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U.S.-Japan Currency Cooperation Affects Treasury Yields Following a rare joint intervention by U.S. and Japanese foreign authorities in the market, U.S. long-term Treasury yields temporarily fell. However, forecasts suggest that structural upward pressures from growth, inflation, and fiscal policies will be difficult to suppress. Concerns have been raised that the global trend of rising long-term interest rates could also impact domestic government bond yields, leading to increased pressure on loan rates.According to Investing.com, the yield on 10-year U.S. Treasuries closed at 4.684% on August 4, down 6.1 basis points (1 basis point = 0.01 percentage points). This marked a second consecutive day of decline, following a drop of 4.26 basis points on August 2. This trend is attributed to the joint intervention by the U.S. and Japan, which took place from July 30 to August 1, during which they sold dollars and bought yen.While U.S. Treasury yields stabilized somewhat after the intervention, the upward trend has not been reversed. On August 4, the yield on 10-year Treasuries began to rise again. From the beginning of the year until the end of July, the yield had increased by 56.8 basis points. The yield on 30-year mortgages, which serve as a benchmark for U.S. home loans, also rose to 5.28% on July 31, the highest level in 19 years since July 2007.The Wall Street Journal reported that the yen's value, which has fallen to its lowest level in 40 years, poses a risk of pushing U.S. Treasury yields higher. Additionally, it noted that the U.S. is likely to support the yen to fulfill Japan's $550 billion investment commitment to the U.S.Japan is one of the largest holders of U.S. Treasuries. If the yen continues to depreciate excessively, Japanese authorities may sell U.S. Treasuries to defend the yen, which would lead to falling bond prices and rising yields. In fact, during Japan's interventions to defend the yen in April, May, and July 2024, its holdings of U.S. Treasuries decreased by a total of $59 billion. In April and May of this year, they also fell by $48.4 billion.Long-term Treasury yields reflect market expectations regarding growth, inflation, and fiscal policy. The ongoing conflict in the Middle East has caused a surge in international oil prices, raising concerns about prolonged inflation in the U.S. Increased fiscal spending and the burden of issuing government bonds are also contributing factors to rising long-term yields. Although U.S. Treasury yields regained some stability after the U.S.-Japan intervention, they have begun to rise again for these reasons.The domestic bond market is not immune to global long-term interest rate movements. Recently, domestic government bond yields have been rising, particularly for long-term bonds. The upward trend in long-term yields in major countries like the U.S. and Japan, along with expectations of sustained high domestic inflation, is increasing pressure on long-term interest rates.If long-term interest rates rise in an environment where inflation remains unstable, borrowers may face increased cost burdens. Rising long-term bond yields can exert upward pressure on loan rates through market rates such as bank bonds. Given the already high levels of household debt, this could pose challenges for consumption and investment.With forecasts suggesting that U.S. long-term Treasury yields will be difficult to lower, domestic government bond yields are also likely to face upward pressure. Choi Je-min, a researcher at Hyundai Motor Securities, stated, "The U.S. Treasury and the central bank may attempt to suppress coupon bond increases, but this may only provide short-term relief from rapid rate hikes. It will be challenging for long-term rates to normalize quickly."Kim Sung-soo, a researcher at Hanwha Investment & Securities, noted, "Long-term bond yields cannot ignore the impact of robust growth, expansionary fiscal policy, and the global trend of rising long-term interest rates. The direction of long-term rates will be determined by the contents of the 2027 budget proposal."* This article has been translated by AI. 2026-08-05 08:16:00 -
GS Caltex Automates Global Lubricant Logistics Center to Enhance Supply Chain Competitiveness GS Caltex announced on August 5 that it will fully automate its global lubricant logistics center in Incheon to enhance its supply chain competitiveness.The company plans to introduce South Korea's first four-way shuttle automated inbound and outbound system for hazardous materials, automating the entire logistics process starting early next year. This system will enable high-density logistics operations even in limited spaces.This project is expected to serve as a leading example of applying advanced automation technology in the specialized logistics environment of hazardous materials, enhancing both efficiency and safety through a digital transformation of logistics operations.GS Caltex generates more than half of its lubricant business revenue from exports. The company explained that it is pursuing this automation to proactively respond to increasing sales volumes, as supply stability and delivery competitiveness have become key factors in the global lubricant market.The four-way shuttle automated system will allow shuttles to move in four directions—forward, backward, left, and right—to automatically handle pallets. This system is designed to utilize space more effectively than traditional one-way systems, enabling the processing of larger volumes within the same area.With this new system, the product capacity of the Incheon global lubricant logistics center is expected to increase from approximately 3,700 pallets to over 4,600 pallets, representing a 24% expansion.Hyundai Glovis will be responsible for designing the smart logistics solution and building the integrated control system for this project.A GS Caltex official stated, "This collaboration is a pioneering project that demonstrates the feasibility of applying a four-way shuttle automated inbound and outbound system in the specialized logistics environment of hazardous materials. Based on our partnership with Hyundai Glovis, we aim to fully operate the automated global logistics center by early 2027, further enhancing productivity and safety."Additionally, Hyundai Glovis has previously conducted optimization consulting for GS Caltex's lubricant logistics network, in addition to the design and system construction for the smart logistics solution.* This article has been translated by AI. 2026-08-05 08:16:00
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KakaoBank Reports Record Earnings of 140.8 Billion Won in Q2 카카오뱅크 has achieved its highest-ever performance in the first half of this year, driven by an increase in personal business loans and growth in its platform services.On August 5, KakaoBank announced that its net profit for the second quarter reached 140.8 billion won, an 11.5% increase compared to the same period last year. For the first half, net profit rose 24.4% year-on-year to 328 billion won, marking the highest half-year performance to date.Interest income from loans in the first half increased by 5.9% year-on-year to 1.058 trillion won, bolstered by the expansion of personal business loans. By the end of the second quarter, the outstanding balance of personal business loans was 3.687 trillion won, an 8.3% increase from the previous quarter. Personal business loans accounted for 48% of the total loan growth in the first half.Non-interest income also grew, fueled by the expansion of platform services such as loan comparisons, investments, and payment processing. Non-interest income for the first half totaled 589.5 billion won, a 4.8% increase from the previous year, representing 36% of total operating revenue.Commission and platform revenue rose by 10.5% to 169.6 billion won. The amount of loans executed through partner financial institutions via the loan comparison service reached 1.56 trillion won, a 12% increase from the same period last year. The scale of check card payments also hit a record high of 6.3 trillion won for the quarter, contributing to the increase in commission revenue.In the second quarter, 520 billion won in new loans were provided to mid- to low-credit borrowers, with a total of 1 trillion won supplied in the first half. The delinquency rate for the second quarter was 0.51%, and the non-performing loan (NPL) ratio was 0.54%, remaining stable compared to the previous quarter.KakaoBank plans to accelerate its business diversification in the second half of the year. This month, it will launch 'Payment Home,' a service that integrates card payment history and benefits, and introduce its second private label credit card (PLCC). In September, it will expand its loan comparison service to the auto finance sector, allowing customers to compare various auto financing products at once.In the fourth quarter, KakaoBank will introduce a refinancing service that allows personal business owners to switch to real estate-backed loans from other financial institutions. A KakaoBank official stated, "We aim to expand inclusive finance and introduce innovative services based on stable growth in the second half, positioning ourselves as the preferred financial platform for customers." 2026-08-05 08:12:00
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Foreign Exchange Reserves Increase for Second Consecutive Month to $427.95 Billion South Korea's foreign exchange reserves increased for the second consecutive month in July, driven by the issuance of new foreign exchange bonds.According to the Bank of Korea on August 5, the country's foreign exchange reserves stood at $427.95 billion at the end of July, up $5.9 billion from the previous month’s total of $427.36 billion. This marks the second consecutive month of growth.A Bank of Korea official stated, "Despite foreign exchange swaps with the National Pension Service, the reserves saw a slight increase due to the issuance of new foreign exchange bonds, operational income, and the rise in the dollar-equivalent value of other foreign currency assets."By asset type, deposits rose by $860 million to $23.13 billion. Special Drawing Rights (SDR) increased by $60 million to $15.7 billion, while the IMF position grew by $10 million to $4.32 billion.Conversely, securities decreased by $340 million to $380.01 billion. Gold remained stable at $47.9 billion, reflecting its purchase price.Recently, the Bank of Korea's foreign asset management division began purchasing exchange-traded funds (ETFs) based on gold in the second quarter and plans to acquire additional physical gold produced by domestic companies soon.As of the end of June, South Korea's foreign exchange reserves ranked 10th in the world, surpassing Singapore, Italy, and France, moving up three spots from the previous month when it was ranked 13th. South Korea had fallen out of the top 10 in February but has returned after four months.* This article has been translated by AI. 2026-08-05 08:04:00
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Kiwoom Securities Lowers Kangwon Land Target Price Amid Renovation Impact Kiwoom Securities announced on August 5 that it has maintained a "buy" rating on Kangwon Land but lowered its target price from 22,000 won to 18,000 won, citing the significant impact of room renovations on operating performance.Kangwon Land reported a consolidated revenue of 345.6 billion won for the second quarter, a 4.2% decrease compared to the same period last year, while operating profit fell by 26.2% to 43.2 billion won. Although revenue met market expectations, operating profit fell short of forecasts. The decline in revenue due to room renovations was not substantial, but fixed cost burdens worsened profitability.Im Soo-jin, a researcher at Kiwoom Securities, explained, "Visitor numbers and drop amounts have continued to weaken through July, prompting us to revise down our performance estimates for the second half of the year and for 2027." Revenue from the casino segment decreased by 3.5% year-on-year to 319.9 billion won, while non-casino revenue dropped by 12.3% to 25.7 billion won. The hotel and condo renovations are expected to be completed in the first quarter of 2028 and the fourth quarter of 2027, respectively.However, Kiwoom Securities anticipates that the company's shareholder return policy will support the stock price. The estimated dividend per share (DPS) for this year is projected to be 740 won, with a dividend yield of approximately 5.1%. Additionally, the planned buyback of 7.4% of its own shares and further repurchases are expected to enhance per-share value.* This article has been translated by AI. 2026-08-05 08:00:00
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Korea fine drives Coupang to biggest loss since listing SEOUL, August 05 (AJP) -Coupang Inc. posted its largest quarterly operating loss since its 2021 New York listing after a record South Korean privacy fine pushed the company deeper into the red, while weaker profitability in its core retail business showed the deterioration extended beyond the one-off regulatory charge. The New York Stock Exchange-listed company reported an operating loss of $556 million for the second quarter ended June 30, compared with operating income of $149 million a year earlier. Net loss widened to $570 million from $32 million a year earlier. The 624.7 billion won administrative charge tied to South Korea's record privacy fine accounted for much of the swing into the red. Even excluding the penalty, however, Coupang recorded an adjusted operating loss of $146 million, underscoring that margin pressure had already begun weighing on the business before the exceptional charge. The financial hit is also unlikely to end with the second quarter. Coupang expects to recognize another 370 billion won ($246 million) loss in the third quarter from last month's fire at its Incheon fulfillment center. The company is also contesting a 315 billion won ($208 million) tax assessment by South Korea's National Tax Service while separately challenging the privacy fine in court, a dispute that has become an irritant in U.S.-South Korea economic relations. As result, Coupang's first-half operating loss of about 1.19 trillion won has nearly erased the 1.28 trillion won in operating profit the company generated over the previous two years combined. Revenue rose 3.9 percent to $8.86 billion (13.3 trillion won), below analysts' expectations of roughly $9.05 billion. Excluding currency effects, however, revenue increased 10 percent, illustrating how the Korean won's sharp appreciation against the U.S. dollar masked much stronger underlying growth. According to the company, exchange-rate movements reduced reported quarterly revenue by roughly $548 million. The quarter was dominated by the record privacy sanction imposed in June by South Korea's Personal Information Protection Commission. The company estimated the penalty at approximately $410 million, making it the largest administrative sanction ever levied under South Korea's Personal Information Protection Act. The fine stems from a data breach disclosed in November 2025 that affected more than 37 million customers - or almost all of its users in Korea , together with findings that Coupang collected users' browsing activity without proper consent. Although Coupang has filed an administrative lawsuit seeking to overturn the regulator's decision, U.S. accounting rules required the company to recognize the entire charge during the quarter regardless of the outcome of the litigation. The case carries unusual significance because South Korea generates the overwhelming majority of Coupang's revenue despite the company being incorporated in Seattle and listed on the New York Stock Exchange. The dispute has also spilled into bilateral relations. South Korean Ambassador to the United States Kang Kyung-wha returned to Seoul for consultations as tensions over the case intensified. A separate report by the U.S. House Judiciary Committee accused Seoul of discriminating against American technology companies, a claim rejected by Korea's foreign ministry, which argued the report reflected only Coupang's position. Beneath the exceptional charges, the operating picture was more mixed than the headline results suggested. Adjusted EBITDA totaled $163 million, down 62 percent from a year earlier, while adjusted diluted loss per share narrowed to 9 cents after excluding the privacy fine. Reported diluted loss per share was 32 cents. The company's core Product Commerce business, which generates the bulk of revenue, showed slowing momentum. Revenue increased just 1 percent on a reported basis to $7.42 billion, although growth reached 8 percent on a constant-currency basis. Gross profit fell 5 percent, while segment adjusted EBITDA dropped 42 percent to $382 million, reflecting weaker profitability even before the regulatory charge. Product Commerce active customers increased 3 percent from a year earlier to 24.7 million, but revenue per active customer declined 2 percent in reported dollar terms, another sign that the stronger won distorted headline growth. On a constant-currency basis, spending per active customer increased 5 percent. By contrast, the company's Developing Offerings segment—including Coupang Eats, Taiwan and newer businesses—continued to expand rapidly. Revenue climbed 20 percent to $1.43 billion, gross profit jumped 32 percent, and adjusted EBITDA losses narrowed to $219 million from $235 million a year earlier, suggesting newer businesses are moving gradually toward scale. Cash generation also weakened during the quarter. Quarterly operating cash flow fell 33 percent to $367 million, while free cash flow declined 79 percent to $51 million. On a trailing 12-month basis, free cash flow plunged to $105 million, down 87 percent from a year earlier, reflecting heavier investment and weaker profitability. The company continued indulging shareholders despite the quarterly loss. Coupang repurchased 23.2 million Class A shares for $459 million during the quarter under the $1 billion buyback program approved earlier this year. The purchases contributed to a decline in shareholders' equity to $2.99 billion from $4.62 billion at the end of 2025, while short-term borrowings more than doubled during the period. Shares of Coupang closed at $16.78 on the New York Stock Exchange on Tuesday before falling about 5 percent in after-hours trading following the earnings release. The stock has lost roughly one-third of its value this year and trades near its 52-week low, leaving the company with a market capitalization of about $30 billion. Founder and Chief Executive Bom Kim has consistently characterized the major financial hits—including customer compensation following the data breach, the privacy fine, the Incheon warehouse fire and the tax assessment—as exceptional events rather than indicators of a structural deterioration. 2026-08-05 07:53:59 -
KOSDAQ Sees Positive Momentum Amid Single-Stock Leverage ETF Regulations ◆아주경제 주요뉴스▷단일종목 레버리지 규제 '풍선효과'? 모처럼 훈풍 불어오는 코스닥- As trading volume and value plummet, short-term funds that had been concentrated in large semiconductor stocks are showing signs of diversifying into KOSDAQ.- On August 4, the Korea Exchange reported that the trading volume of 16 single-stock leverage and inverse ETFs based on Samsung Electronics and SK Hynix totaled 138.99 million shares, a 6.3% decrease from the previous trading day (148.30 million shares on August 3). This marks an 88.7% drop compared to the trading volume of 1.226 billion shares on July 30, just before the regulations took effect. The trading value also fell to 1.2543 trillion won, less than half of the 3 trillion won recorded on the first day of the increased basic deposit requirement on July 31.- The decline in trading activity is attributed to the financial authorities' tightening of regulations. Starting July 31, the authorities raised the basic deposit requirement for single-stock leverage ETFs from 10 million won to 30 million won to mitigate excessive investment. This increase in the entry barrier is believed to have dampened short-term trading demand.- Funds that had previously concentrated on large-cap semiconductor stocks in the KOSPI through single-stock leverage ETFs are now shifting towards the KOSDAQ and growth stocks, which have been relatively neglected. In fact, the KOSDAQ closed at 780.72, up 43.37 points (5.88%) from the previous trading day, marking three consecutive days of gains since the implementation of the single-stock leverage regulations. ◆주요 리포트▷한국 7월 CPI: 계절적 인플레 ≠ 연속인상 조건 - South Korea's consumer price index (CPI) for July fell by 0.19% compared to the previous month, while rising 2.78% year-on-year, falling short of the consensus estimate of 2.9%.- Contrary to concerns, July's inflation rate entered the 2% range, but market attention seems to be focused on the rising core inflation pressure (+0.39% MoM) driven by an increase in personal services prices (+0.72%).- In August and September, consumer price inflation is expected to rise to 3.4% and 3.1%, respectively, due to the base effect of last year's SKT communication fee reduction and the Chuseok holiday impact.- Starting in the fourth quarter, a decline in crude oil import prices and stabilization of transportation costs are expected to bring the consumer price inflation rate down to around 2.5%.- Based on these assumptions, annual consumer price inflation is projected to stabilize at 2.6% and 2.0% for 2026 and 2027, respectively. ◆장 마감 후(4일) 주요공시▷ 현대그린푸드, 주주가치 제고 목적 약 132억5000만원 규모 자사주 소각 결정▷ 현대그린푸드, 100억원 규모 중간 현금배당 결정…주당 314원▷ 뉴로메카, 무상증자 권리락 실시…기준가 2만1000원▷ 대호에이엘, 상장폐지 이의신청 기각…상장폐지 절차 진행 예정▷ 삼일씨엔에스, 문용진 대표이사 신규 선임…3인 각자대표 체제 전환 ◆펀드 동향(3일 기준, ETF 제외)국내주식형 -966억원해외주식형 -182억원 ◆오늘(수) 주요일정중국: 레이싱독 서비스업 PMI(7월)미국: ADP 민간고용(7월), ISM 서비스업 PMI(7월)* This article has been translated by AI. 2026-08-05 07:44:00
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IBK Securities: Kona I's Local Currency Business Supports Performance, Buy Recommendation Issued IBK Securities reported that Kona I's local currency business is supporting stable performance, while the expansion of the metal card market is expected to become a new growth driver. The firm has issued a 'buy' recommendation and set a target price of 64,000 won.Yu Chang-geun, a researcher at IBK Securities, stated, "Metal cards are not just simple substitutes for plastic cards; they are becoming a marketing tool for card companies and fintech firms. As competition intensifies among card companies to attract premium customers, the demand for metal cards will also grow."He added, "Currently, metal cards are applied only to a limited number of premium cards, but in the future, the market for premium metal cards featuring precious metal plating and gemstones is expected to expand, benefiting Kona I."The growth potential of the local currency business was also viewed positively. Yu noted, "Local currency has become a key tool for budget execution by the national and local governments. It is highly favored by residents, small businesses, and administrative agencies, and with the implementation of the Local Love Gift Certificate Act mandating administrative and financial support, there is a significant structural potential for expansion, regardless of political variables."He further stated, "As the breakeven point for local currency operations increases, Kona I's market position will become even more solid. The metal card market is also expanding with the introduction of Elon Musk's 'X Money,' which will drive performance growth by encroaching on the market share of global leader CompoSecure."* This article has been translated by AI. 2026-08-05 07:44:00
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Korea's FX reserves up marginally July on bond issuance and softer USD SEOUL, August 05 (AJP)- South Korea's foreign exchange reserves rose only marginally in July despite a record euro-denominated sovereign bond sale and favorable currency valuation effects, as foreign exchange operations and swaps with the National Pension Service offset much of the inflow, central bank data showed Wednesday. The country's reserves stood at $427.95 billion at the end of July, up $590 million from $427.36 billion a month earlier, according to the Bank of Korea. The modest increase came as gains from a weaker U.S. dollar, investment returns on reserve assets and proceeds from the government's foreign exchange stabilization bond issuance were largely offset by foreign exchange swaps with the National Pension Service and other market operations. The BOK did not disclose how much each factor contributed to the monthly change, consistent with its practice of withholding detailed breakdowns of reserve movements related to currency market intervention and swap transactions. The U.S. dollar lost more than 8 percent against the Korean won in July from a prior month, steeper than 1.31 percent fall in the dollar index. South Korea's finance ministry raised 1.7 billion euros ($1.94 billion) through dual-tranche foreign exchange stabilization bonds on July 8, marking the country's largest-ever euro-denominated issuance. The sale consisted of 700 million euros of three-year notes and 1 billion euros of seven-year notes. The bonds were priced at 10 basis points and 28 basis points above the euro mid-swap rate, respectively, representing the lowest spreads ever achieved for Korean euro-denominated stabilization bonds. The ministry confirmed strong investor demand, secured despite heightened geopolitical uncertainty in the Middle East, reflected confidence in South Korea's economic fundamentals and was expected to lower overseas funding costs for Korean borrowers by establishing a tighter benchmark spread. The issuance completed the government's planned $5 billion equivalent foreign-currency bond program for this year. South Korea's reserves nevertheless remained $100 million below the $428.05 billion recorded at the end of 2025, leaving the country's external liquidity buffer broadly unchanged over the first seven months of the year. Securities, which account for the largest share of the reserves, fell $340 million from June to $380.01 billion, representing 88.8 percent of the total. Deposits increased $860 million to $23.13 billion, accounting for 5.4 percent of the reserves. Special Drawing Rights allocated by the International Monetary Fund rose $60 million to $15.70 billion, while South Korea's reserve position at the IMF increased $10 million to $4.32 billion. Gold holdings were unchanged at $4.79 billion, accounting for 1.1 percent of total reserves. South Korea was the world's 10th-largest holder of foreign exchange reserves at the end of June, the latest month available for international comparison. China remained the largest holder with $3.416 trillion, followed by Japan ($1.288 trillion) and Switzerland ($1.088 trillion). Russia, India, Taiwan, Germany, Saudi Arabia and Hong Kong ranked fourth through ninth, while Singapore placed 11th with $426.2 billion, slightly below South Korea's end-June total. 2026-08-05 07:37:33 -
Coupang Challenges Tax Agency's $300 Million Assessment 쿠팡의 모회사 쿠팡Inc가 국세청으로부터 약 3000억원 규모의 과세 예고 통지를 받고 불복 절차에 나선다. Coupang Inc. announced on August 5 that it is contesting a tax assessment of approximately 300 billion won (about $280 million) from the National Tax Service (NTS). The company disclosed in its second-quarter earnings report submitted to the U.S. Securities and Exchange Commission (SEC) that the NTS completed a tax audit of its South Korean subsidiaries in June and communicated the findings. The audit focused on corporate income tax and value-added tax for the tax years 2021 to 2025. The NTS's assessment includes additional tax payments, penalties, and interest. Coupang Inc. stated, "The notice primarily focuses on transfer pricing and transactions between our South Korean subsidiary, Coupang Corp., and Coupang Fulfillment Services (CFS). We have filed consolidated corporate income tax returns in South Korea, but the notice indicates that the NTS will not allow the tax treatment of corporate income tax expenses related to services provided by CFS to Coupang Corp., along with other tax adjustments." In response, Coupang Inc. plans to pursue administrative remedies and may file a lawsuit if necessary. The company emphasized, "We will actively uphold our position through all available appeal procedures." The NTS reportedly initiated the tax audit shortly after the data breach incident at Coupang in late December last year and has recently concluded its investigation. Additionally, losses from a fire at the Incheon logistics center are expected to be reflected in the company's third-quarter results. Coupang Inc. is currently assessing the extent of the losses, estimating that they could reach approximately 350 billion won (about $246 million), including the value of its own inventory, fixed assets, and obligations for seller inventory stored at the facility before the fire. The company plans to file insurance claims under property and liability insurance. Meanwhile, Coupang Inc.'s operating loss for the second quarter was reported at 835 billion won (about $556 million), a shift from an operating profit of $14.9 million during the same period last year. Revenue for the quarter was 13.3 trillion won (about $8.86 billion), reflecting a 4% increase compared to the previous year.* This article has been translated by AI. 2026-08-05 07:24:00