6,384.24KOSPI · Oct 12 close · −3.65% · fourth straight day of decline; Kosdaq 849.19 (−4.83%)

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1,335.1 wonWon per dollar · Oct 12 Seoul regular session close · down 7.7 won · intraday 1,331.8 won, the lowest in a little over two years
S&P 5007,811.54▲0.59%10/9Nasdaq27,366.17▲0.64%10/9KOSPI6,384.24▼3.65%10/12KOSDAQ—USD/KRW1,335.1▼7.7 KRW10/12WTI$91.85▲0.39%10/9
Security · North KoreaPress ✓ 9 outlets · range under Joint Chiefs analysis

North Korea fires several ballistic missiles from Pyongyang area, four days after South Korea's hypersonic test

The Joint Chiefs of Staff said some flew more than 900 km. Japan detected at least two and believes all fell outside its exclusive economic zone

The Joint Chiefs of Staff said on the 12th that at around 9:20 a.m. it detected several ballistic missiles fired from the Pyongyang area into the East Sea (Yonhap, Korea Economic Daily, Kyunghyang Shinmun). It first announced an ‘unidentified projectile’, then confirmed several ballistic missiles, and some were reported to have flown more than 900 km (Yonhap, SBS, Asia Economy). Japan's Ministry of Defense said objects believed to be ballistic missiles were launched in succession and that it believes all fell outside Japan's exclusive economic zone (Yonhap, Korea Economic Daily). It later added that there were at least two and that it was analyzing whether they performed irregular maneuvering (Yonhap). Irregular maneuvering means a missile leaves its set parabolic path and changes direction or altitude in flight. It is nine days since North Korea's previous ballistic missile launch on the 3rd of this month (Dong-A Ilbo). The National Security Office held an emergency situation review meeting (Yonhap, Kyunghyang Shinmun), and the Foreign Ministry called for an immediate halt, calling it a violation of UN Security Council resolutions (Yonhap). China's Foreign Ministry again declined to comment (Yonhap, KBS). The Japan Coast Guard urged people who find fallen objects not to approach them and to report them (Dong-A Ilbo).

The timing overlaps. Cheong Wa Dae said on the 8th that the Agency for Defense Development had succeeded in the first test launch of a hypersonic glide vehicle under development, with President Lee Jae-myung observing (Segye Ilbo, Seoul Shinmun). The weapon is described as separating at the target altitude, then coming down low and flying an irregular trajectory; its speed and range were not disclosed. North Korea reported through the Korean Central News Agency that its launch on the 3rd was a drill for an intermediate-range strategic missile observed by State Affairs Commission Chairman Kim Jong-un (SBS). Kyunghyang Shinmun wrote that this launch came four days after the South's test and is ‘analyzed as a military response’, and Korea Economic Daily also read it as a tit-for-tat. But North Korea's official explanation had not come as of the night of the 12th. With the type and range still under Joint Chiefs analysis, it is too early to pin down the motive. On the same day the European Union added three North Korean missile technicians and four entities to its sanctions list (Yonhap, single report). Today it is worth watching whether North Korea issues an official position, whether there are further launches, and the result of the analysis of the irregular maneuvering that Japan mentioned.

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By the numbers
900 km+Flight distance of some of the missiles, per the Joint Chiefs (Yonhap, SBS)
4 daysFrom the announcement of South Korea's hypersonic glide vehicle test (the 8th) to this launch (Kyunghyang Shinmun, Korea Economic Daily)
9 daysGap since the launch on the 3rd of this month (Dong-A Ilbo)
Markets · StocksPress ✓ 4 outlets · closing figures per exchange tally

KOSPI plunges 3.65% to 6,384.24. Foreign selling continues even after Samsung's 100 trillion won earnings

The KOSPI, trading for the first time after the Hangeul Day holiday on the 12th, closed down 3.65% at 6,384.24 (Dong-A Ilbo, Yonhap). It was the fourth straight trading day of decline and the biggest drop since the 2nd of last month (Dong-A Ilbo). The Kosdaq fell 4.83% to 849.19 (Yonhap). Samsung Electronics made a preliminary disclosure on the 8th of third-quarter operating profit of 107.4 trillion won (Dong-A Ilbo, Kyunghyang Shinmun), yet Samsung Electronics and SK hynix both fell in the 4% range that day (Yonhap). Yonhap reported that foreigners were net sellers of 199 trillion won of KOSPI shares this year, and Korea Economic Daily pointed to 10 trillion won over the last five days. SBS cited the end of the effect of Samsung Electronics' share buyback, and Korea Economic Daily cited the OpenAI bubble debate, as backdrops to the fall. The won-dollar rate at the close of the Seoul foreign exchange market (3:30 p.m.) was 1,335.1 won, down 7.7 won, and it fell as far as 1,331.8 won intraday, the lowest in a little over two years (Yonhap, Kyunghyang Shinmun). Exporters' continued dollar selling is given as the explanation (Yonhap). On the same day foreigners net bought 3-year government bond futures at the second-largest scale on record, and Korean Treasury bond yields fell across the board. The 3-year yield was 3.921% a year (Yonhap).

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Word of the day
Net sellingFinance

The amount an investor sold minus the amount bought over a given period. Foreign net selling is read as a signal that foreign money is leaving the market.


Economy · FinancePress ✓ 7 outlets · remarks per the parliamentary audit

BOK governor sorry for failing to warn on leveraged ETFs. With prices above target, will judge timing and pace of further hikes

Bank of Korea Governor Shin Hyun-song said at the parliamentary audit of the National Assembly's Finance and Economic Planning Committee on the 12th, regarding single-stock leveraged exchange-traded funds (ETFs), “We did not warn enough. I am sorry to the public” (Yonhap, Dong-A Ilbo, Kyunghyang Shinmun, SBS). The product was listed on May 27 this year and was singled out as a cause of heightened KOSPI volatility from May to July (Dong-A Ilbo). After the heads of the Ministry of Finance and Economy and the financial authorities, now the central bank governor has apologized.

On prices, he said they would stay above the Bank of Korea's 2% target for a considerable time, and that the timing and pace of any further base rate hike would be judged according to economic conditions (Dong-A Ilbo, Chosun Ilbo, News1). He explained that the two consecutive hikes in July and August bought time by moving ahead of the United States (Chosun Ilbo, News1). He also said concerns about financial imbalances from Seoul-area housing prices and household debt remain (Yonhap, KBS). He saw room for the exchange rate, still higher than in past years, to fall further (Yonhap). He said suppressing core inflation in advance is important to reaching the target, and explained that a 0.5 percentage point base rate hike lowers inflation by 0.08 percentage point (Yonhap). A remark that he had explained in advance why the international ranking of foreign-exchange reserves was not disclosed grew into a controversy over a false explanation (Yonhap, single report).

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Industry · LaborPress ✓ 5 outlets · allegation under investigation, figures per the union

President Lee orders stern response to DN Automotive ‘lead-removal injection’ allegation. Shares plunge 20% in a day

Cheong Wa Dae said on the 12th that President Lee Jae-myung defined as a “grave human rights violation” the allegation that auto battery maker DN Automotive deceived workers into receiving injections that help flush lead from the body by calling them ‘vitamin injections’, and ordered a stern response (Yonhap, Chosun Ilbo, Korea Economic Daily, Newsis). The Ministry of Employment and Labor referred the company to police for investigation on suspicion of obstruction of business (Yonhap). According to union-side data, special health examinations of about 110 workers from 2022 to 2025 showed an average blood lead level of 15 µg/dL. That is more than 10 times the 1.44 µg/dL average for ordinary adults.

The company's chief executive apologized and said he would cooperate with the investigation (Yonhap). No legal judgment on the allegation has come yet. The shares closed the day down 20.33% at 39,200 won (ZDNet Korea, Seoul Shinmun). A special health examination is a checkup that workers who handle hazardous substances receive regularly, and blood lead level is one of its indicators. The union claims the injections were meant to lower the figures and distort the checkup results. Whether that happened and who ordered it will be settled by the investigation.

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Politics · JusticePress ✓ 5 outlets · vote count from Asia Economy alone

Human rights commission apologizes to the nation 1 year 8 months after recommending protection of Yoon Suk-yeol's right of defense. Chair abstains

The National Human Rights Commission of Korea on the 12th, at its 17th plenary committee meeting, handled an agenda item to reflect on its resolution of Feb. 10, 2025 recommending that former President Yoon Suk-yeol's right of defense be guaranteed, and to apologize to the nation in the institution's name (Yonhap, Kyunghyang Shinmun, Dong-A Ilbo, Chosun Ilbo). It comes 1 year and 8 months after the recommendation was issued. The item was put forward as ‘Resolution on Repealing the Feb. 10, 2025 Plenary Committee Resolution and Apologizing to the Nation’ and passed as amended (Dong-A Ilbo). The recommendation had called for guaranteeing the right of defense of former President Yoon, who was under investigation and on trial on insurrection charges after the Dec. 3 emergency martial law (Kyunghyang Shinmun).

The original item also included ‘repealing’ the existing resolution, but that was dropped in discussion and only the apology passed (Dong-A Ilbo, Asia Economy). Asia Economy reported that the vote was 6 in favor and 4 against, and that Chair Ahn Chang-ho abstained. Chair Ahn is said to have stated that the decision was not meant to defend martial law. At the meeting on the 14th of last month, a vote failed after a proposal to hear more outside expert opinion (Asia Economy). The wording of the apology and how it will be announced have not yet been reported, and the reasons of the commissioners who opposed have not been confirmed.

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In brief
  • KIA beat LG 4-2 and went straight to the Semi-Playoff as third place in pro baseball. Kim Do-young clinched the home run title with a game-winning two-run homer.Yonhap and 6 other reports
  • Lotte's Reyes added four hits on the final day to finish first in hits with 211 for the season. The pro baseball regular season ended that day.Yonhap · single report
  • Kim Dong-sun, the third son of Hanwha's chairman, said he will launch a tender offer for 16.06 million shares of Hanwha M&S. He said the aim is stronger responsible management, and the share price jumped 24%.Yonhap
  • Seoul's daytime high of 30.1°C and Daejeon's 31.5°C were the highest ever recorded for October. Rain falls through midday on the 13th, then temperatures drop.Yonhap
  • KEPCO's president said at the parliamentary audit that Samsung Electronics and SK hynix will bear 80% of the grid costs for the Honam semiconductor complex. KEPCO will cover 20%.Electronic Times · Yonhap
  • An explosion during a school trip in northern Israel killed 1 student and injured 19. The Israel Defense Forces helped with rescue at the scene, and the cause has yet to be confirmed.Yonhap · Israel Defense Forces (IDF)
  • Yonhap reported that China sanctioned sitting ministers of countries that have diplomatic ties with Taiwan for the first time. China claimed they had harmed its core interests.Yonhap · single report
  • Yonhap reported that the Korea Media and Communications Commission is expected to decide this month on fines against Google and Apple over in-app payments. The amount is not known.Yonhap · single report
Seven minutes every morning, one front page

Unverified — what we could not confirm

“Russia and Ukraine have agreed to an energy truce.” A claim President Trump posted on social media. President Zelensky said Ukraine would comply if Russia does, and on the 12th said Russia had already violated it (The Hill, ABC). The Kremlin said only that “contacts are under way at present” (Yonhap).
“North Korea's missiles are retaliation for South Korea's hypersonic test.” An interpretation by Kyunghyang Shinmun and Korea Economic Daily. North Korea's official explanation had not emerged as of the night of the 12th, and the Joint Chiefs of Staff have not stated a motive either.
“The EU will cap Chinese hybrid car imports at 350,000 a year from Dec. 1.” A report citing a plan outline obtained by Bloomberg (Yonhap, Chosun Ilbo). No official EU announcement has been confirmed.

Influencer watch

  • Donald Trump Truth Social · 10/12President Trump posted on Truth Social that the EU paid Russia $250 billion for energy and that he made the right choice for the American people.
  • Volodymyr Zelensky Telegram · 10/12President Zelensky posted on Telegram that Ukraine will observe the energy truce if Russia does, and that Russian refineries did not burn overnight.
  • Volodymyr Zelensky Telegram · 10/12President Zelensky posted on Telegram that Ukraine did not hit Russian energy facilities overnight after Trump spoke of an energy truce.
  • 김어준 유튜브 ‘김어준의 뉴스공장’ · 10/12Broadcaster Kim Eo-jun said on his show 'Kim Eo-jun's News Factory' that he hopes the inspection of Im Eun-jung does not lead to discipline.

Statements as posted, not fact-checked.

Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.
INSIDENorth Korea fires several ballistic missiles from Pyongyang area, four days after South Korea's hypersonic testSecurity · North KoreaKOSPI plunges 3.65% to 6,384.24. Foreign selling continues even after Samsung's 100 trillion won earningsMarkets · StocksBOK governor sorry for failing to warn on leveraged ETFs. With prices above target, will judge timing and pace of further hikesEconomy · FinancePresident Lee orders stern response to DN Automotive ‘lead-removal injection’ allegation. Shares plunge 20% in a dayIndustry · LaborHuman rights commission apologizes to the nation 1 year 8 months after recommending protection of Yoon Suk-yeol's right of defense. Chair abstainsPolitics · Justice