Daily Briefing · 2026-09-20

The won-dollar exchange rate has settled in the 1,380 won range and is on the verge of breaking through 1,400 won. Amid expectations of additional rate hikes by the US Federal Reserve and strong dollar pressure, the 20-year US Treasury yield also surged to 5.4 percent. The burden of foreign exchange losses on import and export companies is increasing significantly. In the stock market, share buybacks by Samsung Electronics and SK Hynix will be moved up to conclude in mid-October. As the 34.7 trillion won buyback is completed, concerns over downward pressure are growing as the demand-supply support that has sustained the stock market disappears. Tension is also spreading in the semiconductor industry. China's CXMT is expected to significantly increase production as it enters mass production of DRAM using an 11.95-nanometer process, heightening competitive pressure on domestic companies. To make matters worse, 338 violations of the Occupational Safety and Health Act were found at 27 domestic semiconductor companies, including SK Hynix, expanding financial burdens as well. International affairs are also increasing volatility. At the US-China summit, discussions on extending the tariff truce and negotiating rare earth supply raised expectations of easing trade disputes between the two countries, while Iran is maintaining its policy of blockading the Strait of Hormuz, raising concerns about rising global oil prices and logistics costs. In the global investment industry, news came that Warren Buffett stepped down from the chairmanship of Berkshire Hathaway after 56 years, handing over management control to his son Howard. There was also good news in domestic industry. Kia became the first Korean automaker to surpass 100,000 units in annual electric vehicle sales, and Hyundai Motor unveiled the fully redesigned new Tucson for the first time in 6 years, strengthening its product competitiveness. CJ Olive Young renewed its all-time high with a 21.5 percent share of the domestic beauty market in the first half of the year. In the real estate market, Seoul apartment jeonse prices surged 7.8 percent since the start of this year, with some areas in the Gangbuk region entering the 1 billion won range. Financial authorities took steps to support genuine end-user buyers by clearly presenting LTV exception criteria for first-time homebuyers. Indicators of the working-class economy remain grim. The delinquency rate among low-credit self-employed individuals surged four to five times over five years, approaching 45 percent, and Korea's income redistribution efficiency ranked 28th out of 29 OECD countries, remaining near the bottom. Of the 607.5 billion won in embezzlement losses at financial companies, the recovery rate stood at only 17 percent, revealing poor internal controls in the financial sector. To resolve the R&D workforce shortage, the government revived the military service exemption program for AI specialist researchers at large corporations for the first time in 14 years, deciding to assign 81 people to Samsung, LG, HD Hyundai, and others. Amid the warmth of the semiconductor boom, the average monthly salary of workers rose 3 percent, but the gap between large corporations and small and medium-sized enterprises widened to 220,000 won, raising concerns about wage polarization as well.