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Korea's stock market may be starting to shed its long-standing discount, but the Kospi's sharp rally has yet to translate into a market rerating, according to a senior Nomura economist. "We believe Korea is beginning to move beyond the traditional 'Korea discount,' but it is too early to call it a sustained premium," Park Jeong-woo, Nomura's senior economist for Korea and Taiwan, said in a recent interview with The Korea Herald. Despite the Kospi's strong gains, Park said valuations suggest inve
Foreign investors pulled sharply out of South Korean equities in July, with UK investors leading a massive stock sell-off even as US investors remained net buyers, data showed Friday. According to data released by the Financial Supervisory Service, foreign investors net sold 31.7 trillion ($22.9 billion) won worth of listed stocks in July, extending their net-selling streak to seven months. Foreign selling was concentrated on the country's main bourse Kospi, with investors net selling 30.8 trill
South Korea has put 36 listed companies on notice under tougher rules designed to accelerate the removal of penny stocks and financially weak firms. The Korea Exchange designated the stocks as administrative issues Wednesday after their share prices or market capitalizations fell below minimum listing requirements. Nine trade on the Kospi and 27 on the Kosdaq. Of the total, 30 were newly designated, while six companies already under administrative issue status received additional grounds for pos
BlackRock, the world's largest asset manager, has increased its stakes in Korea Aerospace Industries and battery materials maker EcoPro to more than 5 percent, becoming a major shareholder in both companies. The US asset manager now holds a 5.02 percent stake in KAI and a 5.01 percent stake in EcoPro, according to regulatory filings Tuesday. BlackRock had gradually accumulated shares in both companies over time. Its previous holdings stood at 4.95 percent in each company, and the latest purchase
Posco said Wednesday it has completed a partial early redemption of its US dollar-denominated bonds through a debt tender offer, becoming the first Korean company to do so. The steelmaker repurchased $360 million of its $1 billion in five-year, 5.75 percent fixed-rate bonds issued in 2023 and originally due in January 2028. The early redemption, funded with existing cash reserves, is expected to reduce debt and save about $31 million in interest expenses that would otherwise have accrued until t
SK hynix has priced its Nasdaq offering of American depositary receipts at $149 apiece, setting the deal at about $26.5 billion. The South Korean memory chipmaker said Friday it would offer 177.9 million ADRs, with each receipt representing one-tenth of a common share traded in Seoul. The offer price translates into a roughly 2.9 percent premium to SK hynix’s closing price of 2.19 million won ($1,450) on the Korean stock market Thursday. Large equity offerings are typically priced at a discount
KT&G said Friday that Capital Research and Management Company has raised its stake in the cigarette maker to 8.22 percent, extending a run of purchases that signal growing foreign confidence in its overseas growth. The US asset manager now holds about 8.53 million KT&G shares, up from 7.21 percent in June and 5.61 percent in May, according to regulatory filings. The latest disclosure shows Capital Group has added roughly 1 million shares since its previous filing. "The steady stake increases fro
South Korean investors have emerged as an increasingly influential force in US equities, boosting their holdings of American stocks to nearly $200 billion and becoming some of the world's most aggressive buyers of leading artificial intelligence companies. Yet despite their growing presence on Wall Street, the country's investors are still in the early stages of investing in US equities, according to Lee Young-gon, head of research at Toss Securities. "Korean retail investors have only been inve
Capital Group has upped its stake in KT&G to 7.21 percent as the latter continues to attract foreign investors. According to KT&G’s regulatory filing on Tuesday, Capital Research and Management Company, a wholly-owned investment arm of the Capital Group, acquired about 1.6 million extra shares of KT&G as of May 29. The additional investment came a little over three weeks after it had acquired a 5.61 percent stake in the Korean cigarette maker. Capital Group is one of the world's largest asset ma
Korea's investment industry is scrambling for a piece of SpaceX's blockbuster IPO, with asset managers awaiting final allocations ahead of Friday's listing while weighing whether the stock can live up to expectations. According to industry sources on Sunday, several Korean asset managers, including Korea Investment Management, participated in the institutional book-building process and are awaiting pricing night, when underwriters finalize the offering price and allocate shares. "We have to stay
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