Korea Economic Daily

Targeting around 1,400 items including steel, automobiles, and clothing Mexico will impose tariffs of up to 50% on certain items imported from countries that have not signed a Free Trade Agreement (FTA) with it, including South Korea, starting from the New Year. As a result, South Korea's export costs to Mexico are also expected to rise sharply. On the 30th (local time), according to the Mexican presidential office website and the federal gazette, the Mexican government will implement from the 1st of next month an amendment to the General Import and Export Tax Law that imposes tariffs of 5–50% on a total of 1,463 items, including automobiles, textiles, plastics, steel, home appliances, furniture, shoes, and paper. The top rate of 50% applies to finished vehicles (including electric vehicles) such as passenger cars, trucks, and tractors. Auto parts will be subject to tariffs of 7–36% depending on the item. Other items, excluding automobiles, will generally face tariffs in the range of 5–35%. Of the total items affected, 316 had previously been duty-free. Countries subject to the tariffs include South Korea, China, India, Vietnam, Thailand, Brazil, Indonesia, Taiwan, the United Arab Emirates (UAE), and South Africa. In contrast, the United States and Canada, which are parties to the United States–Mexico–Canada Agreement (USMCA), as well as the European Union (EU) and Japan, which have bilateral FTAs, are excluded from this measure. The Mexican government has also included a provision in the bill allowing import tariff rates to be adjusted flexibly to leave room for future negotiations. This action is interpreted as a move that aligns with the protectionist stance and anti-China pressure policies of the Donald Trump administration in the United States. The Mexican presidential office also presented a goal to increase the domestic share in the production value chain to 15%, and to raise domestic investment to 28% of GDP through the 'Made in Mexico' program, creating 1.5 million jobs. Ha Ji-eun reporter hazzys@hankyung.com

On the 31st, the last day of the year, the Seoul foreign exchange market was closed. The daytime trading closing price of 1439 won recorded on the previous day, the 30th, was recorded as the year-end closing price. After weekly trading ended, the exchange rate rose again to 1450 won per dollar, but the overnight trading close that ended at 2 a.m. on the 31st closed at 1439 won 50 jeon. After aligning with the weekly closing price, it was closed until the 1st. That the foreign exchange market takes one day off at year-end is a 'tradition' that has continued for 20 years. In March 2005, the Seoul Foreign Exchange Market Operation Council designated the last business day of the year as a non-trading day through the "Measures to change foreign exchange trading hours through foreign exchange brokerage firms." If the 31st is a weekday, it closes that day; if it is a weekend, it closes on the previous business day. A year earlier, in 2004, the market was open on December 31 and the closing price was recorded as 1035 won 10 jeon, but in 2005 the closing price for that year was determined to be 1011 won 60 jeon, recorded on December 29 rather than on the last business day, December 30. The Foreign Exchange Market Council's decision to take a year-end break was a measure to align with the securities market. At that time, the stock market was already closed at year-end. The council explained it was "a measure to correct the lack of linkage with the capital market." The practice of the stock market taking a year-end break dates back to 1977 when the KOSPI started. Until 1985, trading was conducted manually, so it was not possible to close the year while the market was open. At that time, the stock market stopped for seven trading days at year-end to carry out settlements. From 1985 to 1992 it was closed for five days, and afterwards it was closed for three days. It was reduced to one day starting in 2001. It was not only the year-end closure that was aligned. In the early 2000s, the foreign exchange market continued efforts to match opening hours with the stock market. In 2003, the opening hours, which had been from 9:30 a.m. to 4:30 p.m., were changed to 9 a.m. to 4 p.m. to match the start time with the stock market. Around that time, the lunch break was also abolished. The stock market had already removed its lunch break in 1997, but the foreign exchange market was about six years late. In 2005, the closing time was moved up to 3 p.m. to fully align trading hours with the stock market. When the stock market pushed its closing time back to 3:30 p.m. in 2016, the foreign exchange market followed suit. Reporter Kang Jin-gyu josep@hankyung.com

The U.S. midterm elections scheduled for this November are a midterm assessment of a potential second Trump administration and a 'barometer' that can gauge the future direction of the presidency. In last year's elections the Republicans swept the presidency, the Senate, and the House. That provided a strong backdrop enabling the Trump administration to boldly push through even potentially controversial early policies. If either the Senate or the House loses its advantage to the Democrats in the midterms, many policies will find it difficult to get past the congressional barrier. Because they would be frequently exposed to risks such as a federal government shutdown, concerns about an 'early lame-duck' period are expected to grow. This year's congressional midterms involve 35 Senate seats and 435 House seats. The Senate (100 seats), which has six-year terms, holds elections for one-third of its seats every two years. Although 33 seats are normally up for regular election, this year an additional Senate seat will be elected to succeed J.D. Vance, U.S. Vice President (Ohio), and Marco Rubio, U.S. Secretary of State (Florida), who had been filling vacancies in an acting capacity. Of the 35 seats, 13 are ones the Democrats must defend, and the remainder are seats the Republicans must defend. In the Senate, the Republicans hold 53 of the 100 seats. While it is not highly likely they will lose more than four seats, political experts expect some seats to flip to the Democrats. Particularly notable are competitive states such as Georgia (Democratic·Jon Ossoff), Maine (Republican·Susan Collins), North Carolina (Republican·Tom Tillis), and Michigan (Democratic·Gary Peters), among others. Michigan, which leaned considerably toward the Republicans in last year's presidential election, is a barometer of sentiment in the Rust Belt. With incumbent Peters retiring, the election is expected to show clear partisan preferences. There is also interest in whether Senators Collins and Tillis, who at times have opposed President Trump and shown a 'my way' stance within the Republican Party, can win without Trump's support. All 435 House seats are up for election. Currently the Republicans hold 220 seats in the House, only slightly above the majority threshold (218 seats). In addition, Representative Marjorie Taylor Greene (Republican·Georgia) has signaled she will retire in January. The Democrats have 213 seats, and two seats are vacant. Former House Speaker Nancy Pelosi (Democratic·California), who has announced her retirement, has asserted that the Democrats will regain majority status in the House this year. Of the 50 U.S. states, 36 will hold gubernatorial elections. In addition, many key positions such as state attorneys general will change hands, and most state legislatures will be newly elected. Gubernatorial elections can also serve as a litmus test of public sentiment. Georgia Governor Brian Kemp (Republican), where many Korean companies are located, cannot run due to a three-term limit, so both parties are expected to fiercely contest the seat. The New York governorship, for which Representative Elise Stefanik (Republican·New York) has declared her candidacy, is also receiving intense attention. If candidates supported by President Trump suffer major defeats in the elections, or if several 'non-Trump' Republicans win within the party, those outcomes, together with the Supreme Court's reciprocal tariff ruling expected as early as this month, could become major factors affecting President Trump's grip on power. Washington = Sang-eun Lee, correspondent selee@hankyung.com

'AI Framework Act' about to take effect Must prepare for strengthened governance regulation such as designation of responsible persons The emergence of new task performers: AI agents and legal gaps On January 22, 2026, the Artificial Intelligence (AI) Framework Act will come into force. This law focuses not on whether AI is 'used' but on 'how it is operated as a trustworthy accountability system.' Although it adopted a promotion-centered, loose regulatory regime, the governance framework has in fact been strengthened, for example by elevating the National AI Strategy Committee and mandating a Chief AI Officer (CAIO). At this point, AI in the financial sector evolves beyond simple inquiries and recommendations into 'task performers.' The 'agentic AI' presented by the Institute for Information and Communications Technology Planning and Evaluation refers to AI that makes decisions and acts on its own, and it is expanding into loan screening assistance, asset allocation execution, anomaly transaction detection, and so on. The problem is a legal gap. Current regulations assume that a 'person' performs tasks, so the locus of responsibility is unclear when AI performs them. For example: if AI assigns low credit scores to certain occupational groups? Due to the black-box nature of deep learning models, it is difficult to explain "why such a judgment was made." If an investment advisory service using the ChatGPT API provided false information because of hallucination? If an incomplete sale occurred during a sales process using AI, can full responsibility be imposed on the financial company, or on the AI model provider? As AI agents evolve into task performers, explainability, recordability, and the design of human intervention points become central to disputes. Although the Personal Information Protection Commission's guidance, released in August 2025, reflects this awareness of the issue, concrete legal standards that reflect the characteristics of the financial sector are still lacking. Ultimately, the situation requires designing well 'who is responsible for the outcome' rather than 'what the AI did.' From physical separation to logical control: a philosophical shift in network separation regulation 2026 is the year the Financial Services Commission's network separation improvement roadmap enters its third phase (stabilization). Through the tentatively titled "Digital Financial Security Act," a legal foundation will be established for shifting from micro technical regulation to principle-based regulation. Financial companies will be able to choose network configuration methods based on their own risk assessments, and the specific application of logical network separation technologies is expected to be discussed for information systems other than core banking and parts of the account system. This is not a simple IT policy change. Financial authorities no longer instruct 'which technology to use.' Instead, financial firms are expected to design logical control systems such as zero trust and cloud configuration management themselves, and take full responsibility for the results. The fact that the first keyword among the 2026 top 10 trends presented by the Financial Security Institute is 'financial company-led security' demonstrates this philosophical shift. Legally, this means the question shifts from "Did you comply?" to "Who is responsible?" However, easing network separation accelerates innovation while rapidly increasing dependence on third parties. Supply chain risks such as cloud infrastructure failures, OpenAI API outages, and open-source vulnerabilities translate directly into financial service disruptions. As control methods change, the areas that are uncontrollable also increase. So what should be prepared? The characteristic of 2026 digital finance legislation is that it emphasizes principles and responsibility rather than detailed provisions. In the past, the question might have been "Did you comply with Article 00 of the Electronic Financial Supervisory Regulations?" Now the question is "How did you design a system to identify and control risks?" The legal status of AI agents is unclear, the relaxation of network separation has increased uncontrollable areas, and accountability charts make it difficult to capture complex collaborative structures. In this legal vacuum and uncertainty, financial companies must design their own accountability systems. Specifically, they should clearly design log recording systems for AI decision-making and human intervention points, specify responsibility-sharing clauses and incident response processes in contracts with third-party cloud and SaaS providers, and align accountability charts with actual decision-making structures. Notably, these changes are not tasks for compliance or IT departments alone. As digital transformation becomes a core strategy for financial firms, how the board and management design and operate risk management systems is emerging as an important management agenda. 2026 will be a turning point to verify whether these new accountability systems actually operate. The Future Finance Strategy Center of Bae, Kim & Lee Law Firm (Center Director: Advisor Han Jun-seong) was launched in May 2024 and has formed a top-tier team of experts in finance and IT fields—including virtual assets, electronic finance, regulatory response, and information protection—in line with accelerating digital innovation in the financial sector and the advancement of financial technology.

This year the value of the Thai baht has risen sharply. Some say it is a strange phenomenon. Recently, the Thai economy has been plagued by several factors such as structural weakness in manufacturing, household debt amounting to 90% of GDP, and political uncertainty. Up more than 10% this year According to Reuters and the Bank of Thailand (BoT) on the 31st, as of December 23 the value of the Thai baht has risen more than 10.3% against the US dollar since the beginning of the year (fall in the baht exchange rate). It recorded the second-highest appreciation among Asian currencies. As of the previous day, the baht had strengthened to around 31.1 baht per dollar, reaching its highest level in four years. Normally, an emerging market currency needs strong economic growth, a large current account surplus, or inflows of foreign direct investment (FDI) to appreciate more than 10% in a year. But recent Thai economic conditions are the opposite. According to the Federation of Thai Industries (FTI), operating rates in key sectors such as automobiles and electronic parts manufacturing are declining. The recovery in tourism revenue is slower than expected. The interest rate gap with the US Federal Reserve (Fed) remains, creating pressure for capital outflows. Despite this, the baht appreciated an additional roughly 2.5% since early December. One analysis points to 'digital gold trading' as the background of this phenomenon. International gold prices have risen about 70% this year, surpassing $4,400 per ounce. Thais, known for their fondness for gold, sold large amounts of gold through smartphones and other means. In the past, when gold prices rose Thais would line up at red gold shops in Bangkok Chinatown to sell physical gold necklaces. That method required physical movement time, so selling shocks were dispersed over several days. But now people sell gold via smartphone apps. Analysts say this difference in speed has had a large macroeconomic impact. Transactions that move only numbers on apps without physical gold trade surged, completely distorting supply and demand in the foreign exchange market. Fintech that increased trading speed Thailand has traditionally been a country with active gold trading. But this year's gold craze is different from the past. Large Thai gold trading companies such as Hwasengheng, 'MTS Gold', and 'YLG Bullion' have pursued digital transformation over the past few years. Trading platforms they launched, like 'Gold Now', created an environment where people can buy and sell gold in real time with small amounts of 1000 baht (about 40,000 won) without collateral. This digital infrastructure turned millions of individual investors into direct participants in the foreign exchange market. The mechanism works differently than before. First, when international gold prices hit record highs, Thai individual investors sell large amounts on apps to realize gains. Major gold dealers operating the platforms must settle with customers in baht. At the same time, dealers sell their holdings on the international market to avoid price decline risk in their gold inventory. The settlement currency for international gold trading is the US dollar. Dealers who sell gold abroad receive large amounts of dollars and then flood the Thai foreign exchange market to buy baht. A loop is formed: 'surge in gold sales → large dollar inflows → concentrated baht buying → sharp fall in the exchange rate (rise in baht value)'. When trading was mainly offline in the past, this process was spread out over time. But online platforms accelerated it to high-frequency trading levels. According to data released by the Bank of Thailand on the 23rd, on days when the baht's value surged, inflows related to gold trading accounted for about 50% of total baht buying flows. A distorted structure also solidified where dollar net sales by gold-related companies surged to 40–50% of the country's total dollar net sales. Vithai Ratanakorn, governor of the Bank of Thailand, said, "The trading volume of major gold dealers could approach about 50% of Thailand's annual GDP." On certain trading days, the daily trading value on digital gold trading platforms even exceeded the total trading value of the Stock Exchange of Thailand. Growing concern over 'gray capital' There is also analysis that the baht's surge was not caused solely by Thai people's gold trading. Some point to ties with so-called 'gray capital.' Thai authorities suspect that a significant portion of the recent surge in gold trading is linked to neighboring Cambodia and cryptocurrencies. According to Thai Customs data, Thailand's gold exports to Cambodia from January to July amounted to 71.3 billion baht, up 19% year-on-year. Cambodia, with a population of only 17 million and a low per capita GDP, has emerged as Thailand's second-largest gold export destination after Switzerland, the 'world gold refining hub.' Kriangkrai Thiennukul, chairman of the Federation of Thai Industries, called it "a very suspicious phenomenon," noting "there is a high possibility that gray business players such as scammers or casinos are using gold as a money laundering tool." Experts analyze the money laundering route as follows. Criminal organizations convert illegal proceeds from voice-phishing or online gambling into hard-to-trace stablecoins (USDT). Using these coins, they buy gold near the Cambodian border. They then pass the purchased gold to Thai gold traders as if it were legitimate exports or smuggle it in, and sell it again to launder it into 'clean cash (baht or dollars).' Vithai Ratanakorn, governor of the Bank of Thailand, explained in a recent interview with Reuters, "If exporters send gold to Cambodia and receive payment in cryptocurrency, the central bank cannot track that flow." Thailand's digital gold platforms have become laundering hubs for criminal funds in Southeast Asia, and the massive foreign exchange demand generated in this process has abnormally pushed up the Thai baht, forming a vicious cycle that threatens the real economy. Thai authorities took action. From the 29th, the Bank of Thailand made it mandatory to verify the source of funds for resident dollar sales (baht conversions) for transactions exceeding $200,000 per transaction. Especially for 'gold sale proceeds,' foreigners must submit a strict 'three-piece set'—actual overseas gold sale certificates, invoices, and customs documents—without exception to allow currency exchange. The Bank of Thailand explained, "Transactions exceeding $200,000 account for only 15% of the number of transactions but 85% of the total amount." The Thai Ministry of Finance said it is considering imposing a specific business tax on gold transactions conducted through online platforms. However, there is considerable backlash and concern about side effects in the market. Critics argue that excessive regulation will shrink the gold trading market and actually expand underground transactions. Giti Tangsisapakdi, president of the Thai Gold Traders Association, strongly opposed, saying, "If taxes are imposed, Thailand's gold trading industry itself will decline, and given the large scale of online transactions, widespread shocks are a concern." If a tax is imposed on a liquid market, related funds can easily flow to jurisdictions with looser regulations. If Thailand imposes taxes and restrictions, related funds could move to places like Dubai. The 'paradox of regulation' is raised: regulation could erode the competitiveness of Thailand's financial market and accelerate capital outflows. The core driver is the 'gold rush' The fundamental driver that triggered this year's Thai baht situation is the global 'gold rush.' According to the World Gold Council (WGC), global central bank net purchases of gold amounted to 53 tons in October, a 36% month-on-month surge. Emerging market central banks such as Poland (16 tons) and Brazil (16 tons) rushed to hoard gold, making the floor for gold prices even firmer. Geopolitical uncertainty and concerns about the US fiscal deficit overlapped, accelerating the 'de-dollarization' movement. This large demand pushed up gold prices. J.P. Morgan's Gregory Scherrer, a commodity strategist, said, "Gold prices have entered a structurally bullish market, and may surpass $5,000 per troy ounce by the fourth quarter of next year," offering a somewhat aggressive outlook. Vietnam and India face similar dilemmas. The State Bank of Vietnam resumed gold bar auctions and intervened in the market, and India is desperately trying to curb smuggling through tariff adjustments. The structural distortion and increased volatility of the Thai baht are delivering direct blows to Korean companies. Korean manufacturers that use Thailand as a major production base face the double burden of "rising costs" and "foreign exchange losses." There are strange signals on the Korean export front as well. As of last month, Korea's exports to Thailand amounted to $726 million, up 12.9% year-on-year. On the surface this looks like good news. The baht's strength has improved the purchasing power of Thai importers, enhancing the price competitiveness of Korean products. However, analysts say this may be a short-term 'illusion.' If the Thai economy itself loses competitiveness due to a high-cost structure, orders for Korean parts imported into Thailand for assembly and re-export could decrease. In the long term, some say this could be a precursor to a 'supply chain domino' collapse that threatens the ecosystem of Korean companies in Thailand. Kim Ju-wan, reporter kjwan@hankyung.com

President Donald Trump is scheduled to meet with Chinese President Xi Jinping four times this year. The outcome of these meetings is expected to determine the direction of world politics and the global economy. Under Trump's second-term administration, U.S.-China conflict escalated sharply and then showed signs of easing. President Trump opened hostilities by applying high tariffs reaching up to 145%, but China countered with prepared measures such as the rare-earths export control card. It was a scene that once again confirmed the importance of 'supply-chain security' identified during the COVID-19 period. This war entered a truce when the two leaders met in Busan at the end of October for the first time in six years. The United States lowered tariff rates on China, and China postponed rare-earths export controls for one year. Since then, the two countries have been conducting cautious explorations without provoking each other's 'red lines.' The first touchstone for gauging the relationship between the two countries will be President Trump's visit to China, scheduled for April. While President Trump will focus on economic issues such as getting China to buy more U.S. agricultural products, President Xi is likely to raise sensitive security issues including Taiwan. If the meeting proceeds smoothly, Xi is expected to make a reciprocal visit to the United States in midyear. It is difficult to predict whether he would go to Washington, D.C. or the Mar-a-Lago resort in Florida. The two leaders could also meet twice more at the APEC summit in Shenzhen in November and the G20 summit in Florida in December. Frequent meetings between the two leaders would indicate a relaxation of tensions. In that case, the global economy is expected to be positively affected. It could also be a favorable sign for South Korea's export conditions, given its deep economic ties with both countries. However, the two countries are likely to fundamentally continue their tense relationship. Despite last year's truce decision, several unresolved issues remain. U.S. Treasury Secretary Scott Bessent predicted that a U.S.-China trade agreement on rare earths could be concluded by Thanksgiving at the end of November, but no progress has yet been reported on this issue. The prevailing view is that China will never give up control over key industries. The issue of ByteDance's subsidiary TikTok being sold to U.S. investors has also seen a year of reports saying it is 'almost done.' Some tariff adjustments and expanded cooperation may take place, but regulation and competition over core technologies and strategic resources are expected to remain. On security issues, the confrontational dynamic between the two countries becomes more pronounced. In the National Security Strategy (NSS) released in early December, the United States took the unusually cautious stance of not referring to China as an enemy, but it clearly expressed its willingness to defend Taiwan. It cited economic reasons such as the need to guarantee freedom of navigation. President Trump downplayed China's large-scale encirclement drills around Taiwan at the end of last month as "something they've been doing for 20 years," but the U.S. Department of Defense issued a report at the end of last year stating that "China expects to have the capability to fight and win a war over Taiwan by 2027." Washington = Sang-eun Lee, correspondent selee@hankyung.com

◆ New York stocks weakened for a third consecutive day ahead of the final trading day of the year The three major New York indices continued to weaken for a third consecutive day on the 30th local time. With no market-moving developments a day before the final trading day of the year, investors maintained a selling bias. At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 48,367.06, down 94.87 points (0.20%) from the previous close. The Standard & Poor's (S&P) 500 index fell 9.50 points (0.14%) to 6,896.24, and the tech-heavy Nasdaq index closed at 23,419.08, down 55.27 points (0.24%). ◆ International oil prices fell as Middle East tensions over Yemen eased International oil prices edged lower. Tensions between Saudi Arabia and the United Arab Emirates (UAE) over Yemen eased, turning prices lower during the session. At the New York Mercantile Exchange, West Texas Intermediate (WTI) for February delivery next year closed at 57.95 dollars per barrel, down 0.13 dollars (0.22%) from the previous close. WTI shifted to weakness a day after rebounding more than 2% the previous day. ◆ National Assembly continues two-day 'Coupang joint hearing'…Rogers to be indicted for perjury The National Assembly continues the two-day 'Coupang incident joint hearing' today. With key witnesses, including founder Bom Kim, chairman of Coupang Inc., absent for the second day, the hearing is expected to feature questioning laced with criticism over Coupang's personal data leak, unfair trade and labor conditions, and measures to prevent recurrence. At the end of the hearing, a vote is expected to be held to indict Harold Rogers, interim CEO of Coupang, on charges of perjury. ◆ Seoul apartment transactions plunged 60% last month amid Oct. 15 measures' 'triple regulations' Last month's home sales volume fell sharply compared with the previous month under the influence of the government's Oct. 15 real estate measures. In particular, housing transactions in Seoul, which are subject to the so-called 'triple regulations,' were cut in half. According to the Ministry of Land, Infrastructure and Transport, nationwide housing sales transactions in November (by report date) totaled 61,407 cases, down 11.9% from the previous month (69,718 cases). By region, transactions in the Seoul metropolitan area totaled 22,697 cases last month, down 30.1% from the previous month (39,644 cases). Seoul recorded 7,570 cases, down 51.3% from the previous month (15,531 cases). In particular, reported apartment transactions in Seoul totaled 4,395 cases last month, plunging 60.2%. ◆ President Lee's visit to China after about six years…Can relations be consolidated and a breakthrough on the Korean Peninsula found? President Lee Jae-myung and Chinese President Xi Jinping will meet again in Beijing two months after Gyeongju. According to the Blue House, the president will make a state visit to China from the 4th to the 7th of next month and hold a summit with Chairman Xi in Beijing. If previous summits laid the groundwork for restoring Korea-China relations, this time the task will be to put that progress on a stable trajectory and secure momentum for the 'Korean Peninsula Peace Coexistence Process' the president is promoting. A South Korean presidential visit to China comes for the first time in about six years since former President Moon Jae-in in December 2019. ◆ Mostly clear on the last day of the year…daytime highs -5 to 5 degrees On Wednesday the 31st, the last day of 2025, the country will be mostly clear, but the Jeolla region and Jeju Island will be cloudier. Cold air descending from the northwest will make morning temperatures mostly below -5 degrees (below -10 degrees mainly in inland Gyeonggi and inland/mountain areas of Gangwon). Daytime temperatures are forecast at -5 to 5 degrees. There may be snow on the Jeolla west coast until the morning, light snow in the southern Chungcheong region until morning, and trace snow under 0.1㎝ in Jeju mountains in the afternoon. The west coasts of North Jeolla and South Jeolla may see less than 1㎝ of snow or less than 1㎜ of rain. Oh Jeong-min, Hankyung.com reporter blooming@hankyung.com

4th quarter deliveries: 422,850 vehicles Expected to decrease 15% year-on-year Vehicle sales expected to decline for a second consecutive year Tesla released sales estimates that include a vehicle delivery outlook lower than market expectations. It is regarded as an unusual move for Tesla to officially post analysts' average sales forecasts. According to material on Tesla's website on the 30th (local time) that compiled analysts' average projections, fourth-quarter vehicle deliveries are expected to average 422,850 vehicles, a 15% decrease year-on-year. This is lower than the Bloomberg compilation average of 440,907 vehicles (an 11% decrease year-on-year). Tesla had been collecting sales estimates through its IR department and sharing them only with certain analysts and investors, but had not publicly posted them. Gary Black, co-founder of Future Fund Advisors, told Bloomberg it was "very unusual" and said "it appears Tesla wanted to publicize as widely as possible the consensus derived internally through IR." He forecast that Tesla's actual fourth-quarter delivery number is likely to be around 420,000 vehicles. Tesla is also expected to see vehicle sales decline for a second consecutive year on an annual basis. According to the company's compiled average forecast, annual deliveries for this year are about 1.6 million vehicles, which appears to be down more than 8% from the previous year. Sales forecasts for the next three years were also presented below Bloomberg's compiled figures. After the disclosure of these forecasts, Tesla's stock fell as much as 1.3% intraday but later recovered most of the losses. Tesla's weak sales have continued since the beginning of the year. Production disruptions occurred in the process of retooling production lines at factories worldwide for a partial refresh of the best-selling Model Y. This period also coincided with Elon Musk, Tesla's CEO, performing a controversial role in the Trump administration. However, in the third quarter, vehicle deliveries reached a record high as U.S. consumers rushed to purchase to receive the federal electric vehicle tax credit of $7,500, which ended at the end of September. Tesla subsequently launched low-priced models of the Model Y sport utility vehicle (SUV) and the Model 3 sedan priced below $40,000 from the beginning of the fourth quarter to offset the demand slowdown following the end of the tax benefit. New York = correspondent Shin-young Park nyusos@hankyung.com

SoftBank's stake in OpenAI exceeds 10% Part of the investment will be allocated to the 'Stargate' project Japan's SoftBank Group has fully executed the $40 billion investment commitment to OpenAI. CNBC reported on the 30th (local time), citing sources, that SoftBank completed the investment execution last week by transferring the final investment of $22 billion to $22.5 billion. Sources requested anonymity to discuss transaction details. SoftBank previously invested $8 billion directly in OpenAI, the developer of ChatGPT, and together with co-investors raised an additional $10 billion. This investment is reported to have pushed SoftBank's stake in OpenAI past 10%. In February, CNBC reported that SoftBank was in the process of finalizing a $40 billion investment in OpenAI. At that time, the funds were scheduled to be paid in installments over 12 to 24 months. Part of the investment is known to be planned for use in OpenAI's artificial intelligence infrastructure joint project 'Stargate', which involves SoftBank and Oracle. With the recent expansion of AI application services driving a surge in demand for data centers and network infrastructure, global companies' related investments are rapidly increasing. OpenAI has finalized infrastructure investment plans totaling more than $1.4 trillion over the coming years, including contracts with Nvidia, AMD, and Broadcom. SoftBank has continued aggressive investments in technology and AI companies and is also known as an early investor in Nvidia. Recently, it agreed to acquire data center investor DigitalBridge for $4 billion to strengthen its AI strategy. Last month, SoftBank sold all of its Nvidia shares worth $5.8 billion. Sources at the time said that the sale and other cash-raising measures were intended to finance the OpenAI investment. Meanwhile, OpenAI, which is reported to be preparing for an initial public offering (IPO), has received billions of dollars in investment from Microsoft. Recently, it is also reported to be considering securing more than $10 billion in investment from Amazon. Also, Disney recently participated in a $1 billion equity investment. As a result, users of OpenAI's video generation model 'Sora' can now create content using Disney's licensed characters such as Mickey Mouse. New York = Shin-young Park, correspondent nyusos@hankyung.com

Some members "Prefer to keep rates on hold for a considerable period afterwards" Downside risk to employment, upside risk to inflation The U.S. central bank (Fed) revealed that there was fierce disagreement among members over a rate cut at the Federal Open Market Committee (FOMC) meeting held on December 9–10. In the December FOMC minutes released by the Fed on the 30th (local time), it suggested that the decision to cut rates had been a much closer judgment than the final vote indicated. According to the minutes, the FOMC approved a proposal to lower the benchmark interest rate by 0.25% percentage points by a vote of 9 to 3. This was the largest number of dissenting votes since 2019. With this decision, the U.S. federal funds rate target range was lowered to an annual 3.5~3.75%. Most members agreed that further rate cuts could be appropriate if inflation slowed as expected. However, views diverged over the speed and magnitude of future rate cuts. Some members said it would be desirable to keep rates unchanged for a considerable period after this cut. Members judged that the U.S. economy would continue to grow modestly, while employment faced downside risks and prices faced upside risks. There were large differences in views about the relative magnitude of these risks, and the minutes suggested that the vote at the time could have gone either way. The minutes also contained the statement, "Even some members who supported a rate cut at this meeting said the decision rested on a very delicate balance, and choosing to keep rates unchanged would also have been possible." At this meeting, the quarterly Summary of Economic Projections (SEP) and the dot plot showing individual members' rate projections were also released. The 19 Fed officials attending the December meeting signaled the possibility of one rate cut in 2026 and another in 2027. In that case, the benchmark interest rate would fall to around an annual 3%, which the Fed views as the neutral level. Members who preferred to keep rates unchanged stressed that they judged progress toward the 2% inflation target had stalled in 2025, or that additional evidence was needed that inflation was converging steadily to the target. Members generally agreed that U.S. President Donald Trump's tariff policy was fueling inflation, but they expected the effect to be temporary and to ease toward 2026. Recent economic indicators show that employment has slowed but layoffs have not surged. Inflation is also gradually declining but remains distant from the Fed's target (an annual 2%). Meanwhile, third-quarter gross domestic product (GDP) grew at an annualized rate of 4.3%, showing solid growth. However, due to the effects of the government shutdown, there are data gaps in some economic indicators, and both the Fed and the market are taking a cautious approach to interpreting indicators. Accordingly, the financial market sees a high likelihood that the Fed will keep the benchmark interest rate unchanged for the time being. Meanwhile, changes in the regional Federal Reserve bank presidents who will have FOMC voting rights from next year are expected to alter the committee's tilt. Many of the newly voting officials have shown a cautious stance toward rate cuts in the past. At this meeting, the Fed also decided to resume a short-term Treasury purchase program to stabilize the short-term funding market. The Fed will purchase short-term Treasuries at a pace of $40 billion per month to prevent reserve balances in the banking system from declining excessively. New York = Park Shin-young, correspondent nyusos@hankyung.com

Gold prices hit record highs and plunged due to profit-taking and margin increases "Investment, which accounts for 43% of this year's gold demand, may slow down" "Structural supply constraints and strong demand remain… the rally is not over" Soaring gold and silver prices hit record highs and then plunged. When the Chicago Mercantile Exchange (CME) raised margin requirements for futures trading of major metals, profit-taking selling poured in and volatility widened. Market participants suggested that the upward trend in gold and silver prices might be broken. According to Investing.com on the 30th, the previous trading day's spot gold price closed at $4332.08 per ounce, a drop of 4.79%. During the session it hit an all-time high of $4550.10 per ounce before plunging sharply. Spot silver also closed at $72.2468 per ounce, 13.98% lower than the record high ($83.9870 per ounce) recorded on the 28th. The move followed a notice on the 26th that the CME would raise margin requirements from the 29th for futures trading in major metals including gold and silver. When futures margins rise, the cost of maintaining long positions increases. Investors who bought gold and silver aiming for price differentials are inevitably most sensitive to increases in trading costs. Demand with specific uses, such as industrial raw materials or jewelry, is likely to be relatively less affected by increases in trading costs. Seo Sang-young, Executive Director at Mirae Asset Securities, citing World Gold Council data, said, "Investment's share of gold demand has often remained in the 20% range in the past, but this year it expanded to 43%," adding, "On that basis, as gold prices surged, investment demand for silver also increased, fueling the sharp rise in silver prices." With gold and silver prices having risen sharply, the emergence of bad news more likely to affect investors triggered profit-taking selling, the interpretation goes. Although prices plunged the previous day, year-to-date gold prices have risen 65.11% (last year's closing price: $2623.81 per ounce) and silver prices have risen 150.22% (last year's closing price: $28.8738 per ounce). Opinions differ on whether gold and silver prices will shift into a downtrend. Rishabh Amin, Multi-Asset Portfolio Manager at Allspring Global Investments, told the Financial Times (FT) that "this situation corresponds to entering a very strong correction phase rather than a short-term plunge following speculative overheating." On the other hand, Jeff Kilburg, CEO and CIO of KKM Financial, called the recent plunge in gold and silver prices a "historic move," but added, "This correction is a temporary pause at year-end; given structural constraints on the supply side and strong demand, it is hard to say the rally is over." Among precious metals, gold's trend has been driven by currency values and economic growth. When the value of the anchor currency, the U.S. dollar, rises, or when industrial growth reduces gold's appeal because it does not generate added value, gold prices fall. The period when former Fed Chair Paul Volcker raised the policy rate to 18% in the 1980s and the late 1990s during the dot-com boom, when the stock market was strong, are typical examples of gold price declines. Market analysts say that if the U.S. Fed does not pursue as accommodative a policy as markets expect next year, or if the AI industry escapes bubble concerns and grows more steeply than expected, gold prices could be pressured. Seo Sang-young's advice to pay attention to increasing volatility rather than the direction of precious metals prices is also noteworthy. He said, "The CME's margin hike acts to curb leveraged use by speculative funds," adding, "As supply and demand are adjusted in the process, volatility is likely to increase whether prices rise or fall." Han Kyung-woo, Hankyung.com reporter case@hankyung.com

Aim to calm oil price declines caused by a global oil supply glut The Organization of the Petroleum Exporting Countries and allies (OPEC+) is expected to maintain its production cut plan at this weekend's meeting amid signs of a global oil supply glut. According to Bloomberg on the 30th (local time), sources said major member countries, including Saudi Arabia and Russia, are likely to maintain the November decision to halt the planned production increases for the first quarter of next year at the monthly videoconference on January 4. This is interpreted as being due to the continued decline in oil prices amid a global oil supply glut. Crude oil futures prices have fallen 17% so far this year. With global oil demand growth slowing and a surge in oil supply from OPEC+ and non-OPEC+ countries, the market is expected to record the largest annual decline since the 2020 pandemic. Forecasting agencies such as the IEA also expect the largest supply glut on record next year. The OPEC+ Secretariat, which typically issues more optimistic demand forecasts than other agencies, also anticipates a slight supply surplus. The global oil market is experiencing heightened uncertainty related to geopolitical tensions. OPEC+ member Venezuela began shutting wells after facing blockade measures by U.S. President Trump. The United States seized and pursued tankers carrying Venezuelan crude. Ukraine attacked Russian oil facilities and tankers, and as a result another OPEC+ member, Kazakhstan, was also affected. The Yemen civil war has also placed relations between Saudi Arabia and the neighboring United Arab Emirates (UAE) in an openly tense state. Saudi Arabia that day called on the UAE to stop supporting armed groups operating in Yemen. OPEC+ had cut production through the first quarter of this year since 2023 but has slightly increased production from the second quarter. Despite signs of an oil supply surplus this year, market share gains by non-member countries have led to this trend. Accordingly, OPEC+ member countries such as Saudi Arabia began restoring 2.2 million barrels per day of oil production from April this year. Contributing reporter Kim Jeong-ah kja@hankyung.com

How will the exchange rate be next year "Rise due to bargain-buying inflows" vs "Decline due to currency hedging" Opinions differ The won-dollar exchange rate finished daytime trading at 1439 won, then surged more than 10 won in night trading to touch 1450 won. Although authorities succeeded in managing the year-end closing at the 1430 won level, a rapid upward trend followed, raising concerns that the exchange rate may rise again next year. On the 30th at the Seoul foreign exchange market, the won-dollar exchange rate rose above 1440 won immediately after finishing daytime trading at 1439 won at 3:30 p.m. The rate, which had been trading in the 1443–1448 won range around 4–5 p.m., touched 1450 won at about 6:17 p.m. after the London market opened. The exchange rate rose sharply in about three hours after daytime trading ended. Although the foreign exchange authorities closed the daytime rate at 1439 won that day, importers and overseas investors, who saw the intervention strength as weaker than the day before, moved to bargain-buy, which is understood to have pushed the rate up. Night trading has low volume, so the level of the exchange rate is of limited significance, but because the magnitude of the rise is large, the market is closely watching the trend. As the rate surged after the close of daytime trading, concerns have grown that the exchange rate could rise again next year. With the foreign exchange supply-demand structure not changing significantly and the authorities' ability to intervene reduced, there are forecasts that the rate could shortly rise above 1450 won. On the other hand, some argue that if daytime trading reopens at the beginning of the year, the National Pension Service's currency hedging will be reactivated and the exchange rate could fall further. Citigroup said in a report that "the National Pension Service's strategic currency hedging will continue for a considerable period, at least through the first half of next year," and "based on estimates from the February–April cases, the NPS's hedging (using swaps with the Bank of Korea) would reduce spot dollar demand by up to about 5 billion dollars per month." Citigroup cited the Bank of Korea's measures to bolster foreign exchange reserves, such as the 'foreign currency reserve ...', which are expected to be implemented through June, as a basis for expecting hedging to continue through the first half of next year. Park Sang-hyun, senior research fellow at iM Securities, also said, "There is a large possibility that the NPS's hedging will intensify at the beginning of the year," and "it appears that, from a supply-demand perspective, it will lead to downward pressure on the exchange rate." Korea Investment & Securities forecast that, overlapping with the National Pension Service's strategic hedging effects, the won-dollar exchange rate could fall further to around 1390 won in early next year. Reporter Kang Jin-kyu josep@hankyung.com

U.S. President Donald Trump’s mediation efforts over the war in Ukraine in Europe and the Gaza war in the Middle East have not easily reached a full stop. President Trump is stepping up last-minute pressure, but it is unclear whether a formal end or ceasefire can be achieved even after the new year. Peace talks over the war in Ukraine were dampened by controversy over a drone attack on President Vladimir Putin’s residence. Russian Foreign Minister Sergey Lavrov told local reporters on the 29th (local time) that Ukraine attempted a drone attack on the president’s residence in Novgorod Oblast. A day after President Trump and Ukrainian President Volodymyr Zelensky held a press conference at Trump’s Mar-a-Lago residence in Florida and said, “We are 95% of the way to a peace agreement (President Trump),” Russia raised allegations of an “attack on Putin” and appeared to draw a line. Lavrov said a drone attack was attempted while Russia and the U.S. were negotiating to resolve the Ukraine conflict, and although there were no casualties or damage, he said Ukraine had “switched to a policy of terror” and that Russia would revise its position on negotiations. He also said that the targets and timing for retaliatory strikes by the Russian military had been decided. In connection with this, President Trump told reporters at Mar-a-Lago that he was “not pleased” about the (attack) and that it was “not good.” He said he heard about the attack directly when he spoke with President Putin that morning and that he was “very angry.” He also criticized that “now is not an appropriate time for such actions.” Ukraine, however, insisted that Russia was “lying.” Ukraine did not admit to a drone attack on Putin’s residence itself, and the matter has moved into a he-said-she-said dispute. There are also continuing criticisms that the differences between the two sides are much greater than was announced the day before. President Trump acknowledged that there are “a few thorny issues” between Russia and Ukraine. Russia demands the surrender of the entire Donbas, including the whole of Donetsk Oblast, while Ukraine says it intends to stop fighting on the current front. Regarding security guarantees for Ukraine, the U.S. and Europe are considering stationing troops in Ukraine, whereas Russia has consistently rejected such measures. European media have pointed out that security guarantees should be “imposed” on Russia rather than sought with Russia’s consent. The Guardian criticized President Trump’s remark that 95% agreement had been reached as “an extension of overly optimistic statements that began with his campaign promise to end the war within 24 hours of taking office.” The Gaza war, which saw an Israel-Hamas peace agreement concluded last October, is likewise stalled in the implementation phase. The first-stage agreement to free Israeli hostages who had been abducted has been implemented, but second-stage measures—Israeli withdrawal, formation of a new Palestinian government, creation of an international stabilization force (ISF), and the start of Gaza reconstruction—are bogged down. After meeting with Israeli Prime Minister Benjamin Netanyahu, President Trump showed strong support for Israel at a press conference and urged the disarmament of Hamas. He said he would give Hamas a “very short period” to disarm and warned that if they did not do so within that period, “terrible things will happen to them.” He also said that 59 countries supported the Gaza peace plan and that if Hamas did not disarm itself, those countries would “wipe out Hamas.” On Israel’s implementation of the peace agreement, he said he was “not worried about anything.” Regarding Israeli moves to establish settlements in the West Bank, he said, “I can’t say I agree 100%, but a conclusion will be reached soon.” Netanyahu presented President Trump with an "Israel Award" that day; Netanyahu explained that it was the first time a non-Israeli had received the award. Meanwhile, regarding China’s encirclement military exercises around Taiwan, President Trump mentioned his good relationship with Chinese President Xi Jinping and said, “He (President Xi) didn’t tell me anything about it, and I don’t think he will do that (an invasion of Taiwan).” He added, “Nothing worries me,” noting that “China has conducted naval exercises in the area for 20 years.” This view differs from external interpretations that attach deep significance to the current encirclement exercises. Washington=Correspondent Sang-eun Lee selee@hankyung.com

"I want Powell removed... a lawsuit is possible" Hassett, Warsh, Waller mentioned as candidates U.S. President Donald Trump again raised the possibility of removing Jerome Powell, chair of the U.S. central bank (Fed), increasing the pressure. He said he would announce the next Fed chair candidate next month. Trump said on the 29th (local time) at Mar-a-Lago in Florida, after a joint press conference with Israeli Prime Minister Benjamin Netanyahu, "That person (Powell) is simply incompetent," and "I could file a lawsuit against him." He also said, "I want to remove him," and "I can still do that." Trump, who has shown displeasure that Powell has been reluctant to cut the policy interest rate, also mentioned the possibility of a lawsuit last August, saying the renovation costs of the Fed building were excessive. This is interpreted as an intention to bring in a successor more inclined to cut rates before Powell's term ends in May next year. Trump said that day, "I will announce the next Fed chair candidate next month." Candidates mentioned for the next Fed chair include Kevin Hassett, chairman of the White House National Economic Council (NEC), former Fed governor Kevin Warsh, and Fed governor Christopher Waller. Among them, Hassett, regarded as a leading candidate, has made claims similar to President Trump, saying "(The Fed) should have lowered rates earlier." However, it is reported that there are opposing views within the White House, saying "he is too close to the president." There are concerns that this could limit the ability to maintain the independence of monetary policy needed to curb inflation. According to betting platform Kalshi, as of that day Hassett's chance of being nominated as Fed chair was calculated at 42%. Warsh was at 33%, and Waller at 12%. Dayeon Lim, reporter allopen@hankyung.com

Precious metals-related stocks are showing weakness. After the Chicago Mercantile Exchange (CME) sharply raised margin requirements for precious metals futures trading, gold and silver prices plunged. As of 9:22 a.m. on the 30th, ITCEN Global is trading at 29,300 won, down 2,600 won (8.15%) from the previous day. This stock operates the Korea Gold Exchange and has shown a pattern of increased volatility when precious metal prices swing. Poongsan and Korea Zinc are also down 5.9% and 3.72%, respectively. Poongsan, famous as a defense company that makes various types of ammunition, is involved in copper and brass materials, so investment sentiment appears to have worsened on the logic that its earnings could be linked to precious metals. Korea Zinc can recover gold and silver during the zinc and lead smelting process, so it is linked to precious metal price fluctuations. Other precious metals-themed stocks such as TKG Aegang (-1.97%), Elcomtec (-1%), and MK Electronics (-0.6%) are also weak. This is the aftermath of the drop in gold and silver prices. Gold futures traded overnight on the CME at $4361.2 per ounce, plunging 4.16% from the previous day ($4550.4). Silver futures also fell to $72.122, down 11.68%. The CME Group's increase in margin requirements appears to have spurred profit-taking on precious metals that have sharply risen in price this year. The CME announced on the 26th that it would raise margin requirements for various metal futures contracts, including silver and gold, starting on the 29th (local time). Han Kyung-woo Hankyung.com reporter case@hankyung.com

China "training in Taiwan's northern and southern waters"…'Taiwan encirclement drills' enter second day Jin Young-gi Hankyung.com reporter young71@hankyung.com

Major indices closed down on the New York market. With trading volume declining ahead of the year-end holidays, profit-taking selling pressured stock prices. On the 29th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 249.04 points (0.51%) to 48,461.93, the Standard & Poor's (S&P) 500 index slipped 24.20 points (0.35%) to 6,905.74, and the Nasdaq Composite fell 118.75 points (0.50%) to 23,474.35, respectively closing at those levels. Market participants leaned toward profit-taking in a quiet atmosphere. Year-to-date through this day, the S&P 500 has risen 17.41%, the Dow has risen 13.91%, and the Nasdaq has surged 21.56%. In particular, since the major indices have all risen for three consecutive years, investors' concerns about highs have grown. The artificial intelligence (AI) theme that has been leading the market has also repeatedly seen bubble debates resurface whenever it seemed forgotten. As the profit-taking mood ripened, the possibility that this year-end and New Year's Santa Rally will disappear increased. The term Santa Rally comes from statistics showing that the U.S. market has risen during the last five trading days of the year and the first two trading days of the new year. The decline in precious metal prices was also a negative for the market that day. CME sharply raised margin requirements for silver futures contracts, dampening the price's upward trend. The spot price of silver briefly surpassed $80 per ounce for the first time in overnight trading, but profit-taking selling poured in and it fell more than 9% intraday that day. Gold prices were also swept up in this trend and fell more than 4% that day. By sector in the stock market, energy, utilities, consumer staples, and real estate rose. By contrast, consumer discretionary and materials fell nearly 1%. Among large tech companies with market caps over $1 trillion, Tesla fell more than 3%. AI equipment investment firm DigitalBridge rose about 9% on news that SoftBank would move to acquire it. According to the CME FedWatch tool, the federal funds rate futures market reflected an 83.9% probability of a rate hold in January. It was 82.3% near the previous day's close. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) pointed to 14.20, up 0.60 points (4.41%) from the previous session. Han Kyung-woo, Hankyung.com reporter case@hankyung.com

◆New York stock market closes broadly lower The three major New York indexes all fell. At the New York Stock Exchange today, the Dow Jones Industrial Average fell 0.51%, the Standard & Poor's (S&P) 500 index fell 0.35%, and the Nasdaq Composite fell 0.5% from the previous trading day. Big tech companies such as Tesla, Nvidia, and Meta, which recently hit record highs, weakened across the board and dragged the indices down. It is interpreted that investors sold to realize profits ahead of the year-end. Nvidia completed the purchase of $5 billion worth of Intel shares on the day. International oil prices rebounded more than 2% amid difficulties in Ukraine negotiations and China’s willingness to stimulate the economy, lifting energy stocks such as ExxonMobil. International silver prices plunged about 9% a day after rising above $80 per ounce yesterday, a record high, amid concerns over supply shortages. ◆Kim Byung-gi to announce his position today…likely to offer a public apology Kim Byung-gi, the floor leader of the Democratic Party of Korea, is expected to offer a public apology and an explanation regarding the recent controversies. According to political circles, Kim is scheduled to directly state his position on the various allegations at a caucus strategy meeting this morning. He is facing allegations including an expensive lunch before a parliamentary audit with a former Coupang CEO, a hotel voucher worth 1.6 million won, controversies over protocol for his daughter-in-law and grandson, allegations of preferential hospital treatment for his eldest son, suspicions that his spouse privately used district council business expenses, and allegations of assisting his son who works at the National Intelligence Service. Analysts say this could be a turning point for his position, and expectations lean toward a public apology and explanation rather than resignation. ◆National Assembly holds two-day Coupang hearing starting today The National Assembly will hold a two-day hearing from today titled 'Hearing to investigate Coupang security breach and personal information leakage, unfair trade, and working environment conditions and to prepare measures to prevent recurrence.' This hearing will take the form of a joint meeting led by the Science, ICT, Broadcasting and Communications Committee under Article 63 of the National Assembly Act, with six related standing committees attending, including the Political Affairs Committee, the Land, Infrastructure and Transport Committee, the Environment and Labor Committee, the Strategy and Finance Committee, and the Foreign Affairs and Unification Committee. Thirteen people, including current and former Coupang executives, have been selected as witnesses, while Coupang founder Kim Beom-seok, chairman of Coupang Inc.'s board, submitted a letter explaining his absence. The People Power Party agreed as a party to abstain from participation, arguing that a state investigation rather than a hearing should be pursued and that the committee presiding over the hearing should be the Political Affairs Committee rather than the Science, ICT, Broadcasting and Communications Committee. ◆'Homeplus acquisition' fails…restructuring inevitable Ten months after Homeplus began corporate rehabilitation proceedings, it failed to find a buyer and submitted a rehabilitation plan to the court. According to the industry, Homeplus submitted a 'structural innovation-type rehabilitation plan' to the Seoul Bankruptcy Court yesterday afternoon — about 10 months after its proactive corporate rehabilitation application in March. It is reported to include measures to secure liquidity through the separate sale of Homeplus Express, reduce size by closing unprofitable stores, and seek a buyer for Homeplus again. The court will review the rehabilitation plan submitted by Homeplus and decide whether to approve it after consultation procedures with creditors, including meetings of interested parties. The plan is also said to include offering voluntary retirement to some long-serving employees. ◆"It's colder on the commute than yesterday" Today, Tuesday, cold air from the northwest will bring morning temperatures 5–10 degrees lower than the previous day, making it cold. Daytime temperatures will be around 0–9 degrees, similar to or slightly higher than average, but will be lower than average from tomorrow. Strong winds will make the wind chill lower, so be careful with your health. Until morning, dense fog with visibility under 200 m may occur mainly in inland southern Gangwon, inland North Jeolla, and inland North Gyeongsang; other inland areas nationwide may have fog with visibility under 1 km. The atmosphere will be very dry in parts of Gangwon and North Gyeongsang east coasts, Busan, Ulsan, and parts of South Gyeongsang, so be cautious of forest fires. Fine dust concentrations are expected to be 'good' to 'moderate' across all regions due to smooth air dispersion. No Jeong-dong, Hankyung.com reporter dong2@hankyung.com

One-day fluctuation 15% 'historic plunge' Selling volumes pour in for year-end profit-taking Silver prices, which had shown the strongest rise this year, underwent a sharp adjustment overnight immediately after surpassing 80 dollars per troy ounce for the first time in history. On the 29th (local time), silver futures exceeded 80 dollars per troy ounce in overnight trading for the first time, but then plunged and traded at 71.79 dollars, down 7% on the day. Based on the intraday high and low, the one-day range reached 15%. This is the largest one-day move since the 16.85% plunge in August 2020. Jeff Kilburg, chief executive officer (CEO) and chief investment officer (CIO) of asset management and investment advisory firm KKM Financial, called it a "historic move" and said "such large volatility has not appeared in a long time." The plunge is analyzed as the result of selling volumes pouring in at once for year-end profit-taking and tax reduction. Since silver prices have risen sharply this year, investors closing positions for year-end are said to have triggered the price adjustment. Nevertheless, silver prices are still more than 140% higher compared with the start of the year. Silver began trading in early 2025 in the low 20 dollars per troy ounce. With such a surge, silver posted a higher return than gold this year. Gold also continued a bullish trend. February gold futures surpassed 4550 dollars per troy ounce for the first time this month, and the year-to-date gain exceeds 60%. However, gold futures also fell 4.6% that day in a correction. Experts cite rising geopolitical tensions, an expanding U.S. fiscal deficit, and inflation concerns as the reasons behind the surge in silver and gold. The two metals are traditionally seen as safe-haven assets and stores of value, and when the dollar weakens, demand increases as a hedge. Dollar weakness also lowers purchasing burdens for non-dollar countries, which can spur additional demand. Additionally, increased industrial demand from new industries such as solar panels, data centers, and electric vehicles also supported the rise in silver prices. Kilburg predicted that these upward factors are likely to continue into 2026. He forecast that silver prices could rise to 90 dollars per troy ounce, and even to 100 dollars. That means roughly 27% and 40% upside potential, respectively, compared with recent prices. He said "this adjustment is a temporary pause at year-end," and "both gold and silver will continue on an upward trajectory in the medium to long term." He added, "There are structural supply constraints and strong demand at the same time," and "it is difficult to say the rally is over." New York=Shin-young Park, correspondent nyusos@hankyung.com

"Amid an overall uptrend, many leveraged investments produced both gains and sharp volatility" Bloomberg, marking the year-end, introduced this year's most notable investments. These included cryptocurrency trading and AI trading, as well as the Korean stock market — the top-performing major market — among 11 trades that defined the era or represented failed investment cases. On the 29th (local time), Bloomberg said that global markets this year saw an overall rise in equities alongside cryptocurrency investment strategies reliant on leverage, producing unexpected gains and sharp volatility at the same time. In some cases, overinflated company valuations and trend-following investments that were once successful ultimately ended in failure. Trump-related cryptocurrency trades The most prominent were cryptocurrencies related to U.S. President Trump. From his campaign period through his presidency, Trump promoted himself as a cryptocurrency president. Even the president and his family ran large cryptocurrency-related businesses. Trump and First Lady Melania Trump launched their own meme coins, and his sons formed a company called World Liberty Financial and enabled the WLFI token to be traded. Each coin surged when introduced, driven by enthusiasm among supporters, but all proved to be temporary phenomena. Currently, Trump's meme coin is down 80% from its peak and Melania's meme coin is down 99% from its peak. Bitcoin, which often acts as a leading indicator, also plunged from its October peak and is expected to finish the year down. AI trades AI trading was the most spotlighted trade this year, but some viewed it as a potential target for the next "big short" due to excessive investment. Scion Asset Management, run by Michael Burry — who became famous for predicting the 2008 subprime mortgage bubble — disclosed in early November that it held put options on Nvidia and Palantir. The strike prices were 47% below Nvidia's then-closing price and a staggering 76% below Palantir's. Burry likely reduced or closed those positions afterward, but skepticism about the high valuations of major AI companies and the investment case spread rapidly. It is unknown how much Burry made, but according to a post he made on X, he bought Palantir puts at $1.84. That option rose as much as 101% in three weeks. Debasement trade The "debasement trade" refers historically to rulers like Emperor Nero diluting currency value to cope with fiscal troubles. With massive debt in major advanced economies such as the U.S. and Japan and a lack of political will to address it, investors turned from government bonds to alternative assets like gold and cryptocurrencies. As a result, appetite for Treasuries and the dollar waned. In October, worries about the U.S. fiscal outlook coinciding with the longest-ever government shutdown fears brought the debasement trade to a peak. That month, both Bitcoin and gold hit all-time highs. However, Bitcoin subsequently plunged amid a broad crypto weakness, while demand for government bonds revived and yields stabilized. K rally: surge in Korean stocks This year, the Korean stock market recorded the highest rise among major global markets in a reversal and dramatic run. With the newly inaugurated President Lee Jae-myung's active market-stimulatory policies, Korean stocks surged more than 70% and are moving toward 5,000 points. An increasing number of Wall Street banks, including JPMorgan Chase and Citigroup, say reaching a KOSPI 5,000 in 2026 is possible. Demand for Korean stocks has risen as Korea is viewed as Asia's top AI investment destination amid the AI boom. Despite this, domestic Korean investors lack confidence in their own market. While foreign capital flowed into Korean stocks, Korean retail investors diverted a record $33 billion to overseas high-risk investments such as U.S. stocks, cryptocurrencies, and leveraged ETFs. Chanos vs. Saylor Bitcoin duel Earlier this year, as Bitcoin prices surged and the shares of Michael Saylor's Bitcoin-focused company MicroStrategy soared, famed short-seller Jim Chanos saw an opportunity. In May, Chanos announced plans to short MicroStrategy — arguing its stock had risen beyond its Bitcoin holdings and the premium was excessive — while buying Bitcoin. Chanos and Saylor engaged in a public dispute at the time. But by November 7, when Chanos said he had closed his position, MicroStrategy's stock had fallen 42%. Heading into year-end, the stocks of Bitcoin-focused firms fell even more than Bitcoin itself. Chanos's strategy proved largely successful. Japanese bonds become a dream stage for short sellers Macro investors had suffered losses from shorting Japanese government bonds in recent years. Many had shorted, expecting Japan — which holds massive government debt — to have to raise rates. But the Bank of Japan's rate hikes took longer than expected, keeping yields low and increasing losses for JGB short sellers. This year was different. Yields on Japanese government bonds surged broadly, turning the $7.4 trillion Japanese government bond market (about 1,700 trillion won) into a dream stage for short sellers. The 10-year JGB yield surpassed 2%, hitting multi-decade highs, and the 30-year yield rose by more than 1 percentage point to record highs. Bloomberg's Japanese government bond yield index fell more than 6% year-to-date as of December 23, the largest decline among major global markets. Given Japan's highest government debt-to-GDP ratio among advanced economies, pessimistic views on its bonds are likely to persist. Defense industry stock trades Defense industry trades drew attention under Trump's administration and the new world order. Geopolitical shifts led to large gains in the defense sector, which asset managers had once treated as a risky asset. After President Trump said he would reduce military aid to Ukraine, European governments increased defense spending massively, sending defense contractors' stocks soaring in Europe. Germany's Rheinmetall rose about 150% year-to-date, and Italy's Leonardo jumped more than 90%. 367% surge in Fannie Mae and Freddie Mac revenge Since the financial crisis, U.S. mortgage finance firms Fannie Mae and Freddie Mac have been controlled by the U.S. government. Expectations of re-privatization led their over-the-counter shares to surge 367% through September. In August, news that the Trump administration was considering an IPO that would value Fannie and Freddie at over $500 billion pushed shares to their peak. Plans discussed include selling 5–15% of total shares to raise about $30 billion in an IPO. The timing of any IPO is uncertain, but IPO prospects are viewed optimistically. Billionaire hedge fund manager Bill Ackman, who held large positions in these stocks, and Michael Burry both at one point suggested that the two companies — once in need of government rescue — "may no longer be the Toxic Twins." Bloomberg also cited last year's Turkish lira carry trade, which made huge gains, as a failed trade this year due to political turmoil. It pointed to some financial firms taking losses on loan claims after Tricolor and First Brand's bankruptcies as another failed case. Quoting Jamie Dimon, chairman of JPMorgan, Bloomberg warned that "if you see one cockroach, there are probably more," suggesting these issues could worsen next year. Kim Jeong-ah, contributing reporter kja@hankyung.com

Silver soars 178% this year, surpassing gold's 72% surge The international silver price has, for the first time ever, exceeded $80 per ounce. Copper prices also at one point approached $13,000 per tonne, surpassing previous record highs. Prices of gold and platinum, among others, reversed after reaching record highs. Gold fell 0.45%, but having set multiple record highs this year, it has risen 72% year-to-date. On the 29th (local time) on the London Metal Exchange (LME), spot silver briefly surpassed the record high of $80 per ounce and then fluctuated. Speculative trading and expectations of supply shortages fueled the price rise. The spot copper price, shortly after the LME opened, surged as much as 6.6% to exceed $12,900 per tonne, marking a new record. By 10:14 a.m. London time, the gain had narrowed to the 2% range, and it was trading at $12,428.50 per tonne. On the New York Comex market, copper futures fell 2%. The spot gold price fell 1.2% to $4,479.42 per ounce. Charu Chanana, Saxo's chief investment strategist, pointed out that "a combination of rate cuts and hedging demand against geopolitical and fiscal uncertainty has driven up precious metals prices". He explained that concerns about supply shortages further amplified price movements. However, he emphasized that with silver having surged vertically by 178%, the risk of increased volatility has also grown. He added that, in the short term, technical factors and position-related risks exist. Nonetheless, he said, "The overall outlook for the precious metals market remains positive due to fiscal and geopolitical instability and continued demand for investment diversification." In other words, he explained that if prices fall, long-term investors may see it as an opportunity to increase their allocation. This year's rally in copper is set to be the strongest since 2009. The rise is attributed to supply pressures from uncertainty over U.S. tariffs and large-scale mine shutdowns. LME prices rose more than 10% during December. This was due to expectations of a copper supply shortage as investors sought to accumulate large amounts of copper in preparation for possible U.S. tariff imposition. Some analysts warned that prices have risen excessively as actual consumption in China, the largest copper consumer, weakens. Wu Kunjin, head of nonferrous metals research at Minmetal Futures, said, "Some Chinese processing plants that buy copper and are sensitive to price fluctuations have reduced production or halted it entirely following the recent price surge." President Trump is expected to decide by mid-next year whether to impose import tariffs on refined copper. Kim Jeong-ah, guest reporter kja@hankyung.com

1429.8 won close…lowest in two months Authorities are determined to manage year-end closing prices Watch whether it will close in the 1420 won range today Foreign exchange authorities intervened in the market for a third consecutive trading day, pushing the won–dollar exchange rate down into the 1420 won range (the won appreciated). As the authorities' determination to stabilize the exchange rate was confirmed, the market also lowered its expectations for the exchange rate. On the 29th at the Seoul foreign exchange market, the won–dollar exchange rate (as of 3:30 p.m.) closed at 1429 won 80 jeon, down 10 won 50 jeon from the previous trading day. It is the first time in about two months that the weekly closing price has entered the 1420 won range since the 3rd of last month (1428 won 80 jeon). That day, the exchange rate opened at 1440 won, down 30 jeon from the previous trading day, and fell sharply from the early session. It dropped to the low 1430 won per dollar in the morning, then rebounded to 1435 won in the afternoon before falling again just before the close. Market participants believe that volumes presumed to be intervention by the authorities also appeared that day. The won–dollar exchange rate fell for three consecutive trading days starting on the 24th, when the authorities launched strong verbal intervention. After a drop of 33 won 80 jeon on the first day, it fell by around 10 won over the next two trading days. The three-day decline totaled 53 won 80 jeon, the largest since the -60 won recorded from April 10–14 eight months ago. Foreigners' net buying of around 331.4 billion won in the stock market also contributed to the exchange rate decline that day. The People's Bank of China set the yuan–dollar central parity 0.04% lower, and the yen–dollar exchange rate fell, with Asian currencies generally strengthening. Recently, when the exchange rate fell due to authorities' intervention, dollar buying at the low point emerged and caused a slight rebound, only to fall again when volumes from the authorities appeared. Moon Da-woon, a researcher at Korea Investment & Securities, said, "Dollar buying flows in whenever the exchange rate falls." That the exchange rate continued to fall despite such buying is analyzed as reflecting the authorities' strong determination. Park Sang-hyun, senior advisor at iM Securities, said, "The exchange rate is falling sharply thanks to the government's strong verbal intervention and actual intervention," and "the exchange rate could fall to 1420 won this week." It was also found that exporters, having confirmed the authorities' determination, sold dollars. There is also analysis that there was demand to convert dollars into won before the exchange rate fell further for year-end performance bonus payments. With one day left before the close of the foreign exchange market for the year, the exchange rate falling into the 1420 won range has widened expectations that the year-end closing price, to be finalized on the 30th, will finish in the 1420 won range. The reason is that the authorities are unlikely to allow the exchange rate to show a rebound. This would be nearly 50 won lower than last year's year-end closing price (1472 won 50 jeon). Reporter Kang Jin-gyu josep@hankyung.com

Trump–Zelensky Summit… Three-way Meeting with Europe Next Month Trump: "Negotiations Can Be Concluded Within Weeks" "Only One or Two Tricky Issues Left" Zelensky: "100% Agreement on Security Guarantees" Discussions on Donbas Territory on a 'Parallel Track' Russia Demands Withdrawal of Forces from Eastern Combat Zones Ukraine Wants to Maintain Current Front Lines Discussions to end the Russia–Ukraine war are gaining momentum, but differences remain among the parties over the core territorial issues of a ceasefire plan. U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky held talks on the 28th (local time) but failed to find a breakthrough. With February 24 next year marking four years since the war began, attention is focused on whether a truce can be arranged. ◇ Trump–Zelensky "Close to Agreement" Trump: "95% Agreement on Russia–Ukraine Ceasefire Plan"… Remaining 5% Is 'Donbas'President Trump met with President Zelensky at his Mar-a-Lago estate in Palm Beach, Florida. At a subsequent press conference he said, "We have made a lot of progress on a ceasefire," and added, "If discussions go well from now on, the negotiations could be concluded within weeks." When asked how close the ceasefire talks were to an agreement, President Trump expressed confidence, saying, "Their positions are closer than ever," estimating about 95%. He also said, "Whether it will come together remains to be seen, but it is very close." President Zelensky said, "There is 100% agreement on security guarantees between the U.S. and Ukraine," and "Security arrangements among the U.S., Europe, and Ukraine are also nearly agreed." President Trump said that before meeting Zelensky he spoke with Russian President Vladimir Putin for more than two hours and described the conversation as productive. After the meeting he shared the results with Zelensky and called leaders of key European countries. The Trump administration prepared a draft peace plan last month consisting of 28 items, and has been coordinating a ceasefire plan with Russia, Ukraine, and European countries based on it. Although recent talks have shown progress, it is reported that major points of contention still exist. President Trump said, "There are one or two tricky issues," and added, "This is not a one-day negotiation but a complex matter." ◇ Differences Over Donbas The '5%' that the parties have yet to agree on is expected to effectively determine whether a truce will hold. The biggest remaining problem is Donbas, the eastern frontline region of Ukraine (Donetsk and Luhansk oblasts). Russia already effectively controls or has declared annexation of much of the area. Ukraine still controls parts of western Donetsk. Russia has demanded, as a precondition for a ceasefire, the immediate withdrawal of Ukrainian forces from across Donbas and that Ukraine surrender the territory. Ukraine, on the other hand, insists that at minimum the current front lines be set as the ceasefire line to prevent further territorial loss. President Zelensky said, "Territories under our control are a matter for our citizens to decide," and emphasized that even if territorial status is negotiated, procedures reflecting public will such as referendums would be necessary. As a compromise, the U.S. proposed establishing demilitarized zones and free economic zones in parts of Donbas. The issue of handling the Zaporizhzhia nuclear power plant, Europe's largest nuclear facility, is also a core contention. The plant is occupied by Russian forces and is being kept in a cold shutdown state. President Zelensky proposed a joint investment model with the U.S., in which the U.S. and Ukraine would split the power generated 50-50. Russia, however, already regards the Zaporizhzhia plant as Russian property. ◇ U.S.–Ukraine–Europe Meeting Next Month A security arrangement for Ukraine involving the U.S. and Europe may also be unacceptable to Russia. According to a 20-point ceasefire proposal Ukraine released on the 24th, Ukraine would not accept Russia's demand to reduce the size of Ukrainian forces and would receive security guarantees comparable to NATO's collective defense clause (Article 5). Russia reacted negatively to such a plan. President Trump said a three-way summit with the leaders of Russia and Ukraine could take place "at an appropriate time." President Zelensky posted on X (formerly Twitter) after the meeting that "he agreed with President Trump on inviting the leaders of Ukraine and Europe to Washington, D.C. in January next year." Experts say it is unlikely that Russia will participate seriously in the negotiations this time either. Daniel Fried, former U.S. Assistant Secretary of State for European Affairs, told The New York Times in an interview that "the progress on security is positive, but there is no evidence that Russia is prepared to negotiate in good faith." There are also projections that if President Trump pressures President Zelensky to concede Donbas territory in order to secure quick results, it could trigger a political explosion within Ukraine and lead to the collapse of the Zelensky government. Reporter Kim Ju-wan kjwan@hankyung.com

23.4 trillion won in October alone As the won·dollar exchange rate rose, trading in dollar stablecoins also increased significantly. There is an interpretation that dollar demand for overseas investment increased at the same time as trading in stablecoins, a kind of dollar substitute, rose. On the 29th, according to data the Bank of Korea submitted to Representative Cha Gyu-geun of the Party for National Innovation, the trading volume of dollar stablecoins (USDT·USDC·USDS) on the five domestic virtual asset exchanges (Upbit·Bithumb·Coinone·Korbit·Gopax) increased for four consecutive months from June through October. The monthly trading value of stablecoins fell to a minimum of 5.2 trillion won in September last year and was 7.1 trillion won in June this year, then rose again to 11.3 trillion won in July, 12.1 trillion won in August, 16.9 trillion won in September, and 23.4 trillion won in October. In just four months, it increased 3.3 times. However, it does not reach December last year (31.7 trillion won), when the overall coin market heated up on expectations of a second Trump administration. This rebound in trading is linked to the rising exchange rate. The won·dollar exchange rate began to rise gradually from a low of 1,347.1 won at the end of June and exceeded the 1,400-won level at the end of September. After the Chuseok holiday in October, it showed a steeper rise. Investors expecting further exchange-rate increases bought stablecoins from a dollar-buying perspective, and the industry views factors such as Bitcoin recording an all-time high in October and an improved overall coin market mood as reasons for the increase in trading. Song-ryeol Lee, Hankyung.com reporter yisr0203@hankyung.com

BC Card announced on the 29th that it signed an MOU with global digital asset firm Coinbase to introduce the dollar-based stablecoin USDC for domestic payments. The MOU was pursued to jointly examine a domestic payment structure utilizing both companies' technology and payment infrastructure in response to growing global demand for stablecoin payments. Coinbase is a global digital asset company that jointly developed the dollar-pegged stablecoin USDC with the U.S. company Circle. In 2023, it built its own Ethereum-based blockchain network, 'Base,' and has continued to collaborate with major payment providers in key countries to expand USDC's global distribution and use. Under the MOU, the two companies will jointly carry out a pilot project to integrate BC Card's QR payment solution into a Base chain-based wallet so customers holding USDC can make payments at domestic merchants. Through this pilot, they will focus on verifying USDC payment convenience and the interoperability between the Base chain and BC Card's payment infrastructure, and on deriving a Korean won settlement process that complies with domestic laws and regulatory frameworks. Furthermore, they plan to examine medium- to long-term cooperation possibilities such as ▲enhancing USDC domestic payment and settlement models ▲identifying partnership services based on both companies' networks ▲and activating the Base ecosystem in Korea. Choi Won-seok, President of BC Card, said, "By combining the synergy between the two companies' infrastructures with the intellectual property that BC Card has proactively secured—such as core technology patents related to digital asset and stablecoin payment infrastructure—we will gradually build a USDC payment ecosystem optimized for the domestic environment." Park Hyuk-jae, Head of East Asia for Coinbase's Base (BASE) division, said, "Since the passage of the U.S. GENIUS bill in 2025, the adoption of stablecoins across global financial infrastructure has been rapidly spreading," and added, "Through the linkage between the Base chain—which supports stablecoins linked to 15 fiat currencies—and BC Card's payment infrastructure, we will enhance global payment convenience in Korea." Ye-won Kim, reporter yen88@wowtv.co.kr

International silver prices exceeded $80 per ounce for the first time. According to Bloomberg on the 29th (Korean time), the international silver spot price reached an all-time high of $84.0075 per ounce as of 8:21 a.m. that day. Afterwards, the silver spot price was recording $80.1575 at around 2:40 p.m. Silver, both a representative precious metal and an industrial commodity, has been rapidly soaring in price this year due to factors such as supply shortages and cuts in the U.S. benchmark interest rate. It has jumped 182% so far this year. It is expected to have the highest annual rate of increase since 1979, when oil prices surged due to the Iranian revolution. At the same time, the spot price of gold is trading at $4,517.94 per ounce. The intraday record high was $4,549.92 recorded on the 27th. Meanwhile, the international copper price on the 29th (local time) at the London Metal Exchange rose 6.6% from the previous close to $12,960 per t, approaching the $13,000 level. Copper prices first exceeded $12,000 per t on the 23rd. Expectations that the U.S. Donald Trump administration may impose additional tariffs on copper next year have led to a 'hoarding' phenomenon, and multiple factors such as the weak dollar effect, concerns about supply shortages, and a boom in precious metals markets are pushing up copper prices. Song-ryeol Lee Hankyung.com reporter yisr0203@hankyung.com

The KOSPI is approaching the 4200 level thanks to strength in semiconductor stocks. As of 11:00 a.m. on the 29th, the KOSPI stood at 4192.6, up 63.12 points (1.53%) from the previous session. The KOSPI, which started trading around the 4140 level, trended upward and even rose to 4199.46 during the session. On the KOSPI market, individuals and foreigners were net buyers of 491.8 billion won and 118.4 billion won, respectively, leading the gains. Institutions were net sellers of 556.9 billion won. The KOSDAQ index was trading at 926.77, up 7.1 points (0.77%) from the previous trading day. The KOSDAQ index has been staying around the 920 level during the session. Among top market-cap stocks, Hanwha Aerospace (9.31%), which was removed from the investment warning list, and SK Hynix (5.34%) showed notable gains. Hanwha Aerospace also reported that it won a contract to develop a lunar lander propulsion system. Other strong performers included Naver (3.67%), SK Square (3.14%), Doosan Enerbility (2.17%), Samsung Electronics (1.79%), Hyundai Motor (1.75%), HD Hyundai Heavy Industries (0.98%), and Samsung Biologics (0.65%). LG Energy Solution was down 1.56%. After market close on the 26th, LG Energy Solution disclosed that, due to FBPS, a U.S. battery pack maker, withdrawing from the battery business, it will mutually terminate the electric vehicle battery module supply contract signed in April last year. The termination amount is 3.9217 trillion won based on the exchange rate on the disclosure date. In the KOSDAQ market, individuals were net buyers of 331.7 billion won. Foreigners and institutions were net sellers of 136.8 billion won and 135.5 billion won, respectively. Top KOSDAQ market-cap stocks were mixed. Peptron (6.32%), Pharmaresearch (5.02%), HLB (4.13%), Samchundang Pharm (4.07%), Kolon TissueGene (2.67%), Alteogen (2.62%), D&D Pharmatech (2.21%), and Rainbow Robotics (1.16%) were rising. On the other hand, RigaChem Bio (-2.67%), Voronoi (-2.63%), Rino Industries (-1.8%), and ABL Bio (-0.8%) were falling. The won–dollar exchange rate was down 8.8 won from the previous session, at 1433.4 won. After opening at 1440 won, it moved downward. Jin Young-gi, Hankyung.com reporter young71@hankyung.com