Economy - The Korea Times

AI-fueled Samsung affiliates reshape KOSPI market cap rankings

The composition of KOSPI's largest companies has shifted markedly this year as investor enthusiasm for artificial intelligence (AI) propelled Samsung Group affiliates and semiconductor-related stocks higher, while secondary battery, shipbuilding and defense shares that dominated the market last year lost ground, according to the Korea Exchange Sunday. Among the top 10 KOSPI companies by market capitalization, excluding preferred shares, only Samsung Electronics, SK hynix and KB Financial Group maintained their rankings from the end of last year through Friday, holding the No. 1, No. 2 and No. 10 spots, respectively. The positions of the other seven companies changed within less than six months. Several Samsung affiliates entered the top 10 by market capitalization this year, led by Samsung Electro-Mechanics. Benefiting from the AI boom, the company saw its share price surge 589 percent as demand and prices for multilayer ceramic capacitors, a key component used in AI servers, climbed sharply. As a result, its market capitalization expanded from about 19 trillion won ($12 billion) to 131

Jun 8, 2026By Jun Ji-hye

AI-fueled Samsung affiliates reshape KOSPI market cap rankings

KOSPI pauses as Kosdaq surges on sector rotation

KOSPI fell nearly 2 percent on Thursday amid renewed tensions in the Middle East, while the previously underperforming Kosdaq rallied more than 2 percent. Investors appeared to rotate out of heavyweight KOSPI stocks and into smaller-cap names, with Kosdaq-listed machinery, equipment and manufacturing companies attracting much of the inflow, according to market analysts. The benchmark KOSPI opened at 8,623.82, down 177.67 points, or 2.02 percent, from the previous close, and ended the session at 8,639.41, down 162.08 points, or 1.84 percent, snapping a four-session winning streak that began on May 28. In the previous trading session on Tuesday, the index briefly surpassed the 8,900 mark for the first time on an intraday basis before closing in the 8,800 range. The decline was attributed to overnight losses on Wall Street, where all three major U.S. indexes fell as hopes for a breakthrough in ceasefire talks between Washington and Tehran faded. Growing geopolitical uncertainty pushed up both crude oil prices and government bond yields, prompting investors to reduce risk exposure. Reflecting

Jun 4, 2026By Jun Ji-hye

KOSPI pauses as Kosdaq surges on sector rotation

Gov't, BOK step up FX monitoring amid prolonged won slump

The government is intensifying its monitoring of the foreign exchange market and reinforcing stabilization measures, repeatedly warning that it stands ready to intervene against excessive one-sided volatility as the Korean won continues to weaken, officials said Thursday. The officials attributed the heightened exchange rate volatility to geopolitical tensions in the Middle East and profit-taking by foreign investors, who have turned into net sellers following a recent KOSPI rally. "With external uncertainties remaining high, we are keeping a close watch on market developments to curb growing anxiety and are prepared to act immediately against excessive one-way market moves," Finance Minister Koo Yun-cheol said during a market review meeting with the Bank of Korea (BOK) governor, the Financial Services Commission chairman and the Financial Supervisory Service governor. The warning came as the Korean currency remained under sustained pressure, with the won staying above the 1,500 won-per-dollar level for nearly three consecutive weeks. On Thursday, the won opened at 1,530.0 per dollar, we

Jun 4, 2026By Jun Ji-hye

Gov't, BOK step up FX monitoring amid prolonged won slump

OECD lifts Korea's 2026 growth forecast from 1.7% to 2.6% amid semiconductor surge

The OECD significantly upgraded its growth outlook for the Korean economy this year, raising the forecast to 2.6 percent from 1.7 percent on expectations that booming semiconductor exports will outweigh risks stemming from the Middle East conflict, according to the Ministry of Finance and Economy, Wednesday. The ministry said Korea recorded the largest upward revision among G20 economies in the OECD’s latest projections. After lowering Korea’s growth outlook to 1.7 percent from 2.1 percent in its March report over concerns about the Middle East conflict, the OECD has now reversed course with a substantially more optimistic assessment. The sharp upward revision appears to reflect Korea’s stronger-than-anticipated economic performance in the first quarter. According to preliminary data released by the Bank of Korea (BOK), real gross domestic product (GDP) expanded 1.7 percent from the previous quarter. The OECD’s new forecast is in line with the BOK’s latest projection announced last month and stands slightly above the Korea Development Institute’s 2.5 percent estimate. It rema

Jun 3, 2026By Jun Ji-hye

OECD lifts Korea's 2026 growth forecast from 1.7% to 2.6% amid semiconductor surge

Stocks linked to election candidates fall amid chip-driven rally

Shares linked to political figures moved largely downward and saw weak trading activity during this local election period, in contrast to previous election cycles when such stocks experienced sharp volatility, according to Korea Exchange data Wednesday. Market analysts attributed the subdued performance to the recent KOSPI rally led by Samsung Electronics and SK hynix, as optimism over expanding artificial intelligence (AI) data center investment and an improving semiconductor outlook shifted investor focus toward major technology stocks. Sampyo Cement and SJ Group, both regarded as stocks linked to ruling Democratic Party of Korea Seoul mayoral candidate Chong Won-o, fell 30 percent and 49 percent, respectively, over the past month as of Tuesday. The two firms were associated with Chong, the former head of Seoul’s Seongdong District, based on their ties to Seongsu-dong in the district. Stocks associated with main opposition People Power Party candidate Oh Se-hoon were no exception to the broader weakness. Chin Yang Industry, Chin Yang Poly and Chin Yang Chemical fell 18 percent, 26 p

Jun 3, 2026By Jun Ji-hye

Stocks linked to election candidates fall amid chip-driven rally

Samsung Electronics surge sends KOSPI above 8,800 intraday for 1st time

KOSPI soared above the 8,800 milestone in intraday trading for the first time in history on Monday, as Samsung Electronics spearheaded the rally with a more than 10 percent jump in its share price. The benchmark index opened 9.52 points, or 0.11 percent, higher at 8,485.67, immediately surpassing its previous record closing high of 8,476.15 set Friday. Buying momentum gathered pace throughout the session, carrying KOSPI past the 8,500 level before extending gains through the 8,600 and 8,700 marks and eventually breaching 8,800 intraday. Although it gave up part of its gains late in the session, the index still finished at a record closing high of 8,788.38, up 312.23 points, or 3.68 percent. As the market rally intensified, a buy-side sidecar was activated at around 11:30 a.m., amid heightened volatility in KOSPI200 futures. The mechanism is triggered when KOSPI200 futures rise at least 5 percent above the reference price and sustain the gain for one minute, temporarily suspending program buy orders for five minutes. The latest activation was the first in three trading sessions and marked

Jun 1, 2026By Jun Ji-hye

Samsung Electronics surge sends KOSPI above 8,800 intraday for 1st time

KOSPI closes near 8,500 as AI rally drives fresh high

KOSPI hit another record on Friday, topping 8,400 and moving closer to the 8,500 milestone as easing geopolitical concerns and renewed enthusiasm for artificial intelligence (AI)-related stocks lifted investor sentiment following overnight gains on Wall Street. The country's benchmark index opened 199.02 points, or 2.43 percent, higher than the previous session at 8,384.31, and maintained its upward momentum to close at 8,476.15, up 290.86 points, or 3.55 percent. Market sentiment strengthened after media reports said the United States had finalized working-level discussions on a memorandum of understanding aimed at ending the conflict with Iran and had begun circulating a draft among allies, including Israel. Hopes that ceasefire negotiations were nearing a final settlement also helped ease concerns over oil prices, which had recently weighed on global financial markets. U.S. West Texas Intermediate crude futures retreated to the $80-per-barrel range. On Wall Street, AI-focused cloud computing company Snowflake surged 36 percent after raising its annual sales forecast and securing a lon

May 29, 2026By Jun Ji-hye

KOSPI closes near 8,500 as AI rally drives fresh high

KOSPI retains 8,000 level despite renewed US-Iran conflict

The benchmark KOSPI dipped Thursday amid renewed U.S.-Iran tensions but held firm above 8,000 after a record-setting two-session rally that pushed the index beyond 8,200. KOSPI opened 62.97 points, or 0.77 percent, lower at 8,165.73 and finished the session at 8,185.29, down 43.41 points, or 0.53 percent, from the previous trading day. The index briefly tumbled to an intraday low of 7,841.01 amid aggressive selling by foreign investors of market heavyweights Samsung Electronics and SK hynix before recouping most of its losses on the back of strong retail buying. Investor sentiment deteriorated as renewed U.S.-Iran tensions overshadowed expectations for a ceasefire breakthrough. Concerns intensified after Iran’s Islamic Revolutionary Guard Corps was reported to have launched attacks on U.S. military bases in Kuwait in response to recent U.S. strikes in southern Iran. Seo Sang-young, an analyst at Mirae Asset Securities, said Asian stock markets, including Korea, extended losses as investors priced in escalating tensions between Washington and Tehran. “The latest developments drove inte

May 28, 2026By Jun Ji-hye

KOSPI retains 8,000 level despite renewed US-Iran conflict

Korea to require digital shareholder meetings for 210 top companies

Korea is moving to dismantle one of the most persistent inconveniences of its corporate governance calendar, mandating electronic shareholder meetings for the country’s largest listed companies in a sweeping regulatory overhaul aimed at expanding investor participation. The Ministry of Justice said Thursday that it has proposed amendments to the enforcement decree of the Commercial Act that will require electronic general meetings of shareholders for companies with total assets of at least 2 trillion won ($1.3 billion), covering 210 listed firms as of the end of 2025. Officials said the measure is designed to address long-standing criticism that traditional shareholder meetings, often concentrated on a single annual “peak season,” have effectively excluded retail and overseas investors who cannot travel to physical venues. Under the new rules, affected companies will be required to provide systems allowing shareholders to attend and vote remotely through the internet, effectively enabling participation “anytime, anywhere,” according to the ministry. The ministry said the reform

May 28, 2026By Lee Kyung-min

Korea to require digital shareholder meetings for 210 top companies

ContributionForeign trust reporting completes offshore asset transparency puzzle

After spending four decades building a successful precious metals export business, a man sought a way to transfer his wealth to his child without incurring taxes and ultimately turned to an offshore trust. By moving his assets into a trust abroad and naming his child as the beneficiary, the man believed the structure would shield the assets from gift taxation. He assumed that because the assets were legally held under the name of the trustee rather than himself or his child, they were safely out of sight. His peace of mind, however, was short-lived. By analyzing a wide range of information and data, including foreign exchange records, the National Tax Service (NTS) uncovered that his child was the true beneficiary, ultimately hitting the family with billions of won in back taxes. The man’s attempt to hide behind the veil of an offshore trust ultimately collapsed. Moving forward, this type of tax evasion will become significantly harder. Starting this year, a new foreign trust reporting system comes into full effect. This system was introduced specifically to close loopholes in trust ar

May 28, 2026By Lee Sung-jin

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