Economic Daily

• The KOSPI plunged 6.37% to close at 6,820.60 on the 16th, dropping 463.81 points in a single day. • The crash was driven by sharp declines in semiconductor giants Samsung Electronics and SK hynix, triggering record-frequency sidecars and circuit breakers this year. • While experts maintain that market fundamentals remain unchanged, the extreme volatility is causing significant investor fatigue.

• Hansung Enterprise and Monami, categorized as patriotic-theme stocks, experienced a significant surge in share prices despite a general slide in the KOSPI index. • The Korea Exchange issued trading warnings for both companies after their stocks spiked, following a period where they had previously faced delisting risks. • This volatility highlights a speculative trend where specific thematic stocks decouple from broader market downturns, potentially misleading investors.

• The KOSPI index plummeted 8.95% to fall below the 6,800 level, triggering market circuit breakers due to a "chip shock" and leverage concerns. • Major semiconductor giants Samsung Electronics and SK hynix saw significant price drops, driving the broader market decline. • Amidst the volatility, private equity firm Hahn & Co. has secured at least 2 trillion won in uninvested capital after selling assets like Hanon Systems and SK Shipping's VLCCs.

• The Korean stock market has scheduled several listing updates for July 9, including the addition of common shares for companies such as L&F and INNOSPACE. • In addition to the new listings, Mason Capital is set to implement a change in its share par value. • These updates are critical for foreign investors, analysts, and correspondents who monitor KOSPI and KOSDAQ sector movements to prepare for upcoming trading sessions.

• South Korea's digital industry revenue grew 9.3% year-on-year to reach 1,378 trillion won in 2024, fueled largely by the rapid adoption of artificial intelligence. • A government survey revealed that national digital maturity has increased to 75.4%, reflecting a broader systemic shift toward digitalization. • Cloud computing (52.0%), AI (43.5%), and big data (29.1%) emerged as the top three technologies developed or adopted by companies over the last three years.

• Shinhan Securities predicts the KOSPI will remain range-bound between 7,550 and 8,400, cautioning investors against expecting a rapid V-shaped recovery. • Market focus is shifting away from Samsung Electronics' recent strong earnings toward the long-term semiconductor chip cycle projected for 2027-2028. • The index's future trajectory will depend heavily on whether corporate earnings forecasts continue to be revised upward.

• South Korea is leveraging its world-class battery and power grid strengths to reduce global clean energy supply chain reliance on China. • The IEA projects that battery cell manufacturing outside the dominant supplier will increase from 16% of global capacity today to between 29% and 35% by 2030. • This growth is driven by Korean firms expanding in Europe and North America, new capacity in India and Southeast Asia, and Canada's emerging materials hub.

• The KOSPI experienced record-breaking volatility in the first half of 2025, with volatility interruption triggers reaching an all-time high of 29,357. • Market instability led to a 20-fold surge in stocks designated as "investment-risk," with the total number of such designations climbing to 43. • These unprecedented market swings highlight a period of extreme instability for South Korean equities and increased risk for individual investors.

• President Lee Jae-myung has reaffirmed his commitment to launching three "mega projects" focused on balanced regional development, inclusive sustainable growth, and strengthening the Republic of Korea. • Lee emphasized that achieving tangible results and performance is more critical to the nation's future than his own current approval ratings. • A primary goal of these initiatives is to restore hope and vitality for young people who have faced despair and a lack of opportunity.

• Toss Securities reports that the AI megatrend is only in its early stages, suggesting that investors look beyond semiconductor chips for growth. • The firm highlights critical infrastructure bottlenecks, specifically urging investment in power management and cooling systems to support AI scaling. • Market volatility is evident as DRAM prices hit a record $21 and the Korean won weakens to 1,554.9 per US dollar.