KOSPI Hits Record High, ShiftUp Stock Plummets — Retail Investors in Tears

KOSPI Surges Past 4,693 Points During Trading

On the 13th, the KOSPI index soared to a midday high of 4,693.07 points, setting a new all-time high. Over the past year, the KOSPI has surged by 88.49%, showing strong bullish momentum.

Major institutional investors led the rally by heavily buying key KOSPI stocks. Sectors like semiconductors, automobiles, and robotics are currently attracting a lot of attention.

ShiftUp Stock Falls for 7 Consecutive Trading Days

Game developer ShiftUp saw its stock price drop to its lowest since listing, sparking frustration among shareholders. On the 13th, the closing price was $25.50, down 50 cents from the previous day.

It’s been falling for 7 straight trading days, hitting new lows and contrasting sharply with the overall KOSPI rise. Many retail investors are now saying, “I knew I shouldn’t have bought this,” expressing regret and disappointment.

Concerns Over ShiftUp’s Earnings and Shareholder Returns

This year, analysts expect ShiftUp’s annual operating profit to reach around $1.02 billion, a decrease of about 27.8% compared to last year. The lack of new game releases has dampened hopes for a quick earnings rebound.

Currently, the company's market cap stands at approximately $16 billion, significantly lower than NCSoft’s $40 billion. Shareholders are demanding better value, and the company has announced it’s reviewing plans to boost shareholder returns.

Major Headlines from The Maeil Business Newspaper

On the front page of the 13th, headlines covered topics like wage hikes and Japan-Korea talks. The labor union proposed a 3% wage increase for this year, but management is discussing a broader raise that includes regular bonuses.

There’s also speculation about potential price hikes for Japanese seafood following President Lee Jae-myung’s visit to Japan. Additionally, reports surfaced that former Minister Lee Sang-min was sentenced to 15 years in prison.

• Tax debt management: The government announced it reduced total unpaid taxes from $102 billion (2021-2023) to $100 billion.
• Controversy over media blackout orders: Related to incidents during the 2021 emergency martial law period.

Weak Performance of Sector-Based ETFs

Out of 69 themed ETFs, only 32 have outperformed the KOSPI. The recent trend of “late-stage” listings has been blamed for some of the underperformance.

Investors are being warned about the risks of sector-focused ETFs, especially those heavily concentrated in specific industries.

Outlook for Secondary Batteries and Semiconductors

Institutional investors are actively buying stocks in the secondary battery, automotive, and robotics sectors. Semiconductors are expected to remain strong through the first quarter, driven by solid demand.

With around $75 billion in cash waiting to be invested, buying pressure is likely to continue even during market corrections.