KOSPI Closes at 4,723 Points, Driven by Hanwha Split and Japan-Korea Economic Talks

KOSPI Rises 0.65%, Closing at 4,723

On the 14th, the Korea Composite Stock Price Index (KOSPI) edged higher, crossing the 4,700 mark early in the day and fluctuating throughout the session before closing at 4,723.10. Despite profit-taking by individual investors and foreign traders, institutional buying kept the index supported.

Hanwha drew attention with its announcement of a corporate split. The company plans to retain its defense, energy, and financial units while spinning off its tech and lifestyle businesses into a new holding company.

Hanwha Shares Jump Over 20% on Split Announcement

Immediately after the news, Hanwha and Hanwha Galleria shares surged by more than 20%. Hanwha Life Insurance also rose by around 10%.

The split clarified the value of each business segment, attracting strong buying interest. Investors see this restructuring as a positive signal for future growth.

• Hanwha: Focus on defense, energy, and finance
• New holding company: Integrates tech and lifestyle divisions
• Market reaction: Hanwha Galleria +20%, Hanwha Life +10%

Japan-Korea Summit Reaches Agreement on Economic and Security Cooperation

The leaders of South Korea and Japan discussed comprehensive cooperation in areas like economics, security, and science & technology. They also took initial steps toward tax and diplomatic collaboration.

This milestone, highlighted on the front page of the Korea Economic Daily under the keyword 'Kongjjak,' marks the fifth summit and symbolizes a significant step toward improved bilateral relations.

Won-Dollar Exchange Rate Closes at 1,473 Won

The won-dollar exchange rate rebounded from last month’s 1,429 won, ending yesterday at 1,473.7 won. The trend of continuous appreciation continues.

Market participants are closely watching the currency market’s volatility, with many speculating on further gains.

Biotech Companies Unveil Differentiated Growth Strategies

At the JPMorgan Healthcare Conference, Samsung Biologics and Celltrion announced their strategic plans. Samsung is focusing on contract development and manufacturing (CDMO), while Celltrion is emphasizing new drug development.

Samsung Biologics announced increased outsourcing of production, and Celltrion revealed a roadmap for 16 candidate drugs. Their simultaneous presentations boosted Korea’s biotech profile on the global stage.

Stock Market Funds Flow into Real Estate, Around $2 Billion Moving Out of Stocks

As the KOSPI rises, some of the profit-taking money from stocks is flowing into Seoul’s apartment market. An estimated around 2 trillion won ($1.7 billion) is being redirected.

Investors are cashing out gains from stocks and shifting funds into real estate, signaling a potential shift in market dynamics. Keep an eye on how this impacts supply and demand in the property sector.