As Korean battery companies such as LG Energy Solution, Samsung SDI, and SK on head to the United States, they are faced with an unexpected problem –- the emergence of a local labor movement. They are pressuring Korean battery companies over wage negotiations. If the situation becomes prolonged, it
Bank of Korea Governor Lee Chang-yong had a surprise meeting with Pan Gongsheng, the current Chinese Communist Party Committee Secretary and head of the People's Bank of China (PBC) on July 3 ahead of U.S. Treasury Secretary Janet Yellen’s visit to China. The PBC actively publicized the meeting
The Korean government has requested the United States expand the list of recognized countries for battery minerals in connection with the electric vehicle tax credit in the Inflation Reduction Act. It also asked for clarification on the meaning of “foreign entities of concern (FEOCs)” from which bat
As the Korean insurance industry’s performances have improved this year, shareholders have much anticipation for an increase in dividends but insurers are hesitant to specify their dividend policies. This is because the introduction of the new accounting standard, IFRS17, and the new employee benefi
The author is an analyst for Shinhan Securities. He can be reached at jk.ahn@shinhan.com -- Ed.[US] Solid fundamentalsWe believe there is a possibility that the current Fed funds rate cycle may proceed differently from the ones seen in the past, due to the following reasons: 1) the US economy is now
Tony Blinken, the U.S. Secretary of State who is currently visiting China, has announced that he met with President Xi Jinping of China and reached an agreement on the stabilization of U.S.-China relations.From June 18 to 19, Secretary Blinken had a two-day schedule during which he sequentially met
The author is an analyst for Shinhan Securities. He can be reached at yjjung86@shinhan.com -- Ed.Concerns over weakening policy momentum in North AmericaIn the secondary battery sector, we had previously recommended battery separator makers as our top picks based on the following reasons: 1) benefit
The author is an analyst for Shinhan Securities. She can be reached at heeyeon.lim@shinhan.com -- Ed.KRW652.8bn buyback, KRW400bn cash dividend expected in 2023Meritz Financial Group’s cumulative shareholder return for 2023 is expected to reach around KRW1.05tr when applying its mid-term shareholder
The South Korean government has asked the U.S. to clearly define the Chinese companies from which it should not be procuring essential minerals for electric vehicle batteries under the conditions of subsidy tax credit payments in the U.S. Inflation Reduction Act (IRA).According to a U.S. government
The U.S. Treasury Department announced on June 16 that it will continue to list South Korea on the currency watchlist on its official website.Other countries included on the list are China, Switzerland, Germany, Malaysia, Singapore, and Taiwan. Japan, which was on the previous watchlist, is now off.
Some media outlets reported that the U.S. government has approved Gotion High Tech to build a cathode and anode plant to supply lithium iron phosphate (LFP) batteries in the United States. Gotion is one of China’s top four battery makers.On June 14, Fox News reported that the Committee on Foreign In
The author is an analyst for Shinhan Securities. He can be reached at jk.ahn@shinhan.com -- Ed.US yields to slow their rise after May CPI release and June FOMC meetingThe market’s focus is now shifting to the US Fed’s FOMC meeting on June 13-14 (local time). KTB yields have been on a steep uptrend f
The United States is officially shifting its Chinese strategy from “decoupling” to “derisking.”On June 4, White House National Security Advisor Jake Sullivan said in a CNN program, “The U.S. economy does not seek to decouple from China, it seeks to derisk it.” This came more than two months after he
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.Following the debt ceiling deal, we expect the US government and Fed’s ‘double QT’ to replace rate hikes. In Dec 2021, the US government’s short-term borrowing led to shrinking MMF balances, a higher
The Hyundai and Kia labor unions are expected to demand at least 4.6 trillion won (US$3.5 billion) in performance-based bonuses alone in wage and collective bargaining negotiations for 2023. Many in the Korean business community are concerned that this will weaken the competitiveness of the Korean a
The author is an analyst for Shinhan Securities. He can be reached at jk.ahn@shinhan.com -- Ed.KTB yields on a steep uptrend since end-May on issues at home and abroadThe 3Y KTB yield has now rebounded near 3.6% after remaining below the base rate of 3.5% since mid-March, putting an end to the negat
The author is an analyst for Shinhan Securities. He can be reached at kw.eun@shinhan.com -- Ed.Reasons behind weak share performance of SKShare performance has remained sluggish with SK's major listed and unlisted subsidiaries posting weaker earnings amid a shift in investor sentiment toward the
The author is an analyst at NH Investment & Securities. He can be reached at dongyang.kim@nhqv.com -- Ed.In 2022, the NPS set aside 43.1% of its assets for responsible investment. At the NPS, responsible investment has become a key consideration for investment in a range of assets, including domesti
The author is an analyst for NH Investment & Securities. He can be reached at sw.kang@nhqv.com -- Ed.Debt ceiling negotiations are both an event risk and a fundamental risk. After a deal is reached, market focus should shift to: 1) the reduction of short-term money market liquidity; and 2) governmen
The author is an analyst for NH Investment & Securities. He can be reached at junsup@nhqv.com -- Ed.Samsung F&M’s 1Q23 earnings displayed a differentiated K-ICS ratio and a significant difference between estimated and actual figures. Of particular attraction, with K-ICS ratio reaching 273%, it is hi