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  • Kim Ji-min Announces Pregnancy, Kim Jun-ho Calls It a Fairy Tale Miracle
    Kim Ji-min Announces Pregnancy, Kim Jun-ho Calls It a 'Fairy Tale Miracle' Kim Jun-ho and Kim Ji-min have announced they are expecting a child.On July 30, Kim Jun-ho shared a post on his social media, stating, "A small miracle has come to us like a fairy tale. Let’s meet our baby, my beloved wife and I, in good health. A new story for our family is about to begin."In the post, he included wedding photos and an ultrasound image of their baby.Friends and colleagues, including Seven, Kang Jae-jun, Shim Jin-hwa, Yang Sang-guk, Lim Woo-il, and Kwak Si-yang, offered their congratulations.Earlier that day, Kim Ji-min also took to her social media, saying, "Last year, we became a couple for eternity, and this year, we have become the family we dreamed of. A beautiful life has come to my small belly."She added, "With the support of my husband, who encouraged me not to rush or overdo it, we began our first IVF journey! It seems like the baby, whom we affectionately call 'Duroop,' has come to us on the first try. After passing the critical period, I can finally say it, and now I can sleep peacefully. We now have everything: just the two of us, our feelings, and Duroop!"Kim Jun-ho is known for his appearances on SBS's 'My Little Old Boy' and Channel S and E Channel's 'Going All the Way: Solo Tour.'Kim Ji-min is currently the MC for Channel A's 'Beauty Clinic Touch Me.'* This article has been translated by AI. 2026-07-30 16:28:00
  • SK Innovation Reports 2Q Operating Profit of 3.49 Trillion Won
    SK Innovation Reports 2Q Operating Profit of 3.49 Trillion Won SK Innovation announced on July 30 that it achieved a revenue of 29.15 trillion won and an operating profit of 3.49 trillion won for the second quarter of 2026. This marks an increase of 4.87 trillion won in revenue and 1.32 trillion won in operating profit compared to the previous quarter. Revenue rose by 49.9% year-on-year, and the company returned to profitability.The strong operating profit in the second quarter was largely attributed to improved performance in its lubricants and battery businesses.SK Enmove reported an operating profit of 691.9 billion won, an increase of 503.4 billion won from the previous quarter. The rise in margins for lubricant base oil, due to supply disruptions among major competitors in the Middle East, contributed to the growth in sales in key global markets.SK On's battery business achieved an operating profit of 821.8 billion won, marking a turnaround from an operating loss of 1.17 trillion won in the previous quarter. This improvement was driven by increased sales in Asia, receipt of customer compensation, and a rise in tax credits under the U.S. Inflation Reduction Act (IRA).Despite predictions from securities firms that SK On would be the only one of the three major battery companies to report a loss, it avoided this outcome and achieved the largest operating profit among the three, thanks to compensation received for contract cancellations from global automakers.SK On stated, "In addition to the one-time effects of customer compensation, we benefited from cost reduction efforts, increased sales in Asia, and the rise in IRA Tax Credits, which contributed to our return to operating profit."SK Energy, which operates in the refining sector, reported an operating profit of 651.2 billion won for the second quarter, with approximately 560 billion won attributed to inventory-related gains. The refining business continued to show solid performance in the second quarter, reflecting the lagging effects of rising oil prices and inventory effects.However, following the signing of a memorandum of understanding (MOU) for peace between the U.S. and Iran in June, expectations of reduced geopolitical risks in the Middle East led to a decline in oil prices, resulting in a decrease of 632 billion won in operating profit compared to the previous quarter. Additionally, maintenance on some facilities in May and June contributed to a decline in operational efficiency.SK Innovation explained, "The lagging effects and inventory-related gains from rising oil prices in April and May positively impacted SK Energy's performance, but the decline in oil prices at the end of the quarter reduced these gains, leading to a loss in June. During periods of falling oil prices, the costs of crude oil purchased at high prices are reflected with a delay, resulting in negative lagging and inventory effects, and potential losses from end-of-period inventory evaluations." 2026-07-30 16:28:00
  • Seouls ETF fallout leaves a costly lesson and search for accountability
    Seoul's ETF fallout leaves a costly lesson and search for accountability SEOUL, July 30 (AJP) - Funeral flowers stood outside the National Assembly, while online protesters called for the "death of single-stock leveraged ETFs." Seoul authorities have been rolling out one emergency action after another for damage control as the epic downward spiral in chip stocks themed around single-stock leveraged ETFs hemorrhaged investors from pensioners to teenagers. The public anger soon evolved into a broader debate over who should bear responsibility for one of the biggest retail-investor wipeouts in recent years. Regulators are now tightening rules on single-stock leveraged exchange-traded funds (ETFs), while the financial industry has agreed to overhaul trading practices to reduce the products' impact on the broader market. Yet some economists argue that restricting risky products cannot eliminate speculative demand and may instead discourage investors from learning how to manage risk. Following an emergency market review meeting chaired by Finance Minister and Deputy Prime Minister Koo Yun-cheol, the government announced four additional measures late Wednesday. The package caps individual holdings of single-stock leveraged ETFs at 20 percent of total investment assets, introduces an excessive-order surcharge modeled on the futures market, requires investors to complete simulated trading before purchasing the products and creates a legal basis for emergency market-stabilization measures, including temporary leverage adjustments similar to Hong Kong's variable-leverage framework. The new measures will complement a separate package of safeguards taking effect Friday. They include raising the minimum cash requirement for new or additional purchases to 30 million won ($20,600) from 10 million won, increasing the minimum trading unit to 20 shares, suspending new leveraged ETF launches, restricting securities firms' marketing activities and strengthening investor-education requirements. The latest steps followed a two-day market rout that exposed how quickly leveraged bets on South Korea's artificial-intelligence champions could unravel. The benchmark KOSPI plunged 10.84 percent on Tuesday and another 5.98 percent on Wednesday after falling as much as 12.6 percent intraday. Koo said single-stock leveraged products had amplified market swings by funneling investor money into a narrow group of companies. "We will manage the overall volume by setting individual investment limits," he said after chairing the emergency market review meeting at the Government Complex Seoul. Industry shifts trading practices Alongside the tighter regulations, the financial industry unveiled its own measures to reduce the products' influence on underlying share prices. The move reflects growing concern that ETF rebalancing has itself become a source of market volatility. At an emergency meeting hosted Wednesday by the Korea Financial Investment Association (KOFIA), chief executives from eight asset managers and liquidity providers (LPs) at major securities firms agreed to spread ETF rebalancing trades throughout the trading day instead of concentrating large buy and sell orders near the market close. Leveraged ETFs must rebalance their positions every trading day to maintain their target leverage ratio. When large volumes of buying and selling are concentrated toward the close, they can amplify swings in the underlying shares. Spreading those trades throughout the session is intended to reduce that feedback loop. Participants also pledged to reduce unnecessary LP trading, closely monitor ETF premiums and discounts, strengthen investor risk disclosures and cooperate with the government's investor-protection measures, including the higher minimum cash requirement and expanded investor education. Together, the government's regulations target speculative demand, while the industry's voluntary changes are designed to lessen the market impact of ETF trading itself. Even if the stock recovers, the ETF may not While the new rules may temper market volatility, they cannot change the mathematics behind leveraged ETFs. Hanyang Securities said Thursday that even if Samsung Electronics and SK hynix eventually recover to their previous price levels, investors in the corresponding leveraged ETFs could still suffer substantial losses because of the products' daily compounding structure. Between May 27, when the products were launched, and July 22, Samsung Electronics fell 15.2 percent while its associated leveraged ETFs lost an average of 40.2 percent. SK hynix declined 18.4 percent, but the corresponding leveraged ETFs dropped 49.4 percent. The brokerage also modeled a hypothetical scenario in which both stocks experienced the same day-to-day gains and losses but ultimately finished exactly where they started. Despite the full recovery in the underlying shares, Samsung-linked leveraged ETFs still lost an average of 14.4 percent, while SK hynix-linked products declined 21.1 percent. Single-stock leveraged ETFs are designed to deliver a multiple of a stock's daily—not cumulative—return. Because leverage is reset every trading day, gains and losses compound unevenly, meaning investors can lose money even if the underlying stock eventually returns to its starting point. The phenomenon is widely known as volatility drag. The findings underscore the need for stronger investor education, with Hanyang Securities arguing that many retail investors continue to buy two-times leveraged ETFs without fully understanding how the products work or the risks they carry. Can tighter rules break the vicious cycle? Yang Jun-sok, professor of economics at the Catholic University of Korea, said the latest measures are likely to reduce market-wide volatility but would do little to shield investors who have already accumulated heavy losses. Yang compared the new restrictions with South Korea's market-wide short-selling ban imposed in late 2023 after regulators uncovered illegal short-selling by several global investment banks. The ban helped calm volatility, he said, but came at the cost of capital-market development. By restricting access to a broader range of investment products and strategies, it reduced opportunities for retail investors to gain practical experience in managing risk. The policy also fueled complaints that individual investors had been unfairly excluded from higher-return strategies, adding to pressure to lift the restrictions. "One role of a mature capital market is to introduce various financial products and help investors — particularly retail investors — develop risk-management skills," Yang said. "When potentially risky products are repeatedly restricted or banned, investors may instead come to believe that anything still allowed by regulators is inherently safe." He argued that speculative demand itself is unlikely to disappear. Instead, investors may simply seek increasingly risky products overseas without improving their understanding of the risks involved. "If South Korea develops a reputation for not allowing higher-risk investment products, it could ultimately limit the growth and competitiveness of its capital market." Whether the latest restrictions ultimately succeed may depend less on limiting access to leveraged products than on whether they reduce the speculative behavior that fueled the boom in the first place. If investors simply migrate to higher-risk products overseas, South Korea could end up with a calmer market at home but little improvement in retail investors' understanding of risk. 2026-07-30 16:27:53
  • Hanwha chairmans three sons promoted in major leadership reshuffle
    Hanwha chairman's three sons promoted in major leadership reshuffle SEOUL, July 30 (AJP) - Hanwha Group said Thursday it will promote Chairman Kim Seung-youn’s three sons and replace the heads of five affiliates, in a major leadership reshuffle set to take effect on Aug. 1. Kim Dong-kwan, the chairman’s eldest son and vice chairman of Hanwha Group, will be promoted to senior vice chairman. Kim Dong-won, the second son and president of Hanwha Life, will become vice chairman, while Kim Dong-sun, the youngest son and vice president of Hanwha Vision, will be promoted to president. Hanwha said Kim Dong-kwan led the group’s defense, maritime, aerospace and energy businesses, driving rapid growth in global markets and successfully carrying out large-scale strategic projects. Kim Dong-won was credited with leading digital innovation and global expansion in the group’s financial business, while Kim Dong-sun was recognized for expanding Hanwha’s retail, leisure and food and beverage businesses, as well as producing results in advanced industries, including the semiconductor equipment market. The promotions come as Hanwha moves to expand business capabilities across key sectors. They also come after shareholders approved a plan to split Hanwha Corp. into a surviving company covering defense, shipbuilding, maritime, energy and financial businesses, and a newly created company covering tech and lifestyle businesses, a move seen as further clarifying the group’s third-generation succession structure. Hanwha also announced new CEO nominees for five affiliates. Lee Boo-hwan, head of Hanwha Aerospace’s guided weapons business, was named CEO nominee for Hanwha Aerospace’s business division. Hanwha said he will focus on expanding the company’s overseas defense business. The leadership change at Hanwha Aerospace comes after an explosion at the company’s Daejeon plant last month killed five people and injured two others. Yang Ki-won, CEO of Hanwha Impact, was named CEO nominee for Hanwha Systems. He is expected to lead the company’s global expansion in space and defense. Kang Jung-hoon, head of Hanwha TotalEnergies’ Daesan plant, was named CEO nominee for Hanwha Impact’s business division. Hanwha said he will focus on improving cost efficiency and profitability. Lim Dong-jun, head of Hanwha Asset Management’s strategic business unit, was named CEO nominee for Hanwha Asset Management. He will lead efforts to expand the company’s global and alternative investment businesses. Kim Ki-chul, CEO of Hanwha Vision, was named CEO nominee for Hanwha Semitech and will lead both companies. Hanwha said he will focus on expanding the semiconductor equipment business. The nominees will be formally appointed after approval at shareholders’ meetings and board meetings at each company. 2026-07-30 16:25:04
  • Local Night Market Pado Market Revitalizes Fishing Village in Gijang
    Local Night Market 'Pado Market' Revitalizes Fishing Village in Gijang Local night market 'Pado Market in Mundong' is generating explosive interest, with reservations selling out quickly, as it lights up the summer nights along the coast of Gijang.Gijang County announced on July 30 that it will host the night market event from August 1 to 2 at the Mundong breakwater in Ilgwang-eup to revitalize the fishing village.This event features a variety of cultural programs, including the debut of new trot songs by local seniors and documentary production, presenting a new model for fishing village revitalization.According to Gijang County, the main experiential programs at Pado Market, such as marine healing paddleboarding, cooking classes, and seaweed lunchbox making, have already reached full capacity for reservations.The overwhelming number of applicants has led organizers to adjust participant numbers based on their own criteria due to the high demand.The budget for this event is approximately 40 million won. While it does not reach the scale of large regional festivals, it boasts strong community participation and creative planning in a flea market format.To prepare for potential crowding, the county has shared site layouts and safety plans with disaster response departments and coordinated with local police and fire departments to establish a comprehensive traffic control and safety network.The highlight of the night market will be the live debut performance of the trot song 'Muno Seong Story' on the evening of August 1. This song was co-written by eight local seniors, who have an average age of 73 and have lived in the village for an average of 60 years.A representative from the organizing committee explained, "Initially, we planned to offer health and leisure programs like gardening and Pilates, but the seniors expressed a desire to 'have fun instead of just learning,' which inspired our planning."During the first two classes with instructor Jo Tae-jun, the seniors shared their cherished memories and local scenery, which became the lyrics of the song.Although they initially struggled with the unfamiliar tempo and recording process, the seniors' enthusiasm was undeniable, with one stating, "We stuck the lyrics on the refrigerator and sang them while passing by."During studio recording at Ulsan Music Creation Center, the eight voices blended harmoniously, leaving both the seniors and staff deeply moved.This beautiful endeavor is not a one-time performance. A professional director will film an official music video on August 10, and they aim to produce a documentary covering the entire process from songwriting to performance for submission to a film festival in the first half of next year.This event is part of the 'Mundong Living Area Fishing Village Revitalization Project,' which is set to run from 2023 to 2026 (with an extension planned until December 2027) in the Muno Seong village area of Ilgwang-eup, covering 244,000 square meters.Under the vision of 'Restoration and Coexistence in the Sea Garden,' this project involves public institutions such as the Ministry of Oceans and Fisheries, Busan Metropolitan City, and Gijang County. Private organizations 'Cultural Arts Plan B' and 'Local by Local' have formed a consortium to lead on-site operations.Cultural Arts Plan B, which oversees the trot program, focuses on community revitalization, cultural urban regeneration, and local content production.Partner organization Local by Local is responsible for discovering creators and developing and branding local products, enhancing economic self-sufficiency. They are also working on job creation and attracting residents to the fishing village alongside improvements to hardware infrastructure, such as the construction of a community support facility and maintenance of fishing port facilities.Woo Seong-bin, the head of Gijang County, stated, "Pado Market is a meaningful event created and participated in by the residents, showcasing the charm of the fishing village. I hope many people visit Mundong to create special summer memories through diverse experiences."* This article has been translated by AI. 2026-07-30 16:24:00
  • Hong Myung-bo Denies Team Discord Over Interview Boycott, Explains Tactical Decisions
    Hong Myung-bo Denies Team Discord Over Interview Boycott, Explains Tactical Decisions Hong Myung-bo, the head coach of the South Korean national soccer team, stated that there was no internal conflict within the team regarding the alleged interview boycott that arose during the 2026 FIFA World Cup in North and Central America.On July 30, Hong appeared as a witness at a hearing held by the National Assembly's Culture, Sports and Tourism Committee, where he denied allegations surrounding media interactions and player selections during the tournament.Previously, during a training session at the team's base camp in Guadalajara, Mexico, on June 8, some media members made inappropriate remarks towards the players, leading the team to refrain from participating in press conferences and interviews.During the hearing, lawmaker Jeong Yeon-wook from the People Power Party questioned Hong about rumors that he instructed players to end the interview boycott after the team's 1-0 loss to Mexico in the group stage, and that this led to conflicts with Son Heung-min (LAFC) and Lee Jae-sung (Mainz).In response, Hong firmly denied giving such an order, stating, "That is not true. I have never instructed the players to conduct interviews. While the players had differing opinions, I believe the gap was not significant enough to affect the team." He added, "Some players wanted to do interviews, while others felt they should wait until issues were resolved. Although there was no consensus, I hoped the matter would be resolved quickly through dialogue."He also dismissed claims that Son and Lee's exclusion from the starting lineup in the third group match against South Africa (which ended in a 1-0 loss) was related to the controversy."That is completely false. The decision not to include the two players was a tactical judgment," Hong explained. "I stood by the players and understood their perspectives well." He expressed disappointment that the issue originated from outside the team.Kim Jin-kyu, a former assistant coach who also testified, emphasized that the decision to exclude key players for the match against South Africa was not a retaliatory measure. When asked by lawmaker Choi Min-hee from the Democratic Party whether the exclusions were punitive, Kim replied, "There was absolutely none of that. The exclusion of Son Heung-min and Lee Jae-sung was a tactical decision for game management. I do not believe their absence led to our loss in the match." 2026-07-30 16:24:00
  • Fear of Forced Liquidation Becomes Reality as Stock Market Plummets
    Fear of Forced Liquidation Becomes Reality as Stock Market Plummets The KOSPI index has experienced three consecutive days of declines, dropping 1,162.19 points, as market attention shifts from the index's fall to the scale of forced liquidations and margin calls. Concerns are growing that the drop in collateral value could lead to increased volatility in the stock market.According to the Korea Financial Investment Association, the scale of forced liquidations on July 29 reached 61.1 billion won, a staggering 340% increase from the previous day's 13.9 billion won. The proportion of forced liquidations to the total margin debt also rose from 1.3% to 5.0% during the same period. The margin debt was recorded at 12.237 trillion won on July 28 and 12 trillion won on July 29.Margin debt occurs when investors purchase more stocks on margin than they have in cash and fail to pay the outstanding amount by the settlement date, which is two trading days later (D+2). If investors cannot repay their margin debt on time, brokerage firms can sell their holdings at market prices without the investors' consent to recover the debt, a process known as forced liquidation.The domestic stock market has shown a record decline for three consecutive days. The KOSPI fell by 10.84% and 5.98% on July 28 and 29, respectively. On July 28, it dropped to 5,992.91 during trading, marking the first time it fell below the 6,000 mark since April 14. The following day, it fell to 5,262.77. On July 30, the index initially rebounded by over 5% but ultimately closed down 1.23%, failing to recover the 6,000 level.The KOSDAQ market is faring even worse. The KOSDAQ index fell by 7.72% on July 28, dipping below 700 for the first time since April of last year. It continued to decline by 6.12% on July 29 and an additional 2.70% on July 30, closing at 644.78. This level is comparable to the lows seen during the state of emergency in December 2024. If the downward trend continues, further forced liquidations could exacerbate market declines and increase investor losses in a vicious cycle.Market observers are focusing on the likelihood that the burden of forced liquidations will persist for the time being. The balance of margin loans, which approached 38 trillion won in mid-June, has decreased to the 32 trillion won range since July 22, but remains at a high level.A securities industry official stated, "In a sharp decline, investors with high leverage can become subject to margin calls or forced liquidations due to short-term price fluctuations. In a volatile market, it is crucial to refrain from excessive leveraged investments and to regularly check collateral maintenance ratios to manage risks effectively." 2026-07-30 16:24:00
  • Seoul says Chinas stance on denuclearization unchanged
    Seoul says China's stance on denuclearization unchanged SEOUL, July 30 (AJP) - South Korea's foreign ministry said Thursday that China's position on the denuclearization of the Korean Peninsula has not changed, setting the tone for a planned visit to Seoul by Chinese Foreign Minister Wang Yi, the first by a top Chinese diplomat since President Lee Jae Myung took office. Wang is expected to travel to Seoul on August 19 and 20 for talks with Foreign Minister Cho Hyun, according to diplomatic sources cited in Korean media reports, with a courtesy call on Lee also under arrangement. The trip carries an uncomfortable question. Wang visited Pyongyang in April, and Chinese President Xi Jinping followed in June, and on both occasions Beijing avoided any public mention of denuclearization, deepening concern in Seoul that China now values rebuilding ties with North Korea over resolving its nuclear program. Asked at a regular briefing whether the government sees a need for Beijing to publicly reaffirm the principle during the visit, and whether a joint document reflecting it is under discussion, foreign ministry spokesperson Park Il pointed to commitments already on the record. "Peace and stability on the Korean Peninsula are a common interest of the two countries," Park said, an understanding he said was confirmed through the leaders' reciprocal state visits, most recently Lee's state visit to Beijing in January. China has expressed its intent to play a constructive role toward that end, he added, and has said it would maintain the continuity and stability of its policy toward the peninsula. "The denuclearization of the Korean Peninsula is the consistent goal of the international community, confirmed through multiple Security Council resolutions, and our government will uphold that goal without wavering," Park said. "China, too, has seen no change in its position on the Korean Peninsula issue, and the US-China summit in May also confirmed that North Korea's denuclearization is a common goal." He did not address whether a joint statement or outcome document is being coordinated, saying only that the government would keep strengthening communication, including through the visit now in consultations, to draw out a constructive role from China. The summit reference has a paper trail. After US President Donald Trump met Xi in Beijing on May 14 and 15, the White House released a fact sheet stating the two presidents "confirmed their shared goal to denuclearize North Korea." Beijing never echoed the language. Asked days later to confirm the American account, Chinese foreign ministry spokesperson Guo Jiakun said only that China's position and policy on the Korean Peninsula maintain continuity. Seoul has leaned on both statements since. The ministry delivered essentially the same answer in June, days after Xi returned from Pyongyang, making Thursday's response the latest recitation of a fixed line rather than a reaction to the visit reports. That is the ambiguity Wang would carry into Seoul. The South Korean government is expected to press for a more active Chinese role on the North Korean nuclear issue, while Beijing is likely to use the visit to present its position on Taiwan and its trade friction with Washington, and to restore balance to a peninsula diplomacy that has tilted heavily toward Pyongyang this year. Whether Wang states the word denuclearization in public while in Seoul will be watched as the clearest signal of where China actually stands. The last time the question was put to the test, the answer was silence. Xi spent two days in Pyongyang in June, his first visit to North Korea since 2019, and left without once mentioning denuclearization. 2026-07-30 16:22:14
  • Mokpo City and NH Nonghyup Promote Hometown Love Donation Program
    Mokpo City and NH Nonghyup Promote Hometown Love Donation Program Mokpo City, in collaboration with NH Nonghyup Mokpo Sinan Branch, conducted a promotional campaign on July 30 aimed at encouraging participation in the Hometown Love Donation Program among commuters.The campaign took place at the Gwangju District Prosecutor's Office in Mokpo, where officials from both Mokpo City and NH Nonghyup informed employees and visitors about the purpose and benefits of the program, while also promoting the consumption of local agricultural products.During the event, representatives provided information on how to participate in the Hometown Love Donation Program, including tax deduction benefits and the gift system for donors.Mokpo City also introduced projects utilizing the Hometown Love Fund and highlighted local seafood specialties, such as abalone and shrimp, which have recently been added as new gifts.NH Nonghyup Mokpo Sinan Branch supported the initiative by hosting a 'Sharing Our Rice and Fresh Onion' event, showcasing locally produced agricultural products and fostering a consumption-friendly atmosphere.The city plans to expand its on-site promotional efforts to public institutions, businesses, and related organizations to increase participation in the Hometown Love Donation Program and contribute to the revitalization of the local economy.Kim Hyung-soon, head of the Autonomous Administration Division, expressed hope that the campaign would raise awareness of the Hometown Love Donation Program and enhance the consumption of local agricultural and marine products. He added that the city would continue its promotional activities in collaboration with various organizations to invigorate the program and the local economy.The Hometown Love Donation Program allows individuals to donate up to 20 million won annually to local governments outside their registered residence, offering tax deductions and gifts of local specialties worth up to 30% of the donation.* This article has been translated by AI. 2026-07-30 16:20:10
  • KOSPI Declines, But Won-Dollar Exchange Rate Drops to 1430s
    KOSPI Declines, But Won-Dollar Exchange Rate Drops to 1430s Despite a sharp decline in the KOSPI, the won-dollar exchange rate continues to trend downward. Typically, a weak domestic stock market leads to a rise in the exchange rate; however, recent analysis indicates that a decrease in dollar demand following the end of foreign investor rebalancing, along with expectations of corporate dollar sales, has contributed to the strengthening of the won.On July 30, the weekly closing price of the won-dollar exchange rate in the Seoul foreign exchange market ended at 1,437.4 won, down 9.3 won from the previous trading day. This marks the lowest level since February 26 (1,425.8 won), just before the outbreak of conflict in the Middle East, effectively reversing most of the risk premium that had been reflected since the war began.Earlier, during the KOSPI's rise in May and June, foreign capital inflows and rebalancing led to a surge in dollar buying, pushing the exchange rate up to as high as 1,560 won. However, as the domestic stock market faced corrections in July, the demand for additional dollar purchases by foreign investors significantly decreased, leading to a rapid decline in the exchange rate.The recent divergence between the exchange rate and the stock market is attributed to improvements in dollar supply and demand. Typically, when stock prices fall, the exchange rate rises, but the end of the semi-annual rebalancing has reduced dollar demand, allowing the won-dollar exchange rate to drop to the 1,430s despite dollar strength and increased stock market volatility.Additionally, the decline in international oil prices due to easing tensions in the Middle East has supported the strength of the won. The listing of SK Hynix's American Depositary Receipts (ADRs) has also contributed to the demand for currency exchange, while the Bank of Korea's interest rate hike has narrowed the interest rate gap between South Korea and the U.S., further influencing the drop in the exchange rate.Market analysts believe that the recent decline in the exchange rate is more influenced by domestic factors than by a weakening U.S. dollar. The second quarter economic growth rate, which exceeded market expectations, expectations of a narrowed interest rate gap between South Korea and the U.S., demand for currency exchange related to SK Hynix ADRs, and corporate conversions to won have all contributed to improved dollar supply and demand.Kim Yu-mi, a researcher at Kiwoom Securities, stated, "Expectations for further increases in the won-dollar exchange rate among market participants have weakened compared to before," adding, "In the short term, a key variable will be whether this sentiment can be sustained." She further noted that whether the approximately $85.6 billion in dollar deposits held by companies will lead to conversions to won depends on perceptions of the exchange rate direction and domestic investment demand.However, it remains uncertain how long the downward trend in the exchange rate will continue. Geopolitical risks in the Middle East have not been fully resolved, and uncertainty surrounding the Federal Reserve's monetary policy path has increased following the recent Federal Open Market Committee (FOMC) meeting.Park Sang-hyun, a researcher at iM Securities, commented, "Given the recent sharp decline in the won-dollar exchange rate, the potential for further decreases may be limited, but there is a possibility that the trend of a weaker dollar will continue post-FOMC," adding, "The lower limit for the exchange rate could be around 1,400 won." He also noted that as the demand for currency exchange related to SK Hynix ADRs is mostly absorbed, the divergence between the exchange rate and stock prices may gradually diminish.* This article has been translated by AI. 2026-07-30 16:20:00