Korea Economic Daily

[Breaking] Trump signs 'withdrawal from 66 international organizations including UN agencies' Kim Su-young Hankyung.com reporter swimmingk@hankyung.com

[Breaking] Trump "2027 defense budget should be 1.5 trillion dollars, not 1 trillion dollars" Kim Su-young Hankyung.com reporter swimmingk@hankyung.com

◆ U.S. begins asserting control over Venezuela's oil resources…seeking economic benefit and checking China simultaneously The Trump administration has begun to assert control over Venezuela's energy resources by revealing plans to take possession of Venezuelan crude oil, which has been prevented from being exported by U.S. sanctions, sell it on behalf of Venezuela, and decide how the proceeds will be used. According to the Trump administration's explanation compiled on the 7th, the United States agreed with the Venezuelan authorities to receive and sell some 30–50 million barrels of crude oil held by Venezuela on the market and to control the use of the proceeds. White House spokeswoman Caroline Levitt said at a briefing that "Venezuela's interim government authorities have agreed to hand over the oil to the United States, and it will arrive very soon," and that the U.S. government has already begun the process of selling the oil on the international market. Regarding the proceeds from the oil sales, spokeswoman Levitt said they "will be distributed for the benefit of Americans and Venezuelans at the discretion of the U.S. government." The Trump administration appears to be trying to directly control oil sales to pressure the Venezuelan government to adopt desired policies and to create a business environment favorable to U.S. oil companies. ◆ New York stocks sold off broadly except tech…finished mixed The three major U.S. stock indices finished mixed. Tech stocks held up, but selling emerged across the board in the afternoon, and the market took a breather. On the 7th (U.S. Eastern Time) at the close on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 48,996.08, down 466.00 points (0.94%) from the previous session. The Standard & Poor's (S&P) 500 Index closed at 6,920.93, down 23.89 points (0.34%), while the Nasdaq Composite Index closed at 23,584.27, up 37.10 points (0.16%). The S&P 500 and the Dow also set new intraday record highs that day. The financials and energy sectors, which had led the early-year rally, were both weak. Bank stocks fell, including JPMorgan Chase (-2.3%), Bank of America (-2.8%), and Wells Fargo (-2.2%), and energy names such as ExxonMobil (-2.1%), Chevron (-0.8%), and ConocoPhillips (-3.3%) underperformed. By contrast, refiners Valero Energy (3.1%) and Marathon Petroleum (1.2%) rose more than 3% and 1% respectively on news that sales of Venezuelan crude may continue and sanctions could be eased. ◆ Samsung Electronics to release Q4 results today…whether operating profit tops 20 trillion won is key Samsung Electronics will announce its preliminary fourth-quarter results on the 8th. With AI infrastructure investment continuing and a super cycle for memory chips beginning, a record-breaking performance is likely, and attention is on whether it can, for the first time ever, enter the era of quarterly operating profit of 20 trillion won. Yonhap Infomax compiled the earnings consensus from 17 brokerages that published reports within the last month and found that Samsung's fourth-quarter operating profit is forecast at 19.6457 trillion won, up 202.6% year-on-year. The fourth-quarter revenue consensus is also expected at 92.5445 trillion won, up 22.1% year-on-year. Samsung is expected to record its highest quarterly operating profit in about seven years. The quarterly revenue record of 86.0617 trillion won set in the third quarter of last year is also expected to be surpassed after just one quarter. The Device Solutions (DS) division, which handles the semiconductor business, is believed to have played a leading role. Division-level results are not being released that day, but analysts estimate the DS division's fourth-quarter operating profit at about 16–17 trillion won. ◆ Police to summon former district councilor who wrote petition alleging Kim Byung-ki received nomination money A former Dongjak District councilor who wrote a petition claiming to have given nomination money to Democratic Party lawmaker Kim Byung-ki will appear before the police. The Seoul Metropolitan Police Agency's Public Crime Investigation Unit will summon former Dongjak councilor A as a suspect on the 8th. A submitted a petition at the end of 2023 alleging that he had given 10 million won to a side of Representative Kim ahead of the 2020 general election and later got it back; the petition named then-Democratic Party lawmaker Lee Su-jin. Police plan to question A about the circumstances under which money was handed to Representative Kim's side. Former Dongjak councilor B, who confessed in a petition that he gave 20 million won to Representative Kim's wife around the same time and later got it back, is scheduled to be questioned by police on the 9th. ◆ U.S. Secretary of State Marco Rubio: "I will discuss Greenland with Denmark next week…military option is valid for all issues" U.S. Secretary of State Marco Rubio said on the 7th (local time) that he plans to discuss Greenland, the Danish autonomous territory that President Donald Trump has had his eye on, with Denmark. Rubio told reporters on Capitol Hill that when asked why the U.S. has not engaged in talks as Denmark requested regarding Greenland, "I'll be meeting with them next week." Asked whether the United States is trying to buy Greenland, Rubio said, "That was always President Trump's intention from the beginning," explaining that President Trump said the same in his first term and that it is not a new position. He reiterated that the Trump administration is seeking to secure Greenland for national security reasons and is not ruling out military means to do so. Rubio said, "We always prefer to resolve things in other (nonmilitary) ways," adding that the U.S. tried other methods in Venezuela but used military means after those failed. ◆ Prince Group chairman Chen Z arrested in Cambodia and extradited to China in large-scale online scam AFP reported that Chen Z, chairman of the Prince Group, which has been identified as behind a large-scale online scam criminal complex in Cambodia, was arrested in Cambodia and extradited to China. The Cambodian Ministry of Interior said in a statement on the 7th (local time) that Cambodian authorities arrested three Chinese nationals, including Chen Z, Xu Jiliang, and Xiao Jihu, and extradited them to China. The ministry said the arrests were part of an operation on the 6th conducted in cooperation to crack down on transnational crime. It added that Chen Z's Cambodian citizenship was revoked by royal decree in December last year. Chen Z is reported to have built vast wealth by expanding his business in close ties with Cambodia's high-level political circles and operating large-scale scam criminal complexes. In October last year, the U.S. and U.K. governments sanctioned the Prince Group and Chen Z, saying they ran criminal complexes that extorted money from victims worldwide and tortured trafficked workers. The Korean government also imposed independent sanctions in November last year on 15 individuals, including the Prince Group and Chen Z, and on 132 entities. ◆ Nationwide morning commute around -10°C 'severe cold' Thursday the 8th will be cold, with morning temperatures around -10°C across inland areas nationwide. Morning temperatures in most regions will be more than 5°C lower than the previous day, and the Seoul metropolitan area, Gangwon, North Chungcheong, and North Gyeongsang regions will be more than 10°C lower. Daytime temperatures will also be below 0°C in many inland central areas. The forecast high is -3 to 5°C. The country will generally be clear, but the western coast of Jeolla and Jeju Island will be occasionally cloudy. Jeju Island may see rain or snow into the afternoon, and western Jeolla may see drizzle under 0.1㎜ or trace snowfall under 0.1㎝ until the morning. Expected precipitation is under 5㎜ for Ulleungdo, Dokdo, and Jeju Island. Expected snowfall is 1–5㎝ for Ulleungdo and Dokdo, 1–3㎝ for Jeju's mountainous areas, and around 1㎝ for Jeju's midlands. The air will be very dry in Seoul and some inland parts of Gyeonggi, the east coast and mountains of Gangwon, eastern Jeonnam, and the Gyeongsang region; other areas will also be dry, so be especially careful about fire. Fine dust concentrations will be at 'Good' levels nationwide due to favorable atmospheric dispersion. Cha Eun-ji, Hankyung.com reporter chachacha@hankyung.com

Europe uneasy over Trump's desire to control Greenland Denmark: "Will spend 20 trillion won on Greenland defense" Building justification by framing from 'economic security' to 'national security' Following Venezuela, Europe's concern is growing that Trump's next target could be Greenland. With mentions that military options are being considered, Marco Rubio, U.S. Secretary of State, said on the 7th (local time), "I will discuss the Greenland issue with Denmark next week." European stock markets fell on the 7th amid rising unease, with the broad STOXX 600 index down 0.2%. European defense stocks rose on news that Denmark would spend on Greenland's defense. Marco Rubio, U.S. Secretary of State, said that day, "Next week I will discuss the Greenland issue with Danish officials." Rubio's remarks came as the Trump administration raised the level of rhetoric suggesting it might seize control of Greenland, an autonomous territory of Denmark. A day earlier, White House spokesperson Caroline Levitt said that the president and his advisers were "considering various options, including the mobilization of U.S. forces," to acquire Greenland, heightening the sense of crisis over Greenland. On the evening of the 6th, Troels Lund Poulsen, Denmark's Minister of Defence and Deputy Prime Minister, said, "Considering the serious security situation we face, we will spend 88 billion Danish kroner (about 20 trillion won) to rearm Greenland." President Trump said to reporters on the 4th, shortly after military intervention in Venezuela, "From a national security perspective, Greenland is essential to us." His remarks stunned leaders across Europe. The United States already maintains a presence in Greenland. Near Baffin Bay in northwest Greenland it has the Pituffik space base, formerly the Thule Air Force Base. The base has a runway and currently hosts about 150 U.S. military personnel. During the Cold War, U.S. troop levels were around 6,000, but the U.S. has significantly reduced its stationed forces since then. If necessary for national security, agreements could be made directly with Greenland, similar to military agreements with Denmark. Through consultations with Denmark and Greenland, the U.S. could also increase stationed forces and military equipment. For this reason, European experts say they do not understand why the U.S. would cite national security as the reason it wants to control Greenland. Marion Messmer, head of the International Security Programme at the Chatham House think tank in London, said, "It is not clear why the U.S. would want control of Greenland under the guise of national security." The U.S. already stations forces at Pituffik, and there has long been a defense agreement with Denmark, she said. "The U.S. can, if necessary, increase its forces without infringing on Danish sovereignty," she added. Otto Svendsen, a Europe, Russia, and Eurasia researcher at the Center for Strategic and International Studies (CSIS) in Washington, said, "The early-warning airbase the U.S. has placed in northwest Greenland plays a central role in monitoring Russian submarines passing through nearby straits." He said that movements by Russia or China can already be detected in this area. According to CNBC, U.S. international strategy researchers say Greenland's strategic value is increasing. Clayton Allen, head of practice at political risk consultancy Eurasia Group, said, "Trump is a real estate businessman," and added, "Greenland holds some of the most valuable regions in economic and strategic terms for the next 30 to 50 years." CSIS's Otto Svendsen said, "A newly emerging factor is that Greenland spans two potential maritime transport routes through the Arctic — the Northwest Passage and the Trans-Arctic route." He added, "Climate change is making these routes more viable, increasing commercial benefits and thereby raising the island's national security value." Previous polls show Greenland residents overwhelmingly oppose U.S. control and that a majority support independence from Denmark. Analysts say Greenland could be useful as an advance base to strengthen U.S. defense and as a location to deploy missile interceptors. Eurasia Group's Allen said, "The U.S. needs to build an air defense network closer to Russia, and Greenland, with its vast area, provides precisely that condition." Located between the U.S. and Russia, Greenland is adjacent to emerging Arctic routes that could greatly shorten travel times between Asia and Europe as ice rapidly melts due to climate change. Greenland also spans the so-called GIUK gap, the maritime bottleneck between Greenland, Iceland, and the United Kingdom that connects the Arctic and the Atlantic. Greenland is also known to be rich in undeveloped resources such as oil and gas deposits, critical minerals, and rare earth elements. Critical minerals and rare earth elements are essential components of emerging technologies such as wind turbines, electric vehicles, energy storage technologies, and national security-related technologies. China has used its dominant position in the rare earths market to gain an advantage in trade disputes with the U.S. President Trump has mainly cited America's "economic security" as the rationale for wanting control of Greenland. With Trump's approval ratings falling to the low 30% range, he may need another big deal to divert public attention from domestic issues, following Venezuela. Therefore, analysts say that 'national security' could be used in addition to 'economic security' to rationalize control of Greenland as its geopolitical and economic value rises. Contributing reporter Jeong-a Kim kja@hankyung.com

China has launched an anti-dumping investigation into dichlorosilane, a semiconductor process chemical imported from Japan, following its ban on rare earth exports. The Ministry of Commerce announced on its website on the 7th that it would begin an anti-dumping investigation into dichlorosilane imported from Japan starting that day. Dichlorosilane is a key chemical used in semiconductor chip manufacturing processes. The ministry explained, "After receiving an anti-dumping petition from Chinese companies and reviewing the product under investigation, similar products in China, the impact of the investigated product on China's industry, and the countries under investigation, we determined that the conditions to initiate an investigation are met." The dumping investigation period is from July 1, 2024, to June 30, 2025. The damage investigation period is from January 1, 2022, to June 30, 2025. Earlier, the ministry on the 6th issued the 'Notice on Strengthening Export Control of Dual-use Items to Japan' and announced, "We prohibit the export of all dual-use items to Japan for Japanese military users, military end-uses, and any other end-users that help strengthen Japan's military power." Dual-use items include many products essential to advanced industries such as rare earths and semiconductor materials, many of which China dominates in the global market. Moreover, measures targeting third countries that transfer Chinese dual-use items to Japan—effectively a 'secondary boycott' (secondary sanctions)—were even mentioned. The international community has interpreted this as China stepping up a full-fledged 'weaponization of resources' against Japan. Chinese local media reported, "The scope of these regulatory measures is broad and the intensity is high, and they are among the strongest retaliatory measures against Japan in recent years." They also mentioned the possibility of expanding restrictions to exports of rare earths for civilian use, depending on Japan's future response. The Chinese military stated that the government's export ban on dual-use items aimed at Japan was a response to Japan's moves to strengthen its military. They also reiterated the view that Japanese Prime Minister Sanae Takaichi should withdraw her remarks about possible intervention in the event of a Taiwan contingency. At a briefing on the 7th, Chinese Foreign Ministry spokesman Mao Ning said, "I want to point out that Prime Minister Takaichi's erroneous remarks on Taiwan violated China's sovereignty and territorial integrity, openly interfered in China's internal affairs, and threatened China with force," and "we urge Japan to face up to the root of the problem, reflect and correct, and withdraw the erroneous remarks." Beijing=Correspondent Eunjeong Kim kej@hankyung.com

CES on-site briefing All three memory companies expand production capacity Demand continues to rise due to AI infrastructure investment Jensen Huang, NVIDIA Chief Executive Officer (CEO), said of the memory semiconductor boom brought by the artificial intelligence (AI) boom, "As AI factories grow rapidly, more memory semiconductor fabs will be needed," calling it "a very favorable situation for memory companies." He said that the 'AI special' for domestic memory semiconductor companies such as Samsung Electronics and SK Hynix is expected to continue for a considerable period. Huang said at a press conference held on the 6th (local time) at the Fontainebleau Hotel in Las Vegas, USA, "AI will trigger a 'storage revolution.'" He said, "AI's use of a KV cache (key-value cache) is completely different from the existing information technology (IT) industry," and "Accordingly, demand for high-performance central processing units (CPUs) that manage storage is also exploding." A KV cache is a short-term memory that stores content AI has already read, described as a 'notebook that stores what AI has already read.' The CPU plays the role of placing and moving the KV cache. Huang said, "CPUs will be used in many places, and it would not be surprising at all if we became the world's No. 1 CPU company." NVIDIA's CPU, 'Grace,' is accompanied by 16 low-power DRAM (LPDDR) chips. LPDDR serves to store the contextual and task information necessary for AI to continue conversations. Regarding the increasingly deepening shortage of memory semiconductors, Huang said, "I'm not worried. Thanks to being a big buyer in the industry, we will enjoy a (relative) advantage." He explained, "NVIDIA uses the latest high-bandwidth memory (HBM), HBM4 (6th-generation product), exclusively," and "I think other companies will not use HBM4 for a considerable time." He added, "Because NVIDIA's purchase volume is so large, all memory manufacturers are expanding production capacity, and all are delivering results." Huang emphasized that NVIDIA is one of the largest purchasers of memory semiconductors. He said, "NVIDIA purchases not only HBM but also graphics DRAM (GDDR) and LPDDR directly," and "We are a major buyer of GDDR." NVIDIA receives HBM, GDDR, and LPDDR from the three memory companies such as Samsung Electronics, SK Hynix, and Micron. The latest graphics DRAM, GDDR7, goes into NVIDIA's gaming series GeForce RTX. Samsung Electronics is known as the largest supplier of GDDR7. Las Vegas=Park Ui-myung reporter uimyung@hankyung.com

The advance of Silver… Surpassed NVIDIA's market cap Investment flows amid global instability Market cap 4.6 trillion dollars… 2nd largest single investment asset IBs: "Silver price could be three times higher than now" Silver's market value has apparently even overtaken the global stock market leader NVIDIA. Silver prices have continued their sharp rise as various factors—global instability, inflation concerns, and China's export restrictions—have coincided. On the 6th (local time), according to U.S. financial information firm CompanyMarketCap, silver's market value totaled 4.627 trillion dollars (about 6,700 trillion won), surpassing NVIDIA's market cap (4.55 trillion dollars). This figure was calculated based on the estimated circulating silver amount (1.75 million t) and the New York Mercantile Exchange trading price of 81.04 dollars per troy ounce. This is the first time silver's estimated market value has exceeded NVIDIA's market cap. By single investment asset, the asset with the largest market value is gold. Its estimated market cap reaches 31.135 trillion dollars. Leading virtual asset Bitcoin ranks eighth, following Apple, Alphabet (Google's parent company), Microsoft, and Amazon. Spot silver prices have risen 165.91% since last year. There is virtually no comparison among major commodities. Analysts say that when China, the largest demand center and the second-largest producer, switched silver exports to a permit system, speculative buying even emerged. The U.S.'s ousting of Nicolas Maduro's Venezuelan regime, which increased international instability, is also evaluated to have contributed to the precious metals rally that includes silver. Some investment banks (IBs) see room for silver prices to rise more than threefold from current levels. Michael Widmer, a Bank of America analyst, said, "Current silver prices are trading at about one-sixtieth the level of gold, which is not high compared to past cases," and "Considering that silver rose to the one-fourteenth level in the 1980s, a price in the $300-per-troy-ounce range is possible." Beomjin Jeon reporter forward@hankyung.com

'Korea Exchange-Koscom'·'NextTrade-Musicow' consortia selected LucentBlock consortium defeated The operator of the token securities (STO) over-the-counter exchange (distribution platform) has effectively been decided. According to financial circles on the 7th, the Financial Services Commission (FSC) held a Securities and Futures Commission meeting in the afternoon and, after deliberating on the preliminary license application for the fractional investment OTC exchange's financial investment business, selected the 'Korea Exchange-Koscom' consortium and the 'NextTrade (NXT)-Musicow' consortium. Licensing matters require deliberation and resolution at the FSC's regular meeting. Therefore, final approval is expected after deliberation and resolution at the FSC's regular meeting scheduled for the 14th. It is rare for an item that passed the Securities and Futures Commission to be overturned at the regular meeting. Three consortia had applied earlier to operate the fractional investment OTC exchange. Specifically: △Korea Exchange-Koscom consortium (tentative name KDX) △LucentBlock consortium △NextTrade-Musicow consortium (NextTrade (NXT)-Musicow) (tentative name NXT consortium). Earlier, the Financial Supervisory Service (FSS) had said it would grant preliminary approval to at most two of these. The financial investment industry forecasts that as fractional investment targets expand to content, copyrights, etc., the related market could grow to about 360 trillion won by 2030. Min-kyung Shin, Hankyung.com reporter radio@hankyung.com

US$5 billion more than planned "AI investment war Round 2 begins" xAI, the artificial intelligence (AI) company led by Elon Musk (pictured), secured US$20 billion (about 26 trillion won), becoming the first major AI company this year to announce a large investment. The funds will be used for data center expansion and AI model training. Following last year's record fundraising by global AI companies and with OpenAI and Anthropic's listings expected this year, competition for capital in the global AI industry is expected to intensify. xAI announced on its blog on the 6th (local time) that it had secured US$20 billion in its Series E round. That is US$5 billion more than originally targeted. The Qatar Investment Authority and others participated, and NVIDIA was named among the strategic investors. xAI said, "With this funding, we will build world-class infrastructure to accelerate AI development for billions of users and support research to advance our core mission of 'understanding the universe.'" Here, 'understanding the universe' refers to an AI philosophy centered on the pursuit of truth. xAI is developing the next-generation generative AI model 'Grok 5' and is considering entering the games and robotics sectors. xAI is expanding the 'Colossus' supercomputer complex in Tennessee, USA, as AI infrastructure. Colossus 1 is operational, and Colossus 2 is under construction. Colossus 1 and 2 have computing resources equivalent to about 1 million of NVIDIA's H100s. Recently, it purchased a third site in Mississippi to build an additional data center. Industry observers said this investment marks the start of round two of the AI capital race. Last year, global AI companies raised more than US$150 billion, the largest ever. OpenAI, valued at US$500 billion, recently closed US$41 billion in funding. There were also reports that up to US$100 billion in fundraising is targeted for Q1 this year. Anthropic raised US$13 billion in September last year, giving it a valuation of US$183 billion. xAI did not disclose its valuation that day, but the industry estimates it at around US$230 billion. Young Choi reporter youngchoi@hankyung.com

U.S. CBS interview Venezuelan opposition leader Maria Corina Machado said the opposition she leads should run the Venezuelan government. On the 6th (local time), Machado said in a video interview with U.S. CBS, "The Venezuelan people have already chosen who should lead Venezuela." Machado secretly left Venezuela last December to attend the Nobel Peace Prize ceremony. She is reported to be staying abroad. The remark "have already chosen" is interpreted to mean that Edmundo González, who ran as the opposition candidate in the 2024 presidential election in which election manipulation by the Maduro regime occurred, actually won. Machado won the primary to run against Maduro in the 2024 presidential election but was barred from running by the regime. Former diplomat Edmundo González ran in her place. The announcement that Maduro had succeeded in winning a third term was widely suspected to have been manipulated, and the international community, including the United States, recognized González as the winner of the presidential election. When the host asked, "Do you mean you should be Venezuela's next leader?", Machado referred to the opposition's president-elect González and replied, "Of course." She added, "We are ready to serve the people in accordance with the mandate the people have given, and we will gladly do so." Regarding the U.S. military operation, she described it as "a significant step toward Venezuela's prosperity and the restoration of the rule of law and democracy," and said, "Thanks to U.S. President Donald Trump's leadership and courage, Maduro will face the judgment of justice." Machado criticized Vice President Delcy Rodríguez, who became interim president, saying, "She is not moderate at all, and no one trusts her," and called her "one of the people who led the repression of innocent people." However, President Trump has excluded Machado and accepted the interim presidency of Rodríguez, saying Machado lacks a popular support base and the capacity to control opponents. Because of this, it is uncertain whether the opposition can lead Venezuela as Machado hopes. Trump said of Machado, "She is a very nice woman but has not gained support or trust within her country," and "It will be very difficult for her to become a leader." Meanwhile, the BBC reported that Rodríguez, who served as a minister in Maduro's cabinet and has been subject to U.S. sanctions, has not been charged with any crime in the United States, unlike the Maduro couple. Jin Young-gi, Hankyung.com reporter young71@hankyung.com

Global investment bank Macquarie advised, "Do not sell Samsung Electronics and SK hynix too early," forecasting that the memory supercycle will continue through 2027. It set a target price of 240,000 won for Samsung Electronics and 1,120,000 won for SK hynix. On the 6th (local time), Macquarie diagnosed that the surge in memory semiconductor prices is fundamentally changing the earnings structures of Samsung Electronics and SK hynix. The analysis is that both companies have rapidly improving profitability centered on DRAM and high-bandwidth memory (HBM), entering a 'long-term boom phase' unlike before. Accordingly, Macquarie raised Samsung Electronics' target price by 37% to 240,000 won. Considering the closing price on the 7th (141,000 won), the upside potential is about 70.2%. In particular, Macquarie newly added Samsung Electronics to its core recommended list as a 'Marquee Buy.' Macquarie raised SK hynix's target price to 1,120,000 won, up 40% from before. SK hynix's closing price on the 7th was 742,000 won. Macquarie expects quarterly earnings to improve significantly as DRAM and NAND prices rise. Macquarie analyst Daniel Kim diagnosed, "The current memory shortage has deepened to the extent that it is pressuring the entire information technology (IT) supply chain, and no clear solution is visible through 2028." He also raised Samsung Electronics' operating profit forecasts for 2026 and 2027 by 50% from previous estimates. For SK hynix, he projected net profit to surge from 45 trillion won in 2025 to 101 trillion won in 2026 and to 142 trillion won in 2027. That is a calculation that profit size would grow more than threefold in just two years. Analyst Daniel Kim advised investors, "The memory price uptrend will continue through the first half of 2027," adding, "Don't sell too early." He emphasized, "As the memory shortage (supply shortage) intensifies, there is no sign of a price reversal (shift to decline) in any product category," and "Samsung Electronics and SK hynix will be the biggest beneficiaries of this unprecedented cycle." Younggi Jin, Hankyung.com reporter young71@hankyung.com

Foreign net buying Semiconductor stocks continue to strengthen…'140000-won Samsung Electronics'·'760000-won SK Hynix' The KOSPI index rose more than 1% early in trading on the 7th and broke through the 4600 level, setting a new record again. Bolstered by an overnight surge in U.S. semiconductor stocks, Samsung Electronics and SK Hynix continued their record-high rallies and appeared to be leading the index higher. As of 9:12 a.m. that day, the KOSPI index stood at 4605.59, up 80.11 points (1.77%) from the previous session. The KOSPI, which started up 0.9%, quickly widened gains to as much as 1.91% in the early session, touching 4611.72 and setting another record high. On the securities market, foreigners had a net buying position of 473.5 billion won, while individuals and institutions were net sellers of 341.8 billion won and 119.3 billion won, respectively. It appears this was driven by a sharp rise in semiconductor stocks on the New York market overnight. The Philadelphia semiconductor index rose 2.75%, and Micron Technology (10.02%) and SanDisk (27.56%) surged. As a result, Samsung Electronics reached the intraday '140000-won Samsung Electronics' and SK Hynix reached the '760000-won SK Hynix', continuing their record-high runs. Among the top market-cap KOSPI stocks, LG Energy Solution, Samsung Biologics, Hyundai Motor, HD Hyundai Heavy Industries, SK Square, Doosan Enerbility, Hanwha Aerospace, and Kia are rising. Celltrion, KB Financial, and Naver are falling. The KOSDAQ index at the same time stood at 955.2, down 0.77 points (0.08%) from the previous session. In the KOSDAQ market, foreigners and institutions were net sellers of 115.1 billion won and 17.3 billion won, respectively, while individuals were net buyers of 131.9 billion won. Among the KOSDAQ market-cap leaders, Alteogen, HLB, Peptron, Samchundang Pharmaceutical, Kolon TissueGene, and Rino Industry are declining. Meanwhile, EcoproBM, Ecopro, Rainbow Robotics, RigaChem Bio, and Pharma Research are on the rise. In the Seoul foreign exchange market, the won–dollar exchange rate opened at 1448 won 50 jeon, up 3 won from the previous session. Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com

Authorities add the industry to banks' subsidiaries Possible to hold more than 15% of shares A path appears to be opening for banks to hold more than 15% of the equity of issuers of won-denominated stablecoins. With the government's submission of the 'Digital Asset Framework Act' imminent, it is expected that alliances and consolidations between banks and fintech firms over stablecoin issuance will accelerate. On the 6th, sources in the financial sector said financial authorities are strongly considering adding 'stablecoin (value-stabilized digital asset) issuance' to the list of businesses eligible for banks' subsidiaries. They are looking at revising bank supervision regulations or issuing an authoritative interpretation. The authorities moved because a potential conflict between the Bank Act and the Digital Asset Framework Act was raised. The government has settled on allowing won-denominated stablecoin issuance from bank-centered consortia (50%+1 share). The problem is that under the Bank Act, banks can only hold up to 15% of another company's equity. This led to points that at least four banks would have to join to form a consortium in which banks hold '50%+1 share'. To resolve this issue, the financial authorities plan to add stablecoin issuance to the industries listed as banks' subsidiaries in the bank supervision regulations, which are currently limited to businesses such as financial investment, insurance, and savings banks. Under the Bank Act, banks can hold more than 15% in subsidiaries only in industries designated by the Financial Services Commission. A source in the financial sector said, "Theoretically, an issuer wholly owned 100% by a single bank could be established," adding, "However, considering the scalability of stablecoins, it is expected that consortia with securities firms, cryptocurrency exchanges, and fintech firms will be more common than single-bank establishments." Five major banks "racing to secure won coins"…platforms and exchanges begin alliances Banks' calculations become more complex…intense competition to secure platform users The domestic financial sector's war over 'won stablecoins' is on the verge of a full-scale opening. The contours of the Digital Asset Framework Act, which will set the rules of the game, are gradually emerging. Centered on the five major banks—Kookmin, Shinhan, Hana, Woori, and Nonghyup—large-scale alliances involving platforms, virtual asset exchanges, securities firms, and card companies are expected, intensifying competitive maneuvers in the financial sector. ◇ Underwater competition surfaces On the 6th, sources in the financial sector said that as the authorities settled on including won stablecoin issuance in the list of banks' subsidiary industries to apply an exception to the '15% ownership rule under the Bank Act', banks' calculations became more complicated. Won stablecoins are not a simple new business but an area that requires a comprehensive redesign of payment, platform, and digital asset strategies. Although banks could effectively directly own issuer equity, single-bank establishment is expected to be ruled out. The success of won stablecoins depends more on use cases and securing distribution channels than on issuance itself. A senior financial sector official said, "Initially, whether won stablecoins take root is likely to depend on whether they are linked with platforms or exchanges that have large user bases," adding, "From a bank's perspective, a consortium structure to diversify market risk and maximize network effects is a realistic option." ◇ Platform partnerships are key While banks are expected to take the lead, analyses say the key to success will depend on which party secures the platforms. Scenarios of alliances and consolidations based on realistic partnerships among banks are being discussed. The biggest point of interest is which bank will join the Naver–Dunamu alliance. Each ranks first in the platform and virtual asset exchange markets, respectively, making them a combination that could start overwhelmingly in terms of user base and distribution channels. Hana Bank has overlap with both Naver and Dunamu. With Naver, it jointly launched a platform-linked demand deposit account. With Dunamu, it recently signed an MOU for joint development of financial services using blockchain technology. It would be difficult for Hana Bank to secure a majority stake in a consortium alone, so attention is on which bank it will partner with. Naver also has collaborative relationships with Shinhan, Woori, and Nonghyup banks. Kakao and Toss are also considered powerful partners in the won stablecoin competition. Both platforms have internet banks as subsidiaries, but direct equity relationships or strategic alliances with the five major banks are limited. Therefore, if won stablecoin regulation is formalized, banks are expected to speed up negotiation competition with these platforms. Kookmin Bank has been repeatedly mentioned as a possible collaborator with Bithumb due to account partnerships that create touchpoints. A tie-up with Bithumb, which has a large user base, could accelerate coin adoption. Shinhan Bank's account partner Korbit is a natural choice, but scenarios of alliances with other banks are also discussed. Woori Bank's collaboration with Samsung Wallet has attracted market attention. As the four major domestic financial groups this year unanimously set securing the digital asset ecosystem as a core goal, the won stablecoin competition is expected to become more pronounced. Yang Jong-hee, chairman of KB Financial Group, emphasized in his New Year's address, "We must secure customers and business opportunities first in newly forming digital assets." Jin Ok-dong, chairman of Shinhan Financial, also stated, "We must secure leadership in the digital asset ecosystem." Ham Young-joo, chairman of Hana Financial, said, "We should proactively design the complete ecosystem (of won stablecoins)," and Im Jong-ryong of Woori Financial said, "We will take preemptive measures against institutional changes surrounding digital assets." ◇ Securities and card firms also eye opportunities Securities firms and card companies are also actively moving. Mirae Asset is targeting the entire digital asset value chain, pursuing both the Naver–Dunamu alliance and the acquisition of Korbit. Korea Investment & Securities recently signed an MOU with Bithumb to strengthen cooperation. Hanwha Investment & Securities and Kiwoom Securities are tied by equity relationships to Dunamu and Woori Financial, respectively, so collaboration can be expected. A securities industry source said, "Securities firms have strengths in designing investment products, token securities (STO), and distribution structures, so they can play an important role in the won stablecoin ecosystem." Major card companies are also reported to be in talks with banks exploring opportunities. Seo Hyeong-gyo/Jo Mi-hyun seogyo@hankyung.com

Authorities Allow 'Won-Denominated Coin Issuers' to Be Incorporated as Bank Subsidiaries Banking Sector's Calculations over Won Coins Grow More Complex Issuers' Equity Can Be Held Directly Heavy Burden for Single Largest Shareholder Participation Likely Formation of Multiple-Bank Consortiums Intense Competition to Secure Platform Users Hana Bank Reaches Agreements with Naver and Dunamu KB Kookmin-Bithumb, Shinhan-Korbit Account Partnerships Woori Expands Collaboration with Samsung Wallet The domestic financial sector's war over "won-denominated stablecoins" is gearing up for a full-scale opening. This follows the gradual emergence of the contours of the Digital Asset Framework Law, which will set the rules of the game. With large-scale alliances involving platforms, virtual asset exchanges, securities firms, and card companies anticipated around the five major banks — KB Kookmin, Shinhan, Hana, Woori, and NongHyup — competition for position in the financial sector is expected to intensify. ◇ Under-the-surface Competition Comes to the Fore According to the financial sector on the 6th, regulators appear to be moving toward including won-denominated stablecoin issuance in the list of business types for bank subsidiaries as an exception to the "15% equity regulation under the Bank Act," which has made the banks' calculations even more complex. Won-denominated stablecoins are not a simple new business but an area that requires a comprehensive redesign of payment, platform, and digital asset strategies. While banks would effectively be able to directly hold equity in issuers, it is expected that the option of establishing a standalone issuer will be ruled out. The success or failure of won-denominated stablecoins depends more on their use cases and distribution networks than on issuance itself. A senior official in the financial sector said, "Initially, whether there is linkage with platforms or exchanges that hold a large number of users is likely to determine the pace of won-denominated stablecoin adoption," adding, "For banks, a consortium structure to spread market risk and maximize network effects is a realistic choice." ◇ Platform Partnerships Are Key Although banks are expected to take the lead, analysis says the key to success will depend on who secures the platforms. Scenarios of alliances and rivalries based on realistic partnerships are being discussed for each bank. The biggest point of interest is which bank will join forces with the Naver–Dunamu alliance. Each is number one in the platform and virtual asset exchange markets respectively, making a partnership capable of an overwhelmingly strong start in terms of user base and distribution channels. Hana Bank has intersectional relationships with both Naver and Dunamu. With Naver, it jointly launched a platform-linked demand deposit account. With Dunamu, it recently signed an MOU to jointly develop financial services using blockchain technology. It would be burdensome for Hana Bank to secure a majority stake in a consortium alone, so attention is focused on which bank it will partner with. Naver also has collaborative relationships with Shinhan, Woori, and NongHyup banks. Kakao and Toss are also regarded as powerful partners in the won-denominated stablecoin competition. Both platforms have internet bank subsidiaries, but direct equity relationships or strategic partnerships with the five major banks are limited. Therefore, once won-denominated stablecoin institutionalization becomes full-fledged, banks are expected to accelerate competitive negotiations with these platforms. KB Kookmin Bank has been consistently mentioned as a possible collaborator with Bithumb, as they have account partnerships that create points of contact. A combination with Bithumb, which has a large user base, could accelerate coin spread. Shinhan Bank is naturally linked with Korbit, with which it has an account partnership, but alliance scenarios with other banks are also being discussed. Woori Bank's possible collaboration with Samsung Wallet is attracting market attention. As the country's four major financial groups have all set the preemption of the digital asset ecosystem as a core goal this year, the competition over won-denominated stablecoins is expected to sharpen. Yang Jong-hee, chairman of KB Financial Group, said in his New Year's address, "We must first secure customers and business opportunities in the newly forming digital asset space." Jin Ok-dong, chairman of Shinhan Financial Group, also stated, "We must secure leadership in the digital asset ecosystem." Ham Young-joo, chairman of Hana Financial Group, said, "We must proactively design the complete ecosystem [for won-denominated stablecoins]." Im Jong-ryong, chairman of Woori Financial Group, said, "We will respond proactively to regulatory changes surrounding digital assets." ◇ Securities and Card Companies Also Eyeing Opportunities Securities firms and card companies are also actively moving. Mirae Asset is targeting the entire digital asset value chain by pursuing both the Naver–Dunamu alliance and the acquisition of Korbit. Korea Investment & Securities recently signed an MOU with Bithumb to strengthen their cooperation. Hanwha Investment & Securities and Kiwoom Securities are linked by equity relationships with Dunamu and Woori Financial Group, respectively, raising expectations for collaboration. A securities industry official said, "Securities firms have strengths in designing investment products, tokenized securities (STO), and distribution structure design, so they can play an important role in the won-denominated stablecoin ecosystem." Major card companies are also reported to be contacting banks to seek opportunities. Mi-hyun Cho / Hyung-gyo Seo reporters mwise@hankyung.com

Issuance approval expected only by year-end As the government's draft of the Basic Act on Digital Assets comes into view, the financial sector has begun positioning itself to secure the title of 'first issuer of a won-denominated stablecoin.' The financial sector expects, based on precedent, that 2~3 consortia will receive approval to issue stablecoins. According to the financial sector on the 6th, the government's draft of the Basic Act on Digital Assets is expected to be proposed as early as this month through Kang Jun-hyun, the ruling party's representative on the National Assembly's Financial Services Committee. The industry says that even if the basic law is proposed, it is likely to take more than a year for it to pass the National Assembly and be implemented. In that case, approval for issuing won-denominated stablecoins is expected to come around the end of the year. Many expect that approval for issuing won-denominated stablecoins will follow the precedent of internet bank licensing. Since the government announced internet bank licensing measures in 2015, only three institutions have received licenses. K-Bank and KakaoBank were established in 2016, and Toss Bank launched in 2021. Last year, four consortia that vied for the 'fourth internet bank' were all rejected in the financial authorities' review. The government has settled on allowing issuance of won-denominated stablecoins starting with 'bank-centered (shareholding 50%+1 share) consortia.' In the initial phase of stablecoin introduction, the plan is to permit bank-centered consortia while recognizing technology companies such as Naver and Kakao as maximum shareholders. The government also plans to form an interagency consultative body including the Ministry of Economy and Finance and the Bank of Korea to discuss stablecoin systems and policies. The financial authorities plan to designate virtual asset exchanges as the 'core infrastructure' of distribution and to establish a governance framework through major shareholder suitability reviews. They will also pursue ownership dispersion that limits major shareholder stakes to 15~20%. The introduction of no-fault liability for damages and punitive fines (sales 10%) in the event of a virtual asset exchange hacking incident is also being seriously considered. Seo Hyeong-kyo/Jo Mi-hyun reporters seogyo@hankyung.com

High peak burden 'box range within an upward trend' pattern A phased approach is necessary rather than chase buying Last year, international gold and silver prices showed a record rise and staged a strong rally. Gold jumped more than 60% in one year, and silver surged more than 140%, hitting the highest level in 45 years. With prices soaring and funds flowing into related financial products, precious metals investments are seen as returning to the center of safe-haven assets and alternative investments. On the 6th, according to the New York Mercantile Exchange in the U.S., international gold prices exceeded 4300 dollars per troy ounce at the end of last year, rising nearly 65% year-on-year. The rise in silver prices was steeper than gold. Over the same period, silver futures jumped from 29.24 dollars per ounce to 70.60 dollars per ounce, up 141.5%. This surpassed the peak during the 1980 'silver squeeze' for the first time in 45 years. It is evaluated that increased industrial demand and speculative buying flowed in simultaneously, driving up prices. The net asset value of the exchange-traded fund (ETF) that invests in physical gold, 'TIGER KRX Gold Spot', exceeded 49.2 billion won immediately after listing and surpassed 1 trillion won. The index also rose more than 40% over the same period. Analysts say the long-term upward trend in gold prices itself is likely to continue into the new year. However, as prices already surged last year, there are views that the pace of increase is likely to slow. The World Gold Council (WGC) and investment banks (IBs) have projected that prices could reach 5000 dollars per troy ounce this year. J.P. Morgan expects the average gold price to reach 5055 dollars per troy ounce by the end of this year. Structural factors supporting gold prices—such as a shift in U.S. monetary policy, geopolitical risk, and global fiscal instability—are still considered valid. However, with increased peak burden, there is talk that this year may see a 'box range within an upward trend' pattern. Silver prices may see much wider fluctuations depending on the course of industrial demand and the pace of global manufacturing recovery. Experts recommend a phased approach rather than chase buying. Reporter Mi-hyun Jo mwise@hankyung.com

Keynote ahead of the opening of CES 2026 OpenAI president who signed a tens-of-billions-of-dollars deal appears as guest Lisa Su, CEO of AMD, unveiled the new graphics processing unit (GPU) Instinct MI455X at CES 2026 in Las Vegas, U.S., on the 5th (local time). The Instinct MI455, unveiled by CEO Su, improved computational performance by more than 10 times in certain models compared with the previous model, the MI355X. AMD also showcased the 'Helios' rack system for large-scale data centers. Each Helios rack houses more than 18,000 GPU compute units. CEO Su emphasized, "As the AI industry grows, we need to increase compute performance by more than 10,000 times," adding, "Helios is the next-generation platform for that." OpenAI president Greg Brockman appeared as a guest speaker at the event, drawing attention. OpenAI has signed a chip supply agreement with AMD worth tens of billions of dollars. Brockman said, "Advanced AI workloads require an enormous amount of compute resources," adding, "AMD's new hardware will make that possible." They also formalized cooperation to expand the generative AI ecosystem. Executives from video AI company Luma AI took the stage to explain the synergies with AMD hardware. Currently, 60% of Luma AI's inference workloads are running on AMD-based systems. CEO Lisa Su expressed optimism about the future of AI. She said, "Within five years, an era will come when more than 5 billion people worldwide use AI every day," and added, "We will provide optimized compute resources across all areas, from the cloud to PCs and edge computing." Las Vegas—Kim In-yeop, correspondent inside@hankyung.com

Unstable international situation… Gold prices race back to record highs Major precious metals prices New York Mercantile Exchange as of the 5th International gold prices on the 5th (local time) are again rising to record levels. Precious metal prices are showing strength due to instability in the international situation. According to Hankyung A-Cell, at the New York Mercantile Exchange (NYMEX) on that day gold closed at $4436.90 per troy ounce, up $122.50 (2.84%) from the previous trading day. Geopolitical uncertainty, including U.S. President Donald Trump's military intervention in Venezuela, has increased demand for gold as a safe-haven asset. Gold hit an all-time high of $4529.1 on the 26th of last month. It then fell to $4314.4 on the 3rd of this month before resuming an upward trend. Silver also rose. On the same day at the New York Mercantile Exchange it was $76.16 per troy ounce, jumping $5.6 (7.94%) in one day. The silver high was $77.37 on the 30th of last month, about $1 higher than that day's price. Platinum was $2269.5, up $143.8 (6.76%), and palladium was $1742.2, up $74.2 (4.45%). Reporter Park Jong-seo

"Oil companies knew we were going to do something," he claimed U.S. President Donald Trump predicted that U.S. oil companies would re-enter Venezuela after President Nicolás Maduro is ousted and that it would take less than a year and a half to increase Venezuela's oil production. In a phone interview with an NBC host on the 5th (local time), President Trump said U.S. oil companies "could bring Venezuela's oil infrastructure back into operational status" in a period shorter than 18 months, adding, "they could do it in a shorter time, but it would cost a lot of money." According to NBC, President Trump said, "A massive amount of money will have to be spent, and oil companies will spend that money and later be reimbursed by us or through (oil production) revenues." Foreign media reported experts' forecasts that restoring Venezuela's devastated oil infrastructure would require billions to tens of billions of dollars. U.S. oil companies entering Venezuela to replace and expand aging oil infrastructure and increase production is a major pillar of the 'Venezuela reconstruction project.' On the 3rd, President Trump presented the Venezuela reconstruction project alongside interim government operations until a suitable transfer of power is made. President Trump emphasized that increased oil production via U.S. companies "would lower oil prices," saying, "Having Venezuela as an oil-producing country is good for the U.S. because it can help keep oil prices low." The three major U.S. oil majors—ExxonMobil, Chevron, and ConocoPhillips—had previously invested capital in Venezuela to secure oil production facilities, but their assets were seized multiple times after a leftist government took power. Currently, all companies except Chevron have withdrawn from Venezuela. U.S. Energy Secretary Chris Wright was reported to be scheduled to meet this week in Miami with executives of major oil companies. Given the timing, it is highly likely that discussions will center on investment to rebuild Venezuela's oil infrastructure, as outlined by President Trump. When asked whether these oil companies had prior knowledge of the U.S. military operation that ousted President Maduro, Trump replied, "No," but added, "They had talked in terms of the concept of 'if we did that.'" He said, "Oil companies certainly knew we were going to do something," but "we did not actually tell them we would do it." Additionally, when asked whether an election to select a new president for the vacancy created by Maduro's ouster could be held within the legal deadline of 30 days, President Trump responded, "No. It will take time," adding, "We have to make that country healthy again." He went on to describe the arrest and transfer of President Maduro as a "historic moment," saying, "We must first fix the country (Venezuela). We cannot hold elections. The people are not even in a position to vote." Subin Park, Hankyung.com reporter waterbean@hankyung.com

"Won–dollar exchange rate of 1500 won is excessive…falling below 1400 won is also not easy" "Korea's labor and financial policies that deter foreign investment" "Concerns about inflation reignition ease…the Trump variable is a burden" The concerns of Korean economists who attended the American Economic Association (AEA) meeting held this year in Philadelphia were the exchange rate and artificial intelligence (AI). With global investment funds flowing to the United States, there was deep concern about how to defend Korea's exchange rate. In addition, discussions on how economics can contribute in relation to AI were actively held. On the final day of the American Economic Association meeting, the 5th (local time), Kim Seong-hyun, a member of the Korean-American Economic Association and a professor in the Department of Economics at Sungkyunkwan University (pictured right), said that the won–dollar exchange rate does not seem likely to exceed 1500 won, but that it will also not be easy to fall below 1400 won as in the past. He explained this is because, as the United States continues to attract global investment funds into the artificial intelligence (AI) industry, global investors do not necessarily find investing in Korea attractive. Korea lacks many factors that attract foreign investment Professor Kim diagnosed, "Exchange rates are simply determined by supply and demand, and as (due to AI, etc.) demand for dollars continues to arise, the value of the dollar rises, whereas there are not many factors that would lead foreigners to invest in our country." Some analyze that it is because Seohak ants' investment in the U.S. stock market has surged, but he said that this is not at a level that would sway the exchange rate. Professor Kim cited the Lee Jae-myung administration's labor policy and financial policy as the biggest reasons for failing to attract foreign investors. He said, "The rigid labor market structure is a factor deterring foreign investors," and added, "I would like to give an F grade on this part." Professor Kim said, "If there are companies in Korea that foreign investors consider good to invest in, they would bring money in," adding, "But currently confidence in the U.S. stock market is high, so as a result of currency supply and demand effects, (the won being undervalued) can inevitably appear." Regarding inflation, Professor Kim diagnosed that fears of a renewed surge have abated even among economists. However, he said there are many skeptical views as to whether stable figures can be maintained due to U.S. President Donald Trump's pressure on the U.S. central bank (Fed) to cut interest rates and global geopolitical tensions. U.S. state governments focus on electricity demand forecasting Jang Yu-sun, a professor at Indiana State University who attended as a member of the Korean-American Economic Association, described various situations related to AI-related investment in the United States. Professor Jang emphasized, "U.S. state governments are competitively trying to attract data centers," adding, "In particular, when a data center is established, the predictive demand for electricity and the resulting electricity price issues is very large." At this point, he explained that econometricians can build models to predict scenario-based situations. This is because while expectations for tax revenue increase when a data center is built, at the same time electricity bills that residents with voting rights must bear are likely to rise. On the other hand, Professor Kim expressed concern about the concentration of AI investment. He said, "AI does help in real life or in improving corporate efficiency, but it is not particularly translating into earnings," and forecasted, "If the timing of profit realization is later than investors' expectations, a bubble could burst due to psychological factors." Philadelphia=Park Shin-young, correspondent nyusos@hankyung.com

Jensen Huang, NVIDIA CEO, said he will release a new autonomous vehicle developed with the German automaker Mercedes-Benz in Q1 of this year. On the 5th (local time), at the Fontainebleau Hotel in Las Vegas, a day before the opening of CES 2026, Huang delivered a speech at "NVIDIA Live," saying, "NVIDIA will launch its first autonomous vehicle," and explained, "The United States is scheduled for Q1, Europe for Q2, and Asia for Q3–Q4." He also unveiled the autonomous driving AI model 'Alpamayo.' He said, "Alpamayo was trained end-to-end (end-to-end) from camera input to output." NVIDIA added that it currently possesses the driving capabilities at Level 4 (L4: a situation where full autonomous driving is possible in limited areas) required to operate robotaxis, as well as the manufacturing ecosystem to realize this in the real world. Huang said, "In the future, all cars will move on their own driven by AI," and emphasized, "I am confident that autonomous vehicles are the largest physical AI industry." Las Vegas=Park Ui-myeong / Kang Haeryeong reporters hr.kang@hankyung.com

Right after market close, Jensen Huang CES keynote Closed slightly down as there were no surprise remarks yet NVIDIA closed slightly lower ahead of Jensen Huang, NVIDIA's chief executive officer (CEO), delivering a keynote at CES, the world's largest consumer electronics and information technology (IT) exhibition. On the 5th (local time) in New York trading, NVIDIA closed down 0.39% at 188.12 dollars. It was also down 0.22% in after-hours trading. This is believed to be because CEO Huang had not yet made a 'surprise remark' in his keynote that would astonish the market. CEO Huang is giving his CES keynote in Las Vegas starting at 4 p.m., immediately after the market close (6 a.m. KST on the 6th). Su-bin Park, Hankyung.com reporter waterbean@hankyung.com

Major indices on the U.S. New York market all rose. Although geopolitical tensions flared after the U.S. invaded Venezuela, the market appeared busy looking for beneficiary stocks. On the 5th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 48,977.18, up 594.79 points (1.23%) from the previous session. The Standard & Poor's (S&P) 500 index rose 43.58 points (0.64%) to 6,902.05, and the Nasdaq closed up 160.19 points (0.69%) at 23,395.82. The Dow Jones index set a new intraday record and also closed at a record high. By sector, financials and energy rose more than 2%, while consumer discretionary, materials and industrials rose more than 1%. Utilities fell 1.16%. The U.S. said it would arrest Nicolás Maduro, President of Venezuela, and intervene in rebuilding Venezuela's oil industry, drawing the market's attention to related stocks. Estimates suggest that restoring Venezuela's oil infrastructure could cost about $100 billion over the next 10 years. Among major U.S. refiners, Chevron — the only company currently doing business in Venezuela — drew market attention as its shares jumped 5.1%. Exxon Mobil rose 2.21% and ConocoPhillips rose 2.59%. Oilfield services and equipment manufacturers also drew significant attention. Within the oil equipment and services index, Schlumberger, the largest by market capitalization, jumped 8.96%, Baker Hughes rose 4.09%, and Halliburton jumped 7.84%. Valero Energy also surged 9.23%. Valero is based on the Gulf of Mexico coast and is regarded as one of the few companies capable of processing large volumes of heavy and sour crude oil (crude with high sulfur content). U.S. President Donald Trump warned that, after Venezuela, he could topple regimes in Iran, Cuba and Colombia as well, boosting defense stocks. Lockheed Martin rose 2.92%. Sam Stovall, chief investment strategist at CFRA Research, said, "In the short term, oil prices could rise due to uncertainty over supply and transportation," while adding, "In the long term, because the situation has deteriorated over the past few years, U.S. intervention could lead to positive outcomes." Bank stocks also rose on expectations of indirect benefits from a Maduro regime collapse. JPMorgan rose 2.63%, Bank of America 1.68%, Morgan Stanley 2.55%, and Goldman Sachs 3.73%. Venezuela has been in default on more than about $60 billion of external debt since 2017. If Maduro is ousted and U.S.-Venezuela relations normalize, restructuring of Venezuelan sovereign debt and bonds of the state oil company (PDVSA) is likely to accelerate. Investment banks could expect large advisory fees and transaction brokerage revenues in the process. Among mega tech companies with market capitalizations over $1 trillion, Amazon and Tesla rose around 3%, while Apple, NVIDIA, Broadcom and Microsoft fell about 1%. The U.S. manufacturing sector remained in contraction for the 10th consecutive month. The Institute for Supply Management (ISM) reported that the December manufacturing purchasing managers' index (PMI) was 47.9, down 0.3 points from November's 48.2. According to the Chicago Mercantile Exchange (CME) FedWatch tool, the federal funds futures market priced in an 83.9% probability of a rate hold in January, nearly unchanged from late the previous trading session. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) rose 0.39 points (2.69%) to 14.90. Jin Young-gi, Hankyung.com reporter young71@hankyung.com

Manufacturing pain as new orders decline and tariffs raise input costs In 2025, marked by Trump's tariffs, U.S. manufacturing activity contracted by the largest margin in a year. New orders fell and input costs rose due to tariffs, prolonging the sector's difficulties. On the 5th (local time), the Institute for Supply Management (ISM) said the U.S. manufacturing index for December fell to 47.9 from 48.2 the previous month. The figure recorded below 50 for the 10th consecutive month. Fifty is the threshold dividing contraction and expansion. The fact that the U.S. manufacturing index has continued to decline for 10 consecutive months suggests that the Trump administration's policy of imposing tariffs in the name of reviving U.S. manufacturing has dealt a heavy blow to domestic manufacturers. According to Reuters, the average tariff on U.S. imports estimated by the Yale Budget Research Institute rose from 3% at the end of the year before President Trump to an average of 17% at the end of last year. This implies import prices became 14% points more expensive. In this indicator, raw material costs recorded 58.5 last month, 6 points higher than at the end of 2024. This is interpreted as reflecting high tariffs on raw materials such as steel and aluminum. Amid weak demand, manufacturing employment fell for the 11th consecutive month. This is the longest employment downturn in about five years by ISM measures. The U.S. Bureau of Labor Statistics (BLS) manufacturing employment index for November fell to its lowest level since March 2022. According to Reuters, excluding sectors that have prospered from the artificial intelligence boom, the import tariffs that President Trump touted as a means to revive domestic manufacturing are weakening the sector. Economists have argued that returning manufacturing to its former glory is impossible due to structural problems such as labor shortages. Nevertheless, economists expect that, aided by a surge in technology investment led by the artificial intelligence (AI) sector and the Trump administration's tax-cut policies, manufacturing could partially rebound in 2026. Kim Jeong-a, guest reporter kja@hankyung.com

Summit at the Great Hall of the People in Beijing on the 5th "China–Korea relations placed in an important position in peripheral diplomacy" "Surpass social systems to achieve common development" Chinese President Xi Jinping met with President Lee Jae-myung on the 5th and strongly expressed the desire for Korea–China friendship. He also emphasized that Northeast Asian peace and stability must be jointly safeguarded. Highlighting that Korea and China defeated Japanese militarism at the cost of sacrifices, he directly targeted Japan. On the second day of President Lee's state visit to China, the two met for a summit at the Great Hall of the People in Beijing. It was the first summit diplomacy for both presidents this year. The two leaders met again two months after their summit in late November last year on the occasion of the Gyeongju Asia-Pacific Economic Cooperation (APEC) summit. According to China Central Television (CCTV), President Xi said at the meeting, "China has always placed China–Korea relations in an important position in peripheral diplomacy," and "maintains policy continuity and stability toward Korea." He added, "China will, together with Korea, firmly adhere to the direction of friendly cooperation and, following the principles of reciprocity and win-win, promote the China–Korea strategic cooperative partnership to advance on a healthy track." He also stressed that "the welfare of the peoples of both countries should be substantially improved, and they should provide positive momentum for regional and global peace and development." He emphasized a history of mutual achievements. He said, "The two countries have achieved mutual accomplishments and common development beyond differences in social systems and ideologies," and added, "We should continue this excellent tradition, continuously enhance mutual trust, respect each other's chosen development paths, take each other's core interests and major concerns into consideration, and properly resolve differences through dialogue and consultation." He said, "China and Korea are economically closely connected, and their industries and supply chains are deeply intertwined," and "we should strengthen the linkage of development strategies and policy coordination and further enlarge the pie of common interests." In particular, he explained that more cooperative results should be produced in emerging fields such as artificial intelligence (AI), green industries, and the silver economy. Criticism of Japan and the United States also followed. President Xi said, "The current international situation is becoming more complex and unstable," and "China and Korea bear an important responsibility for safeguarding regional peace and promoting global development." He added, "We must firmly stand on the historically correct side and make the right strategic choices," and said, "Some 80 years ago, the two countries endured enormous national sacrifices and achieved victory against Japanese militarism." He said, "Today we must cooperate more to safeguard peace and stability in Northeast Asia," and "as beneficiaries of economic globalization, China and Korea jointly oppose protectionism, practice genuine multilateralism, and contribute to an equitable and orderly multipolar world and inclusive and universal economic globalization." After the summit, the two countries signed 15 cooperation documents in fields including scientific and technological innovation, ecological environment, transport, and economic and trade cooperation. CCTV also focused on reporting that Peng Liyuan, President Xi's wife, socialized with Kim Hye-kyung, President Lee's wife, prior to the summit. It particularly emphasized the honor guard formation and the playing of both countries' national anthems while evaluating the significance of the bilateral summit in detail. Beijing = Correspondent Kim Eun-jung kej@hankyung.com