▲ AI PRISM* Personalized Economic Briefing
* Editor's note: "AI PRISM" (Personalized Report & Insight Summarizing Media) is an artificial intelligence-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six news items tailored to each reader type.
[Key Issue Briefing]
■ Rate hold: The Bank of Korea left its base rate at 3%, pausing after two consecutive increases. With growth and inflation now expected to run above earlier projections, however, most market participants see further hikes continuing into next year.
■ SK undervalued: Lee Chang-hwan, chief executive of Align Partners, identified SK as a global artificial intelligence asset trading at a price-to-earnings ratio of 1.0 at an investor summit in New York. SK shares surged 12.15% the previous day following the presentation, and Lee said he was waiting to see the value-up plan the company is preparing, offering few details of his own.
■ Oil risk: Crude oil prices moved back above $100 a barrel after reports that the United States and Israel are considering resuming strikes on Iran. With Iran warning of retaliation against oil facilities in the Gulf, supply concerns stemming from the Middle East have returned to the front of the market.
[Top News for Financial Product Investors]
1. Bank of Korea Holds Base Rate at 3%: "Early Action Pays Off"
- Key points: The Bank of Korea held its base rate at 3% at a monetary policy board meeting on the 22nd. The decision was intended to assess the effects of the unusual back-to-back increases in July and August, and all seven board members, including Governor Shin Hyun-song, voted in favor of the hold. Shin stressed that the central bank would maintain its tightening stance, saying growth and price gains appear likely to be stronger than forecast in August. Most in the market expect two more increases by next year, and some project three hikes that would take the base rate to 3.75%.
- Key points: Lee Chang-hwan, chief executive of Align Partners, described SK as a company standing at the center of the global artificial intelligence revolution and said it was shockingly cheap on a valuation basis. At the 13D Active-Passive Investor Summit in New York, Align disclosed a 1.5% stake in SK and presented an analysis putting the company's price-to-earnings ratio at 1.0, based on 24.431 trillion won in net profit attributable to SK next year. SK shares surged 12.15% the previous day after the presentation. Lee offered few details on specific measures, including speculation about a merger between SK and SK Square (402340), saying he would wait to see the company's value-up plan.
3. U.S. and Israel Weigh Three-Day Concentrated Strikes on Iran; Oil Tops $100 Again
- Key points: The United States and Israel are reportedly considering resuming large-scale military attacks on Iran after the U.S. midterm elections next month. The New York Times reported on the 21st that military authorities in both countries had prepared options targeting Iran's nuclear facilities, missile and drone capabilities and energy infrastructure, including a plan for about three days of concentrated strikes. Iran has warned that if the attacks materialize, it could strike refineries, oil fields and power grids in the Gulf region, including facilities of Saudi Arabia's state oil company Aramco. In Asian trading on the 22nd, West Texas Intermediate crude futures for December delivery climbed back above $100 a barrel.
[Reference News for Financial Product Investors]
4. AI Agents Spread; Palo Alto Networks Grows Fast on Security Demand
- Key points: As artificial intelligence evolves from conversational models into agents that carry out tasks on their own, the cybersecurity market has entered a new growth phase. Palo Alto Networks cited the spread of AI agents, more sophisticated exploitation of vulnerabilities and the diffusion of open models as the three major shifts in the security market. As of the fourth quarter of fiscal 2026, remaining performance obligations, or contracted revenue to be recognized in the future, and next-generation security annual recurring revenue reached record highs of $21.2 billion and $9.1 billion, respectively. Prisma AIRS, a dedicated AI product, surpassed $100 million in annual recurring revenue four quarters after launch, and its customer count rose to 800 from 300 in the previous quarter.
5. Large Projects Start Contributing; Samsung E&A (028050) Operating Profit Jumps 184%
- Key points: Samsung E&A posted third-quarter revenue of 2.9105 trillion won and operating profit of 500.6 billion won, up 45.8% and 183.6% from a year earlier, as revenue from large chemical plant and advanced industry projects began to be recognized in earnest. Its order backlog stood at 27.2 trillion won at the end of the third quarter, equivalent to about three years of work based on last year's revenue. The company raised its order forecast for this year to 19 trillion won from 12 trillion won and its operating profit forecast to 1.4 trillion won from 800 billion won. It also decided to buy back about 780 billion won of its own shares, of which 690 billion won will be retired.
6. Net Profit More Than Doubled, yet Warning Lights Flash for SpaceX Bonds
- Key points: SpaceX reported third-quarter net profit of $4.4 billion, far above market expectations of $1.88 billion, but its bonds weakened. Revenue also rose 161% from a year earlier. Concerns about increased borrowing spread after Chief Financial Officer Bret Johnsen said the company was investing aggressively in computing for its superintelligence division and in Starlink's broadband and mobile businesses. The spread on its 6.6% bonds maturing in 2046 widened to 2.64 percentage points. According to Bloomberg data, companies worldwide have already borrowed more than $450 billion this year to fund AI.
▶Go to article: "Early Action Pays Off": Bank of Korea Pauses for Now, Market Sees 3.75% Next Year
