KOSPI Battles Around 5,400 as Jensen Huang Risk Comes Into Focus; Real Estate Tax Debate Adds Uncertainty to Fund Flows

After volatile trading early in the session, the KOSPI briefly rose above 5,400, gaining nearly 1%. It later pared its advance and traded slightly higher around 5,388. The KOSDAQ, which had rebounded sharply for two consecutive sessions, fell about 0.4% but held near the 700 level.

The won continued to strengthen, with the won-dollar exchange rate falling to the 1,332 range. Record export momentum was also cited as a factor behind the won’s strength. Foreign investors made modest net purchases on the Korea Exchange, extending their buying streak to three consecutive sessions.

Reports related to Nvidia continued to emerge during the session, adding to volatility, while weakness in Nvidia shares also pushed Nasdaq futures lower. With options expiring that day, concerns about late-session flows and volatility also increased.

The Wall Street Journal reported further allegations that Nvidia CEO Jensen Huang had improper relationships with two women. This followed earlier reports of alleged links to Chinese spies, as well as reports that the board was considering the possibility of removing Huang as CEO. The reports and allegations require verification.

The issues surrounding Huang fall into three areas: the possibility that China had access to technology or information, a class-action lawsuit alleging that shareholders were not adequately informed, and potential violations of company rules. The lawsuit alleges that the company’s failure to disclose information led to a share-price decline and shareholder losses. Some estimates put the cumulative market value lost since the reports emerged at hundreds of billions of dollars.

Nvidia shares fell about 7% intraday to the $160 range, while its market capitalization declined to about $4.1 trillion, based on the previous day’s closing price. Concerns about a leadership vacuum were also heightened by the absence of a publicly disclosed succession plan and a structure in which many executives report directly to Huang. Others countered that the company has core technology and investment teams in place, meaning its business operations do not depend solely on the CEO.

Nvidia is scheduled to report earnings after the U.S. market closes on November 17. The market is watching not only the results themselves but also how the company addresses the scandal and succession issues during the Q&A. Huang’s sudden departure or an interim leadership gap could weigh on the share price in the short term, though comparisons were made with large companies that have often absorbed such shocks over time.

Reports said demand for Anthropic’s IPO exceeded the number of shares on offer. Bloomberg reported that interest from major investors was driving initial demand. Some forecasts suggested that, including a private placement, the fundraising could exceed SpaceX’s in scale.

The indicative price range was reported at $70–$78 per share, and further reports said underwriters could raise the price. However, neither the final offering price nor the trading price after listing had been determined. Anthropic CEO Dario Amodei and JPMorgan CEO Jamie Dimon were also reported to be scheduled to take part in an online event on Friday.

Anthropic was reported to be set to price its offering on the 18th and begin trading on the 19th. In the United States, trading may not begin at a fixed time on listing day; it can start after bids and orders have accumulated. Investors should consider not only the offering price but also the post-listing float and lock-up expiration terms.

No route for Korean investors to participate in the offering had been confirmed, while efforts to secure some of the shares were reported in Japan and Australia. The case in which Korean brokerages solicited investor funds for the SpaceX listing but failed to secure an allocation remains under review by regulators. That precedent was cited as one reason Korean firms have been reluctant to pursue Anthropic IPO allocations aggressively.

JYP Entertainment shares surged about 18% intraday after its earnings release, rising to around 45,800 won. Revenue and operating profit exceeded market expectations by about 15% and 14%, respectively, supporting the shares. Stray Kids’ performance was also cited as a factor in the earnings improvement.

Entertainment stocks broadly rebounded, with SM Entertainment up about 6% and YG Entertainment and HYBE each gaining around 5%. A stronger won can weigh on entertainment companies with significant overseas revenue, but better-than-expected results improved investor sentiment. Some analysts said the shares reacted strongly to even modestly positive news after their recent weakness.

However, it remains to be seen whether an 18% one-day gain signals a reassessment of long-term growth prospects. The performance of established acts such as Stray Kids and TWICE was already known to the market, while concerns remain that the industry lacks a clear new growth driver. The attempted acquisition of JYP by Japanese investors was also cited as a case in which the share price rose temporarily but failed to sustain further momentum.

VIP Asset Management, the second-largest shareholder of Lotte Rental, welcomed a tender offer from U.S. private equity firm Texas Pacific Group (TPG) and decided to tender all of its shares. The offer price is 59,000 won per share. The offer drew attention because it gives ordinary shareholders the opportunity to sell on the same terms as those on which TPG previously bought the controlling shareholder’s stake.

Under the current system, an acquirer is not required to offer ordinary shareholders the same price even if it secures control by buying only the controlling shareholder’s stake. In this case, the acquirer voluntarily proposed a tender offer for ordinary shareholders, and VIP Asset Management decided to participate. Whether a structure in which the acquirer first negotiates a price with the controlling shareholder and buys its stake before making a tender offer to the remaining shareholders constitutes a complete model for protecting minority shareholders remains a separate issue.

Research findings were also cited suggesting that offering all shareholders the opportunity to tender can lower the control premium and reduce acquisition costs. In the comparison, the premium was about 60% when only the controlling shareholder’s stake was acquired, versus about 23% in a tender offer to all shareholders. Advocates argued that a mandatory tender offer requirement could contribute to fair price formation and more active transactions rather than discourage mergers and acquisitions.

K-pop has become a mainstream cultural force in global markets, but equity investors are looking for ways to expand beyond established growth trajectories. Key questions include whether the industry can produce next-generation intellectual property to follow BTS and continue growing without relying on the popularity of existing artists. Human-capital risks, such as a member’s hiatus or other incidents disrupting a group’s revenue stream, are also factored into valuations.

Fan platforms, paid content, and merchandise sales already operate at considerable scale, prompting concerns that they cannot be considered new growth drivers on their own. A reopening of the Chinese market could create a new base for tours and revenue, but an actual resumption remains uncertain given conditions since the THAAD-related restrictions. Developing new services and revenue models using emerging technologies such as AI was also cited as a challenge for the industry.

Connecting fan merchandise and payments to tools such as stablecoins to facilitate cross-border transactions was proposed as one example of a new business model. The emergence of a major new artist capable of surpassing established stars and platforms could also shape the industry’s future growth potential. K-pop’s contribution to Korea’s cultural influence and exports of other consumer goods should be considered separately from the investment appeal of individual stocks.

Analysts said that intensifying espionage allegations related to China could lead to tighter U.S. technology restrictions on the country. Nvidia’s official accounts are said to show almost no exports to China, but reports of exports through indirect channels worth $10 billion were also cited. Tighter restrictions could reduce the profitability of those sales or block them altogether.

If restrictions extend to Southeast Asian routes used to circumvent controls and to semiconductor industry clusters, local supply chains could also come under pressure. Korean companies may face more stringent reviews when bringing equipment into their Chinese factories for upgrades, maintenance, and repairs. In the short term, this could raise costs and business uncertainty for the companies involved.

On the other hand, if restrictions slow China’s pursuit of AI and semiconductor technologies, Korean companies may be able to sustain their technological lead over the medium to long term. The impact of tighter China restrictions on Korea’s semiconductor industry needs to be assessed by weighing both a slowdown in China’s progress and the resulting supply-chain burden on Korean companies.

The Financial Services Commission is scheduled to hold a capital markets meeting at the Korea Exchange on the 13th to discuss improving corporate value and revitalizing the KOSDAQ. The specific agenda requires further confirmation, but KOSDAQ measures are reportedly set to be included. With plans to revitalize the KOSDAQ having been pushed back from the second half of the year to year-end or next year, the market is waiting for concrete action.

China was cited as having supported low-interest loans for share buybacks and encouraged institutional investors to deploy capital, while also imposing restrictions on IPOs and major shareholders’ share sales. Taiwan has announced measures including the immediate deployment of market-stabilization funds, share buybacks, institutional inflows, and consideration of tax incentives. Measures related to short selling were also described, including raising margin requirements from 90% to 130% and lowering limits on borrowed shares.

In Korea, meetings among financial authorities and related institutions continued after the market plunge, but no comprehensive measures with a noticeable impact on the market have yet been announced. The financial authorities’ measures to ease forced liquidations were left to individual brokerages to implement, and some firms reportedly require investors to apply directly to qualify. Questions were also raised about how much the measures could actually reduce the burden.

Lee Kwangsoo identified a lack of trust in policy as a factor behind rising speculation and volatility in the real estate market. He criticized the Democratic Party leadership for calling for the same 1.4 billion won deduction for both owner-occupied and non-owner-occupied homes, after the government proposed different deductions for the comprehensive real estate tax: 1.4 billion won for owner-occupied homes and 900 million won for non-owner-occupied homes. He argued that returning to a uniform deduction after starting from the existing 1.2 billion won deduction and proposing a distinction based on occupancy would undermine policy consistency.

Lee argued that tax changes do more than alter the tax burden for some homeowners. Funds held in real estate and bank deposits can move into the stock market, where they may support corporate IPOs and investment, affecting capital-market flows. He said that signals of expanded tax benefits for homeowners could also weaken the movement of funds from real estate into equities.

He urged 13 Democratic Party lawmakers from Seoul who had not responded to questions to state their positions on real estate policy. Politicians should explain their policy direction and provide accountable answers, he said, criticizing silence as a failure to address the issue. He also called for disclosure of homeownership and sources of funds to clarify potential conflicts of interest.

Lee also criticized the financial authorities’ response to KOSDAQ measures, saying it lacked policy credibility and continuity. Rather than repeating meetings and discussions, he said, the authorities should take action that sends clear and lasting signals to the market and consider concrete measures to stabilize flows and attract capital, as in China and Taiwan. Regarding the Lotte Rental case, he also argued for introducing a tender-offer system that guarantees all shareholders an equal opportunity to sell.