Daily Briefing · 2026-09-28

70 percent as foreigners net sold 4.4 trillion won, closing around the 6889 level as the 7000 line was broken. U.S. Treasury yields breached 5 percent on the 10-year for the first time in 19 years, with the 30-year also surpassing 5.5 percent, and concerns over prolonged high rates hit the domestic stock market. Korea's 3-year treasury bond yield also broke through 4.1 percent, marking its highest level since November 2022. As a result, large-cap semiconductor stocks such as Samsung Electronics and SK Hynix plunged over 5 percent, leading the index decline. Samsung Electronics is set to post a record-high third-quarter operating profit of 112 trillion won, but the positive earnings effect appears to have been offset by the rate shock. Meanwhile, the chairmen of Samsung and SK met with the CEO of Nvidia in New York to discuss next-generation HBM supply and AI infrastructure cooperation. Samsung Electro-Mechanics announced it will invest 4.27 trillion won in Sejong to expand production of AI semiconductor substrates. In the U.S., Nvidia's stock rose after the company announced a record $150 billion share buyback. In the real estate market, Seoul apartment prices rose for a 86th consecutive week, extending the longest streak on record, with more than half of transactions involving mid-to-low-priced properties of 1 billion won or less. In contrast, transaction prices in the Gangnam 3 districts fell sharply, and the polarization is expected to continue for more than 6 months. President Lee Jae-myung declared reforms to capital market systems aimed at resolving the "Korea discount" at the opening ceremony of Korea Premium Week. Bank of Korea Governor Shin Hyun-song held his first meeting with the heads of 16 commercial banks to discuss financial issues including household debt and stablecoins. Household loans at the five major banks have increased for three consecutive months in the range of 3 trillion to 4 trillion won, and lending capacity is expected to shrink significantly by year-end. The government has halted independent development of an AI foundation model and shifted its strategy to investment of 4.7 trillion won through a special purpose company. In the crypto asset market, Bitcoin surged 40 percent over three months, recovering to the $80,000 range. In the pharmaceutical and bio sector, a new bile duct cancer drug from HLB and Hanall Biopharma received U.S. FDA approval for the first time in 19 years, sending HLB shares to the daily upper limit. HMM plans to pursue a second public tender offer for its own shares instead of selling management control, moving forward with shareholder returns. The Financial Services Commission is reviewing stronger regulation of high-frequency trading, with related trading volume found to account for 58 percent of the total.