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Korea Herald
12 hours ago
- Business
- Korea Herald
Kospi closes above 3,020 for first time in 3 1/2 years
Postelection optimism fuels sharp rally, lifting hopes of a market renaissance The Kospi did not just return — it roared back. On Friday, South Korea's benchmark index surged past the long-awaited 3,000 mark and kept climbing, closing at 3,021.84, up 1.48 percent from the previous session. It was the first time the Kospi ended above 3,020 since Dec. 28, 2021. The rally seemed modest at the start, with the index opening just 0.29 percent higher at 2,986.52. Retail investors led early gains with net buying, while foreigners and institutions sold into strength, keeping the benchmark tightly anchored below the key level. That restraint vanished once the Kospi cracked 3,000 around 10:45 a.m. Momentum took over, lifting the index past 3,010 by 11:20 a.m. The market stayed buoyant throughout the afternoon, hovering near 3,010, before accelerating again in the final minutes of trading. The Kospi hit an intraday peak of 3,022.06 just before the close, settling near the high of the day. It was a historic session: Not only did the Kospi reclaim the 3,000 level for the first time since January 2022, but total market capitalization hit a record 2,472 trillion won. According to the Korea Exchange, the Kospi first crossed the 3,000 mark on Jan. 7, 2021, peaking at 3,305 in July that year. But post-COVID-19 momentum faded amid a global slowdown and recession fears, pushing the index into a prolonged slump. For much of the past year, it remained trapped in a narrow range between 2,200 and 2,800. Gains were broad-based, with most of the Kospi's top market heavyweights finishing higher. SK hynix and LG Energy Solution each rose more than 4 percent, while Naver surged nearly 7 percent. Hyundai Motor climbed 1.5 percent and Samsung Biologics added 1.7 percent. The tech-heavy Kosdaq also posted solid gains, rising 1.15 percent to close at 791.5. Institutional and foreign investors bought a combined 84 billion won, offsetting retail selling. Friday's milestone extends a two-week honeymoon rally under President Lee Jae-myung's new administration, reinforcing renewed investor confidence despite external headwinds, including Middle East tensions and lingering tariff risks. The Kospi has staged a near-unbroken rally since June 2, the eve of the general election, logging only one down day on June 13. After crossing the 2,700 mark on Lee's first full day in office, the index has jumped 12 percent, buoyed by expectations for policy reform and pro-growth momentum. 'The Kospi reversed course earlier this year as dip-buying resumed and the Trump administration announced tariff deferrals, with the rally gaining further traction around the presidential election,' the Korea Exchange said. 'The launch of the new administration has eased political uncertainty and lifted sentiment on expectations of market-friendly policies.' Analysts say the market is responding sharply to government signals. 'The Kospi's strength is being driven more by expectations of capital market reform and a valuation rerating than by earnings growth,' said Kang Jin-hyeok, analyst at Shinhan Securities. He added that Friday's rally reflected investor optimism following Thursday's unveiling of a 30.5 trillion won ($22.3 billion) supplementary budget. "This, combined with expectations of one or two additional rate cuts later this year, is fueling hopes for increased liquidity in the market.' Market watchers expect momentum to persist, brushing aside concerns of postelection fatigue. 'If current earnings trends hold, the Kospi could reach 3,100 by year-end,' said Noh Dong-kil, strategist at Shinhan Securities. 'And if rising liquidity drives a further rerating in valuations, the index could climb as high as the 3,400 range.' 'Despite the rally, Kospi's valuation remains at a neutral level," said Lee Soo-jung of Meritz Securities, adding, "With stimulus measures such as the supplementary budget and revisions to the Commercial Act upcoming, there's a strong possibility of an overshoot in the Korean stock market.' Lee anticipated foreigners to remain key drivers. After nearly 10 months of net selling, foreign investors turned net buyers in May, purchasing 1.2 trillion won, followed by an additional 5.3 trillion won in June. They remain net sellers of 8 trillion won year-to-date. Still, caution lingers as external risks and a slowing domestic economy continue to pressure sentiment. 'Despite strong policy momentum and supportive catalysts unique to the Korean market, broader fundamentals and external risks — such as weak earnings prospects, trade tensions and geopolitical instability — should not be overlooked,' said Han Ji-young, strategist at Kiwoom Securities. 'A breakout above 3,100 this year is possible, but navigating volatility will be crucial at those levels.'
Korea Herald
12-06-2025
- Business
- Korea Herald
US leads foreign inflow into Kospi after 10-month lull
Foreign investors snapped up shares worth roughly 2 trillion won ($1.5 billion) in the local stock market last month, with US investors spurring the buying momentum, according to the country's financial watchdog. In May, offshore investors poured 2.1 trillion won into the local stock market, combining the benchmark Kospi and the secondary bourse Kosdaq, turning to a net-buying stance for the first time since August, data from the Financial Supervisory Service showed Thursday. The buying spree was more concentrated on the Kospi. Of the total, 1.87 trillion won was injected into the Kospi, while the secondary Kosdaq saw net buying of 143 billion won. US investors led the charge, scooping up 1.8 trillion won worth of shares on both markets, accounting for roughly 90 percent of the total foreign purchases. This marks a sharp reversal from April, when the investors offloaded 1.46 trillion won in Korean equities. Other notable net buyers included Ireland and the Cayman Islands, a well-known tax haven, each posting net purchases of 584 billion won and 290 billion won. Yet, investors from Canada sold off stocks worth 605 billion won, followed by Norway and the United Arab Emirates, which dumped 532 billion won and 392 billion won in equity, respectively. With the latest buying spree, foreign investors' holdings of Korean equity stood at 748.8 trillion won, taking up 26.7 percent of the total market capitalization. US investors held Korean shares worth 300 trillion won, accounting for 40 percent of total foreign ownership in the market. The UK followed with 91.2 trillion won in holdings, accounting for 12.2 percent of total foreign ownership, while Singapore held 54.1 trillion won, or 7.2 percent. Foreign investors continued their fourth-month buying spree in the listed bond market in May. They purchased bonds worth 16.66 trillion won and received 5.32 trillion won in redemptions at maturity, resulting in a net investment of 11.34 trillion won. As of end-May, their holdings of local bonds had come to 300.5 trillion won, accounting for 11.2 percent of listed bonds here. The Financial Supervisory Service compiles foreign securities investment data based on settlement figures, while the bourse operator Korea Exchange uses execution-based data.
Zawya
11-06-2025
- Business
- Zawya
South Korea to revamp tax scheme to boost dividends as part of stock market reform
SEOUL - South Korean President Lee Jae-myung said on Wednesday the government was preparing to revamp the country's tax system to boost dividend payouts, as part of a broader push to make the domestic stock market more attractive. "If it does not greatly hurt public finances, it will be better to lower (taxes) for more dividend income," Lee said during a visit to the Korea Exchange. Lee also ordered regulatory improvements to prevent unfair trading practices in the market and a "one-strike-out" system to penalize illegal trades, according to his spokesperson. One of Lee's major pledges during his election campaign was to implement various capital market reforms and resolve the so-called "Korea Discount", a tendency for South Korean companies to trade at a lower valuation than global peers due to low dividend payouts and opaque corporate governance. The day after Lee took office on June 4, his Democratic Party reintroduced legislation expanding the fiduciary duty of board members to protect shareholder interests and it plans to have the bill approved this month. The country's benchmark KOSPI stock index has rallied since Lee's election victory last week on optimism around his "KOSPI 5,000" initiative aiming for the index to eventually reach 5,000 points. On Wednesday, it closed up 1.23% at 2,907.04, the highest level since January 14, 2022.
Reuters
11-06-2025
- Business
- Reuters
South Korea to revamp tax scheme to boost dividends as part of stock market reform
SEOUL, June 11 (Reuters) - South Korean President Lee Jae-myung said on Wednesday the government was preparing to revamp the country's tax system to boost dividend payouts, as part of a broader push to make the domestic stock market more attractive. "If it does not greatly hurt public finances, it will be better to lower (taxes) for more dividend income," Lee said during a visit to the Korea Exchange. Lee also ordered regulatory improvements to prevent unfair trading practices in the market and a "one-strike-out" system to penalize illegal trades, according to his spokesperson. One of Lee's major pledges during his election campaign was to implement various capital market reforms and resolve the so-called "Korea Discount", a tendency for South Korean companies to trade at a lower valuation than global peers due to low dividend payouts and opaque corporate governance. The day after Lee took office on June 4, his Democratic Party reintroduced legislation expanding the fiduciary duty of board members to protect shareholder interests and it plans to have the bill approved this month. The country's benchmark KOSPI stock index (.KS11), opens new tab has rallied since Lee's election victory last week on optimism around his "KOSPI 5,000" initiative aiming for the index to eventually reach 5,000 points. On Wednesday, it closed up 1.23% at 2,907.04, the highest level since January 14, 2022.
News18
11-06-2025
- Business
- News18
HYBE Shares Soar As BTS Nears Full-Group Reunion
Last Updated: All the BTS members are expected to be discharged from the military this month, with HYBE making grand plans for its reunion. The wait is not so far from the end! One of the most popular K-pop bands, BTS, is heading for a reunion, and fans can't be happier. With members V and RM already discharged from the military on Tuesday, others will also follow suit, prompting a fan frenzy. While the anticipation remains high, the members' return has also brought in several developments at HYBE, the record label managing BTS. While HYBE continues to maintain a leading presence in the K-pop scene, BTS has been one of the biggest contributors to its building fame and profits. After the BTS members' self-declared hiatus from music due to their mandatory military services, HYBE is now preparing to make a grand return, with CEO Lee Jae Sang also offering fresh insights about their plans for BTS's group activities. Likewise, the developments have also impacted the company's stock position, which previously kept rallying over founder Bang Si Hyuk's alleged role in fraudulent trading. HYBE Share Grows Amid BTS' Return Ahead of BTS's group comeback, HYBE's share price stood at 284,500 KRW on June 5, strongly nearing its 1-year high of 292,500 KRW. The figures went even higher on June 9 as the BTS agency's stock was trading at 302,000 won, marking a 6 per cent rise since Thursday. There has been a consistent upward trend over the past few days. While HYBE closed at 272,000 won on June 2, the figures further surged by 4 per cent and 2 per cent on June 4 and 5. The sudden shift comes as no big shock, as BTS' impactful role in driving the company's business. With such rising figures, HYBE's shares have gone up by 7.53 per cent in the last five days at the Korea Exchange. Analysts at Goldman Sachs have also upgraded HYBE Corporation stock to 'Buy," identifying a new growth opportunity for the company. Investors in the industry remain optimistic, while others believe the group must re-evaluate its musical plans to strengthen the business. 'BTS has evolved into a global pop act, but in doing so, they've lost much of the raw, hip-hop energy that defined their early years. While their solo works retain strong messages, a reset of the group's musical identity may be needed for long-term success," an insider told Allkpop. "⟭⟬E ARE B⟬⟭CK" has "BTS & ARMY" Logo on HYBE building..!BTS IS BACKBTS IS COMING BTS FESTA IS COMING BTS WE ARE BACKKINGS ARE COMING BACK #BTS12thAnniversary #BTSFESTA2025 — BTS Updates, News & Charts ⁷ (@_BTSMoments_) June 8, 2025 Meanwhile, HYBE has been making grand preparations for the group's comeback. Adding to the buzz, the company lit up its headquarters with the words 'We Are Back," instantly sending fans into a frenzy. Several pictures with an illuminated message on the building have gone viral on the internet. [MEDIA] #BTS 's Full Group Return, HYBE Building Wrapping "WE ARE BACK"On June 9th, the exterior wall of the HYBE building in Yongsan-gu, Seoul was wrapped with the official logos of BTS and ARMY (fandom name) and the phrase 'WE ARE BACK." This is part of the 'BTS FESTA," a… — BTS Charts Daily (@btschartsdailyc) June 9, 2025 Coming to BTS's much-awaited return, while Jin and J-Hope were the first ones to be discharged from the military, RM and V were released on Wednesday, June 10. Jimin and Jungkook are scheduled to be discharged on Wednesday, June 11, while the seventh and last member, Suga, will fulfill his duty later this month. First Published: June 11, 2025, 12:33 IST
