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  • U.S.-Iran Tensions Boost Semiconductor Stocks; KOSPI Set to Rise
    U.S.-Iran Tensions Boost Semiconductor Stocks; KOSPI Set to Rise The domestic stock market is expected to attempt a rebound, led by semiconductor stocks, despite geopolitical uncertainties between the U.S. and Iran. Following a night of low-price buying in U.S. semiconductor stocks and a slight easing of the won-dollar exchange rate burden, there are rising expectations for improved foreign investor sentiment.On July 20, the Dow Jones Industrial Average closed down 307.16 points (0.59%) at 51,839.26. The S&P 500 index, which focuses on large-cap stocks, fell 14.41 points (0.19%) to 7,443.28, while the tech-heavy Nasdaq Composite dropped 12.17 points (0.05%) to finish at 25,508.07.The New York stock market started strong but reversed course amid growing concerns over potential military conflict between the U.S. and Iran. President Donald Trump warned of further retaliation against Iran in connection with U.S. military casualties, increasing geopolitical uncertainty and pressuring investor sentiment.As tensions in the Middle East continue, international oil prices have also risen. September Brent crude futures settled at $89.22 per barrel, up 1.27% from the previous session. August West Texas Intermediate (WTI) crude futures increased by 0.90% to $83.23 per barrel.However, optimism for a diplomatic resolution remains, and low-price buying has emerged in recently adjusted semiconductor and artificial intelligence (AI) stocks, limiting the extent of the index decline. Micron Technology rose by 1.94%, while AMD and Asterra Labs increased by 1.58% and 1.80%, respectively.In the domestic market, the movement of large-cap semiconductor stocks is expected to influence the index's rebound. According to NextTrade, as of 8:06 a.m. on July 21, Samsung Electronics was trading at 246,000 won, down 2,000 won (0.82%) from the previous session. At the same time, SK Hynix recorded a drop of 16,000 won (0.91%) to 1,780,000 won.Market analysts predict continued high volatility in the near term. The KOSPI has triggered sidecars nine times in the past 13 trading days, with six sell-offs and three buy-ins. The KOSDAQ has also seen seven sidecars activated during the same period, and circuit breakers have been triggered twice this month.However, analysts note that the recent sharp decline in stock prices has reduced valuation burdens, and the outlook for earnings remains solid, creating conditions for a rebound. The KOSPI's 12-month forward price-to-earnings ratio (PER) has entered a historically undervalued range below six times. Since the beginning of the month, the KOSPI's 12-month forward operating profit forecast has been revised up by 6.8%, while the KOSPI has fallen by 23.1%, widening the gap between earnings and stock prices.Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite the geopolitical uncertainty between the U.S. and Iran, the rebound in U.S. semiconductor stocks and the easing of the won-dollar exchange rate burden could improve foreign investor sentiment. The domestic market is expected to attempt a rebound as buying pressure emerges from the perception of excessive declines in key sectors, including semiconductors."The researcher emphasized the need to prioritize a strategy of gradually increasing positions in semiconductor stocks, which have seen excessive declines, and noted that the current conditions favor a rebound rather than further declines in the index, based on valuation, earnings, and supply-demand factors.* This article has been translated by AI. 2026-07-21 08:20:00
  • LS Securities Raises Hyundai Department Store Target Price Amid Strong Performance
    LS Securities Raises Hyundai Department Store Target Price Amid Strong Performance LS Securities announced on July 21 that it has raised its target price for Hyundai Department Store from 110,000 won to 200,000 won, citing ongoing improvements in the department store and duty-free shop performance. The firm maintained its 'buy' rating.Orina Oh, a researcher at LS Securities, stated, "For the second quarter, consolidated sales are expected to reach 1.034 trillion won, with operating profit at 83.2 billion won, aligning with market expectations." She noted that sales at existing department stores increased by 15% in April, 20% in May, and 14% in June, indicating strong growth.Oh added, "Considering that June had two fewer weekend operating days compared to the previous year, the actual sales trend was even more robust. Foreign sales also surged, increasing by 40% in April, 66% in May, and 92% in June, now accounting for about 8% of total sales."She further explained, "Foreign consumer spending is expanding not only at The Hyundai Seoul and the Trade Center but also at the Pangyo, main, Songdo, and Gimpo locations. The luxury watch and jewelry sectors continue to see high growth, and home appliances are performing well due to promotional effects."Additionally, she noted, "The duty-free shop at Incheon Airport's DF2 (cosmetics, perfumes, liquor, and tobacco) area is quickly stabilizing, leading to significant profit improvements. DF2 has reportedly reached its break-even point since May, and as the top operator at Incheon Airport, its buying power is enhancing the profit margins and contribution rates for cosmetics purchases at downtown stores."Oh also mentioned, "Zinus is undergoing restructuring, aiming to eliminate inefficient assets by the end of 2027 and secure annual cost savings of about 50 billion won starting in 2028. While the delay in Zinus's recovery is disappointing, the positive performance of its core business offsets this setback."* This article has been translated by AI. 2026-07-21 08:20:00
  • Trump Imposes 50% Tariff on Select Canadian Products
    Trump Imposes 50% Tariff on Select Canadian Products President Donald Trump has announced a 50% additional tariff on certain Canadian products in response to discriminatory measures against U.S. automobiles, alcohol, and dairy products.On July 20, the White House reported that Trump signed three proclamations imposing additional tariffs on Canadian goods based on Section 338 of the Tariff Act of 1930. These measures are a direct response to Canada’s treatment of U.S. products.The targeted items range from wine to hockey sticks and cement. The 50% additional tariff will also apply to products that meet the origin requirements under the United States-Mexico-Canada Agreement (USMCA). However, products already subject to tariffs under the Energy and Potash Fertilizer Act and certain items like fish and critical minerals are excluded. The new tariffs will take effect at 12:01 a.m. Eastern Time on July 19, 2026, 30 days after the proclamations were signed.Trump cited Section 338 of the Tariff Act, which allows for additional tariffs of up to 50% when foreign countries discriminate against U.S. commerce or treat it less favorably than that of other nations. Bloomberg reported that this is the first time the U.S. has utilized this provision to impose tariffs.The U.S. government claims that Canada has applied tariffs and tariff-rate quotas (TRQs) exclusively on U.S. automobiles, disadvantaging products from other countries. According to the White House, U.S. imports of Canadian automobiles fell by $5.6 billion (approximately 8 trillion won) from April 2025 to March 2026 compared to the previous year.The administration also criticized Canada for restricting the sale of U.S. alcohol, which has been largely halted in most regions since March 2025, resulting in an 81% drop in imports from that time until February 2026.In the dairy sector, the U.S. pointed out that Canada applies TRQ standards favoring European Union cheese over U.S. cheese, limiting market access for American producers.The White House explained that the tariffs aim to offset the burdens placed on U.S. businesses and workers due to Canada’s discriminatory practices. By imposing these tariffs, the administration seeks to enhance competitive opportunities for U.S. manufacturers in the domestic market while pressuring Canada to lift restrictions on U.S. automobiles, alcohol, and cheese.This move is expected to escalate trade tensions between the U.S. and Canada. Traditionally considered a close ally, Canada has faced ongoing friction with the Trump administration over tariffs and revisions to the USMCA.Recently, Trump threatened to impose tariffs on Canadian products in response to smoke from Canadian wildfires affecting the eastern United States. According to Axios, a senior U.S. administration official stated that the new tariffs are not part of the previously threatened 'wildfire tariffs,' but that responses related to the wildfires are still under consideration.* This article has been translated by AI. 2026-07-21 08:16:00
  • Hana Financial Raises Target Price for SK Biopharm Amid Xcopri Growth
    Hana Financial Raises Target Price for SK Biopharm Amid Xcopri Growth Hana Financial announced on July 20 that it has raised its target price for SK Biopharm from 100,000 won to 110,000 won, citing an increase in prescriptions for the epilepsy treatment Xcopri. The investment recommendation remains a 'buy.'Kim Seon-a, a researcher at Hana Financial, stated, "Despite the launch of a generic version of the competing product Briviact in February and March of this year, Xcopri's prescriptions in the U.S. increased by 8.5% in the second quarter compared to the previous quarter. This is a significant increase considering the 2.8% growth in the previous quarter."She added, "The anticipated impact of the Briviact generic has not materialized, and if undisclosed royalties or other one-time revenues exceed expectations, we can anticipate even higher sales due to favorable exchange rates." Hana Financial forecasts SK Biopharm's second-quarter revenue to reach 238.5 billion won, a 35.3% increase year-on-year, while operating profit is expected to rise by 43.0% to 88.5 billion won. These figures are 2.0% and 4.7% above market expectations, respectively.Looking ahead, the growth of Xcopri is expected to continue in the second half of the year. Kim noted, "Based on the second-quarter prescription data, our revenue estimate for Xcopri this year is $584 million, which is close to the upper end of the company's guidance. We also anticipate milestone payments and royalties from the approval in Japan." Increased investment in research and development is also seen as a positive factor. Kim explained, "Starting this year, SK Biopharm is actively pursuing the development of more than five new drugs and expanding its R&D investments. The company is strengthening its growth drivers through the development of next-generation modalities such as radiopharmaceuticals (RPT) and targeted protein degraders (TPD), as well as collaboration with AI drug development firm Insilico Medicine." Furthermore, she added, "If the acquisition of follow-up new drugs and the Hong Kong listing of the joint venture Ignis Therapeutics become visible, a reevaluation of the stock price is also possible."* This article has been translated by AI. 2026-07-21 08:16:00
  • Daishin Securities: Samsung Biologics Acquisition of Polypeptide Group is Positive, Target Price Set at 2 Million Won
    Daishin Securities: Samsung Biologics' Acquisition of Polypeptide Group is Positive, Target Price Set at 2 Million Won Daishin Securities stated that the acquisition of Swiss peptide contract development and manufacturing organization (CDMO) Polypeptide Group by Samsung Biologics is a positive move for its long-term growth strategy. The firm maintained its target price at 2 million won and its investment rating at 'buy.'Hong Ga-hye, a researcher at Daishin Securities, commented, "This acquisition is a positive event that aligns with the long-term growth strategy by expanding from a focus on antibody-based CDMO to peptides and securing production bases in the U.S., Europe, and India."Samsung Biologics announced on July 20 that it would acquire Polypeptide Group for approximately 2.7 trillion won. Daishin Securities analyzed that the acquisition allows immediate entry into the expanding peptide market driven by the growth of GLP-1-based obesity treatments, thereby shortening the market entry timeline compared to organic expansion.Polypeptide Group is a peptide-specialized CDMO with nearly 70 years of experience, operating six production sites across five countries, including the U.S., Europe, and India. The company has produced over 1,000 peptide drugs and holds about one-third of the global Phase 3 peptide pipeline. Last year, it reported revenues of 389 million euros, with the share of revenue from metabolic diseases increasing from 22% in 2021 to 57% last year.Hong noted, "By entering the high-growth GLP-1 market immediately and inheriting existing production facilities and customer bases, revenue contributions can begin right after the acquisition. We also expect long-term profitability improvements through cross-ordering leveraging the global customer base and operational efficiencies."However, he cautioned that the integration process following the transaction will need to be monitored. He added, "Considering the large-scale capital expenditures (CAPEX) for the sixth plant and the Songdo third campus investment, there is a possibility of additional borrowing. Future confirmation of the transaction's closure and funding methods will be necessary."* This article has been translated by AI. 2026-07-21 08:04:00
  • Audit Official Yoo Byung-ho Arrested Over Presidential Residence Relocation Scandal
    Audit Official Yoo Byung-ho Arrested Over Presidential Residence Relocation Scandal Yoo Byung-ho, an audit official implicated in a flawed audit related to the relocation of the presidential residence, has been arrested.According to legal sources on July 21, Judge Lee Jong-rok of the Seoul Central District Court issued the arrest warrant for Yoo after a hearing the previous day, citing concerns over potential evidence destruction.The second comprehensive special prosecutor team, led by Kwon Chang-young, filed for the arrest warrant on July 14, accusing Yoo of abuse of power in obstructing the exercise of rights.Yoo is alleged to have improperly used his authority while serving as the Secretary General of the Board of Audit and Inspection during the administration of President Yoon Suk-yeol to downplay and conceal the results of the audit concerning the relocation of the presidential residence.After his election, President Yoon moved the presidential office to the Ministry of National Defense in Yongsan and the residence to the former minister of foreign affairs' residence. Various allegations arose regarding the selection process of the construction companies and the costs involved, prompting civic groups to request a public audit, which initiated the investigation.In September 2024, the Board of Audit and Inspection released a report on illegalities related to the relocation of the presidential office and residence, detailing that the presidential office requested a qualified contractor for expansion work from 21Gram, which in turn sought participation from WonDam Construction, a company with a general construction license.However, the special prosecutor suspects that the appearance of legality was created using WonDam Construction while 21Gram, which lacked a construction license, actually handled all the work. The special prosecutor believes that the Board of Audit and Inspection became aware of this fact during the audit process but intentionally concealed it, misrepresenting that 21Gram was only responsible for interior work.In contrast, Yoo Byung-ho has denied the allegations, stating, "The audit regarding the relocation of the residence was conducted with all staff committed to upholding the law and principles with utmost diligence."* This article has been translated by AI. 2026-07-21 07:44:00
  • Financial Supervisory Services Increased Scrutiny Leaves Listed Companies in a Bind
    Financial Supervisory Service's Increased Scrutiny Leaves Listed Companies in a Bind ◆아주경제 주요뉴스▷쏟아지는 금감원 정정 요구…높아진 유증 문턱에 상장사들 '곤혹'-This year, 265 companies have decided to increase their capital, a 44% increase compared to the same period last year. However, the amount raised from January to May fell by 27.7% to 1.814 trillion won. This decline is attributed to the Financial Supervisory Service's (FSS) intensified review of securities registration statements to protect the rights of general shareholders.-Hanul Semiconductor has reduced its capital increase from 22.8 billion won to 19 billion won in its fourth amended registration statement. Hanwha Solutions also cut its planned increase from 2.4 trillion won to 1.7 trillion won, while EcoPro BM and ToolGen have also received correction requests.-As the requirements for delisting have tightened, the demand for corporate funding is increasing. However, the thresholds for capital increases, convertible bonds, and bonds with warrants are becoming more stringent. Industry experts point out that, despite the intention to protect shareholders, the burden of fundraising for listed companies may increase.◆주요 리포트▷경제의 관성과 기업의 근성 -U.S. hyperscaler capital expenditures (Capex) are expected to expand from $760 billion this year to $1 trillion next year. In contrast, China's Capex is projected to increase from $100 billion to $120 billion, indicating that the U.S. is likely to lead in AI investment and productivity improvements.-The current AI investment cycle is in its fourth year, showing a significant increase in hardware investment compared to the internet investment boom of the 1990s. However, unlike that period, U.S. corporate profits currently exceed capital investments, suggesting a lower risk of overinvestment.-In South Korea, the surge in corporate profits and bonuses due to the semiconductor boom is expected to lead to an increase in corporate and personal income taxes, enhancing the government's spending capacity next year. The government's contribution to growth could rise by more than 0.4 percentage points, with expectations of a combination of increased corporate investment, government spending, and neutral or contractionary monetary policy.◆장 마감 후(20일) 주요공시△Daejeon Electronics decides to invest 497 billion won in semiconductor production facilities.△Samsung C&T acquires 33,016,411 shares (100% stake) in Swiss peptide CDMO company Polypeptide Group from its subsidiary Samsung Biologics for 2.7062 trillion won through a public tender offer.△Joyon Tech raises 1 billion won by issuing 1 million common shares at 1,000 won each through a third-party allocation capital increase.△Daegu Department Store disposes of its treasury shares, holding 1,362,542 shares (12.6%).◆펀드 동향(16일 기준, ETF 제외) ▷Domestic equity funds: -34 billion won▷Overseas equity funds: -12.1 billion won◆오늘(21일) 주요일정▷Eurozone: ZEW Economic Sentiment Index (July)* This article has been translated by AI. 2026-07-21 07:44:00
  • U.S. Continues Airstrikes Against Iran for 10th Consecutive Day; Trump Warns of Severe Retaliation
    U.S. Continues Airstrikes Against Iran for 10th Consecutive Day; Trump Warns of Severe Retaliation The U.S. military has launched airstrikes against Iran for the tenth consecutive day. Following recent attacks by Iran that resulted in U.S. military casualties, President Donald Trump has promised strong retaliation.On July 20, the U.S. Central Command announced that new airstrikes targeting Iran began at 4 p.m. Eastern Time.The strikes aim to weaken Iran's military capabilities used to attack commercial vessels in the Strait of Hormuz.This marks the tenth day of U.S. airstrikes against Iran, focusing on Iranian military facilities and missile and drone-related sites near the Strait of Hormuz.On the same day, President Trump stated on social media platform Truth Social, "For every U.S. soldier Iran kills, they will pay a price many times greater," adding that he has communicated this directive to military leadership.On July 17, two U.S. service members stationed in Jordan were killed and one went missing while defending against Iranian ballistic missile and drone attacks. An additional U.S. service member was killed on July 18 while handling unexploded ordnance from an Iranian drone shot down in Iraq.* This article has been translated by AI. 2026-07-21 07:44:00
  • U.S. Stocks Decline Despite Semiconductor Rebound Amid Middle East Tensions
    U.S. Stocks Decline Despite Semiconductor Rebound Amid Middle East Tensions The three major U.S. stock indices fell on July 20, despite a rebound in semiconductor stocks. Rising military tensions in the Middle East, increasing international oil prices, and climbing U.S. Treasury yields weighed on investor sentiment. Caution also grew ahead of earnings reports from major technology companies.On the New York Stock Exchange, the Dow Jones Industrial Average closed down 307.16 points (0.59%) at 51,839.26. The S&P 500 dropped 14.41 points (0.19%) to finish at 7,443.28, while the tech-heavy Nasdaq Composite fell 12.17 points (0.05%) to close at 25,508.07.Early in the session, semiconductor stocks, which had recently experienced sharp declines, saw a surge in bargain buying. The Philadelphia Semiconductor Index briefly rose nearly 4% but ultimately ended up only 0.6%. This index has fallen more than 20% from its peak at the end of June, entering bear market territory.Uncertainty surrounding the situation in the Middle East limited investor confidence. The Iran-aligned Houthi movement in Yemen declared a maritime blockade against Saudi Arabia, raising concerns about potential disruptions to oil supply. However, reports indicated that mediators had proposed a 10-day ceasefire to Iran to ease tensions with the U.S., leaving room for diplomatic solutions.International oil prices increased, with September Brent crude rising by $1.12 to $89.22 per barrel, and West Texas Intermediate (WTI) crude gaining 74 cents to close at $83.23. The rise in oil prices raised concerns about inflation, pushing the yield on 10-year U.S. Treasury bonds to around 4.6%.Investor caution was also evident ahead of the upcoming earnings reports from major tech firms, including Alphabet, Tesla, and Intel. Market participants are closely watching these reports to determine whether the recently surging tech stocks can sustain their high valuations. According to market research firm LSEG, the projected growth rate for S&P 500 companies' second-quarter net income is 26% year-over-year, up from a previous estimate of 23.7%.Among individual stocks, Apple fell 2%, exerting the most significant downward pressure on the S&P 500. In contrast, Alphabet rose 1.5% following news that Google is developing new server chips to enhance AI efficiency. Domino's Pizza shares increased by 2.1% after reporting quarterly revenue that exceeded market expectations.On the New York Stock Exchange, the number of declining stocks was 1.72 times greater than that of advancing stocks, while on the Nasdaq, declining stocks outnumbered advancing ones by 1.8 times. Although semiconductor stocks experienced some rebound, overall investor sentiment in the market remained cautious.* This article has been translated by AI. 2026-07-21 07:32:00
  • Incheon Coupang Logistics Center Fire Under Control After 61 Hours
    Incheon Coupang Logistics Center Fire Under Control After 61 Hours The fire at the Coupang logistics center in Incheon was brought under control after 61 hours, prompting firefighting authorities to begin mopping up operations.According to Yonhap News and the Incheon Fire Department, the major flames were extinguished around 8 p.m. on July 20, nearly 61 hours after the fire broke out on July 18 at the Coupang 32 logistics center in Seongnam-dong, Incheon. The authorities declared the initial firefighting efforts successful.As a result, the second stage of response and the national firefighting mobilization order remain in effect, with personnel and equipment deployed for the mopping up process.As of that day, 239 firefighting vehicles and 845 personnel had been mobilized for the operation, and a mandatory evacuation order for residents within a 116-meter radius of the fire site was lifted as of 11 p.m. the previous day.While residential areas were excluded from the evacuation order, it was reported that 202 residents voluntarily sought refuge due to concerns over smoke and dust.Once the mopping up is complete, authorities plan to investigate the cause of the fire and assess the extent of the damage.The fire originated on the sixth floor of the Coupang 32 logistics center and was initially contained around 8 p.m. on July 20, three days after it started.Firefighting authorities faced challenges due to the large amount of flammable materials stored inside and the complex structure of the building.During the firefighting efforts, 121 employees of the logistics center evacuated on their own, while two firefighters received hospital treatment for smoke inhalation and exhaustion.* This article has been translated by AI. 2026-07-21 07:32:00