Latest news with #Kosdaq
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
15 hours ago
- Automotive
- Korea Herald
EV battery recycling heats up in Korea despite market slump
Industry eyes rebound by 2030 as used batteries pile up, global recycling mandates kick in Korea's industry giants are stepping up their involvement in the electric vehicle battery recycling sector, signaling expectations that the currently subdued industry will evolve into a critical component of the battery value chain. LG Energy Solution, Korea's largest battery maker, recently formed joint ventures in Europe and the US — with France's Derichebourg and Toyota Tsusho Co., respectively — marking its first direct steps into battery recycling operations in both regions. SK Ecoplant, a construction engineering unit of SK Group, is expanding its European facility in the Netherlands to add 25,000 metric tons of annual black mass processing capacity, with completion scheduled for 2025. Posco-GS Eco Materials, a 51:49 joint venture between Posco Holdings and GS Energy, acquired full control of its battery recycler, Posco HY Clean Metal, by purchasing the 35 percent stake held by China's Huayou Cobalt in April. 'It is late compared to other countries' battery industries, as even Chinese companies such as CATL have their own recycling business,' said Park Cheol-wan, a car engineering professor at Seojeong University. 'Yet it is the right path for Korean companies, as securing a stable supply chain for minerals will become increasingly significant.' These moves come as the battery recycling sector continues to suffer a deep slump, driven by sluggish EV demand and sharp declines in the prices of key battery minerals such as nickel, lithium and manganese. International lithium carbonate prices, which were above 450 Chinese yuan ($63) per kilogram in January 2023, have fallen to around 50 yuan. Nickel prices also dropped significantly, from over $31,000 per ton to around $20,000. As a result, SungEel HiTech, one of only two battery recycling companies listed on Korea's tech-focused Kosdaq, has experienced declines in profitability and free cash flow for two consecutive years. A joint battery recycling project between SungEel HiTech and SK Innovation, announced in 2022, has been indefinitely delayed, while SK Ecoplant's planned facilities in Gyeongju, North Gyeongsang Province, and Kentucky have also shown no signs of progress for years. The industry, however, anticipates a significant increase in the number of used EV batteries as they reach the end of their life cycle, which is estimated to be around 10 years. This follows the surge in global EV sales in the 2010s, which surpassed one million units in 2015. With the continued growth of EV adoption, the battery recycling market — valued at $8 billion in 2022 — is projected to expand to as much as $53.57 billion by 2030, according to SNE Research. Experts say that entering the battery recycling business is increasingly becoming essential for staying competitive in the battery industry, as global policy trends push for recycled minerals to be a core component of battery supply chains. The European Union requires all EV batteries placed within the region to meet minimum recycled metal content thresholds by 2031: 16 percent for cobalt, 85 percent for lead, 6 percent for lithium and 6 percent for nickel. These requirements will increase by 2036. Meanwhile, EVs with some key battery components or minerals sourced from foreign entities of concern are excluded from US tax credits under the Inflation Reduction Act, pressuring battery makers to secure materials domestically, often through recycling. 'It is more a matter of broader business strategy than the profitability of recycling itself, whether companies choose to outsource recycled materials or secure them in-house,' Park added. '(With policy changes in place,) it may become faster to secure used batteries rather than invest in new mines, exploration, refining and metal procurement. To ensure a stable supply of critical minerals, battery makers will be competing as if at war.'
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.
Yahoo
10-06-2025
- Business
- Yahoo
South Korea's Ruling Party Unveils Plan to Allow Stablecoins
(Bloomberg) -- South Korea's new President, Lee Jae-myung, is moving quickly to deliver on his campaign pledge to allow local companies to issue stablecoins, giving a further boost to one of the world's most active digital-asset markets. Next Stop: Rancho Cucamonga! Trump Said He Fired the National Portrait Gallery Director. She's Still There. Where Public Transit Systems Are Bouncing Back Around the World NYC Mayoral Candidates All Agree on Building More Housing. But Where? US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Lee, a progressive leader who defeated his conservative rival in last week's presidential election, has been a vocal proponent of stablecoin adoption. On Tuesday, Lee's ruling Democratic Party proposed Digital Asset Basic Act, aimed at improving transparency and encouraging competition in the crypto sector. Under the act, South Korean companies can issue stablecoins if they have at least 500 million won ($367,876) in equity capital while ensuring that refunds are guaranteed through reserves. South Korea is already a hotbed for crypto activity. More than a third of the population, or around 18 million people, participate in digital-asset markets. On some days, trading volume on local crypto exchanges surpasses turnover on the Kospi and Kosdaq stock indexes. Stablecoins are cryptocurrencies pegged to another asset, typically the US dollar. They are gaining global momentum as regulatory frameworks develop. In the US, Congress is set to vote Wednesday on key stablecoin legislation, and President Donald Trump has identified the sector as a policy priority via executive order. South Korea's act also stipulates asset-linked digital assets, including stablecoins, must be approved by the Financial Services Commission, a text of the act released by the ruling party said. Stablecoin trading is surging in South Korea. Transactions involving USDT, USDC and USDS on five major domestic exchanges reached 57 trillion won in the first quarter, Yonhap News reported, citing Bank of Korea data. Still, Lee's initiative is facing some resistance from the central bank. Bank of Korea Governor Rhee Chang-yong warned last month that stablecoins issued by non-bank entities could weaken the effectiveness of monetary policy. He argued that the central bank should take the lead in regulating a won-pegged stablecoin. Read: South Korea Crypto Industry to Gain No Matter Who Wins Election The global financial industry is also taking note. Banks including Deutsche Bank and Santander, along with major tech firms, are exploring stablecoin issuance. Shares in the world's second-largest stablecoin issuer Circle have soared after its IPO last week. Read: Stablecoin Firm Circle Surge From IPO Hits 247% on Day Two (1) South Korea's push is fueling a rally in local digital-asset stocks. Shares of KakaoPay Corp. jumped as much as 18% on Tuesday, the highest since January 2024, on expectations Lee's administration will back a won-based stablecoin. Still, some analysts are cautious. 'The rally in Kakao-related shares is fundamentally unjustifiable, as any concrete benefit from Lee's stablecoin policy remains uncertain,' JPMorgan analysts Stanley Yang and Jihyun Cho wrote in a note. South Korea continues to bear the scars of the TerraUSD collapse in 2022, which wiped out $40 billion in value and remains a cautionary tale as the country re-engages with stablecoins. New Grads Join Worst Entry-Level Job Market in Years The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again What America's Pizza Economy Is Telling Us About the Real One America Cast Itself as the World's Moral Leader. Not Anymore ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Korea Herald
04-06-2025
- Business
- Korea Herald
Kospi hits year-high on postelection optimism
South Korea's benchmark Kospi surged to a year-high as of press time on Wednesday, driven by political clarity following President Lee Jae-myung's election victory. The Kospi stood at 2,764.34 as of 2 p.m. Wednesday, marking a gain of 65.3 points, or 2.42 percent, from the previous trading session on Monday. The Korean bourse was closed on Tuesday in observance of the presidential election. The index opened at 2,737.92, trading higher from the outset as bullish sentiment carried over from the premarket hours. It continued to gain momentum throughout the morning session, reaching as high as 2,768.37 during intraday trading. This marks the first time the Kospi has surpassed the 2,760 threshold since August 2024. Foreign and institutional investors were net buyers on the day, purchasing 668 billion won ($486 million) and 441 billion won worth of shares on the benchmark index, respectively. Retail investors were the only net sellers, offloading 1.07 trillion won worth of stocks to lock in profits. Amid the market upturn, bellwether Samsung Electronics rose to 57,550 won, up 1.23 percent as of 2 p.m. Its crosstown rival SK hynix jumped 5.5 percent to 219,000 won. The secondary Kosdaq index stood at 750.42 as of 2 p.m., rising 10.13 points, or 1.37 percent, from the previous session. It opened at 749.13 and touched a day-high of 752.75 during intraday trading before paring some gains. 'In the next two to three weeks, the market will assess the likelihood of President Lee Jae-myung addressing the Korea discount and potentially driving the Kospi toward the 5,000-point milestone, while keeping a close eye on key pledges such as Commercial Act reforms and mandated cancellation of treasury shares,' said Han Ji-young, an analyst at Kiwoom Securities. Though the Korean won was expected to gain strength following Lee's victory, which reduced political uncertainty that had weighed on its valuation, the currency remained largely flat throughout the day as the strengthening US dollar offset its appreciation. The greenback rebounded from a six-week low on Tuesday after recent data reinforced the resilience of the US labor market. As of 2 p.m., the Korean won was quoted at 1,374.03 per dollar, gaining approximately 3 won from the previous trading session. It opened at 1,375.9 per dollar. 'Since all major presidential candidates had emphasized boosting domestic demand, the election outcome was not expected to have a significant impact on the currency exchange path,' said Lee Joo-woon, an economist at Daishin Securities. 'The political uncertainty had already been resolved with the impeachment of former President Yoon Suk Yeol and the scheduling of an early presidential election. 'However, the implementation of policies that had been stalled paves the way for economic recovery, which is expected to support further appreciation of the Korean won.'
