shipbuilding, and is emerging as a key partner to help fill gaps in U.S. manufacturing. As a product aligned with that trend, the firm highlighted the Hanwha K-Manufacturing Core PLUS Fund. It is structured to focus on semiconductors, power and energy, which it said are expected to benefit from expanding AI infrastructure, as well as strategic industries such as defense, robotics and biotech. Since its launch in March, the fund has posted a 14.62% return in about a month. “As global companies reduce their dependence on China, the strategic value of Korean manufacturing is becoming more prominent,” Vice President Choi Young-jin said. “It is moving beyond a simple cyclical rebound and entering a phase of structural growth.” * This article has been translated by AI. 2026-04-22 13:45:45