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Korea Herald
13 hours ago
- Business
- Korea Herald
Korea on high alert as Middle East tensions fuel oil spike, won devaluation
South Korea's market authorities are on high alert amid the escalating conflict in the Middle East region, as surging oil prices threaten the local economy, which is heavily reliant on energy imports. Israel's threat to shut down the Strait of Hormuz, a key shipping lane for global oil and gas, has triggered concerns over oil prices, renewing inflationary pressure on Korea. Considering Korea is heavily dependent on inbound shipments of energy, inflation could quickly rebound if global oil prices rise. 'The situation remains highly uncertain following the US airstrikes and Iranian Parliament's decision to blockade the Strait of Hormuz. With international oil prices opening 2–3 percent higher today, volatility in global energy prices is expected to intensify," Acting Finance Minister Lee Hyoung-il said at a joint emergency response meeting held Monday. 'Relevant agencies should stay on high alert and closely monitor global energy prices and supply conditions,' Lee said. The Bank of Korea also held an emergency meeting and warned against "excessive volatility in the financial and forex markets," mentioning the possibility of "market stabilization measures." The Korean won's value per dollar depreciated as the greenback, a key safe-haven asset for global investors, strengthened in early trading, as investors sought to shield against mounting geopolitical risks. The devaluation of the Korean won also adds pressure to inflation. A weaker won pushes up import prices, and higher energy costs elevate producer prices at plants here, which eventually feed into consumer prices. The local currency was quoted at 1,382.48 per dollar as of 2 p.m., weakening by 8.48 won from the previous after-hours trading session. After starting daytime trading at 1,375 won, the won has further devalued against the dollar, fluctuating at the 1,380 won range. Market analysts viewed the won could quickly depreciate to the 1,400 level per dollar. 'Amid the global appeal for safe-haven assets, the won could further lose value to the 1,400 level per dollar, depending on the path of the oil prices,' analyst Kim Sang-hoon from KB Securities said. 'If West Texas Intermediate crude trades around $85 per barrel, the won per dollar is likely to rebound to the 1,390–1,420 won range. Should WTI reach $90, the won-dollar rate could overshoot to a 1,430–1,460 won level, approaching the highs in the first quarter," Kim Ho-jung, an analyst at Yuanta Securities, said. The benchmark Kospi remained largely flat as of press time, though it shed some of the gains from Friday when it surpassed the 3,000-point threshold, the first time in over 3 1/2 years. The Kospi stood at 3,007.14 as of 2 p.m., down by 0.49 percent from the previous daytime trading session. At the opening bell, the index started trading at 2,992.2, falling by nearly 30 points from the previous closing. It plunged to as low as 2,971.36 in the early hours but soon regained strength and returned to over 3,000 points shortly after noon, even briefly reaching 3,010.77 during intraday trading as of press time. While foreign investors and institutions dumped shares worth 448 billion won and 788 billion won, respectively, retail investors held the line by scooping up 1.29 trillion won as of 2 p.m.
Bloomberg
12-06-2025
- Business
- Bloomberg
South Korea Enters a Post-Election Bull Market
South Korea's June presidential election ended six months of political uncertainty and policy paralysis in the country. Investors are optimistic that President Lee Jae-myung, with the support of the legislative assembly, can boost the economy with fiscal stimulus and corporate governance reform. The Kospi Index has surged more than 20% this year, surprising many global investors who have until now been hesitant to allocate capital in the country. President Lee faces many challenges, however, including the threat of US tariffs, increasing competition from Chinese exports and a sluggish economy. And what does a return to democratic party policies mean for the chaebols, the scions of Korean industry? Peter Kim, investment strategist and managing director for KB Securities, discusses the outlook for Asia's fourth-largest economy with John Lee and Katia Dmitrieva on the Asia Centric podcast.
Korea Herald
23-05-2025
- Business
- Korea Herald
Seoul shares almost flat amid lack of market-moving catalysts
South Korean stocks finished almost flat Friday amid a lack of investment catalysts following mixed overnight results on Wall Street. The local currency gained against the US dollar. The benchmark Korea Composite Stock Price Index fell 1.58 points, or 0.06 percent, to close at 2,592.09. Trade volume was moderate at 424.6 million shares worth 7.92 trillion won ($5.76 billion). Winners, however, outnumbered losers 493 to 395. Foreign investors and institutions combined sold a net 160.7 billion won, while individuals bought a net 133.9 billion won. Overnight, US stocks closed mixed after a session marked by high volatility. The passage of US President Donald Trump's tax bill through the House of Representatives was seen as a step toward resolving policy uncertainty, helping ease concerns that had been fueled by a sharp rise in US Treasury yields the previous day. The Dow Jones Industrial Average slipped 1.35 points, unchanged from the previous session, while the S&P 500 slid 0.04 percent. The tech-heavy Nasdaq composite gained 0.28 percent. "The lack of additional upward momentum led to the prevailing wait-and-see stance among investors," said Kim Ji-won, an analyst at KB Securities. In Seoul, blue chips traded mixed. Market heavyweight Samsung Electronics fell 0.91 percent to 54,200 won, while chip rival SK hynix gained 1.57 percent to end at 200,000 won. Financial shares gained momentum, with KB Financial rising 2.38 percent to 99,000 won and Shinhan Financial climbing 1.85 percent to 55,100 won. Bio and battery shares lost ground. Samsung Biologics plunged 5.93 percent to 1,016,000 won, and top battery manufacturer LG Energy Solution declined 2.37 percent to 268,000 won. Automotive and heavy industry shares also retreated. Hyundai Motor fell 1.37 percent to 179,900 won, and top defense systems manufacturer Hanwha Aerospace shed 0.36 percent to 830,000 won. The local currency was trading at 1,375.6 won against the greenback at 3:30 p.m., up 5.7 won from the previous session. (Yonhap)
Korea Herald
22-05-2025
- Automotive
- Korea Herald
Seoul shares dip over 1% lower on US losses
South Korean stocks dropped more than 1 percent Thursday as investors dumped most blue chips in line with overnight losses on Wall Street. The local currency gained against the US dollar. The benchmark Korea Composite Stock Price Index fell 31.91 points, or 1.22 percent, to close at 2,593.67. Trade volume was moderate at 353 million shares worth 8.64 trillion won ($6.26 billion), with losers outnumbering winners 632 to 257. Foreign investors and institutions combined sold a net 915 billion won, while individuals bought a net 945 billion won. Overnight, US stocks closed lower amid concerns that US President Donald Trump's push for large-scale tax cuts would widen the federal deficit, driving up Treasury yields. The Dow Jones Industrial Average fell 1.9 percent, and the S&P 500 dropped 1.6 percent. The tech-heavy Nasdaq composite slumped 1.3 percent. "The local stock market has apparently faced selling pressure due to the US market movement," Kim Ji-won, an analyst at KB Securities, said. "With a lack of clear momentum to drive the market, a wait-and-see stance appears inevitable for the time being." In Seoul, most blue chips traded in negative territory. Market heavyweight Samsung Electronics plunged 1.8 percent to 54,700 won, and chip rival SK hynix also declined 1.8 percent to 196,900 won. Battery and bio shares also retreated. Top battery manufacturer LG Energy Solution fell 1.08 percent to 274,500 won, and Samsung Biologics tumbled 1.82 percent to 1,080,000 won. Automotive and heavy industry shares also lost ground. Top automaker Hyundai Motor plunged 2.98 percent to 182,400 won, and shipbuilder Hanhwa Ocean shed 2.4 percent to 77,300 won. The local currency was trading at 1,381.3 won against the greenback at 3:30 p.m., up 5.9 won from the previous session. (Yonhap)
Korea Herald
16-04-2025
- Business
- Korea Herald
KB Securities to open Mumbai office in India push
KB Securities, a brokerage affiliate of the South Korean finance giant, KB Financial Group, is set to establish an office in Mumbai this year to seek opportunities in the fast-growing country. "As part of its global expansion drive, KB Securities plans to open an office in India," an official from the brokerage firm confirmed on Tuesday. KB Securities currently operates six overseas units in five countries, including the US, Hong Kong, Vietnam, Indonesia and China. India will be the firm's sixth overseas destination. The firm is to seek opportunities in the Indian market through the office before officially expanding in the country. Over the past few years, Korean brokerage houses have been bolstering their expansion in India, betting big on the country's rapid economic growth. For instance, Mirae Asset Securities completed the acquisition of Indian brokerage house Sharekhan Ltd and changed its name to Mirae Asset Sharekhan in November. In January, the company announced it would inject roughly 290 billion won ($203 million) into its Indian subsidiary to spur the growth of Mirae Asset Sharekhan. Other major brokerage houses, such as NH Investment & Securities and Shinhan Investment & Securities, are eyeing opportunities to expand their presence in India, seeking chances to network with local authorities and partners. Furthermore, KB Kookmin Bank, a key affiliate of KB Financial Group, operates three branches in the country: Pune, Chennai and Gurugram. KB Securities is likely to seek synergy with the lender's operation in the country through the new office.
