NH Investment & Securities Raises LG Innotek Target Price by 20% Amid Expansion in Autonomous Driving and Semiconductor Business NH Investment & Securities announced on May 22 that it has raised its target price for LG Innotek from 1 million won to 1.2 million won, a 20% increase, citing the company's expansion in autonomous driving-related businesses beyond vehicle camera modules to include application processor (AP) modules and FC-BGA substrates. The firm maintained its "buy" rating on the stock. Hwang Ji-hyun, a researcher at NH Investment & Securities, noted, "The expansion of the autonomous driving business beyond vehicle camera modules to include automotive AP modules and autonomous driving FC-BGA substrates is a positive development." According to NH Investment & Securities, the automotive AP module business involves modularizing APs sourced from global companies. The company is currently expanding its production capacity, with mass production expected to begin in the fourth quarter of 2026. Quality testing is also underway for the autonomous driving FC-BGA substrates aimed at North American automotive clients, with mass production anticipated in early 2027 upon approval. The analysis indicates that LG Innotek is diversifying its risk by expanding its business from a focus on IT sets to the automotive and semiconductor sectors. LG Innotek has set a target of 5 trillion won in sales from automotive components by 2030. The company expects its automotive component business, which includes communications, lighting, cameras, and battery management systems (BMS), to grow at an average annual rate of 20% over the next five years, surpassing the overall revenue growth rate. The company's efforts to expand its position within the autonomous driving value chain through partnerships with external firms have also been positively received. Last year, LG Innotek invested in the U.S. lidar company Aeva and is currently collaborating on a multi-sensing module project. Aeva is a company selected for NVIDIA's "Hyperion 10" reference platform. Additionally, LG Innotek has established a strategic partnership this year with the U.S. autonomous driving software company Applied Intuition. Hwang stated, "Given that the company has secured numerous global top-tier automotive manufacturers as clients, we expect synergies in terms of sales and customer engagement moving forward."* This article has been translated by AI. 2026-05-23 10:42:20

Actor Kim Kyuri Victimized in Home Invasion; Suspect Arrested Actor Kim Kyuri was the latest victim of a home invasion, following fellow actress Nana, as a man in his 40s was arrested for assault and robbery at her residence. According to Yonhap News, the Jongno Police Station in Seoul reported that the suspect, identified as A, was apprehended on charges of robbery and assault. A is accused of entering Kim's home around 9 p.m. the previous day, demanding valuables and assaulting the residents. At the time of the incident, Kim was at home with another woman. The two managed to escape when A's attention waned and sought help from nearby citizens. Reports indicate that both women sustained injuries, including fractures and bruises, due to A's assault. Police arrested A around midnight after he turned himself in approximately three hours after the crime. Authorities are investigating whether the crime was premeditated and are considering applying for an arrest warrant for A. This incident follows a series of similar robberies targeting celebrities' homes. In November of last year, a man in his 30s broke into Nana's residence armed with a weapon, threatening her and her mother. Additionally, in April of last year, a robbery occurred at comedian Park Na-rae's home, where valuables worth millions were stolen, drawing significant public attention.* This article has been translated by AI. 2026-05-23 10:39:46

Korea's Financial Chief Announces Inclusive Finance Initiative Lee Ok-won, the Chairman of the Financial Services Commission, announced plans to launch an 'Inclusive Finance Strategy Promotion Team' next month. The discussions will include appointing a 'Chief Officer for Inclusive Finance' within financial institutions, improving credit evaluation methods, rationalizing soundness regulations, and strengthening management of delinquent debts. This initiative aims to directly address issues related to long-term delinquent debt collection and financial exclusion, particularly in light of the recent Sangnok-su incident. The direction is correct, but the key lies in execution rather than mere declaration. Finance is not just an industry that lends money and collects interest. It is the lifeblood of capitalism, a ladder for individuals to rise again, and fuel for corporate growth. When finance operates correctly, capital flows to productive areas. Conversely, when finance is distorted, money concentrates in real estate and short-term profits, leaving those who have failed without a chance to recover. Historically, finance has evolved alongside the growth of civilization. The banking industry in medieval Italy fostered the growth of commercial cities, and the Industrial Revolution was impossible without long-term capital supply. The United States' position at the center of the global economy is rooted in the dollar system and deep capital markets. Finance has always been an institution that invests in trust and future possibilities. However, South Korean finance has long been overly focused on stability and soundness. While the stability of the financial system is important, an excessive emphasis on stability can turn finance into an organization that avoids risks rather than one that creates new opportunities. A history of delinquency makes it difficult to recover, and without collateral, obtaining startup funds becomes challenging. When finance only considers past failures rather than a person's potential, inclusivity disappears. The issues raised by the Sangnok-su incident highlight this problem. Long-term delinquent debts are traded at rock-bottom prices, and debtors face prolonged collection pressures. While this may make sense from the perspective of financial companies seeking to recover debts, it ultimately reduces the potential for consumption and recovery across society. If finance is perceived as a system that pushes people to the brink rather than one that saves them, trust in the market economy erodes. Globally, financial inclusion is also a significant policy challenge. The Community Reinvestment Act (CRA) in the United States encourages banks to meet the credit needs of low- and moderate-income communities in their service areas. In the UK, Big Society Capital was established as a wholesale investment institution to grow the social investment market. These examples underscore the view of finance as a social infrastructure rather than merely a profit-driven industry. However, inclusive finance must not devolve into welfare finance. The foundation of finance is credit and responsibility. Ignoring risks in support ultimately leads to insolvency and moral hazard. The real challenge is to reduce financial exclusion while maintaining market principles. This requires a change in credit evaluation. The structure that brands a single failure as a lifelong stigma must be corrected. Various data, such as telecommunications payment history, income flow, business sustainability, and platform transaction history, should be utilized to assess a person's recovery potential. The plan to reflect inclusive finance in the governance of financial companies is also significant. Banks and financial holding companies are not merely private enterprises; they operate based on public trust and national deposits. Therefore, they bear a higher social responsibility. However, responsibility alone should not be imposed. To sustain inclusive finance, financial institutions need an incentive structure that balances profitability and soundness. At the national level, inclusive finance should not be confined to support policies for the underprivileged. It must be a growth strategy. Funding should flow into youth entrepreneurship, local economies, second-chance businesses, and new industries. The strength of Silicon Valley emerged from a financial ecosystem that tolerates failure. For the South Korean economy to overcome low growth and population decline, finance must shift from a collateral-centric approach to one focused on potential. From an industrial perspective, the flow of money must change. Finance that remains focused on real estate and stable interest margins cannot nurture future industries. Long-term capital and venture capital are needed in fields such as AI, biotechnology, aerospace, and energy transition. Inclusive finance is not only about helping vulnerable groups but also about broadening the foundation for new growth. At the corporate level, financial companies should view customers not merely as risk subjects but as long-term partners. Inclusive finance is an investment in creating future customers, not a cost. Only financial institutions that earn social trust will survive in the long run. The conclusion is clear. Finance should be a cycle, not a predation. It should be about recovery, not exclusion. It must invest in future possibilities, not just short-term profits. This new promotion team must not become a mere showpiece. The nation, industry, and corporations must all reaffirm the purpose of finance. When money flows towards people, businesses, and the future rather than chasing only profit, South Korean finance can finally restore trust.* This article has been translated by AI. 2026-05-23 10:37:20

Market Preview: Dow Hits Record High as KOSPI Faces Profit-Taking U.S. stocks rose across the board as optimism about progress in negotiations between the U.S. and Iran led to declines in international oil prices and U.S. Treasury yields. The Dow Jones Industrial Average reached a new all-time high, although NVIDIA saw a drop due to profit-taking. Meanwhile, the domestic market is expected to experience a pause following its recent surge. On May 21, the Dow Jones Industrial Average closed up 276.31 points (0.55%) at 50,285.66, surpassing its previous record of 50,115.67 set on February 6. The S&P 500 index rose 12.75 points (0.17%) to close at 7,445.72, while the tech-heavy Nasdaq composite gained 22.74 points (0.09%) to finish at 26,293.10. The New York market saw increased volatility early in the session due to news related to the Iran negotiations, but later rebounded as expectations for a diplomatic resolution between the U.S. and Iran grew stronger. President Donald Trump mentioned the negotiations were in the 'final stage,' and the U.S. Secretary of State hinted at the possibility of progress, boosting investor sentiment. International oil prices and U.S. Treasury yields also fell. July Brent crude futures dropped 2.32% to $102.58 per barrel, while July West Texas Intermediate (WTI) crude futures fell 1.94% to $96.35. The yield on the U.S. 10-year Treasury note decreased to around 4.57%. In individual stocks, NVIDIA, which reported strong earnings the previous day, fell 1.8%. Despite exceeding market expectations, the decline was attributed to profit-taking following its recent surge. Conversely, IBM surged 12.4% on expectations of subsidies related to quantum computing, with other related stocks like Rigetti Computing also performing well. Walmart, however, fell 7.27% due to a conservative earnings outlook and concerns over fuel costs. The domestic market is expected to digest profit-taking pressures following KOSPI's 8.42% surge the previous day. However, the stability of U.S. interest rates and ongoing optimism regarding U.S.-Iran negotiations are seen as supporting factors. As of 8:35 a.m. on the NXT pre-market, Samsung Electronics was up 0.6%. Hyundai Motor showed slight gains, while SK Telecom rose over 10%, and LG Electronics and Doosan Enerbility recorded gains of around 5%. Analysts suggest that high volatility may continue in the near term, but the trend of leading stocks centered around the AI value chain is expected to remain intact. Han Ji-young, a researcher at Kiwoom Securities, stated, "Recent markets have been heavily influenced by inflation, interest rates, and geopolitical factors, but ultimately, the key will be the progress of U.S.-Iran negotiations. Sectors with strong earnings potential in the AI value chain, such as semiconductors and IT hardware, are likely to maintain relatively stable performance even in a volatile environment."* This article has been translated by AI. 2026-05-23 10:34:43

Korea's Financial Supervisory Service to Enhance Analyst Protection The Financial Supervisory Service (FSS) is considering reforms to strengthen the independence of research reports from securities firms and to establish protections for analysts. This initiative aims to address the prevalent practice of overly positive reports and the issue of external pressure on analysts. However, the effectiveness of these reforms may be challenged, as the existing reporting center has not received any complaints in its nine years of operation, rendering the current system nearly ineffective. According to the FSS, the 'Unreasonable Research Practices Reporting Center' was established in May 2017 to receive reports of coercion, threats, and undue pressure on analysts. However, since its inception, there have been no complaints filed. Despite the center being operational for nine years, the total number of reports remains at zero.Industry experts argue that the lack of reports does not indicate the absence of issues. Given the rarity of sell reports, if a report were to be filed, the author could be easily identified. Even if a report is made, there are insufficient means to resolve the issue or sanction the company involved. In light of the current ineffectiveness of the existing system, the FSS is internally reviewing measures to improve research practices at securities firms. Future discussions on reforms are expected to focus on creating an 'independent research environment' and establishing 'analyst protection mechanisms.' There is a growing need for institutional safeguards to ensure that research activities based on legitimate analysis and opinions are not stifled by external pressures or legal disputes. Recent backlash from companies and investors regarding certain stocks has also contributed to the discussions on reform. For instance, Samchundang Pharm recently initiated legal action against an analyst who presented an opinion contrary to the company's claims. In 2023, a Hana Financial Investment analyst faced conflicts with some investors after issuing a sell recommendation on EcoPro. Amid these developments, the trend of 'buy bias' in domestic securities reports remains pronounced. According to the Korea Financial Investment Association, as of the end of March last year, the proportion of 'buy' recommendations among the investment ratings of the top 10 securities firms, based on equity capital, averaged 88.5% over the past year. In contrast, the share of 'sell' recommendations was a mere 0.1%. Only Mirae Asset Securities (0.6%) and Meritz Securities (0.5%) issued sell recommendations among the top firms. The proportion of 'neutral (hold)' recommendations, which are often considered as sell signals, also remained low at an average of 11.4%. An FSS official stated, "There is a need for mechanisms to protect analysts when they produce legitimate reports," adding, "This is a matter that requires discussion with the Financial Services Commission, and we are reviewing internal measures for improving practices."* This article has been translated by AI. 2026-05-23 10:33:00

Bitcoin Surges to $77,500 Amid U.S. Stock Market Rally Bitcoin and other major virtual assets continued their upward trend. Analysts attribute this rise to the strong performance of the U.S. stock market and ongoing inflows into Bitcoin spot exchange-traded funds (ETFs), which have boosted investor appetite for riskier assets. According to CoinMarketCap, as of 8 a.m. on May 22, Bitcoin was trading at $77,547, up 0.19% from the previous day. Ethereum also saw a slight increase of 0.23%, reaching $2,129. Binance Coin (BNB), Solana, and Ripple (XRP) recorded gains of 1.29%, 1.37%, and 0.47%, trading at $656, $87, and $1.37, respectively. Market analysts suggest that the bullish sentiment in the U.S. stock market has improved investor confidence, leading to increased buying activity across the virtual asset market, particularly with the inflow of funds into Bitcoin spot ETFs. Additionally, expectations for the regulation of virtual assets in the U.S. and a favorable policy environment have further fueled this risk-on sentiment. As of 8 a.m. on the same day, Bitcoin was trading at approximately 115.18 million won ($77,604) on the domestic exchange Bithumb, marking a 0.57% increase from the previous day. The 'Kimchi Premium' stood at -1.454%, indicating that the price of Bitcoin in South Korea is lower than that in international markets.* This article has been translated by AI. 2026-05-23 10:30:17

Trump Delays AI Executive Order, Citing Need to Maintain U.S. Advantage Donald Trump, President of the United States, has postponed the signing of an executive order on artificial intelligence (AI). The order was intended to require companies to consult with the government before releasing advanced AI models, but Trump expressed concerns that it could slow the development of U.S. AI firms. He emphasized the need to maintain American superiority in the ongoing technology competition with China. According to Reuters and Axios, the White House announced on May 21 that the signing ceremony for the AI and cybersecurity executive order, scheduled for that day, would be delayed. The event was expected to include CEOs from major AI companies. Trump told reporters at the White House, "I postponed it because I didn't like some of the content. We are ahead of China and everyone else, and I don't want to do anything that could hinder that advantage." The draft of the executive order reportedly included provisions for companies to consult with the government before unveiling advanced AI models. It also suggested that government agencies could review models up to 90 days before their public release if necessary. Additionally, the order aimed to explore the use of advanced AI models in defending critical infrastructure, such as government systems, banks, and hospitals, against cyber threats. This approach seeks to enhance the defensive capabilities of the government and key facilities while assessing the potential misuse of AI in cyberattacks. This decision indicates that Trump prioritized industrial competitiveness over safety reviews. It suggests a greater emphasis on maintaining momentum in the technology race with China rather than addressing potential risks associated with AI models. The White House has not completely scrapped the executive order. There is a possibility that it will be revised and the signing process will be resumed.* This article has been translated by AI. 2026-05-23 10:27:37

President Yoon Addresses 'Predatory Finance' Concerns, Financial Services Commission Shifts to Inclusive Finance ◆Aju Economic Major News ▷President Yoon's Remarks on 'Predatory Finance' Prompt Financial Services Commission to Shift to 'Inclusive Finance' - The Financial Services Commission (FSC) has decided to pursue structural reforms in finance centered on the 'Three-Tiered Inclusive Finance' model to improve the system that excludes vulnerable borrowers from formal financial services, pushing them toward policy-based microfinance and illegal private loans. - FSC Chairman Lee Ok-yeol pointed out that formal financial institutions have failed to adequately perform risk selection and management functions, leading to middle- and low-credit borrowers being pushed into financial blind spots. He emphasized the need for alternative financing options that consider long-term recovery possibilities. - This structural reform aligns with President Yoon Suk Yeol's statement that 'inclusive finance is the obligation of financial institutions' and the presidential office's concerns regarding interest rate disparities and the exclusion of mid-credit borrowers. - The FSC also plans to implement a strategy for the globalization of capital markets, including allowing foreign integrated accounts for ETF investments and hosting the large-scale overseas IR event 'Korea Premium Week' to attract foreign capital to the domestic stock market. - Additionally, the FSC is considering the complete lifting of separation regulations for financial companies equipped with security capabilities and AI utilization, while also pursuing the introduction of restrictions on dual listings. ◆Major Reports ▷Reversing Adverse Factors Can Lead to Explosive Gains - Amid expectations for negotiations between the U.S. and Iran, oil prices and Treasury yields have both declined, while strong rebounds in semiconductor stocks were observed in U.S. and domestic markets, driven by Nvidia's earnings expectations and easing strike risks at Samsung Electronics. - Foreign investors continued to sell off in the KOSPI for the 11th consecutive trading day, but the scale of net selling was significantly reduced to about 220 billion won, with institutional and individual ETF buying driving the market rebound. - The recent sharp decline in the KOSPI was largely influenced by technical overheating due to short-term surges rather than external factors like oil prices, interest rates, and strikes. Analysts suggest that the current rebound reflects positive developments such as the labor agreement at Samsung Electronics and strong earnings expectations for Nvidia. - The tentative labor agreement at Samsung Electronics is viewed positively for the stock price, as it reduces concerns about cash outflows and overhang risks through its share buyback method and some lock-in structures. - Analysts note that the AI rally is showing a relatively free flow from macro variables like interest rates and consumption, unlike past IT cycles, and that strong semiconductor exports are supporting market strength. ◆Key Disclosures After Market Close (21st) ▷Plutos Decides to Issue 20 Billion Won in Convertible Bonds ▷Linked Resumes Stock Trading on the 22nd ▷JNK Global Signs 17.9 Billion Won Supply Contract for Furnaces ▷Pintek Resumes Stock Trading on the 22nd ▷Wellkeeps High Tech Resumes Stock Trading on the 22nd ▷UTI Decides to Issue 10 Billion Won in Convertible Bonds ▷CS Decides to Issue 5 Billion Won in Convertible Bonds ▷Memelavity Resumes Stock Trading on the 22nd ◆Fund Trends (As of 20th, Excluding ETFs) ▷Domestic Equity: -20.5 Billion Won ▷Overseas Equity: -16.8 Billion Won ◆Key Schedule for Today (22nd) ▷South Korea: Consumer Confidence Index (May) ▷Japan: Consumer Price Index (April) ▷Germany: Ifo Business Climate Index (May) ▷United States: Consumer Sentiment Index (Preliminary, May), Conference Board Leading Economic Index (April)* This article has been translated by AI. 2026-05-23 10:25:10

Airbnb Expands Beyond Lodging with New Super App Features Airbnb is expanding its business model from a simple lodging reservation platform to a comprehensive travel service provider. The company plans to introduce convenience services such as car rentals and grocery delivery, leveraging artificial intelligence (AI) to actively target global traveler demand. Recently, there has been a noticeable trend among global online travel agencies (OTAs), including Airbnb, to evolve into 'super apps.' This shift aims to diversify revenue models and enhance customer retention, reflecting a broader industry trend. By combining vast data with AI, Airbnb seeks to seamlessly integrate travelers' entire journey into its ecosystem. ◆ Comprehensive Travel Support from Transportation to Accommodation Starting this summer, Airbnb will gradually roll out new services that connect all aspects of travel, from transportation to accommodation and local experiences. Key new services include grocery delivery, airport pickups, luggage storage, and car rental connections. In major U.S. cities, Airbnb has partnered with Instacart to allow guests to order groceries before arriving at their accommodations. Additionally, the company will offer airport pickup services through Welcome Pickups and luggage storage options in collaboration with Bounce in key cities worldwide. By late summer, users will also be able to search for and book nearby rental cars through the app. ◆ Addition of Boutique Hotels and Local Experiences Airbnb will also revamp its accommodation lineup and experience offerings. The platform will add boutique and independent hotels in 20 major cities worldwide, selected based on location and design criteria, excluding large hotel chains. The local experience category will feature over 3,000 programs that allow travelers to explore global landmarks like the Tower of London and Tokyo Skytree with local experts, as well as 2,500 culinary experiences. Notably, ahead of the 'FIFA World Cup 2026' in North America, special experiences will be available for watching matches or training with legendary soccer players in host cities. ◆ Enhanced Platform Usability with AI Technology AI technology will be integrated across the platform to improve search and booking convenience. The AI will analyze over a billion accumulated reviews, summarizing key information such as location, amenities, and family-friendliness. In the second half of the year, a feature will be introduced that allows users to compare accommodations saved in their wish lists at a glance. Additionally, new features will include a 'shared itinerary' for planning trips with companions and a 'connections and travel map' to check recommendations from friends. The AI-based customer support assistant currently supports multilingual chat and will expand to voice support later this year. Brian Chesky, CEO of Airbnb, stated, "We aim to provide more meaningful travel experiences through unique accommodations, differentiated local experiences, and convenient additional services that go beyond simple lodging."* This article has been translated by AI. 2026-05-23 10:22:43

Food Companies Expand Offline Presence with Permanent Locations Food manufacturers are stepping out of their factories. The trend of offline marketing, which previously focused on short-term pop-up stores and limited-edition merchandise, is evolving into permanent brand spaces. These locations are designed to allow consumers to continuously experience the company’s food culture and brand philosophy in their daily lives, establishing a presence in key commercial areas throughout Seoul. According to industry sources, Harim Industries opened a 'Jangin Ramen' snack bar near Seoul City Hall on May 8. This permanent location features a menu that includes its premium brand, featuring Jangin Ramen, bibim-myeon, and juicy dumplings. It is considered unusual for a ramen manufacturer to operate a direct snack bar centered around its own products. A Harim representative stated, "We focused on allowing consumers to naturally experience the brand by tasting finished dishes firsthand." Ottogi is offering dining, café, and bakery services through its multi-cultural space 'Rolly Polly Cotto' in Nonhyeon-dong. The venue showcases a variety of unique dishes and desserts made with Ottogi products, along with exhibitions that highlight the brand's history. This initiative is interpreted as an effort to strengthen the image of Ottogi as a food culture brand, transcending its identity as a food manufacturer. Dongseo Foods is enhancing its premium coffee expertise at 'Maxim Plant' in Hannam-dong, where it showcases the coffee roasting process and production methods. Visitors can observe the transformation of green coffee beans into roasted coffee and enjoy a selection of single-origin coffees and signature drinks. This experiential space emphasizes the company’s identity as a premium coffee specialist through its expertise and R&D capabilities. Pulmuone is focusing on promoting plant-based food culture through its vegan restaurant 'Plantude.' While offering a menu composed entirely of plant-based ingredients, the restaurant does not overtly advertise itself as vegan. It aims to connect vegan food with a sophisticated and enjoyable dining experience. A Pulmuone representative described Plantude as a space that proposes a plant-based lifestyle. A commonality among these spaces is their prioritization of building relationships with consumers over profitability. An industry insider noted, "Considering rent and operating costs, the profitability of the dining business itself is not significant, but the goal is to create experiences that allow consumers to remember the brand physically." The strategic locations of these spaces in key commercial areas such as Hannam-dong, Nonhyeon-dong, and near City Hall are particularly significant. These areas attract a large influx of the trend-sensitive 2030 demographic and are frequented by foreign tourists. Another industry source remarked, "To move away from the outdated image of manufacturing companies, we needed spaces that young consumers would voluntarily visit and stay in." Experts analyze this trend as a structural change rather than a temporary fad. In an era where differentiating brands solely based on taste and quality has become challenging, the competitive landscape is shifting towards integrating deeply into consumers' daily lives and preferences. Lee Eun-hee, a professor of consumer studies at Inha University, stated, "It is now difficult to achieve clear brand differentiation based solely on product taste or quality. The future competition in the food industry will revolve around not just 'what is being sold,' but 'how it integrates into consumers' daily lives and the experiences it offers.'"* This article has been translated by AI. 2026-05-23 10:21:00