Samsung Electronics reported Q2 operating profit of 89.4 trillion won as Meritz Securities analyst Kim Seon-woo stated the semiconductor cycle structure has fundamentally shifted from B2C to B2B demand, with the supercycle potentially lasting 2-3 more years until big tech companies voluntarily stop investing. Trump claimed tariffs drove $21 trillion in foreign investment to the US, but the New York Times reported net foreign direct investment actually decreased when accounting for withdrawals and financial flows. US military forces struck 80+ Iranian targets after Iran attacked 3 oil tankers in the Hormuz Strait, triggering 6.46% surge in WTI crude to $74.99 and 6.31% rise in Brent crude to $78.84. The developments reflect semiconductor industry re-evaluation amid AI infrastructure buildout, disputed economic policy outcomes, and renewed Middle East geopolitical tensions affecting global energy markets.
Meritz Securities Forecasts 2-3 Year Semiconductor Supercycle Driven by B2B Demand Shift
Kim Seon-woo of Meritz Securities stated memory demand has shifted from B2C to B2B transactions, creating a fundamentally different cycle structure compared to past patterns where individual consumer spending declines triggered downturns. He explained that in the current structure, AI model performance improves according to resource input levels, and the cycle will only turn when big tech companies voluntarily stop investing in the race to achieve artificial general intelligence (AGI). Kim projected this turning point would arrive in 2-3 years at the earliest.
Kim added that SK Hynix's American Depositary Receipt (ADR) listing serves as a starting point for proper valuation assessment in global markets, and Samsung Electronics could also benefit from valuation re-rating through this development. He assessed that AI data centers are becoming national security assets, and despite Chinese memory manufacturers' pursuit, Korean companies maintain their technological lead in advanced memory processes.
New York Times Disputes Trump $21 Trillion Investment Claim with Net FDI Data
Trump stated that tariff policies attracted $21 trillion (approximately 31,800 trillion won) in foreign investment to the US, but the New York Times directly challenged this claim. The US Bureau of Economic Analysis (BEA) data showed new foreign direct investment (FDI) rose from $155 billion (approximately 234 trillion won) in 2024 to $232 billion (approximately 350 trillion won) in 2025, but net investment—which includes investment withdrawals and intercompany loans—actually decreased slightly and remained below the 10-year average.
Adnan Mazarei, senior fellow at the Peterson Institute for International Economics (PIIE), told the New York Times that investment increases are a global phenomenon and cannot be definitively attributed to tariff policies. Trump secured investment commitments of up to $5 trillion (approximately 7,541 trillion won) over a maximum 10-year period from major partners including the European Union, Korea, Japan, and Taiwan, but the New York Times noted that whether these plans materialize into actual results remains to be seen.
US-Iran Military Strikes Drive WTI Crude 6.46% Higher to $74.99
Trump stated at the NATO summit in Ankara, Turkey that the memorandum of understanding (MOU) with Iran appears to be over, sending West Texas Intermediate (WTI) crude futures up 6.46% to $74.99. After Iran attacked 3 oil tankers passing through the Hormuz Strait, US Central Command struck 80+ Iranian targets citing MOU violations, and Iran retaliated by striking 85 US facilities in Kuwait, Bahrain, and other locations, resuming hostilities that had been suspended.
Trump also directed US Treasury Secretary Scott Bessent to halt all trade with Spain, continuing strong statements toward NATO allies. Brent crude rose 6.31% to $78.84, demonstrating how Middle East geopolitical risks shook the entire international energy market.
Interactive Brokers Launches Korean Stock Trading via Samsung Securities Partnership
Interactive Brokers (IBKR), one of the world's largest online brokers, partnered with Samsung Securities to launch Korean stock trading services in May following the introduction of omnibus accounts that significantly improved foreign investor access to Korean markets. David Friedland, head of Interactive Brokers Asia-Pacific, explained that while Samsung Electronics and SK Hynix drive demand, investment interest is broadly distributed across hundreds of stocks daily.
He assessed that 10 years ago overseas investors were unfamiliar with Korean companies, but Korea has now become a top-6 global stock market that must be considered in global portfolios. International investor interest in Korean culture and industries—including K-pop, food, beauty, and automobiles—has increased significantly, raising expectations for global capital inflows.
Korean ETF Market Shifts Focus to US-Themed Products in July Listings
Of the 10 ETFs listed or scheduled for listing in July, 5 focus on US market investments—half the total—according to Korea Exchange data. The products are segmented into themes including AI infrastructure, space, robotics, big tech, and bond hybrids. NH-Amundi Asset Management is preparing to launch 'HANARO US S&P500 Active' and 'HANARO US AI Optical Communication TOP10', while Mirae Asset Global Investments introduced 'TIGER US Tech NYSE100 Active' and Kiwoom Investment Asset Management launched 'KIWOOM US Space Tech TOP2 Bond Hybrid 50'.
This contrasts with the first half when 71 newly listed ETFs concentrated on domestic investment products. Industry observers interpret this as asset managers accelerating overseas product diversification in response to increased volatility in the domestic stock market.
EU Reduces ESG Reporting Costs by €4.7 Billion as US Halts Federal Climate Disclosure
Major countries are gradually mandating sustainability (ESG) disclosure between 2025-2027, but following the Trump administration's inauguration, US federal-level climate disclosure regulations have effectively been suspended. In contrast, the EU adopted voluntary reporting standards for small and medium enterprises (VSME) and revised European Sustainability Reporting Standards (ESRS) to reduce corporate reporting costs by approximately €4.7 billion (approximately 8.2 trillion won) from 2027-2031.
Korea will mandate ESG disclosure starting in 2028 for KOSPI-listed companies with consolidated assets exceeding 10 trillion won, with plans to sequentially expand coverage to 5 trillion won and 2 trillion won thresholds. Business circles have expressed concerns that Korea's expansion pace is faster than major countries, especially as the EU is adjusting its system to reduce corporate burdens.
FAQ
What did Kim Seon-woo of Meritz Securities say about the semiconductor cycle duration?
Kim Seon-woo stated the semiconductor supercycle could last 2-3 more years, explaining that the cycle will only turn when big tech companies voluntarily stop investing in the race to achieve artificial general intelligence (AGI). He noted that memory demand has shifted from B2C to B2B transactions, creating a fundamentally different structure compared to past cycles driven by individual consumer spending patterns.
How did the New York Times dispute Trump's $21 trillion investment claim?
The New York Times reported that while new foreign direct investment rose from $155 billion in 2024 to $232 billion in 2025 according to US Bureau of Economic Analysis data, net investment—which includes withdrawals and intercompany financial flows—actually decreased slightly and remained below the 10-year average. Adnan Mazarei of the Peterson Institute for International Economics told the newspaper that investment increases are a global phenomenon and cannot be definitively attributed to tariff policies.
Why did WTI crude oil prices surge 6.46% to $74.99?
WTI crude rose 6.46% after Trump stated at the NATO summit in Ankara that the memorandum of understanding with Iran appears to be over. Iran attacked 3 oil tankers in the Hormuz Strait, prompting US Central Command to strike 80+ Iranian targets, and Iran retaliated by striking 85 US facilities in Kuwait, Bahrain, and other locations, resuming military hostilities that had been suspended.
