South Korea

"중국서 돈 빼 한국으로"…K증시에 해외 큰손이 꽂힌 이유 [인터뷰+]

Hankyung | Local Language | News | Nov. 20, 2025 | UndeterminedInvestor Sentiment

Since the escalation of the U.S.-China conflict beginning in 2018, large overseas investors have been reducing their exposure to China and increasingly focusing on the Korean stock market. According to Kim Shin, Executive Director and Head of the Global Business Group at KB Securities, policy improvements in Korea have accelerated this trend, with foreign investors now actively seeking ways to reallocate part of their portfolios from Chinese to Korean assets.

Kim, who leads a capital introduction (cap intro) organization at KB Securities that connects sovereign wealth funds, pension funds, and hedge funds with domestic asset managers, highlighted a marked shift in the behavior of global investors over the past two to three years. He noted that Korea, alongside China, remains among the relatively undervalued markets in Asia, attracting foreign capital looking for alternatives to the more expensive Southeast Asian and Indian markets.

Despite the growing interest, challenges remain due to structural and operational differences in Korean asset management. Domestic hedge funds typically operate multiple strategies with small teams, contrasting with the global norm of single-strategy, long-term track records favored by large overseas hedge funds. Additionally, Korean asset managers’ sales approaches, which often focus on individual star managers, do not align with overseas institutions’ preferences for firm-wide risk management and systematic performance measurement.

A key driver of renewed foreign interest is the new South Korean government's capital market reforms, including amendments to the Commercial Act aimed at improving corporate governance, such as mandatory cancellation of treasury shares and enhanced shareholder rights. These reforms, combined with changes in dividend income tax and corporate value enhancement policies, have changed overseas perceptions, prompting increased inquiries about growth sectors like defense and shipbuilding, holding companies, and insurers.

Kim emphasized that while policy improvements have sparked foreign interest, the Korean market's tendency to quickly price in expectations risks deterring long-term commitment. He stressed that building trust through consistent and sustained reforms is critical for attracting ultra-long-term investment from sovereign wealth funds and endowments. KB Securities’ cap intro efforts are aimed at elevating Korean asset managers to global standards and facilitating ongoing communication with overseas investors to support this long-term capital inflow.

韓·UAE '100년 동행' 선언...1000억 달러급 초대형 경제동맹 시동

ET News | Local Language | News | Nov. 20, 2025 | UndeterminedBizdev-Partnering

South Korea and the United Arab Emirates (UAE) have declared a "100 Years of Partnership" and launched a comprehensive economic alliance valued at approximately 100 billion dollars (150 trillion won). This announcement followed a summit on November 18, 2025, during President Lee Jae-myung’s state visit to the UAE, where expanded talks with UAE President Mohammed bin Zayed Al Nahyan focused on strategic cooperation in artificial intelligence (AI), energy, and the defense industry. The alliance aims to elevate their relationship from strategic partnership to a practical economic alliance.

The two leaders held expanded and one-on-one meetings at the Abu Dhabi Presidential Palace, reaffirming mutual trust and a commitment to enduring cooperation. They adopted a joint declaration titled “A New Leap for 100 Years of Korea-UAE Partnership.” Key areas of collaboration include AI infrastructure, defense, culture, and energy. A Strategic AI Cooperation Framework was established, featuring joint efforts in AI technology, infrastructure, semiconductor supply chains, robotics, industrial and public sector AI applications, and the creation of AI norms and systems.

A central project is the UAE’s Stargate Project, an AI infrastructure initiative with an initial 20 billion dollar investment that could expand to 100 billion dollars, involving the construction of a 5-gigawatt-class data center. Korean companies are slated to prioritize participation in this project and related infrastructure such as power grids and energy storage. The countries also plan to pilot an "AI port logistics project" linking Busan Port in South Korea and Abu Dhabi Khalifa Port.

Defense cooperation will be intensified beyond traditional arms purchases toward joint development, local production, and exports to third countries, potentially exceeding 15 billion dollars in contract value. Although defense items were not included in the seven Memorandums of Understanding (MOUs) announced, further discussions aim to scale up this cooperation.

Energy and resources collaboration will expand across traditional and new energy sectors, including oil, gas, petrochemicals, nuclear power, hydrogen, renewables, and smart plants. The UAE and Korea's national oil companies agreed to increase crude oil stockpiling from 4 million barrels to 10 million barrels, with plans for further expansion. Additional joint projects in LNG, LPG, ammonia, and shipbuilding are anticipated. KEPCO and ENEC signed an MOU to jointly enter third-country nuclear power markets, extending cooperation to small modular reactors, hydrogen, ammonia, and carbon capture technologies.

Cultural exchange was highlighted by a performance from soprano Sumi Jo at the Abu Dhabi Presidential Palace. The two countries also agreed to establish "UAE K-City," a multi-industry integrated cluster combining industry, technology, culture, healthcare, aerospace, and K-culture, positioned as a future export hub targeting the Middle East, Africa, and Europe. The Middle Eastern K-culture market is projected to grow from 44.1 billion dollars in 2025 to 70.4 billion dollars in 2030.

Officials estimate the alliance’s total economic impact at about 100 billion dollars, with realistic projections of around 20 billion dollars in AI and 15 billion dollars in defense sectors alone. South Korea and the UAE committed to swiftly implementing agreed initiatives through effective communication, while seeking integrated projects that link AI, energy, and defense sectors.

Joongang Ilbo | English | News | Nov. 20, 2025 | UndeterminedEnergy Prices

Gasoline prices in Seoul have risen above 1,800 won ($1.20) per liter for the first time in nine months, reaching 1,801.28 won as of November 18, 2025. This marks the first time since February 6, 2025, that prices have exceeded this level. Nationwide, the average gasoline price was slightly lower at 1,730.27 won per liter. Diesel prices also increased, with Seoul seeing a rise to 1,709.56 won and the national average reaching 1,637 won.

The increase in domestic fuel prices has been driven by three consecutive weeks of rising international refined product prices due to approaching winter and supply instability, combined with a weaker won making imported crude more expensive. Additionally, the government’s reduction of fuel tax cuts since October—from 10 percent to 7 percent for gasoline and from 15 percent to 10 percent for diesel and LPG—has added upward pressure on prices, amounting to about 25 won per liter for gasoline and 29 won for diesel.

Industry experts expect fuel prices to continue climbing unless there is a clear reversal in global oil prices, with current trends suggesting Seoul may soon surpass this year’s peak gasoline price of 1,807.96 won recorded in late January. The Ministry of Trade, Industry, and Resources has responded by convening a petroleum market review meeting, requesting voluntary cooperation from industry players to prevent excessive price hikes.

Rising fuel costs are contributing to consumer inflation and affecting sectors such as logistics, highlighting the broader economic impact of the sustained increase in oil prices and fuel taxes in South Korea.