Odaily Planet Daily News The Monetary Policy Committee of the Bank of Korea stated on the 28th that it will continue to maintain its stance on raising interest rates in the future, while comprehensively considering inflation and financial stability factors. The Bank of Korea previously announced its first rate hike in three and a half years. Explaining the background of this rate hike, the committee stated, "As economic growth strengthens driven by exports and investment, inflation is expected to remain above the target level for a considerable period, and risks to financial stability also persist." The committee predicts that "supported by a strong semiconductor cycle, exports and investment will continue to see high growth. As income conditions improve, driving the expansion of consumption recovery, the economy is expected to maintain steady growth. This year's economic growth rate is expected to be significantly higher than the May forecast of 2.6%."

Regarding prices, the committee expects inflation to remain high for a considerable period. The committee also assessed that the volatility of the Korean won against the US dollar has increased, and the simultaneous rise in housing-related loans and other loans has driven a sharp increase in household loans, while the upward trend in housing prices in the Seoul metropolitan area has also further expanded. Considering the above factors, the committee stated, "It is currently judged necessary to continue maintaining a stance on raising interest rates in monetary policy." (Jinshi)

According to Odaily, South Korea's domestic stock market has experienced extreme volatility over the past nine trading days, with cumulative valuation losses on single-stock leveraged ETFs, which have a high proportion of retail investors, exceeding 8.8 trillion won. Based on data released on the 15th by FnGuide Quantwise and Mirae Asset Securities, four single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix, issued by Mirae Asset Global Investments and Samsung Asset Management, recorded cumulative valuation losses of 8.8337 trillion won between July 1 and July 13.

During the same period, the assets under management (AUM) of these ETFs fell from 14.3518 trillion won to 8.9389 trillion won, a decrease of 37.7%. For all 14 single-stock leveraged ETFs listed in South Korea tracking Samsung Electronics and SK Hynix, the total AUM also dropped by 41.4% during the period, from 15.9349 trillion won at the end of June to 9.3386 trillion won on July 13. Among these, the AUM of leveraged ETFs tracking Samsung Electronics decreased by 35.3%, while those tracking SK Hynix saw a reduction of 44.9%.

Data from the Korea Capital Market Institute shows that as of June 19, individual investors had accumulated net purchases of single-stock leveraged ETFs amounting to 8.2 trillion won, accounting for approximately 60% of the related ETFs' AUM. This indicates that a significant portion of the recent losses is likely concentrated among retail investors. (Source: Jinshi)

According to data from MSX.COM, SK Hynix's stock price has fallen by 12%.

According to data from MSX.COM, South Korea's KOSPI index plunged 7% intraday and is now at 6,774.06 points.

According to Odaily, the Bank of Korea (BOK) raised its benchmark interest rate by 25 basis points to 2.75%, marking the first rate hike since January 2023, in line with market expectations. (Jinshi)