The KOSPI keeps setting record highs and has surged well above 7,000, putting a break above the dream 8,000 level within sight. Foreign buying is concentrated in large-cap semiconductor and artificial intelligence (AI)-related shares, driving the rise in the index.

In the market, analysts say expectations for government policy and global liquidity are acting as drivers of the stock market's rise. However, the outcome of U.S.-China talks, a concentration in semiconductor shares and geopolitical risks in the Middle East are cited as factors that could increase market volatility.

Brokerages are placing weight on the view that the uptrend itself is likely to be maintained for the time being, despite concerns about short-term overheating.

•[Market outlook] Will the KOSPI's endless sprint continue... U.S.-China talks and semiconductor concentration as variables •KOSPI ends at a record high despite negative news from U.S.-Iran clashes •KOSPI makes new history with the 'dream 7,000'..."Semiconductors and AI lead, backed by policy effects" •KOSPI closes above 7,300 for the first time... foreign investors alone buy more than 3 trillion won

Along with the strong market, investment money is also moving quickly into policy funds and ETFs, tax-saving accounts and other products. The government is set to start selling the National Growth Fund on the 22nd and plans to expand support for unlisted and technology-special listing firms. Financial authorities are also stressing the need to restore the securities industry's role in supplying venture capital.

Mirae Asset Securities' ISA client assets rose by 5 trillion won in 3 months to surpass 15 trillion won. Net assets of KB Asset Management's 'RISE Korea Value-Up ETF' also topped 1 trillion won.

In the market, analysts say inflows into investment products such as ISAs and ETFs are continuing as expectations for a stock market rise align with demand for tax benefits. Interest is also growing in long-term investing and tax-saving strategies using children's accounts.

•National Growth Fund sales start on the 22nd... new support for unlisted and technology-special firms •Financial Services Commission: "Securities industry must restore its core functions"... discussions to expand venture capital supply •Mirae Asset Securities' ISA client assets top 15 trillion won... up 5 trillion won in 3 months •KB Asset Management's 'RISE Korea Value-Up ETF' net assets top 1 trillion won •From ETF futures to tax-saving strategies... interest grows in children's accounts

Banks are stepping up competition to secure future growth engines by focusing on expanding corporate finance and pursuing strategic partnerships on multiple fronts. They are strengthening cooperation with platforms, fintech firms, universities and local governments while expanding corporate lending and broadening the corporate finance ecosystem.

KB Kookmin Bank moved to ease financial burdens for sole proprietors. Shinhan Bank joined hands with Webcash and Incheon to expand cooperation on cash management and finance for public platforms.

Hana Financial Group and Hana Securities are focusing on building an AI-based startup and investment ecosystem linked with universities and startup institutions, while NH Nonghyup Financial Group is also working with Naver to strengthen youth financial support. Woori Financial Group is expanding opportunities for linked corporate finance and asset management businesses through participation in a first-generation new town redevelopment project. Analysts also say that as competition intensifies around corporate lending, the importance of managing soundness risks is growing alongside expectations for higher profitability.

•Leading bank race shaken amid expanded corporate lending... soundness risks in focus •KB Kookmin Bank cuts interest above an annual 5 percent... expands support for sole proprietors •Webcash-Shinhan Bank to cooperate on global cash management services •Hana Financial Group teams up with Kyung Hee University to support youth startups... introduces AI-based practical training •Woori Financial Group supports first-generation new town redevelopment..."Banks and asset management to participate as key partners" •Shinhan Bank cooperates with Incheon on public delivery app... expands 'Ttangyeoyo' service •NH Nonghyup Financial Group collaborates with Naver... expands youth financial support •Shinhan Financial Group strengthens early-stage startup development... introduces new 'youth entrepreneurs' •Hana Securities signs agreement with Jeonbuk Center for Creative Economy and Innovation on investment ecosystem

AI adoption in finance is rapidly spreading across real work and service front lines, beyond a simple experimental stage. Global banks are directly applying AI in areas including customer consultations, knowledge management, payments and work support. South Korea's financial sector is also accelerating competition in AI-based platforms and automation services.

In particular, KB Financial Group recently unveiled the financial sector's first humanoid robot, 'Zenfi', expanding the use of AI into senior care. Temenos also introduced a range of AI copilot solutions for bank operations.

In the market, analysts also say that with the financial sector's AI adoption rate already above 80 percent, investment scale and operational maturity are determining differences in profitability. As AI payments and the use of generative AI expand, concerns are also growing over regulation and inadequate infrastructure, and limits to internal controls. In practice, domestic and overseas regulators say financial firms' AI governance systems are failing to keep pace with the speed of technology adoption and are calling for stronger risk management.

•U.S. Bank for consultations, CoBank for knowledge retention... financial sector AI moves from experiments to the front lines •AI embedded directly into bank operations... Temenos unveils a range of next-generation copilot solutions •Bank and fintech AI dominates 81 percent... regulators warn "it cannot be controlled" •Banks race to push 'AI payments'... reality blocked by regulation and infrastructure •Financial sector AI adoption rate 81 percent... profitability depends on maturity and investment scale •From bill checks to payments in one stop... Paymonters unveils AI-based service platform •AI adoption in banking accelerates... Australian regulator: "Governance system inadequate"

Other major moves in finance and the fintech industry were also compiled.

Shinhan Financial Group is focusing on promoting its corporate value enhancement strategy by conducting investor relations for global investors. Woori Financial Group is pushing to participate in a first-generation new town redevelopment project and is preparing to expand linked real estate and asset management businesses. Woori Bank was selected as the preferred bidder for the National Pension Service's foreign-currency custodian bank.

•Shinhan Financial Group Chairman Jin Ok-dong (진옥동) begins IR in North and Central America... strengthens communication with global investors on 'Value-Up 2.0' •National Pension Service selects Woori Bank as foreign-currency custodian bank... final contract in June •Woori Financial Group supports first-generation new town redevelopment..."Banks and asset management to participate as key partners"

Internet-only banks and big tech financial companies are speeding up competition to expand their businesses. Kakao's financial affiliates posted their best-ever results, backed by user and data-based growth. KakaoBank moved to execute its mid- to long-term growth strategy based on that performance.

Toss Bank and K Bank are each expanding their business scope into areas including treasury receipt and payment operations, and are moving in earnest into competition for policy finance infrastructure.

•Kakao financial firms post 'best-ever results'... Bank and Pay accelerate user and data-based growth •KakaoBank launches mid- to long-term growth roadmap based on its 'biggest quarterly' results •Toss Bank secures qualifications as a treasury receipt agent linked directly to the Bank of Korea •K Bank begins treasury payment operations... tax refunds can be received into accounts

In the brokerage and fintech industry, issues of reliability and profitability are coming into focus alongside service competition. Toss Securities faced investor confusion due to an error in Korea Kolmar's earnings disclosure, putting its information verification system under scrutiny. Hecto Financial posted its best quarterly results and recorded operating profit on a separate basis topping 10 billion won for the first time. Mirae Asset Securities is continuing a trend of expanding investor inflows as its ISA client assets exceed 15 trillion won.

•Toss Securities faces scrutiny over disclosure verification... error in Korea Kolmar results causes investor confusion •Hecto Financial posts record quarterly results... operating profit on a separate basis tops 10 billion won for the first time •Mirae Asset Securities' ISA client assets top 15 trillion won... up 5 trillion won in 3 months

New products launched last week in fintech and finance ranged from deposits and savings to investment products and data platforms, including differentiated offerings.

Hana Bank launched 'Dallyeora Hana Savings', which offers preferential interest rates based on running activity. Woori Bank launched a savings product linked to Samsung Card usage performance. K Bank introduced a children's product with a maximum annual interest rate of 8.5 percent that parents can open non-face-to-face. KB Asset Management launched a fund centered on representative growth stocks on the Kosdaq to target investment demand. NHN KCP also unveiled its integrated data platform 'KCP Biz Partner' and is moving to expand services for corporate customers.

•Hana Bank launches 'Dallyeora Hana Savings'..."The more you run, the higher the rate" •Woori Bank launches 'Samsung Card Woori Savings' linked to card performance •KB Asset Management launches 'KB Kosdaq Leading Stocks Fund' featuring representative growth stocks on the Kosdaq •K Bank launches 'MyKids account and savings' with maximum annual 8.5 percent..."Parents can open non-face-to-face" •NHN KCP launches integrated data platform 'KCP Biz Partner'