“KOSPI’s Rise Driven by Earnings, Not a Bubble” Experts Say [3-Minute Brief]

[At a Glance]
① Concerns of overheating amid KOSPI’s rally... Experts forecast a bull market through next year
② Producer Price Index rises 0.4% in September from previous month
③ International gold prices, after hitting record highs, see steepest drop in 12 years since 2013

MARKET INDEX

○All three major U.S. stock indices closed lower... Heightened U.S.-China tensions cited as a factor

○Reuters: "U.S. considering restrictions on exports of domestic software to China"

○Netflix and Texas Instruments fall on disappointing earnings

TOP 3 NEWS

■ ‘Bubble Theory’ Emerges Amid KOSPI’s Historic Rally… Experts Say “It’s Not a Bubble”

○KOSPI has risen about 60% since the beginning of the year, fueling concerns of overheating
○Most experts say the rise is based on changes in industrial structure and earnings, not a bubble
○Majority expect the stock market rally to continue into next year

■ SK Telecom Discount Base Effect... Producer Prices Rose 0.4% in September

○Producer prices rebounded after a month
○Last month’s telecom fee discounts and eased progressive rates for residential electricity served as a base effect
○Excluding the temporary impact of telecom services and residential electricity, the increase was just 0.1%

■ “Should Have Sold Gold Rings Earlier?”... Gold Price Plunges 5.7%, Largest Drop in 12 Years

○Gold prices soared 60% this year, triggering profit-taking
○Safe-haven assets sold off on expectations of a U.S.-China trade deal
○Silver and platinum also weakened

Graphic News: Ministry of SMEs and Startups Pursues Open Innovation to Support “Top 4 Defense Powers”

○Aims to lower entry barriers for startups and SMEs in the defense industry
○Transitioning the ecosystem, including restructuring procurement centered on large corporations
○Global defense market nears 1,400 trillion won... Korea’s presence also rising significantly

Money-Making Law

■ Even if Registration Is Canceled, No Unjust Enrichment if Contract Remains Valid

○Even if a real estate ‘registration act’ is denied, the ‘contributive act’ remains valid
○Profits from possession and use before registration cancellation are not considered unjust enrichment
○Supreme Court: “As long as the contributive act continues, possession and use are justified... Appeal dismissed”
☞Read the article: https://www.asiae.co.kr/article/lawtimes/2025102215534736700

■ In the UK, Prosecutors Are Required to Advise Police on All Cases

○UK prosecutors do not have investigative powers but are required to advise police
○Systematic cooperation between prosecutors and police from the investigation stage
○Debate in Korea over introducing a public prosecution office... “Need to design a mandatory cooperation structure”
☞Read the article: https://www.asiae.co.kr/article/lawtimes/2025102215561949888 

■ Caddie Injured by Practice Swing... “20 Million Won Compensation Ordered”

○Golfer struck caddie’s face during a practice swing, causing injury
○Court: “Violation of duty of care... Accident due to golfer’s sole negligence”
○Ordered to pay 20.32 million won including medical expenses and damages
☞Read the article: https://www.asiae.co.kr/article/lawtimes/2025102215573963972

※ ‘Money-Making Law,’ a content partnership between The Asia Business Daily and Law Times, is published every Tuesday and Thursday.

Today’s Key Schedule

○Domestic

10:00 Interest rate decision (October)

○Overseas

00:00 Speech by Vice President of Germany’s Bundesbank

02:00 U.S. 20-year Treasury bond auction

05:00 Speech by U.S. Federal Reserve Vice Chair for Supervision Barr

21:30 U.S. continuing jobless claims

21:30 U.S. initial jobless claims

23:00 U.S. existing home sales (September)

23:00 Speech by U.S. FOMC member Bowman

◇Weather at Lunch & Commute

○Lowest temperature: 12℃ (▲6℃) ｜Highest temperature: 19℃ (0℃)
○Chance of precipitation: 30% in the morning ｜ 20% in the afternoon
○Fine dust: Good in the morning ｜ Good in the afternoon

All the essential, cost-effective economic news you need in just 3 minutes. Published daily at 8 a.m.