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Mirae Asset Securities' Park Hee-chan: Time to Pause Aggressive Investments The stock market in September is showing mixed trends. The momentum that pushed indices toward 10,000 has long dissipated, with factors such as war, interest rates, and exchange rates contributing to increased volatility. In this chaotic environment, experts are offering various investment strategies.Park Hee-chan, head of the product support division at Mirae Asset Securities, provided a clear diagnosis: Now is the time to pause aggressive investments. He noted that while the domestic stock market has risen rapidly, driven by artificial intelligence (AI) and semiconductors, high interest rates and corporate investment burdens are likely to sustain volatility for the foreseeable future.In a recent interview, Park, who has over 20 years of experience in macroeconomics and asset allocation at Mirae Asset Securities, emphasized the need for a balanced investment strategy. Rather than focusing on specific themes, it is essential to invest in indices centered around the U.S. and appropriately divide investments between stocks and bonds, he said. He clarified, This does not mean avoiding stocks altogether; within stocks, preference should be given to indices over individual themes, mixing various strategies to reduce volatility.Korean Stock Markets High Dependence on Semiconductors and AIPark highlighted the high dependence on semiconductors in the domestic stock market. He pointed out that while the U.S. S&P 500 and Nasdaq are also influenced by the performance of AI and semiconductors, their volatility is significantly lower compared to the Korean market. The U.S. has a diverse industrial and corporate structure, whereas in Korea, large-cap semiconductor stocks like Samsung Electronics and SK Hynix have an overwhelmingly large impact on the index, he explained.He added, Even if sectors like cosmetics or biotech show positive trends, they cannot offset the volatility of Samsung Electronics and SK Hynix. Ultimately, the movements of large-cap semiconductor stocks are crucial for the Korean stock market.Demand for AI is not expected to decline immediately, with memory demand likely to continue beyond 2027. However, Park emphasized that what determines stock prices is not just the absolute level of demand but the growth rate.Concerns surrounding the AI industry are also reflected in companies funding methods. He noted that while big tech companies managed large-scale capital investments using their cash flows in 2023-2024, interest in funding has increased since the second half of last year, particularly following Oracles example. As big tech companies begin to raise funds for AI investments through bond issuance and borrowing, the market is starting to evaluate how quickly these investments can translate into profits, he explained.Park warned that by 2026, Googles free cash flow could turn negative, and by 2027, more companies may follow suit. In a high-interest environment with increasing borrowing, the profitability of AI investments will become critical. He anticipates that discussions about whether AI has peaked will intensify after next year.Sustainability of Earnings More Important Than ValuationPark believes that the current stock market valuation does not appear overly burdensome. Based on projected earnings for 2026-2027, the price-to-earnings ratio (PER) is not excessively high.The concern lies beyond that period. He stated, While the current valuation looks fine, the market is curious whether earnings can remain at this level in 2028 and 2029. He cautioned that it is not enough to feel secure just because valuations are low in the presence of actual earnings. Ultimately, the sustainability of future profits must be assessed.His preference for U.S. stocks in asset allocation stems from this reasoning. It is not merely about return expectations but also about the higher level of trust in the market. Park remarked, There is a belief that even if something goes wrong in the U.S. market, it will eventually recover. Therefore, it is advisable to focus long-term asset allocation around the U.S.Foreign Investors Likely to Rebalance at KOSPI 7000-8000Regarding foreign investment, Park does not expect significant net buying in the short term. As the domestic stock market has risen rapidly, the proportion of Korean stocks in global portfolios has increased, leading foreign investors to sell for rebalancing.He noted, Currently, at the KOSPI 6000-7000 level, foreign investors are in a balanced state, neither buying aggressively nor selling significantly. However, if the index rises to 7000-8000, the situation could change. He explained that as the proportion of Korean stocks increases again, foreign investors may sell to rebalance their portfolios.Park added, Since the Korean stock market has already risen significantly, it will be difficult for foreign investors to increase their holdings unless other countries also rise, causing the relative weight of Korean stocks to decrease. This implies that for foreign investment flows to change direction, the global stock market must rise in tandem with the domestic market.High Interest Rates Favor Short-Term Bonds Over Long-TermInterest rates are also a crucial variable in future investment strategies. Park cited the expansion of fiscal deficits by developed countries and increased global investment as reasons for rising global interest rates.He explained that AI-related capital investments are absorbing global liquidity. When big tech and related companies issue bonds for AI investments, more funds become tied up in the market for extended periods, which can burden the bond market.Consequently, not all sectors benefit from rising interest rates. In a high-interest environment, growth stocks must also prove the profitability of large-scale investments. Park emphasized, I do not foresee a major crisis like a financial meltdown occurring immediately, but now is not the time for aggressive investments.Among sectors, he expressed a relative preference for consumer goods, which have strong defensive characteristics. Companies that do not require explosive growth may be more stable in a high-interest and volatile environment. In bonds, he favored short-term bonds over long-term ones, as rising interest rates could increase price volatility for long-term bonds.ELS, Gold, and Brazilian Bonds as Diversification ToolsIn a volatile market, equity-linked securities (ELS) can also serve as an investment alternative. As volatility increases, the conditions for ELS, such as coupons, may improve. He noted, Recently, some ELS linked to Samsung Electronics and SK Hynix have formed conditions with high coupons and significant levels of price decline tolerance. However, he cautioned that ELS can also incur principal losses if the underlying asset prices fall significantly, so it is essential to examine the structure carefully, and the investment proportion should not be too large.Gold and Brazilian bonds were also suggested as alternatives. Park stated, While the potential for U.S. interest rate hikes may pose a concern, global central banks, especially those in emerging markets, continue to reduce their dollar asset holdings and increase gold purchases. He mentioned that Brazilian bonds offer high interest rates of around 15% with no taxes, but they are also considered high-risk products.He advised, A good strategy might be to maintain a 60-40 split between stocks and bonds or adjust to a 50-50 ratio depending on market conditions. In a volatile environment like this, it is necessary to adopt an approach that grows assets steadily, even if it means lowering expected returns. September 9, 2026 1 -
KRX to halt overnight derivatives trading over Chuseok SEOUL, September 9 (AJP) - Overnight trading for derivatives will be suspended during Chuseok or Korean thanksgiving, the Korea Exchange (KRX) said on Wednesday. The suspension, which comes to reduce risks for investors, will be effective from 6 p.m. on Sept. 23 to 6 a.m. the following day. Overnight transactions are normally settled together with the ones from the following day's regular session. However, because the market will be closed for one of the country's biggest holidays, trades made on the night of Sept. 23 will not be settled until regular trading resumes on Sept. 28. KRX said the long holiday closure could leave investors exposed to sharp price swings, increasing the risk of margin calls, forced position closures and liquidity shortages. It could also make it harder for investors and brokerages to manage any risks until trading resumes. The suspension will cover all products available for overnight trading on the KRX including KOSPI 200 and Mini KOSPI 200 futures and options tied to the country's benchmark large-cap index, as well as KOSDAQ 150 futures and options linked to major growth stocks. They also includes weekly options on the KOSPI 200 and KOSDAQ 150, U.S. dollar futures and three-year and 10-year government bond futures. KRX said the measure is in line with practices at other major Asian exchanges including those in Hong Kong and Taiwan, which also suspend such trading ahead of extended holidays. AJP Takeaways - The Korea Exchange will suspend all overnight derivatives trading from 6 p.m. on Sept. 23, 2026, to 6 a.m. on Sept. 24, 2026, ahead of South Korea's Chuseok holiday. - Trades that would normally be settled with the following regular session will not be processed until Sept. 28, 2026, when daytime trading resumes after the holiday break. - The Korea Exchange said the suspension is intended to reduce exposure to sharp price swings, margin calls, forced position closures and liquidity shortages during the extended market closure. September 9, 2026 1 -
Korea Maritime Promotion Corporation Raises $300 Million in Taiwan for U.S. Logistics Infrastructure The Korea Maritime Promotion Corporation has issued $300 million in foreign currency bonds in the Taiwanese financial market. The funds will be used to support investments in U.S. maritime and logistics infrastructure and to secure vessels for national shipping companies transporting essential goods.On September 9, the corporation announced the completion of a $300 million Formosa bond issuance with a five-year maturity aimed at global investors.Formosa bonds are issued in foreign currency by overseas institutions in the Taiwanese financial market. This marks the fourth issuance of Formosa bonds by the corporation since its first issuance in 2023.The interest rate for this issuance is 3 basis points (0.03 percentage points) lower than last year. The corporation explained that regular bond issuances have expanded its investor base, resulting in reduced funding costs and achieving the lowest interest rate among Formosa bonds issued by public institutions.The raised funds will support the overseas expansion of domestic maritime companies and key transportation projects for national shipping companies. Plans include investments in maritime and logistics infrastructure projects such as floating liquefied natural gas (LNG) export terminals and logistics centers in New Jersey.Additionally, the funds will assist in securing vessels for national shipping companies that transport essential goods, including energy and petrochemical products. In light of increasing uncertainties in major maritime transport routes, including the Strait of Hormuz, the corporation aims to secure stable transport capabilities and strengthen the national maritime supply chain.CEO Ahn Byeong-gil stated, “Stable foreign currency procurement is a crucial foundation for the overseas expansion of our maritime companies and the national maritime supply chain. We will continue to diversify our funding market and investor base to support the international expansion of our maritime companies and the stability of the national maritime supply chain, fulfilling our role in policy finance to enhance the competitiveness of the maritime industry.”* This article has been translated by AI. September 9, 2026 1
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Corporate borrowing picks up amid slowing household loans SEOUL, September 09 (AJP) - Bank loans showed mixed trends last month, with corporate borrowing accelerating while household loan growth slowed despite an increase in mortgage-related lending. Household loans increased by 3.4 trillion won (US$2.5 billion) in August, easing from a 5.5 trillion won rise in July, according to data released by the Bank of Korea (BOK) on Wednesday. Corporate loans expanded by 9.7 trillion won, up from 7.7 trillion won a month earlier. The slowdown in household borrowing masked a different trend in housing-related lending. Mortgage loans increased by 4 trillion won, up from 3.5 trillion won in July, as housing transactions in the Seoul metropolitan area and increased housing supply supported demand. Loans for jeonse, South Korea's lump-sum deposit lease, continued to fall, declining by 700 billion won after an 800 billion won drop in July. Other household loans including unsecured credit and overdraft loans fell by 600 billion won after rising by 2.0 trillion won a month earlier. The BOK attributed the decline to weaker individual stock investment and tighter management of credit loans by banks. The figures showed that overall household loan growth was easing, even as mortgage demand remained high. Household loans through banks increased by 24.5 trillion won during the first eight months of this year, below the 27.3 trillion won increase recorded over the same period last year. Mortgage borrowing rose by 17.3 trillion won during the period, compared with 27.7 trillion won a year earlier. Other household loans increased by 7.2 trillion won after declining by 300 billion won during the first eight months of 2025. Corporate borrowing moved in the opposite direction. Bank loans to companies increased by 9.7 trillion won in August, exceeding both July's 7.7 trillion won increase and the 8.4 trillion won gain recorded a year earlier. Loans to large companies rose by 4.9 trillion won, up from 3.8 trillion won, as banks stepped up lending and companies sought funds partly to repay corporate bonds. Loans to small and midsized enterprises increased by 4.8 trillion won from 3.9 trillion won, supported in part by expanded financing programs at some banks. The shift extended a trend seen in July, with companies relying more heavily on bank credit while the corporate bond market remained in net repayment. Corporate bank loans increased by 66.9 trillion won during the first eight months of this year, compared with 39.7 trillion won during the same period in 2025. Corporate bonds, meanwhile, recorded 17.2 trillion won in net repayments over the period, reversing from net issuance of 3.9 trillion won a year earlier. Bonds remained in net repayment by 900 billion won in August after 1.9 trillion won in July, as higher interest rates raised issuance costs and the market entered a seasonal lull. Commercial paper and short-term notes recorded net issuance of 4.1 trillion won, little changed from 4 trillion won in July, supported by working-capital demand from some public enterprises. Higher market rates continued to add pressure to corporate funding conditions. The three-year government bond yield rose to 3.84 percent at the end of August from 3.76 percent at the end of July, while the 10-year yield climbed to 4.31 percent from 4.26 percent. The BOK attributed the increase to higher oil prices following renewed tensions in the Middle East, changing monetary policy expectations at home and abroad and higher long-term government bond yields in major economies. Short-term market rates also rose sharply following the BOK's August policy rate increase. The yield on three-month bank bonds rose to 3.21 percent from 2.99 percent, while the 91-day certificate of deposit rate increased to 3.12 percent from 2.95 percent. Financial flows also reversed some of July's sharp movements. Asset managers received 23.5 trillion won in August after recording a 42.8 trillion won decline in July, led by a 15.5 trillion won increase in equity funds. Bond funds, by contrast, declined by 300 billion won after increasing by 700 billion won in July as market interest rates rose. Bank deposits edged up by 100 billion won after falling by 30.0 trillion won in July. Time deposits increased by 20.3 trillion won as household funds returned and local governments temporarily deposited cash. The KOSPI ended August at 6,820, up from 6,595 at the end of July, while the KOSDAQ climbed to 834 from 720. The BOK said investor sentiment improved further in early September amid strength in U.S. technology shares, pushing the KOSPI close to 7,000. AJP Takeaways - South Korea's bank household loans increased by 3.4 trillion won in August, slowing from July even as mortgage lending accelerated to 4.0 trillion won. - South Korea's corporate bank loans increased by 9.7 trillion won, with companies continuing to rely on banks and corporate bonds remaining in net repayment. - South Korea's market rates rose further in August, and asset-manager inflows rebounded amid an equity-market recovery from July's decline. September 9, 2026 1 -
Household Loan Growth Slows in August, Mortgage Loans Rise by 4 Trillion Won Last month, the growth of household loans from banks slowed. However, mortgage loans saw an increase due to a rise in housing transactions in the metropolitan area.According to the Bank of Koreas financial market trends report released on September 9, the balance of household loans from deposit banks, including policy mortgage loans, stood at 1,198.3 trillion won at the end of August, an increase of 3.4 trillion won from the end of the previous month.The household loan balance surged by 7.6 trillion won in June, marking the largest increase in 22 months since August 2024 (+9.2 trillion won), but the growth rate has slowed for two consecutive months following increases of 5.5 trillion won in July.Lee Seung-yeop, head of the Bank of Koreas market management team, stated, While the overall increase in household loans has diminished, mortgage loans continue to show a solid upward trend. We need to monitor the impact of the governments real estate measures in August.By loan type, the balance of mortgage loans rose by 4 trillion won to 952.5 trillion won, a larger increase than the previous month (3.5 trillion won). This growth occurred amid a continued decline in demand for jeonse (long-term rental deposits), influenced by increased housing transactions and supply in the metropolitan area since May.The balance of other loans decreased by 6 trillion won to 244.9 trillion won, reversing the previous months increase of 2 trillion won due to a slowdown in individual stock investments and stricter management of credit loans by banks.As of the end of August, the balance of corporate loans from banks reached 1,430.8 trillion won, an increase of 9.7 trillion won from the end of July. This marks an expansion in growth compared to July (7.7 trillion won).The increase in corporate loans was driven by major banks strengthening their lending operations and the funding needs of companies for bond repayments, with large corporations borrowing an additional 4.9 trillion won. Loans to small and medium-sized enterprises increased by 4.8 trillion won, supported by financial assistance from some banks.After a decrease of 30 trillion won in July, bank deposits turned around to show an increase of 100 billion won in August.Demand deposits fell by 14 trillion won due to corporate withdrawals for tax payments, despite inflows from local government financial execution funds. Following a record drop of 80.8 trillion won in July, the decline has moderated.Time deposits increased by 20 trillion won due to inflows from household funds and temporary deposits from local governments.Asset management companies saw an increase of 23.5 trillion won in deposits, primarily in equity funds.Equity funds rebounded with an increase of 15.5 trillion won in August, following a decline of 56.2 trillion won in July due to rising stock prices. Conversely, bond funds decreased by 3 trillion won due to rising interest rates.Money market funds (MMFs) increased, primarily driven by corporate funds, but only rose by 5.6 trillion won due to seasonal effects from the previous month.* This article has been translated by AI. September 9, 2026 1
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Central Group Bond Victims File Criminal Complaint Against 20 Individuals, Including Hong Seok-hyun Individual investors who suffered significant financial losses after investing in corporate bonds issued by JTBC and Central Group have filed a collective criminal complaint against the groups owners and the financial companies involved in the issuance and sale of these bonds.On September 9, the joint legal team representing the victims held a press conference at the Seoul Bar Association in Seocho-dong, announcing that they had filed a complaint with the Seoul Southern District Prosecutors Office the previous day against a total of 20 individuals, including the owners of Central Group and affiliated companies, for violations of the Capital Markets Act.The complaint includes 319 individual investors who invested in the public corporate bonds of JTBC and Central Daily, as well as electronic short-term bonds issued based on these assets. The objectively verified amount of losses from transaction records is at least 32.5 billion won.Among the defendants are Hong Seok-hyun, chairman of Central Holdings; Hong Jeong-do, vice chairman of Central Group; and Hong Jeong-in, CEO of Contentree Central, along with three members of the owner family. The complaint also includes corporate entities such as Central Holdings, JTBC, and Central Daily, as well as current and former CEOs. Additionally, Shinhan Investment Corp., Hanyang Securities, Kiwoom Securities, and JNS Investment Advisory, which were responsible for securities issuance, distribution, sales, and asset management, are also accused of fraudulent trading.The legal team pointed out that Central Group inflated its financial statements structurally by engaging in fund recycling among its affiliates using hybrid capital securities and failing to account for losses on uncollectible bonds.Central Group allegedly expanded its apparent capital by having one affiliate acquire hybrid capital securities from another affiliate at risk of capital erosion on the books, subsequently raising funds from individual investors in the market. However, the funds raised did not remain with the issuing company but were diverted to other affiliates, and losses on uncollectible bonds were concealed by not setting up provisions for bad debts, according to the legal team.As a representative example, the legal team presented evidence that in 2024, Central Holdings and Dabo Central acquired 74 billion won worth of hybrid capital securities issued by JTBC. This allowed JTBC to artificially inflate its capital on the books and appear financially sound, but the funds were not used for JTBCs operations and were instead invested in or loaned to other affiliates, such as Studio Aye Central and Phoenix Sports. Consequently, JTBC was left with only interest and repayment burdens while the actual funds flowed out to other affiliates.Serious issues regarding accounting evaluations were also highlighted. As of the end of 2025, major affiliates of Central Group reflected approximately 61% of the 1.068 trillion won invested in affiliates as losses, totaling 615 billion won.In contrast, no provisions for bad debts were set for loans and bonds amounting to 740.5 billion won lent to the same affiliates. While the stock values of these affiliates were assessed to have declined, the bonds were misrepresented as fully recoverable.Based on these distorted financial statements, JTBC issued a total of 320 billion won in public corporate bonds across four tranches, of which 245 billion won in principal remains in a state of default.Lee Bok-hyun, a former chairman of the Financial Supervisory Service, also attended the press conference, emphasizing that this complaint is not merely a result of individual companies financial difficulties but is executed under a coordinated plan at the group level.He explained, Looking at the overall cash flow of the group, there is a series of transactions where funds from the owner family are injected into the holding company and then flow into support and recovery processes for affiliates. In the rapidly deteriorating funding environment since 2023, decisions to support funds across individual affiliate lines cannot occur without the involvement of the ultimate decision-makers, such as the owner family and the groups CFO.When asked about the jurisdiction and investigative authority regarding the case, he expressed regret that victims must form their own accounting analysis teams to uncover the facts, despite this being a large-scale capital market crime with multiple victims. He requested that if direct investigation by the Seoul Southern District Prosecutors Office is difficult due to the current judicial system, the case should be swiftly transferred to the Financial Supervisory Services special judicial police, which has expertise in capital market crime investigations, to exercise investigative authority.He particularly emphasized the necessity of the Financial Supervisory Services special judicial polices involvement for effective investigations within the year, as there is a risk of delays exceeding one year if the case is handled by the police or transferred to the Serious Crimes Investigation Unit.The legal team also stated that the financial companies involved bear culpability due to their negligent intent. They noted that the lead underwriters and distributors have been deeply communicating with the groups management while conducting bond issuance and investment banking activities for years, and they directly created and sold short-term liquidity products based on hybrid capital securities.He asserted, Financial investment businesses should act as gatekeepers to resolve information asymmetry in the market, yet they repeatedly drafted investment prospectuses indicating that repayment risks were manageable while earning substantial fees without disclosing the risks.The legal team and victim representatives clarified that the ultimate goal of the criminal prosecution against the defendants is not merely punitive but to achieve substantial recovery of losses through accurate fact-finding and to urge responsible behavior from the management. They strongly requested prompt compulsory investigations, including tracking the flow of funds between affiliates and securing internal documents through swift searches and seizures.Earlier in June, JTBC declared a default of approximately 20 billion won, which triggered a ripple effect throughout the group. Subsequently, all affiliates of Central Group, including Central Daily, Central Holdings, and Megabox Central, applied for court rehabilitation procedures, marking the beginning of a financial crisis for Central Group.Creditors have initiated legal actions against Central Group, its management, and the owner family, and the Seoul Rehabilitation Court has decided to commence legal rehabilitation procedures for five companies within Central Group. Notably, JTBC has been ordered to submit a detailed rehabilitation plan by January 29 of next year. September 9, 2026 1
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Chinese Dim Sum and Panda Bond Issuance Surpasses 1 Trillion Yuan The issuance of Dim Sum and Panda bonds, which are denominated in Chinese renminbi, has reached record levels this year. The widening gap between U.S. Treasury yields and Chinese government bond yields has led global financial institutions and governments to seek funding in relatively cheaper renminbi.According to the Financial Times on September 9, the total issuance of renminbi bonds in the Chinese Dim Sum and Panda bond markets has surpassed 1 trillion yuan (approximately 200 trillion won) this year. Specifically, the issuance of Dim Sum bonds has reached 786.3 billion yuan, while Panda bonds have totaled 231.6 billion yuan, already exceeding previous annual records.Dim Sum bonds refer to renminbi-denominated bonds issued outside of mainland China, while Panda bonds are renminbi-denominated bonds issued by foreign entities within mainland China.The increased international status and influence of the renminbi, coupled with the significant interest rate gap between the U.S. and China, has driven demand for cheaper renminbi funding. U.S. Treasury yields have risen to 4.78%, while the yield on Chinas 10-year government bonds remains around 1.68%, nearing a historic high in the interest rate differential.Investor participation in the renminbi bond market has also become more active. Notably, the Chinese government expanded the annual investment limit for mainland investors in the Hong Kong bond market from 500 billion yuan to 800 billion yuan in July, boosting demand from mainland investors and supporting the increase in issuance.Additionally, substantial domestic savings in China are flowing into the renminbi bond market. With Chinese government bond yields significantly lower and overall credit demand weakening, banks and insurance companies are seeking new investment opportunities. Notably, the yields on Panda bonds are relatively higher than those of Chinese government bonds. According to market research firm Wind, the average yield on Panda bonds this year is 1.85%, higher than the yield on Chinas 10-year government bonds (approximately 1.7%), with an average maturity of 3.17 years.Recently, governments from countries such as Pakistan, Kazakhstan, and Slovenia have issued Panda bonds in mainland China. However, the recent surge in issuance has primarily been led by Chinese and foreign financial institutions.At the end of last month, global investment bank UBS issued 5-year Panda bonds in China for the first time, raising 2 billion yuan at an issuance rate of 1.78%. Goldman Sachs also issued 61.5 billion yuan in Dim Sum bonds this year. Foreign banks typically convert the funds raised through renminbi bond issuance into major currencies like the dollar for global operations.In contrast, issuance by global corporations remains relatively limited. The relatively small size of individual issuances is seen as a barrier to participation by larger companies. The Financial Times noted that there is insufficient precedent for the market to absorb large issuances of around $1 billion.Moreover, the limited participation of large institutional investors in mainland China in Dim Sum and Panda bond investments poses a constraint. David Im, head of Greater China and North Asia capital markets at Standard Chartered, pointed out to the Financial Times that mainland institutional investors may require 3 to 4 months for due diligence before purchasing bonds issued by foreign companies.Nevertheless, Samuel Fisher, head of the Chinese bond market at Deutsche Bank, predicted that once it is confirmed that an issuer can successfully raise $1 billion, new issuers will quickly follow suit.Some analysts believe that the rapid growth of the Panda and Dim Sum bond markets indicates the potential for the renminbi to establish itself as a global funding currency, similar to the Japanese yen. However, the Financial Times cautioned that the role of the renminbi in global financial markets remains limited, noting that while the use of renminbi in offshore lending and trade finance is increasing, its share in global foreign exchange reserves remains low. September 9, 2026 1
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Hana Bank Launches Dedicated Personal Investment Bonds for Retirement Pensions Hana Bank announced on September 9 that it has launched a dedicated product allowing individuals to directly purchase government bonds through defined contribution (DC) and individual retirement pension (IRP) accounts.The dedicated personal investment bonds for retirement pensions are savings bonds issued by the government to support individuals in building long-term assets. By using a Hana Bank retirement pension account, customers can invest in bonds without needing a separate dedicated account.Investors can choose from 10-year and 20-year bonds, with purchases starting at 100,000 won. If held until maturity, the bonds will earn compound interest, with an additional interest rate added to the nominal rate.Investors can also benefit from tax advantages associated with retirement pension accounts. Taxes on interest earned from bond investments are deferred until withdrawal, potentially increasing the compound interest effect over time. After the age of 55, receiving the accumulated funds in the form of a pension will subject the income to lower pension income tax rates, reducing the tax burden.Bonds will be issued on the 20th of each month. This month’s subscription period runs from September 9 to September 15. Subscriptions can be made at Hana Bank branches this month, and starting next month, they will also be available through the official mobile application, Hana OneQ.A Hana Bank representative stated, We will continue to expand our retirement pension product lineup and asset management services to meet the diverse investment preferences and retirement preparation needs of our customers.* This article has been translated by AI. September 9, 2026 0
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Oil Prices Near $100 as Global Financial Markets Face Tightening Fears International oil prices are approaching the $100 per barrel mark, heightening tensions in global financial markets. Geopolitical instability in the Middle East has raised concerns about oil supply disruptions, while the possibility of further interest rate hikes in Japan and financial worries in Europe are causing fluctuations in major stock, bond, and foreign exchange markets. Analysts suggest that rising oil prices could complicate the interest rate paths of major economies, increasing market volatility.According to the International Financial Center, Brent crude oil was recorded at $97.92 per barrel on September 8, an increase of 0.95% from the previous trading day, leaving it just over $2 shy of the $100 mark.The rise in oil prices is largely attributed to instability in the Middle East. Reports indicate that Saudi Aramcos oil facilities were damaged in attacks by Houthi rebels, raising fears of supply disruptions. Market analysts suggest that the potential for prolonged maritime transport issues is beginning to be reflected in international oil prices.High oil prices pose a burden on global financial markets. If rising oil prices push consumer prices higher, it could impact interest rate decisions by central banks in the United States, Europe, and Japan.On September 8, the S&P 500 index in the U.S. fell by 0.58% to close at 7,673.5. The European Stoxx 600 index also dropped by 0.05% to 649.60, while Japans Nikkei 225 index plummeted by 1.70% to finish at 60,269. The yield on U.S. 10-year Treasury bonds rose by 1 basis point to close at 4.79%, and the dollar index fell by 0.34% to 98.84, marking its lowest level in two weeks.In Europe, concerns over fiscal instability continue to exert pressure on long-term interest rates. The yield on 30-year British government bonds reached 5.82%, the highest level since 1998. Recent worries about the fiscal health of the UK and other major European countries are putting pressure on the long-term bond market.In Japan, the possibility of additional interest rate hikes has resurfaced, raising concerns about tightening measures. The countrys second-quarter GDP growth rate was revised upward from 1.1% to 1.4%. Additionally, the nominal wage growth rate in July reached 4.7%, the highest in nearly 30 years. Stronger-than-expected economic and wage indicators are bolstering expectations for further tightening by the Bank of Japan. The value of the yen also rose by 0.25% against the dollar on the same day. However, some analysts believe that the yens strength is unlikely to lead to a large-scale unwinding of yen carry trades immediately.* This article has been translated by AI. September 9, 2026 0
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Samsung Electro-Mechanics Unveils Next-Gen Semiconductor Packaging Solutions Samsung Electro-Mechanics announced it will showcase its next-generation semiconductor packaging substrate technology at the KPCA Show 2026, taking place from September 9 to 11 at the Songdo Convensia in Incheon.The KPCA Show is a leading exhibition in South Korea where domestic and international semiconductor substrate, packaging, material, and equipment companies share the latest technologies and market trends in the industry.At the exhibition, Samsung Electro-Mechanics will present five products, including 2.5D and 2.1D packaging substrates, glass substrates, flip-chip ball grid arrays (FCBGA) for automotive applications, and ultra-thin chip scale package (UTCSP) substrates. The company aims to expand the application areas of high-value packaging substrates to include AI, servers, data centers, mobile devices, and autonomous driving.Semiconductor packaging substrates are essential components that connect high-density semiconductor chips to motherboards, facilitating the transmission of electrical signals and power. With the increasing computational performance of AI accelerators and the growing use of high-bandwidth memory (HBM), the role of packaging substrates has become more critical. The integration of multiple high-performance chips into a single package necessitates large-area, multi-layer designs, fine circuits, and high-density interconnection technologies.Samsung Electro-Mechanics will showcase technologies that reduce substrate warping due to large-area and multi-layer designs in its 2.5D packaging substrates, as well as high-speed signal transmission and high-density interconnection technologies. The company will also introduce a 2.1D packaging substrate that connects semiconductor chips without a silicon interposer, addressing the high-speed and high-density requirements of AI semiconductors through fine circuits and high-density interconnection technologies.The glass substrate technology, which is gaining attention as a next-generation packaging substrate, will also be exhibited. By using glass as the core material instead of traditional organic materials, glass substrates can reduce warping in large substrates and enhance dimensional stability. This technology also allows for fewer substrate layers while improving signal characteristics and power efficiency. Samsung Electro-Mechanics will present key technologies, including creating fine connection pathways in glass and filling them with metal, as well as precision surface processing.The company is also diversifying its application areas. The UTCSP for data centers and mobile devices features a coreless structure that reduces substrate thickness and employs fine bond finger technology. Additionally, UTC packaging substrates for laptop and tablet CPUs and co-packaged substrates for smartphones will be showcased.For the autonomous driving market, Samsung Electro-Mechanics will present automotive packaging substrates. These substrates require not only large-area, multi-layer, and fine circuit technologies but also high reliability to operate stably under high temperatures, high humidity, and repeated temperature changes. The company plans to expand its business into the automotive market based on high-functionality substrate technologies, including multi-chip structures.Joo Hyuk, Vice President of Samsung Electro-Mechanics and head of the Package Solution Division, stated, As the markets for AI accelerators, servers, and autonomous driving grow, the role and technical complexity of packaging substrates are rapidly increasing. We will enhance large-area, multi-layer, and ultra-fine circuit technologies and next-generation packaging technologies to respond to the high-end semiconductor packaging substrate market.* This article has been translated by AI. September 9, 2026 0
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Won weakens for 1st time in five sessions SEOUL, September 8 (AJP) - The South Korean won fell for the first time in five sessions on Tuesday as higher oil prices and strong demand for dollars from importers put pressure on the currency. Korean government bonds ended little changed after an early rise faded. The won closed at 1,345.6 per dollar at 3:30 p.m., weakening 5.1 won from 1,340.5 in the previous session. The currency opened at 1,344.4 and strengthened as far as 1,336.3 in morning trading before reversing course and reaching 1,349.0 during the session. The won weakened despite a softer global dollar and stronger yen, as rising oil prices raised concerns over South Korea's import bill and importers stepped up dollar demand around 1,340 won per dollar. West Texas Intermediate crude rose above US$94 a barrel during Asian trading amid renewed concerns over Middle East supply disruptions. The National Pension Service's halt to currency hedging also limited further won appreciation, while dollar selling by exporters and gains in the yen capped the rise in the dollar-won rate. Government bonds finished broadly steady after an early rally faded, with most benchmark yields moving by less than 1 basis point. The three-year government bond yield edged up 0.1 basis point to 3.901 percent, while the 10-year yield showed the clearest move, rising 1.6 basis points to 4.401 percent. The five-year yield gained 0.7 basis point to 4.127 percent, while the 20-year yield fell 0.7 basis point to 4.560 percent. The 30-year and 50-year yields rose 0.4 and 0.3 basis point to 4.635 percent and 4.543 percent, respectively. The spread between the three-year and 10-year yields widened to 50.0 basis points from 48.5 basis points a day earlier, reflecting a modest steepening of the curve rather than a broad selloff. Bonds had rallied in morning trading, with the three-year yield falling as low as 3.876 percent and the 10-year yield to 4.362 percent. Foreign investors bought three- and 10-year bond futures, while investors sought value around the 3.9 percent level in the three-year sector. The gains faded later in the session as higher oil prices kept inflation risks in focus and overseas bond yields moved higher during Asian trading, leaving the domestic market close to flat by the end of the day. U.S. markets had been closed Monday for the Labor Day holiday, leaving Seoul investors with limited overnight direction. Attention is now shifting to U.S. inflation data after stronger-than-expected employment figures revived expectations of further Federal Reserve tightening. Markets are also watching the Bank of Japan's policy meeting next week, with expectations of another rate increase contributing to the yen's recent strength. AJP Takeaways - South Korea's won weakened 5.1 won to 1,345.6 per dollar Tuesday as higher oil prices and importer dollar demand outweighed support from a softer dollar and stronger yen. - Government bonds surrendered an early rally, with the three-year yield ending nearly flat at 3.901 percent and the 10-year yield rising 1.6 basis points to 4.401 percent. - U.S. markets are turning to U.S. inflation data and upcoming Federal Reserve and Bank of Japan policy meetings for direction after stronger U.S. employment data revived tightening expectations. September 8, 2026 1 -
Moody's Evaluates South Korea's 2024 Budget for Fiscal Health and Growth Balance International credit rating agency Moodys has assessed South Koreas 2024 budget, noting a balance between fiscal health and securing future growth potential. The Ministry of Finance explained the budget and the achievements in issuing foreign currency stabilization bonds, as well as the governments policy direction to improve access to foreign exchange and capital markets.On September 8, Moon Ji-sung, the International Economic Management Director at the Ministry of Finance, met with Maria Lee, Moodys Global External Relations Head, to share insights on the upcoming budget and recent economic conditions. The meeting also included Moon and Park Chang-hwan, the Budget Coordination Director at the Ministry of Strategy and Finance.During the introduction of the budget, Moon and Park emphasized the focus on enhancing potential growth rates through three major mega-projects and investments in artificial intelligence (AI), while also addressing social stability to mitigate polarization.They highlighted that despite the largest fiscal expenditure in history, the management fiscal balance is at its best level in 20 years, underscoring the ability to achieve both economic growth and fiscal health.The direction for the Future Response Fund was also discussed. The government plans to use additional tax revenue for strategic investments rather than simple consumption, and to reinforce fiscal stability when necessary.Notably, they announced that 12.5 trillion won (approximately 8%) of the total resources would be used to reduce new bond issuance, aiming to alleviate future debt burdens.Moodys acknowledged that the 2024 budget and the establishment of the Future Response Fund seek to balance fiscal health with future growth potential. They also expressed a positive outlook on South Koreas economic growth prospects.The two sides exchanged views on this years foreign currency bond issuance achievements and the governments future response direction. This year, the South Korean government issued $3 billion in U.S. dollars and €1.7 billion in euros in foreign currency bonds. The euro bonds spread was lower than the previous record low in 2025, with 3-year bonds at 15 basis points and 7-year bonds at 24 basis points lower.Moodys congratulated South Korea on the successful issuance of foreign currency bonds this year and expressed interest in the outcomes and future government responses. Moon noted that despite unstable market conditions, they achieved the lowest spread for euro-denominated foreign currency bonds without additional premiums. He also mentioned significant participation from high-quality investors, including major central banks and international organizations.The government plans to diversify maturities and currencies while continuously seeking new investors. Additionally, they aim to enhance the role of foreign currency bonds as a benchmark interest rate for foreign currency procurement in South Korea.Discussions also covered measures to improve access to foreign exchange and capital markets. Moodys praised the South Korean governments recent efforts to enhance market accessibility and inquired about future plans to expand participation from global investors.Moon explained the progress in reforming the foreign exchange market, including improvements to the foreign financial institution (RFI) system. He also outlined the roadmap for internationalizing the won to allow for free holding, trading, and procurement overseas.* This article has been translated by AI. September 8, 2026 1
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Japanese yen and bonds rally as BOJ tightening bets build SEOUL, September 08 (AJP) - The Japanese yen and long-dated government bonds rallied together Tuesday as investors priced faster tightening by the Bank of Japan (BOJ) alongside lower longer-term inflation risks. The yen strengthened as far as 152.89 per dollar, its strongest level since Feb. 17, before returning to around 153.3. Japan's 10-year government bond yield fell 4 basis points to 2.890 percent in morning trading. Ataru Okumura, senior rate strategist at SMBC Nikko Securities Inc., said underlying inflation was already around 2 percent and the BOJ was increasingly expected to accelerate the pace of rate hikes. The simultaneous gains in the currency and bonds reflected different expectations at the short and long ends of Japan's rate market. The 20-year Japanese government bond (JGB) yield fell 5 basis points to 3.695 percent, while the 30-year yield dropped 5.5 basis points to 3.965 percent. The policy-sensitive two-year yield declined a smaller 1.5 basis points to 1.835 percent, flattening the yield curve. Expectations of another BOJ rate increase strengthened after economic data suggested Japan could withstand tighter monetary policy. Japan's economy expanded at an annualized 1.4 percent rate in the second quarter, revised up from 1.1 percent. Real wages rose 2.4 percent from a year earlier in July, their strongest increase since May 2021. Markets were pricing about a 97 percent probability that the BOJ would raise its policy rate by 25 basis points next week. Expectations of further tightening were also building. A stronger yen meanwhile reduced longer-term inflation pressure by lowering the local-currency cost of imported energy, raw materials and other goods. JGB futures rose in early Tokyo trading as investors focused on the stronger currency's potential to ease inflationary pressure even as expectations for BOJ tightening remained intact. Japan's current yield levels have also changed the incentives that helped sustain years of yen weakness. The 10-year yield briefly exceeded 3 percent earlier this month, reaching its highest level in about three decades before retreating toward 2.9 percent this week. Higher Japanese yields reduced the appeal of yen-funded carry trades, giving investors less incentive to borrow cheaply in Japan and shift funds into higher-yielding overseas assets. Cross-border yen borrowing reached 360 trillion yen in March, leaving a large pool of positions potentially exposed to a rapid appreciation of the currency. Previous BOJ rate increases and foreign-exchange intervention had failed to provide lasting support for the yen. The latest move instead combined tightening expectations with potential capital repatriation and an unwind of carry trades. Japan and the United States have also maintained a more explicit focus on the currency since their joint intervention in July. Japanese Finance Minister Satsuki Katayama said Tuesday that Tokyo and Washington remained aligned on maintaining stable foreign-exchange markets and continued to communicate closely on currency policy. Positioning accelerated Tuesday's move as traders closed bearish yen bets after USD/JPY broke key support levels, helping push the exchange rate briefly into the 152 range. The shift also reached South Korean markets, although domestic factors remained important. The won traded at 1,338.95 per dollar in late-morning Seoul trading after touching 1,336.3. Exporter dollar selling, foreign equity purchases and yen strength added downward pressure on USD/KRW. Korean government bonds strengthened across the curve at the morning session close. The three-year yield fell 2.4 basis points to 3.876 percent, while the 10-year yield declined 2.3 basis points to 4.362 percent. The 20-year yield fell 2.1 basis points to 4.546 percent, while the 30-year yield dropped 2.4 basis points to 4.607 percent. Won strength was also supported by semiconductor exports and exporter dollar selling, while Korean bonds continued to reflect domestic monetary-policy and government-bond supply expectations. Tuesday's moves reflected more than a simple rise in expectations for higher Japanese policy rates. Investors increasingly distinguished between tighter BOJ policy at the short end and lower longer-term inflation risk, allowing the yen and long-dated JGBs to strengthen together while adding support to neighboring Korean markets. AJP Takeaways - Japanese yen strengthened to 152.89 per dollar Tuesday, its strongest level since Feb. 17, as BOJ tightening expectations and short-position unwinding accelerated. - Japanese government bonds rallied at the long end as yen appreciation reduced imported-inflation pressure despite expectations for another BOJ rate increase. - South Korean markets moved in the same broad direction, with the won strengthening into the 1,330 range and Korean government bond yields falling through the 30-year maturity. September 8, 2026 1 -
Shinhan Bank Issues €600 Million Green Covered Bonds with Strong Demand Shinhan Bank announced the issuance of €600 million (approximately 944.4 billion won) in green covered bonds with a maturity of three and a half years on September 8.Covered bonds are securities backed by high-quality assets held by the issuing institution, giving investors priority claims on the collateral and dual recourse against the issuer.The bonds received top credit ratings of Aaa from Moodys and AAA from Fitch. The coupon rate is set at 3.4116% per annum.The final issuance rate was determined by adding 19 basis points to the mid-swap rate (MS), the benchmark interest rate for euro-denominated bonds. The MS is used to convert floating rates into fixed rates.Prior to the issuance, Shinhan Bank conducted a roadshow in major European cities, including London, Munich, Luxembourg, and Copenhagen. The bank presented its financial status, covered bond program, and ESG strategy to local investors to gauge demand.Initially, Shinhan Bank aimed to raise €500 million, but following the demand forecast after the roadshow, orders reached approximately €1.9 billion, nearly 3.8 times the target amount. Consequently, the bank increased the final issuance size to €600 million.A Shinhan Bank official stated, Amid ongoing market volatility and uncertainty, we confirmed strong interest in Shinhan Bank through direct communication with investors during the European roadshow. We will continue to issue ESG-linked bonds to expand our global investor base.* This article has been translated by AI. September 8, 2026 1
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Mandatory Deposit for Restoration Guarantee on Projects Using Over 10,000㎡ of Public Waters Projects utilizing over 10,000 square meters of public waters will now be required to deposit a performance bond for restoration. Failure to comply with restoration orders may result in fines of up to 10 million won per incident.The Ministry of Oceans and Fisheries announced that a revised enforcement decree of the Act on the Management and Reclamation of Public Waters was approved at a cabinet meeting on September 8.This revision follows the amendment of the public waters law last year, which will take effect on September 17. It specifies the criteria and procedures for the performance bond deposit and the imposition of fines as mandated by the law.The amendment mandates that a performance bond be deposited for projects using over 10,000 square meters of public waters. This aims to secure the necessary funds for restoration from the outset of large-scale projects, clarifying the responsibility of operators for restoration.Specific criteria and procedures for imposing fines for non-compliance with restoration orders have also been established. Fines can be imposed up to 10 million won per incident and can be repeated up to twice a year until the restoration obligation is fulfilled.The ministry expects that by securing restoration funds in advance and establishing penalties for non-compliance, the effectiveness of restoration orders will be enhanced, leading to quicker recovery efforts.Hwang Jun-sung, Director of Marine Environment Policy at the Ministry of Oceans and Fisheries, stated, “With this legal amendment, we anticipate that the responsibility and effectiveness of public waters management will be significantly strengthened by securing the necessary costs for restoration from the utilization stage.”* This article has been translated by AI. September 8, 2026 1