South Korean stocks are expected to take cues this week from Nvidia earnings and the U.S. July personal consumption expenditures price index. Semiconductor profit expectations and large shareholder-return plans are seen supporting the downside, but U.S. long-term yields and Middle East uncertainty remain variables. Investors will also watch the Jackson Hole symposium and U.S. rate-path signals. The KOSPI may retest 7,000 if AI demand holds and inflation does not surprise higher.

Kakao will separate its Kakaotalk and artificial intelligence businesses into a separately listed company, saying the market is not fully reflecting the value of its businesses. The company approved a human split into newly created KakaoAI and surviving KakaoX, with existing shareholders to receive shares in both. Kakao set targets for AI user growth and revenue through 2030 and also disclosed shareholder return plans, including a 300 billion won treasury share buyback and cancellation plan.