**AI PRISM* Customized Economic Briefing**
*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.*
[Key Issue Briefing]
■ Blockchain Remittance: Hana Financial Group has successfully completed a proof-of-concept (PoC) for foreign currency remittance using Dunamu's blockchain network 'GIWA' chain. Industry experts project that current counter-based fees of 18,000 won for a $1,000 transfer could drop to around 1,000 won or even tens of won.
■ Commercial Act Revision Value-up: The third Commercial Act revision bill, centered on mandatory treasury stock retirement, passed the National Assembly, marking a new turning point for shareholder return policies in the domestic stock market. The 'PLUS Treasury Stock Buyback High Dividend' ETF has attracted investor attention with a 32.6% return since the beginning of the year.
■ Yen Weakness and Herd Behavior Warnings: As the yen has fallen to the 920 won level against the won from its April 2024 high, Korean retail investors in Japan have net sold $45.98 million worth of U.S. Treasury ETF (2621) this month alone. Meanwhile, following KOSPI's breakthrough above 6,000, the proportion of securities firm downgrade reports has shrunk to 9.3%, prompting warnings about excessive market optimism.
[Financial Product Investor News]
1. Hana Financial Conducts Foreign Remittance via Blockchain... Fee Revolution Coming
Hana Financial Group has completed a proof-of-concept for foreign currency remittance using blockchain technology in partnership with Dunamu and will establish new foreign remittance infrastructure by the third quarter of this year.
The verification confirmed that replacing the existing SWIFT method with blockchain messaging based on Dunamu's GIWA chain can dramatically reduce processing speed and costs.
Currently, sending $1,000 through a bank counter costs a total of 18,000 won, including a basic wire fee of 8,000 won plus amount-based fees. With blockchain implementation, industry experts expect this to drop to around 1,000 won or even tens of won.
Transfer times are also expected to be reduced from the current maximum of two to three days to near real-time processing. Both companies have achieved technical stability in internal controls for anti-money laundering (AML) and know-your-customer (KYC) compliance.
2. Value-up Expectations from Commercial Act Revision... 32.6% Return This Year
The third Commercial Act revision bill, centered on mandatory treasury stock retirement, passed the National Assembly, ushering in a new phase for shareholder return policies in the domestic stock market.
The 'PLUS Treasury Stock Buyback High Dividend' ETF has recorded a 32.6% return since the beginning of the year with net assets of 113.7 billion won.
This ETF invests in the top 30 stocks among KOSPI-listed blue-chip companies based on 'total shareholder return rate,' which combines expected dividend yield and treasury stock buyback rate over the past year. Companies announcing large-scale treasury stock buybacks receive special inclusion.
Holdings include Hyundai Motor and Kia; financial stocks such as KB Financial, Shinhan Financial Group, Hana Financial Group, Meritz Financial Group, and Woori Financial Group; as well as NH Investment & Securities and KT&G.
Market observers are comparing this to Japan's precedent, where the Nikkei index more than doubled in three years after the country strengthened shareholder return policies in 2023.
3. Korean Retail Investors in Japan, Exhausted by Weak Yen, Sell U.S. Long-term Treasury ETF
As the prolonged decline in yen value continues, domestic investors holding U.S. long-term Treasury ETFs listed on the Japanese stock market (2621, iShares 20+ Year US Treasury Bond JPY Hedged ETF) have net sold $45.98 million worth this month, rapidly exiting their positions.
The yen has fallen from its April 2024 high of 1,018.53 won to the recent 920 won level against the won. Investors who newly purchased last year are estimated to have suffered losses of up to 9% from currency depreciation alone.
Adding to this, Japanese Prime Minister Sanae Takaichi has advocated an aggressive fiscal policy stance and nominated two rate-cut-leaning academics to the Bank of Japan's Policy Board, strengthening expectations for prolonged yen weakness.
Shinhan Investment Corp. forecasts that expectations for U.S. rate cuts, already priced in for at least two cuts this year, will gradually recede, suggesting limited potential for a sustained decline in U.S. Treasury yields.
4. Downgrade Reports Disappear Amid KOSPI's Unstoppable March... Warnings Against Excessive Optimism
During the period when KOSPI surged from 5,000 to 6,000 within a month, securities firms issued 1,337 target price upgrade reports compared to only 137 downgrade reports, accounting for just 9.3% of the total.
This compares to a 22.6% downgrade ratio during the previous 4,000 to 5,000 range, showing that negative opinions rapidly disappear as the index rises faster.
However, some argue that upgrades are not based solely on simple optimism. Among the 183 companies with raised targets, 164 (89.6%) are forecast to see year-over-year operating profit increases this year.
Intellian Technologies (expected operating profit increase of 199.3% year-over-year), Mirae Asset Securities (199.3%), and SK Hynix (225.2%) are among those expected to see significant profit improvements.
