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Kim Min-seok Aims to Build a Competent, People-Centric Democratic Party Kim Min-seok, newly elected leader of the Democratic Party, declared on August 17 that he aims to create a competent, people-centered party through the "ABC Plan." He also stated that the relationship between the party and the government will be a "creative, horizontal collaboration."In his acceptance speech following the national convention held at the Daejeon Convention Center, Kim said, "I devised the ABCD growth strategy during the Lee Jae-myung administration. This time, I will implement the Democratic Party's ABC Plan," adding, "The Democratic Party will become a competent, people-centered majority party moving forward."Kim emphasized that while he will fully support President Lee Jae-myung, he will maintain a collaborative, horizontal relationship. He stated, "The Democratic Party will now strive for the success of President Lee and the people's sovereignty government."He also expressed gratitude to his fellow candidates, Jeong Cheong-rae and Song Young-gil, who competed in the party's primary. Kim remarked, "It was an honor to compete with Jeong, who has superior capabilities as a champion of one person, one vote, and with Song, a prepared leader. The Democratic Party will continue to work with them. We will surely overcome internal and external challenges together with our comrades."Reflecting on his political journey, Kim shared his aspirations for the future. He noted, "As a 20-year-old student council president at Seoul National University demanding the truth about the Gwangju Democratization Movement, I have now become the leader of the Democratic Party, the only historical party in South Korea, after 40 years. It is a great honor to follow in the footsteps of my lifelong mentor, former President Kim Dae-jung, and I am proud to follow President Lee, my lifelong comrade. I will ensure we achieve the K-Golden Era."* This article has been translated by AI. 2026-08-17 19:24:00
Kim Min-seok takes S. Korea's ruling party helm SEOUL, August 17 (AJP) - South Korea's governing party handed its leadership on Monday to the man who served as President Lee Jae Myung's first prime minister, giving the president's closest political partner control of the party machine three days after his approval rating fell to the lowest level of his term. Kim Min-seok took 54.08 percent of the vote at the Democratic Party of Korea's national convention in Daejeon, defeating the incumbent leader, Jung Chung-rae, who finished with 45.92 percent. He becomes the second party leader to serve under Lee's government. No candidate cleared a majority on the first count. Voters had ranked the three contenders in order of preference, and when the first tally came up short, the second choices of those who had placed Song Young-gil at the top were added to the totals of the other two. Song finished third. Votes cast by delegates and dues-paying members carried 70 percent of the weight in the result, with a public opinion survey accounting for the remaining 30 percent. The party applied a one-member-one-vote rule for the first time. The new leadership serves a two-year term and will control candidate nominations for the 2028 general election, which makes the post one of the most powerful in the governing camp. Kim told the convention he would rebuild the party around a plan he labeled ABC. A stands for affordability, which he described as politics organized around the cost of living. B stands for broad, meaning a party that adds rather than subtracts. C stands for competence. "Our language, our policies, our attitude and our culture will all evolve," he said. He also set out how he intends to handle the party's dealings with the presidential office, promising what he called a creative horizontal relationship of full cooperation in which the party works for the president's success rather than against it. In his final appeal to delegates before the vote, Kim had put the case for his candidacy in blunter terms, saying the campaign was driven by fear "that the Democratic Party will be shaken, that the government will be shaken, that relations between the party and the government will be shaken, that President Lee Jae Myung will be shaken." The numbers behind that anxiety had landed the previous Friday. Gallup Korea found that 44 percent of respondents approved of Lee's performance in a survey conducted from Aug. 11 to 13, against 46 percent who disapproved. It was the first time disapproval had run ahead of approval since he took office last year. Three weeks earlier, approval had stood at 51 percent. The leadership race itself grew out of the June 3 local elections. The Democratic Party of Korea won 12 metropolitan mayor and governor posts against four for the opposition People Power Party, but it lost Seoul to Oh Se-hoon, and lawmakers began blaming Jung publicly for that defeat within a day of the count. Kim, 62, opened his speech by counting 40 years back to the start of his public life, when he was elected student council president at Seoul National University at the age of 20 and joined the campaign demanding an accounting for the military crackdown in Gwangju in May 1980. He served prison time for organizing protests against the government of Chun Doo-hwan. He has represented the Yeongdeungpo-B district of Seoul across four terms in the National Assembly, split by an 18-year absence. He first won the seat in 1996 at 32, the youngest member of that assembly, and returned to parliament only in 2020 after losing the Seoul mayoral race in 2002. In 2000, he served as chief of staff to Kim Dae-jung in the late president's separate capacity as leader of the governing party, and he has since held the posts of supreme council member, policy committee chairman, and head of the Democratic Research Institute. Lee named him prime minister in July 2025. He left office at the end of June to enter the leadership race, and Han Seong-sook, the former Naver chief executive, replaced him on July 1. The council Kim will chair, however, was shaped by the camp he beat. Choi Min-hee finished first among the five elected supreme council members, taking the senior seat, followed by Park Sun-won, Suh Mi-hwa, Lee Sung-yoon and Han Min-soo. Choi, Lee and Han had campaigned under the banner of Team Jung Chung-rae. 2026-08-17 19:22:12
Next Battleground in Healthcare: Dementia as a New Focus for Pharma Companies Global pharmaceutical companies that have dominated the obesity treatment market are now targeting dementia as their next battleground. With the rapid increase in patient numbers due to an aging population, the Alzheimer's treatment market is poised for significant growth following the approval of new drugs.According to IQVIA, a pharmaceutical market research firm, the global Alzheimer's treatment market, valued at $4.21 billion in 2022, is expected to triple to $16 billion by 2030. By 2033, it is projected to reach $30.8 billion.As dementia treatments emerge as the next potential cash cow after obesity drugs, major pharmaceutical companies are making aggressive investments.Eli Lilly is channeling profits from its obesity drugs, Mounjaro and Zepbound, into expanding its Alzheimer's pipeline. In April, Lilly paid a $10 million upfront fee to Swiss firm AC Immune to expand a collaboration on tau-targeting small molecules. In June, it acquired a candidate for regulating amyloid beta production, ACD680, from Swedish company AlzeCure Pharma for up to $1 billion. This strategy indicates Lilly's intent to build a multi-layered pipeline that includes not only approved antibody treatments but also small molecules.The prescription of Alzheimer's treatments is also rising sharply. In South Korea, the drug Leqembi, developed by Eisai and Biogen, saw its prescriptions increase from 167 in its first month after its December 2024 launch to a cumulative total of 13,719 by August of the following year, an increase of approximately 82 times. Additionally, the U.S. Food and Drug Administration (FDA) recently approved a self-administered subcutaneous injection formulation of Leqembi, allowing patients to begin treatment without intravenous administration.As South Korea enters a super-aged society, domestic companies are also entering the competition for dementia treatments. Aribio completed a global Phase 3 clinical trial, POLARIS-AD, for its oral treatment AR1001 in June, involving 1,535 early Alzheimer's patients, with 1,348 completing the 52-week treatment. Detailed results are expected to be presented at the international conference in Boston this November.ABL Bio secured a technology transfer agreement worth approximately $3.1 billion with GSK last year for its blood-brain barrier shuttle platform, Grabody-B. Separately, it is expanding its Alzheimer's dual antibody pipeline, leveraging its collaboration with Sanofi on a Parkinson's treatment, ABL301. Oscotec transferred its tau-targeting antibody, ADEL-Y01, to Sanofi for up to $1.04 billion last December, while Dong-A ST presented non-clinical data on its tau aggregation inhibitor, DA-7503, at the recent AAIC conference, positioning itself as a contender.The domestic clinical infrastructure supports this trend. According to the Ministry of Food and Drug Safety, the number of approved clinical trials for central nervous system (CNS) diseases in South Korea reached 67 last year, an increase of over 80% from 37 in 2021. Among these, 12 were related to Alzheimer's, the highest number in the past six years.A representative from a biotech company developing dementia treatments stated, "The Alzheimer's treatment market is expected to grow at an annual rate of over 13%. It will emerge as the forefront of competition for next-generation biopharmaceuticals that integrate antibody, genomic, and brain delivery platform technologies."* This article has been translated by AI. 2026-08-17 19:00:20
Next-Generation Alzheimer's Treatment Focuses on Tau Protein and Combination Therapy Recent developments in Alzheimer's drug research are increasingly focusing on expanding treatment targets to include tau protein and combination therapies. While anti-amyloid treatments have been shown to slow disease progression, they have not completely halted the disease, leading to a growing analysis of complementary treatment options. According to industry reports, the abnormal accumulation of amyloid beta is considered one of the key pathologies of Alzheimer's disease. In South Korea, a monoclonal antibody treatment targeting amyloid protein is set to be introduced in 2024, marking the beginning of targeted therapies. In the disease progression process, amyloid is identified as a relatively early pathology, while tau is recognized as a later pathology closely associated with neuronal damage and clinical symptoms. Recent advancements in tau positron emission tomography (PET) and fluid biomarker technologies have improved patient screening and treatment efficacy evaluation, providing a foundation for a combination approach targeting tau. According to statistics from the Alzheimer's Association, a total of 158 Alzheimer's treatments are expected to be developed this year, with 192 clinical trials evaluating these treatments as of January. Internationally, Biogen's tau generation inhibitor candidate, diranersen, has garnered attention. Although the primary endpoint was not met in the recently announced Phase 2 CELIA study, it demonstrated a reduction in total tau levels in cerebrospinal fluid by an average of 50-65%, and some cognitive improvement was observed in the low-dose group, indicating the potential for tau-targeted therapies. Development strategies have diversified to include methods that inhibit the propagation of pathological tau, as well as antisense oligonucleotides (ASO) and small interfering RNA (siRNA). However, no tau-targeted therapies have been approved to date, and there is still insufficient evidence to prove their efficacy and safety compared to anti-amyloid treatments. Professor Kang Dong-woo of the Department of Psychiatry at Seoul St. Mary's Hospital stated, "The fact that tau is located inside neurons, the heterogeneity of pathological tau forms, brain delivery, and the appropriate timing for treatment are still challenges that need to be addressed. Ultimately, it is likely that these therapies will develop into complementary treatments used in combination or sequentially rather than replacing amyloid treatments." In South Korea, related drug development is also ongoing. Notable candidates include ADEL-Y01, co-developed by Oscotec and ADEL, and DA-7503 from Dong-A ST. ADEL-Y01 is an antibody that selectively targets pathological acetylated tau, with initial safety and pharmacokinetic data secured, and it was licensed to Sanofi last year. However, its efficacy in existing patients has yet to be confirmed. DA-7503 has also completed Phase 1 clinical trials in healthy individuals, with efficacy validation still pending. Professor Kang noted, "The domestic achievements are at an early stage, confirming the potential for clinical entry and global commercialization. It is crucial to demonstrate in future Phase 2 trials whether changes in tau PET and cerebrospinal fluid markers translate into delays in cognitive decline and daily functioning in patients."* This article has been translated by AI. 2026-08-17 19:00:20
Death Toll Rises to 54 After 7.7 Magnitude Earthquake in Indonesia's Flores Island A 7.7 magnitude earthquake that struck Flores Island in Indonesia has resulted in a rising death toll. The ongoing aftershocks have left many displaced residents in severe distress. As of August 17, local time, the National Disaster Management Agency (BNPB) reported that the earthquake, which occurred on August 15 off the northern coast of Flores Island in the eastern Sunda Islands, has claimed 54 lives and injured 135 people. More than 1,300 homes have been affected, including approximately 900 that were severely damaged, displacing around 12,800 individuals across various villages. Residents are experiencing heightened anxiety due to continuous aftershocks. The U.S. Geological Survey (USGS) reported a 5.7 magnitude aftershock occurring at 8:46 a.m. on August 17, about 42 kilometers offshore from Ende, the central area of Flores Island. According to authorities, there have been a total of 995 aftershocks since the initial quake. Many residents are spending nights outdoors, relying on temporary shelters, local soccer fields, and tarpaulin tents due to the risk of further building collapses. The Indonesian government declared a 14-day state of emergency on August 16, mobilizing over 3,500 military and police personnel and deploying aircraft to deliver 275 tons of relief supplies. However, many areas remain isolated due to landslides and blocked roads, hindering aid efforts. Flores Island, located in the Pacific Ring of Fire, is home to approximately 2 million residents. The island was previously struck by a 7.7 magnitude earthquake and tsunami in 1992, which resulted in around 2,500 fatalities. 2026-08-17 19:00:00
Weather Forecast: Southern Regions to See Rain, Heat Continues in Capital Area On Tuesday, August 18, rain and showers are expected primarily in the southern regions, while the capital area and Chungcheong provinces will continue to experience heat. According to the Korea Meteorological Administration on August 17, the central region will be mostly cloudy, while the southern regions and Jeju Island will be generally overcast. Rain will fall in the Gyeongnam area until the morning, and along the southern coast of Jeonnam and in Daegu and southern Gyeongbuk from dawn to morning. Jeju Island may also see rain continuing into the afternoon. Expected rainfall amounts are 20 to 60 mm for Busan, Ulsan, and the southern coast of Gyeongnam, 10 to 60 mm for Jeju Island, and 5 to 30 mm for inland Gyeongnam and southern Daegu and Gyeongbuk. From the afternoon to evening, unstable atmospheric conditions may bring scattered showers of 5 to 30 mm to southern Chungcheong and various areas in the south. Caution is advised as these showers may be accompanied by strong winds and thunder. Particularly in the southern coast of Gyeongnam, which has experienced record rainfall, the ground is very unstable, necessitating special precautions against landslides and soil runoff. While temperatures may temporarily drop in areas experiencing rain, regions less affected by rain will see hot and humid air, leading to continued heat. With heat advisories in effect for parts of the western Jeolla coast, the perceived temperatures in the capital area, Chungcheong provinces, and southern regions are expected to rise to around 33 degrees Celsius. Overnight, urban and coastal areas may experience tropical nights with minimum temperatures remaining above 25 degrees. The minimum temperatures on the morning of August 18 are forecasted to be between 21 and 25 degrees Celsius, with maximum daytime temperatures expected to reach 30 to 33 degrees Celsius. In major areas, morning minimum temperatures are projected as follows: Seoul 24 degrees, Incheon 24 degrees, Suwon 23 degrees, Chuncheon 23 degrees, Gangneung 23 degrees, Cheongju 24 degrees, Daejeon 24 degrees, Jeonju 24 degrees, Gwangju 24 degrees, Daegu 24 degrees, Busan 25 degrees, and Jeju 26 degrees. Daytime maximum temperatures are expected to be: Seoul 32 degrees, Incheon 31 degrees, Suwon 32 degrees, Chuncheon 31 degrees, Gangneung 32 degrees, Cheongju 32 degrees, Daejeon 32 degrees, Jeonju 32 degrees, Gwangju 32 degrees, Daegu 32 degrees, Busan 31 degrees, and Jeju 32 degrees. Meanwhile, due to favorable atmospheric dispersion and rainfall, air quality across all regions is expected to be at a 'good' level.* This article has been translated by AI. 2026-08-17 18:40:00
Half of Stocks Decline Despite Upgrades from Brokerages Brokerage firms' investment opinions have not served as a reliable guide for stock prices. Approximately half of the stocks that received upgraded ratings from brokerages subsequently saw their prices decline. Conversely, about one in three stocks that received downgrades experienced price increases.According to data from FnGuide, an analysis of stock price movements for companies that received either upgrades or downgrades from brokerages this year, up to August 12, revealed these trends.Brokerages typically provide target prices along with their investment opinions, but in the market, changes in investment opinions are often viewed as more direct signals for investors than target price adjustments. While target price changes frequently occur due to shifts in earnings forecasts or valuation changes, a change in investment opinion is interpreted as a fundamental shift in the brokerage's investment judgment regarding that stock. Notably, brokerages tend to be reluctant to issue 'sell' ratings, leading to downgrades being interpreted as de facto sell signals.Among the 242 stocks that received upgrades, 127 saw their prices rise on the day the report was published, accounting for 52.5% of the total. In contrast, 110 stocks (45.5%) experienced price declines, while 5 stocks (2.1%) remained unchanged. The average increase for the rising stocks was 6.2%, whereas the average decline for the falling stocks was greater at 8.11%.Looking at the situation over time, the results were not significantly different. As of the closing prices on August 12, only 119 stocks (49.2%) that received upgrades saw their prices increase, while 122 stocks (50.4%) declined. One stock (Dongyang Life) was halted after experiencing a drop. Thus, more than half of the stocks that received upgrades ultimately saw their prices fall. The average increase for the rising stocks was 29.7%, while the average decline for the falling stocks was 21.0%.In contrast, the directionality for stocks that received downgrades was relatively clear. Among the 114 downgraded reports, 79 stocks (69.3%) saw their prices fall on the day the report was published. Meanwhile, 33 stocks (28.9%) increased, and 2 stocks (1.8%) remained unchanged. The average decline for the falling stocks was 5.2%, while the average increase for the rising stocks was 5.4%. As of the closing prices on August 12, 78 stocks (68.4%) that received downgrades fell, while 36 stocks (31.6%) increased. The average increase for the rising stocks was 21.2%, which was similar to the average decline of 22.1% for the falling stocks.* This article has been translated by AI. 2026-08-17 18:32:00
Investors Struggle with Diverging Stock Predictions Amid Market Volatility Brokerage firms are presenting widely varying forecasts, not only in investment opinions but also in target prices and KOSPI projections. Just two months ago, many brokerages were optimistic about a rising KOSPI, but they have recently begun to lower their target prices, with some individual stock targets diverging by more than three times.According to financial information provider FnGuide, reports released over the past three months show a staggering difference in target prices for SK Hynix, ranging from 1.48 million won to 4.7 million won, a gap of 3.22 million won. The highest target price is 3.18 times the lowest. Samsung Electronics also shows a difference of 300,000 won to 650,000 won, a 2.17-fold variation. Other major stocks in the KOSDAQ market, such as SK Square, Samsung Electro-Mechanics, and Samsung SDI, also exhibit target price discrepancies exceeding twofold.Not only are individual stock forecasts diverging, but overall market outlooks from brokerages are also markedly different. Daishin Securities recently revised its KOSPI forecast for the year from 11,500 points to the 9,300 range, citing rising bond rates and the potential for further rate hikes, which led to a reduction in the target price-to-earnings ratio (PER) for semiconductors from 8 to 7. This adjustment also reflects a sharp upward revision in earnings expectations for non-semiconductor sectors. With the export momentum outside of semiconductors just beginning to recover, the likelihood of further valuation expansion appears limited.Shinhan Investment Corp. adjusted its forecast on July 30, lowering its previous estimate of 11,000 points to 8,300 points for the third quarter and 8,800 points for the second half of the year, factoring in interest rate hikes and changes in earnings per share (EPS). Kiwoom Securities noted that the current earnings season for the second and third quarters is reaffirming the reliability and visibility of semiconductor profits, predicting a return to the historical valuation band lower limit of 9,000 points by year-end.While domestic brokerages are consistently lowering their forecasts, global investment banks remain optimistic about the South Korean stock market. Goldman Sachs stated on August 4 that the current KOSPI market reflects excessive pessimism compared to fundamentals, maintaining a 12-month target index of 12,000 points. Morgan Stanley also kept its target of 9,000 points while suggesting a short-term range of 5,500 to 10,500 points. JP Morgan, on July 21, reiterated its 'overweight' opinion on the KOSPI with a 12-month target of 12,500 points. This marks a stark contrast in market outlooks within just a few months.The challenge for investors lies in the tendency to accept KOSPI forecasts and target prices as definitive investment criteria. In an unclear market direction, extreme variations in predictions from different brokerages make it difficult for investors to determine which figures to trust.Industry experts explain that the significant differences in target prices arise from varying assessments of a company's future performance and appropriate valuations. Baek Young-chan, head of the research center at Sangsangin Securities, noted that the methods used to calculate target prices differ among brokerages. Some may apply discounted cash flow (DCF) methods, while others might use relative valuation metrics like PER or price-to-book ratio (PBR).Additionally, differences in earnings estimates are a key variable influencing target prices. Baek stated, “The methods of estimating profits may vary, and even for the same company, differing estimates of operating profit can lead to discrepancies in EPS and, consequently, target prices.”In a volatile market like this year, where stock prices have fluctuated sharply in a short period, it has become increasingly challenging to determine appropriate stock prices using traditional valuation methods.Choi Hyun-jae, head of the research center at Yuanta Securities, remarked, “If there had not been significant market volatility, such discrepancies in target prices would not have occurred. In this instance, across all sectors, particularly in IT, robotics, and shipbuilding, analysts using their traditional tools to set target prices have found it meaningless in the market conditions that persisted until July.”He added, “Analysts’ target prices are officially set as 12-month targets, and while they may not react sensitively to fluctuations, they also consider long-term perspectives, which can lead to time lags in their assessments.”* This article has been translated by AI. 2026-08-17 18:32:00
SK Hynix Accelerates Semiconductor Expansion in Yongin and Cheongju The South Korean government is emphasizing the early operation of semiconductor production facilities, and SK Hynix is accelerating its capacity expansion in Yongin and Cheongju. Following the advancement of the first cleanroom operation at the Yongin phase one fab, the company is also starting construction on phase two. In Cheongju, after the early operation of the next-generation DRAM production line, the company is expanding its advanced packaging production facilities. This investment surge by the company aligns with the government's push for rapid semiconductor infrastructure development in response to AI memory supply shortages.According to industry sources on August 17, SK Hynix plans to open the first cleanroom of its semiconductor cluster phase one in Yongin's Cheoin-gu, Wonsam-myeon, in February 2027, three months earlier than the initially scheduled May. Approximately 31 trillion won is being invested in the construction of phase one. Cleanrooms for phases two to six are planned to be built sequentially by the end of 2030.Construction is also underway for phase two at the Yongin site. SK Hynix began the foundation work for phase two in April and plans to start building construction this month. Phase two will include three cleanrooms, which the company aims to use as a foundation for future capacity expansion.The government continues to push for expedited semiconductor production facility construction. President Lee Jae-myung emphasized during a public-private joint inspection meeting on July 6 that administrative procedures should be conducted concurrently rather than sequentially to save time. He pointed out that the progress of the Yongin semiconductor cluster project was not sufficient.SK Hynix is also accelerating its investment in Cheongju. The Cheongju M15X cleanroom opened in October last year, ahead of schedule. Wafer input began in the first quarter of this year, and equipment installation is currently being carried out sequentially. Approximately 20 trillion won is being invested in M15X to secure next-generation DRAM production capacity, including high-bandwidth memory (HBM).Investments in both front-end and back-end processes are ongoing in Cheongju. SK Hynix is constructing an advanced packaging fab, P&T7, with an investment of 19 trillion won. Construction began in earnest in April, with a goal to complete the cleanroom by the end of 2027. P&T7 will serve as a back-end hub for packaging DRAM produced at M15X into HBM products.The acceleration of SK Hynix's investment schedules in Yongin and Cheongju is driven by the increasing demand for memory due to the expansion of AI data centers. The company recently announced that demand for advanced memory is rising due to the proliferation of AI learning, inference, and cloud services. As hyperscalers propose long-term investments in AI data centers, the demand for long-term supply contracts for AI memory, including HBM, is also growing.Yongin and Cheongju will have distinct roles in this expansion. Yongin will serve as a hub for large-scale front-end production capacity focused on HBM and premium DRAM, while Cheongju will produce next-generation DRAM at M15X and perform advanced packaging at P&T7. SK Hynix plans to link the production facilities in both regions to enhance its AI memory supply capabilities.As the government hastens the approval and infrastructure development for semiconductor production facilities, SK Hynix is also advancing the operational timelines of its existing production sites. Industry analysts suggest that the rapid increase in AI memory demand is making the timing of securing production facilities a competitive advantage.One semiconductor industry insider stated, "It has become crucial to supply the required quantities to customers when they need them, especially for HBM. The speed at which Yongin and Cheongju can secure production capacity will impact future supply responsiveness." 2026-08-17 18:16:00
SK Hynix Achieves Rapid Inventory Turnover Amid Strong HBM Sales SK Hynix has established a 'rapid inventory turnover' structure that connects chip production directly to sales, driven by strong demand for high-bandwidth memory (HBM). The acceleration in sales has significantly increased inventory turnover rates, while also reducing the burden of inventory valuation losses, thereby enhancing the company's financial health.According to SK Hynix's semi-annual report released on August 17, the proportion of inventory assets to total assets decreased to 5.2% in the first half of the year, down from 8.1% at the end of last year. Although total inventory assets rose by 25.9% to 17.9857 trillion won from 14.2894 trillion won during the same period, the growth rate of sales has substantially outpaced the increase in inventory.The inventory turnover ratio also increased significantly from 2.8 to 3.1 in just six months. This metric indicates that the time chips spend in storage has been reduced.The rapid turnover is attributed to explosive sales growth. Revenue surged by 230.9%, rising from 39.8711 trillion won to 131.8950 trillion won, while the cost of goods sold increased by 36.2%, from 17.7858 trillion won to 24.2243 trillion won. The growth rates of both revenue and cost of goods sold have exceeded the rate of inventory increase, maximizing supply chain efficiency.The qualitative composition of inventory also shows a clear positive cycle. Work-in-progress inventory, rather than finished goods, increased by 20.3% year-on-year to 11.0788 trillion won. This indicates that the production lines for high-performance products like HBM, which have high process difficulty and long lead times, are operating at nearly 100% capacity. Instead of accumulating 'bad inventory' in warehouses, the company is seeing an increase in 'good inventory' that already has designated owners during production.As a result, the burden of inventory valuation losses has also decreased. The balance of the 'inventory valuation loss provision' for the first half of the year was 413.4 billion won, a 16.5% reduction from the end of last year, significantly lowering financial uncertainty.Industry experts note that the memory semiconductor business is rapidly transitioning from traditional 'bulk B2B' to 'pre-order based high-value B2B.' In the past, during downturns, accumulated inventory often led to substantial valuation losses, increasing financial burdens. However, the current HBM-focused structure allows for timely supply and minimal inventory, greatly enhancing resilience to market volatility.SK Hynix has secured long-term contracts based on pre-orders for next-generation HBM supply with major tech companies like NVIDIA. This structure ensures that sales channels and prices are established before production, particularly in the competitive landscape for high-performance memory for AI data centers. Given the nature of HBM, equipment investments and line operations are based on confirmed demand, significantly reducing inventory risk.An industry insider stated, "Pre-orders from big tech companies like NVIDIA, Microsoft, and Google for one to two years, and in some cases up to five years, have become the 'new normal' in the industry. Moving away from the old model of running fabs and accumulating inventory, the focus on confirmed quantities has been key to accelerating inventory turnover and maximizing profitability."* This article has been translated by AI. 2026-08-17 18:12:00