Daily Briefing · 2026-10-19

Warnings emerged that a renewed sell-off could drive the index down to the 4800 level. Amid a surge in results from China's CXMT and controversy over exaggerated technology claims, Samsung Electronics and SK Hynix shares plummeted 18% to 24%. Related margin debt for stock purchases surged by 3.8 trillion won. The National Pension Service recorded a loss of 182 trillion won on its held shares over 100 days. Of this, 71.8% occurred in just two stocks, Samsung Electronics and SK Hynix, exposing portfolio concentration risk. The KOSPI crash put 33 trillion won in margin debt at risk of additional forced liquidation. Margin calls alone reached 300 billion won this month. President Lee Jae-myung referenced the issue of domestic stock market undervaluation and stated that market normalization measures would be reviewed soon through a comprehensive report. The head of the Financial Supervisory Service acknowledged, after being pressed on responsibility in the National Assembly, that the agency had been aware in advance of concerns over investor harm from single-stock leveraged ETFs but had accelerated the review process to meet the listing schedule, and expressed regret. KB Kookmin Bank was confirmed to have independently reduced its mortgage loan limit from 600 million won to 300 million won without prior consultation with regulators, in order to avoid penalties under the total volume regulation. SK Hynix's push to list its subsidiary Solidigm on the NASDAQ is facing delays in the FSS review process due to regulations on dual listings. The heads of the five major commercial banks apologized at the National Assembly's state affairs audit over the series of hacking incidents and pledged measures to prevent recurrence, including full compensation and expanded security investment. Shinhan Bank's leak of personal information for 25,729 individuals has cast uncertainty over an adjustment of 5.3 billion won in performance pay for CEO Jung Sang-hyouk and the approval of his third term. Hyundai Rotem acquired Hyundai Wia's defense business division for 358.386 billion won, unifying its ground weapons business from K2 tanks to main gun production. HD Hyundai successfully demonstrated autonomous navigation technology for an unmanned surface vessel developed with Anduril in the United States, advancing its push into the U.S. market. The Daewoo Kiwoom and CJ consortium acquired management control of JoongAng Ilbo at an acquisition price in the 500 billion won range, with expectations of a graduation from workout status within the year and synergies in content business. Domestic and international activist funds are demanding that Orion halt its acquisition of JoongAng Ilbo, protect minority shareholder interests, and expand shareholder returns. Korea Electric Power Corporation stated that raising electricity rates to reflect increases in international energy prices is necessary to resolve its 210 trillion won debt. Volkswagen is pursuing large-scale labor cost cuts, including cutting 100,000 jobs and freezing wages worldwide through 2030. JPMorgan pointed to a lack of competitiveness in Kakao's new AI service, Kanana Space, and issued a negative investment opinion on its growth prospects. Hanwha Engineering & Construction failed to pay 900 million won in land costs for the Daejeon Station area development project, putting the 1.3 trillion won project at risk of collapse.