The Korea Times

KB, Shinhan, Hana, Woori face mounting headwinds despite solid profits

Korea’s four major financial holding companies are on track to deliver another record-breaking performance in the first half of the year, driven by robust interest income and a booming domestic stock market, industry officials said Thursday. However, the outlook for the remainder of the year is expected to be less upbeat as a persistently weak Korean won, the prospect of interest rate hikes by the Bank of Korea and tighter regulatory pressure weigh on profitability. The combined net profit of KB, Shinhan, Hana and Woori financial groups is projected to reach an all-time high of 11.05 trillion won ($7.1 billion), up 5.7 percent from 10.46 trillion won a year earlier, according to market tracker FnGuide. All four groups are expected to post higher net income compared with a year earlier, with KB Financial Group projected to lead with about 3.68 trillion won. Strong first-half earnings were largely driven by steady net interest income amid higher market interest rates, as well as rising noninterest income supported by gains from securities subsidiaries. However, whether this momentum can b

Jul 2, 2026By Jun Ji-hye

KB, Shinhan, Hana, Woori face mounting headwinds despite solid profits

Companies

Will Homeplus liquidation decision be postponed again?

Homeplus has submitted an amended rehabilitation plan just three days before a court deadline, but its failure to secure a crucial 200 billion won ($129 million) capital injection is increasing uncertainty over whether the troubled retailer will face liquidation, industry sources said Wednesday. The Seoul Bankruptcy Court will now assess the feasibility of the revised proposal to determine whether to continue with rescue proceedings or dissolve the company. Although the current deadline expires this Friday, expectations are rising that the court will defer the date once more to review the new submission. The country’s second-largest retail chain, controlled by private equity firm MBK Partners, filed for corporate rehabilitation on March 4 last year after struggling with financial difficulties and facing credit rating downgrades. The original deadline for court approval of its rehabilitation plan was March 4 this year, but the court first extended it to May 4 before granting an additional extension until this Friday. Bankruptcy law dictates that a rehabilitation scheme must receive appr

Jul 1, 2026By Jun Ji-hye

Will Homeplus liquidation decision be postponed again?

Policy

Market braces for pension fund's stock rebalancing

The National Pension Service (NPS) is expected to resume rebalancing its domestic equity portfolio on Wednesday after its allocation to local stocks climbed well above this year’s target, market analysts said Tuesday. They warn that the move could generate selling pressure of as much as 74 trillion won ($48 billion), adding to downside risks if it coincides with continued foreign investors’ selling of Korean equities. Data from Daishin Securities showed that domestic equities accounted for an estimated 30 percent of the NPS portfolio as of Friday, exceeding its 2026 target allocation of 20.8 percent by 9.2 percentage points. The pension fund periodically adjusts its asset mix to keep each asset class in line with its long-term strategic allocation. When an asset’s share moves too far above or below its target level, the NPS sells assets it holds in excess and increases exposure to those it is underweight in. By systematically rebalancing its portfolio, the fund locks in gains after strong market rallies while accumulating assets during market weakness, a strategy aimed at enhancing

Jun 30, 2026By Jun Ji-hye

Market braces for pension fund's stock rebalancing

Others

KOSPI edges higher after volatile session as tech stocks drive gains

KOSPI ended slightly higher on Tuesday after opening on a positive note, supported by a strong overnight rally in U.S. technology shares, but overall trading was marked by fluctuations. The index began the session up 22.05 points, or 0.26 percent, at 8,416.70, and briefly built on early momentum. However, it soon drifted into a narrow range as fluctuations persisted throughout the day before closing at 8,476.48, up 81.83 points, or 0.97 percent, from the previous session. Persistent foreign selling acted as a drag on broader upside momentum. In the United States, equities finished higher as a rebound in mega-cap tech stocks helped reverse recent weakness tied to valuation concerns. The Dow Jones Industrial Average climbed 0.59 percent, breaking above the 52,000 mark for the first time. The S&P 500 rose 1.18 percent, while the Nasdaq Composite advanced 2.07 percent. Semiconductor names led the advance, with Nvidia, Micron Technology and Broadcom fueling a 3.83 percent gain in the Philadelphia Semiconductor Index. Those positive moves provided some support for Korean chipmakers, though gain

Jun 30, 2026By Jun Ji-hye

KOSPI edges higher after volatile session as tech stocks drive gains

Policy

What's left to curb weak won?

Market attention is increasingly focused on what, if anything, can reverse the won’s slide as the won-dollar exchange rate has remained above the psychologically important 1,500 won level for more than a month despite easing geopolitical tensions, according to industry analysts, Monday. With heavy foreign selling of Korean equities and a stronger U.S. dollar continuing to weigh on the won, concerns are growing that the currency’s weakness may be becoming structural rather than merely reflecting a temporary external shock. The analysts said the key variables that will determine the won’s direction in the second half include whether the pressure of foreign investors’ selling eases, whether the Bank of Korea (BOK) raises its benchmark interest rate and whether an expected influx of U.S. dollars from SK hynix’s $30 billion American depositary receipt (ADR) listing on the Nasdaq next month materializes. The government has also stepped up microlevel measures, including closer monitoring of the offshore non-deliverable forward (NDF) market and illegal foreign exchange transactions. I

Jun 30, 2026By Jun Ji-hye

Others

KOSPI slides nearly 6% amid profit-taking in chips

KOSPI tumbled nearly 6 percent on Friday, as the index came under pressure from profit-taking after recent gains, in addition to a sharp overnight decline in U.S. equities. The benchmark index opened down 117.12 points, or 1.31 percent, at 8,813.18 and swung between gains and losses before closing at 8,411.21, down 519.09 points, or 5.81 percent, from the previous session. Heavy losses in large-cap technology stocks amplified the decline, with Samsung Electronics and SK hynix falling 5.29 percent and 8.36 percent, respectively. As selling intensified, pushing KOSPI down more than 8 percent from the previous day’s close for one minute, the Korea Exchange imposed a circuit breaker at 12:10 p.m., halting trading on the main board for 20 minutes. Earlier, a sidecar was triggered at around 11:12 a.m. after KOSPI 200 futures fell more than 5 percent, briefly curbing program-driven selling. The KOSPI circuit breaker was triggered for the fifth time this year, with nearly half of all 11 activations since the mechanism was introduced now occurring this year. In a rare sequence, the safeguard was

Jun 26, 2026By Jun Ji-hye

KOSPI slides nearly 6% amid profit-taking in chips

Others

SK hynix Nasdaq ADR listing seen as potential support for won amid prolonged weakness

SK hynix’s planned American depositary receipt (ADR) listing on the Nasdaq next month is drawing attention as a potential catalyst for easing the won’s prolonged weakness, with the won-dollar exchange rate having remained above the 1,500 won level for nearly a month. Market experts estimate the listing could bring in as much as $30 billion to Korea. Should those funds be converted into won, the resulting increase in dollar supply could help ease upward pressure on the exchange rate and support the local currency. The major chipmaker’s board approved the issuance of new shares for the ADR offering and the Nasdaq listing last Thursday. The ADRs are scheduled to begin trading on July 10, with the subscription and settlement set for July 14. ADRs allow shares of foreign companies to be traded on U.S. stock exchanges, improving access for global investors. SK hynix plans to issue as many as 17.79 million new shares, or about 2.5 percent of its outstanding stock, as part of the Nasdaq ADR listing. Based on the company’s closing share price before the board approved the transaction, the

Jun 26, 2026By Jun Ji-hye

SK hynix Nasdaq ADR listing seen as potential support for won amid prolonged weakness

Others

KOSPI reclaims 9,000 intraday as chip stocks surge on Micron earnings

KOSPI jumped more than 6 percent intraday Thursday to reclaim the 9,000 level, led by a surge in semiconductor stocks after U.S. memory chipmaker Micron Technology reported stronger-than-expected earnings. The benchmark index opened at 8,703.42, up 232.40 points, or 2.74 percent, from the previous day's close, and extended its gains to 9,000.88 by 2:24 p.m., rising 529.86 points, or 6.25 percent, from the previous session to reclaim the 9,000 mark. The index later surrendered part of its gains and closed at 8,930.30, up 459.28 points, or 5.42 percent, from the previous session. Reflecting strong buying momentum, a buy-side sidecar was triggered at 9:07 a.m., temporarily suspending program buy orders. The benchmark index drew support from Micron's better-than-expected quarterly results and upbeat guidance. Investor optimism toward the semiconductor sector further intensified ahead of second-quarter earnings announcements from Samsung Electronics and SK hynix. SK hynix's planned Nasdaq listing through American depositary receipts, tentatively scheduled for July 10, provided an additional ta

Jun 25, 2026By Jun Ji-hye

KOSPI reclaims 9,000 intraday as chip stocks surge on Micron earnings

Policy

Mixed messages on leveraged ETFs fuel investor confusion

Newly introduced single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix, originally promoted by the government as part of efforts to invigorate the domestic capital market, are drawing renewed scrutiny after the head of Korea's financial watchdog publicly criticized the products just a month after their launch, industry officials said Thursday. The apparent disconnect between the government's market-friendly agenda and the Financial Supervisory Service's (FSS) assessment has fueled concerns about policy consistency and investor confidence. At a press briefing Monday, FSS Gov. Lee Chan-jin expressed regret over not having pursued every possible measure to stop the introduction of the products. "The products were introduced under a tight timeline," he said. "The expected benefits have fallen short, while the associated risks and unintended consequences have proven more significant than anticipated." On May 27, brokerages launched 16 single-stock leveraged and inverse ETFs tracking Samsung Electronics and SK hynix, attracting a rapid influx of retail in

Jun 25, 2026By Jun Ji-hye

Mixed messages on leveraged ETFs fuel investor confusion

Companies

JoongAng Group's fate split between court, creditors

The fate of JTBC and other JoongAng Group affiliates now lies with the court amid their worsening liquidity problems, while the normalization of the group’s core company, JoongAng Ilbo, depends on its creditors, according to industry officials and analysts Wednesday. Five key affiliates, including broadcaster JTBC and holding company JoongAng Holdings, have recently filed for rehabilitation proceedings. Major newspaper JoongAng Ilbo has also formally applied for a workout with its lead creditor, Hana Bank, amid the group’s financial strain. The Seoul Bankruptcy Court held hearings with the representatives of the five companies on Tuesday, marking the start of a full-scale review of their rehabilitation cases. Executives who attended outlined the group’s debt exposure and proposed restructuring measures to the court. “I am sorry. We will fully comply with the court’s decision,” Hong Jeong-do, vice chairman of JoongAng Group, told reporters near the court. The group’s restructuring crisis began after JTBC defaulted on June 12, failing to repay 20.6 billion won ($13.4 million)

Jun 25, 2026By Jun Ji-hye

Jun Ji-hye

Read more

KB, Shinhan, Hana, Woori face mounting headwinds despite solid profits

Will Homeplus liquidation decision be postponed again?

Market braces for pension fund's stock rebalancing

KOSPI edges higher after volatile session as tech stocks drive gains

What's left to curb weak won?

KOSPI slides nearly 6% amid profit-taking in chips

SK hynix Nasdaq ADR listing seen as potential support for won amid prolonged weakness

KOSPI reclaims 9,000 intraday as chip stocks surge on Micron earnings

Mixed messages on leveraged ETFs fuel investor confusion

JoongAng Group's fate split between court, creditors

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