◆Aju Economic Major News
▷President Yoon's Remarks on 'Predatory Finance' Prompt Financial Services Commission to Shift to 'Inclusive Finance'
- The Financial Services Commission (FSC) has decided to pursue structural reforms in finance centered on the 'Three-Tiered Inclusive Finance' model to improve the system that excludes vulnerable borrowers from formal financial services, pushing them toward policy-based microfinance and illegal private loans.
- FSC Chairman Lee Ok-yeol pointed out that formal financial institutions have failed to adequately perform risk selection and management functions, leading to middle- and low-credit borrowers being pushed into financial blind spots. He emphasized the need for alternative financing options that consider long-term recovery possibilities.
- This structural reform aligns with President Yoon Suk Yeol's statement that 'inclusive finance is the obligation of financial institutions' and the presidential office's concerns regarding interest rate disparities and the exclusion of mid-credit borrowers.
- The FSC also plans to implement a strategy for the globalization of capital markets, including allowing foreign integrated accounts for ETF investments and hosting the large-scale overseas IR event 'Korea Premium Week' to attract foreign capital to the domestic stock market.
- Additionally, the FSC is considering the complete lifting of separation regulations for financial companies equipped with security capabilities and AI utilization, while also pursuing the introduction of restrictions on dual listings.
◆Major Reports
▷Reversing Adverse Factors Can Lead to Explosive Gains [Yuanta Securities]
- Amid expectations for negotiations between the U.S. and Iran, oil prices and Treasury yields have both declined, while strong rebounds in semiconductor stocks were observed in U.S. and domestic markets, driven by Nvidia's earnings expectations and easing strike risks at Samsung Electronics.
- Foreign investors continued to sell off in the KOSPI for the 11th consecutive trading day, but the scale of net selling was significantly reduced to about 220 billion won, with institutional and individual ETF buying driving the market rebound.
- The recent sharp decline in the KOSPI was largely influenced by technical overheating due to short-term surges rather than external factors like oil prices, interest rates, and strikes. Analysts suggest that the current rebound reflects positive developments such as the labor agreement at Samsung Electronics and strong earnings expectations for Nvidia.
- The tentative labor agreement at Samsung Electronics is viewed positively for the stock price, as it reduces concerns about cash outflows and overhang risks through its share buyback method and some lock-in structures.
- Analysts note that the AI rally is showing a relatively free flow from macro variables like interest rates and consumption, unlike past IT cycles, and that strong semiconductor exports are supporting market strength.
◆Key Disclosures After Market Close (21st)
▷Plutos Decides to Issue 20 Billion Won in Convertible Bonds
▷Linked Resumes Stock Trading on the 22nd
▷JNK Global Signs 17.9 Billion Won Supply Contract for Furnaces
▷Pintek Resumes Stock Trading on the 22nd
▷Wellkeeps High Tech Resumes Stock Trading on the 22nd
▷UTI Decides to Issue 10 Billion Won in Convertible Bonds
▷CS Decides to Issue 5 Billion Won in Convertible Bonds
▷Memelavity Resumes Stock Trading on the 22nd
◆Fund Trends (As of 20th, Excluding ETFs)
▷Domestic Equity: -20.5 Billion Won
▷Overseas Equity: -16.8 Billion Won
◆Key Schedule for Today (22nd)
▷South Korea: Consumer Confidence Index (May)
▷Japan: Consumer Price Index (April)
▷Germany: Ifo Business Climate Index (May)
▷United States: Consumer Sentiment Index (Preliminary, May), Conference Board Leading Economic Index (April)
* This article has been translated by AI.
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