ETF Assets Surpass 450 Trillion Won, Stock ETFs Break 200 Trillion Won Barrier As the domestic stock market gains momentum, the net assets of stock-type exchange-traded funds (ETFs) have surpassed 200 trillion won for the first time. Overall net assets have also exceeded 450 trillion won. According to financial information provider FnGuide, as of May 7, the total net assets of all domestic ETFs reached 456 trillion won. Of this, the net assets of domestic stock-type ETFs, which invest in companies listed in South Korea, amounted to 212 trillion won, marking the first time this figure has exceeded 200 trillion won. Among the 1,099 ETFs available (including domestic stock, foreign stock, domestic bond, and mixed types), there are 413 domestic stock-type ETFs. The net assets of domestic stock-type ETFs were only around 40 trillion won at the end of 2024, but surged to 93 trillion won last year and have rapidly approached 200 trillion won in just about four months this year. The net assets of domestic stock-type ETFs account for 3.47% of the KOSPI market capitalization of 6,138 trillion won, reaching an all-time high. This proportion was only 1.99% at the end of 2023 and remained at 2.08% in December 2024, but has jumped by 0.81 percentage points this year alone after ending last year at 2.68%. Domestic stock-type ETFs represent 46.6% of all ETFs. As the KOSPI continues to set new all-time highs, funds have rapidly flowed back into domestic stock-type ETFs. This trend indicates a clear shift in investment demand from overseas assets to the domestic market. New investors, often referred to as 'stock beginners,' are actively entering the rising market through domestic stock-type ETFs, which are seen as more accessible due to their diversification benefits compared to individual stock investments. ETFs allow investors to participate in the overall market with a smaller amount of capital. As of the end of April, there were 302,669 investors under the age of 20 investing in ETFs through the five major securities firms, a 37% increase compared to the end of last year. This suggests that younger investors are opting for index and theme-based ETFs to capitalize on market uptrends rather than selecting individual stocks. The expansion of ETF investments in retirement markets, such as pension funds, also appears to be driving the increase in net assets. Additionally, the market is expected to grow further with the upcoming launch of single-stock leveraged ETFs on May 22. Park Woo-yeol, a researcher at Shinhan Investment Corp, stated, "With Samsung Electronics and SK Hynix 2x ETFs already listed and traded on overseas exchanges, we expect to address the outflow of leveraged investment demand caused by regulatory asymmetries."* This article has been translated by AI. 2026-05-11 03:14:04

Democratic Party Questions Opposition's Stance on Housing Prices The Democratic Party criticized the People Power Party on May 10 for its aggressive stance following the reintroduction of higher capital gains taxes on multiple homeowners, questioning whether the opposition party wants housing prices to soar uncontrollably. Jo Seung-rae, the party's secretary-general, stated during a press briefing at the National Assembly, "It seems that the People Power Party does not wish for housing price stability." He added, "It would be problematic if housing prices were to skyrocket or plummet," emphasizing that the party's fundamental position is that housing prices must stabilize. Regarding concerns that the end of the capital gains tax exemption could impact elections in the Seoul metropolitan area, Jo remarked, "It is difficult to confirm any direct correlation at this point," explaining that elections involve a variety of issues that voters consider collectively. In contrast, the People Power Party strongly criticized the implementation of the capital gains tax. Party leader Jang Dong-hyuk posted on Facebook, "With the start of the capital gains tax today, housing prices will rise further," adding that many are withdrawing properties from the market. He also criticized Lee Jae-myung, stating, "Lee insists on 'normalizing real estate' at all costs. The mindset that believes this is normal is abnormal." Chief spokesperson Choi Bo-yun argued, "What is needed now is the repeal of punitive taxation that blocks escape routes, along with decisive action to fully lift regulations on reconstruction and redevelopment to allow quality housing to be supplied where the market demands it." He warned that the Lee Jae-myung administration must recognize the failures of past governments that tried to control the market through taxation.* This article has been translated by AI. 2026-05-11 03:12:40

U.S. Navy Blocks Dozens of Ships Amid Iran's Threats of Retaliation The U.S. military is implementing a maritime blockade against Iran, disrupting its trade routes. In response, Iran has warned that it will retaliate against U.S. bases and vessels if its ships are attacked in the Strait of Hormuz. U.S. Central Command (CENTCOM), which oversees military operations in the Middle East, announced on social media platform X (formerly Twitter) on May 9 that it has redirected the routes of 58 commercial vessels and neutralized four ships to prevent access to Iranian ports since April 13. This blockade began on April 13, following a ceasefire agreement with Iran on April 7, and aims to pressure Iran’s funding sources to gain leverage in peace negotiations. In retaliation, Iran has issued a warning that any attacks on its oil tankers or commercial vessels will lead to strong reprisals against U.S. positions and enemy ships in the region. According to reports from AFP and other outlets, the Islamic Revolutionary Guard Corps (IRGC) stated, "Any attack on Iranian oil tankers or commercial vessels will result in a powerful response against U.S. bases and enemy ships in the area." This warning came after the U.S. announced that it had neutralized two Iranian oil tankers attempting to breach the maritime blockade in the Strait of Hormuz and enter Iranian ports in the Gulf of Oman. Iran confirmed that there had been "limited clashes" with U.S. forces in the Strait of Hormuz. On May 7, U.S. and Iranian forces exchanged attacks in the Strait of Hormuz. However, both sides maintain that the ceasefire is still in effect. Meanwhile, President Donald Trump stated the previous day that he expected to receive a letter from Iran regarding U.S. demands. It remains unclear whether Iran has formally communicated its position. Previously, President Trump indicated that the peace agreement would include provisions for the removal of Iran's stockpile of highly enriched uranium and the cessation of operations at its underground nuclear facilities, but Iran has not yet provided an official response.* This article has been translated by AI. 2026-05-11 03:11:36

Blue House Concludes Investigation into HMM Namoo Fire in Hormuz Strait The Blue House announced on May 10 that it has completed its on-site investigation into the fire aboard the South Korean vessel HMM Namoo, which occurred near the Hormuz Strait in the United Arab Emirates. A Blue House official stated in a press release that the investigation team has concluded the necessary fieldwork and will return individually based on flight availability following their local activities.The official added, "We have received preliminary findings from the on-site investigation, and we are currently reviewing and evaluating them with relevant agencies. The cause of the Namoo fire will be addressed after this review and evaluation process."The Blue House has maintained a cautious stance regarding the possibility of an attack, emphasizing the need for a thorough investigation to determine the exact cause of the explosion.The government investigation team, consisting of three investigators from the Ministry of Oceans and Fisheries' Marine Safety Tribunal and four forensic experts from the National Fire Agency, began their inquiry into the fire on May 8 at Dubai Port.The team is reportedly examining data, including the voyage data recorder (VDR) and closed-circuit television (CCTV) footage, while also interviewing crew members and conducting on-site inspections.* This article has been translated by AI. 2026-05-11 03:10:32

Democratic Party Denounces Kim Kwan-young's Independent Candidacy The Democratic Party has sharply criticized Kim Kwan-young, the Jeonbuk governor who declared his independent candidacy on May 7, calling his actions "shameless." Kim was expelled from the party over allegations of distributing money envelopes and has supported Democratic Party lawmaker Ahn Ho-young, who staged a hunger strike after the party selected Lee Won-taek as its Jeonbuk gubernatorial candidate amid accusations of meal expense reimbursements. Jo Seung-rae, head of the Democratic Party's National Normalization Election Committee, stated at a press conference on May 10 that Kim is permanently ineligible for rejoining the party. He explained that the party's constitution prohibits the reinstatement of individuals expelled for sexual offenses or those who leave the party to run for office against the party's decisions. Jo criticized the notion that the Democratic Party is a place where individuals can freely enter and exit at will, responding to speculation that Kim could return to the party if elected as an independent. He also addressed Kim's claims that the party engaged in unfair candidate selection, stating, "Such assertions are blatant falsehoods, and we are considering legal action." Additionally, Jo issued a warning to the Justice Reform Party, suggesting that those who have been disciplined or denied candidacy within the Democratic Party should not expect to be welcomed back later. He remarked, "Some believe they will eventually be absorbed into the party, but that is a misconception." He added that he does not believe the Justice Reform Party is acting as a party in this regard, viewing any such actions as individual deviations that could harm mutual trust.* This article has been translated by AI. 2026-05-11 03:08:56

Harim Group Becomes Third Largest SSM Operator with Homeplus Express Acquisition Harim Group's subsidiary, NS Shopping, has acquired Homeplus Express, the supermarket division of Homeplus, raising expectations for business synergy. The acquisition is expected to accelerate vertical integration in food production, logistics, and distribution based on Homeplus Express's nationwide store network. According to the retail industry on May 10, Harim Group is re-entering the domestic offline retail market in the form of a corporate supermarket (SSM) through NS Shopping's acquisition of Homeplus Express. This marks the group's return to the sector after selling NS Mart to E-Mart in 2012, a span of 14 years. On May 7, Homeplus, which is undergoing corporate rehabilitation, and NS Shopping signed a contract for the transfer of the Express business rights. The sale price is reported to be 120.6 billion won, falling short of the initially speculated 300 billion won. However, NS Shopping has agreed to settle some of Homeplus Express's debts, which is expected to increase the actual financial burden, although the specific amount has not been disclosed. With this acquisition, Harim Group has quickly ascended to become the third-largest player in the SSM sector. As of the end of last year, Homeplus Express operated 295 stores, ranking behind GS The Fresh (585 stores) and Lotte Super (338 stores). Notably, 90% of its stores are located in the metropolitan area and major cities, which is considered a significant advantage. Industry experts view Harim Group's acquisition of Homeplus Express as a strategic move aimed at leveraging synergies with its food business. Homeplus Express caters to the shopping needs of single-person households and homemakers, providing a platform for Harim Group to sell its meat products, home meal replacements (HMR), and processed foods directly. Additionally, establishing a structure that integrates production, distribution, and sales could help secure stable sales channels for its food business. There is also speculation about utilizing Homeplus Express stores as urban delivery hubs, potentially entering the quick commerce market. Furthermore, if linked with the Yangjae urban logistics center, which Harim Group aims to complete by 2029, it could create a delivery system that combines a large logistics hub with urban store networks. NS Shopping believes that combining its existing home shopping and online channels with Homeplus Express's offline store network will broaden opportunities for partner companies. By leveraging its 25 years of experience in handling agricultural products and food, NS Shopping can provide small food partners with opportunities to enter offline stores, while Homeplus Express partners can expand their sales channels through online and mobile platforms. However, challenges remain. Competition among SSMs, e-commerce, and convenience stores is intensifying, leading to a shrinking market for SSMs. The speed at which Harim Group can restructure the Homeplus Express store network into a retail hub will be a critical factor in its success. An NS Shopping official stated regarding the acquisition of Homeplus Express, "This will be an important turning point for strengthening our competitiveness across online and offline channels based on our expertise in food and distribution. We will carefully review all matters to ensure that the remaining procedures proceed smoothly." Meanwhile, following the sale of Homeplus Express, Homeplus has begun restructuring its remaining business segments, including hypermarkets, online operations, and headquarters. From May 10 to July 3, it plans to temporarily suspend operations at 37 of its 104 hypermarket locations, focusing on the remaining 67 stores that contribute more significantly to the business.* This article has been translated by AI. 2026-05-11 03:07:05

Vietnam Responds Swiftly to U.S. Intellectual Property Warning The United States designated Vietnam as a "Priority Foreign Country" (PFC) in its 2026 Special 301 Report, prompting the Vietnamese government to quickly formulate a response. This marks the first time in 13 years that such a severe designation has been issued, raising concerns that it could lead to unfavorable trade measures, including tariffs. According to Vietnamese media outlet VOV, the U.S. Trade Representative (USTR) classified Vietnam as a PFC in its report released on April 30. This is the highest level of warning issued to a specific trading partner since Ukraine in 2013. The USTR cited five reasons for Vietnam's designation as a PFC: ineffective enforcement against copyright infringement in the digital environment, insufficient action against counterfeit goods and trademark violations, limitations in border enforcement mechanisms, a lack of substantial measures against unauthorized software use within companies, and weak criminal regulations against the unauthorized interception of encrypted cable and satellite signals. In response, the Vietnam Chamber of Commerce and Industry (VCCI) stated that this issue requires careful examination. The department noted that if a formal investigation is initiated based on U.S. consultations and evaluations, the process could be lengthy and may lead to unfavorable trade measures, including tariffs. During the first term of President Donald Trump, the U.S. initiated a Special 301 investigation against China in 2017 concerning intellectual property rights and technology transfer, using it as a basis for imposing additional tariffs. Many of those measures have remained in place since then. The Special 301 provision allows the U.S. to take retaliatory actions if it determines that a trading partner is infringing on intellectual property rights. However, the WTO department noted that Vietnam has made consistent efforts in recent years to strengthen intellectual property protection through legal and institutional reforms and to enhance enforcement capabilities. Examples include amendments to intellectual property laws, improved inter-agency cooperation in handling violations, and inspections of the digital environment and product distribution stages. The Vietnamese government has also officially requested that the U.S. objectively and comprehensively assess its protection and enforcement efforts. Vietnam Moves Quickly to Prepare In this context, the response of Vietnamese companies has become a critical task. The WTO department advised businesses to reassess their compliance with intellectual property laws throughout their production, sales, and export processes. Companies deeply integrated with the U.S. market, partners, or supply chains should urgently review their internal compliance systems. They should first verify whether the software currently in use is legal, whether images, trademarks, packaging, designs, and promotional content are used legally, and whether the sources and usage rights of data, designs, technical documents, digital works, and marketing materials are clearly secured. It is also essential to maintain internal documents that can prove ownership or usage rights of related intellectual property assets. For companies providing intermediary infrastructure, such as digital platforms, e-commerce, data centers, and social networks, stricter standards have been proposed. They should enhance procedures for managing content and sellers, improve systems for receiving and processing infringement reports, and promptly remove products, stores, or content with clear violations. In high-risk areas, such as websites dealing with medical supplies, food, health supplements, and large-scale copyrighted content, early prevention and close cooperation with authorities are even more critical. Exporting companies to the U.S. are advised to ensure compliance checks on intellectual property, as well as enhance information transparency across their supply chains, digitization of materials, and traceability. The WTO department explained that this is not only a risk management measure in anticipation of potential unfavorable actions from the U.S., but also a key condition for meeting international market compliance, origin, quality, and transparency standards. Should the USTR officially initiate an investigation, related companies and industry associations are advised to actively provide information and opinions through appropriate channels. Demonstrating how they have refined their compliance management and the changes in Vietnam's legal reforms and enforcement efforts could be crucial in the U.S. evaluation process. The WTO department analyzed that the 2026 Special 301 Report signals that intellectual property should be recognized as a core element of modern governance and long-term competitiveness, beyond mere legal issues. Ultimately, investments in compliance, risk control, supply chain digitization, standardization of internal processes, and market diversification will provide a solid foundation for responding to the changing international trade environment.* This article has been translated by AI. 2026-05-11 03:04:59

Park Hyung-jun Calls for Unity Among Conservative Candidates in Busan Park Hyung-jun, the candidate for Busan mayor from the People Power Party, stated on May 10 that candidates Park Min-sik, representing the People Power Party, and independent Han Dong-hoon, running in the Busan North District, must unify to secure a conservative victory in the upcoming June 3 local elections and by-elections. During a meeting of the election campaign committee held at the party's office in Busanjin-gu, Park emphasized, "The most crucial step for electoral victory is the unification of conservatives, yet the Busan North District election is once again jeopardizing this unity." He further criticized the situation, stating, "Candidates on the ground are acutely aware of the detrimental effects of division, as the election in this small district is shaking the entire Busan election landscape." Park expressed concern that the current three-way race would lead to voter fragmentation. He noted, "Recent polls indicate that about 65% of conservative voters desire unification." He cautioned that if conservative candidates engage in a fierce battle under the complacent belief that they can win despite the three-way race, conservative voters will become divided, and moderate voters will turn away. He urged candidates to recognize this reality and take on their responsibilities seriously. Emphasizing the need for conservative unity, Park stated, "To prevent the 'special investigation law' aimed at absolving one's own crimes and to safeguard democracy in South Korea, Busan, as a critical battleground in this election, must become a stronghold of democracy." He asserted that only through conservative and civic unification can the administration of Lee Jae-myung be restrained from overreach.* This article has been translated by AI. 2026-05-11 03:03:38

Yoon Suk Yeol and Kim Geon-hee's Supreme Court Appeal Advances The Supreme Court is set to hear the appeal of former President Yoon Suk Yeol and his wife, Kim Geon-hee, after their sentences were increased in the appeals court. According to legal sources on May 10, the Supreme Court is expected to begin proceedings for the couple's appeal case soon. On May 6, the Supreme Court received the records of Yoon's case regarding allegations of obstructing the Corruption Investigation Office's arrest. The formal assignment of the case to a designated panel and presiding justice has not yet occurred. The case involves five allegations against Yoon, including violations of the right to deliberate and vote on martial law by cabinet members, the post-facto creation and destruction of martial law declarations, issuing false public announcements after declaring martial law, instructing the deletion of classified phone records, and obstructing the execution of arrest warrants. This is the first criminal appeal trial for Yoon related to the martial law situation, and it is the 'first case' handled by the dedicated insurrection trial division established at the Seoul High Court. Yoon was previously indicted on charges of obstructing special public duties and abusing his authority, and on January 16, he was sentenced to five years in prison in the first trial, prompting an appeal. On April 29, the appeals court increased his sentence to seven years, adding two years to the original term. The appeals court reversed the first trial's not guilty verdict on charges of false advertising against foreign media (abuse of authority) and violations of the deliberation rights of the ministers of Land, Infrastructure and Transport, and Trade, Industry and Energy, as well as allegations of instructing the overseas publicity secretary to issue false information. Kim Geon-hee, who has been indicted on charges related to stock manipulation and receiving money from the Unification Church, is also preparing for her appeal. Initially, the first trial found her not guilty of violating capital market laws and political funding laws related to a 'free opinion poll' involving Nam Tae-kyun, while partially convicting her of soliciting bribes under the specific crimes aggravated law related to the Unification Church, resulting in a sentence of one year and eight months. On April 28, the appeals court more than doubled her sentence to four years. The appeals court determined that Kim was a 'co-offender' in the stock manipulation case and interpreted the timing of the stock manipulation offenses in relation to the statute of limitations differently than the first trial. While the first trial did not find her complicit with the stock manipulation group, the appeals court concluded that she had participated knowingly and as a co-conspirator. Additionally, the appeals court divided the trading periods into three phases: the first (October 2010 to January 2011), the second (March 30, 2011), and the third (July to August 2012). Unlike the first trial, which ruled that the first and second phases were barred by the statute of limitations, the appeals court viewed these as a single crime (continuing offense) and deemed them punishable. The appeal trial will focus on legal interpretations where the first and second trials diverged, as it is a legal review rather than a factual one. Key issues in Kim's case will include the conspiracy in stock manipulation, the recognition of continuing offenses, and the application of the statute of limitations. In Yoon's case, attention will be on the establishment of abuse of authority and the interpretation of martial law-related authority. There is also interest in whether the Supreme Court will meet the three-month ruling deadline stipulated in the special investigation law. According to the law, the deadline for Kim's case is July 28, and for Yoon's case, it is July 29. However, since these are not mandatory provisions, there may be a focus on careful deliberation over speed.* This article has been translated by AI. 2026-05-11 03:01:50

KOSPI Surges Past 7,000 as Demand for Borrowing Hits Record 40 Trillion Won KOSPI has surpassed the 7,000 mark for the first time, leading to a significant influx of funds from individual investors into the stock market. The demand for borrowing to invest in stocks has surged, pushing the balance of minus accounts to a record 40 trillion won. Meanwhile, demand deposits have decreased for the second consecutive month, prompting some banks to raise interest rates on deposits.As of May 7, the balance of minus accounts at the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—stood at 40.5029 trillion won. This marks an increase of 715.2 billion won in just three business days since the end of April, when the balance was 39.7877 trillion won. The current balance is the highest since January 2023, when it reached 40.5395 trillion won. In terms of monthly growth, this is the largest increase in two years and seven months, surpassing the previous high in October 2023.This surge is attributed to a combination of household loan regulations and the rise in KOSPI. The balance of minus accounts began to expand significantly in October 2022, reaching over 40 trillion won by the end of November 2022. As various regulations, including the June 27 and October 15 real estate measures, reduced the limits on mortgage loans, the balance of minus accounts increased sharply. The recent rise in KOSPI past 7,000 has further fueled this increase.In May, over 5 trillion won has exited from demand deposits, reflecting expectations of continued stock market growth. The balance of demand deposits at the five major banks was 696.0511 trillion won as of May 7, down 5.013 billion won from 696.5524 trillion won at the end of April. This follows a decrease of 3.3557 trillion won in April, indicating a trend of funds leaving for two consecutive months.In response to this situation, some banks are taking defensive measures to retain deposits. NH NongHyup Bank has raised the interest rate on its NH All One e-deposit from 2.95% to 3.10%. KakaoBank and K-Bank have also introduced deposit products with interest rates over 3%. However, there are predictions that these rate increases may not significantly alter the flow of funds. A financial industry source stated, "In a situation where stock prices have risen by more than 10%, even a slight increase in interest rates is unlikely to stop the movement of funds."* This article has been translated by AI. 2026-05-11 03:00:15