The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Nov. 11-15.
Samsung Electronics stock tumbles to 40,000-won range
Samsung Electronics’ stock closed at 49,900 won on Nov. 14, down 1.38% from the previous day. This marks the first time in 1,614 days since June 15, 2020, that its stock price fell into the 40,000-won range. After closing at 57,500 won on Nov. 7, the stock has declined for five consecutive trading days. Its market capitalization also dropped to 298 trillion won, falling below the 300 trillion mark, largely due to foreign investors offloading about 462 billion won worth of shares over 12 consecutive days.
Samsung Electronics’ stock decline is mainly attributed to sluggish market conditions. Concerns that U.S. President-elect Donald Trump may reduce semiconductor support have also contributed, with SK Hynix also falling 5.41% to close at 173,000 won. Doubts about Samsung’s high-bandwidth memory (HBM) technology gap have further fueled the company’s stock price decline.
S. Korean investors shift to crypto amid stock market slump
South Korean stock market investors are flocking to the cryptocurrency market in response to poor earnings and corporate decisions that neglect shareholders. According to cryptocurrency information site CoinMarketCap, the average 24-hour trading volume across the top five domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) has recently exceeded 30 trillion won, 1.5 times the size of the domestic stock market, even considering the time differences in trading hours. In contrast, the domestic stock market is struggling, with Samsung Electronics dropping to the 40,000-won level for the first time in four years and five months.
Korea Zinc withdraws $1.9 bn rights offering amid leadership dispute
Korea Zinc has decided to cancel its 2.5 trillion won ($1.9 billion) rights offering amid an ongoing management dispute with Youngpoong and MBK Partners. The decision follows criticism that Chairman Choi Yun-beom aimed to secure his control through the issuance, which led to a significant drop in stock prices. In response, Choi announced his resignation as board chairman, taking responsibility for the controversy.
S. Korea’s ruling party seeks 52-hour workweek exemption for chip R&D
South Korea’s ruling People Power Party introduced a “Special Semiconductor Law” in the National Assembly on Nov. 11, aiming to exempt semiconductor R&D personnel from the 52-hour workweek and provide direct government subsidies to semiconductor firms. This bill is a response to global competition, with countries like the U.S. and Japan offering substantial subsidies to attract semiconductor companies.
Kim Sang-hoon, head of the PPP’s policy committee, said on Nov. 10 that the bill would provide financial support similar to U.S. subsidies but would not include the industry’s request for higher tax credits on R&D facilities and equipment. The ruling party plans to discuss the bill with the opposition. The main opposition Democratic Party of Korea supports subsidies but opposes the exemption for R&D workers from the 52-hour workweek.
Samsung boosts U.S. hiring drive for senior foundry engineers in Texas
Samsung Electronics is ramping up its recruitment efforts to address a shortage of specialized talent for its new foundry plant under construction in Taylor, Texas. The company is actively targeting seasoned engineers and managers, particularly those with experience in the foundry sector and advanced degrees. Samsung has been investing $17 billion (about 23 trillion won) since 2022 in the Taylor facility.
LTI Korea plans to establish graduate school to nurture literary translators
Following Han Kang’s Nobel Prize in Literature, discussions on supporting Korean literature have gained momentum. The Literature Translation Institute of Korea (LTI Korea) on Nov. 11 announced plans to make Korean literature “a new pillar of world literature.” Since its founding in 1996, LTI Korea has supported 2,186 translations across 44 languages.
LTI Korea President Chon Soo-young, marking her 100th day in office, emphasized key initiatives including shaping global discussions on Korean literature, strengthening international literary networks, and establishing a graduate school for translation. While LTI Korea currently runs a non-degree translation academy, it plans to establish a graduate program to train top-tier translators. A bill to amend the Literature Promotion Act, which includes this proposal, is currently under review in the National Assembly.
HD Hyundai promotes Chung Ki-sun to senior vice chairman
HD Hyundai promoted Chung Ki-sun to senior vice chairman as part of an executive reshuffle announced on Nov. 14. Chung, grandson of Hyundai Group founder Chung Ju-yung and eldest son of Asan Foundation Honorary Chairman Chung Mong-joon, has been co-leading HD Hyundai with Chairman Kwon Oh-gap. After being promoted from president to vice chairman last November, Chung has now advanced to senior vice chairman.
The reshuffle also elevated Cho Seok, president of HD Hyundai Electric, to vice chairman. Other key appointments include Kim Jae-eul, vice president and head of shipbuilding at HD Hyundai Heavy Industries, as the new president of HD Hyundai Samho Heavy Industries. Song Myung-jun, vice president of financial support at HD Hyundai, was named president of HD Hyundai Oilbank, serving as co-CEO alongside Jeong Im-joo, who heads safety and production. Kim Young-ki, vice president of HD Hyundai Electric, has been promoted to president.
One minute, that’s all it takes to know about Korea. Click here ☞ https://page.stibee.com/subscriptions/305897
