Journalist

Ryu So-hyun
  • Foreign Money Pours Into Samsung, SK Hynix as Korea Stocks Rally on Semiconductors
    Foreign Money Pours Into Samsung, SK Hynix as Korea Stocks Rally on Semiconductors The Kospi extended its run of record highs for a second straight session, easily clearing the 6,400 level. With uncertainty lingering over whether the war in the Middle East will end, the rally has been clear, but caution has also grown. The gap between the headline index and individual stocks has widened, with gains increasingly concentrated in the market’s two largest semiconductor names, Samsung Electronics and SK Hynix. About 40% of combined buying by institutions and foreign investors has flowed into the two stocks, and the exchange-traded fund market is also being reshaped around semiconductors. Analysts said the concentration could intensify further if a 2x leveraged ETF tied to Samsung Electronics and SK Hynix launches in late May. Semiconductors drive most of Kospi market-cap gains 22일 Korea Exchange data showed that as of April 21, when the Kospi set a record, Samsung Electronics’ market capitalization stood at 1,280.335 trillion won and SK Hynix’s at 872.348 trillion won. Their weights in the Kospi were 24.45% and 16.66%, respectively, putting their combined share above 40%. At the end of last year, their weights were 20.41% and 13.63%, meaning they rose 4.04 percentage points and 3.03 percentage points in a little over four months. From Dec. 30 to April 21, the Kospi’s total market capitalization increased by 1,758 trillion won. Over the same period, Samsung Electronics and SK Hynix together accounted for 967 trillion won of that increase, more than 55%. Nearly 70% of April foreign net buying went to the two chipmakers From April 1 to 21, institutions posted net purchases of 5.68 trillion won in the domestic stock market. Samsung Electronics (1.784 trillion won) and SK Hynix (555 billion won) made up 41% of that total. Foreign investors were even more concentrated. Of their 4.999 trillion won in net buying over the same period, nearly 70% went to Samsung Electronics (2.165 trillion won) and SK Hynix (1.319 trillion won). The strength in large semiconductor stocks has also widened the gap between the Kospi and the Kosdaq. The Kospi’s market capitalization rose 50% from 3,477.8404 trillion won at the end of last year to 5,236.2070 trillion won, while the Kosdaq grew 29% from 505.9260 trillion won to 653.0304 trillion won. As of April 21, Kosdaq’s top company by market value, EcoPro, was valued at 22.2270 trillion won, below the level of the Kospi’s 40th-largest company, SK Innovation, at 22.5690 trillion won. Semiconductor-heavy ETFs gain popularity The semiconductor tilt is also showing up in ETFs. Asset managers have been rolling out products that hold Samsung Electronics and SK Hynix as core positions, stepping up competition in semiconductor-focused ETFs. The “RISE Samsung Electronics SK Hynix Bond Mixed 50 ETF,” listed in February, surpassed 1 trillion won in net assets as of April 20, setting the fastest record among domestic bond-mixed ETFs. Samsung Asset Management, Hana Asset Management and Kiwoom Investment Asset Management have launched similar products. Mirae Asset Management introduced the “TIGER Semiconductor TOP10 Covered Call Active ETF,” which concentrates on semiconductor companies while using a covered-call strategy. Korea Investment Management is running the “ACE AI Semiconductor TOP3+ ETF,” which invests about 75% in three stocks: Samsung Electronics, SK Hynix and Hanmi Semiconductor. Leveraged ETF launch in May could accelerate inflows Market participants expect the concentration to deepen, particularly with a leveraged ETF tied to Samsung Electronics and SK Hynix scheduled for late May. Analysts said leveraged products can amplify inflows and outflows as prices move, potentially reinforcing the large-cap-driven trend. Many in the market expect semiconductor strength to persist, citing improving earnings expectations rather than flows alone. This month, major domestic securities firms raised profit forecasts for the semiconductor sector, projecting continued increases in average selling prices centered on high-bandwidth memory, or HBM. Kim Dong-won, a researcher at KB Securities, said, “Companies’ adoption rate of AI agents will rapidly expand from 5% in 2025 to around 40% by the end of 2026,” adding that “memory is emerging as a key factor that determines overall AI system performance.” A financial investment industry official said, “As long as the AI investment cycle continues, it will be difficult for semiconductor-centered fund flows to reverse easily,” and added, “With the expansion of the ETF market, the concentration in large-cap stocks is being structurally reinforced.” 2026-04-22 16:55:52
  • LG Innotek hits record intraday high on expectations for strong substrate business growth
    LG Innotek hits record intraday high on expectations for strong substrate business growth LG Innotek set an intraday record high on expectations that a boom in its substrate business will lift earnings. As of 2 p.m. on Tuesday, LG Innotek was trading at 489,500 won, up 64,500 won, or 15.18%, from the previous session, according to the Korea Exchange. The stock rose as high as 505,000 won during the session, marking a new all-time high. Brokerages said market conditions are improving quickly for high value-added substrates such as multilayer boards (MLB) and flip-chip ball grid array (FCBGA). They said a trend of higher supply prices that began with FCBGA is spreading across the broader substrate lineup. U.S. big-tech customers are reported to be placing orders early and offering investment support to secure FCBGA supply. As global substrate makers focus on expanding FCBGA capacity and developing technology, supply of some lower-end substrates is becoming constrained, the report said. The supply limits are also spreading to other products, including system-in-package (SiP) substrates, adding to upward pressure on prices. The industry expects benefits to widen in stages, from high-layer FCBGA to general-purpose and low-priced FCBGA, and then to SiP substrates. Park Hyeong-woo, an analyst at SK Securities, said LG Innotek’s substrate division is expected to post about 1.4 trillion won in revenue and about 200 billion won in operating profit this year. He said the company’s current valuation is undervalued compared with domestic substrate makers with similar earnings scale. Park added that growth prospects for SiP substrates remain intact after FCBGA, and that considering the largest customer’s 2027 production expansion plan, year-on-year profit growth is likely to continue for six consecutive quarters. * This article has been translated by AI. 2026-04-22 14:12:57
  • Dalba Global shares rise more than 6% on expectations of strong Q1 earnings
    Dalba Global shares rise more than 6% on expectations of strong Q1 earnings Dalba Global shares climbed more than 6% in early trading on expectations of strong first-quarter earnings. According to the Korea Exchange, Dalba Global was trading at 211,000 won as of 9:17 a.m. on Tuesday, up 12,300 won, or 6.19%, from the previous session. The gain came as brokerages issued upbeat forecasts for the company’s first-quarter performance. In a report released Tuesday, Shinyoung Securities projected first-quarter revenue of 166.4 billion won and operating profit of 38.8 billion won, up 46% and 29%, respectively, from a year earlier. It estimated an operating margin of 23.3%. Lee Gyoseok, an analyst at Shinyoung Securities, said growth in Western markets is expected to remain strong, supported by an expansion of offline operations in the United States and solid Amazon sales in Europe. He added that sales trends in the company’s core markets — Japan, Russia and South Korea — also remain steady. Lee said improved profitability in Western markets, driven by category diversification and a larger business-to-business share, underpins the firm’s forecast for a 20.7% operating margin in 2026. * This article has been translated by AI. 2026-04-22 09:33:29
  • SK Securities Raises Seobu T&D Target Price 54% on Hotel Strength, Development Outlook
    SK Securities Raises Seobu T&D Target Price 54% on Hotel Strength, Development Outlook SK Securities on Tuesday raised its target price for Seobu T&D to 20,000 won from 13,000 won, a 54% increase, citing a strong hotel business and accelerating real estate development momentum. It maintained its “buy” rating. Na Seung-du, a researcher at SK Securities, said hotel occupancy has “effectively recovered to near-full levels,” while average daily room rates still have room to rise. He added that profits from unit sales should become more visible as site development ramps up starting this year. Seobu T&D’s hotel business has shown a clear rebound since the pandemic-era downturn, supported by an increase in foreign tourists. The Yongsan Dragon City hotel is posting high occupancy on both weekdays and weekends, staying at levels close to full capacity. Because hotel room supply is difficult to expand quickly, SK Securities said higher room rates are likely to be a key driver of earnings improvement. It said the property’s location, hotel grade and facility quality suggest ample pricing power, and that steady demand should continue in line with stronger interest among foreign visitors to South Korea. In real estate development, growth drivers are also coming into focus as projects at the Yongsan Najin Shopping Center site and the Seobu Truck Terminal site in Sinjeong-dong, Yangcheon-gu, move into full swing, lifting expectations for higher asset values and sales profits. The Yongsan Najin site is aiming to break ground in October, with office facilities and high-end officetels planned, and some presales expected to begin from year-end. The truck terminal site is being pursued as a mixed-use complex combining an urban fulfillment facility with commercial, office and residential space. SK Securities said that in similar past cases, share prices tended to respond when sales profits began to materialize, suggesting the projects could become a catalyst. It added that Seobu T&D’s current valuation can be explained by hotel growth alone, and that the investment case could strengthen further if development gains are reflected.* This article has been translated by AI. 2026-04-22 09:05:05
  • NH Investment & Securities’ Standard OCIO Wrap Grows as Volatility Drives Demand
    NH Investment & Securities’ Standard OCIO Wrap Grows as Volatility Drives Demand Market volatility driven by external uncertainty, along with a shift of funds into equities, is fueling rapid growth in standardized OCIO (outsourced chief investment officer) products designed for individual investors and small and midsize companies. The products are also seen as helping improve the profit structure of OCIO businesses, long criticized for low profitability. As of April 21, the financial investment industry said NH Investment & Securities’ standardized OCIO product, the “NH Columbus EMP Wrap,” had 370 billion won in assets under management at the end of the first quarter. That was up 100 billion won from 270 billion won at the end of last year. With the product at about 100 billion won at the end of 2024, the pace of inflows has accelerated, the industry said. The increase was attributed to rising demand from small and midsize corporate clients seeking to track stock-market returns during an upswing, and from individual investors looking for volatility management. Returns have also stood out. The product has gained 5.3% since the start of the year. Since its 2019 launch, it has posted an average annual return of about 10% over seven years. The average return over the past three years was 15%, and the past one-year return was 21.15%, helped by base effects after volatility widened last year amid tariff-related issues. OCIO services typically provide customized asset-allocation management for large institutions such as pension funds. The NH Columbus EMP Wrap standardizes that approach into a model portfolio so it can be used by small and midsize companies and individual investors. Demand has grown as an alternative for companies that fall short of the minimum subscription for customized OCIO, about 50 billion won. Individuals can subscribe with at least 30 million won. The standardized format is seen as attractive because it lowers entry barriers and allows flexible inflows and outflows. With no fixed contract term, liquidity management is easier. Investors can also use the same model portfolios applied to large institutional clients without building a separate asset-allocation strategy. Unlike mutual fund-style OCIO products offered by asset managers, the wrap structure is managed by account, allowing responses tailored to each client’s tax and accounting schedules. Industry participants described it as combining the pooled-management advantages of funds with the customized oversight of discretionary accounts. Standardized products still account for only about 10% of NH Investment & Securities’ total OCIO assets under management excluding large funds, which stand at 3.7 trillion won. But they have contributed more on profitability, the industry said. With standardized OCIO assets rising about 100 billion won so far this year, the firm’s overall OCIO fee rate increased to about 17 basis points from 11 basis points at the end of last year, partially offsetting the low-fee structure of traditional OCIO operations. NH Investment & Securities expanded its standardized OCIO lineup in February by launching “NH Columbus Income.” The product allocates assets mainly to bonds and alternative investments, excluding the equity portion, targeting corporate investors wary of volatility. An industry official said more companies that previously relied on deposits or short-term financial products are moving into risk assets to boost returns, and demand to keep pace is flowing into customized OCIO offerings. 2026-04-21 16:14:55
  • HD Construction Equipment Hits Intraday Record on Europe Generator Engine Deal Hopes
    HD Construction Equipment Hits Intraday Record on Europe Generator Engine Deal Hopes HD Construction Equipment climbed more than 7% intraday and set a record high after news of a supply contract for generator engines in Europe. According to the Korea Exchange, shares were up 12,600 won, or 7.58%, at 177,500 won as of 2:30 p.m. The stock touched 178,000 won during the session, its highest level on record. The gains were widely attributed to expectations the company will expand its push into the European market. The company said the previous day it signed a contract to supply 264 units of its G2 engine for generators to Portuguese generator maker Grupel. The deal is aimed at meeting rising demand for mobile generators in Europe and replacement demand driven by tighter emissions rules. The G2 is a small engine that meets Europe’s Stage V emissions standards and features a high-pressure fuel injection system and fuel-efficiency improvements designed to boost performance and durability. HD Construction Equipment said it plans to pursue additional orders for mid-sized engines such as the DX05 and DX08. It aims to lift European power-generation engine sales from 40 billion won to 67 billion won by 2030, and to expand total power-generation engine sales to about 770 billion won from 370 billion won in 2025. Market watchers also point to growth in Europe’s generator market. Research firm Mordor Intelligence forecasts the European diesel generator market will grow from $3.87 billion in 2026 to $4.74 billion in 2031, an average annual increase of 4.18%. Brokerage analysts have also maintained a positive outlook on the stock as industry conditions improve. Samsung Securities analyst Han Young-soo said, “As the global construction equipment market enters a rebound phase, HD Construction Equipment, which has a large base effect, is expected to grow faster,” adding that demand tied to U.S. dealer inventory buildup, stabilization in Europe, firm raw material prices and the industry cycle point to a continued recovery. 2026-04-21 14:55:23
  • Hana Securities raises Kia target price 40% to 210,000 won on earnings outlook, SDV and robotics
    Hana Securities raises Kia target price 40% to 210,000 won on earnings outlook, SDV and robotics Hana Securities on Wednesday raised its target price for Kia by 40% to 210,000 won from 150,000 won, citing higher earnings estimates, improved readiness in software-defined vehicles (SDVs) and robotics, and a higher valuation multiple for its auto business. It kept its rating at buy. Analyst Song Sun-jae said the firm lifted its 2026 operating profit estimate by 3% to reflect new-model launches and foreign-exchange effects, adding that the expected dividend yield is 4.5%. He said Hana also raised the target multiple for Kia’s auto business to eight times from seven times as it sees improving long-term competitiveness in SDVs and robotics. The higher target price also reflects the value of Kia’s stakes in Hyundai Mobis and Boston Dynamics, he said. Kia’s fourth-quarter results met market expectations. On a consolidated basis, revenue rose 3% from a year earlier to 28.09 trillion won, while operating profit fell 32% to 1.84 trillion won. Operating margin slipped 3.4 percentage points to 6.6%. Global wholesale sales fell 1% to 763,000 vehicles, but gains in North America and India offset weakness in some regions. Hana said higher average selling prices, cost cuts and foreign-exchange effects helped support results, and that the profitability decline was limited when excluding tariff-related costs. Hana’s medium- to long-term view remained positive. It said that despite slower growth in global industry demand in 2026, Kia could improve volume and model mix in key markets through new launches focused on higher-priced vehicles. It cited EV4, EV5, PV5 and Seltos in South Korea; Carnival HEV, Telluride and Seltos in the United States; EV4, EV5, EV2 and K4 in Europe; and Seltos and a strategic electric vehicle in India. Kia has guided for 2026 consolidated revenue of 122.3 trillion won and operating profit of 10.2 trillion won, targeting an operating margin of 8.3%. Song said Kia told a conference call it aims for 3.35 million wholesale sales in 2026, up 6.8% from the prior year. In the United States, he said Kia expects growth and a better mix led by the Telluride — to be launched as a new model for the first time in seven years — with its target rising to 180,000 units from 120,000, along with the Carnival HEV and Seltos. In Europe, he said sales of EV models launched in 2025 are expected to ramp up, and Kia plans to add the lower-priced EV2 model. * This article has been translated by AI. 2026-01-29 08:24:00
  • INTERVIEW: At Wooris Gangnam center, Kim Jae-sang builds home for super-rich
    INTERVIEW: At Woori's Gangnam center, Kim Jae-sang builds home for super-rich SEOUL, October 02 (AJP) - With global stock markets buoyant and demand for tangible assets rising, wealthy investors in South Korea are reassessing where to put their money. For Kim Jae-sang, head of Gangnam Financial Center of Woori Securities, the answers lie in gold — and in Asia’s two largest economies. “Gold has transitioned from a safe haven and inflation hedge to an investment asset,” Kim said in an interview. “And when it comes to equities, China and Japan are increasingly becoming key regions for investment.” Kim, a veteran of South Korea’s private banking sector since 2004, joined Woori Securities in April after leading Shinhan Investment’s Gwanghwamun Financial Center. His move was part of a broader effort by Woori Securities to strengthen its still-nascent retail and wealth management business, building on its successes in investment banking. At the newly relocated and expanded Gangnam Financial Center, which reopened Sept. 16, Kim oversees a team catering to high-net-worth clients. The center currently manages about 1.7 trillion won ($1.2 billion) in assets, with a goal of reaching 2 trillion won by year’s end. Asked where he sees the most promising opportunities, Kim pointed to Chinese electric vehicle makers and Japanese equities. “China has companies that are leading the EV transition,” he said. “Japan, despite rate hikes, remains a market where index investing is attractive.” He added that wealthy investors today are more pragmatic, preferring stability and intuitive vehicles such as exchange-traded funds. “What we see now is a growing interest in long-term planning — global equities, alternative investments, AI-driven industries, and intergenerational wealth transfer.” Kim’s strategy at Woori is to harness the client base of Woori Bank, offering tailored solutions that combine global stocks, bonds and alternative assets. In the first half of this year alone, Woori Securities carried out more than 1,000 joint operations with corporate clients, with over 400 at the Gangnam Center. For Kim, the challenge is also personal: to establish Woori Securities as a serious player in retail wealth management. “The potential is there,” he said. “What we’re building now is the foundation.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-02 14:57:18