Kioxia Surpasses Toyota, Nvidia Dominates Apple as Semiconductor Sector Reshapes Market Caps in Korea, U.S., and Japan ◆ Ajou Economics Major News ▷ Kioxia Surpasses Toyota, Nvidia Dominates Apple… Semiconductor Sector Reshapes Market Caps in Korea, U.S., and Japan - The semiconductor sector is gaining prominence in the Korean stock market as the benefits of artificial intelligence (AI) concentrate in this industry. Samsung Electronics, once viewed primarily as a smartphone-centric IT company, has emerged as a key beneficiary of the expanding demand for memory semiconductors in the AI era. - SK Hynix's transformation is even more dramatic. As a key supplier of high-bandwidth memory (HBM) for Nvidia, it is now considered one of the biggest beneficiaries in the AI landscape. Analysts note that the company has shifted from being heavily influenced by the DRAM market to becoming a central player in AI infrastructure expansion. - While Samsung Electronics and SK Hynix lead the Korean market, Nvidia effectively dominates in the U.S. Recently, Nvidia's market capitalization surpassed $5.2 trillion, making it the world's most valuable company. - In Japan, AI is also shaking up the stock market landscape. Kioxia Holdings, a NAND flash memory manufacturer, is at the forefront. Toyota, a symbol of Japanese manufacturing and previously the top company by market cap, is facing challenges as Kioxia's stock price has surged recently. - Kioxia's shares rose over 7% during trading, pushing its market capitalization above 45 trillion yen at one point, allowing it to surpass Toyota and become the second-largest publicly traded company in Japan. ◆ Major Reports: Unwinding Supply and Demand in Consumer Goods, Finance, and Materials - The previous day, the KOSDAQ materials sector was hot. In the past month, the sectors with increased market capitalization on KOSDAQ include semiconductors, machinery, and IT hardware, as AI's influence spreads while biotechnology takes a breather. - Recently, supply chain stocks in the U.S. and Japan have shown strength, but domestic stocks were previously weighed down by a concentration of demand in large-cap semiconductors, leading to a rebound on this day. - Expectations for post-election KOSDAQ revitalization policies and the implementation of the National Growth Fund were also reflected, with recent three-month net purchases by foreign investors and pension funds concentrated in IT hardware and banking sectors. ◆ Major Announcements After Market Close (June 4) ▷ Shinhan Securities decided to retire about 1 trillion won in treasury shares, stating it aims to enhance shareholder value. ▷ OSP announced a stock split of 0.5 shares per share. ▷ TSI Scientific announced a 3 billion won capital increase through a third-party allocation. ▷ Kolon Mobility Group acquired shares of AutoHub Selca for 61.7 billion won. ◆ Fund Trends (as of June 2, excluding ETFs) ▷ Domestic Equity: -307.7 billion won ▷ Overseas Equity: -22.9 billion won ◆ Key Schedule for Today (June 5) ▷ South Korea: Current Account (April) ▷ Eurozone: GDP Growth Rate (Q1) ▷ U.S.: Employment Report (May), Consumer Credit (April)* This article has been translated by AI. 2026-06-05 07:30:00

Zelensky Proposes Direct Talks with Putin to Discuss Peace Volodymyr Zelensky, the President of Ukraine, has proposed direct talks with Russian President Vladimir Putin, calling for a comprehensive ceasefire during negotiations. This proposal highlights the need for direct discussions between the parties involved as U.S. attention shifts to issues in Iran. On June 4, Zelensky stated in an open letter that "peace can only be achieved through direct engagement between Ukraine and Russia." He criticized the notion of waiting for the European conflict to regain U.S. focus, suggesting that it is a mistake to simply wait. He mentioned Switzerland or Turkey as potential venues for the talks. Russia confirmed receipt of the letter. The Kremlin stated that "President Putin is expected to be briefed on the letter." During a meeting with foreign journalists in St. Petersburg, Putin expressed his willingness to reach an agreement with Ukraine but emphasized that "certain compromises are necessary." However, Russia reiterated its stance on key issues. Putin questioned whether Zelensky has the legal authority to represent Ukraine and maintained that Russia's intention to control the entire Donbas region remains unchanged. He also suggested that the European Union could persuade Zelensky to cede the territory. In his open letter, Zelensky specifically addressed the critical region of Donetsk within Donbas, criticizing Putin for repeatedly delaying deadlines to occupy parts of Ukraine. He asserted, "You will not be able to occupy it." U.S. President Donald Trump reacted positively to the prospect of a meeting between the two leaders, stating, "It would be good if the two met," and added, "It needs to end." While he refrained from detailing what compromises might be necessary, he noted that both sides should be willing to make certain concessions. Russia has also expressed dissatisfaction with the U.S. role as a mediator. Russian Foreign Minister Sergey Lavrov claimed that the U.S. position on Ukraine is no different from that of its European allies, stating, "Biden's war has become Trump's war." Zelensky's proposal aims to revive stalled peace negotiations. However, with Russia dismissing the ceasefire request and raising concerns about the Donbas territory and Zelensky's representation, the potential for agreement remains limited.* This article has been translated by AI. 2026-06-05 07:18:00

Dow Hits Record High as AI Semiconductor Stocks Retreat The New York Stock Exchange closed mixed on June 4, with the Dow Jones Industrial Average reaching a record high, while semiconductor stocks faced pressure from profit-taking. The Dow rose 874.86 points, or 1.7%, to finish at 51,561.93. The Standard & Poor's 500 index gained 30.63 points, or 0.4%, closing at 7,584.31. In contrast, the tech-heavy Nasdaq composite fell 23.02 points, or 0.1%, to end at 26,830.96. Market activity shifted focus from large tech stocks to financial and healthcare sectors. A nearly 3% drop in international oil prices and declining U.S. Treasury yields helped restore some investor confidence in risk assets. Financial and healthcare stocks boosted the indices, while the Russell 2000 index, which tracks smaller companies, rose 1.4%. However, AI semiconductor stocks faced profit-taking pressure. Broadcom's shares plummeted over 12% after the company reported second-quarter revenues that fell short of market expectations and did not raise its AI revenue forecast for 2027. This decline affected major semiconductor stocks like AMD, Micron, and Qualcomm, which had recently seen rapid price increases due to AI optimism. Stocks that failed to meet performance expectations faced significant selling pressure. Macro indicators showed signs of economic slowdown. The number of new unemployment claims in the U.S. rose to 225,000, the highest level in four months. Additionally, the first-quarter non-farm productivity growth rate was revised down from 0.8% to 0.3%. However, the slowdown in the labor market was interpreted more as a signal for the Federal Reserve's interest rate trajectory rather than an immediate warning of a severe economic downturn. Expectations of easing tensions in the Middle East supported the market. Reports of a ceasefire agreement between Israel and Lebanon led Brent crude to drop to $95.03 per barrel, while West Texas Intermediate (WTI) fell to $93.04. The decline in oil prices contributed to easing inflationary pressures. Overall, the trading session was far from a broad rally in risk assets. While the Dow and S&P 500 gained, the Nasdaq was weighed down by weakness in semiconductor stocks. The market now looks ahead to the employment report and the Federal Reserve's interest rate decisions, as well as the performance expectations for AI-related stocks.* This article has been translated by AI. 2026-06-05 06:42:00

40% of Top Apps in Apple App Store Feature AI, Payment Growth Quadruples Apple's App Store is seeing a rapid increase in apps featuring artificial intelligence (AI) capabilities. The demand for generative AI is translating into higher payments for smartphone apps, contributing to the growth of the App Store. On June 4, Apple reported that more than 40 of the top 100 apps by payment volume last year included consumer-facing AI features. The payment growth rate for these apps was four times higher than that of top apps without AI functionalities. AI capabilities are not limited to chatbot applications. Apple noted that "AI features are spreading across a wide range of consumer apps, including document creation, image generation, productivity, search, and education." This indicates that AI is not only creating a separate app market but also driving payment expansion within existing apps. The overall App Store ecosystem has also grown. Citing research from an analytics group, Apple revealed that the App Store generated $1.4 trillion in developer payments and revenue last year, an increase of about $100 billion from the previous year's $1.3 trillion. By category, physical goods and services accounted for the largest share at $1.1 trillion. Digital goods and services totaled $149 billion, while in-app advertising reached $151 billion. However, not all of this revenue is attributed to Apple. The company stated that developers did not pay a commission on more than 90% of the payments and revenue generated within the App Store ecosystem. This highlights that the App Store serves as a platform connecting not only app sales but also external transactions in shopping, travel, delivery, and advertising. This announcement comes amid ongoing assessments that Apple's own AI services are lagging behind competitors. Instead of promoting its own AI apps, Apple is emphasizing its role in facilitating the distribution and payment flow of consumer AI services through the App Store.* This article has been translated by AI. 2026-06-05 06:36:00

Iran's Revolutionary Guard Demands Israeli Withdrawal from Lebanon Iran's Islamic Revolutionary Guard Corps (IRGC) Quds Force Commander Esmail Qaani has called for the withdrawal of Israeli forces from Lebanon. This demand comes shortly after a U.S.-brokered agreement was proposed, with Iran publicly pressuring for the Israeli withdrawal as a key condition. On June 4, Qaani stated, "The minimum requirement of the Lebanese resistance front is for Israel to retreat to its pre-war positions." The term "Lebanese resistance front" refers to the Iran-aligned militant group Hezbollah. Qaani asserted that Lebanon and Hezbollah have the right to determine any agreements on their own, emphasizing that the withdrawal of Israeli forces should be the starting point for any negotiations. His remarks were made amid discussions between the Israeli and Lebanese governments regarding a ceasefire implementation, facilitated by the United States. The proposed agreement hinges on a complete cessation of hostilities by Hezbollah and the exclusive control of certain areas in southern Lebanon by the Lebanese military. However, the positions of the key parties remain divided. Hezbollah has expressed opposition to the agreement, stating it was not directly involved in the negotiations, while Israel has indicated it will not accept demands for a withdrawal from southern Lebanon or a halt to military operations. Qaani's comments highlight that the central issue in the discussions surrounding the Lebanese ceasefire is the withdrawal of Israeli forces. The U.S. aims to reduce tensions on the Lebanese front ahead of peace negotiations with Iran, but disagreements over the withdrawal issue leave the implementation of any agreement uncertain.* This article has been translated by AI. 2026-06-05 06:27:00

Hezbollah and Israel Reject Lebanon Ceasefire Proposal Amid Tensions A ceasefire proposal for Lebanon, brokered by the United States, is facing significant challenges right from its announcement. Hezbollah, the Iran-aligned militant group in Lebanon, has rejected the agreement, while Israel has stated it will not comply with demands to withdraw from southern Lebanon or halt military operations. The refusal from both sides to accept key conditions has diminished the likelihood of implementation. On June 4, Hezbollah leader Naim Qassem publicly rejected the ceasefire plan agreed upon by the Israeli and Lebanese governments with U.S. mediation. He stated, "As long as Israel's occupation and airstrikes continue, we will not cease our resistance." The proposal calls for a complete cessation of fire by Hezbollah and the withdrawal of Israeli forces from areas south of the Litani River. It also includes provisions for the Lebanese army to control certain areas independently and to exclude non-state armed groups. Hezbollah appears to view the agreement as a demand for disarmament and retreat. The fact that Hezbollah was not directly involved in the negotiations, while the Lebanese government reached an agreement with Israel, has fueled their opposition. Israel has also drawn a line regarding any conditions that would limit its military actions. Israeli Defense Minister Yoav Gallant stated, "The Israel Defense Forces will not withdraw from Lebanon, nor will they cease military operations." Israeli airstrikes in southern Lebanon have continued. The Lebanese government has indicated that the agreement could take effect within 24 hours if all relevant parties approve it. However, with Hezbollah's rejection and Israel's insistence on maintaining its operations, moving to the implementation phase seems unlikely. This ceasefire proposal was initiated as part of efforts by the U.S. to lower the level of conflict on the Lebanon front ahead of negotiations with Iran. However, with both Hezbollah and Israel refusing to accept key conditions, the Lebanon front remains a variable in U.S.-Iran negotiations.* This article has been translated by AI. 2026-06-05 06:21:00

U.S. Sanctions Cuban President Miguel Díaz-Canel and Military Entities The United States has added Cuban President Miguel Díaz-Canel and military-related institutions to its sanctions list, intensifying pressure on the Cuban regime and its military-linked economic network. On June 4, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced that President Díaz-Canel has been included in the Specially Designated Nationals (SDN) list. His wife, Lis Cuesta Peraza, and Manuel Anido Cuesta, associated with him, are also subject to sanctions. The sanctions have been expanded to include figures from Cuba's past leadership. Alejandro Castro Espín, son of former Cuban National Assembly President Raúl Castro, and Raúl Alejandro Castro Calvo, associated with him, have also been added to the list. Institutional sanctions were also imposed. The Ministry of the Revolutionary Armed Forces (MINFAR), the Committees for the Defense of the Revolution (CDR), the Cuban Institute for Friendship with the Peoples (ICAP), the travel agency Amistur Cuba, and the mining company Minera La Victoria are now under sanctions. This action is part of Executive Order 14404, which targets those responsible for repression in Cuba and threats to U.S. national security and foreign policy. The U.S. aims to pressure the funding channels of the Cuban regime by targeting both current leadership and military institutions, as well as tourism and mining-related entities. On the same day, OFAC released a new FAQ regarding Cuba. It stated that the military-linked enterprise group GAESA, the Ministry of the Interior (MININT), and the Revolutionary Armed Forces are blocked, and that non-U.S. persons and foreign financial institutions that conduct business with entities in which they hold more than 50% interest could also face sanctions. As a result of these sanctions, assets within the U.S. will be frozen, and transactions with U.S. persons will be prohibited. Foreign companies and financial institutions that engage with Cuban military and government-related entities may also become subject to U.S. sanctions, increasing the burden of overseas transactions related to Cuba.* This article has been translated by AI. 2026-06-05 06:09:00

Korea's Trade Chief Meets EU Counterpart to Address Steel Regulation Concerns Yeo Han-goo, head of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, met with the European Union's trade chief to express concerns from South Korea's steel industry ahead of the EU's new steel regulations set to take effect next month. He also participated in discussions on World Trade Organization (WTO) reforms, emphasizing the need to address trade issues amid rising protectionism. The Ministry reported that Yeo attended the OECD Ministerial Council Meeting (MCM) in Paris on June 3-4, where he held bilateral talks with ministers from major countries to discuss trade matters. During his meeting with Maroš Šefčovič, the EU's Executive Vice President for Trade and Economic Security, Yeo conveyed the South Korean government's and industry’s concerns regarding the upcoming EU steel measures. He highlighted the critical role of South Korean steel as a key raw material in the European manufacturing supply chain, which includes sectors such as automotive, electronics, and machinery. He requested that sufficient market access be ensured during the implementation of the new regulations. Yeo also emphasized that South Korea is a key economic partner with the EU, having signed a free trade agreement (FTA), and has actively participated in international cooperation to address global steel overcapacity. He called for favorable consideration for South Korea in the allocation of tariff-free quotas. This meeting follows Yeo's discussions in Brussels on June 1 regarding the EU's steel measures, occurring just three days later. The government plans to continue high-level consultations to minimize the impact on the South Korean steel industry and secure market access before the new EU regulations take effect. While at the OECD, Yeo also attended an informal WTO trade ministers' meeting, where he stressed the need for WTO reforms. He stated, "The WTO is facing a crisis where it cannot make meaningful decisions," and called for reforms to the decision-making structure and the restoration of its normative functions to adapt to the changing trade environment. He proposed expanding the use of plurilateral agreements to address new trade issues such as digital trade and artificial intelligence (AI), as well as making the practice of duty-free electronic transmissions permanent and expediting the implementation of the Investment Facilitation for Development Agreement (IFDA). He also suggested the necessity of holding a ministerial-level interim review meeting ahead of next year's WTO Ministerial Conference. At the OECD Ministerial Council Meeting, South Korea participated as a vice-chair in celebration of its 30th anniversary of OECD membership. Yeo led discussions in various sessions, including delivering keynote speeches on industrial policy, trade, and investment. In the industrial policy session, he introduced initiatives on manufacturing AI transformation, energy transition policies, and the regional balanced development strategy known as '5 poles and 3 special zones.' He emphasized that while the importance of industrial policy is growing due to supply chain instability and economic security concerns, it should focus on promoting productivity innovation and technology diffusion rather than replacing markets. Additionally, Yeo held discussions with key officials from the United States, including USTR's Jamieson Greer, as well as representatives from the UK, France, Finland, Brazil, and Argentina, addressing topics such as steel regulations, critical mineral supply chains, FTA negotiations, and expanding investment cooperation.* This article has been translated by AI. 2026-06-05 06:03:00

Paris Invites Korean Tourists with New Attractions Amid Monet's 100th Anniversary Paris is actively promoting new tourism content to attract Korean travelers this year, coinciding with the 140th anniversary of Korea-France relations and the 100th anniversary of the death of Impressionist painter Claude Monet. The Korean market holds significant importance in Paris's tourism industry. According to the French tourism office, approximately 267,000 Korean tourists visited the Île-de-France region last year, accounting for 9% of Asian visitors. Notably, Korean tourists' spending surged by 35% to around €286 million, with an average stay of 5.7 nights, significantly higher than the overall average of 4.1 nights for international visitors. Additionally, 51% of these tourists opted for luxury accommodations rated four stars or higher, indicating a preference for quality and convenience. To engage Korean travelers, identified as a key target for Paris tourism, the French tourism office and the Paris Regional Tourism Board held a "Paris Regional Tourism Workshop" on June 4 at The Plaza Hotel in Seoul. During the event, Ingrid Archikian emphasized, "Korea is a core market with a strong and genuine bond with Paris. The city has evolved from a place to see to a destination to experience life." Jeong Hye-won, acting head of the French tourism office in Korea, noted, "Korean travelers tend to stay longer and spend more. They exhibit a mature travel attitude that respects local culture and rules. For this reason, our local tourism partners deeply trust and welcome Korean visitors." ◆ A Year of Cultural and Artistic Festivals: From Monet's 100th Anniversary to Special Programs for Koreans This year, Paris is transforming into a vibrant hub for cultural and artistic festivals. In particular, to commemorate the 100th anniversary of Monet's death, over 100 major events will take place across the Île-de-France and Normandy regions until January 2027. The scale of exhibitions is also impressive. Starting this fall, the Orangerie Museum will host a special exhibition featuring around 40 of Monet's works gathered from around the world. The Marmottan Monet Museum will present a special exhibition titled "From Monet to Hockney." Experiential spaces following in the footsteps of Impressionist masters are also expanding. The beautiful "Vetheuil" mansion, where Monet lived, will open its first permanent exhibition program to the public. A new tourism route linked to Giverny will highlight Impressionism, focusing on key sites such as Auvers-sur-Oise, Barbizon, and the former residences of Monet and Camille Pissarro. In addition to Monet, significant exhibitions featuring other Impressionist painters await visitors. The Grand Palais will host a large-scale "Cézanne Special Exhibition," while the Musée d'Orsay currently features an exhibition themed around "Renoir and Love." This year marks the 140th anniversary of Korea-France relations, and Paris will host a variety of cultural events focusing on Korea throughout the year. Notably, the National Museum of Asian Arts, Guimet, will hold a series of major exhibitions related to Korea. The Cernuschi Museum, the municipal Asian art museum in Paris, will also prepare special exhibitions related to Korean culture for local audiences. Additionally, the Korean Cultural Center in France plans to present various events throughout the year to celebrate the 140th anniversary. Major heritage sites under the French National Monuments Center have also undergone renovations. The Hôtel de la Marine, which overlooks Place de la Concorde, has been revamped to offer an immersive audio guide available in nine languages, along with a newly renovated caretaker's apartment and reception room tour. The Panthéon, a mausoleum for notable figures, will host an exhibition titled "The Little Life" in collaboration with the Pompidou Center from September 2027 to February 2028. Furthermore, the "Palais du Tau," a museum dedicated to the history of royal coronations held at Reims Cathedral, is set to reopen by the end of this year. The immersive digital art center "Atelier des Lumières," converted from an old foundry in Paris, will feature a stunning exhibition utilizing 140 video projectors. Visitors can experience masterpieces by Da Vinci, Michelangelo, and Raphael, as well as a dinosaur-themed exhibition in a 360-degree format. Additionally, new attractions will be introduced, including the opening of a "Frozen" themed zone at Disneyland Paris and the reopening of the Notre-Dame Cathedral tower, creating fresh tourism experiences. Major events are also set to attract fans of popular culture and sports. This summer, the Stade de France will host a large concert by the K-pop group BTS, along with performances by global artists such as Bruno Mars and Celine Dion across various venues in Paris. The excitement of sports festivals is also heating up. This summer, Paris will host its first "eSports World Cup," alongside the ongoing French Open tennis tournament, the prestigious Tour de France cycling race, and the European Swimming Championships. In September, the French Open golf tournament, which began in 1906, will take place at Le Golf National, the venue for the Paris Olympic golf event. ◆ Private Tours and Eco-Friendly Customized Tourism Landmarks Key landmark tour programs favored by Korean travelers have also evolved. The Eiffel Tower, which attracts approximately 6.5 million visitors annually, now offers a private tour called "Le Grand Tour" with interpretation services for small groups. The Seine River cruise boat, Bateaux-Mouches, has introduced a new "Sparkling Cruise" that includes half a bottle of champagne. Additionally, an individual QR code system has been implemented for easy navigation of the route. Plans are also in place to hybridize the vessels for sustainable tourism and obtain low-carbon certification. The hop-on, hop-off bus tour provider, Tootbus, is operating the world's first 100% open-top electric buses. During the tours, travelers can receive personalized recommendations for attractions through an AI Paris city guide that supports Korean language during both the tour and walking explorations. Unique experiences in the suburbs of Paris are also noteworthy. The "Château de Vaux-le-Vicomte," once the residence of 17th-century finance minister Nicolas Fouquet, will host a candlelit night opening with 2,000 candles and workshops to learn about French hospitality culture. Additionally, a new landmark, the "Triangle Tower," a mixed-use building standing 180 meters tall with 42 floors, is set to be constructed at the Porte de Versailles exhibition site. ◆ Expanding Accommodation Infrastructure to Enhance Accessibility for Sustainable Tourism The quality of travel is also being enhanced through modernized accommodation infrastructure. Marriott has completed renovations of key hotels in Paris. The Marriott Rive Gauche Hotel has undergone a complete renovation of its lobby, restaurant, and conference facilities, while the Marriott Champs-Élysées Hotel and Le Méridien Arc de Triomphe have also been revamped. The traditionally styled "Plaza Athénée" hotel has introduced Parisian-style wooden floors, Japanese-style electronic bidets, and state-of-the-art air conditioning in all rooms following its remodeling this year. Located on Montmartre Hill, the "Boeuf Montmartre Restaurant" offers authentic French cuisine and live performances, along with 15 luxury apartment-style rooms called "Maison La Bohème" on the upper floors, providing a unique lodging experience. Paris's infrastructure and transportation accessibility are continually improving with a focus on sustainable tourism. The legacy of the 2024 Paris Olympics and Paralympics aims to provide tourists with a more responsible and comfortable travel environment. Notably, the "CDG Express," scheduled to open in 2027, will connect Charles de Gaulle Airport to downtown Paris in just 20 minutes. Additionally, the "Grand Paris Express" project will gradually open four new subway lines, including Line 18, which connects to Versailles, significantly enhancing regional accessibility by 2031.* This article has been translated by AI. 2026-06-05 06:03:00

Business Leaders Express Concerns Over New Dual Listing Guidelines Concerns are rising that the administration of Lee Jae-myung will hinder domestic companies' ability to secure funding for future growth by implementing guidelines that generally prohibit dual listings for subsidiaries and affiliates, allowing exceptions only in specific cases. There are also worries that detailed regulations favoring minority shareholders could infringe on the rights of controlling shareholders. According to sources in the securities industry, the Korea Exchange is expected to announce a draft of the dual listing ban guidelines and detailed regulations soon. Following a period for public comment and approval from the Financial Services Commission's Securities and Futures Commission, the guidelines are anticipated to take effect in July. This move aims to clarify the government's March announcement regarding the prohibition of dual listings for parent companies with exceptions. Conglomerates such as SK Group, HD Hyundai Group, and LS Group, which were preparing for initial public offerings (IPOs) of their affiliates, are now in a state of emergency. They have halted all IPO plans and are cautiously awaiting the government's announcement. Financial investors are increasingly pressuring these companies to retrieve their investments amid fears of postponed or canceled IPOs. The dual listing ban is a key policy initiative of the Lee Jae-myung administration aimed at modernizing the domestic capital market and protecting minority shareholders. The goal is to prevent the dilution of shareholder rights for parent company investors due to additional listings following corporate spin-offs. In the past, complaints arose from minority shareholders of LG Energy Solution and Kakao affiliates after their listings, prompting the government to establish preventive measures. Jo Dong-geun, a professor of economics at Myongji University, stated, "It is appropriate to fundamentally prohibit dual listings that involve spinning off specific business segments for re-listing to protect minority investors. Allowing such practices in the past was a policy mistake, and there is a need for stricter regulations through amendments to capital market laws." However, there are significant concerns about the potential negative impact on the IPO market. Following the government's announcement, only one company, K-Bank, has gone public on the KOSPI this year, a sharp decline from four companies in the same period last year. LS E6 Solutions had planned an IPO this year but withdrew its plans amid the dual listing controversy. Experts worry that domestic companies may seek to avoid the dual listing ban by delisting from the KOSPI and pursuing overseas listings instead. Wang Soo-bong, a professor at Ajou University, warned, "If the dual listing ban is implemented, we may see cases where parent companies pursue overseas listings to minimize capital burdens. This would be a loss for the country, and it is questionable whether these companies would receive proper valuations abroad." Predictions indicate that securing new funding for business growth will also become more challenging. Previously, companies could attract investments from financial investors by using equity as collateral for new business development and then repay them during an IPO. However, with the dual listing ban, this growth strategy will no longer be viable. Consequently, companies will need to rely on profits from their core businesses or issue corporate bonds, which carry significant interest burdens. This raises the risk of both core and new businesses suffering, likely deterring companies from pursuing new ventures. One alternative suggested is for parent companies to attract direct investments from financial investors through third-party allocations of new shares. However, accurately valuing new businesses may prove difficult, and there could be backlash from minority investors due to share dilution. An academic source, who requested anonymity, noted, "With the dual listing ban blocking affiliate IPOs and increasing financial burdens making bond issuance difficult, the easiest option for companies will be capital increases. Considering domestic investors' negative perception of equity offerings, there is a risk that the parent company's value could decline compared to before the implementation of the regulations." In the investment banking sector, there are concerns that global financial investors may increasingly bypass South Korea due to uncertainties surrounding capital recovery. This could lead to significant capital inflows into overseas markets where listings are relatively unrestricted, potentially disadvantaging South Korean companies during their growth stages.* This article has been translated by AI. 2026-06-05 05:03:00