South Korea's stock market has extended a sharp rally led by AI semiconductors, with the KOSPI breaking above the 8,000 mark for the first time ever last week. The country's equity market value rose to sixth in the world, overtaking Taiwan, and brokerages see growing expectations for a re-rating of local stocks.

KB Securities raised its KOSPI target for this year sharply to 10,500, saying AI will drive improvements in corporate earnings. It said inflows of foreign funds and expectations for a recovery in the semiconductor sector are combining to power the rise.

Still, worries are also growing about rising volatility after the short-term surge. The KOSPI recently broke above 8,000 in intraday trading, then swung sharply as profit-taking selling poured out.

Brokerages see whether chip shares can rise further and the flow of foreign buying and selling as key variables that will determine the market's direction. The market is seeing forecasts both for a short-term pause and for a medium- to long-term uptrend to continue.

• South Korea stock market value ranks No. 6 globally, overtakes Taiwan • KB Securities raises this year's KOSPI target to 10,500, "AI to lead earnings improvement" • KOSPI era of 8,000 begins, South Korea market makes new history on AI semiconductor rally • [Market outlook] KOSPI volatility rises, seeks direction as semiconductors take a breather

Major brokerages posted strong results across the board in the first quarter, helped by the market rally and rising turnover. Mirae Asset Securities posted net profit of 1.019 trillion won, becoming the first brokerage in the country to top 1 trillion won in quarterly net profit.

Samsung Securities posted first-quarter operating profit of 609.5 billion won, up 82.1 percent from a year earlier. Korea Investment & Securities posted operating profit of 959.9 billion won, up 85 percent. Meritz Securities also joined the earnings improvement trend, posting net profit of 254.3 billion won, up 35.7 percent.

Brokerages said wider brokerage income, a recovery in the investment banking business and increased overseas stock trading drove the improvements. They also see the KOSPI rise and an AI-related investment frenzy as boosting trading activity and supporting results.

The market sees a high chance that the brokerage industry's strong earnings trend will continue for the time being if the market stays strong.

• Mirae Asset Securities posts Q1 net profit of 1.019 trillion won, first in the industry to top 1 trillion won in a quarter • Samsung Securities Q1 operating profit 609.5 billion won, up 82.1 percent on year • Meritz Securities Q1 net profit 254.3 billion won, up 35.7 percent on year • Korea Investment & Securities Q1 operating profit 959.9 billion won, up 85 percent on year

Across the financial sector, "inclusive finance" has emerged as a key topic, focusing on support for vulnerable groups and strengthening social responsibility. With pressure mounting from the government and politics, banks are also moving faster to expand financial support and strengthen their public role.

After President Lee Jae-myung (이재명) strongly criticised the problem of "predatory finance" in the financial sector, financial firms rolled out measures in succession to support vulnerable borrowers, including steps to resolve long-delinquent debt.

IBK Bank CEO Min-young Jang (장민영) stressed that inclusive finance should not be limited to low-interest loans but should cover full-cycle support from start-ups to help for a fresh start. Calls are also growing across the financial sector to strengthen the social role over simple profitability.

Financial holding firms also explained that mentioning risks related to productive finance in U.S. SEC filings was a formal disclosure required under local rules, drawing a line against excessive interpretation.

• 3 financial holding firms: Mention of productive finance risks due to U.S. disclosure rules • Pressure for "inclusive finance" intensifies, tension rises in banking sector • President criticises "predatory finance"; financial sector begins clearing Evergreen long-delinquent debt • IBK Bank CEO: Inclusive finance is not just low-interest lending, full-cycle financial support needed • iM Bank unveils inclusive finance brand "Inter Mind," "push to strengthen banks' public role" • KakaoBank to provide 125.0 billion won in financial support for small business owners in Seoul

Other major developments in finance and fintech were also compiled.

KB Kookmin Bank revamped its running platform "Dalija" to strengthen interactive content and user convenience features. KB Securities was named preferred bidder as the exclusive manager of the Housing and Urban Fund, gaining recognition for its policy finance management capabilities.

Shinhan Bank was selected as the operating bank for both Seoul's first and second municipal treasuries, expanding its position in the public treasury market. Woori Bank expanded non-face-to-face services for changing accounts for four major public pension schemes, moving to target senior customers.

Hana Financial Group plans to hold a "Money Show" on the 28th to introduce financial solutions and wealth management strategies related to investment, taxes and inheritance.

• KB Kookmin Bank revamps running service "Dalija," strengthens interactive content • KB Securities selected as preferred bidder as exclusive manager of the Housing and Urban Fund • Shinhan Bank selected as operating bank for both Seoul's first and second municipal treasuries • Woori Bank expands non-face-to-face changes for four major public pension accounts, targets senior customers • Hana Financial to hold "Money Show" on the 28th, presents solutions for investment, tax and inheritance

Toss Bank obtained final approval for a financial investment business and will begin selling funds from the second half of the year. An internet-only bank is expanding into investment products, as competition among comprehensive financial platforms gathers pace.

K Bank began handling national treasury payments, offering a service that lets customers receive tax refunds directly into their accounts. Samsung Securities teamed up with global online broker IBKR to launch an integrated account service for foreigners, stepping up efforts to attract overseas investors.

• Toss Bank obtains final approval for financial investment business, to sell funds in second half • K Bank begins national treasury payment operations, tax refunds can be received in accounts • Samsung Securities launches integrated account service for foreigners with IBKR

As the digital payments market grows rapidly, security and user convenience are emerging as key tasks beyond a simple race for speed. The industry is also pointing to the need to resolve consumer inconvenience issues such as payment delays and errors and complicated authentication procedures.

Hecto Financial started taking advance applications for its overseas remittance service "CPN Global Remittance," moving to target the global payments market. SentBe obtained the top grade under an international standard for payment data security, strengthening global-level security capabilities.

Toss Place teamed up with the Korea Credit Card Merchants Association to improve the payment environment for small business owners. Across the payment industry, competition is expanding around security, global expansion and support for small merchants.

• Is speed all that matters? The uncomfortable truth of digital payments emerges • SentBe obtains top-grade international standard for payment data security • Hecto Financial begins advance applications for "CPN Global Remittance," service to launch in July • Toss Place joins hands with Korea Credit Card Merchants Association to improve payment environment for small businesses