KOSDAQ Jumps 7% as Institutions Pour $1.1 Billion Into Chip Materials, Biotech

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

1. Rotation Into Chip Materials, Biotech Begins; Forecasts Split Between Short-Term Rebound and Trend Recovery

Key summary: The KOSDAQ index soared 6.97% on the 10th, outpacing the KOSPI's gains on all but one day in August. High-risk money that flowed out after tighter deposit rules on single-stock leveraged ETFs (July 31) moved into the deeply oversold KOSDAQ. Institutions also net-bought 1.5222 trillion won over the same period, fueling the rally. Top institutional net-buys were concentrated in chip materials and biotech: Alteogen (77.3 billion won), Simmtech (73.1 billion won), Tes (68.1 billion won) and LigaChem Biosciences (63.9 billion won). Hwang Seung-taek, head of Hana Securities' research center, predicted that "packaging and testing chip materials that solve AI bottlenecks, and biotech firms with proven technology-export results, will lead the gains."

2. 'Declaring War on Bond Yields': What Are Bessent's Three Cards?

Key summary: The yield on the 30-year U.S. Treasury note climbed as high as 5.28% intraday, hitting its highest in about 19 years. Amid this, Treasury Secretary Scott Bessent rolled out, in succession, a signal to reduce long-term bond issuance, joint U.S.-Japan intervention to buy yen, and remarks supporting the Fed chair. For Big Tech firms pouring large sums into AI facility investment, rising rates can act as a direct burden. Google is reported to have paid interest of up to 9.3% a year to finance AI chip data centers. Of Wall Street respondents, 61% expected 30-year Treasury issuance to decline going forward. The prevailing view is that a fundamental fix will be difficult unless the annual fiscal deficit structure, reaching $2 trillion, is changed. Phoebe White, head of U.S. rates strategy at UBS, assessed that it "shows the Treasury will use every available tool to prevent further increases in long-term yields."

3. HD Hyundai Heavy Wins 1 Trillion Won in Power Engine Orders; U.S. AIDC Boom Kicks Off in Earnest

Key summary: HD Hyundai Heavy Industries signed a power equipment supply contract totaling 1,000 MW and 956 billion won with U.S.-based Coban Energy Group on the 7th, sealing its largest-ever single contract for power-generation engines. The products to be delivered are power equipment based on 9.6 MW HiMSEN gas engines. They feature high-output, high-efficiency medium-speed engines capable of stable 24-hour operation. HD Hyundai Group is building a system to benefit from AI data centers by dividing roles among affiliates, ranging from developing floating data center (FDC) technology to supplying distribution and power equipment and maintaining power-generation engines. The Electric Power Research Institute (EPRI) forecasts that data centers' share of U.S. power consumption will expand up to more than threefold by 2030, supporting the sustainability of the order momentum.

4. Samsung-Hynix Short-Selling Swap: Samsung Up 33%, Hynix Down 67%

Key summary: As of the 5th of this month, Samsung Electronics' (005930.KS) net short-selling balance stood at 1.4802 trillion won, up 33.0% in just three trading days, becoming the largest on the main board. SK hynix (000660.KS) plunged 66.7% from 72 billion won to 24 billion won, sliding from 46th to 100th. The short-selling balance gap between the two stocks widened from 15.5-fold to 61.8-fold. Last month, Samsung Electronics and SK hynix plunged 21.4% and 35.2%, respectively. The move is read as additional bets on further declines piling into Samsung Electronics, which had fallen relatively less. Ko Tae-bong, head of iM Securities' research center, diagnosed that the Samsung Electronics short position may be aimed at adjusting exposure to Korea's stock market or to semiconductors.

5. As Volatility Eases, Further Rules on Single-Stock Leverage Slow Down

Key summary: More than 10 days have passed since the Financial Services Commission announced additional measures for single-stock leveraged and inverse products on the 29th of last month, but it has yet to finalize a concrete timeline. After deposit requirements were tightened, daily trading value plunged from more than 12 trillion won to less than 1 trillion won. The VKOSPI also fell below the 70 line for the first time since May 26, weakening the authorities' momentum for further intervention. Experts say this lull in volatility is a phenomenon across global stock markets rather than an effect of domestic policy. They warned that volatility could re-expand at any time amid AI and semiconductor uncertainty. With the combined market capitalization of the 16 single-stock leveraged and inverse ETFs still at 5.6085 trillion won, above the 4.9937 trillion won on their first day of launch, the volatility fuse has not been completely removed.

6. Hanwha Crosses 15% Stake in KAI, Files for Merger Review With FTC

Key summary: Having secured a 15.89% stake in KAI through Hanwha Aerospace (9.90%), Hanwha Systems (4.98%) and Hanwha Aerospace USA (1.01%), the Hanwha Group plans to file for a merger review with the Fair Trade Commission. The structure has Hanwha, which supplies core aircraft parts, becoming a major shareholder of KAI, a maker of finished aircraft. The FTC intends to focus its review on the potential for restraint of competition arising from the vertical combination. The review takes a basic 30 days, or up to 90 days with additional review, and Hanwha expects a smooth pass through the application of a simplified review. KAI expects effects such as enhanced export competitiveness using Hanwha's overseas networks and improved corporate value. However, whether further stakes are acquired will be decided depending on the review outcome.