KOSPI Just 5.8% Away From 7,000 as Foreigners Net Buy 1 Trillion Won

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summarization service developed with support from the Korea Press Foundation. It curates and delivers six tailored news items for each reader type.

1. "Stocks Follow as Earnings Rise"…Semiconductor and Power Equipment Leadership Puts "7,000 KOSPI" Within Reach

- Key Summary: The KOSPI closed at 6,615.03 on the 27th, up 139.40 points (2.15%) from the previous session, setting a new all-time high. Foreign investors and institutions each net bought more than 1 trillion won, driving the rally, while retail investors sold about 1.9757 trillion won to take profits. SK hynix rose 5.73% to a new high after announcing record first-quarter earnings, while Hyosung Heavy Industries (298040.KS) and LS Electric surged 10.95% and 12.80%, respectively. From current levels, only about a 5.8% additional gain would be needed to reach the 7,000 mark on the KOSPI.

2. NAND Q1 Revenue Tops 10 Trillion Won…SK hynix Expands U.S. and China Bases

- Key Summary: SK hynix's first-quarter NAND business revenue reached 11.041 trillion won, exceeding 10 trillion won on a quarterly basis for the first time. The standard NAND product price stood at $17.73 as of the end of last month, up sevenfold over the past year, with a first-quarter price increase of 209%, more than five times the 40% rise for DRAM. SK hynix is accelerating the expansion of its production bases, including the establishment of an AI SSD (solid-state drive) platform development center in Vancouver, Canada, through its North American subsidiary Solidigm, and the expansion of NAND lines at its second plant in Dalian, China. Brokerages forecast that NAND revenue in the second quarter will reach around 20 trillion won.

3. K-Stock Market Without Brakes…Market Cap Tops 6,000 Trillion Won

- Key Summary: Both the KOSPI (6,615.03) and KOSDAQ (1,226.18) set new all-time closing highs on the 27th, pushing Korea's total stock market capitalization to 6,104.694 trillion won, crossing the 6,000 trillion won threshold for the first time. Expectations for a U.S.-Iran ceasefire agreement and strong earnings from semiconductor and power equipment companies drove the simultaneous rally. The KOSPI has surged 523.64 points (8.6%) in just eight trading sessions since breaking the 6,000 mark on the 15th of this month, settling above the 6,600 line. Securities analysts say there is further upside potential to the mid-to-high 7,000 range on the KOSPI, supported by companies' underlying earnings strength.

4. Tillis Holds Casting Vote, Switches Stance…Warsh Confirmation Gains Momentum

- Key Summary: The likelihood of confirmation for Kevin Warsh, U.S. President Donald Trump's pick for the next Federal Reserve Chair, has increased significantly. Republican Senator Thom Tillis, who had maintained his opposition, switched to support following the U.S. Department of Justice's closure of its investigation into current Chair Powell, accelerating the confirmation process. The Senate Banking Committee will hold a vote on the nomination on the 29th, and if it passes committee, a Senate floor vote is expected in the second week of May. With Chair Powell's term expiring on May 15, the new Warsh-led Fed is expected to formally launch in line with the end of his term.

5. SK On Pursues $500 Million Funding…Credit Exposure Capacity in Focus

- Key Summary: SK On is pursuing the issuance of $500 million (approximately 690 billion won) in foreign currency-denominated bonds, with Shinhan Bank this time taking on the role of lead guarantor in place of Kookmin Bank. Major foreign brokerages including Citigroup Global Markets Securities and Morgan Stanley are participating as underwriters, with a single three-year maturity under review. Concerns are being raised in the market that major commercial banks' credit exposure to SK On is approaching their limits. Under the Banking Act, credit exposure limits to a single borrower (including affiliated companies) are capped at 25% of equity capital, requiring careful review for additional funding.

6. K-Food's Planning and Know-How Drive Up Valuations…Foreign Capital Also Eyeing

- Key Summary: Affinity Equity Partners, which is pushing to sell Burger King's Korean operator BKR, is in contact with overseas financial and strategic investors as potential acquirers, with the enterprise value estimated at up to 1 trillion won. Global PEF (private equity fund) Carlyle Group completed the acquisition of management control of KFC Korea on the same day, while Philippine company Jollibee Foods acquired a 100% stake in the operator of Shabu All Day for approximately 130 billion won and is considering Southeast Asian expansion. As foreign capital continues to show interest in acquiring domestic franchises, exit (investment recovery) efforts by domestic investment firms such as VIG Partners (Bonchon), KL&Partners (Mom's Touch), and Q Capital Partners and Coston Asia (Yellow Chicken) are also gaining momentum. Backed by the K-culture wave, valuations of Korean franchises with high overseas expansion potential are soaring, drawing focused attention from global investors.