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Investors Pour Money into U.S. Index and AI ETFs Over Past Year Over the past year, the domestic exchange-traded fund (ETF) market has seen significant inflows into U.S. index ETFs and AI and semiconductor ETFs, driving market growth. Long-term investment demand has concentrated on U.S. index ETFs, while funds reflecting expectations for expanded AI investment have focused on semiconductor-themed ETFs, forming the two main pillars of the ETF market.According to asset management industry sources and ETF CHECK, the top inflow over the past year was the TIGER U.S. S&P 500 ETF, which attracted 849.32 billion won. It was followed by the SOL AI Semiconductor TOP2 Plus ETF with 647.21 billion won, KODEX SK Hynix Single Stock Leverage ETF with 516.39 billion won, KODEX U.S. Nasdaq 100 ETF with 479.89 billion won, TIGER Semiconductor TOP 10 ETF with 470.13 billion won, and KODEX 200 ETF with 446.08 billion won. The KODEX KOSDAQ 150 ETF (422.77 billion won), TIGER U.S. Nasdaq 100 ETF (399.30 billion won), and KODEX U.S. S&P 500 ETF (372.96 billion won) also ranked high in net inflows. Both U.S. index ETFs and AI and semiconductor ETFs have evenly occupied the top spots in net inflows, indicating their leading role in recent ETF market demand.U.S. index ETFs have consistently absorbed long-term funds from pensions, retirement accounts, and systematic investments, serving as a foundation for the market. In contrast, AI and semiconductor ETFs have attracted large amounts of capital in a short period, driven by expectations for AI investment growth and improvements in the semiconductor industry.The assets under management (AUM) of major index ETFs have also rapidly expanded. The total AUM of four major index ETFs—KODEX 200, KODEX U.S. S&P 500, TIGER U.S. S&P 500, and TIGER U.S. Nasdaq 100—rose from 26.437 trillion won on July 31 last year to 70.6159 trillion won as of June 30 this year. This represents an increase of 44.5722 trillion won, nearly 2.7 times the previous amount over 11 months.Among these products, KODEX 200 saw the largest increase, with its AUM rising from 7.023 trillion won to 28.8249 trillion won, a 311.6% increase. TIGER U.S. S&P 500 grew from 8.7678 trillion won to 20.3326 trillion won, a 131.9% increase, while TIGER U.S. Nasdaq 100 rose from 5.4301 trillion won to 11.8752 trillion won, an increase of 118.7%. KODEX U.S. S&P 500 also increased from 4.8436 trillion won to 9.8832 trillion won, a 104.0% rise.The increase in AUM for major index ETFs reflects not only new capital inflows but also capital gains from rising domestic and international stock markets. Nevertheless, the presence of multiple U.S. index ETFs among the top net inflows over the past year suggests a steady influx of long-term investment funds supporting the expansion of AUM. The AI and semiconductor ETFs have concentrated investment demand reflecting expectations for growth in the AI industry, having absorbed large amounts of capital in a short time.Seol Tae-hyun, a researcher at DB Financial Investment, stated, The global semiconductor ETF market has shown accelerated cumulative inflows despite stock price adjustments. Following Alphabets earnings announcement, the market is evaluating not only the earnings surprise but also guidance on AI capital expenditures, return on investment, and free cash flow. However, the steady flow of funds indicates ongoing market confidence in semiconductors.He added, Domestic AI semiconductor-themed ETFs are also seeing continued inflows, particularly in high-bandwidth memory (HBM) and K-semiconductor materials, which had previously experienced significant declines, showing signs of rebound expectations.* This article has been translated by AI. July 26, 2026 18:12 -
KOSDAQ Index Plummets, Returning to Last Year's Levels The South Korean stock market has recently experienced a sharp decline, with the KOSDAQ index recording a significantly larger drop than the KOSPI, effectively returning to levels seen a year ago. After surpassing the 1,000 mark earlier this year, the KOSDAQ has faced a rapid deterioration in investor sentiment due to the launch of a single-stock leverage exchange-traded fund (ETF) and poor performance in the pharmaceutical and bio sectors. On July 24, the KOSDAQ index closed at 748.22, down 5.32% from the previous trading day, marking its lowest closing level since June 2 of last year (740.29). In contrast, the KOSPI rose 148.01% from 2,698.97 on June 2 last year to 6,690.62 on July 24. The KOSDAQ had recovered to the thousand mark (1,000) in January for the first time in nearly four years and peaked at 1,203.84 in April. However, following the launch of the single-stock leverage ETF based on Samsung Electronics and SK Hynix at the end of May, investor funds shifted towards large-cap stocks on the KOSPI, leading to a rapid change in market dynamics. From May 27 to July 24, the average daily trading volume in the KOSDAQ market was 8.766 trillion won, a 39.29% decrease from the average of 14.44 trillion won prior to the ETF launch. This contraction in market trading has quickly cooled investor sentiment, creating a vicious cycle where reduced trading volume leads to poor index performance. The pharmaceutical and bio sectors have also faced a series of setbacks contributing to the indexs decline. Some of the top market capitalization stocks have struggled due to issues such as share sales by CEOs, inadequate disclosures, and delays in new drug clinical trials. Additionally, rising interest rates have dampened investor sentiment towards growth stocks, while battery-related stocks have not shown significant rebounds, further weakening the overall upward momentum of the KOSDAQ. Individual investors have also exited the KOSDAQ. Since May 27, individuals have net sold 1.68 trillion won in the KOSDAQ market, while during the same period, they net bought 55.779 trillion won in the KOSPI. Analysts suggest that as capital flows towards large-cap and semiconductor stocks, the supply-demand gap in the KOSDAQ has widened. Market analysts believe that policies aimed at revitalizing the KOSDAQ could be a key factor in the markets recovery. The government plans to launch a second national growth fund worth 600 billion won in the third quarter and implement a KOSDAQ elevation system in the first half of next year, which will categorize approximately 1,800 KOSDAQ-listed companies into premium and standard markets. Jung Sang-hwi, a researcher at Kyobo Securities, stated, The KOSDAQ elevation system is a measure to enhance the qualitative competitiveness of listed companies, similar to the Tokyo Stock Exchanges market reform in 2022. It could serve as an opportunity to revive the investment momentum in the struggling KOSDAQ market.* This article has been translated by AI. July 26, 2026 18:12
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When merits break: Will cockroach movement test Asia's youths? SEOUL, July 26 (AJP) - The most remarkable thing about India's Cockroach movement is not that it forced the resignation of a cabinet minister. It is that it began with an insult. When a senior judge reportedly dismissed unemployed young Indians as "cockroaches" and "parasites," Generation Z did something previous generations rarely attempted. Instead of rejecting the slur, they adopted it, transforming a satirical Instagram page into a nationwide movement that ultimately compelled Prime Minister Narendra Modi's government to sacrifice Education Minister Dharmendra Pradhan over a scandal involving leaked entrance examinations. The movement amassed about 22 million Instagram followers, underscoring how quickly a satirical page could become national political infrastructure. It also exposed a stark generational imbalance: roughly 40 percent of India's population is under 40, while only about 10 percent of members of parliament fall within that age group. The episode may appear uniquely Indian. It is not. Across Asia, an uncomfortable question is emerging among younger generations: What happens when education no longer guarantees opportunity? The answer increasingly shapes politics as much as economics. For decades, much of Asia operated under a remarkably similar social contract. Study hard. Pass increasingly competitive examinations. Enter a good university. Secure a stable job. Join the middle class. That formula powered Japan's postwar miracle, South Korea's industrial rise, Singapore's technocratic success and, more recently, China's and India's expanding middle classes. Meritocracy became Asia's development model Parents accepted intense educational competition because they believed the reward justified the sacrifice. Governments invested heavily in schools because education produced economic growth. Young people tolerated extraordinary academic pressure because they believed examinations were fair. That faith is beginning to erode. India's medical entrance examination scandal merely exposed the deepest fault line. The cancelled National Eligibility cum Entrance Test, or NEET, affected about 2 million candidates seeking admission to medical colleges. The paper leak was also linked by protest organizers to more than a dozen student deaths by suicide, turning an administrative scandal into a national reckoning over the cost of competitive education. Millions of Indian families devote years—and often enormous financial resources—to preparing for a limited number of university places because higher education remains one of the few reliable routes into the middle class. When examination papers leak, students lose confidence not only in one test but in the proposition that effort determines success. India's labor market makes that sense of betrayal sharper. The International Labour Organization's latest comprehensive employment study found that educated young people accounted for an increasingly large share of the country's unemployed, illustrating the mismatch between expanding access to education and the economy's capacity to absorb graduates. The movement was therefore not simply about testing irregularities. It was about the erosion of the promise that studying hard and competing fairly would deliver upward mobility. Story hits home in South Korea South Korea has long been considered one of Asia's quintessential meritocratic societies. Yet the same bargain is weakening there, even without the street mobilization seen in India. According to the Ministry of Data and Statistics, 48.6 percent, or about 605,000, of Koreans aged 15 to 29 who had completed their education but remained unemployed had been without work for at least one year. That was the highest proportion since comparable data began in 2009. The number out of work for at least three years reached about 241,000, or 19.4 percent, also a record. Those figures describe more than a sluggish labor market. They show the growing distance between educational completion and economic independence. Young Koreans have largely followed the formula prescribed by previous generations. They remain in education longer, collect more qualifications and compete for an increasingly narrow range of secure professional jobs. Yet the transition from university to employment is becoming slower and less predictable. Real income rose only for young people in the richest 20 percent of households, gaining 1.6 percent, while it fell across each of the remaining four income groups, according to recent data. The result suggests that family wealth is increasingly determining whether young adults can withstand prolonged job searches, pursue further qualifications or wait for desirable employment. What was once presented as a competition based on talent and effort is becoming inseparable from parental resources. The economic strain does not end with employment. For many young Koreans, housing has become effectively inaccessible without family assistance, while insecure work delays marriage, childbirth and household formation. South Korea's record-low fertility is therefore not simply a lifestyle choice or a cultural rejection of marriage. It reflects the rising cost of gaining admission to adulthood. The same tension appears in the country's financial markets. As asset prices surged, young retail investors increasingly turned to leveraged exchange-traded funds and margin borrowing in an attempt to close a wealth gap that wages alone could no longer bridge. More than 1.16 million people completed the basic education course required to trade leveraged exchange-traded funds in the first half of this year, about 19 times the number a year earlier. A further 690,000 completed additional training for single-stock leveraged ETFs between April and June. This is meritocracy's financial afterlife: when education and work fail to deliver mobility quickly enough, speculation begins to look like a rational shortcut. South Korea's youth crisis also sits within a broader social contradiction. The country ranks among the world's longest-lived societies, with life expectancy reaching 83.7 years, yet it continues to record the highest suicide rate in the Organization for Economic Cooperation and Development. In 2023, 24.8 people per 100,000 died by suicide, more than double the OECD average of 10.9. The comparison should not be used to reduce suicide to academic or employment pressure alone. But it does illustrate the heavy psychological cost that can accompany an intensely competitive society when conventional routes to security begin to narrow. India's Cockroach movement is a loud expression of frustration. South Korea's version has often been quieter: withdrawal from job searches, delayed family formation, leveraged investment and disengagement from the milestones that once defined adulthood. Different economies, same frustration The symptoms vary across the region. China's young people popularized "lying flat" and later "letting it rot" amid weak graduate employment and slowing economic momentum. Japan's prolonged stagnation produced a "lost generation," many of whom moved between temporary and insecure jobs despite strong educational backgrounds. South Korea's "N-po generation" came to describe young people giving up dating, marriage, childbirth, home ownership and other ambitions as living costs outpaced wages. India's Cockroach generation is the latest and most politically explosive manifestation of the same phenomenon. The promise that education automatically delivers prosperity is no longer self-evident. A generation raised online The Cockroach movement also differs from earlier youth protests because it belongs entirely to the digital age. The movement was organized not through student unions or political parties but through memes, livestreams, Instagram reels and viral videos. Protesters documented demonstrations, interviewed one another and turned internet jokes into political slogans. Its self-mocking recruitment material listed qualifications such as being "unemployed," "lazy," "chronically online" and able to "rant professionally." The humor was not incidental. It allowed young Indians to turn labels normally used to shame them into a shared political identity. It also made the campaign legible to millions who might never attend a party rally or read a political manifesto. Unlike previous protest movements, social media was not merely a communication tool. It became the movement's headquarters, broadcasting network and recruitment office at once. Merit in the age of AI The challenge is becoming more acute as artificial intelligence begins reshaping entry-level employment. Asia's younger generation is being told simultaneously to acquire more advanced skills and to prepare for the possibility that many of the cognitive tasks associated with graduate employment will be automated. That creates a new contradiction. A university degree remains expensive and socially expected, but its economic premium is becoming less certain. Young people are asked to invest more in education even as employers gain technological alternatives to hiring them. This does not mean AI will simply eliminate graduate work. It does mean that governments can no longer rely on expanding education alone as a youth policy. They must also produce credible routes from education into employment, housing and economic independence. Replacing one Indian minister will not repair an examination system, and Korea's youth employment data will not be reversed by a single jobs program. The deeper issue is institutional trust. Young people may accept fierce competition when the rules appear fair and the rewards attainable. They become alienated when success increasingly depends on leaked papers, family wealth, asset ownership or access to shrinking professional networks. For half a century, Asian governments persuaded families that relentless investment in education would produce rising prosperity. That promise helped build modern Asia. The danger now is not simply that the return on education is weakening. It is that younger generations are beginning to believe the competition itself has been rigged. July 26, 2026 16:42 -
South Korean Companies Accelerate Investments in U.S. Amid AI Boom South Korean companies are reportedly accelerating investments and acquisitions in U.S. firms, fueled by a boom in artificial intelligence (AI).The Financial Times (FT) reported on July 24 that South Korean companies, bolstered by increased cash reserves from the AI surge, are actively pursuing investments and acquisitions in the U.S. to secure advanced technologies and avoid tariff burdens imposed by the Trump administration.According to data from South Koreas Ministry of Economy and Finance cited by FT, direct investment by South Korean companies in the U.S. reached $10.2 billion in the first quarter of this year, more than double the amount from the same period last year. This marks the largest investment in five years. Last years total direct investment in the U.S. also increased by about 15% to $25.7 billion.Sushil Bhatia, head of M&A for Goldman Sachs in the Asia-Pacific region (excluding Japan), stated, AI is fundamentally changing the way M&A transactions are conducted globally. If the U.S. is the center of innovation, then South Korea is at the heart of that in Asia. He added, South Korea is well-positioned to invest in suitable companies across the supply chain, backed by abundant capital.This investment surge is led by Samsung Electronics and SK Hynix, which are considered the biggest beneficiaries of AI infrastructure development. The stock prices of both companies have more than tripled over the past year, and their combined operating profit is expected to reach a record $400 billion this year.Last month, Samsung participated in a $100 million investment in AI data center cooling technology firm Jutacore. In the previous year, it also invested $750 million in AI semiconductor startup Groq.SK Hynix announced plans in January to invest $10 billion in U.S. innovative companies and collaborate with them. Last year, it participated in a $120 million investment in U.S. startup Abecena, which develops optical connection technology to enhance energy efficiency in AI systems.South Korean companies are also continuing to acquire U.S. tech firms. Samsung agreed to acquire the U.S. healthcare platform Xealth last year, while Doosan Robotics acquired an 89.6% stake in U.S. automation firm ONExia in Pennsylvania in 2025.Investment activities are not limited to semiconductors. Financial industry insiders report that South Korean companies in shipbuilding, robotics, biotech, and advanced manufacturing are also considering acquisitions of local firms to address geopolitical risks and enter the U.S. market.Jang Tae-won, co-head of North Asia M&A at JP Morgan, noted, Just a few years ago, cash-rich Chinese companies were aggressively acquiring Western assets at a premium. However, as U.S.-China relations have changed, Chinese firms are now effectively excluded from acquiring major U.S. assets.He added, Now is the golden era for South Korean companies in U.S. M&A, driven by strong cash flow, the need for supply chain reshoring, and demands for market access, prompting them to pursue larger and transformative deals.* This article has been translated by AI. July 26, 2026 16:28
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Top Five Financial Groups Report Record Earnings Amid Stock Market Rally The top five financial groups in South Korea reported a record net profit of over 13 trillion won in the first half of the year, driven by a booming stock market that significantly boosted non-interest income from their securities affiliates. However, the competitiveness of non-bank affiliates emerged as a key factor in determining growth rates, leading to mixed results among the holding companies.According to the financial sector on July 26, the combined net profit of KB, Shinhan, Hana, Woori, and NH Financial in the first half of the year was 13.1183 trillion won, a 9.7% increase from the same period last year (11.9541 trillion won), marking the highest figure on record for a half-year period.By individual holding company, KB Financial led with a net profit of 3.8846 trillion won (+13.1%). It was followed by Shinhan Financial with 3.4427 trillion won (+13.3%), Hana Financial with 2.4029 trillion won (+4.4%), NH Financial with 1.7791 trillion won (+9.2%), and Woori Financial with 1.6090 trillion won (+3.7%). All but Woori Financial set new half-year records.A notable change in this years first-half results was the increased significance of the non-bank sector. The combined non-interest income of the five financial groups reached a record 10.7776 trillion won, a 27.6% increase compared to the previous year. The surge in commission income from the capital markets during the stock market boom was a major driver of overall performance.The fortunes of the holding companies varied based on the performance of their non-bank affiliates. The results from the securities sector increasingly influenced the overall profit growth of the financial groups, with Hana and Woori Financial, which have relatively smaller securities affiliates, showing less improvement compared to KB and Shinhan Financial.KB Financial, which recorded the highest net profit in the first half, saw the contribution of its non-bank affiliates rise to 44%. KB Securities reported a net profit of 796.3 billion won, accounting for 21% of the groups total net profit.Shinhan Financial also benefited from Shinhan Investment Corp., which posted a net profit of 577.7 billion won, a 123% increase from the previous year. The contribution of the non-bank sector to Shinhans profits rose to about 35%. NH Financial also saw its non-bank contribution increase to 39.7%, with NH Investment & Securities reporting a net profit of 965.2 billion won in the first half, allowing NH Financial to maintain its position as the fourth-largest financial group by net profit, surpassing Woori Financial.In contrast, Hana Financial and Woori Financial struggled to overcome the size disparity of their non-bank affiliates, resulting in relatively modest growth. Hana Securities reported a net profit of 273.1 billion won, a 155.7% increase, but its absolute size remained small compared to the leading groups. Woori Investment & Securities also saw a 47% increase in net profit, but it only reached 24.7 billion won.Analysts in the financial sector noted that the performance of non-bank affiliates has become increasingly crucial in determining the growth rates and profitability of the holding companies.A financial sector official stated, Amid household loan regulations, the roles of securities and asset management non-bank affiliates are becoming more significant in group performance. The competitiveness of the capital markets will continue to be a key factor influencing the profitability of financial holding companies in the second half of the year. July 26, 2026 15:08
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Retail Investors Bet 450 Billion Won on Leveraged ETFs Ahead of New Regulations Personal investors have significantly increased their purchases of single stock leveraged exchange-traded funds (ETFs) ahead of new regulations from financial authorities. This surge in buying is interpreted as a response to the upcoming increase in the basic deposit requirement.According to the Korea Exchange and Koscom CHECK, on July 24, individual investors net purchased 453.8 billion won worth of 14 single stock leveraged ETFs related to Samsung Electronics and SK Hynix. They bought 103.8 billion won in Samsung Electronics-related products and 350 billion won in SK Hynix-related products.Excluding the first trading day after the announcement of supplementary measures on July 20, individual investors had net sold for three consecutive days from July 21 to 23. However, on July 24, they shifted back to net buying with a large-scale bargain purchase. Consequently, from July 20 to 24, they recorded a total net purchase of 115.6 billion won.Analysts suggest that this buying trend is largely driven by bargain hunting following significant price drops. On July 24, Samsung Electronics and SK Hynix saw their stock prices fall by 7% to 8%, leading to a 15% to 16% drop in major single stock leveraged products within a day. Most product prices have plummeted from their listing price of 20,000 won to around 11,000 to 12,000 won, effectively halving their value. With the basic deposit requirement set to increase from 10 million won to 30 million won starting July 31, there is also a perceived rush to increase holdings before the regulation takes effect.Financial authorities view single stock leveraged products as a significant factor contributing to market volatility, particularly surrounding Samsung Electronics and SK Hynix, and are moving to tighten regulations. Starting July 31, the basic deposit for single stock leveraged ETFs and ETNs will rise to 30 million won and will only be recognized in cash. Additionally, measures to strengthen liquidity provider (LP) management responsibilities and expand trading unit sizes will be implemented sequentially.Despite the impending regulations, market volatility remains high. According to the Korea Exchange, the average daily volatility of the KOSPI from July 1 to 24 was 6.23%, surpassing the previous monthly record of 6.11% set during the global financial crisis in October 2008. Last week, the average daily volatility was 4.98%, down from 6.75% the previous week, but still at a high level. The KOSPI and KOSDAQ markets experienced sidecar interventions four and three times, respectively, last week.Han Ji-young, a researcher at Kiwoom Securities, noted, The measures do not include reductions in leverage ratios or restrictions on new product listings, so their impact may be limited. For the time being, market direction will likely be determined more by semiconductor industry conditions and corporate earnings than by supply and demand issues related to leverage. July 26, 2026 15:04
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U.S. Tech Giants and Korean Semiconductor Leaders Brace for 'AI Earnings Super Week' U.S. tech giants and South Koreas semiconductor leaders are set to announce their second-quarter earnings, marking an AI earnings super week. Following Alphabets recent announcement of better-than-expected results and a reaffirmation of its commitment to expanding AI investments, market attention is now focused on Microsoft, Meta, Apple, Amazon, as well as Samsung Electronics and SK Hynix.According to the financial investment industry on July 26, earnings reports from key companies in the AI ecosystem will be concentrated this week in the U.S. Microsoft and Meta will release their results after the market closes on July 29, followed by ARM, Qualcomm, and Lam Research. On July 30, Apple, Amazon, and Monolithic Power (MPWR) will also report their earnings. Prior to that, semiconductor equipment firms like KLA and NXP Semiconductors will announce their results on July 28.In South Korea, SK Hynix will report its earnings on July 29, followed by Samsung Electronics, LG Energy Solution, LG Electronics, Samsung SDI, SK Innovation, and POSCO Holdings on July 30. Notably, Samsung Electronics and SK Hynix are considered key players in the AI memory market, making their results critical indicators for both the domestic stock market and the global semiconductor industry.Expectations for this earnings season are high. Samsung Electronics has already indicated a potential earnings surprise with preliminary results showing second-quarter sales of 171 trillion won and operating profit of 89.4 trillion won, exceeding market consensus. The operating profit marks an 1810% increase compared to the same period last year, setting a new record. SK Hynix is also expected to report its highest-ever earnings, with estimates suggesting second-quarter sales of 84.6 trillion won and operating profit of 64.1 trillion won, surpassing last years annual operating profit in just one quarter.Market participants are paying closer attention to the managements outlook for the second half of the year rather than just the earnings figures. Following Alphabets earnings surprise, which included a raised capital expenditure forecast by $15 billion and a reaffirmation of its AI investment strategy, data from Hana Financial Investment shows that the average stock price returns for Samsung Electronics and SK Hynix have reached 11% and 17%, respectively, in the month following the announcement.Seo Sang-young, a researcher at Mirae Asset Securities, stated, This earnings season will serve as a process to confirm whether the investment cycle across the AI supply chain, including memory, semiconductor equipment, and power semiconductors, remains valid, starting with big tech. The key will be whether the expansion of AI investments translates into actual improvements in sales, profits, and free cash flow (FCF), as well as how future investment plans and guidance are presented.However, there is a possibility of increased volatility following the earnings announcements. Seo noted, After the earnings reports, the delta hedging by options market participants and the portfolio adjustments by institutions and foreign investors may lead to differentiation by sector and increased volatility in individual stocks. Particularly, stocks reporting earnings tend to experience higher implied volatility (IV) ahead of their announcements, so it is essential to monitor not only the results but also the guidance and conference call content. July 26, 2026 13:48
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Financial Commission Awards Eight Outstanding Public Officials for Active Administration The Financial Services Commission (FSC) has recognized the reform of the stock price manipulation whistleblower reward system and the introduction of a transaction suspension system for suspected phishing accounts as exemplary cases of active administration for the first half of this year.On July 24, FSC Vice Chairman Kwon Dae-young awarded certificates of commendation to eight public officials (six for excellence and two for encouragement) for their outstanding contributions to active administration. The FSC plans to provide these awardees with incentives, including the highest performance bonuses in the future.Among the exemplary cases was the reform of the capital market unfair trading whistleblower reward system, led by Officer Kim Min-soo. The FSC praised the complete overhaul of the reward system, including the removal of the cap on rewards for reporting stock price manipulation, which aims to encourage proactive reporting from insiders and promote fair market order.Other recognized cases included measures to strengthen management of personal delinquent debts in the financial sector (Officer Lee So-min), the introduction of a transaction suspension system for suspected phishing accounts (Officer Nam Go-woon), the transition to a licensing system for debt collection (Officer Jang Hee-jin), the establishment of a joint support system in the financial sector related to the supply of naphtha due to the situation in the Middle East (Officer Lee Jeong-min), and measures to promote mid-interest loans (Officer Jeong Hyeong-jun).The encouragement awards went to the expansion and reform of the Win-Win Insurance program for vulnerable groups (Officer Lee Young-min) and the improvement of the financial regulatory sandbox system (Officer Kim Chang-bae).Additionally, Officer Yoo Eun-ji, who was recognized as an outstanding public official for active administration in the second half of last year, received the Green Tower Medal at the 6th Active Administration Awards organized by the Ministry of Personnel Management for her contributions to establishing infrastructure for preventing voice phishing through an information-sharing and analysis AI platform.The FSC selected the eight exemplary cases after evaluating ten submissions received through internal and external calls, with assessments conducted by the Active Administration Monitoring Group and private members of the Active Administration Committee, culminating in a decision made at the second meeting of the committee on July 16.Vice Chairman Kwon Dae-young stated, It is increasingly necessary to promote policies that resonate with the public in a proactive and creative manner that breaks existing frameworks. I hope that we will continue to make efforts to approach the public one step closer through active administration in the second half of the year.* This article has been translated by AI. July 26, 2026 12:04
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Woori Bank Tightens Operations for Second Half of 2026 Jung Jin-wan, CEO of Woori Bank, urged employees to convert the customer base they have built into actual profits to narrow the gap with competing banks.On July 24, Woori Bank held its 2026 Second Half Management Strategy Meeting at its headquarters in Hoehyeon-dong, Seoul, where it shared key sales strategies and execution directions for the second half of the year. Over 410 employees, including branch managers and above, attended the meeting.Jung emphasized, With over 12,000 employees holding our stock, we must enhance productivity and performance based on a sense of ownership to increase corporate value. We need to focus our capabilities on developing genuine sales that foster ongoing relationships with customers.He added, Let’s continue to adapt without wavering and achieve significant results in the second half to drastically reduce the gap with our competitors.During the meeting, Woori Bank outlined three core strategies for the second half: data-driven sales, cross-departmental synergy, and internal controls. The plan aims to accurately understand customers through data and connect this understanding to products, channels, and expertise to expand transactions and profits.To achieve this, the bank will first redesign its sales territories based on administrative districts by combining public and commercial data, and will specify key performance indicator (KPI) targets in line with market conditions. The introduction of AI agents to enhance work speed and infrastructure improvements in preparation for relaxed network separation regulations are also on the agenda.In line with the expanded use of data and artificial intelligence (AI), the bank plans to enhance its internal control system by reviewing the entire information management process. July 26, 2026 10:40
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Tax Expenditure Reform Underway: Transition from Marriage Tax Credit to Subsidies The South Korean government is expected to replace tax benefits previously granted to newlyweds with direct subsidies to encourage marriage. The housing savings plan, which has been periodically reviewed for potential elimination, is likely to be made a permanent program to ensure housing stability for low-income households. The family business inheritance tax exemption will undergo a comprehensive redesign for the first time in 30 years to prevent circumvention of regulations.According to government sources, the tax reform plan to be announced in early August will focus on livelihood taxes for citizens and vulnerable groups, as well as growth taxes to support economic development.The most significant change will be the transition of the marriage tax credit into a subsidy. Currently, couples who register their marriage can receive a tax credit of up to 1 million won, but those with low incomes who do not pay taxes miss out on this benefit and must wait until year-end tax settlements. The government is also considering converting tax credits for childbirth, adoption, infertility treatments, and medical expenses for children under six into cash support.The housing savings plan, represented by the housing savings income deduction, is expected to be made permanent by eliminating its sunset provision. This program allows heads of households without homes to deduct 40% of their contributions, up to 3 million won annually, to support housing stability for low-income families.For young workers in small businesses, there are currently tax reductions of 90% on income tax for the first five years of employment, and 70% for seniors and people with disabilities for three years. Additional benefits for workers outside the capital region are anticipated. Currently, young startups in non-capital areas receive up to 100% tax reductions on income and corporate taxes for five years, and further measures are expected.The core of the growth tax reform is the domestic production promotion tax system, referred to as the Korean version of the Inflation Reduction Act (IRA). This initiative will provide tax incentives for domestic production and investment in strategic industries such as semiconductors and secondary batteries, along with the establishment of productive financial ISAs and expanded tax credits for R&D and investment in advanced industries.Tax incentives for startups in new industries such as AI, robotics, and biotechnology will be increased, and advanced safety technologies may be added to the list of new growth and core technologies. Additional tax incentives are also being discussed for companies that invest, hire, or conduct R&D in non-capital regions as part of the 5 Extremes and 3 Specialties initiative.The family business inheritance tax exemption, introduced in 1997, will be reformed to prevent circumvention by narrowing the scope of eligible industries and land, while strengthening minimum management periods and post-management requirements. Industries that are at risk of being misused as real estate succession tools will be excluded from eligibility, and the evaluation method for inheritance and gift taxes on low PBR listed stocks will also be revised.To prevent intentional stock price suppression by major shareholders, the evaluation method for inheritance and gift taxes on listed stocks will be reformed. A proposal is being discussed to reflect asset and income values in the evaluation of stocks of listed companies with a price-to-book ratio (PBR) below 0.8. The governments stance on the taxation of virtual assets, which has recently raised the need for a fourth extension, is also expected to be clarified during the announcement of the tax reform plan.The government plans to finalize the restructuring of tax expenditures and announce the complete tax reform plan in early August.* This article has been translated by AI. July 26, 2026 10:24
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Lee Discusses AI Collaboration with Global Tech CEOs in San Francisco President Lee Jae-myung met with Jensen Huang, CEO of NVIDIA, and other leaders from U.S. and Korean tech companies to discuss artificial intelligence (AI) collaboration during a dinner in San Francisco. On July 24, local time, President Lee hosted a dinner at The Ramp restaurant with business leaders from both countries. The group enjoyed mini burgers, fish and chips, fried squid, and clam chowder while sipping Budweiser beer at an outdoor terrace table overlooking the San Francisco Bay. President Lee opened the conversation with a light-hearted remark, referencing a previous meeting with Huang in Korea where they had chicken and beer, saying, We might need some chicken here. Huang then asked the President, When was the last time you had a burger? to which President Lee replied he couldnt quite remember. Attendees included Huang, Hock Tan, CEO of Broadcom, and Rani Borkar, President of Microsoft Azure Hardware. From Korea, Lee Jae-yong, Chairman of Samsung Electronics, Chey Tae-won, Chairman of SK Group, Chung Eui-sun, Chairman of Hyundai Motor Group, and Lee Hae-jin, Chairman of Navers board were present. Government officials included Deputy Prime Minister Baek Kyung-hun and Kim Yong-beom, Chief Policy Officer at the Blue House. During the dinner, President Lee explained to Huang that in Korea, people refer to family as sikgu, meaning those who share meals together. Huang responded in English, So we are family, prompting President Lee to propose a toast, saying, We are sikgu, and emphasizing the significance of sharing a meal. When Deputy Prime Minister Baek offered to cover the meals cost, Huang jokingly requested another beer. President Lee quipped, I can’t do that because I’m a public servant, to which Huang humorously replied, Korea is a rich country. President Lee laughed and agreed, saying, That’s true, but still, I can’t. The dinner also touched on the recent volatility in the Korean stock market. According to Kim Yong-beom, when President Lee noted that Korean stocks have been experiencing some adjustments, Huang responded, They will rise again. Huang inquired about Koreas GDP size, and after receiving an explanation, he asked, So can I have another beer? I need one more. When Huang asked about the forecast for Koreas GDP growth this year, President Lee stated, Last year it was around 1%, but this year it seems we will exceed 3%. We expect it to rise above the potential growth rate, which hasn’t happened in decades. July 25, 2026 13:12
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Next Week's Stock Market Outlook: AI Investment and FOMC Results in Focus Next week, the domestic stock market will focus on the sustainability of AI investments by major U.S. tech companies and the results of the Federal Open Market Committee (FOMC). The market experienced a sharp decline due to the emergence of Chinese AI models and geopolitical risks in the Middle East, but sentiment around semiconductor investments partially recovered following Alphabets announcement of increased capital expenditures (CAPEX). However, ongoing military tensions between the U.S. and Iran, along with concerns over high oil prices, are expected to keep volatility high in the near term.According to the Korea Exchange, on July 24, the KOSPI closed at 6,690.02, down 406.87 points (5.73%) from the previous trading day, while the KOSDAQ finished at 748.22, down 42.06 points (5.32%). Over the week from July 20 to 24, the KOSPI and KOSDAQ fell by 1.91% and 5.51%, respectively.Last week, the stock market was pressured by concerns over the semiconductor industry and geopolitical instability. The Chinese AI startup Moonshot AI unveiled its high-efficiency AI model Kimi K3, raising fears of declining demand for GPUs and high-bandwidth memory (HBM). Additionally, renewed military tensions between the U.S. and Iran led to rising international oil prices and market interest rates. This prompted profit-taking in the semiconductor sector, but Alphabets upward revision of its 2026 CAPEX guidance, alongside cloud growth, alleviated some concerns about a slowdown in AI investment.Signs of recovery in supply and demand were also observed. As individual investors continued to liquidate leveraged positions, foreign investors began buying on dips as the KOSPI fell to the 6,400 level, creating a rebound opportunity. Analysts suggest that the recent adjustments are part of a normalization process rather than a reflection of deteriorating semiconductor conditions.Lee Jae-won, a researcher at Yuanta Securities, stated, What collapsed in July was the excessively accumulated leveraged positions rather than semiconductor profits. Considering Alphabets CAPEX expansion and customer demand, there is no confirmed change supporting the peak-out of AI investment and semiconductor highs. He added, While passing the peak of forced selling does not necessarily indicate a trend reversal, prioritizing large-cap semiconductor stocks and expanding positions in oversold sectors could be a suitable strategy if supply and demand improvements spread.Looking ahead, global monetary policy and the performance of major tech companies are expected to be key variables influencing the stock market. Starting on July 29, the U.S. FOMC and SK Hynixs earnings report will be released, followed by the second-quarter GDP figures for the U.S. and Eurozone, as well as earnings from Microsoft, Meta, and Qualcomm on July 30. On July 31, the Bank of Japans monetary policy meeting and earnings reports from Apple and Amazon are also scheduled.Economic indicators are likely to significantly impact investor sentiment. The market anticipates that the FOMC will keep interest rates steady, but attention will be on the Feds messaging regarding future monetary policy direction. The U.S. second-quarter GDP, released on the same day, is expected to confirm robust consumer and investment trends, while South Koreas July exports, set to be announced on August 1, are projected to continue a strong upward trend, particularly in semiconductors. Stronger-than-expected growth and inflation indicators could dampen expectations for interest rate cuts, potentially weighing on the stock market. Conversely, if AI investment expansion and export growth are reaffirmed, investor sentiment in the semiconductor sector could improve significantly.Analysts predict that the market will remain in a range-bound phase as the earnings confirmation process continues. If major tech companies like Meta, Microsoft, Apple, and Amazon can simultaneously demonstrate both the expansion of AI investments and profitability, it could further restore investor sentiment in the semiconductor sector. However, there are also forecasts that prolonged geopolitical risks in the Middle East and rising international oil prices could lead to increased market volatility. July 25, 2026 06:04
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SK Group Chairman Ordered to Pay $944 Million in Divorce Settlement SK Group Chairman Chey Tae-won and Art Center Nabi Director Noh So-youngs divorce property division lawsuit has reached a significant turning point. On July 24, the Seoul High Court ruled that Chey must pay Noh 944 billion won in cash as part of the property settlement. This decision comes nearly nine years after the legal dispute began with a divorce mediation request in 2017. The substantial changes in the property division amounts—from 66.5 billion won in the first trial to 1.38 trillion won in the second trial, and now to 944 billion won in the retrial—highlight the core issues at stake in this case.The primary issue was whether the SK shares held by Chey should be considered joint marital property. The first trial deemed the SK shares as separate property acquired through inheritance and gifts, excluding them from division. The court found it difficult to recognize Nohs substantial contribution to the formation, maintenance, and value increase of the shares. Consequently, only shares from some affiliates, real estate, and deposits were included in the division, resulting in a settlement amount of 66.5 billion won.However, the second trial overturned this decision. It concluded that the value of the SK shares significantly increased due to Cheys management activities during the marriage, and that Nohs contributions in household management, child-rearing, and external activities also played a role in maintaining and enhancing that value. As a result, the SK shares were included as joint property, and Nohs share was recognized at 35%, raising the property division amount to 1.38 trillion won.In October of last year, the Supreme Court ruled that acknowledging the late former President Roh Tae-woos slush fund of 30 billion won as a contribution from Noh was incorrect, stating that illegal funds cannot be considered a legitimate contribution to property formation. The court also found it erroneous to include shares gifted to relatives for maintaining management rights before the marriage breakdown in the division. Following this ruling, the case returned to the Seoul High Court.The retrial reflected the Supreme Courts intent while still determining that the SK shares are joint marital property. Although the 30 billion won slush fund and gifted shares were excluded, the court recognized that Nohs long-term contributions to household management, child-rearing, and external activities contributed to the maintenance and increase in the value of the shares. The property division ratio was set at two-thirds for Chey and one-third for Noh.This ruling is noteworthy because it does not view a businessmans shares as merely personal property while broadly recognizing the spouses contributions. While corporate shares are foundational to management rights and governance structures, if their value has significantly increased during the marriage, the spouses contributions in household management, child-rearing, and social activities cannot be excluded from the property formation process. Even inherited property cannot be entirely considered separate if its value has been maintained and increased during the marriage.The criteria for stock valuation also hold significant implications. The court assessed the property value based on the date of the conclusion of the appeal hearing on April 16, 2024. At that time, the SK stock price was around 160,000 won, but it rose to the 800,000 won range by the end of the retrial. However, the court did not directly reflect this increase in the property value. Following Supreme Court precedents, the valuation date for property division in confirmed divorce cases is the conclusion of the factual hearing. Nonetheless, the stock price surge was considered in determining the division ratio. This decision balances legal stability with practical equity. Given the high volatility of publicly traded stocks, subsequent price fluctuations after the divorce confirmation are influenced by both managerial actions and market conditions. If all future stock price changes were retroactively divided, it could complicate the resolution of property division cases. Conversely, failing to reflect significant value increases would contradict the intent of equitable liquidation.Deciding on cash payment for the property division was also deemed appropriate. The SK shares held by Chey are directly linked to the groups management rights. Dividing these shares directly could introduce uncertainties into corporate governance and market stability. While ensuring the spouses property rights, it is crucial to avoid situations where corporate management rights are jeopardized due to divorce litigation. This decision considers both individual rights and corporate stability.This case sets an important precedent for property division principles in South Korea, extending beyond the personal divorce of a conglomerate leader. Household management and child-rearing are not secondary roles separate from economic activities. The roles spouses play during long-term marriages can impact corporate value and asset growth. At the same time, it has been reaffirmed that illegal funds cannot be recognized as legitimate contributions under any circumstances.The courts ruling aims to fairly evaluate the contributions of the marital partnership while preserving the continuity of corporate management. This ruling is a result of efforts to balance these two principles. In future similar cases, it will be essential to establish consistent standards by specifically examining the property formation process, the spouses actual contributions, and the impact on corporate management rights. July 24, 2026 18:32
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CNN: Despite AI Boom, Chey Tae-won’s Ex-Wife Receives Limited Asset Division Despite a surge in SK Hynixs corporate value due to the AI boom, this increase was not reflected in the asset division between Chey Tae-won, chairman of SK Group, and Noh So-young, director of the Art Center Nabi. CNN reported that the AI boom did not alter the outcome of what has been termed the divorce of the century.On July 24, the Seoul High Court ruled that Chey must pay Noh 944 billion won (approximately $644 million) in asset division. This amount falls significantly short of what Noh had requested.The central issue in the lawsuit was the timing of the asset valuation. Nohs side argued that the valuation should be based on 2026, when the corporate value of SK Group had significantly increased due to the AI boom. SK Hynix, a subsidiary of SK Group, emerged as a major beneficiary of the soaring demand for AI semiconductors, leading to a substantial rise in the groups asset value.However, the court set the valuation date as 2024, when the appeal process concluded, prior to the fivefold increase in SK Hynixs stock price driven by AI investments. Consequently, the rise in corporate value attributed to AI was not included in the asset division.CNN explained that this ruling extends last years Supreme Court decision, which rejected claims that former President Roh Tae-woos financial support contributed to SK Groups growth, leading to the annulment of a previous asset division ruling of 1.38 trillion won. As a result, the Seoul High Court determined that Nohs share of the asset division would be one-third, while Chey would receive two-thirds.Chey and Noh were married in 1988 at the Blue House, a ceremony dubbed the wedding of the century. However, Chey announced the end of their marriage in 2015 after revealing he had a child with another woman, leading to a protracted legal battle that has lasted over a decade and is often referred to as the divorce of the century.CNN noted that when Chey disclosed the divorce in 2015, SK Hynixs stock was around 33,000 won, but the company surpassed a $1 trillion valuation in May due to explosive growth in AI semiconductor demand. Additionally, this month, it raised $26.5 billion, achieving the largest IPO by a foreign company in U.S. stock market history, highlighting the companys elevated status.Furthermore, CNN remarked, The AI boom has transformed the memory semiconductor industry into one of the hottest investment sectors globally, and emphasized that this case illustrates that the substantial increase in corporate value generated by AI does not automatically influence all legal disputes.* This article has been translated by AI. July 24, 2026 17:44
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DYA Faces Challenges as Stock Price Falls Below 800 Won DY Associates (DYA) is facing scrutiny as its stock price has fallen significantly. The company, which supplies automotive seats to Hyundai and Kia, has seen its stock drop nearly 30% this year, bringing its market capitalization close to the threshold for maintaining its listing. In response, DYA is pursuing a stock consolidation and large-scale facility investments, but concerns among investors about maintaining its listing and boosting stock prices are growing.According to the Korea Exchange, DYAs stock closed at 773 won. This represents a 29.5% decline from its closing price of 1,096 won on the first trading day of the year, January 2. During the same period, its market capitalization shrank from 51.3 billion won to 36.2 billion won. If the stock price falls by about 17.1% from its current level, it will dip below the 30 billion won threshold required for listing maintenance on the KOSDAQ.The stock price has been on a downward trend this year. After dropping to 983 won on March 3, it has mostly traded below 1,000 won. On June 22, it fell to 718 won. Although it reached a high of 1,063 won on July 10, it subsequently dropped by 10.54% and 10.41% on July 13 and 14, respectively, returning to penny stock status.Last month, DYA decided to consolidate its shares to enhance stock value. On June 25, the company announced a plan to consolidate five common shares into one. Once the consolidation is complete, the par value per share will increase from 500 won to 2,500 won, reducing the number of shares from approximately 46.77 million to 9.35 million. The new shares are set to be listed on September 11. However, while the number of shares in circulation will decrease, the value of shareholders equity and the companys market capitalization will remain unchanged. There is also a possibility that selling pressure could lead to a further decline in stock prices post-consolidation.In addition to the stock consolidation, DYA is making significant investments to boost its stock price and expand its business. In April, the company decided to invest 42.8 billion won, equivalent to 91.99% of its equity, to establish a new plant in Inju, Asan, South Chungcheong Province. In May, it committed 12.11 billion won to upgrade production facilities and establish a payment system at its Gwangju Plant No. 1, which represents about 26.03% of its equity.DYA also changed its name. Following a resolution at its regular shareholders meeting in March, the company rebranded from Daeyu A-Tech to DYA. This marks the second name change since it transitioned from Daeyu DMC to Daeyu A-Tech in 2010. At that time, the company expressed its goal to become a global enterprise encompassing the entire future mobility ecosystem.However, financial structure remains a concern. As of the end of the first quarter, DYAs total liabilities stood at 376.5 billion won, more than seven times its total equity of 50 billion won, resulting in a debt ratio of 752.3%. Short-term liquidity is also weak, with current assets at 156 billion won against current liabilities of 326.1 billion won, yielding a current ratio of 47.8%. Cash and cash equivalents plummeted from 13.2 billion won at the end of last year to 2.3 billion won at the end of the first quarter, a decrease of 82.4%. With ongoing large-scale facility investments, securing funding and managing financial burdens are expected to be future challenges.Restoring market confidence is another critical task. The Korea Exchange designated DYA as an unfaithful disclosure company on February 6 due to a delayed announcement regarding a lawsuit and corrections. Although no penalty points were imposed at that time, a fine of 12 million won for disclosure violations was levied. However, since the accumulated penalty points remain at zero, the company is not immediately subject to management designation or delisting review due to disclosure violations.Investor anxiety is also rising. In online investment communities, there are calls for effective measures to raise stock prices rather than simply reducing the number of shares. Concerns have been raised about significant losses for long-term investors. As the company continues to struggle with poor stock performance and financial burdens, market attention is focused on whether it can restore confidence and revive investor sentiment.* This article has been translated by AI. July 24, 2026 17:20