[Minute to Read] KOSPI stalls near 3,000 mark amid geopolitical tensions

The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: June 19.

An electronic board at KEB Hana Bank headquarters in Seoul shows the KOSPI closing at 2,977.74 points on June 19. /Newsis

KOSPI stalls near 3,000 mark amid geopolitical tensions

The Korea Composite Stock Price Index has remained above 2,900 for six sessions but failed to surpass the key 3,000 level due to Middle East tensions and a weakening won. Despite a 30% rally since April, foreign and institutional selling has capped gains. Analysts remain cautiously optimistic, citing government policies and improving earnings outlooks. Short-term dips near 2,850 could offer buying opportunities as market volatility persists.

S. Korea’s rice prices surge despite gov’t buybacks

The South Korean government’s large-scale rice purchases to stabilize prices last fall have led to market shortages and soaring rice costs, now close to instant rice prices. Wholesale and retail prices have risen sharply, with retail up 8.7% year-on-year and 12% above recent averages. Critics warn that mandatory state buybacks could worsen market distortions. Farmers see no gains from the price hike, which mainly benefits storage operators. Despite calls to release stockpiles to ease prices, the government remains cautious due to potential backlash from retailers and farmers.

S. Korean shipyards gain from LNG amid global order drop

Global shipbuilding orders dropped nearly 50% year-on-year from January to May, hitting the lowest level since 2021. Despite this decline, rising LNG projects worldwide are driving optimism for South Korean shipyards. The growing global focus on energy security and LNG consumption favors South Korea’s advanced shipbuilding technology, setting it apart from Chinese mass producers. South Korean yards notably dominated Qatar’s 2020–2023 LNG carrier contracts, highlighting their strength in this sector.

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