Acting Prosecutor General Koo Jae-hyun Resigns, Citing Responsibility for Criminal Procedure Law Revisions
Koo Jae-hyun, the acting Prosecutor General, announced his resignation shortly after the National Assembly passed the amendment to the Criminal Procedure Law. According to Yonhap News on July 31, Koo stated during a press conference at the Supreme Prosecutors' Office that he felt a deep sense of responsibility regarding the law's revision and had just submitted his resignation letter. He had been in office for 258 days since his appointment on November 15 of last year.
Koo acknowledged the need for reflection among all members of the prosecution regarding the loss of public trust but emphasized that any institutional reforms should not undermine the essence of the prosecution's role in uncovering the truth and protecting victims and other parties involved in cases.
He expressed ongoing concerns about the amendment, stating, "The revised law forces prosecutors to rely solely on investigation records to decide on charges, making it difficult to protect victims and resulting in an inefficient structure that consumes time and resources."
Koo added, "It is regrettable and overwhelming that the amendment passed without addressing these concerns. I earnestly request that, even after the amendment is sent to the government, it be reviewed to ensure there are no gaps in the system and that it adequately protects the public."
KOSPI Surges Over 1000 Points, Achieving Record High Increase
The KOSPI index experienced a historic surge, rising over 1000 points, as concerns surrounding artificial intelligence (AI) and the semiconductor industry dissipated, leading to record foreign and institutional buying. This rebound quickly reversed the steep declines seen over the past three days. On July 31, the Korea Exchange reported that the KOSPI closed at 6595.45, up 1001.89 points (17.91%) from the previous trading day. This marked the first time the index had risen by more than 1000 points in a single day since the domestic market opened. At one point, the index peaked at 6630.77, reaching an increase of 18.54%.
This surge surpassed all previous records, including the highest increase of 11.95% during the global financial crisis on October 30, 2008, and the highest point increase of 612.52 points recorded on June 9. The KOSDAQ index also rose significantly, closing at 719.76, up 74.98 points (11.63%), reclaiming the 700-point mark.
The driving force behind this surge was the strong performance of major tech companies and news of increased AI investments from the U.S. stock market. The June Personal Consumption Expenditures (PCE) price index met market expectations, providing reassurance, while Microsoft and Amazon reaffirmed their robust cloud performance and plans for increased capital expenditures, quelling skepticism about AI investments.
The surge was led by major semiconductor stocks and top market capitalization companies. Samsung Electronics closed at 262,500 won, up 26.81% (55,500 won), reclaiming a market capitalization of $1 trillion. SK Hynix soared 29.95% (396,000 won) to close at 1,718,000 won, hitting the upper limit.
First Day of Increased Deposit Requirement Sees Drop in Single Stock Leverage ETF Trading
On the first day of the new regulation raising the basic deposit requirement, trading volume for single stock leverage exchange-traded funds (ETFs) plummeted. The basic deposit requirement increased from 10 million won to 30 million won, which is believed to have reduced investor accessibility. On July 31, the Korea Exchange reported that the total trading volume for 14 single stock leverage ETFs, including those for Samsung Electronics and SK Hynix, was 244.01 million shares. This represents a 73.8% decrease compared to the previous trading day's volume of 932.98 million shares. The trading value of the largest fund, 'KODEX SK Hynix Single Stock Leverage,' was 1.2388 trillion won, down 65.8% from the previous day's 3.6254 trillion won. Similarly, 'KODEX Samsung Electronics Single Stock Leverage' saw its trading value drop to 507.7 billion won from 1.4236 trillion won, a decrease of 64.3%.
Individual investors also shifted from net buying to net selling. On this day, individuals sold a total of 1.0427 trillion won worth of the 14 stocks, contrasting with the previous day's net purchase of 523.99 billion won.
The significant increases in Samsung Electronics and SK Hynix, which rose 26.81% and 29.95%, respectively, likely prompted a wave of profit-taking in the single stock leverage ETFs. The largest net selling was seen in 'KODEX SK Hynix Single Stock Leverage' at 591.5 billion won, followed by 'KODEX Samsung Electronics Single Stock Leverage' at 200.6 billion won and 'TIGER SK Hynix Single Stock Leverage' at 153.6 billion won. The single stock leverage ETFs based on SK Hynix closed with gains of 53-59%, while those based on Samsung Electronics rose by 48-53%.
Criminal Procedure Law Amendment to Abolish Supplementary Investigation Authority Passes National Assembly
An amendment to the Criminal Procedure Law, which abolishes the prosecution's supplementary investigation authority, passed the National Assembly on July 31, led by the ruling party. The People Power Party had previously engaged in a filibuster to block the bill's processing. During the session, the amendment was approved with 175 votes in favor, 2 against, and 1 abstention out of 178 present. The People Power Party did not participate in the vote. The filibuster, which began immediately after the bill was introduced, ended after 24 hours following the agreement of lawmakers from the Democratic Party and other ruling coalition members.
The amendment is a follow-up to the Public Prosecution Service Act and the Serious Crimes Investigation Agency Act, which will take effect on October 2, 2023. It prohibits direct investigations by prosecutors, including supplementary investigations, and grants prosecutors the authority to request supplementary investigations from judicial police officers, who must complete the investigation within a maximum of two months.
Additionally, complainants, accusers, and victims can file objections to police decisions not to prosecute, and all investigation materials must be entered into the Criminal Justice Information System (KICS). The amendment also adds new grounds for dismissing prosecutions, including cases where charges are filed due to significant illegal investigations or where the prosecution's discretion is significantly deviated.
SK Siltron Acquired by Doosan, Completing Semiconductor Vertical Integration
SK Siltron, valued at 5 trillion won, has been acquired by the Doosan Group. This acquisition completes the final piece of Doosan Chairman Park Jeong-won's strategy for vertical integration in the semiconductor industry, encompassing everything from wafer production to electronic materials and post-processing testing. On July 31, SK's board of directors approved the sale of a 70.6% stake in SK Siltron to Doosan for 2.3 trillion won. The stock purchase agreement (SPA) is expected to be signed soon, followed by regulatory approval processes.
This transaction comes approximately seven months after Doosan was selected as the preferred bidder for SK Siltron in December of last year. Initially, both parties aimed to finalize the deal in the first half of this year, but the recovery of the semiconductor market and increased demand for AI semiconductors led to a reassessment of SK Siltron's corporate value, delaying the final agreement.
Doosan anticipates that the Siltron wafer business can achieve an average annual growth rate of around 7%, setting a revenue target of approximately 3 trillion won by 2031. A Doosan representative stated, "This acquisition contract secures future growth drivers for Doosan and establishes a sustainable profit base. Siltron will not be listed, and we will focus on enhancing shareholder value based on a stable business portfolio."
Kakao Bank Union Strikes for the First Time, Over 700 Members Participate
The Kakao Bank labor union has gone on strike for the first time since its establishment, following a breakdown in negotiations with management over performance bonuses and wage increases. On July 31, it was reported that over 700 of the approximately 1000 members of the Kakao Bank corporate union participated in the strike, which involved members using their annual leave to withdraw from work.
The union demands that employee wages and performance bonuses be increased, citing a 3 billion won increase in the board of directors' compensation this year. Although the two sides discussed a salary increase of 5-6%, they reportedly did not reach a final agreement.
Management proposed a plan to pay performance bonuses equivalent to 10% of operating profit, combining cash and company stock. They also emphasized that employee treatment has been steadily improving.
The union is continuing internal discussions regarding future strike actions and schedules.
* This article has been translated by AI.
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