Daily Briefing · 2026-10-18

Unrealized losses of 131 trillion won on Samsung Electronics and SK Hynix accounted for more than 70% of the total loss. The KOSPI rebounded after a sharp decline over 7 trading days, but experts said it is too early to conclude this marks a trend reversal. The U.S. Philadelphia Semiconductor Index fell for 8 consecutive trading days, nearing its longest losing streak since 1996. Meanwhile, SK Hynix is projected to post a record-high third-quarter operating profit of 77 trillion won. Expanded HBM4 supply and rising DRAM prices drove the results. However, concerns over a DRAM oversupply in 2028 were also raised, as China's CXMT accelerates its technological catch-up and the global top 3 memory makers expand capacity simultaneously. SK Hynix's U.S. sub-subsidiary Solidigm is pursuing a listing on the U.S. stock market next year, with expectations of securing funding for HBM investment clashing with concerns over shareholder value erosion from dual listing. The Bank of Korea is expected to freeze the base rate at its Monetary Policy Board meeting on October 22. Korea's trade surplus with the U.S. is projected to exceed 134 trillion won, as pressure from the Trump administration for tariff hikes and the risk of trade retaliation grow. The International Monetary Fund forecast that Korea's potential growth rate will rebound for two consecutive years for the first time in 40 years. However, semiconductor-sector concentration and deepening polarization were pointed out as challenges. At HD Hyundai Heavy Industries, wage and collective bargaining negotiations broke down, escalating into a partial strike by all union members, and the union branch leader began a high-altitude sit-in protest. The stock price plunged 56%, from the 800,000-won range to the 350,000-won range. Apartment prices in Seoul's Gangnam and Seocho districts fell for 10 consecutive weeks, while small-sized apartments recorded new record-high prices, forming a dual price structure. On the outskirts of Gyeonggi Province, apartment prices surged due to eased land transaction permit regulations and expectations of semiconductor performance bonuses. Areas such as Byeongjeom in Hwaseong rose by more than 300 million won within 3 months. The average monthly interest expense for households on jeonse (lump-sum deposit lease) rose to 210,000 won, a 144% surge over 7 years. In the first half of the year, corporate capital income accounted for nearly 80% of the increase in national income, while wage earners' income growth accounted for only 17%, highlighting income inequality. SK Group confirmed the continued tenure of Choi Chang-won, chairman of the SUPEX Council, deciding to keep pursuing management stability. In the financial sector, the heads of the 5 major banks appeared at the National Assembly audit following a chain of hacking incidents, and personal information leaks also occurred successively at GOPAX, Korea Electric Power Corporation, and Hollys Coffee. Transactions flagged for voice phishing detection also increased 101.7% year-on-year, deepening the crisis of trust in the financial sector.