Latest news with #Nextrade
Korea Herald
12-05-2025
- Business
- Korea Herald
Samyang Foods' stock tops W1m on Buldak boom
Shares of Samyang Foods surged past 1 million won ($715) on Monday, hitting an all-time high on the back of strong global demand for its fiery Buldak noodles. The stock opened at 1.001 million won per share, up 0.81 percent from Friday's close, briefly touching 1.004 million won in premarket trading on Nextrade. As of 1 p.m., the shares had slipped back to around 960,000 won. The milestone puts the noodle maker among a rare group of Korean firms with six-figure share prices. Currently, only Samyang Foods and Samsung Biologics hold this distinction. The rally underscores Samyang's swift ascent. The stock has nearly doubled from around 500,000 won in October and is up fivefold from August 2023, when it first crossed the 200,000-won mark. Behind the soaring stock price are record earnings. Samyang posted 344.2 billion won in operating profit in 2024, up 133 percent from the previous year. Annual sales rose 45 percent to 1.73 trillion won, with overseas revenue accounting for almost 80 percent — 1.33 trillion won, up from 800 billion won in 2023. The company's overseas sales crossed the 1 trillion won mark for the first time, driven by rapid growth in the US and China. Sales at its US unit jumped 127 percent on-year to $280 million, while its Chinese operations brought in 2.1 billion yuan ($290 million), marking a 75 percent increase. To meet rising demand, Samyang is set to begin operations at its second domestic plant in Miryang, South Gyeongsang Province, in June. It is also building its first overseas facility in China, with six production lines slated for completion by January 2027. Samyang shows no sign of slowing momentum, with market tracker FnGuide projecting first-quarter sales to rise 29 percent on-year to 498.2 billion won and operating profit to grow more than 30 percent to 104.5 billion won. Market sentiment remains bullish as well. Jang Ji-hye, an analyst at DS Investment & Securities, recently raised her price target from 1 million to 1.2 million won, citing robust global appetite for Buldak products and expanding production capacity. Yuanta Securities analyst Son Hyun-jeong sees strong growth potential in Samyang as it pushes to turn its instant noodle brand into a global "mega-brand," with the Buldak line now extending into sauces, snacks and ready-made meals.
Korea Herald
19-03-2025
- Business
- Korea Herald
Kospi trading halted for 7 minutes due to tech glitch
First all-stock suspension since 2005 follows system error amid alternative trading exchange rollout South Korea's main bourse, Kospi, experienced a brief trading suspension on Tuesday, with the Korea Exchange attributing the issue to a technical glitch triggered by a newly introduced function. Trading on the Kospi market was halted for seven minutes starting at 11:37 a.m., during which brokerages were unable to retrieve quotes or process orders. This marked the first time since the Korea Exchange's launch in 2005 that all Kospi-listed stocks were suspended. The suspension was caused by a system malfunction during the trading of Dongyang Steel Pipe, a local steel pipe manufacturer, which saw a surge in transaction volume amid a broader rally in the steel sector. According to the KRX, the issue stemmed from a technical error related to a new price-setting method, "mid-price quoting," which conflicted with an existing method, causing delays in transaction executions. The method, which sets the order price at the midpoint between the best bid and ask prices, was introduced with the launch of Korea's first alternative trading system, Nextrade, on March 4. To align with Nextrade, KRX also adopted this feature, along with other new quoting methods, on the same day. Normal trading resumed at 11:44 a.m. for all stocks except Dongyang Steel Pipe, which remained halted until 3 p.m. while the exchange identified and resolved the issue. The tech-focused secondary bourses, Kosdaq, and trading on Nextrade did not experience disruptions. Investors in Dongyang Steel Pipe voiced frustration after being unable to execute trades, particularly as the stock had surged nearly 20 percent before the suspension and gained further after trading resumed at 3 p.m., closing at the daily price limit of 1,119 won ($0.77), up 29.97 percent. Seoul-based market expert Yi Junesuh noted that, while the recent error was not directly caused by Nextrade, its introduction may have pressured the KRX into hasty decisions. "Alternative systems have their merits in driving market progress through competition and addressing investor needs, but they require thorough testing to integrate with the existing system," said Yi, a business administration professor at Dongguk University. "It seems the KRX may have been pressured by Nextrade's launch to implement changes before the system was fully prepared." Yi dismissed concerns that Nextrade's growing presence itself would undermine system stability. The alternative exchange is set to expand the number of tradable stocks during the premarket and aftermarket hours to 800 from the current 110 by the end of this month, with some suggesting that the rapid pace of stock additions may overwhelm the system. "Although trading volume will increase with the addition of new stocks, the existing system should be able to handle it," the professor added. To prevent any future disruptions with the addition of stocks on Nextrade, KRX plans to conduct joint inspections with the alternative exchange operator every weekend until the end of April to prevent similar issues.
Korea Herald
17-03-2025
- Business
- Korea Herald
Nextrade expands stock trading
South Korea's first alternative stock trading system, Nextrade, also known as NXT, has expanded its trading service to 110 stocks, following the smooth launch of its operations earlier this month. The system opened to the public on March 4, initially offering 10 different stocks for trading, and expanded to 110 on Monday. From the Kospi, newly listed stocks include Korean retail giant Shinsegae, energy-to-construction giant GS, top ramyeon maker Nongshim, Hyundai E&C and Samsung Securities. Newly available Kosdaq stocks include entertainment powerhouses Studio Dragon and CJ ENM, as well as biopharmaceutical company Medytox. From its launch on March 4 until March 13, 10 stocks were available for trading on Nextrade, which recorded a transaction volume during that time of 131.5 billion won ($90 million). On the Korea Exchange, the main bourse operator, the transaction volume for the same 10 stocks over that period reached 494.8 billion won, putting Nextrade's market share at around 25 percent. Of the shares, YG Entertainment was the most traded stock on the alternative platform, with a volume of 45.7 billion won during the period, followed by Dongkook Pharmaceutical at 32.2 billion won and S-Oil at 21.6 billion won. However, in its initial days, Nextrade failed to attract institutional and foreign investors, with most transactions coming from retail investors. From March 4 to 7, the trading volume on Nextrade was 79.9 billion won, with retail investors accounting for 78.1 billion won, or 97.8 percent of the total. Trading by institutional investors and foreign investors stood at 1.2 billion won and 460 million won, respectively. 'Retail investors accounted for most of the trading volume for both the Kospi and the Kosdaq markets on Nextrade,' analyst Jeon Kyun from Samsung Securities said. 'Most retail investors chose to trade via the Smart Order Routing system based on the (brokerage firms') duty of best execution.' Brokerage houses are required to fulfill the duty of best execution, meaning they evaluate which bourse operator can better serve customers in terms of price or stability. Trades are executed via an automated system called Smart Order Routing. "More investors are likely to use Nextrade to take advantage of companies updating their regulatory filings after the main market closes," analyst Shin Min-sub from DS Investment & Securities said. "Nextrade's market share has the potential to increase as competition to bring down commission rates heats up and investors are drawn to the alternative system for its cheaper fees." From March 24, Nextrade will expand the range of shares for trading to 350 stocks, including market bellwethers Samsung Electronics and SK hynix. The number will increase to 800, accounting for over 30 percent of listed companies here, on March 31.
Korea Herald
04-03-2025
- Business
- Korea Herald
Korea's first alternative stock exchange goes live
Breaking Korea Exchange's nearly 70-year monopoly, Nextrade offers extended trading hours, lower commission fees Nextrade, South Korea's first alternative stock trading system, began operations on Tuesday, introducing a 12-hour trading system that extends beyond traditional market hours. The key advantages of trading on Nextrade include flexible trading hours and lower commission fees. However, a limited number of available stocks and low initial liquidity are cited as potential drawbacks. 'We will make every effort to ensure that Nextrade provides swift, innovative services that meet the needs of the local capital market,' said Nextrade CEO Kim Hak-soo during the platform's launch ceremony in western Seoul on Tuesday. Here are key questions and answers regarding the nation's new secondary stock exchange that ended Korea Exchange's monopoly of almost 70 years. What is Nextrade? Nextrade is South Korea's first alternative stock exchange. It was launched by a consortium of 34 securities and tech firms in November 2022 to promote competition in the domestic capital market. After receiving final regulatory approval in February, Nextrade officially went live on Tuesday, breaking the monopoly previously held by Korea Exchange. What are the benefits of trading on Nextrade? Unlike KRX, which operates from 9 a.m. to 3:30 p.m., Nextrade offers extended trading hours, allowing investors to trade in the early morning or evening. Nextrade's trading hours span 12 hours a day, from 8 a.m. to 8 p.m. Premarket hours run from 8 to 8:50 a.m., regular market hours from 9 a.m. to 3:20 p.m. and aftermarket hours from 3:40 to 8 p.m. For operational convenience, trading is paused for 10 minutes twice a day: 8:50 a.m.–9:00 a.m. and 3:20 p.m.–3:30 p.m. Nextrade will charge commission rates 20-40 percent lower than KRX's fee of 0.0023 percent. Additionally, Nextrade will waive all commission fees until April 30 to encourage trading activity. Are all listed stocks available on Nextrade? No. In its first two weeks of operation, Nextrade will offer only 10 stocks for trading: Kospi-listed stocks: Lotte Shopping, Cheil Worldwide, Kolon Industries, LG Uplus, S-Oil Kosdaq-listed stocks: Golfzon, Dongkook Pharmaceutical, SFA, YG Entertainment, Com2uS By March 17, the number of available stocks will increase to 110. By March 24, it will expand to 350, including major stocks such as Samsung Electronics, SK hynix, Hyundai Motor, Naver and Kakao. Eventually, 800 stocks will be available for trading by March 31. Currently, exchange-traded funds and exchange-traded notes are not available on Nextrade, but the operator hopes to introduce them later this year. Can investors choose between KRX and Nextrade? Yes. During regular market hours (9:00 a.m.–3:20 p.m.), when both Nextrade and KRX operate, investors can choose which platform to use, considering factors such as commission fees, trading speed and bid price. During premarket and aftermarket hours, when only Nextrade is operational, investors must use Nextrade if they wish to trade. If investors do not make a selection, brokerage houses will decide on their behalf based on the duty of best execution, meaning they will evaluate which exchange offers better pricing or stability and execute the transaction via the Smart Order Routing system. Currently, 14 major brokerage firms, including Mirae Asset Securities, Kiwoom Securities, and Samsung Securities, support trading on Nextrade during all operational hours. Another 14 mid-sized brokerage firms, such as Shinhan Securities and Kakaopay Securities, only offer trading during Nextrade's premarket and aftermarket hours for the time being.
Korea Herald
11-02-2025
- Business
- Korea Herald
KRX CEO labels corporate reform drive a 'success'
The South Korean government's push to boost the market value of listed companies here has been 'successful' when considered apart from external factors, according to the chief of the country's stock market operator. "Leaving out the variable of international competition, the initiative has been significantly successful in terms of resolving the (Korea) discount," Korea Exchange CEO Jeong Eun-bo said in a press conference at the bourse operator's headquarters in Yeouido, western Seoul, on Tuesday. Last year, the government rolled out a corporate value-up program that encourages listed companies to boost their corporate value and enhance shareholder returns. The initiative aimed to resolve the "Korea discount," which refers to the tendency of companies listed here to have lower market valuations than their global peers. 'The rise in the price of banking shares -- a sector not heavily affected by international competition -- may be an outcome of the value-up program,' Jeong said. 'But for sectors influenced by international competition, it is difficult to assess whether their share price fluctuations are due to the (value-up) initiative or changes in the global environment.' Yet, acknowledging that local investors are continuing to expand their holdings in other investment vehicles such as the US stock market and virtual assets, Jeong vowed to push for additional measures such as tax incentives to encourage companies to strengthen their corporate reform efforts. From June, trading for around 10 derivatives will be extended to overnight hours, from 6 p.m. to 6 a.m. The measure was drawn up to help foreign investors hedge after-hour risks. The bourse operator also plans to open new offices in New York and London this year, strengthening its global presence. Meanwhile, the Korea Exchange will soon have a local rival for the first time in nearly 70 years, as the alternative trading system Nextrade is set to make its debut on March 4. 'With the introduction of a new player, the Korea Exchange will face a decline in profitability. The years of relying on transactional commissions has ended. The Korea Exchange has to diversify its revenue sources,' Jeong said.
