KOSDAQ Extends Rally to Six Sessions; Earnings Key to Breaking 1,200

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an 'AI-based customized news recommendation and summary service' developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. KOSDAQ Rallies for Six Sessions on Revived Sentiment…Will It Top 1,200?

- Key Summary: The KOSDAQ index closed at 1,170.04 on the 17th, rising for six consecutive sessions since April 9 (1,076.00). Risk appetite recovered on expectations of a U.S.-Iran ceasefire agreement, while retail investors led the supply-demand dynamics by net buying 1.2619 trillion won this month alone. Net assets of KOSDAQ active ETFs also grew rapidly, with KoAct at 1.0043 trillion won and TIME at 498.3 billion won. Analysts say further gains will require earnings improvements from leading sectors and expanded research coverage on KOSDAQ companies.

2. K Bank, Down 25% Since Listing, Gets First Buy Report

- Key Summary: With K Bank (279570) shares closing at 6,310 won on the 17th—about 25% below its IPO price of 8,300 won—Samsung Securities (016360) became the first domestic brokerage to issue a buy rating with a target price of 9,000 won. Analysts say profitability concerns are excessively reflected in the share price, as NIM plunged from 2.4% in 2023 to 1.4% in 2025. Korea Investment & Securities also highlighted the bank's potential to expand into a digital asset specialty bank offering services such as stablecoins, based on its partnership with Upbit. A valuation reassessment becomes possible when related policies such as the Digital Asset Basic Act take full effect, analysts said.

3. "Doubling Output Without Expansion"…Capital Region Manufacturing Shifts to Relocation

- Key Summary: The advanced manufacturing production index in the capital region more than doubled from 91.1 in 2020 to 204.2 in 2024, yet the number of businesses and employees barely changed over the same period. Following automation and higher value-added production, companies are increasingly adopting a "functional relocation" strategy, placing R&D in Seoul and Pangyo while locating mass production in industrial complexes in Incheon, Yongin and Ansan. SDT, MK Electron (033160) and Synustek have separated their headquarters and R&D from production bases, a strategy similar to TSMC's approach of keeping R&D in Taiwan while distributing mass production overseas. As the manufacturing restructuring accelerates, interest is growing in companies located in R&D hubs such as Pangyo and Gwacheon, and in industrial complexes in the capital region.

4. Value-Up Funds Race Ahead…Defensive Products Fall Out of Favor

- Key Summary: Combined assets of 22 value-up funds reached 1.2973 trillion won, with 556.7 billion won added this year alone, while the 58.19% return overwhelmed the KOSPI (46.93%), Samsung Group funds (49.06%) and value stock funds (37.53%). In contrast, assets in target-conversion funds decreased by 1.2656 trillion won since the start of the year, and monthly payment funds sharply reversed with a 389.4 billion won decline this year. The waning popularity of defensive products even amid volatility signals that investors' risk perception and fund management approach have shifted, analysts said.

5. Hyundai Motor (005380), Kia (000270) Post Record First-Quarter Sales in India

- Key Summary: Combined first-quarter sales by Hyundai Motor and Kia in India reached 250,903 units, topping 250,000 for the first time. Hyundai Motor sold 166,578 units, up 8.5% from a year earlier, reclaiming the No. 2 spot with a 12.5% market share, while Kia also grew 11.6% to 84,325 units. Cumulative RV sales from both companies reached 4.034 million units, surpassing 4 million last month, with expectations rising for the combined sales of 1 million units in India this year. The companies are accelerating local investment, including expanding production capacity to 250,000 units by 2028 through the acquisition of GM's Pune plant.

6. HD Hyundai "Counters China"…Expands Shipbuilding Bases in India and Vietnam

- Key Summary: HD Hyundai is simultaneously pursuing a new shipyard in India's Tamil Nadu state (estimated investment of around $4 billion) and expanded construction capacity in Vietnam (from the current 15 vessels to 23 by 2030) to close the commercial vessel market share gap with China. In 2007, Korea and China held order backlog shares of 31% and 27%, respectively (on a CGT basis), but the positions have now reversed to 20% and 62%. Strengthening Southeast Asian production bases is expected to enable cost savings of 15-20% or more compared to Korea. Domestic shipyards are focusing on securing an edge in high-value eco-friendly vessel technologies, including the successful construction of the world's first mid-size gas carrier with an ammonia dual-fuel engine.