Korean Financial Market New for?November 24, 2023

1. Korean banks are lowering their home mortgage loan interest rates to around 3% per year. Following KB Kookmin Bank, Kakao Bank also lowered the lowest interest rate to 3.96% per annum. This is due to the decline in bank bond interest rates this month due to expectations for the end of interest rate hikes in the U.S., but some analysts say that banks are lowering interest rates one after another due to pressure from financial authorities to support people's livelihoods. https://n.news.naver.com/article/366/0000949932?sid=101
2. Contrary to high expectations for mergers and acquisitions in Korea's insurance industry this year, no deals were actually concluded. Quite a few insurance companies were put up for sale, but in a situation where the number of underwriters was limited and there were many variables such as the application of a new accounting system, it was difficult to find a contact point between buyers and sellers. Insurance companies currently for sale or potentially for sale in the market include KDB Life Insurance, ABL Life Insurance, MG Insurance, Lotte Non-life Insurance, and Tongyang Life Insurance. https://theviewers.co.kr/View.aspx?No=3021583
3. Hyundai Motor Company and Kia Motors sold 89,551 units in Europe in October, a 9.3% increase compared to the same period last year. Hyundai sold 43,223 units, up 9.4%, and Kia sold 46,328 units, up 9.2%. The European market share was 8.6%, down 0.4 percentage points from the previous year, with Hyundai Motors and Kia recording shares of 4.2% and 4.5%, respectively. https://news.einfomax.co.kr/news/articleView.html?idxno=4289019
4. A Korean media outlet reported that the government plans to allow private companies to participate in transmission line projects. Until now, KEPCO has built the power grid by directly constructing transmission and substation facilities. However, as KEPCO is suffering from a deficit and the amount of electricity needed in the metropolitan area has recently increased, it appears that it has decided that it is necessary to entrust a certain part of it to a private company in order to build the power grid in the right place. https://biz.chosun.com/stock/market_trend/2023/11/24/3E4NATQNJFCNFH4PCCBC4DV4MU/
5. On the 23rd, Samsung Electronics took first place in the ranking of the 'World's 10 Most Innovative Companies' selected by the US foreign exchange trading platform 'forex.com'. Samsung Electronics received 9.25 points out of 10, thanks to the largest number of new patent applications last year and the high proportion of R&D investment compared to sales. https://www.theguru.co.kr/news/article.html?no=62973
6. According to Jeju Province and the industry, as of the end of October this year, the total sales of foreign casinos in the province were 199.5 billion won and are expected to exceed 200 billion won this year. Although it is below the level of 2018, which recorded the highest sales ever at 510 billion won, expectations are growing that it can recover to pre-coronavirus levels. However, it was found that Jeju City's Dream Tower Resort complex accounted for more than 70% of total sales. https://www.jibs.co.kr/news/replay/viewNewsReplayDetail/2023112319293639764?feed=na
7. Hankook Tire decided to invest approximately 790 billion won to expand TBR at its Rácalmás plant in Hungary. This was announced directly by Hungarian Foreign Minister Peter Szijjártó. He said, “With this expansion, the Lacalmas plant will produce an additional 800,000 tires per year,” and added, “The job creation effect of this investment is expected to be 450.” https://www.theguru.co.kr/news/article.html?no=63032
8. HD Hyundai Electric announced on the 24th that it recently signed a supply contract for power equipment such as transformers, high-voltage circuit breakers, and reactors worth a total of KRW 94.3 billion with a Saudi-based EPC specialist company. https://biz.heraldcorp.com/view.php?ud=20231124000165
9. It is predicted that the number of countries where Samsung Electronics smartphones rank first this year may decrease from 46 last year to 42. Although the number of countries will decrease, it is predicted that India, which ranks second in smartphone shipments, may rise to first place.https://biz.chosun.com/it-science/ict/2023/11/23/4YYOERDPPNC3FFUSMGHGQ7B3EQ/
10. Individual investors are flowing back into the stock market. The trading volume of KOSPI and KOSDAQ, which had been stagnant, increased to the level of last month, and deposits also gradually increased after hitting a low point. Securities analysts interpret that concerns about high interest rates in the U.S. are fading, creating an environment in which to expect a ‘Santa rally’ in December.https://n.news.naver.com/article/018/0005625220?sid=101

Please click the subscribe button so you don't miss an issue.

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this Newsletter constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments.