📈 Korea Market Briefing

Seoul Morning Briefing

U.S. Market Wrap-up

All three major indexes closed higher:
- Dow: +0.43%
- S&P 500: +0.27%
- Nasdaq: +0.09%

Markets shrugged off Trump’s tariff threats, with investors showing fatigue toward protectionist narratives. Tech stocks led the way, notably Nvidia. Both the S&P 500 and Nasdaq once again hit all-time highs, despite overbought signals. Fed officials signaled that rate cuts in H2 remain likely, reinforcing a dovish stance.

KOSPI & Financial Market Overview

The KOSPI closed at 3,183.23 points, marking its 4th straight day of gains and a new yearly high. Semiconductors, biotech, and secondary batteries led the rally, with strong foreign and institutional inflows.

Government bond yields declined across the board after the Bank of Korea held rates steady. Governor Rhee emphasized prioritizing real estate stability over growth or inflation.

🔍 Key Themes & Sector Trends

• 🏦 Dividend Tax Relief in Focus: Investor interest is growing in high-dividend stocks such as holding companies (LG, SK), telecoms (KT, LGU+), and financials (KB, Hana).
• 📊 Short Selling Rises: SKC and Hanmi Semiconductor targeted heavily; caution advised in overheated names.
• 📊 Value vs. Growth: Korea seen as value play; U.S. as growth. Korean financials gaining favor for dividends and low PBR.

AI & Tech Highlights

SK Hynix continues its rally as the top beneficiary of Nvidia-led AI momentum, particularly in HBM supply. Samsung plans to launch its XR headset within the year and integrate AI into all Galaxy devices, leveraging a 400M-unit base.

🧩 Additional Headlines

• Bitcoin Rally: Stocks like Kolon and Shinsung ENG surged over 10%.
• Retail Flow Shift: Korean investors sold Tesla, rotated into fintech names like Circle.
• Distressed Debt Boom: Investment firms preparing capital to scoop up NPLs amid recession fears.

Policy & Macro Updates

• 2025 Minimum Wage: Set at KRW 10,320 (+2.9% YoY), affecting ~2.9M workers.
• L-Shaped Recession Concerns: Seoul Economic Daily urges shift to advanced industries.
• KOSPI 5000?: Edaily suggests market could hit 5,000 with zombie company clean-up.

📌 Investment Takeaways

• Focus on high-dividend domestic names amid tax policy tailwinds.
• Maintain momentum exposure in semis, AI, and tech leaders.
• Be cautious of short-selling targets showing overbought signals.
• Dovish Fed outlook supports risk assets and weakens the dollar.