US Midterms 100 Days Away; Democrats Seen Retaking House

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

1. US Democrats Likely to Retake House; Will Trump Fall into 'Hearing Quagmire'?

- Key Summary: With the US midterm elections 100 days away, forecasts favor a Democratic victory in the House and a Republican victory in the Senate. According to an analysis by election forecasting site Decision Desk HQ, the probability of a Democratic victory in the House stood at 60%, with projected seats of 225 for Democrats and 210 for Republicans. Accordingly, observers say that should the House flip, hearings targeting matters such as President Trump's family business dealings will intensify. However, the likelihood of passing an impeachment measure, which requires the consent of two-thirds of the Senate, is assessed as low.

2. SK hynix Emerges as Effective No. 2 Shareholder of Japan's Kioxia

- Key Summary: Bain Capital, previously the largest shareholder of Japanese semiconductor company Kioxia, sold off a large portion of its stake, elevating SK hynix (000660) to the effective No. 2 shareholder position. Bain Capital is reported to have made a profit of about 2.5 trillion yen (about 22 trillion won) from the sale, with Toshiba taking the largest shareholder position with a 15.1% stake. Toshiba is also continuously reducing its stake, raising the possibility that SK hynix could emerge as the largest shareholder going forward. However, SK hynix has not yet converted its convertible bonds (CBs) into shares, and to secure actual voting rights, it must pass antitrust reviews in various countries.

3. Quantum Computing, No. 1 Last Year, Plunges; Fortunes Diverge on Pure-Play Strategy

- Key Summary: Quantum computing products, which recorded the highest returns among newly listed domestic ETFs last year, have recently undergone a sharp correction. "SOL US Quantum Computing TOP10" posted a one-month return of -32.00%, marking the largest decline, while "PLUS US Quantum Computing TOP10" also plunged -29.82%. In contrast, "RISE US Quantum Computing" and "KIWOOM US Quantum Computing," which diversified investment across many stocks, saw relatively smaller declines, showing a clear divergence in returns depending on stock concentration. Industry analysts note that quantum computing-related stocks have a strong theme-stock character, responding more sensitively to short-term supply and demand than to earnings.

4. To Get 80% RIA Capital Gains Tax Reduction, Sell US Stocks by the 29th

- Key Summary: To receive the 80% overseas stock capital gains deduction through a Return-to-Domestic-Market Account (RIA), the sale settlement must be completed by the end of this month, the Financial Supervisory Service (FSS) said on the 26th. The capital gains deduction rate is determined based on the settlement completion date rather than the sell order execution date, and after the end of this month, the deduction rate will be reduced to 50%. Accordingly, investors holding US stocks must place sell orders by the 29th at the latest, taking into account the settlement time lag. The FSS urged investors to check product prospectuses before subscribing, noting cases of restrictions on early termination and additional fees in Investment Management Accounts (IMAs) and specified money trust ETFs.

5. Qualcomm Also Signals Double-Digit Chip Price Hike

- Key Summary: Qualcomm, a smartphone application processor (AP) manufacturer, plans to raise prices for products shipped after September 1 by double-digit percentages, Bloomberg reported on the 25th. Qualcomm explained that as mobile chip component prices soared amid surging artificial intelligence (AI) development demand, seeking alternative suppliers alone cannot absorb the rising costs. This is interpreted as a fallout from foundries (contract chip manufacturers) operating facilities focused on data center chips, pushing mobile chip and memory supply to the back burner. Accordingly, observers say price increases could extend not only to Android flagship smartphones but also to Apple's iPhone.

6. Hanwha's 'Refinery at Sea' Drills into South American Deepwater Oil Fields

- Key Summary: Hanwha Ocean (042660) announced on the 26th that it obtained Basic Design Review (BDR) certification from the American Bureau of Shipping (ABS) and Approval in Principle (AIP) from Norway's DNV for the basic design of a standardized floating production, storage and offloading (FPSO) unit targeting the South American market, where demand for offshore plants is surging. An FPSO is a facility that extracts crude oil and gas from the seabed, refines and stores it, and handles offloading to carrier vessels, with orders typically exceeding 1 trillion won per unit. Hanwha Ocean had previously completed and obtained certification for a standard FPSO concept design for deepwater oil and gas fields in West Africa, and with this South American model development, it plans to expand its standard FPSO portfolio. Meanwhile, the global FPSO market has recently seen expanding demand centered on deepwater oil fields in South America and West Africa.