New York stock market falls…Lee "End confrontation on the Korean Peninsula through Exchange, Normalization of Relations, Denuclearization" [Morning Briefing]

◆ New York stock market falls…Powell "Stock prices are fairly highly valued"

The three major New York indices fell together on the 23rd local time. Market sentiment weakened after NVIDIA, the largest by market capitalization, said it would make a large investment in OpenAI, but questions were raised about the feasibility of the deal. In addition, Federal Reserve Chair Jerome Powell's comment that the market is "fairly highly valued" also acted as a factor prompting profit-taking. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 46,292.78, down 88.76 points (0.19%) from the previous session. The Standard & Poor's (S&P) 500 index fell 36.83 points (0.55%) to 6,656.92, and the technology-heavy Nasdaq Composite fell 215.50 points (0.95%) to 22,573.47. In a speech at the Rhode Island Chamber of Commerce, Powell said, "We look at overall financial conditions and check whether our policy is affecting financial conditions in the way we intended," and added, "By various measures, for example, stock prices are fairly highly valued."

◆ High-level week of the U.N. General Assembly opens…President Lee "End confrontation on the Korean Peninsula with 'END'"

The 80th U.N. General Assembly high-level week general debate, where world leaders gather to discuss international issues, opened on the 23rd (local time) at U.N. Headquarters in New York. This year's 80th General Debate took place amid an unprecedented crisis for the U.N., marked by confrontation among major powers and cuts in U.S. support. U.S. President Donald Trump, giving his first U.N. General Assembly speech since beginning his second term, criticized the U.N. as "incompetent and corrupt." He attacked the U.N., saying it has failed to play its role while he mediated the end of seven international conflicts since taking office in January. President Lee Jae-myung, speaking as the seventh speaker of the day, presented his vision for peace on the Korean Peninsula to the international community. He emphasized, "With the 'END initiative' we will end the Cold War on the Korean Peninsula and fulfill our responsibility to contribute to world peace." The 'END' proposed by the president stands for Exchange, Normalization, Denuclearization.

◆ International oil prices rise…NATO and Trump respond strongly to Russian provocations

International oil prices strengthened. The rise reflected heightened military tension after the North Atlantic Treaty Organization (NATO) said it would use all means to deter any provocation by Russia. On the New York Mercantile Exchange, November-delivery West Texas Intermediate (WTI) crude oil closed at 63.41 dollars per barrel, up 1.13 dollars (1.81%) from the previous session. The North Atlantic Council (NAC), NATO's top decision-making body, issued a statement after concluding an emergency meeting convened by member Estonia under Article 4 of the NATO treaty, saying, "Estonia's case of encroachment is an extension of increasingly irresponsible Russian behavior," and vowed to deter by all means. U.S. President Trump encouraging that any incursions into Russian airspace be shot down also pushed up oil prices.

◆ First former first lady tried in history, Kim Keon-hee appears publicly…first trial today

The first trial for Kim Keon-hee, who was detained and indicted on charges including stock manipulation of Deutsch Motors and allegations of receiving funds from the Unification Church, will be held on the 24th. It is the first time in constitutional history that a former first lady has been brought to trial. Kim will now face criminal trial alongside former President Yoon Suk-yeol. The Seoul Central District Court Criminal Division 27 (Presiding Judge Woo In-seong) will hold Kim's first hearing this afternoon on charges including violations of the Capital Markets Act, violations of the Political Funds Act, and acceptance of bribes under the Act on the Aggravated Punishment of Specific Crimes. Kim is expected to attend.

◆ Consumer sentiment falls for the first time in six months…Bank of Korea "Affected by concerns over U.S. tariffs and construction sector"

Consumer sentiment worsened for the first time in six months due to concerns about U.S. tariffs and the construction sector. According to the Bank of Korea's "Consumer Sentiment Survey," the September Consumer Sentiment Index (CCSI) was 110.1, down 1.3 points from August's 111.4. The index plunged 12.5 points in December last year due to emergency martial law, then fluctuated before maintaining a five-month upward trend from April to August this year, but fell back in September. The CCSI is calculated using six indices: current living conditions, outlook for living conditions, household income expectations, spending expectations, current business conditions, and future business conditions. A value above 100 indicates consumer sentiment is optimistic compared with the long-term average (2003–2024), while a value below 100 indicates pessimism.

◆ 3.91 million personal data records leaked from state agencies last year…sixfold increase in two years

The number of personal data records leaked from state agencies (constitutional agencies and central administrative agencies) surged nearly sixfold over the past two years. According to data submitted to the Personal Information Protection Commission by Lee Jeong-mun of the Democratic Party of Korea, the scale of personal data leaks from state (public) agencies increased from 650,000 cases in 2022 to 3.52 million in 2023, reaching 3.91 million last year. By number of reports, there were 23 in 2022, 41 in 2023, and 104 last year. Through July of this year, 72 reports had already been filed, and a total of 910,000 personal data records were found to have been leaked. Under the Personal Information Protection Act, public agencies include the National Assembly, the courts, the Constitutional Court, agencies handling administrative affairs of the National Election Commission, central administrative agencies and their subordinate agencies, encompassing constitutional and central administrative agencies.

◆ Nationwide cloudy with rain…20–30㎜ per hour in central regions at times

Wednesday the 24th will be mostly cloudy nationwide with rain accompanied by gusts, thunder, and lightning. Rain falling in Jeju and the eastern coast of South Gyeongsang in the morning is expected to expand to the eastern coast of North Gyeongsang from the morning and then to the whole country during the morning and daytime, continuing into the 25th. The Seoul metropolitan area and Gangwon Province may see rain from afternoon into evening, and the Chungcheong region may see rain from night with rates of 20–30㎜ per hour at times. Northern Gyeonggi Province may see hourly precipitation of 30–50㎜. Daytime highs are forecast to be 23–31 degrees.

Oh Jeong-min, Hankyung.com reporter blooming@hankyung.com