^KOSDAQ

Bank of Korea Keeps Base Rate Unchanged at 2.50%

Bank of Korea kept its base rate unchanged at 2.50% for the inter-meeting period amid high inflationary pressure and uncertainties surrounding developments in the Middle East, the central bank said in a Thursday release.Five members of the Monetary Policy Board backed keeping the base rate steady, while Chang Yongsung and Ryoo Sangdai opposed, calling for a 0.25% rate hike to 2.75%.The decision was in line with a poll conducted by Reuters, wherein 30 of ​32 economists anticipated the rate freeze decision. A survey conducted by Bloomberg also witnessed 22 out of 23 economists agreeing on a steady rate decision.Inflation pressures have risen due to the Middle East conflict, while stronger exports raised growth beyond earlier expectations, and financial stability risks remain.Consumer inflation rose to 2.6% in April on the jump in petroleum prices, while core inflation remained unchanged at 2.2%, and inflation expectations remained in the upper 2% range.The central bank expects inflationary pressure to build further amid higher oil prices and growing demand, raising inflation forecasts for this year to 2.7% for headline inflation and 2.4% for core inflation, both above its February projections.

South Korean Shares Open Lower After US Attack on Iran, Oil Gains

South Korean stocks opened lower on Thursday, as investors adopted a wait-and-watch approach amid a slowdown in the rally led by AI boom. Investors also took a moment to ponder over the increasing oil prices after the U.S. attacked Iran despite the ongoing peace talks.The benchmark Korea Composite Stock Price Index, or Kospi, fell 0.8%, or 62.97 points, to open at 8,165.73. The Kosdaq increased 0.2% to open at 1,135.84.Oil prices rose in early Asian trading after new U.S. strikes near Bandar Abbas and drone interceptions near the Strait of Hormuz raised supply concerns, with U.S. crude futures and Brent crude both gaining more than 2%.According to a U.S. official, the overnight strikes targeted an Iranian ground control station seen as a threat to U.S. forces and commercial shipping near the Strait of Hormuz, while four Iranian attack drones were also shot down.The strikes came hours after U.S. President Donald Trump rejected Iranian media reports that Tehran and Oman could jointly oversee shipping in the strategic waterway under a potential peace agreement.

Bank of Korea Holds Rate Steady as Expected

Market Chatter: Bank of Korea Expected to Hold Rate Steady at 2.50%: Bloomberg

South Korea's central bank is expected to hold the seven-day repurchase rate steady at 2.50% at its rate-setting meeting on Thursday, 22 out of the 23 economists projected in a Bloomberg survey.The economist who did not agree with a steady-rate policy this time expects a quarter-point hike, Bloomberg said in a Wednesday report.The central bank's first dot plot, introduced in February under former Governor Rhee Chang-yong, showed that policymakers expected rates to remain steady at 2.5% over the next six months.Investors are now watching for any upward shift in the median outlook under the new Governor Shin Hyun Song and newly appointed board member Kim Jin Ill. Ill's appointment is viewed as tilting the board toward a more hawkish stance after the exit of dovish member Shin Sung-hwan, the report said.The Bank of Korea has already warned that consumer prices could rise well above the 2.2% forecast issued in February, with Governor Shin cautioning that higher oil prices and a weaker currency may add to price pressures while cutting growth short, Bloomberg reported.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit New High Above 8,200 Points as Samsung, SK Hynix Rally

South Korean stocks climbed for a fourth straight session on Wednesday to a new record above the 8,200-point level, led by strong gains in Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660), which added nearly 3% and over 9% respectively.Investors also assessed renewed Middle East tensions alongside efforts toward a peace agreement between the U.S. and Iran.The Korea Composite Stock Price Index or Kospi jumped by 181.19 points, or 2.3%, to end at 8,228.7. The Kosdaq decreased by 39.39 points, or 3.4%, to close at 1,133.13.In economic news, the composite business sentiment index in all industries in South Korea increased four points to 98.9 in May from 94.9 in April, while the outlook for the next month added 3.7 points to 97.6, according to data released by the Bank of Korea on Wednesday.The latest print marked the highest in over three years.The seasonally adjusted composite business sentiment index for the manufacturing sector added 1.7 points to 100.8, while the outlook for the following month also added 2.3 points to 100.3, the central bank said.For the non-manufacturing sector, the seasonally adjusted composite business sentiment index increased 5.4 points to 97.5, while the outlook for the following month added 4.7 points to 95.9.In corporate news, Aamajority of Samsung Electronics' largest labor union approved a compensation agreement that will provide chip workers with average bonuses of about 513 million won, or $340,000 each, Bloomberg News reported Wednesday.Around 74% of union members backed the deal after weeks of negotiations.The move follows a similar bonus payout agreement reached in 2025 by competitor SK Hynix, though Samsung's actual bonus payments will largely depend on earnings and chip demand.In other news, Samsung Electronics also plans to invest $1.5 billion in Vietnam to build its first chip testing factory in the country, The Economic Times reported Wednesday, referring to a company document reviewed by Reuters.Construction has already begun at an industrial park about 60 kilometers north of the Vietnamese capital of Hanoi, with operations expected to start in November 2027.

South Korean Equities Open to New High on Chip Stocks Rally, Middle East Optimism

South Korean stocks opened at a new high on Wednesday, led by gains made by semiconductor shares as investors assessed renewed Middle East tensions alongside efforts toward a peace agreement between the U.S. and Iran.The benchmark Korea Composite Stock Price Index, or Kospi, rose 2.4%, or 194.61 points, to open at 8,242.12. The Kosdaq increased 0.1%, or 1.28 points, to open at 1,173.80.Shares of key market-moving chip stocks Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) added over 6% and 9% in recent trade.Iran said Tuesday that the U.S. violated a ceasefire by striking targets near the Strait of Hormuz, raising concerns over efforts to end the military conflict. Meanwhile, U.S. Secretary of State Marco Rubio said a deal to halt the war could take "a few days" despite earlier signs of progress in talks to restore shipping through the strategic waterway.

South Korea's Business Sentiment Improves to Over Three-Year High in May

The composite business sentiment index in all industries in South Korea increased four points to 98.9 in May from 94.9 in April, while the outlook for the next month added 3.7 points to 97.6, according to data released by the Bank of Korea on Wednesday.The latest print marked the highest in over three years.The seasonally adjusted composite business sentiment index for the manufacturing sector added 1.7 points to 100.8, while the outlook for the following month also added 2.3 points to 100.3, the central bank said.For the non-manufacturing sector, the seasonally adjusted composite business sentiment index increased 5.4 points to 97.5, while the outlook for the following month added 4.7 points to 95.9.Meanwhile, the economic sentiment index, a composite of the business survey and consumer survey indices, went up 5.8 points to 97.5.

Market Chatter: South Korea Manufacturing Confidence Rebounds for June

South Korea's manufacturing sentiment rebounded for June for the first time in three months, supported by strong optimism in the semiconductor sector despite the ongoing tensions in the Middle East, Yonhap News reported Tuesday, citing the Korea Institute for Industrial Economics & Trade.The professional survey index (PSI) for the manufacturing sector's business outlook increased to 107 in June from 95 in May. The PSI outlook had remained below the 100 mark for April and May before returning above 100 for June, the report said.A PSI reading above 100 indicates optimists outnumbering pessimists, while a reading below 100 signals the opposite.Confidence improved across the display, automobile, machinery, and bio-health sectors, while confidence in the shipbuilding and steel sectors declined to 100 and 122 for next month, respectively. Confidence in the mobile phone and textile sectors remained below the threshold at 80 and 93, respectively, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit New High Above 8,000 on Hopes of US-Iran Deal

South Korean stocks closed at a new high, above the 8,000-point level on Tuesday, as investors hoped for a U.S.-Iran agreement to reopen the Strait of Hormuz.The Korea Composite Stock Price Index or Kospi jumped by 199.8 points, or 2.6%, to end at 8,047.51. The Kosdaq also increased by 11.39 points, or 1%, to close at 1,172.52.Brent crude rose 2% to $98.26 a barrel on Tuesday after the U.S. carried out military operations in southern Iran and mixed signals from U.S. President Donald Trump on Washington-Tehran negotiations kept traders on edge, while U.S. WTI crude futures were down 5.1% at $91.73 per barrel.Despite the ongoing ceasefire and negotiations to permanently end the war, the U.S. targeted and attacked Iranian missile launch sites and boats around the Strait of Hormuz in what its military called "self-defense strikes."The strikes took place after Iranian foreign ministry spokesman Esmail Baqai said that although talks progressed with the U.S., a deal to end the conflict "is not imminent".In economic news, South Korea's central bank is expected to hold the base rate steady at 2.50% at its rate-setting meeting on May 28, 30 out of the 32 economists projected in a poll by Reuters.In addition, most of the economists expect one or more rate hikes by the end of this year as the U.S.-Iran war is projected to add inflationary pressures, Reuters said.The rate hike expectations come after inflation surpassed the central bank's 2% target, with April inflation hitting its highest level in nearly two years as the ongoing war in the Middle East and the blockade of the Strait of Hormuz kept oil prices above $100 a barrel for almost three months.The Bank of Korea is also expected to raise this year's growth forecast from 2% on Thursday, making the case strong for further rate hikes ahead.In corporate news, Sunic System (KOSDAQ:171090) secured a large-area deposition equipment contract for organic light-emitting diode deposition equipment from LG Display (KRX:034220), according to a filing with the Korea Exchange on Tuesday.The contract, the value of which was undisclosed, is valid till May 21, 2027.Shares of the electrical components manufacturer rose more than 1% at market close, while those of LG Display rose over 3%.

Market Chatter: Bank of Korea Expected to Hold Rate Steady at 2.50%

South Korea's central bank is expected to hold the base rate steady at 2.50% at its rate-setting meeting on May 28, 30 out of the 32 economists projected in a poll by Reuters.In addition, most of the economists expect one or more rate hikes by the end of this year as the U.S.-Iran war is projected to add inflationary pressures, Reuters said.The rate hike expectations come after inflation surpassed the central bank's 2% target, with April inflation hitting its highest level in nearly two years as the ongoing war in the Middle East and the blockade of the Strait of Hormuz kept oil prices above $100 a barrel for almost three months, it said.The Bank of Korea is also expected to raise this year's growth forecast from 2% on Thursday, making the case strong for further rate hikes ahead, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Stocks Hit Record High on Middle East Optimism

South Korean stocks opened at a new high on Tuesday, crossing the 8,000-point threshold as investors hoped for a U.S.-Iran agreement to reopen the Strait of Hormuz.The benchmark Korea Composite Stock Price Index, or Kospi, rose 2.8%, or 223.2 points, to open at 8,070.91. The Kosdaq increased 2.4%, or 28.15 points, to open at 1,189.28.Optimism over a possible end to the conflict in the Middle East led oil prices to decline sharply as well. Brent crude plunged 7% to $96, and U.S. West Texas Intermediate futures shed 6.5% to $90.Despite the ongoing ceasefire and negotiations to permanently end the war, the U.S. targeted and attacked Iranian missile launch sites and boats around the Strait of Hormuz in what its military called "self-defence strikes."The strikes took place after Iranian foreign ministry spokesman Esmail Baqai said that although talks progressed with the U.S., but a deal to end the conflict "is not imminent".The strikes were made on an area near Iran's southern port city of Bandar Abbas, home of a naval base that sits on the Strait of Hormuz.

Market Chatter: South Korea to Allow Overseas Investors to Directly Invest in ETFs

South Korea plans to allow overseas investors to directly invest in domestic exchange-traded funds (ETFs), in a bid to attract more foreign investment amid the country's primary stock market index's recent record rally, Yonhap News reported Sunday.The Financial Services Commission is pushing for regulatory revisions to give foreign investors direct access to the country's ETFs and plans to issue a prior notice in June. The measure could be introduced in the second half of 2026 if the Financial Services Commission and the finance ministry resolve withholding tax issues and brokerages conclude trading system upgrades, analysts said, according to the report.The Korea Composite Stock Price Index, or Kospi, has surged 82% so far this year, fueled by strong gains in the stocks of Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660) amid the AI boom worldwide, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: South Korea's Middle East Crude Imports Plunge 37% in April

South Korea's crude oil imports from the Middle East fell 37.3% to 4.49 million tons in April from a year earlier, amid the ongoing conflict between the U.S. and Iran, which has raised geopolitical tensions in the region, Yonhap News reported Sunday, citing data compiled by the Korea International Trade Association (KITA).Imports from the Middle East accounted for 53.1% of the country's total imports in the month. Total crude imports fell 22.8% to 8.46 million tons in April from a year earlier, the report said.Imports from South Korea's key supplier, Saudi Arabia, shed 37.6% on-year to 2.14 million tons in April, while combined U.S. crude imports added 13.4% to 2.14 million tons, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Dutch Ambassador Emphasizes Broader Chip Cooperation With South Korea Beyond ASML

The Netherlands-based chip equipment giant ASML supplies extreme ultraviolet (EUV) lithography machines to Samsung Electronics (KRX:005930) and SK Hynix (KRX:000660), however, the Netherlands' semiconductor ties with South Korea extend far beyond a single company, Peter van der Vliet, the Dutch ambassador in Seoul, told Nikkei Asia on Sunday.Dutch firms ASM International, BE Semiconductor Industries, and the research organization TNO are active partners of South Korean chipmakers, the report said.Vliet said that the two countries could deepen cooperation in next-generation chip manufacturing technologies, particularly in photonics, which uses light instead of electronics to process and transmit data in semiconductors, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: South Korean Government to Supply 90,000 Youth Rental Homes in Greater Seoul Area by 2027

South Korea plans to supply about 90,000 rental housing units for young people in the greater Seoul area by 2027 in a bid to ease housing shortages and enhance living conditions, Yonhap News reported Friday, citing Finance Minister Koo Yun-cheol.Out of the total, 66,000 units will be situated in regulated zones. The government will focus on non-apartment housing that can be supplied at a faster pace. These will comprise multifamily homes and compact studio units, the report said.The government also plans to expand modular construction methods to shorten project timelines and lower financial burdens on developers, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

South Korean Shares Rise Marginally on US-Iran Deal Optimism; Samsung Electronics Shares Decline Over 2%

South Korean stocks closed marginally higher on Friday, extending gains for a second straight session amid growing optimism over a potential resolution between the US and Iran.The Korea Composite Stock Price Index or Kospi edged up by 32.12 points, or 0.4%, to end at 7,847.71. The Kosdaq also increased by 55.16 points, or 5%, to close at 1,161.13.In economic news, South Korea's composite consumer sentiment index rose to 106.1 in May from 99.2 in April, according to data released by the Bank of Korea on Friday. A reading above 100 indicates an improved outlook, while a reading below 100 suggests pessimism.Sentiment toward current living standards rose two points to 93, while sentiment on the future outlook gained five points to 97.The outlook for future household income was up two points to 100, while the sentiment for future household spending also rose by two points to 110.In other economic news, newly issued household loans per borrower in South Korea were up by 990,000 won to hit 35.42 million won in the first quarter from the previous quarter, while average mortgage loans increased by 16.53 million won to 229.39 million won, the Bank of Korea said in a Friday release.Loan growth was particularly notable among borrowers in their 30s, residents of the Seoul metropolitan area, borrowers taking loans from non-bank financial institutions, and mortgage loan holders.In corporate news, Samsung Electronics (KRX:005930) struck a last-minute deal with its labor union, and as a result of the agreement, it will distribute about 40 trillion won among its 78,000 employees in the semiconductors division.Under the proposed terms, Samsung employees could receive average bonuses of about 513 million won, the news agency reported, based on its calculations using the projected 2026 operating profit.The company reported average employee pay of 158 million won last year.Under the tentative deal, which still requires labor union approval, the chipmaker will distribute 10.5% of profit as stock bonuses and an additional 1.5% in cash. The bonus program will run annually for 10 years, given that profit targets are achieved. Analysts estimate Samsung's operating profit could surge sevenfold to around 333 trillion won in 2026.Shares of Samsung Electronics fell more than 2% at market close.

South Korean Household, Mortgage Loans Increase in Q1

Newly issued household loans per borrower in South Korea were up by 990,000 won to hit 35.42 million won in the first quarter from the previous quarter, while average mortgage loans increased by 16.53 million won to 229.39 million won, the Bank of Korea said in a Friday release.Loan growth was particularly notable among borrowers in their 30s, residents of the Seoul metropolitan area, borrowers taking loans from non-bank financial institutions, and mortgage loan holders, the release said.As of March-end, the average household loan balance per borrower was 97.40 million won, while average mortgage balances rose by 1.79 million won to 160.06 million won in Q1 from the same period last year.

South Korea Consumer Confidence Bounces Back to Optimism

South Korea's composite consumer sentiment index rose to 106.1 in May from 99.2 in April, according to data released by the Bank of Korea on Friday.A reading above 100 indicates an improved outlook, while a reading below 100 suggests pessimism.Sentiment toward current living standards rose two points to 93, while sentiment on the future outlook gained five points to 97.The outlook for future household income was up two points to 100, while the sentiment for future household spending also rose by two points to 110.Optimism regarding current local economic conditions increased by 15 points to 83, and the reading for future domestic economic conditions was 14 points higher at 93.

South Korean Shares Open Higher on Overnight Wall Street Gains, Middle East Conflict End Optimism

South Korean stocks opened higher on Friday, extending the previous session's strong rally due to technology stock gains and tracking overnight advances on Wall Street amid increasing hopes for a resolution between the U.S. and Iran.The benchmark Korea Composite Stock Price Index, or Kospi, rose 0.7%, or 57.53 points, to open at 7,873.12. The Kosdaq also increased 1.2%, or 13.46 points, to open at 1,119.43.Despite the optimism, U.S. crude futures rose more than $1 in early Friday trading as investors somewhat remained skeptical about the possibilities of a breakthrough in the ongoing peace talks. U.S. West Texas Intermediate crude climbed as high as $98 a barrel and was last up $1.20, or 1.3%, at $97.55 as of 22:28 GMT, after declining about 2% in the previous session to its lowest close in nearly two weeks.U.S. Secretary of State Marco Rubio said there were "some good signs" emerging from mediated peace talks with Iran, but warned that President Donald Trump has made clear the U.S. has "other options" if negotiations fail. An undisclosed "senior Iranian source" told Reuters that no peace agreement has been reached with the U.S., but the differences have definitely been narrowed.Meanwhile, Iran's Islamic Revolutionary Guard Corps said 31 ships passed through the Strait of Hormuz over the past 24 hours under its coordination.

Market Chatter: Seoul Apartment Prices Mark Fastest Increase Since January-End Ahead of Bank of Korea Policy Meet

Apartment prices in Seoul increased 0.31% in the week through May 18, marking the fastest weekly increase since Jan. 26, ahead of the Bank of Korea's next rate-setting meeting on May 28, Bloomberg reported Thursday, citing data released Thursday by the Korea Real Estate Board (KREB).Governor Shin Hyun Song will chair the meeting, which is his first rate policy meeting since taking office in April, the report said.Gains in the week through May 18 marked the 68th straight week of gains. Apartment prices across the country also edged up at a marginally faster rate of 0.07%, the report said.Buyer wait-and-see sentiment was higher across some districts, but the cost-driving factor across other areas of Seoul was the strong demand for redevelopment projects and apartments with strong residential conditions, the report said, citing the KREB.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)