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Korea Herald
3 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
6 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.'
New Straits Times
11 hours ago
- Business
- New Straits Times
South Korea's KOSPI tops 3,000 for the first time since early 2022
SEOUL: South Korean shares rose above the 3,000 mark for the first time since January 2022 and were set to log their fourth weekly gain after newly-elected President Lee Jae Myung announced a stimulus spending plan. Expectations are that more such plans are potentially in the works. The won strengthened, while the benchmark bond yield rose. The benchmark KOSPI was up 25.02 points, or 0.84 per cent, at 3,002.76 as of 0155 GMT. For the week, the index is up 3.75 per cent. South Korea's new administration proposed on Thursday US$14.7 billion of extra government spending to support sluggish domestic demand, as President Lee makes economic recovery his top policy agenda. Among index heavyweights, chipmaker Samsung Electronics rose 0.51 per cent, while peer SK Hynix gained 2.85 per cent. Battery maker LG Energy Solution climbed 2.58 per cent. Hyundai Motor and sister automaker Kia Corp were unchanged and down 0.10 per cent, respectively. Steelmaker POSCO Holdings was flat, while drugmaker Samsung BioLogics rose 1.70 per cent. Of the total 936 traded issues, 450 shares advanced, while 435 declined. Foreigners were net sellers of shares worth RM688,000. The won was quoted at 1,371.1 per US dollar on the onshore settlement platform, 0.63 per cent higher than its previous close at 1,379.8. In offshore trading, the won was quoted at 1,371.4 per dollar, up 0.40 per cent on the day, while in non-deliverable forward trading its one-month contract was quoted at 1,368.6. The KOSPI has risen 25.14 per cent so far this year. The won has strengthened 7.40 per cent against the dollar so far this year. In money and debt markets, September futures on three-year treasury bonds lost 0.01 point to 107.07. The most liquid three-year Korean treasury bond yield rose by 1.8 basis points to 2.49 per cent, while the benchmark 10-year yield rose by 0.8 basis points to 2.89 per cent.
Business Recorder
a day ago
- Business
- Business Recorder
South Korean shares turn lower as Mideast tensions overshadow tech rally
SEOUL: Round-up of South Korean financial markets: South Korean shares fell on Thursday, weighed by heightening geopolitical tensions in the Middle East, even as tech stocks continued to rally. The won weakened, while the benchmark bond yield was steady. The benchmark KOSPI was down 11.85 points, or 0.40%, at 2,960.34 as of 0142 GMT, after starting the session higher. US President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites as the Israel-Iran conflict entered its seventh day on Thursday. South Korea's acting finance minister said authorities would closely monitor financial markets and respond in a timely manner if necessary. Among index heavyweights, chipmaker Samsung Electronics fell 0.67%, while peer SK Hynix was flat. Battery maker LG Energy Solution slid 0.86%. Hyundai Motor and sister automaker Kia Corp were up 0.49% and down 0.71%, respectively. Steelmaker POSCO Holdings was flat, while drugmaker Samsung BioLogics fell 0.60%. Tech stocks extended a rally on policy optimism, with search engine Naver rising 4.11% and instant messenger Kakao climbing 10.14%. Of the total 934 traded issues, 302 shares advanced, while 592 declined. Foreigners were net sellers of shares worth 213.9 billion won ($154.8 million). The won was quoted at 1,381.9 per dollar on the onshore settlement platform, 0.69% lower than its previous close at 1,372.3. In money and debt markets, September futures on three-year treasury bonds were unchanged at 107.11.
Time of India
a day ago
- Automotive
- Time of India
LG Energy Solution and Toyota Tsusho form battery recycling JV in North Carolina
LG Energy Solution and Toyota Tsusho Corporation have announced the formation of a battery recycling joint venture, Green Metals Battery Innovations , LLC, in the United States. The joint venture, established through LG Energy Solution Michigan and Toyota Tsusho America, will construct a pre-processing facility in Winston-Salem, North Carolina. The plant will extract black mass — a material containing nickel, cobalt, and lithium — by dismantling and shredding scrap generated during electric vehicle (EV) battery production. In its initial phase, LG Energy Solution will provide production scrap from EV batteries made for Toyota Motor . The facility is expected to begin operations in 2026 and aims to reach an annual processing capacity of 13,500 tonnes of scrap, equivalent to more than 40,000 automotive batteries. The extracted black mass will subsequently undergo post-processing to recover the raw materials, supporting a battery-to-battery closed-loop system. Focus on circular economy and supply chain resilience The joint venture is intended to strengthen battery material recycling infrastructure in North America and support the development of a circular economy in the battery supply chain. 'This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America,' said Chang Beom Kang , Chief Strategy Officer of LG Energy Solution. 'We are fully committed to leading the recycling market through innovative and differentiated technologies.' Masaharu Katayama , Chief Operating Officer of Toyota Tsusho, added, 'We are proud to partner with LG Energy Solution to advance the battery recycling infrastructure in North America. This joint venture is a significant step toward realising a circular economy for batteries, which is essential for building a sustainable mobility society.' The collaboration reflects a shared focus on building recycling capacity and reducing carbon emissions in the battery production cycle.
