Goldman Sachs Raises KOSPI Target to 12,000, Citing Semiconductor Boom ◆Ajou Economic Key News ▷Goldman Sachs Raises KOSPI Target to 12,000, Citing Semiconductor Boom - Goldman Sachs has raised its 12-month target for the KOSPI index from 9,000 to 12,000, citing a boom in AI semiconductors and improved corporate earnings. - The firm assesses that there is approximately a 36% upside potential based on the current index, reinforcing its optimism about the South Korean stock market. - The AI semiconductor supply chain, led by Samsung Electronics and SK Hynix, is driving the rise of the Korean stock market, with South Korea and Taiwan identified as key drivers of the Asian market rally. - Goldman Sachs analyzed that the South Korean stock market has shown relative resilience against energy price shocks due to geopolitical risks in the Middle East. - However, the firm warned of increased risks of short-term overheating and corrections due to the influx of leveraged ETF funds and concentration in AI semiconductor stocks. ◆Major Reports from Previous Trading Day Meritz Securities: "Hyundai Mobis Expected to Benefit from Atlas Production... Target Price Up" - Meritz Securities has raised its target price for Hyundai Mobis to 900,000 won, maintaining a 'Buy' rating, reflecting the growth potential of its actuator business for the humanoid robot Atlas. - Hyundai Mobis plans to establish a local production base in the U.S. for the Atlas actuators, having acquired technology from Boston Dynamics, with revenue recognition expected to begin in 2027. - The company is expected to expand its business scope beyond actuators to include sensors and controllers, aiming to become a key supplier of core components for robots. - Meritz Securities anticipates that if Hyundai Mobis achieves its actuator production target of 350,000 units by 2028, it will generate 525 billion won in related revenue and 157.5 billion won in EBITDA. ◆Major Announcements After Market Close (June 3) ▷ S&P Upgrades LG Electronics' Credit Rating to BBB+ ◆Fund Trends (As of June 1, Excluding ETFs) Domestic Equity: -113.8 billion won Overseas Equity: -57.9 billion won ◆Key Schedule for Today (Thursday) South Korea - Foreign Exchange Reserves (May) United States - Layoff Numbers (May), Non-Farm Productivity (Q1), Unit Labor Costs (Q1) * This article has been translated by AI. 2026-06-04 07:21:00

Anthropic Selects Morgan Stanley and Goldman Sachs as IPO Underwriters AI startup Anthropic has reportedly chosen Morgan Stanley and Goldman Sachs as underwriters for its initial public offering (IPO). According to Bloomberg on June 3, Anthropic selected Morgan Stanley and Goldman Sachs to lead the IPO process, with JPMorgan Chase also participating in the deal. However, the listing procedures and conditions have yet to be finalized. Bloomberg noted that discussions are ongoing, and additional banks may join or details may change. Anthropic, Morgan Stanley, Goldman Sachs, and JPMorgan declined to comment on the matter. On June 1, Anthropic submitted a draft confidential securities registration statement to the U.S. Securities and Exchange Commission (SEC). The company may pursue its IPO after the SEC review, taking market conditions into account. The number of shares to be offered and the pricing have not yet been determined. The IPO could occur as early as October. Recently, Anthropic was valued at $96.5 billion (approximately 1.477 trillion won) during its latest funding round. Anthropic operates the chatbot Claude and is considered a major player in the generative AI market, alongside OpenAI, with significant investments from Amazon and Google. The company's actual financial structure and offering size are expected to be clarified after the public securities registration statement is filed.* This article has been translated by AI. 2026-06-04 07:18:00

Gmarket Cultivates Star Sellers Through Data and Promotions Gmarket is actively cultivating star sellers by discovering small brands, local producers, and new sellers with competitive products. On June 3, Gmarket announced that its category managers have collaborated with sellers to identify high-potential products, resulting in food brands that have been on the platform for less than two years reaching category leadership, and local agricultural products achieving sales in the tens of thousands. Gmarket supports the growth of new brands by analyzing sales data to suggest product assortments and pricing strategies, while also providing customer engagement opportunities through major promotions and live broadcasts. The processed food brand "Myeongjang," which joined Gmarket and Auction in 2024, has become a star seller in less than two years. The brand's kimchi stew, priced competitively at around 2,000 won per serving, aligns with the average price of processed foods in the mid-20,000 won range, leading to positive customer responses. Another notable example is "Saengsaeng Story," a seller representing the largest stevia tomato producer in the Buyeo region. Gmarket enhanced the visibility of their products during promotional events like Big Smile Day, resulting in transaction amounts of approximately 760 million won and 56,000 orders during the event period. The global robot vacuum brand MOVA has also expanded its customer base through Gmarket. By analyzing competing products, Gmarket's home appliance category manager planned exclusive benefits and supported promotional visibility, leading to sales of about 1.5 billion won for a single model during the first half of the Big Smile Day. Overall transaction amounts for the brand increased approximately 14 times compared to the monthly average. A Gmarket representative stated, "We are focused on discovering and nurturing small sellers and new brands with high growth potential. We will leverage the product planning capabilities of our category managers and various marketing assets to create more star sellers." Meanwhile, Gmarket has returned to a growth trend in gross merchandise volume (GMV) after launching a joint venture with AliExpress, following aggressive marketing and pricing investments. In March, GMV and average transaction prices increased by 12% and 10%, respectively, with similar trends continuing into April.* This article has been translated by AI. 2026-06-04 07:03:00

Trump to Attend G7 in France After UFC Event at White House Donald Trump, President of the United States, announced he will travel to France for the G7 summit after hosting a UFC event at the White House. He emphasized the event at the White House South Lawn, calling it an "unprecedented event in American history." On June 3, Trump posted on Truth Social, stating, "The UFC World Championship match at the White House South Lawn will be one of the most enjoyable nights in American history, and I will head to France for the G7 right after that." He claimed that while there have been low-profile fighting events at the White House in the past, none have featured the world's top athletes like this one. He added, "It has never been imagined that the best fighters, all champions, would compete in the people's house." The UFC event is set to be a major fighting spectacle at the White House South Lawn. Trump has publicly highlighted his connection with the UFC and is promoting the event in conjunction with the celebration of the 250th anniversary of American independence. The G7 summit in France will take place from June 15 to 17 in Évian. France is serving as the chair of the G7 this year, and the summit will address key issues such as the global economy, energy security, and geopolitical tensions. Trump's message combines domestic political events with his diplomatic agenda, showcasing the White House UFC event to rally his supporters while also preparing to engage on the international stage at the G7 summit.* This article has been translated by AI. 2026-06-04 06:36:00

New York Stock Market Declines Amid Middle East Tensions and Rising Oil Prices The New York stock market fell due to rising tensions in the Middle East and increasing oil prices. After reaching record highs, profit-taking occurred, and concerns that surging oil prices could disrupt inflation and interest rate forecasts dampened investor sentiment. On June 3, the Dow Jones Industrial Average closed down 620.72 points (1.21%) at 50,687.07. The Standard & Poor's 500 index fell 56.06 points (0.74%) to 7,553.72, while the Nasdaq composite dropped 239.92 points (0.89%) to 26,853.98. Middle East tensions have pushed oil prices higher, adding pressure to the stock market. Renewed airstrikes between the U.S. and Iran have destabilized a fragile ceasefire, raising concerns about potential disruptions in oil supply. Reuters reported that "the rise in oil prices could extend beyond energy costs, contributing to overall inflationary pressures, which weighed on the market." Interest rate forecasts have also been shaken. According to the CME FedWatch, financial markets now reflect a 41.1% chance of a Federal Reserve interest rate hike in December, a significant increase from 9.1% a month ago. The potential for prolonged conflict and the possibility of closing the Strait of Hormuz have heightened inflation concerns, making it more difficult for the Fed to lower rates. Sector performance was mixed, with technology and financial stocks struggling. The S&P 500 software and services index fell 4.0%, impacted by competitive concerns related to the artificial intelligence (AI) transition. Conversely, energy stocks rose significantly, benefiting from higher oil prices. AI semiconductor stocks showed relative strength, with the Philadelphia Semiconductor Index rising 1.4%. Companies like Marvell, Intel, Qualcomm, and SanDisk saw increases between 3.7% and 6.7%. However, among the seven major AI-related stocks, only Meta gained 4.2%, while the others declined. The strength in AI semiconductor stocks was not enough to offset the overall market downturn. In individual stock movements, asset management firms declined after Swiss Partners Group announced restrictions on an $8.6 billion private equity fund redemption, leading to drops of 3.9% to 4.2% for KKR, Blackstone, Blue Owl, and Ares Management. GameStop, however, rose 6.0% following a quarterly revenue increase and a $2 billion stock buyback announcement. Market breadth was weak, with declining stocks outnumbering advancing stocks by a ratio of 3.04 to 1 on the New York Stock Exchange. On the Nasdaq, declining stocks outnumbered advancing ones by 2.59 to 1. As concerns over rising oil prices and interest rate pressures resurfaced, the market closed lower despite some strength in AI semiconductor stocks.* This article has been translated by AI. 2026-06-04 06:33:00

Trump Says U.S. Close to Peace Agreement with Iran President Donald Trump announced that a peace agreement with Iran is within reach, highlighting progress in negotiations despite ongoing military tensions between the two nations. On June 3, during a press briefing in the Oval Office, Trump stated, "Iran is very close to a peace agreement with the United States." He added, "It could happen over the weekend," emphasizing that anything is possible when dealing with Iran. Trump identified the core issue of the negotiations as Iran's nuclear program, explaining, "The central focus of the talks is that Iran does not possess, develop, or acquire nuclear weapons." He expressed a preference for resolving the situation through diplomatic means rather than military action. "We could go another two to three weeks and wipe them out completely," Trump said, but he added, "I don’t want to do that. If we can achieve the same result without killing people, I would prefer to create a document that accomplishes that." However, Iranian officials have a different perspective. Abbas Araghchi, Iran's Deputy Foreign Minister, stated in an interview with the Lebanese broadcaster Al-Mayadeen that while contacts with the U.S. have not ceased, there has been no progress in negotiations. This indicates a disparity in the level of agreement between the two sides. The situation in Lebanon remains a variable in the negotiations. Trump indicated that the issue of Lebanon would be handled separately from the Iran talks, saying, "We want to separate that out." In contrast, Iran has maintained that the Lebanon front and the conflict with Iran cannot be separated. Tensions on the ground continue, with Iran claiming to have attacked U.S. military vessels in the Gulf, a claim denied by U.S. Central Command. The ongoing attacks, including Iran's assault on Kuwait Airport and U.S. airstrikes on Iran's Qeshm Island, illustrate that negotiations are taking place amid military conflict.* This article has been translated by AI. 2026-06-04 06:27:00

Iran's Military Advisor Warns U.S. Against Excessive Demands Amid Ceasefire Talks Mohsen Rezaei, a military advisor to Iran's Supreme Leader, issued a stern warning to the United States. As discussions between the U.S. and Iran regarding a ceasefire and peace settlement face challenges, Iran has made it clear that it will not engage in negotiations accompanied by military pressure. On June 3, Rezaei stated on X (formerly Twitter), "We will not allow excessive demands from the U.S. in negotiations or during the ceasefire process." He added, "Any aggression will be met with concentrated missile and drone strikes." He emphasized, "History does not turn back," warning that "invaders will be swiftly punished." This statement is interpreted as a warning that Iran will respond immediately if the U.S. undertakes further military actions. Rezaei previously served as the commander of the Islamic Revolutionary Guard Corps (IRGC). Iranian media have referred to him as a commander during the Iran-Iraq War, while foreign outlets describe him as a military advisor to the Supreme Leader. This statement comes amid stalled ceasefire discussions between the U.S. and Iran. Reuters reported that tensions in the Gulf region have escalated following Iran's attack on a Kuwaiti airport and subsequent U.S. retaliatory strikes near the Strait of Hormuz. * This article has been translated by AI. 2026-06-04 06:24:00

Trump Calls Netanyahu 'Crazy' Amid Tensions Over Lebanon Strategy Donald Trump, the U.S. President, and Benjamin Netanyahu, the Israeli Prime Minister, are facing renewed speculation about their relationship. Reports have surfaced that Trump criticized Netanyahu for escalating military actions along the Lebanon front, which Netanyahu has downplayed as merely a "tactical disagreement." In a CNBC interview on June 3, Netanyahu responded to questions about any changes in his relationship with Trump, stating, "No." He emphasized their shared goals, saying, "Even in the best of families, there can be tactical disagreements." Netanyahu described Trump as "the greatest friend Israel has had among those in the White House," adding, "He respects me, and I respect him. We always find ways to resolve our differences." This suggests that any tensions between the two leaders will not disrupt the cooperation between their countries. Netanyahu's comments followed Trump's acknowledgment of a heated phone call with him, where Trump reportedly referred to Netanyahu as "crazy." In an interview on the New York Post's podcast "Pods for One," Trump confirmed he had said that, explaining, "I wouldn’t say I was angry. I was a little annoyed about continuing to fight in Lebanon. I told Bibi, we need to stop this." Axios previously reported that during a call on June 1, Trump used harsh language to urge Netanyahu to refrain from expanding military operations in Lebanon. At that time, the U.S. was pursuing negotiations with Iran, and Israel's military actions in Lebanon were becoming a factor in those discussions. Trump also clarified that he does not foresee a complete break in relations, stating, "We have worked very well together. I like Bibi a lot, and I work well with him." However, he did not hide his concerns that the situation in Lebanon could complicate negotiations with Iran. The U.S. is pressuring for a de-escalation along the Lebanon front. After his June 1 call with Netanyahu, Trump stated, "There will be no troops heading to Beirut." Nevertheless, Reuters reported on June 3 that rocket fire from Hezbollah and Israeli drone strikes in Lebanon continued to occur.* This article has been translated by AI. 2026-06-04 06:12:00

Government Expands Onion Purchase Stockpile to Stabilize Prices The South Korean government has decided to increase this year's onion purchase stockpile to 20,000 tons, an 82% increase compared to the average in previous years, in an effort to stabilize onion prices. On June 4, the Ministry of Agriculture, Food and Rural Affairs announced a plan to stabilize the supply of mid-late season onions. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) and the Agricultural Products Distribution Information (KAMIS), the average consumer price for onions was 1,822 won per kilogram as of June 2, reflecting a 9.4% decrease compared to the previous year. The drop in onion prices is attributed to favorable growing conditions, which have led to an increase in mid-late season onion production. The yield per 10 ares is expected to rise by 12% compared to the average, resulting in an estimated production increase of 41,000 tons, totaling 1,088,000 tons. To prevent a flood of onions hitting the market during the harvest season, the government plans to purchase and stockpile 20,000 tons of mid-late season onions. Additionally, it will support local agricultural cooperatives to expand their purchasing capabilities through interest-free loans. The government, along with local governments in major onion-producing areas, will also implement swift measures to halt the distribution of excess supply. Furthermore, onion producer organizations will ensure that low-quality onions do not enter the market indiscriminately. To promote onion consumption, discounts of up to 40% will be offered at large and small supermarkets and traditional markets until early this month. Seo Jun-han, the Director of Distribution and Consumption Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "We will work closely with local governments, agricultural cooperatives, and producer organizations to ensure that supply and demand measures are implemented swiftly, so producers do not face difficulties."* This article has been translated by AI. 2026-06-04 06:03:00

May Foreign Exchange Reserves Drop by $880 Million Amid Market Stabilization Efforts Last month, South Korea's foreign exchange reserves decreased by over $800 million due to market stabilization measures. According to the Bank of Korea on June 4, the country's foreign exchange reserves stood at $426.99 billion at the end of May, down $880 million from the previous month. A Bank of Korea official explained, "The decline was primarily due to market stabilization measures, including foreign exchange swaps with the National Pension Service." The foreign exchange swap with the National Pension Service allows the pension fund to borrow dollars directly from the foreign exchange market instead of commercial banks when making overseas investments. This mechanism is seen as a buffer to prevent a sharp rise in the won-dollar exchange rate, which could occur if the pension fund enters the foreign exchange market to purchase dollars. In May, the U.S. dollar index (DXY) rose 0.1% to 99.02, up from 98.96 at the end of the previous month. By asset type, securities decreased by $3.39 billion, while deposits increased by $2.59 billion. The International Monetary Fund's Special Drawing Rights (SDR) fell by $30 million. Gold remained unchanged at $47.9 billion, reflecting its purchase price rather than market value. As of the end of April, South Korea's foreign exchange reserves were $427.9 billion, ranking 12th in the world. China holds the largest reserves at $3.41 trillion, followed by Japan at $1.38 trillion and Switzerland at $1.08 trillion. Other countries in the top rankings include Russia ($758.7 billion), India ($690.7 billion), Taiwan ($602.5 billion), Germany ($599.2 billion), Saudi Arabia ($494.8 billion), Italy ($456.1 billion), France ($449.4 billion), and Hong Kong ($442.1 billion).* This article has been translated by AI. 2026-06-04 06:03:00