SK Hynix US Listing Plan Sparks Controversy, Calls Grow to Regulate Single-Stock Leveraged Products Amid Market Anxiety

Some analysts argue that the listing is unlikely to be simply for raising capital. Since SK Hynix is not currently in a position where it urgently needs cash, curiosity about the true reason for the listing is growing.

Skepticism prevails over why the company would push ahead with a US listing despite criticism at home. Some investors argue that the logic of raising money through a listing to return it to shareholders is out of step with what shareholders actually want.

In particular, critics point out that shareholders want long-term growth in corporate value, not a listing aimed at short-term cash returns. As SK Hynix's shareholder-return logic fails to persuade, doubts about the listing's true purpose and effects are growing.

The volatility amplified by single-stock leveraged products has calmed for now, but this is not seen as a fundamental solution. Regulations applied temporarily reduced volatility, but analysts say the market's underlying problems remain. They argue that the outsized influence large-cap stocks such as Samsung Electronics and SK Hynix have had on the overall market should not be overlooked.

Experts stress that beyond simply curbing single-stock leveraged products, the structural problems of the entire ETF market need to be examined and improved. With ETFs having amplified market volatility, calls for a comprehensive review of the related rules are growing.

Following regulation of single-stock leveraged products, calls for fundamental improvements to ETF rules are growing. Experts emphasize that this opportunity should be used to examine the ETF market as a whole and resolve its problems. Key proposed improvements include, first, limiting the weight of individual stocks or the combined weight of large-cap stocks to ease the indiscriminate impact on the market.

Second, some argue that funds should be given some room for active management so they can fulfill their intended role. Many have criticized that most current ETFs operate passively, leaving little differentiation between funds. A growing consensus holds that it is time to discuss institutional improvements to ETF rules.

Recently, semiconductor stocks have led a rally on the KOSPI, triggering a buy sidecar and reclaiming the 2,600 level. However, there is no clear explanation for the surge. Experts say they tried to analyze the reason starting yesterday but have struggled to find a clear, convincing answer.

A day when stock prices rise without a clear reason can actually create anxiety among investors. A sense of expectation that 'it could keep rising' coexists with worry about when a correction might come, and that uncertainty is spreading through the market. Such uncertainty could weigh negatively on investor sentiment.

The market currently leans toward maintaining a stable trend, and there is a hope that the CPI release will not disrupt that flow. Investors worry that an unexpected figure could create unnecessary noise in the market.

Commentator Park Si-dong described the market's mood as one that says, 'Please, no one make any noise, don't upset things, let's just move along quietly.' In other words, he expects that even if the result merely matches expectations, the market will relax and say, 'See? Everyone, let's just stay quiet.' This is seen as reflecting the market's fragile psychology.

Experts are divided over the direction of government bond yields. Some expect yields to continue their one-way climb in the short term, based on analysis that inflationary pressure and central bank tightening are likely to persist.

Commentator Park Si-dong, however, argues that a short-term reversal with bond yields falling quickly cannot be ruled out. He explains that if unexpected economic data or slight shifts in monetary policy occur, market expectations could shift rapidly and push yields lower. These differing views show that the future of bond yields remains uncertain.

Such divergent forecasts stem from the complex interplay of global economic conditions and monetary policy. Investors are urged to take a cautious approach amid this uncertainty.

Their results show that companies able to generate real revenue from AI continue to perform well. This suggests AI is creating tangible value across industries rather than being merely a theme.

Experts assess that, based on these results, the AI market is not a bubble but is growing solidly, and its scale is actually expanding. Such positive signals are expected to sustain investment in AI technology and energize the broader industry ecosystem.

"I'm not mentioning these two stocks as investment recommendations. It's that companies able to generate earnings from AI are still delivering very solid results, and they remain very positive about AI in their next earnings outlook, so I can say this market has not broken down; if anything, it's growing." — Lee Kwang-su, Director

Experts are divided over how AI-related industries are valued in the stock market. Some argue that the gap between current AI stock prices and earnings growth has grown too wide, raising concerns about a peak. Their analysis is that stock prices have risen too steeply relative to the pace of earnings growth.

Others, however, believe it is too early to call current prices a peak while earnings are still growing steadily. They argue that given the long-term growth potential of the AI industry, the current gap may be temporary and that further growth drivers remain. This difference of opinion reflects uncertainty about the future of the AI market and underscores the importance of diverse perspectives in formulating investment strategy.

This would nearly triple the AI share of Temasek's total investment portfolio, signaling that major global investors place very high value on AI's growth potential.

This decision by Temasek is interpreted as a strong signal that AI is establishing itself as a long-term growth driver rather than a passing trend. It is expected to serve as an important reference that prompts other investment institutions to consider expanding their AI investments. Temasek's bold increase in allocation is expected to have a positive effect across the AI industry.

Compared with the past, when volatility was so extreme that the market was called 'crazy,' the market is now stabilizing quickly. Experts stress that the direction of the volatility index matters more than its absolute level, and they view positively the fact that volatility is currently moving downward.

Lee Kwang-su predicts the volatility index could fall as far as the 40s, suggesting that investor anxiety is gradually easing and the market is increasingly likely to move within a predictable range. Lower volatility serves as an important indicator that could encourage restored investor sentiment and a return to long-term investing.

The analysis is that brokerages earned high profits because investors increased the frequency of buying and selling stocks and taking out loans. This has fueled a negative view that market instability is translating into brokerage revenue.

Lee Kwang-su said brokerage profits cannot be viewed as simply positive, calling them evidence of how volatile the Korean stock market was and how anxious investors were. He expressed the position that one cannot view brokerages profiting from market chaos with comfort.

In particular, critics point to frequent cases where high fees are collected while losses are passed on to investors.

Experts stress that securities businesses, like banking and finance, are licensed operations built on social infrastructure and trust, and argue that deep reflection on their social role is needed. A growing chorus says brokerages should do more than pursue profit, fulfilling their social responsibility by maintaining market soundness and protecting investors.

The incident was an unprecedented case in which, while paying dividends, Samsung Securities mistakenly entered 1,000 shares per share instead of 1,000 won per share, creating 'phantom shares' that did not actually exist.

The National Pension Service filed a damages lawsuit against Samsung Securities, and after a lengthy legal battle, the Supreme Court ultimately sided with the NPS. This ruling will be recorded as a clear example of how inadequate internal control systems at a brokerage can cause major confusion and losses in the actual financial market.

Experts stress that beyond the error itself, the fact that a nonexistent share could be traded in the market is the fundamental problem. Lee Kwang-su strongly criticized it, saying, "It should never have been sold. A share that exists in the world, a share that didn't exist was created, and an order should never have gone through."

The incident has raised doubts that domestic brokerages focus on external growth and profit expansion while neglecting internal controls and advanced systems. Voices are growing that the industry-wide self-correction is needed, not just a problem for Samsung Securities alone. The point is that restoring investor trust requires strengthening internal controls.

Lee Kwang-su pointed out that even though a large institution like the NPS brought the suit, it took eight years, and said that had an individual filed it, they might never have received a ruling at all.

This aligns with criticism that Korea's judicial system drains victims in many financial crimes, securities lawsuits, and various lawsuits against companies. Experts argue that such delayed justice undermines trust in financial markets and aggravates victims' suffering, and stress that improvements to the judiciary are urgently needed.

Voices are growing that the issue is not limited to Samsung Securities but calls for a fundamental review of the broader judicial system for financial matters. The perception is spreading that justice delayed is justice denied.

Korea Cosmax's operating profit surged 50% year on year, reaching 110 billion won, 16% above expectations. Following the results, Korea Cosmax's share price rose about 25% that day, extending its strength for a ninth consecutive month.

Silicon2 also reported solid results, adding momentum to the cosmetics rally. Experts attribute these strong earnings to the steady growth of the Korean cosmetics industry and its competitiveness in global markets. Earnings improvement and share price gains are expected to continue for cosmetics-related companies.

An offline lecture titled 'Stock Academy' will be held for investors struggling with the high volatility of the stock market. The lectures will take place on Saturday, August 22 in Ansan, Gyeonggi Province, and Sunday, August 23 in Magok, Gangseo, Seoul. The sessions are designed to help investors in a volatile market find the right investment direction and gain knowledge. Interested investors are expected to attend and gain insights from experts.