AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Shin Dong-kyun
  • Korea Weighs Trading Curbs on Single-Stock Leveraged ETFs for Finance Staff, Civil Servants
    Korea Weighs Trading Curbs on Single-Stock Leveraged ETFs for Finance Staff, Civil Servants As South Korea prepares to introduce single-stock leveraged exchange-traded funds, attention is turning to whether financial investment professionals and civil servants will be allowed to trade them. The financial sector is already moving to effectively restrict employee trading, and similar rules are expected for government workers. Although the products are structured as ETFs, they track the price of a single company directly, fueling calls for tighter controls. The Korea Financial Investment Association and other industry bodies said Monday that the sector plans to treat single-stock leveraged ETFs not as conventional ETFs but as products comparable to individual equity securities. That would tighten employee trading rules, likely including mandatory pre-approval of trades, investment limits that do not exceed annual salary, and bans on margin and unsettled credit trading. Measures to curb short-term trading, such as minimum holding periods and limits on the number of trades, are also likely to be included. The association and others say regulation is needed because the products are, in effect, “single stocks wearing an ETF mask.” Traditional ETFs spread risk by holding multiple stocks, while single-stock ETFs’ returns hinge directly on one company’s share price. Leveraged versions are more volatile, raising concerns about conflicts of interest and excessive speculative demand. Similar oversight may be applied to civil servants. The Ministry of Personnel Management is reviewing whether single-stock ETFs should be treated the same as individual shares. Under current rules, civil servants whose stock holdings exceed 30 million won are subject to a job-related review and may be required to sell or place the assets in a blind trust if a conflict of interest is found. There are no separate limits on ETF investing. A ministry official said the agency is reviewing trading rules “in consideration of the characteristics of the leveraged ETF made up of a single stock.” The Financial Supervisory Service is also discussing whether to apply investment restrictions to its own staff. As an agency under the Financial Services Commission that oversees the financial investment industry, it is expected to set separate management standards for single-stock ETFs, given ethics and investment rules that are similar to, or stricter than, those for other civil servants. * This article has been translated by AI. 2026-04-28 18:18:20
  • NgeneBio shares plunge 25% on capital reduction and $224 million stock offering plan
    NgeneBio shares plunge 25% on capital reduction and $224 million stock offering plan Shares of NgeneBio tumbled after the company announced it will pursue a capital reduction and a stock offering at the same time. According to the Korea Exchange, NgeneBio was trading at 1,226 won on the KOSDAQ as of 1:18 p.m. on the 28th, down 419 won, or 25.47%, from the previous session. The drop was widely attributed to concerns that a large capital reduction and a new share sale would dilute shareholder value and weigh on sentiment. NgeneBio said it decided at a board meeting the previous day to issue 7.15 million common shares in a paid-in capital increase. The company aims to raise about 22.4 billion won, allocating about 17.3 billion won for working capital and 5.1 billion won to repay debt. The deal will be structured as a rights offering to existing shareholders, with any unsubscribed shares sold in a public offering. The company will also carry out a free capital reduction to cover accumulated losses. The reduction ratio is 66.67%, consolidating three existing common shares into one. As a result, the number of shares outstanding will fall to 8,936,583 from 26,809,750. The record date for the capital reduction is June 24, and the listing of new shares is scheduled for July 13. Market participants said the capital reduction is intended to improve the company’s financial structure, but the follow-on stock offering makes dilution of existing stakes unavoidable, adding pressure to the share price. They also noted that the heavy allocation to working capital and debt repayment suggests a focus on financial stability rather than growth investment.* This article has been translated by AI. 2026-04-28 13:25:13
  • SK Hynix Hits Record High Above 1.32 Million Won Despite Rating Cut
    SK Hynix Hits Record High Above 1.32 Million Won Despite Rating Cut SK Hynix climbed above 1.32 million won in intraday trading, setting another record high as expectations for stronger demand tied to artificial intelligence chips continued to lift the stock. According to the Korea Exchange, SK Hynix was trading at 1,325,000 won as of 10:27 a.m. on April 28, up 33,000 won, or 2.55%, from the previous session. The shares pushed past the 1.32 million-won level during the session, marking a fresh all-time high. Analysts cite rising expectations for higher demand for high-bandwidth memory, or HBM, driven by increased investment in AI servers. With global big tech companies led by Nvidia continuing to expand AI infrastructure spending, investors have been pricing in potential gains for SK Hynix in the HBM market. A recovery in the memory market has also supported sentiment, with rebounds in DRAM and NAND prices and a growing share of higher value-added products fueling expectations for improved results. Still, some warn the sharp run-up may be stretching valuations. BNK Investment & Securities on the previous day cut its rating on SK Hynix to “hold” from “buy” while keeping its target price at 1.3 million won, citing valuation pressure after the recent surge and the possibility that earnings momentum could slow in the second half. * This article has been translated by AI. 2026-04-28 10:39:28
  • Heungkuk Securities Raises Hyundai Steel Target on Improving Steel Market Outlook
    Heungkuk Securities Raises Hyundai Steel Target on Improving Steel Market Outlook Heungkuk Securities maintained its “buy” rating on Hyundai Steel and raised its target price to 55,000 won. The brokerage cited expectations for improving steel market conditions and the impact of planned price increases, saying a near-term earnings rebound is becoming more visible. Jinsoo Jung, an analyst at Heungkuk Securities, said Hyundai Steel’s first-quarter results missed market expectations, with revenue of 5.7397 trillion won and operating profit of 15.7 billion won. He attributed the shortfall to a lagging effect that reflected lower prices for flat steel products and higher costs, which narrowed rolling margins. Still, sales volume rose to 4.26 million tons, which he said confirmed a demand recovery led by flat products. Jung said improved steel scrap prices and contributions from standalone subsidiaries helped cushion results. He added that consolidated profitability improved on one-off gains such as a tariff refund at Hyundai Steel Pipe and expanded operations at the Pune SSC in India. Looking ahead, Jung took a more upbeat view of the industry. He said global supply and demand are improving as Chinese hot-rolled coil prices rise and exports decline, and that anti-dumping effects are also creating conditions for domestic steelmakers to regain market share. He said domestic steelmakers are pursuing price hikes to reflect higher raw material costs, with the impact expected to show gradually in results starting in the second quarter. He added that a faster normalization is expected, particularly in the long steel segment. Jung said he raised his EBITDA estimate by 16% and increased the target price by applying a target EV/EBITDA multiple of 6.3. He forecast that improving market conditions would continue into the second half, alongside the effect of price increases for high value-added steel sheets used in automobiles.* This article has been translated by AI. 2026-04-28 08:42:06
  • Mirae Asset Securities Seen Leading Q1 Operating Profit on SpaceX Valuation Gain
    Mirae Asset Securities Seen Leading Q1 Operating Profit on SpaceX Valuation Gain ◆Ajou Economy Top Stories ▷Mirae Asset Securities may reclaim the top spot after four years; Q1 operating profit seen at 1.36 trillion won -Mirae Asset Securities is projected to post first-quarter operating profit of 1.3572 trillion won, potentially overtaking Korea Investment & Securities (822.0 billion won) to regain the No. 1 position. -A valuation gain from its investment in SpaceX is expected to be reflected, raising expectations it will surpass 1 trillion won in quarterly operating profit for the first time. -On an annual basis, Mirae Asset Securities is forecast at 3.1240 trillion won in operating profit versus 2.8116 trillion won for Korea Investment & Securities, suggesting a reversal in rankings. -Over the past three years, Korea Investment & Securities has maintained an edge with a profit structure centered on investment banking and trading. -Going forward, the rivalry is expected to hinge on the global investment environment and performance in the IMA business. ◆Key Report ▷NH Investment & Securities: Hyosung Heavy Industries’ North America-led growth accelerates; target raised -NH Investment & Securities raised its target price for Hyosung Heavy Industries from 3.6 million won to 4.5 million won, up 25%, while maintaining a “buy” rating. -It cited expanding North American orders, prolonged supply shortages and the impact of capacity expansion as supporting mid- to long-term growth and valuation appeal. -First-quarter operating profit fell short of expectations due to the effect of deferred earnings, but orders of 4.2 trillion won and a backlog of 15.1 trillion won were described as solid. -The report pointed to a higher North America share and the value of HVDC-related business and the Memphis plant, arguing that a high valuation is justified amid a global power-infrastructure boom. ◆Major disclosures after the close (24th) ▷LS Cable & System and Marine Solution terminate Anma offshore wind contract worth 271.1 billion won ▷Bukwang Pharmaceutical: “Acquired 30.0 billion won worth of Korea Union Pharmaceutical shares; stake 75%” ▷Aekyung Chemical: “Invested 82.4 billion won in subsidiary Aekyung Chemical Works” ▷Dong-A Socio Holdings Q1 operating profit 19.1 billion won, down 6% ▷Unitrontech: “Additional purchase of affiliate GPI shares for 11.3 billion won” ▷A-Lux: “Additional purchase of subsidiary ER shares worth 8.0 billion won; stake 100%” ▷NGeneBio to raise 22.0 billion won via rights offering and public sale of unsubscribed shares ◆Fund flows (as of the 24th, excluding ETFs) Domestic equity funds: 37.3 billion won Overseas equity funds: -8.8 billion won ◆Today (Tue) key events South Korea: Bank of Korea monetary policy meeting minutes United States: Home prices (February), consumer confidence (April), M2 (March) Japan: BOJ Gov. Ueda; Japan monetary policy meeting * This article has been translated by AI. 2026-04-28 07:12:25
  • Mirae Asset Securities Seen Leading Q1 Operating Profit on SpaceX Valuation Gain
    Mirae Asset Securities Seen Leading Q1 Operating Profit on SpaceX Valuation Gain A shift may be underway in the race for the top spot between Korea Investment & Securities and Mirae Asset Securities. After trailing for three straight years, Mirae Asset is increasingly seen as likely to reclaim the lead in first-quarter operating profit, helped by gains tied to its SpaceX investment. Attention is also turning to whether the annual ranking could flip as well. Financial data provider FnGuide said Monday that Mirae Asset’s consolidated first-quarter operating profit consensus stands at 1.3572 trillion won. If realized, it would mark the first time a Korean securities firm posts more than 1 trillion won in quarterly operating profit. Rival Korea Investment & Securities is estimated at about 822 billion won for the quarter. Mirae Asset’s strong quarter reflects a large valuation gain related to its SpaceX stake. The firm invested more than 400 billion won in SpaceX through vehicles including Mirae Asset AI Investment Association No. 1 and Space Investment Association No. 1. The company’s valuation is said to have surged ahead of a planned initial public offering. SpaceX, a U.S. private aerospace company founded by Elon Musk, is pursuing an IPO with June as its target. The outlook has fueled talk of a reversal in the full-year standings. The market expects Mirae Asset to post 3.1240 trillion won in operating profit for the year, topping the 2.8116 trillion won forecast for Korea Investment & Securities. Last year, Korea Investment & Securities ranked No. 1 with 2.3427 trillion won, ahead of Mirae Asset’s 1.9150 trillion won. The two firms’ rivalry has swung in recent years. In 2022, Mirae Asset led with 835.5 billion won in operating profit versus Korea Investment & Securities’ 400.1 billion won, but the positions later reversed. In 2023, Korea Investment & Securities posted 664.0 billion won, beating Mirae Asset’s 521.0 billion won, and in 2024 it stayed ahead with 1.2837 trillion won versus 1.1590 trillion won. Last year, Korea Investment & Securities widened the gap by becoming the industry’s first to surpass 2 trillion won in operating profit. The swings reflect differences in business structure. Mirae Asset has strengthened fee income from wealth management and brokerage while expanding overseas investing, a mix that can produce stable fees but also sharper earnings moves depending on global investment results. Korea Investment & Securities, by contrast, is stronger in investment banking and trading, using large-scale funding such as short-term notes to generate returns even during volatile markets. Analysts cite the global investment environment and whether the firms can establish their IMA businesses as key variables in the fight for the top spot. “Korea Investment & Securities has held the No. 1 position in recent years, but its IB- and trading-centered structure can lead to earnings swings with market volatility,” a financial investment industry official said. “With a strong market, Mirae Asset’s brokerage and WM-based income is relatively stable, and if investment returns support it, it can regain the lead at any time.” * This article has been translated by AI. 2026-04-27 19:03:12
  • SK hynix Tops 1.3 Million Won, Hits Record High on HBM Demand Hopes
    SK hynix Tops 1.3 Million Won, Hits Record High on HBM Demand Hopes SK hynix shares climbed past the 1.3 million won mark during trading, setting another all-time high as expectations grew for stronger demand for high-bandwidth memory, or HBM, driven by expanding artificial intelligence chip demand. According to the Korea Exchange, SK hynix was trading at 1,312,000 won as of 1:01 p.m., up 90,000 won, or 7.36%, from the previous session. Its market capitalization also expanded to about 935 trillion won, increasing its influence in the local stock market. Analysts cited expectations of rising HBM demand as AI server investment increases. With global big tech companies led by Nvidia continuing to invest in AI infrastructure, SK hynix is seen as a key beneficiary given its leading position in the HBM market. Samsung Electronics also rose, gaining 5,750 won, or 2.62%, to 225,250 won at the same time. The broader group of heavyweight chip stocks was moving higher, with Samsung’s market capitalization at about 1,316 trillion won. Investor sentiment was also supported by gains in the semiconductor sector on Wall Street in the final trading session last week. The Philadelphia Semiconductor Index jumped 4.32% on April 24 local time, reflecting expectations of stronger central processing unit demand tied to wider AI adoption and a first-quarter earnings report from Intel that beat market expectations. * This article has been translated by AI. 2026-04-27 13:06:15
  • SK hynix Hits Fresh Intraday Record Above 1.28 Million Won; Samsung Electronics Rises
    SK hynix Hits Fresh Intraday Record Above 1.28 Million Won; Samsung Electronics Rises SK hynix extended its rally Monday, setting another intraday all-time high as investors bet on rising demand for high-bandwidth memory, or HBM, used in artificial intelligence chips. As of 9:41 a.m., SK hynix shares were up 62,000 won, or 5.07%, at 1,284,000 won. Its market capitalization grew to about 915 trillion won, underscoring its expanding influence in South Korea’s stock market. The stock touched 1,288,000 won earlier in the session, a fresh record. Analysts attributed the gains to expectations that HBM demand will climb as investment in AI servers increases. With global big tech companies led by Nvidia continuing to spend on AI infrastructure, SK hynix’s competitiveness in the HBM market has come into sharper focus, they said. Samsung Electronics also rose, gaining 3,000 won, or 1.37%, to 222,500 won. The move was seen as reflecting strength in semiconductor shares in the last session of New York trading last week. In local time on April 24, the Philadelphia Semiconductor Index jumped 4.32%. The rally was driven by expectations for stronger central processing unit demand as AI adoption spreads, and by Intel’s first-quarter results beating market expectations, according to analysts. * This article has been translated by AI. 2026-04-27 09:48:15
  • NH Investment Raises Hyosung Heavy Industries Target on North America Growth
    NH Investment Raises Hyosung Heavy Industries Target on North America Growth NH Investment & Securities kept its “buy” rating on Hyosung Heavy Industries and raised its target price 25% to 4.5 million won from 3.6 million won, citing expanding North America orders, a medium- to long-term supply shortage and clearer earnings visibility from capacity expansion. Analyst Lee Min-jae said Hyosung Heavy Industries posted 4.2 trillion won in new orders in its heavy industries division in the first quarter, showing it has entered a business environment comparable to global peers. He added that a 2028 price-to-earnings ratio of about 26 times remains attractive given expected EPS growth. NH said the higher target reflects the value of the Changwon HVDC business and a third plant in Memphis scheduled to begin operations in 2028, as well as a higher EV/EBITDA multiple of 25 times, up from 24 times, following gains in global peers’ share prices. First-quarter results fell short of expectations due to temporary factors. On a consolidated basis, revenue rose 26% from a year earlier to 1.4 trillion won, and operating profit increased 48% to 152.3 billion won, but both missed the consensus forecast. NH attributed the shortfall to about 40 billion won in deferred profit after late-quarter shipments to North America were recorded as in-transit inventory. The shipments are expected to be reflected in second-quarter results. Order momentum remained solid. New orders in the heavy industries division totaled 4.2 trillion won in the first quarter, and the order backlog expanded to 15.1 trillion won. North America accounted for 77% of new orders and 53% of the backlog, rising quickly as the company benefits from increased investment in power infrastructure, NH said. Lee said delivery dates for projects in North America and Norway have been confirmed for 2031 and 2032, respectively, indicating a prolonged supply shortage. He said Hyosung Heavy Industries has also demonstrated it can command a high valuation within the global power infrastructure sector. * This article has been translated by AI. 2026-04-27 08:48:49
  • Foreign and Institutional Investors Turn Net Buyers in Kospi; Retail Investors Post Record 14.7 Trillion Won Net Selling
    Foreign and Institutional Investors Turn Net Buyers in Kospi; Retail Investors Post Record 14.7 Trillion Won Net Selling ◆Aju Economy Top News ▷Foreign and institutional investors reverse from net selling to net buying; retail investors post record 14.7 trillion won net selling -Over the past month, Kospi fund flows flipped, with foreign investors shifting from net sellers to net buyers. -Retail investors, meanwhile, have logged about 14.7 trillion won in net selling so far this month, the largest on record. -Foreign and institutional investors have focused their buying on heavyweight semiconductor shares such as Samsung Electronics and SK hynix, with net purchases topping 2.5 trillion won and 6.9 trillion won, respectively. -The move contrasts with last month’s sharp sell-off, when retail investors bought heavily; in the current upswing, they appear to be taking profits mainly in semiconductor stocks. -Some in the market expect the Kospi’s uptrend could extend further as expectations build for an improving semiconductor cycle and upward earnings revisions. ◆Key Reports ▷Mirae Asset Securities: “OCI Holdings target price raised on expectations for SpaceX cooperation” -Mirae Asset Securities raised its target price for OCI Holdings to 400,000 won from 270,000 won, citing expectations of a partnership with SpaceX and higher earnings estimates. It maintained a “buy” rating. -The firm said rising U.S. power demand could lift the value of generation assets and power purchase agreement prices, supporting both a higher sale price for OCI Energy assets and improved core earnings. -It also viewed the company’s polysilicon capacity expansion plan as a sign that cooperation with SpaceX is progressing, and cited strengths including low production costs and room to expand amid demand for non-China supply chains. -While results fell short of expectations in the near term, the firm said improvement should continue over the medium to long term on expansion and demand growth, keeping the stock as its top pick in the sector. ◆Major disclosures after the close (24th) ▷Erem decides on a 11 billion won rights offering ▷Hyosung Heavy Industries posts 152.3 billion won in first-quarter operating profit, up 48.8% from a year earlier ▷Dmoa decides on a 19 billion won rights offering ▷Woori Financial Group: “Additional acquisition of Woori Investment & Securities shares worth 1 trillion won” ◆Fund flows (as of the 23rd, excluding ETFs) Domestic equity funds: 63.5 billion won Overseas equity funds: 15.0 billion won ◆Today’s (Mon) key schedule China: Industrial profits (March); Standing Committee meeting of the National People’s Congress United States: 2-year Treasury auction; 5-year Treasury auction * This article has been translated by AI. 2026-04-27 07:27:17