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Big Pharma Competes in mRNA Cancer Vaccine Development as South Korea Advances Domestic Production The global competition in messenger RNA (mRNA) platform development has entered a critical phase. Major pharmaceutical companies are investing heavily in new indications for vaccines targeting diseases like influenza and cancer, achieving visible results. In South Korea, the government and biotech firms are collaborating to advance domestic production efforts.According to industry sources, mRNA cancer vaccines, which have shown potential for personalized treatment, are emerging as a new battleground amid competition surrounding next-generation platforms like antibody-drug conjugates (ADCs), bispecific antibodies, and cell therapies. Recently, a personalized mRNA cancer vaccine jointly developed by U.S. pharmaceutical companies Moderna and Merck (MSD) has gained attention as a game changer after positive results in Phase 3 trials for melanoma.The competition among major pharmaceutical companies utilizing mRNA technology is expected to intensify. Last year, German biotech company BioNTech signed a $1.25 billion deal to acquire its competitor CureVac in an all-stock transaction to expand its mRNA cancer pipeline. This acquisition aims to strengthen research, manufacturing, and commercialization of mRNA-based cancer immunotherapies.Sanofi also invested in mRNA technology by acquiring the U.S. venture Translate Bio for $3.2 billion in 2021, focusing on developing new mRNA vaccines for influenza and other diseases. Pfizer and BioNTech are advancing their mRNA influenza vaccine into Phase 3 trials, closely following Moderna, which received FDA approval in August for its mRNA-based influenza vaccine, EmplusiVa, marking a first in this category. GSK recently announced Phase 2 results for its mRNA seasonal influenza vaccine candidate and plans to initiate Phase 3 trials.An industry insider noted, The fact that mRNA technology has moved beyond COVID-19 to the seasonal influenza market signifies its commercialization stage. If GSK proves competitive in Phase 3 trials, the competition between traditional technologies and mRNA platforms in the influenza vaccine market will intensify further.The South Korean governments push for mRNA domestic production is also gaining momentum. The Korea Disease Control and Prevention Agency has increased the budget for next years Pandemic Preparedness mRNA Vaccine Development Support Project by 53.4% to 40.5 billion won, up from 26.4 billion won this year. The government previously announced plans to invest a total of 505.2 billion won by 2028 to localize currently imported mRNA vaccines and secure rapid development platforms. The goal is to support development from preclinical to Phase 3 trials, aiming for product approval by 2028.GC Pharma is a leading candidate for domestic production. The company submitted an Investigational New Drug (IND) application for its COVID-19 mRNA vaccine candidate last month and plans to enter Phase 2 trials this fall. GC Pharma stated, We aim to establish a proprietary mRNA-lipid nanoparticle (LNP) platform that can be used broadly, not limited to specific vaccine development, and create a structure that allows us to expand into contract development and manufacturing (CDMO) services beyond mere technological independence.In addition to vaccine developers, movements toward domestic production are also evident in the CDMO sector. ST Pharm has announced its transition from an oligonucleotide CDMO business to an integrated RNA CDMO model, expanding into mRNA and LNP formulation.Jeong I-soo, a researcher at IBK Investment & Securities, commented, As global latecomers accelerate their mRNA cancer vaccine development, the demand for CDMO services for early clinical supplies is expected to rise. Interest in domestic companies with mRNA delivery and platform technologies will also increase.* This article has been translated by AI. September 9, 2026 1 -
Lee Jae-yong Purchases 7.18 Million Shares of Samsung Electronics from Mother Hong Ra-hee for 1.9 Trillion Won Lee Jae-yong, the chairman of Samsung Electronics, has purchased 7.18 million shares of the company from his mother, Hong Ra-hee, the honorary director of the Leeum Museum, for approximately 1.9 trillion won. This transaction is believed to be aimed at repaying loans incurred during the inheritance tax payment process following the death of the late Lee Kun-hee, former chairman of Samsung.On September 9, Samsung Electronics announced that a transaction had taken place between major shareholders, with Hong Ra-hee selling 7.18 million shares to Lee Jae-yong. The deal is valued at around 1.9 trillion won, representing about 0.11% of the total issued shares of Samsung Electronics.The transaction was conducted as a private deal between Hong and Lee. A Samsung Electronics representative stated, As this is a transaction between major shareholders, we do not have an official position to disclose on behalf of the company.Industry analysts believe that Hong Ra-hee sold part of her shares to repay the loans incurred during the inheritance tax payment process. The Samsung family has been making installment payments on the inheritance tax related to the shares and real estate inherited after the late chairmans passing.By selling the shares directly to Lee Jae-yong instead of on the open market, it is interpreted as an effort to minimize the impact on the market. A large volume of shares worth over 1 trillion won could potentially exert pressure on Samsung Electronics stock price if released all at once.As a result of this transaction, Lee Jae-yongs ownership stake in Samsung Electronics will see a slight increase. However, since the shares involved represent only 0.11% of the total issued shares, the impact on the governance structure of the Samsung Group is expected to be limited.* This article has been translated by AI. September 9, 2026 1
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Expert Column: The Policy Competence and Morality of the Administration South Korea is home to a diverse population that includes both older generations who experienced the Japanese colonial period, the Korean War, and rapid economic growth, as well as younger individuals who may not be familiar with significant historical events like the May 18 Gwangju Uprising. This demographic mix has contributed to severe economic polarization.The historical and economic backgrounds create a fertile ground for various perspectives. The role of politicians is to unite the diverse thoughts of the populace and to design a better future.The essence of politics lies in benefiting the people. It is the duty of politicians to act in the interest of the public. When politicians prioritize their own interests over those of the citizens, it leads to public discontent.Recently, the president faced criticism for selling a house while establishing a mortgage. While the president is entitled to invest and engage in real estate transactions, officials who are knowledgeable about policies should ideally refrain from such dealings to avoid potential conflicts of interest.In the stock market, insider trading is considered unfair. Those who trade based on prior knowledge gain an advantage over investors who are unaware of such information.Policy design should focus on enhancing the happiness of the citizens, yet the current approaches to stock and real estate policies seem to be counterproductive, raising concerns. The introduction of single-stock leveraged ETFs has led to significant losses for many investors due to increased market volatility.By using a mortgage to sell an apartment and blocking bank loans, the president has made it more difficult for ordinary citizens to buy or sell properties. With increased property taxes, selling becomes challenging, leaving retirees with a single home and no cash income anxious about tax burdens.The complex tax reforms appear to prioritize punitive taxation and increased revenue collection over stabilizing the real estate market. This approach is not significantly different from those taken during the Roh Moo-hyun and Moon Jae-in administrations.Attempts to suppress demand through punitive taxation have been tried before and did not yield the intended results. This is the background behind the presidents pledge not to control housing prices through taxes. Why, then, is the same method being employed again? Is there a special reason this time?The government should not wield the power of real estate taxation against its citizens. The freedom to relocate is guaranteed by the constitution; should this right be restricted by taxation?The abolition of the prosecution has severely undermined the publics right to protection from crime. It raises questions about what benefits the general public gains from the immunity of corrupt politicians and criminals from prosecution. Is the capability and morality of the police, who have taken on this role, superior to that of the prosecution?Policies that directly affect the daily lives of citizens, such as those related to real estate, the stock market, and the abolition of the prosecution, must be approached with caution.According to a survey by Gallup Korea, 61% of the general public supports maintaining the prosecutions supplementary investigative powers, while 23% favor abolition. Among supporters of the Democratic Party, 46% support maintenance and 39% support abolition.Interestingly, the Democratic Party is pushing for an abolition that is opposed by both the general public and its own supporters, and it has been reported that the president approved the measure without reading it.Political parties must reflect on whether they are blindly following the demands of extreme factions. When significant legislation passes through the National Assembly, it is the presidents responsibility to carefully consider its potential impact on the public and take necessary actions.Policy design and implementation should not be treated as mere tools in a scientific laboratory. There must be thorough simulations of the outcomes of policy implementation and consultations on potential negative impacts to minimize side effects.It seems there is an underlying assumption that the recent amendments to the Criminal Procedure Act, which abolished prosecutorial investigative powers, can be implemented and revised later if issues arise. This could lead to numerous challenges. Convincing workers who benefited from the Yellow Envelope Law that their gains will be taken away is no easy task. Even if the Democratic Party claims that semiconductor investments in Honam are a subject of labor negotiations, it has left itself with little room to argue due to the ambiguity it has created in the law.Arrogance that disregards the market and public sentiment is evident in the ruling partys aggressive legislative push. There is a need to recognize the pitfalls of a system where the number of lawmakers does not reflect public sentiment.The direction of stock prices and real estate, the public harm caused by the amendments to the Criminal Procedure Act, and the controversies surrounding the presidents indictment and re-election will serve as benchmarks for assessing the administrations policy competence and morality.The government must implement sound policies for the comfort of its citizens and the nations development. If cabinet reshuffles are made to prevent a decline in approval ratings due to policy failures, what good will it do if the policy direction remains unchanged? Concerns are mounting.* This article has been translated by AI. September 9, 2026 1
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Court Rules on Stock Division in Kwon Hyuk-bin Divorce Case The court has recognized Kwon Hyuk-bin, Chief Vision Officer of Smilegate, as having a 35% spousal contribution in his divorce case, ordering the division of unlisted stocks. This contrasts with the ruling in the divorce case of Choi Tae-won, chairman of SK Group, where Noh So-youngs contribution was set at one-third, while Choi retained his shares. Although the contributions were similar, the division method differed based on the nature of the assets and their liquidity.On September 9, the Seoul Family Courts Division 3, led by Judge Jeong Dong-hyuk, accepted the divorce petition filed by Kwons spouse, identified as Ms. Lee, and ordered Kwon to pay her 35% of his Smilegate shares and 65 billion won in cash. The total property division amounts to approximately 2.55 trillion won.The court determined that the couples marriage had irreparably broken down and that both parties bore equal responsibility. While the divorce petition was granted, Ms. Lees claim for alimony was dismissed. The dismissal does not imply that Kwon is free from blame for the marriages collapse.A key issue was whether the Smilegate shares held in Kwons name could be considered jointly acquired property. The court noted that Ms. Lee held shares during the companys early establishment and was registered as a director and CEO. Her economic support during the early years of their marriage and her long-term contributions to household management and child-rearing were also acknowledged as part of her contribution.However, the court concluded that Kwons business acumen and management decisions were crucial to Smilegates growth, setting the property division ratio at 65% for Kwon and 35% for Ms. Lee. Although the court did not explicitly recognize Ms. Lee as a co-founder, it reflected her early involvement and direct and indirect contributions during the marriage in the property division.In July, the appellate court in Chois divorce case also recognized Nohs contributions to the formation, maintenance, and value increase of SK shares during their marriage. The Seoul High Courts Family Division 1, led by Judge Lee Sang-joo, set the division ratio at two-thirds for Choi and one-third for Noh, ordering Choi to pay Noh 944 billion won.However, the assessment of contributions differed between the two cases. In Chois case, the Supreme Court excluded 30 billion won in illegal funds linked to the late former President Roh Tae-woo, ruling that such funds fall outside the protection of the law due to their anti-social and unethical nature. This led to a reduction in the property division amount from 1.38 trillion won to 944 billion won.The division methods also varied. In Chois case, he retained his shares while paying Noh in cash. In Kwons case, 35% of the unlisted shares, valued at approximately 7.1 trillion won, will be directly transferred to Ms. Lee.Given that most of Kwons wealth is tied up in Smilegate shares, raising 2.55 trillion won in cash would require selling stocks. The difficulty of selling unlisted shares and the associated taxes and costs were considered. The fact that Kwon would not lose control even after transferring 35% of the shares also supported the in-kind division.Kwons case is still in the first instance. Once the ruling is finalized, it will become the largest property division case in a public divorce lawsuit in South Korea. However, the appellate court may reassess the division targets, ratios, stock values, and in-kind division methods. Chois case is also under review, with the Supreme Court yet to decide on 244 billion won of the 944 billion won in question.* This article has been translated by AI. September 9, 2026 1
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Housing Loans Surge Amid Decline in Credit Loans The trends in housing-related loans and credit loans are diverging significantly. While credit loans have shifted to a downward trend due to stricter management of household loans by financial institutions and increased volatility in the stock market, mortgage loans have seen a rise as collective loans are being supported to bolster housing supply.According to the Financial Services Commissions report on household loan trends for August 2026, total household loans across all financial sectors increased by 2.6 trillion won last month, a substantial decrease from the previous months increase of 6.4 trillion won.By sector, household loans from banks rose by 3.4 trillion won, a significant reduction from the previous months increase of 5.5 trillion won. In contrast, the second financial sector saw a decrease of 800 billion won compared to the previous month, marking a shift to a downward trend.However, the increase in mortgage loans has expanded. In August, mortgage loans increased by 4.3 trillion won, up 700 billion won from the previous months increase of 3.6 trillion won. The increase in mortgage loans from banks rose from 3.5 trillion won to 4 trillion won, while the second financial sectors increase grew from 1 trillion won to 3 trillion won.The growth in mortgage loans is attributed to an increase in housing transactions and a rise in the number of housing completions in July and August, leading to more execution of balance loans. According to the Ministry of Land, Infrastructure and Transport, the number of housing completions nationwide doubled from 16,000 units in June to 32,000 units in July.As part of the August 13 measures to support housing supply, collective loans for moving expenses, interim payments, and balance payments are being managed separately, which has also led to an increase in collective loans. The increase in collective loans from banks rose from 900 billion won in July to 1.2 trillion won in August. In contrast, general mortgage loans decreased from 2.1 trillion won to 2 trillion won during the same period. The rise in collective loans has driven the increase in mortgage loans from banks.On the other hand, other loans decreased by 1.7 trillion won compared to the previous month, marking a shift to a downward trend for the first time in four months since April. Among these, credit loans saw a significant drop from an increase of 2.1 trillion won in July to a decrease of 500 billion won last month. A representative from a major bank stated, Financial institutions are independently limiting credit loan limits, and with recent stock market volatility, there is a trend of investors withdrawing funds that had been directed to the stock market.Shin Jin-chang, the Secretary General of the Financial Services Commission, noted, The trend of increasing mortgage loans may continue due to seasonal funding demands during the fall moving season and the separate management of collective loans as per the August 13 measures, urging financial institutions to maintain their management of household loans. September 9, 2026 1
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KOSPI Recovers 7000 Points After 34 Trading Days, Boosted by AI and Semiconductor Stocks The KOSPI index has reclaimed the 7000-point mark for the first time since July 23, recovering after 34 trading days. On September 9, the index closed at 7051.64, up 1.40% from the previous trading day, driven by gains in artificial intelligence (AI) and semiconductor stocks. Despite external challenges such as rising oil prices from the Middle East and increasing U.S. Treasury yields, institutional investors net buying of over 900 billion won absorbed significant selling from individual investors.According to the Korea Exchange, individual and foreign investors sold a net 2.4971 trillion won and 170.2 billion won, respectively, while institutions purchased a net 900.5 billion won. The KOSDAQ also rose, closing 2.28% higher at 830.37.Semiconductor stocks led the markets rise, with the Philadelphia Semiconductor Index (SOX) increasing by 1.3% overnight, marking its fourth consecutive day of gains. SK Hynix saw a 3.51% increase, fueled by ongoing expectations for AI growth and memory demand, which also benefited companies like Samsung Electro-Mechanics, which rose by 2.48% as part of the AI infrastructure value chain.According to Kang Jin-hyuk, a researcher at Shinhan Investment Corp, As top-down and bottom-up factors are in a tug-of-war, we saw a rebound in buying following the previous days decline, alongside strong performance in AI infrastructure. The momentum from GPT-6 Astras memory continues, leading to strength in the AI value chain centered around Samsung Electronics and SK Hynix.The upward trend that began in semiconductors spread across various sectors. Stocks in secondary batteries, such as Samsung SDI (up 8.30%) and LG Energy Solution (up 6.46%), gained on expectations of benefiting from U.S. measures against Chinese battery companies. Additionally, Hanwha Oceans announcement of being selected as the preferred bidder for a 680 billion won Thai frigate project boosted shipbuilding stocks, while rising oil prices led to gains in refining and chemical stocks like SK Innovation (up 11.23%) and S-Oil (up 4.08%).Market analysts believe that despite ongoing external uncertainties, the performance and demand momentum of AI-related stocks will provide upward momentum for the domestic stock market. They are particularly focused on whether the KOSPI can stabilize above the 7000-point level as sector-specific positive news leads to a rotation of investments.Lee Kyung-min, a researcher at Daishin Securities, stated, Despite unstable external conditions, the growth potential and demand momentum of AI have acted as upward pressure on related sectors. The rotation of investments based on sector-specific positive news has led to a differentiated market performance.In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1336.1 won, down 9.5 won from the previous trading day.* This article has been translated by AI. September 9, 2026 1
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ETF Market Slows as Stock Prices Decline, Listings Halve The excitement surrounding new exchange-traded fund (ETF) launches has cooled. In the first half of the year, the KOSPI index surpassed the 9,000 mark, leading to a surge in new ETF listings. However, as the stock market has recently dropped nearly 30% from its peak, the pace of new listings has significantly slowed.As of September 9, the Korea Exchange reported a total of 1,168 domestic ETF listings, a modest increase of 2.73% (32 funds) from 1,136 on June 8. This is a stark contrast to the 5.97% (64 funds) increase seen from March to June, indicating a marked slowdown in new listings.This trend is attributed to the sluggish stock market. With increased volatility and dwindling trading volumes, new ETFs are struggling to attract capital, leading to a stagnant market. The stagnation has also impacted the overall growth of the ETF market. The total market capitalization of ETFs, which was approximately 470.125 trillion won on June 8, has decreased to about 456.063 trillion won as of September 9, a drop of 14.621 trillion won (2.99%) over three months. During the same period, the total number of outstanding shares fell from approximately 31.127 billion to 29.396 billion, a decrease of 5.84%, confirming a trend of capital outflow from the market.There has been a wave of delistings of unpopular and small-scale ETFs. So far this year, 22 ETFs have entered the delisting process. Notably, in the last three months alone, 13 funds, including PLUS Global AI Infrastructure, TIME U.S. Dividend Dow Jones Active, and VITA MZ Consumption Active, have been removed. The decline in trading volumes due to the market downturn has made it increasingly difficult for mini ETFs with assets under 5 billion won to cover liquidity provider fees and listing maintenance costs, prompting fund managers to undertake voluntary restructuring.Industry insiders expect this trend of slowing listings to continue until the stock market direction becomes clearer. A representative from an asset management firm noted, The process from ETF planning to listing review typically takes 2 to 3 months. However, with the recent increase in market volatility, fund managers are focusing on risk management rather than aggressively launching new products. A strategy centered on selecting and concentrating on high-quality representative products is likely to prevail. September 9, 2026 1
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South Korea takes state-led route in AI race as latecomer SEOUL, September 09 (AJP) - America's biggest technology companies are preparing to pour roughly $725 billion into artificial intelligence infrastructure this year. South Korea cannot come close to matching that private-sector firepower. So Seoul is reaching for something Silicon Valley does not need nearly as much — the state balance sheet. The government's 2027 budget bill submitted to the National Assembly on Sept. 3 lifts spending on AI and three linked mega-projects by 97.2 percent to 21.3 trillion won ($15.8 billion), equivalent to about 2.6 percent of total government expenditure of 820.9 trillion won. Their share was about 1.5 percent this year. Gartner forecasts worldwide AI spending will reach $2.59 trillion in 2026, up 47 percent from a year earlier. The four biggest U.S. hyperscalers — Amazon, Microsoft, Google and Meta — alone plan around $725 billion in capital expenditure this year, up 77 percent from 2025, according to Value Add VC's tracker. Korea's wager is different. Private AI investment in the country came to a paltry $1.78 billion in 2025, compared with $285.9 billion in the United States, according to Stanford University's 2026 AI Index. Still, Korea ranked first globally in AI patents per 100,000 people, at 14.31, and third in notable AI models released. The mismatch points to the problem Seoul is trying to solve through state-led investment. Korea has technological capability, but the pools of private capital needed to scale it remain far smaller than in the United States. The treasury is moving to fill part of that gap. The 2027 money goes beyond R&D. It includes another 10,000 high-end graphics processing units, 3.1 trillion won for physical AI and roughly 2,000 domestically produced robots to be deployed in defense, policing, firefighting, care services and agriculture. Korea has reason to believe the factory floor could be its strongest AI battlefield. It already has the world's highest industrial robot density, with 1,220 robots for every 10,000 manufacturing workers, according to the International Federation of Robotics. Singapore is second at 818, while Germany and Japan have 449 and 446, respectively. If Korea cannot match the United States in software capital or China in industrial scale, Seoul is betting that it can compete where AI meets manufacturing. China illustrates the size of the challenge. It installed 295,000 industrial robots in 2024, accounting for 54 percent of all installations worldwide, and operates roughly 2 million robots, according to the IFR. South Korea is therefore trying to combine its semiconductor and automation strengths with a government-financed AI layer. AI colleges will expand from KAIST to all four national science and technology institutes, alongside new industry-linked graduate programs. The science ministry's budget rises 24.5 percent to a record 29.6 trillion won next year. Deputy Prime Minister and Science Minister Bae Kyung-hoon, who oversees 9.4 trillion won of the ministry's budget, has framed physical AI as an export strategy. Korea will "export the Republic of Korea's factories to the world" on a homegrown physical AI platform, he told a fiscal strategy meeting at the presidential compound in June. The budget push sits inside a much larger corporate investment drive unveiled by President Lee Jae Myung that month. Samsung Electronics, SK hynix and suppliers plan about 800 trillion won in new semiconductor investment, including fabrication plants in southwestern Korea, while SK Group, GS Group and Naver are backing an initial 550 trillion won buildout of AI data centers. Those sums are corporate investment rather than direct government expenditure. Seoul is seeking to accelerate them through infrastructure, policy support and public investment. "We must secure the core elements of AI faster than any other country," Lee said in announcing the three mega-project strategy. Nvidia is another part of the buildout. Chief Executive Jensen Huang said his company had agreed to supply 260,000 GPUs to the Korean government and four conglomerates, describing Korea as "the only government that has directly purchased AI chips for national R&D." The supply would push Korea's chip stock above 300,000 units from about 65,000 and feed new computing infrastructure, including a 2.41 trillion won national computing center in Haenam that broke ground in August. The model stands in sharp contrast to the United States. Washington's AI leadership has largely been financed by corporations and venture capital, with federal spending concentrated on research, procurement and strategic programs rather than attempting to replicate hyperscaler investment. Japan has taken a more interventionist approach, setting aside about 1.23 trillion yen ($8 billion) for advanced chips and AI this fiscal year, while India's five-year IndiaAI Mission totals 103.72 billion rupees ($1.09 billion). China offers the closer parallel, having long used government guidance funds and industrial policy to direct capital toward semiconductors, AI and other strategic technologies. Seoul is also extending its strategy beyond chips and robots. The Ministry of Land, Infrastructure and Transport on Wednesday presented a "K-AI City" strategy in Busan that would apply AI to building permits, municipal control rooms and other urban functions. Wonju, Cheonan-Asan, Saemangeum and Gwangju have been selected as pilot areas. Land Minister Kim Yun-duk said the program would be judged by whether it made everyday life safer rather than by the sophistication of the technology itself, promising "a people-centered AI city, where technology is not the goal itself." Money, however, may not remain Korea's biggest constraint. Electricity is emerging as another. The semiconductor factories and AI data centers planned across the country could require an additional 25 to 30 gigawatts of power, roughly equivalent to the output of 20 nuclear reactors, Reuters reported Tuesday, citing government estimates. Nuclear power currently supplies nearly a third of Korea's electricity. The initial AI data-center plan alone calls for about 8.4 GW of capacity, backed by SK, GS and Naver, with another 10 GW envisaged by 2035. Korea may therefore find that financing GPUs and factories is easier than supplying them with enough electricity. There is also a fiscal vulnerability built into Seoul's strategy. National tax revenue is forecast to jump 49.8 percent next year, with the semiconductor upcycle creating much of the fiscal room for the government's spending expansion. The global AI boom is generating extraordinary profits and tax receipts from Korea's memory-chip industry. Seoul is recycling part of that windfall into an attempt to build a broader domestic AI industry. A reversal in the memory cycle would weaken both sides of the equation at once. For now, the government is treating the race as one Korea cannot afford to sit out. Ha Jung-woo, standing vice chair of the Presidential Council on National AI Strategy since Aug. 31, described it Tuesday as "an all-out national contest that decides industry, security and growth." Unlike the United States, where companies are financing most of that contest, Korea is making the government one of its biggest early investors. AJP Takeaways - Korea nearly doubles 2027 spending on AI and three linked mega-projects to 21.3 trillion won. - Private AI investment remains a fraction of U.S. levels despite Korea's strength in patents and notable AI models. - Seoul is betting heavily on physical AI, building on the world's highest industrial robot density. - Electricity demand and reliance on the semiconductor upcycle pose longer-term risks to the state-led strategy. September 9, 2026 1 -
Middle East Conflict Drives Commodity Investments Over Defense Stocks The ongoing conflict between the U.S. and Iran in the Middle East is drawing attention to commodity-related investments. However, rather than expanding, the conflict appears to be stabilizing at a similar scale, limiting the performance of defense stocks.As of September 9, the Korea Exchange reports that key commodity-related products, including crude oil exchange-traded notes (ETNs), are on the rise. The Meritz Securities West Texas Intermediate (WTI) crude oil futures ETN has increased by 27.70% over the past month. Other products, such as the Samsung Bloomberg WTI crude oil futures ETN and the Shinhan WTI crude oil futures ETN, have also risen by 20.44% and 19.86%, respectively.The surge in crude oil ETNs is attributed to the prolonged nature of the U.S.-Iran conflict, which is lasting longer than initially expected. On the same day, U.S. forces attacked an Iranian small oil tanker near the island of Hargh, and the Islamic Revolutionary Guard Corps (IRGC) navy has warned of retaliation.The overall rise in oil prices has also made refining stocks an attractive investment option. The destruction of refining facilities near the Strait of Hormuz has contributed to this trend. Consequently, refining margins—the profit made from processing crude oil into products—have significantly increased. Market expectations for refining margins in the second half of the year are projected to reach $30 per barrel, three times the $10 per barrel seen in the fourth quarter of last year, prior to the conflict.Domestic refining companies have seen their stock prices soar, reflecting strong market optimism. SK Innovation and S-Oil have risen by 41.34% and 32.58%, respectively, compared to a month ago, while GS has increased by 23.58% during the same period. Securities firms are raising their target prices for refining stocks in response to the rising oil prices.As the war continues, agricultural ETNs, including soybeans and corn, are also experiencing upward trends. The Meritz representative agricultural futures have risen by 13.58% compared to a month ago, while Shinhan soybean futures have increased by 11.7%. This is attributed to rising international oil prices, which have drawn attention to bioethanol as a potential substitute. With production expected to decline due to extreme heat in various regions of the Northern Hemisphere, increased demand is also a factor.However, despite the prolonged conflict, the focus on defense stocks remains limited as the frontlines have not expanded. Leading defense companies, such as Hanwha Aerospace and LIG Defense and Aerospace, have seen their stock prices drop by 0.66% and 4.56%, respectively, over the past month. Hyundai Rotem has also fallen by 12.55% during the same period.The demand for commodity-related securities is expected to continue in the near term due to the ongoing war. Samsung Securities stated, There are no clear downward factors for oil prices, and upward pressure from inventory depletion is expected to persist. Saudi Arabia and the UAEs crude oil exports in August have plummeted to levels seen at the beginning of the war in March. Even if the Strait of Hormuz reopens and supply chains normalize, shortages of petroleum products will continue.* This article has been translated by AI. September 9, 2026 1
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XIIlab rises after winning NVIDIA-backed AI vision challenge SEOUL, September 9 (AJP) - South Korean artificial intelligence startup XIIlab rose nearly 5 percent Wednesday after winning a computer vision competition that tested whether models trained on synthetic images could perform effectively in real-world conditions. Shares traded at 11,760 won ($8.46) as of 2:09 p.m. on the KOSDAQ, up 4.91 percent from the previous close of 11,210 won. The stock opened at 11,800 won and climbed as high as 12,690 won during the session before giving back part of its gains. “For physical AI to work in the real world, models trained in virtual environments need to perform reliably in real-world settings,” Chief Technology Officer Eugene Song said. “We will continue to advance technologies combining virtual and field data to support the real-world deployment of physical AI.” The advance came after the company said its team took first place in Track four of the 10th AI City Challenge, an international computer vision competition whose winners were announced at the 19th European Conference on Computer Vision (ECCV 2026) in Malmö, Sweden. The final results were confirmed after organizers completed code, eligibility and reproducibility reviews. The competition, organized by NVIDIA, focuses on technologies for intelligent transportation, smart cities and large-scale video analysis. A major theme is synthetic-to-real (Sim2Real) learning, which examines whether models trained on artificial data can retain their performance when applied in real world settings. For Track four, participants trained their models using more than 1.01 million synthetic images showing normal and abnormal human behavior. They were then evaluated using 1,978 text queries and a gallery of real images, with the task requiring models to find specific people based on descriptions of their appearance, actions and surroundings. XIIlab's team recorded a mean average precision score of 99.3020 percent, ranking first in the final results. The challenge is closely tied to physical AI, which enables machines such as robots, autonomous vehicles and industrial equipment to perceive and respond to their surroundings. Training such systems often relies on simulations and synthetic data before they are deployed in factories, logistics centers and other physical environments. XIIlab plans to apply the technology to its computer vision and digital twin businesses. The company aims to use digital replicas of physical spaces to generate training data, train AI models and test them before deploying them at actual sites. Founded in 2010, XIIlab develops AI software that analyzes video to identify people, objects and events. It also creates synthetic data for AI training and develops GPU-based software used in AI computing systems. The company listed on the KOSDAQ in February 2021. AJP Takeaways - South Korean artificial intelligence startup XIIlab rose 4.91 percent to 11,760 won ($8.46) on the KOSDAQ as of 2:09 p.m. on September 9, 2026, after winning a computer vision competition focused on synthetic-to-real AI performance. - XIIlab took first place in Track 4 of the 2026 AI City Challenge, with the final result announced at the 19th European Conference on Computer Vision (ECCV 2026) after organizers reviewed the team's code and eligibility. - In Track 4, participants trained models on more than 1.01 million synthetic images and tested them on real-world images, with XIIlab recording a mean average precision score of 99.3020 percent. September 9, 2026 1 -
Korean Won Stabilizes at 1300, Impacting Automotive and Airline Stocks The won-dollar exchange rate has sharply fallen to the 1300 range, leading to mixed fortunes across different sectors. While airline stocks, which are heavily impacted by foreign currency payments for fuel and aircraft leasing, have continued to rise, automotive stocks, which rely heavily on exports, have seen their values cut in half over the past three months. The market anticipates that the strength of the won will persist, suggesting that the fortunes of these two sectors will remain divergent for the foreseeable future.As of September 9, Korean Air shares rose to 29,800 won, an 11% increase from the closing price of 26,850 won on August 10. Compared to the closing price of 23,550 won on March 31, when the exchange rate and oil prices surged due to the U.S.-Russia conflict, this marks a 27% increase over six months. Similarly, Asiana Airlines shares increased from 6,930 won to 8,000 won, a 15% rise during the same period.The airline industry is sensitive to exchange rates, as a significant portion of its key expenses, such as fuel and aircraft leasing, are paid in dollars. A sustained strong dollar can dampen travel demand, severely affecting core operations. With the normalization of previously soaring exchange rates, there is hope for recovery in the industry and a reduction in foreign currency debt. As of the end of the second quarter, Korean Airs foreign currency debt stood at $5.6 billion (7.5 trillion won). The company noted that for every 10 won decrease in the exchange rate, its book debt decreases by 56 billion won.In contrast, the automotive sector, a key export industry, has struggled for several months. Hyundai Motors shares closed at 388,000 won, down 5% from 409,000 won a month ago. Although Hyundai saw a surge in global vehicle sales and a renewed focus on its future robotics business, which led to a record high of 787,000 won on June 2, the subsequent stabilization of the exchange rate, U.S. tariffs on automobiles, and production disruptions due to strikes have caused the stock price to plummet by over 50% in three months. Kias shares also fell to 126,800 won, a 6% decrease from 135,200 won a month ago, and down 25% from the closing price of 169,200 won in May.Analysts predict that the decline in the exchange rate will visibly impact the export profitability of automotive companies starting in the third quarter. If the won continues to strengthen, the dollar revenue earned from exports will convert to a lower amount in won, negatively affecting performance. Yuanta Securities estimated that the increase in operating profit for Hyundai and Kia due to the exchange rate from the first quarter of 2023 to the second quarter would be approximately 3.7 trillion won and 4.3 trillion won, respectively. The Hyundai Motor Group has previously offset U.S. tariffs with favorable exchange rates, making the current downward trend in the exchange rate a burden on performance.Meanwhile, as of 3:30 PM on the same day, the exchange rate of the won against the dollar in the Seoul foreign exchange market was recorded at 1,336 won, down 4.90 won from the previous day. This represents a 12% decrease compared to the weekly closing price of 1,549.4 won at the end of June. The exchange rate started the year in the mid-1400 won range, peaked above 1,560 won in early June, marking the highest level since the financial crisis, but has shown a steady decline since July. Analysts suggest that the exchange rate may continue to trend downward into the low 1300 won range for the time being.* This article has been translated by AI. September 9, 2026 1
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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
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Kioxia Dismisses Semiconductor Production Partnership with SK Hynix Kioxia, a Japanese NAND flash manufacturer, has dismissed rumors of a semiconductor production partnership with SK Hynix, as mentioned by SK Hynix Chairman Choi Tae-won.In an interview with Bloomberg News on September 9, Kioxia CEO Hiroo Ota stated that joint production with SK Hynix could violate antitrust laws and would be difficult to reconcile with Kioxias current collaboration with SanDisk.This response follows Chois comments in an Asahi Shimbun interview on September 2, where he described joint production with Kioxia as one option and praised Kioxia as a company with many strengths. He also indicated that various forms of collaboration, including R&D and supply chain sharing, could be possible.While Kioxia is currently producing key products in partnership with SanDisk, Chois remarks opened the door to potential new collaborations with SK Hynix. He noted, If SK Hynix is part of Kioxias future strategy, I am open to being a partner at any time.Ota also commented on the possibility of a tripartite collaboration among Kioxia, SK Hynix, and SanDisk, stating, It is not as simple as saying, Let’s produce together. I cannot speculate on why he made those comments.SK Hynix became Kioxias largest shareholder last month, leading to ongoing discussions about potential collaboration. Choi, who has advocated for economic cooperation between South Korea and Japan, has raised interest in the feasibility of joint production with Kioxia. Kioxia sources some of the DRAM used in its solid-state drives (SSDs) from SK Hynix.However, Bloomberg reported that an SK Hynix executive indicated that Chois comments about joint production were made in a general context.The discussion of joint production arises amid a global shortage of memory supplies driven by the surge in artificial intelligence (AI) demand. Kioxia, the worlds third-largest NAND flash manufacturer, saw its average NAND sales price rise by 70% in the second quarter compared to the previous quarter, and its stock price has surged 18-fold over the past year, making it the top company by market capitalization on the Japanese stock market in June.In response to concerns that rising prices could dampen investment enthusiasm in the AI sector, Ota instructed his sales team not to significantly increase prices. He emphasized the need for alternative solutions to address the soaring prices of memory semiconductors, stating, (NAND) prices have already risen sufficiently. If we excessively raise prices, we will ultimately harm our own market.Additionally, Ota expressed his commitment to focusing on developing technological capabilities that companies seek, rather than merely pursuing market share, in anticipation of competition from Chinas largest memory semiconductor company, YMTC (Yangtze Memory Technologies Co.). September 9, 2026 1
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Younger Consumers Shift to Premium Single Malt Whisky The frequency of drinking has decreased, but more consumers in their 20s and 30s are opting for higher-quality alcohol. Instead of drinking more often, this demographic is embracing a trend of selective drinking, prioritizing taste, quality, and rarity in premium beverages. This shift is reflected in the growth of single malt whisky in the market. According to data from the Korea Customs Service on September 9, whisky imports in South Korea from January to July this year totaled 10,658 tons, a 24.0% decrease from 14,026 tons during the same period last year. The total annual import volume also fell by 17.7% compared to the previous year. However, the quality of consumption has changed. In the first half of this year, single malt whisky became the top-selling category on GS25s alcohol smart order platform, Wine25Plus, surpassing all other types, including wine and blended whisky. Single malt whisky now accounts for 61% of whisky sales, up 15 percentage points from the previous year. Notably, sales of premium single malts priced over 100,000 won increased by 126%. Conversely, the sales share of blended whisky, commonly used in highballs, has decreased by about 30%. Products meant to be enjoyed neat, such as Balvenie 12 and 14 years, Glenfiddich 15 years, and Kavalan Solist, have risen to the top of sales rankings. GS25s analysis indicates that while highballs once served as an introduction to whisky, more consumers are now enjoying the flavors and aromas of the spirit directly. The most significant increase in single malt sales at GS25 over the past two years has been among men in their 20s, with a growth rate of 75%. This group accounted for 56% of the total alcohol spending on Wine25Plus, the highest among all age groups. While middle-aged consumers still represent a larger absolute purchasing amount, the trend of expanding whisky consumption to younger demographics is evident. Changing drinking habits among the 2030 generation support this trend. A survey conducted by Open Survey last month among 2,000 men and women aged 20 to 39 found that the percentage of those who drank alcohol in the past month was 67.2%, down 4.9 percentage points from 2024. The average monthly drinking frequency also decreased by 0.64 to 6.4 times. The primary reasons for reducing alcohol consumption were health concerns (28.6%), economic burden (27.9%), and increased alternative leisure activities (18.8%). Despite drinking less, interest in high-quality beverages remains strong. Among recent drinkers, 62.6% preferred to drink good alcohol occasionally rather than frequently. Additionally, 53.9% expressed a willingness to pay more for better taste and quality. A significant 67.9% reported that they prefer to drink at their own pace rather than matching others, and 66.9% stated they try to stick to a set drinking limit. New products tried among imported beverages have focused on premium whisky, sake, and imported beer. Whiskys presence is also growing in large supermarket alcohol sections. Lotte Mart reported a 2.3% increase in liquor sales in the first half of this year compared to the same period last year. Spirits have now surpassed wine to become the second-largest category in alcohol sales, following domestic beer. This marks a shift in the ranking that had remained unchanged for three years. While the mid-range price segment is shrinking, the share of high-end products is increasing. Sales of whiskies priced between 30,000 and 100,000 won at E-Mart fell by 19% compared to the previous year, while sales of whiskies priced between 100,000 and 200,000 won rose by 34%, and those over 200,000 won increased by 28%. At Lotte Mart, the share of premium whiskies priced over 100,000 won rose from 42.9% in 2024 to 49.0% last year. This trend makes it difficult to view the overall decline in whisky import volumes as a sign of market stagnation. As whisky consumption becomes more segmented, global companies are emphasizing rarity and experience in the South Korean market. Balvenie recently unveiled its 1931 Collection, distilled in 1931 and aged for 88 years, in Seouls Seongsu-dong, marking its global debut. Only 17 bottles of this product were produced. Jim No, the representative of William Grant & Sons Korea, described South Korea as “one of the most important markets for Balvenie.” Single malt brand Bunnahabhain also launched its limited edition 21-Year Cask Strength in South Korea this year, selling out its initial stock within an hour. Bunnahabhain Master Blender Julieann Fernandez, who visited South Korea on September 7, noted, “As whisky culture matures in Korea, consumers have become very discerning and are seeking high-quality products.” A new limited edition product is expected to be introduced next month. Meanwhile, the trend of seeking non-alcoholic products is also gaining momentum. Open Survey found that the experience rate of non-alcoholic beverages among the 2030 generation rose from 64.2% in 2024 to 77.4% this year. The percentage of those who consumed non-alcoholic products in the past month doubled from 16.6% to 33.3%. An industry insider stated, “The recent whisky market is characterized by a trend toward premiumization and segmentation rather than an overall increase in sales volume. The 2030 generation is reducing their drinking frequency but is increasingly discerning about brands, aging methods, and rarity when they do choose to drink, indicating that demand for single malts and premium products will continue for the foreseeable future.”* This article has been translated by AI. September 9, 2026 1
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Court Rules on Kwon Hyuk-bin's Divorce Settlement, Valuing Assets at 2.5 Trillion Won In a divorce ruling, a court ordered Kwon Hyuk-bin, Chief Vision Officer (CVO) of Smilegate, to pay his spouse 35% of Smilegate-related stock and 650 million won in cash as part of the asset division. The court dismissed the spouses claim for alimony, determining that Kwon CVO was not responsible for the breakdown of the marriage.The Seoul Family Courts Division 3 ruled on September 9 that Kwon CVOs spouse, identified as Lee, would receive 35% of the stock related to Smilegate as part of the divorce and asset division. The remaining cash amount of 650 million won was ordered to be paid to cover the shortfall based on the asset division ratio.This ruling comes nearly three years and ten months after the case was filed in November 2022.The court assessed Kwon CVOs net worth at approximately 7.3375 trillion won, with the value of Smilegate-related stock accounting for about 7.3149 trillion won, or 99.8% of his total assets.If the stock were to be converted to cash for the asset division, Kwon CVO would need to provide around 2.55 trillion won. However, the court decided to divide 35% of the Smilegate stock in kind instead of cash, noting that Kwon CVO holds 100% of the companys shares, thus posing no risk of losing control over the company.Even if the ruling is upheld, there will be no change in Smilegates governance structure. Kwon CVO will retain 65% ownership after the stock division, alleviating concerns that he would need to sell shares to pay the substantial cash settlement.A key issue in the divorce proceedings was whether Kwon CVOs shares in Smilegate could be considered marital property. The court concluded that Kwon CVOs individual business acumen and management decisions were crucial to the companys growth, leading to a division ratio of 65% for Kwon CVO and 35% for Lee.The court acknowledged Lees indirect contributions, citing her previous ownership of shares in Smilegates predecessor, Smilegate Entertainment, and her long-term commitment to household and childcare responsibilities as factors in including Smilegate shares in the asset division.Consideration was also given to the financial support Lees family provided early in the marriage and the substantial dividends Kwon CVO received from Smilegate after the lawsuit was filed when determining the 35% contribution ratio.The valuation of Smilegates stock utilized the discounted cash flow (DCF) method. The court noted that intangible assets play a significant role in evaluating the value of gaming companies and that future growth potential must also be considered. The valuation also reflected the merger of Smilegate with four subsidiaries prior to the valuation date.The court rejected Lees claim for alimony, determining that Kwon CVO bore no responsibility for the marriages collapse. It assessed that both parties shared responsibility for the prolonged conflict and its escalation, with the degree of fault being equal.Lee was designated as the custodian and guardian of their minor children. Kwon CVO is required to pay 20 million won per month in child support until the children reach adulthood and is allowed to maintain visitation rights in accordance with the childrens wishes.Following the ruling, Kwon CVOs attorney expressed some disappointment regarding the courts assessment of the marriages breakdown but noted that the dismissal of the alimony claim indicates the court found no fault on Kwon CVOs part. The attorney stated that they would review the detailed ruling and consult with Kwon CVO regarding future legal steps.Smilegate stated, The company has no position on the personal matters of its major shareholder and will continue to carry out its business as usual. September 9, 2026 1