Journalist
Ryu Yuna류윤아
Julia37@ajupress.com
ReporterFinancial Supervisory Service (FSS) & finance, capital markets, Southeast Asian affairs
Yuna Ryu covers finance, capital markets and Southeast Asian affairs.
She is drawn to the questions that numbers raise and the stories that data alone cannot answer.
Prior to journalism, she worked at Hyundai Motor Company and the Singapore Chamber of Commerce, focusing on business strategy and international affairs. She has also hosted diplomatic receptions and international conferences as an MC.
Ryu holds a master's degree in Media and Communication from Korea University, where her research focused on neuroscience-based studies of media effects. "Beyond every statistic is a human story waiting to be heard."
She is drawn to the questions that numbers raise and the stories that data alone cannot answer.
Prior to journalism, she worked at Hyundai Motor Company and the Singapore Chamber of Commerce, focusing on business strategy and international affairs. She has also hosted diplomatic receptions and international conferences as an MC.
Ryu holds a master's degree in Media and Communication from Korea University, where her research focused on neuroscience-based studies of media effects. "Beyond every statistic is a human story waiting to be heard."
Latest by Ryu Yuna
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State bank relocation sparks mass finance strike in Seoul SEOUL, September 04 (AJP) - State bank relocation sparks mass finance strike in Seoul Strikes have been a common scene in Korea this year, and the traditional banking picketers took to the streets that they surrendered to IT workers earlier on demanding bigger compensations from AI windfall. Their banner cry was less on wages but say on where they work. Despite the still-summery heat, thousands of finance workers gathered in central Seoul from Friday morning for a mass strike, with employees of three major state-run banks leading opposition to the government's renewed push to move public institutions outside the capital. The strike was organized by the Korea Financial Industry Union (KFIU), an industry-wide labor group representing workers across banks and other financial institutions. Employees of Korea Development Bank (KDB), Industrial Bank of Korea (IBK) and the Export-Import Bank of Korea made up some of the largest groups in the crowd. The rally ran from 11:30 a.m. to 3 p.m. along Sejong-daero in central Seoul's Gwanghwamun district. The union estimated that about 30,000 people took part. By late morning, Lee Jae-ik, vice chair of the KDB labor union, stood among the crowd holding a large union flag. He said relocation would affect both workers' families and the bank's ability to retain experienced staff. “For dual-income couples, the biggest concern is having to live apart,” Lee said over the noise of the rally. “You would see many more couples split between Seoul and another city during the week. In some cases, one spouse might have to give up a career.” He pointed to London and Hong Kong as examples of major financial centers that benefit from having key institutions and professionals clustered in one place. “Finance runs on networks,” Lee said. “Once you break that concentration, you risk losing competitiveness.” The concern lies at the heart of opposition from the three state-bank unions. They argue that moving their headquarters could disrupt ties with companies, financial firms, regulators and specialized staff concentrated in the capital. The protest came a day after the government announced plans to accelerate a second round of public institution relocations. About 350 public institutions in the Seoul metropolitan area are under review, with the government seeking to minimize the number allowed to remain in the capital region. A detailed relocation plan is due in the fourth quarter, with moves scheduled to begin in 2027. KDB, IBK and the Export-Import Bank have not yet been formally designated for relocation, but uncertainty over their fate has already unsettled employees. Lee recalled the impact of an earlier relocation push. “We lost a lot of experienced people during the last relocation push. Vacancies opened up at the manager level, and we had to fill the gaps with juniors. If this happens again, I think there could be another round of departures.” About 2,200 KDB employees participated in Friday's action, Lee said. The union plans to survey workers on how they would respond if another relocation plan is formally proposed. Concern about losing skilled staff was echoed by younger employees standing in the sweltering heat. A KDB employee in his 30s who declined to give his name said most of the bank's clients remain concentrated in Seoul. “Most of the clients we actually deal with are in Seoul,” he said. “If the bank moves farther away, communication will become harder and slower, and that could weaken our competitiveness.” “What worries me even more is that strong candidates may stop seeing KDB as an attractive place to work in the first place.” His family is originally from Busan, the employee said, but he still supported keeping KDB's headquarters in Seoul because of the nature of its work. Another female employee in her 30s, who asked to be identified only by her initials H.J., voiced similar concerns. “There are already a lot of people around me saying they would leave if the bank moves,” she said. “Finding another job is hard enough as it is. Now people are wondering what they are supposed to do if they suddenly have to move.” Lee said the KDB union would continue its campaign through the fourth quarter and could consider a separate strike if the relocation plan moves forward. “We will continue to try our best.” Relocation was not the only issue behind Friday's walkout. The broader KFIU is also calling for a 4.5-day workweek based on a 35-hour week, increased youth hiring, a higher retirement age, changes to the wage-peak system that reduces compensation for older workers approaching retirement and a 6 percent wage increase. The KFIU said further strikes could follow depending on the progress of negotiations with employers. AJP Takeaways - Thousands of finance workers joined a mass strike in central Seoul on Sept. 4, with employees of KDB, IBK and the Export-Import Bank leading opposition to possible headquarters relocations. - KDB union Vice Chair Lee Jae-ik said about 2,200 KDB employees joined the action and warned relocation could trigger further staff departures and weaken recruitment. - About 350 public institutions in the Seoul metropolitan area are under review for a second round of regional relocation, with a detailed plan due in the fourth quarter and moves scheduled to begin in 2027. 2026-09-04 15:33:50 -
Sky Labs doubles on KOSDAQ debut SEOUL, September 04 (AJP) - South Korean digital healthcare company Sky Labs doubled from its initial public offering (IPO) price on its KOSDAQ debut Friday after briefly surging to nearly three times the offering price. As of 2:20 p.m., shares traded at 20,000 won ($14.40), double its 10,000 won offering price. The stock opened at 8,500 won and fell as low as 8,200 won. It later climbed to an intraday high of 28,750 won, 187.5 percent above the IPO price. The sharp reversal made the company one of the most actively traded stocks on the KOSDAQ. Trading volume had reached about 75 million shares, with turnover of roughly 1.43 trillion won by around 2:20 p.m. The strong first-day performance contrasted with relatively weak demand during the offering process. Institutional bookbuilding recorded a competition ratio of 63.41 to 1, while retail subscriptions drew a ratio of about 2.9 to 1. The IPO was priced at 10,000 won, below the initially proposed range of 13,000 won to 16,000 won. The company develops wearable devices that allow users to measure health indicators through a ring worn on the finger. Its flagship product, Cardio Tracker (CART), is an artificial intelligence-powered cuffless blood pressure monitor designed to continuously track blood pressure without a conventional arm cuff. It was founded in 2015. It reported about 7.9 billion won in revenue and a 14.7 billion won operating loss last year, putting the focus on whether the company can translate its technology into sustained sales growth and improved profitability after the strong debut. AJP Takeaways - Sky Labs shares traded at 20,000 won as of 2:20 p.m. on Sept. 4, 2026, double the South Korean digital healthcare company’s 10,000 won initial public offering price on its KOSDAQ debut. - Sky Labs shares swung from an intraday low of 8,200 won to a high of 28,750 won on Sept. 4, 2026, with the peak representing a 187.5 percent gain from the IPO price. - Sky Labs drew relatively weak demand before listing, with institutional bookbuilding at 63.41 to 1 and retail subscriptions at about 2.9 to 1, while the final IPO price was set below the initially proposed range of 13,000 won to 16,000 won. 2026-09-04 14:59:03 -
Korea's state bank workers join union strike opposing to relocation SEOUL, September 04 (AJP) -Whether South Korea's financial regulators and state-run policy banks will be swept into a second round of public-sector relocations starting next year remains undecided, but the possibility has become a major flashpoint for financial workers, drawing about 15,000 union members to central Seoul on Friday. The Korean Financial Industry Union staged a sit-in along Sejong-daero in Gwanghwamun, its first such action in about a year, with workers from the state lenders Korea Development Bank, Export-Import Bank of Korea and Industrial Bank of Korea forming the core of the turnout. Many wore red headbands emblazoned with "general strike," while placards called for blocking regional relocation, introducing a 4.5-day workweek and securing real wage increases. The strike came a day after the government unveiled plans to review about 350 public institutions in the Seoul metropolitan area for relocation under a "minimum retention" principle, with a detailed list due in the fourth quarter and moves beginning in 2027. KDB, IBK and Eximbank have not yet been formally designated for relocation. The uncertainty has nevertheless alarmed their unions, which argue that dispersing policy lenders, financial regulators, commercial institutions and specialist personnel could weaken the clustering that underpins Seoul's financial industry. "Financial companies, policy and supervisory institutions and specialized personnel need to be gathered in one place to exchange information and make quick decisions," union Chairman Yoon Seok-gu said. He called for the government first to assess how much the first round of public-institution relocations eased concentration in the Seoul area or contributed to regional economies before embarking on another round. The union is demanding that any headquarters relocation be subject to prior notice and agreement with employees. It is also seeking a 6 percent wage increase, a 4.5-day workweek, expanded youth hiring, an extension of the retirement age and other institutional changes. Senior Vice Chairman Yang Min-ho said the six demands formed the core of the union's bargaining agenda. Yoon said shorter working hours were necessary because financial workers faced heavy performance pressure and demanding schedules that left little time for family life. The rally also drew lawmakers from both the ruling Democratic Party and the opposition People Power Party. Democratic Party lawmaker Lee Yong-woo voiced support for the union's call for a 4.5-day workweek, while People Power Party lawmaker Kim Hyung-dong said relocation of public financial institutions should require National Assembly consent. Union members occupied all lanes of a roughly 450-meter stretch of Sejong-daero between Dongwha Duty Free and the direction of Seoul City Hall during the rally. Average traffic speed across central Seoul slowed to 11.7 kilometers per hour around noon, according to the Seoul Transport Operation and Information Service. The union said further strikes could follow depending on the outcome of negotiations. Members voted last month to authorize industrial action with 96.05 percent support and held a mass rally on Aug. 28 to signal preparations for Friday's walkout. The dispute adds a potentially difficult financial-sector dimension to the government's broader decentralization drive. The government says it intends to minimize the number of public institutions allowed to remain in the capital region and use relocations to create stronger regional economic clusters. Financial unions argue that applying the same logic to policy banks and regulators could instead fragment an industry that depends heavily on proximity among institutions, regulators and specialist talent. AJP Takeaways - About 15,000 financial workers rallied in central Seoul against the possible relocation of state-run policy banks under the government's second public-institution relocation drive. - KDB, IBK and the Export-Import Bank of Korea have not yet been formally designated for relocation, with the government set to announce its detailed list in the fourth quarter. - The Korean Financial Industry Union also demanded a 4.5-day workweek, a 6 percent pay increase, expanded youth hiring and prior agreement on any headquarters move. 2026-09-04 13:32:51 -
KOSPI loses cash and conviction SEOUL, September 03 (AJP) -The KOSPI's summer hangover has followed it into September. Money is leaving South Korea's stock market, retail investors are nursing losses and foreign funds remain hesitant. Increasingly, the buyers keeping the market afloat are the companies themselves. The benchmark KOSPI managed a 0.26 percent gain Thursday to 6,579.48 despite net selling by all three major investor groups. Retail investors sold 955 billion won, foreigners 419.5 billion won and institutions 215.2 billion won. The counterweight was "other corporations," a Korea Exchange category that captures much of the share repurchasing by Samsung Electronics and SK hynix. They bought a net 1.59 trillion won, extending their buying streak to 12 sessions. "Corporate buybacks provide steady demand regardless of where the market is headed," said Jaewon Lee, a market analyst at Yuanta Securities Korea. "That allows foreign and institutional investors to stay cautious until the macro outlook becomes clearer." For retail investors battered by the summer selloff, caution has turned closer to exhaustion. "The moment I get back to break-even, I am out," said Yoo, a 33-year-old salary worker. "So many people at work are checking their stocks in the restroom that there are no empty stalls left." For others, the losses have started changing how they spend outside the market. Jang, a 31-year-old office worker in Seoul, said he had put nearly all the money he could invest into SK hynix, Samsung Electronics and a leveraged single-stock product. "Do you know what it feels like to pack your lunch the night before because your stocks have fallen so much that you cannot spend money on lunch?" he said. "I am already stuck, and I don't have any cash left to buy more to lower my average purchase price." BM Kim, a 36-year-old salesperson who owns semiconductor shares, is still holding on, although his expectations have come down. "I think semiconductors will go up eventually," he said. "Perhaps not as much as they did over the past year." That combination — unwilling to sell deep losses but increasingly unable or reluctant to put in fresh money — is showing up across the market. A net 12.54 trillion won ($9.2 billion) flowed out of South Korea's stock market in August, according to an analysis by Shinyoung Securities. It was the first monthly net outflow this year and the largest since the brokerage began compiling the figures in 2000. The amount exceeded the 2.83 trillion won withdrawn in December 2008 during the global financial crisis and the 8.05 trillion won outflow in December 2021 during the inflation shock. Retail buying has collapsed even faster. Individual investors' net purchases of KOSPI-listed shares across the Korea Exchange and Nextrade fell 90 percent to 5.4 trillion won in August from 54.5 trillion won in June. Their remaining ammunition is shrinking as well. Investor deposits — cash parked at brokerages and immediately available for trading — stood at 98.17 trillion won as of Sept. 1, down nearly 30 percent from this year's peak of 139.69 trillion won on June 4, according to the Korea Financial Investment Association. Foreign and institutional money has not filled the hole. On Wednesday, when the KOSPI plunged 3.99 percent, foreign investors dumped a net 1.91 trillion won and institutions sold 2.04 trillion won. Individuals bought 2.30 trillion won into the decline, while other corporations added another 1.65 trillion won of purchases. Even that was not enough to absorb the selling. Thursday was more revealing. The index managed to finish slightly higher even as retail, foreign and institutional investors all sold. Other corporations again stood alone on the buying side. The pattern began in earnest after South Korea's two dominant chipmakers launched enormous repurchase programs. SK hynix announced a 40 trillion won buyback and cancellation program on Aug. 19, with purchases beginning the following day. It also pledged to return more than half of cumulative free cash flow generated from 2025 through 2027 to shareholders through buybacks, cancellations and dividends. Samsung Electronics followed with a 15 trillion won open-market repurchase beginning Aug. 24 as part of a broader shareholder-return program expected to reach 90 trillion won to 110 trillion won this year. The scale is large enough to change the market's daily supply-and-demand balance. From Aug. 20 through Aug. 28 alone, other corporations bought more than 10 trillion won of KOSPI shares, with the purchases heavily concentrated in Samsung Electronics and SK hynix. In effect, corporate Korea has temporarily replaced the retail investors who powered much of the earlier rally. "Shareholder returns can continue through dividends or additional buybacks. I don't think that momentum will simply disappear," Lee said. Buybacks, however, can support prices only for as long as companies keep buying. Lee expects the broader market to remain range-bound through September and October while investors wait for greater clarity on interest rates, oil and U.S. politics. "The market is likely to remain in a range through September and October while uncertainty remains high," he said. "If interest rates and oil prices stabilize and uncertainty eases after the Nov. 3 U.S. midterm elections, I think the market could regain upward momentum." September has historically offered little comfort. From 2000 through 2025, the KOSPI lost an average 0.68 percent in September, making it the weakest month of the year. The decline averaged 1.86 percent in years with a U.S. presidential or midterm election. For a more durable rebound, foreign money will probably have to return. Foreign investors are still net sellers, although the pace has eased sharply from earlier in the summer. Their selling narrowed to roughly 9.9 trillion won in August after reaching 58.7 trillion won in June. They have also shown a willingness to return selectively, particularly to semiconductors. "Foreign investors have not simply been selling," Lee said. "There are still strong sectors such as semiconductors, and I think foreign flows can improve further if macroeconomic and geopolitical uncertainty eases." The won offers one argument for doing so. It strengthened to 1,359.3 per dollar Thursday, extending a recovery of more than 12 percent from levels above 1,550 in late June. "The stronger won is clearly a positive factor for foreign buying," Lee said. "But long-term interest rates are still too high, and oil has moved above $90. Those are burdens for foreign investors considering whether to turn net buyers." Those pressures remain substantial. The U.S. 10-year Treasury yield briefly reached 4.821 percent Wednesday, its highest since November 2023, before easing to 4.78 percent. Brent crude settled at $95.63 a barrel as renewed U.S.-Iran fighting kept concerns about supply disruptions alive. That leaves the KOSPI in an unusual position entering September. Retail investors have lost both money and appetite. Foreign funds are waiting.Institutions are providing little sustained support. Samsung Electronics and SK hynix, meanwhile, are buying billions of dollars of their own shares. For now, that is enough to put a floor under parts of the market. It is not yet the same thing as investors coming back. AJP Takeaways • Traditional buyers retreat: Retail, foreign and institutional investors all sold KOSPI shares Thursday even as the benchmark managed a 0.26 percent gain. • Corporate buybacks fill the gap: Samsung Electronics and SK hynix's massive repurchase programs have turned "other corporations" into one of the market's biggest sources of daily demand. • Retail firepower collapses: Individual net buying dropped 90 percent between June and August, while brokerage deposits have fallen nearly 30 percent from their June peak. • Foreign return remains key: A stronger won is becoming more supportive, but high U.S. yields, oil above $90 and geopolitical uncertainty continue to discourage a sustained return of overseas capital. 2026-09-03 18:02:54 -
Court tells LG dynasty to work out family feud SEOUL, September 03 (AJP) -A bitter feud inside the founding family of LG, South Korea's fourth-largest conglomerate, deepened Thursday after a court rejected the late chairman's widow's bid to sever her legal mother-son relationship with Koo Kwang-mo, the nephew adopted more than two decades ago to preserve the Koo family's tradition of male succession. The Seoul Family Court dismissed the petition filed by Kim Young-sik, widow of former LG Group Chairman Koo Bon-moo and adoptive mother of the current chairman. The court did not disclose the reasoning for its decision. “I do not believe Koo Kwang-mo and I can continue our relationship as mother and son,” Kim told reporters after the ruling. She said she hoped they could return to their separate lives and would continue seeking a way to legally end their relationship. The extraordinary attempt to dissolve the adoption adds another layer to a family fight over an arrangement that once appeared to settle LG's succession for a generation. LG has traditionally passed control through the eldest son of the Koo family. Founder Koo In-hwoi handed the group to his eldest son, Koo Cha-kyung, who in turn was succeeded in 1995 by his eldest son, Koo Bon-moo. Koo Bon-moo's only biological son died in an accident in 1994, leaving him with two daughters but no male heir. In 2004, he adopted Koo Kwang-mo, then 26, the eldest son of his younger brother Koo Bon-neung, chairman of Heesung Group. At the time, LG said the decision followed the family's Confucian tradition under which the eldest son carries on family affairs. Koo Kwang-mo remained biologically the son of Koo Bon-neung but legally became the son of Koo Bon-moo and Kim Young-sik, positioning him to become the fourth-generation leader of LG. Fourteen years later, following Koo Bon-moo's death in 2018, Koo Kwang-mo inherited most of his adoptive father's stake in holding company LG Corp., became its largest shareholder and took over as group chairman. What had been regarded as one of South Korea's smoother chaebol successions later descended into an unusually public family dispute. In 2023, Kim and her two daughters, Koo Yeon-kyung, head of the LG Welfare Foundation, and Koo Yeon-soo, sued Koo Kwang-mo seeking to recover and redistribute part of Koo Bon-moo's estate. A lower court ruled for Koo Kwang-mo in February, finding that the agreement dividing the inheritance was valid and that there had been no deception in the process. Kim and her daughters appealed, with the Seoul High Court set to hold its first preparatory hearing on Friday. While that case was pending, Kim filed a separate petition in November 2024 seeking to end her legal adoptive relationship with Koo Kwang-mo. Her legal team based the petition on Article 905 of South Korea's Civil Act, which allows an adoptive parent to seek judicial dissolution of an adoption in cases including serious mistreatment by the adopted child. “Considering the actual relationship between the plaintiff and the defendant, we believe their legal mother-son relationship should be dissolved,” her attorney said after Thursday's ruling. Thursday's rejection leaves intact the adoption that helped secure LG's fourth-generation succession, even as the family continues fighting in court over the fortune and legacy left by Koo Bon-moo. AJP Takeaways • The Seoul Family Court on September 3, 2026, rejected Kim Young-sik's petition to legally end her adoptive mother-son relationship with LG Group Chairman Koo Kwang-mo. • Kim Young-sik, widow of former LG Group Chairman Koo Bon-moo, filed the adoption-related case in November 2024 while separately disputing the division of Koo Bon-moo's estate with Koo Kwang-mo. • Koo Kwang-mo is the biological son of Heesung Group Chairman Koo Bon-neung and was adopted by Koo Bon-moo in 2004 as part of LG Group's leadership succession. 2026-09-03 16:55:17 -
Solution firm LaonPeople surges on gov't-led physical AI project SEOUL, September 3 (AJP) - Artificial intelligence (AI)-related solution company LaonPeople surged to its daily trading limit on Thursday after being selected for a government-backed physical AI project aimed at developing autonomous manufacturing technology. Its shares jumped 29.84 percent to 3,220 won (US$2.35) on the junior KOSDAQ as of around 2:40 p.m., reaching the market's daily price ceiling. The rally came after the company said it had been selected for a research project led by the Ministry of Science and ICT (MSIT) and the National IT Industry Promotion Agency (NIPA). The project, with an investment of 70.2 billion won over five years through 2030, involves developing a software platform for physical AI, which refers to AI systems that can understand real-world conditions and use machines such as robots to take physical action. Jeonbuk National University will lead a government-led consortium for the project, bringing together LaonPeople, NC AI, an artificial intelligence subsidiary of game developer NCSoft, and 13 other companies, universities and research institutions. At the center of the project is the development of a physical AI foundation model for a software-defined factory (SDF), where software and AI coordinate manufacturing operations. The model will use data from sensors, robots and other equipment to monitor factory conditions and help make operational decisions. The system is designed to detect changes on the factory floor and respond by reallocating tasks or adjusting production schedules. The broader goal is to allow AI to make and carry out more manufacturing decisions with less human intervention. The project is part of the government's broader manufacturing AI strategy, which calls for systems that can understand factory processes and autonomously control equipment and robots. The platform will first be tested at three manufacturing companies including automotive parts producers, before trials are expanded to other industries. LaonPeople will apply the model to automotive parts production and robotic systems. It plans to develop tools that can detect unusual conditions, predict equipment failures before they occur and improve production processes. It also plans to combine its existing vision-language model, an AI system that can interpret both images and text, with AI agents that can use that information to make decisions and direct robots to carry out tasks. It ultimately plans to turn the technology into an edge AI board, a piece of computing hardware installed directly in a robot or other factory equipment so AI processing can take place on the machine itself rather than relying entirely on a remote server or data center. The company plans to use the hardware to expand its business in the industrial robotics market. Founded in 2010, LaonPeople develops AI systems that automate business and manufacturing tasks including machine-vision technology that uses cameras and AI to inspect products and detect defects. AJP Takeaways • LaonPeople shares hit the KOSDAQ's daily price ceiling at 3,220 won ($2.35) as of 2:41 p.m. on Sept. 3, 2026, after the South Korean artificial intelligence company was selected for a government-backed physical AI project. • The Jeonbuk National University-led project brings together LaonPeople, NC AI and 13 other companies, universities and research institutions, with 70.2 billion won ($51.3 million) to be invested over five years through 2030. • LaonPeople will develop physical AI technology for automotive parts production and robotic systems, including tools that detect abnormal conditions, predict equipment failures and improve manufacturing processes. 2026-09-03 16:46:25 -
Bad loans hit 8-year high, but banks can absorb losses, FSS says SEOUL, September 02 (AJP) - Corporate debt is souring at a faster pace in South Korea, but financial authorities say the increase in bad loans is unlikely to pose a broader financial risk as banks remain profitable and well capitalized. Business nonperforming loans, or NPLs, rose by 1 trillion won from three months earlier to 15.2 trillion won at the end of June, accounting for the bulk of the banking sector's 18.9 trillion won in bad loans, according to the Financial Supervisory Service on Wednesday. The NPL ratio for small and midsized businesses climbed to 0.92 percent from 0.88 percent. “The increase in bad loans largely reflects prolonged weakness in the economy,” a senior official at the FSS's Bank Risk Supervision Department told AJP. “Higher interest rates have made it harder for borrowers to repay their debts.” The official said, however, that it was premature to be alarmed. “For problems in the banking sector to spill over into other financial sectors, banks themselves would have to deteriorate to a much more serious level,” he said. “We don't think we are at that point yet.” The delinquency rate on won-denominated bank loans fell to 0.56 percent in June from 0.67 percent in May, according to FSS data released Aug. 21. The regulator said the decline largely reflected banks' clearing of overdue loans at the end of the quarter rather than a meaningful easing in borrower stress. The same pattern appeared in corporate lending. The corporate loan delinquency rate fell to 0.68 percent from 0.84 percent in May, while the rate for small and midsized businesses declined to 0.82 percent from 1.00 percent. “Banks are sufficiently capitalized,” the official said, adding that strong profitability gives them room to build reserves and absorb additional credit losses. South Korean banks posted a combined net profit of 13.8 trillion won in the first half of 2026. Interest income rose 8.3 percent from a year earlier to 32.2 trillion won, according to FSS data released Aug. 24. Banks also increased provisioning, with loan-loss expenses rising by 300 billion won to 3.5 trillion won. Loan-loss reserves stood at 26.9 trillion won at the end of June, up 200 billion won from three months earlier. The coverage ratio, however, fell to 142.9 percent from 150.4 percent at the end of March as bad loans increased faster than reserves. The official said the lower ratio was not an immediate concern. “Before 2020, a coverage ratio above 100 percent was generally considered healthy,” he said. “The ratio has fallen from unusually high levels in recent years, but the current level is still not a concern.” Capital ratios also strengthened. Banks' common equity Tier 1, or CET1, ratio — a key measure of their ability to absorb losses — rose to 13.62 percent at the end of June from 13.50 percent three months earlier, while the total capital ratio increased to 15.77 percent, according to FSS data released Monday. All domestic banks remained well above regulatory requirements. “Banks remain profitable, giving them room to absorb potential losses,” the official said. AJP Takeaways • South Korean banks' corporate NPLs rose by 1 trillion won to 15.2 trillion won at the end of June, while the NPL ratio for small and midsized businesses climbed to 0.92 percent. • The FSS sees limited risk of corporate loan stress spreading across the wider financial system, citing banks' strong profitability, reserves and capital buffers. • Banks held 26.9 trillion won in loan-loss reserves at the end of June, while their CET1 ratio rose to 13.62 percent, leaving them with substantial capacity to absorb additional losses. 2026-09-02 18:08:35 -
Korean banks' bad loans hit 8-year high SEOUL, September 02 (AJP) - South Korean banks' bad loans climbed to their highest level in eight years at the end of June as lending to small and midsized businesses sour amid rising interest rates. Nonperforming loans (NPLs), or loans that borrowers are struggling to repay, reached 18.9 trillion won ($13.8 billion) at the end of June. The amount was up 1.2 trillion won from three months earlier, according to data released Wednesday by the Financial Supervisory Service (FSS). The total was the largest since June 2018, when it stood at 19.4 trillion won. The watchdog said banks remained financially sound overall but called for closer monitoring as bad loans continued to rise in vulnerable sectors and economic uncertainty persisted. The increase pushed the industry's NPL ratio to 0.63 percent from 0.60 percent at the end of March. The ratio measures bad loans as a share of banks' total lending and is widely used as an indicator of asset quality. Corporate lending accounted for most of the deterioration. Troubled business loans increased by 1 trillion won over the quarter to 15.2 trillion won, the largest amount since March 2019. The corporate NPL ratio rose 0.03 percentage point to 0.77 percent, its highest level since March 2021. The increase came as more borrowers fell behind on their repayments during the second quarter. Banks reported 7.2 trillion won in new bad loans, up 1.7 trillion won from the previous quarter. Businesses accounted for 5.7 trillion won of the new bad loans, up 1.6 trillion won from the previous quarter. Small and midsized companies made up 4.5 trillion won, an increase of 1.2 trillion won. The figure for large companies rose by 400 billion won to 1.2 trillion won. That pressure was also evident in NPL ratios. The ratio for small and midsized businesses rose 0.04 percentage point to 0.92 percent, while the figure for large companies increased 0.03 percentage point to 0.53 percent. Within the smaller-business segment, the ratio for incorporated companies climbed 0.05 percentage point to 1.08 percent. The figure for sole proprietors edged up 0.01 percentage point to 0.67 percent. Household bad loans rose more modestly, increasing by 100 billion won to 3.4 trillion won and lifting the NPL ratio by 0.01 percentage point to 0.33 percent. The ratio for mortgage loans remained unchanged at 0.22 percent. While the figure for other household borrowing, including unsecured loans, rose 0.01 percentage point to 0.67 percent. Credit card loans showed a larger increase in the NPL ratio, rising 0.06 percentage point to 1.88 percent, while the amount of bad loans remained unchanged at 300 billion won. Banks cleared 6.1 trillion won in bad loans during the second quarter, up 1.7 trillion won from the previous quarter. At the end of June, they also had 26.9 trillion won set aside to cover possible loan losses, up 200 billion won from three months earlier. Even so, reserves relative to bad loans fell to 142.9 percent at the end of June, down from 150.4 percent at the end of March. AJP Takeaways • South Korean banks' nonperforming loans reached 18.9 trillion won ($13.8 billion) at the end of June 2026, the largest amount since June 2018, according to the Financial Supervisory Service. • Corporate nonperforming loans rose to 15.2 trillion won at the end of June 2026, with small and midsized businesses accounting for 4.5 trillion won of new bad loans in the second quarter. • South Korean banks held 26.9 trillion won in loan-loss reserves at the end of June 2026, while reserves relative to bad loans fell to 142.9 percent from 150.4 percent at the end of March 2026. 2026-09-02 11:25:22 -
Securities firms lead in six-figure salaries SEOUL, September 2 (AJP) - Employees at South Korea's top 500 companies earned an average 54.99 million won (US$40,100) in the first half of this year, according to an analysis by corporate tracker CEO Score and released Wednesday. The figure was up 3.63 million won or 7.1 percent from 51.36 million won a year earlier, based on its analysis of 345 of the country's top 500 companies. Six-figure salaries were most common among employees at securities firms. Of the 20 companies with average pay of more than 100 million won for the first six months of this year, 12 were securities firms and five were financial holding companies. Chipmaker SK hynix, fintech company Dunamu and industrial group Doosan were the only nonfinancial companies among the highest paying companies. Korea Investment Holdings topped the ranking with average first-half pay of 184 million won per employee, up 13.6 percent from 162 million won a year earlier. Meritz Securities followed at 165.21 million won, ahead of Korea Investment & Securities at 162 million won and Yuanta Securities Korea at 149 million won. SK hynix ranked fifth at 144 million won, the top figure among companies outside the financial sector. Dunamu, the operator of cryptocurrency exchange Upbit, came next at 139.75 million won. Mirae Asset Securities followed at 136 million won, Meritz Financial Group at 130 million won and Hana Securities at 124 million won. NH Investment & Securities recorded 123 million won. Their dominance at the top reflects the industry's heavy reliance on performance-based bonuses in investment banking and trading. Pay levels were noticeably lower at the other end of the list. E-Land World, a fashion and retail company, ranked last with average first-half pay of 17 million won. The gap with Korea Investment Holdings was 167 million won, with the top-ranked company's figure 10.8 times higher. Food distribution and catering company CJ Freshway was second-lowest at 19 million won, followed by integrated food company Hyundai Green Food at 20.32 million won. Battery materials maker L&F and hospitality operator Hanwha Hotels & Resorts each recorded 23 million won. IT solutions and payment services provider Daou Data, food manufacturer OTOKI and retailer EMART each recorded 26 million won. Construction and trading company KOLON Global and food company HARIM were also at 26 million won. The most common pay range was 40 million won to 60 million won. Of the 345 companies surveyed, 150 or 43.5 percent, fell into that bracket. Another 86 companies, or 24.9 percent, fell between 20 million won and 40 million won, while 64 were in the 60 million won to 80 million won range and 23 were between 80 million won and 100 million won. Only two reported averages below 20 million won. Finance also led the industry rankings. Financial holding companies topped the list at 113.88 million won, up 5.2 percent from a year earlier. Securities firms followed at 107.10 million won. Telecommunications ranked a distant third at 69.67 million won, followed by banks at 67 million won, credit finance companies at 64.06 million won and insurers at 61.94 million won. The service sector averaged 58.83 million won, while shipbuilding, machinery and equipment companies recorded 57.51 million won. The year-on-year changes also varied widely by company. Yuanta Securities Korea recorded the biggest increase, with average first-half pay rising by 73 million won from a year earlier. Hana Securities gained 42 million won, Mirae Asset Securities 36 million won, Doosan 34 million won and Meritz Securities 33.82 million won. Beauty company APR recorded the biggest decline, with average pay falling by 32 million won from a year earlier. The research firm attributed the drop to a high comparison base created by gains from employees exercising stock options in the first half of 2025. Kyobo Life Insurance followed with a 15 million won decline, while Meritz Financial Group fell by 14 million won and Dunamu by 12.94 million won. Wind tower manufacturer CS Wind Corporation recorded an 11 million won decline. The figures were calculated from the companies' first-half disclosures and represent average employee compensation over six months, not annual salaries. AJP Takeaways • Average employee pay at 345 of South Korea's top 500 companies rose 7.1 percent to 54.99 million won in the first half of 2026. • South Korean securities firms accounted for 12 of the 20 companies where average six-month employee pay exceeded 100 million won. • Korea Investment Holdings topped the company ranking at 184 million won per employee, 10.8 times E-Land World's 17 million won. • Financial holding companies led the industry ranking with average first-half employee pay of 113.88 million won, followed by securities firms at 107.10 million won. 2026-09-02 11:10:46 -
Samsung, SK buybacks keep KOSPI afloat despite broad selling SEOUL, September 01 (AJP) - South Korea's benchmark stock index eked out a gain Tuesday as massive share buybacks by Samsung Electronics and SK hynix absorbed heavy selling by foreign, institutional and retail investors, while record chip exports helped steady sentiment despite a sharp rise in bond yields. The benchmark KOSPI closed at 6,835.80, up 0.23 percent from the previous session. The index fell as low as 6,732.47 in early trading before recovering to an intraday high of 6,857.35. The rebound came even as all three major investor groups sold shares. Foreign investors sold a net 491.9 billion won ($359 million) of KOSPI shares, institutions unloaded 634.0 billion won and retail investors sold 539.8 billion won. Other corporations emerged as the major counterweight, buying about 1.69 trillion won as Samsung Electronics and SK hynix continued their large-scale share repurchases. The two chipmakers bought a combined 10.3 trillion won worth of shares from Aug. 20 through Aug. 28, according to Shinhan Securities. Their purchases totaled 8.05 trillion won from Aug. 24 through Aug. 28, nearly matching the 8.32 trillion won of KOSPI shares sold by foreign investors over the same period. The buying helped pull both chip heavyweights and the broader index back from their morning lows. Strong August export data provided another cushion. South Korea's exports surged 68.7 percent from a year earlier to $98.25 billion, the third-highest monthly total on record. Semiconductor exports soared 209 percent to a record $46.65 billion as AI-related demand continued to drive chip shipments. The government's record spending plan for next year presented a more mixed signal for markets. Seoul proposed an 820.9 trillion won ($597 billion) budget for 2027, up 12.8 percent from this year in the biggest annual increase on record, drawing heavily on a tax windfall generated by booming semiconductor profits. While the fiscal expansion raised expectations for stronger government-led investment, concerns over public finances and future debt issuance hit the bond market. The 30-year government bond yield jumped 10 basis points to 4.627 percent, while the 20-year yield climbed 6.9 basis points to 4.559 percent. The 10-year yield rose 5.8 basis points to 4.371 percent. Semiconductor heavyweights recovered alongside the broader market after falling early in the session. Samsung Electronics rose 0.38 percent to 261,000 won, while SK hynix gained 1.14 percent to 1,693,000 won. Gains extended to several other large-cap shares. Samsung C&T climbed 3.72 percent to 390,500 won, while SK Square rose 2.89 percent to 1,067,000 won. Samsung Life gained 1.14 percent to 309,500 won and Shinhan Financial advanced 2.02 percent to 111,100 won. Samsung Biologics edged up 0.13 percent to 1,520,000 won, while Kia added 0.15 percent to 131,200 won. On the downside, Hanwha Aerospace dropped 3.99 percent to 1,058,000 won, while LG Energy Solution fell 2.91 percent to 367,000 won. Samsung Electro-Mechanics lost 1.92 percent to 1,430,000 won and Doosan Enerbility declined 1.33 percent to 81,400 won. KB Financial fell 1.21 percent to 171,200 won, while Hyundai Motor slipped 0.74 percent to 400,500 won. The junior KOSDAQ moved in the opposite direction, closing 1.56 percent lower at 821.25 as foreign and institutional selling outweighed retail buying. The index fell as low as 815.52 after reaching an intraday high of 833.52. Retail investors bought a net 433.7 billion won, while foreign investors sold 151.4 billion won and institutions unloaded 275.1 billion won. Losses were widespread, with 950 stocks falling, 686 advancing and 98 finishing unchanged. Biotechnology, battery and semiconductor-related shares were among the main decliners. Alteogen, a biotechnology company developing drug-delivery and biologics platform technologies, fell 2.11 percent to 301,000 won. HLB dropped 4.35 percent to 34,050 won. Battery-material shares were also under pressure. EcoPro, the holding company at the center of the group's battery-material business, slid 4.49 percent to 87,200 won. EcoPro BM, which produces cathode materials for electric vehicles and energy storage systems, lost 3.81 percent to 116,200 won. Rainbow Robotics, which develops collaborative, mobile and humanoid robots, declined 2.39 percent to 449,500 won. Semiconductor equipment and component makers were broadly lower. Jusung Engineering, which makes semiconductor deposition equipment, fell 2.26 percent to 173,000 won, while Wonik IPS, a semiconductor and display equipment maker, slipped 1.35 percent to 110,000 won. LEENO Industrial, which makes semiconductor test pins and sockets, declined 1.65 percent to 65,500 won. EO Technics, a maker of laser-based semiconductor equipment, dropped 2.48 percent to 394,000 won, while Simmtech, which produces semiconductor package substrates, lost 2.86 percent to 125,600 won. In the currency market, the Korean won weakened 1.8 won to close at 1,370.4 per dollar. The broader market has become less volatile but also markedly less active after the sharp swings earlier in the summer. The VKOSPI, a gauge of expected volatility in KOSPI 200 shares, closed at 44.03 Tuesday, less than half its June 29 level of 96.94, according to the Korea Exchange. The calmer market has been accompanied by a sharp drop in turnover. Average daily KOSPI trading value fell to 25.77 trillion won in August, nearly half June's 50.35 trillion won and the lowest level this year. The share turnover ratio declined to 0.54 percent. Retail participation has also remained subdued. Investor deposits stood at 98.70 trillion won as of Aug. 28, down nearly 30 percent from a record 139.69 trillion won on June 4, as investors remained cautious following losses during July's selloff. Investors have also remained wary ahead of the September Federal Open Market Committee meeting as uncertainty over the direction of U.S. interest rates persists. Korean investors nevertheless continued buying U.S. equities, with net purchases reaching $1.96 billion in August for a third straight month. Foreign investors, meanwhile, remained net sellers of Korean shares, unloading 10.18 trillion won of KOSPI stocks in August. They nevertheless bought a net 14,246 KOSPI 200 futures contracts in the final week of the month, suggesting some easing in bearish positioning. Across the region, stocks were mostly lower. Japan's Nikkei 225 slipped 0.15 percent to 66,215.34 as rising Japanese and U.S. yields weighed on the market. China's Shanghai Composite edged down 0.16 percent to 3,979.89 as weakness in technology shares offset gains in defensive sectors. Hong Kong's Hang Seng Index fell 0.93 percent to 25,329.73. AJP Takeaways • South Korea's KOSPI closed 0.23 percent higher at 6,835.80 on Sept. 1, 2026, after falling more than 1 percent intraday, as corporate share purchases and strong August exports offset selling by foreign, institutional and retail investors. • Samsung Electronics and SK hynix helped support the market through recent share purchases, while South Korea's August exports rose 68.7 percent from a year earlier to $98.25 billion and semiconductor exports surged 209 percent to a record $46.65 billion. • The broader market remained calmer but less active, with the VKOSPI ending at 44.03 on Sept. 1 and August KOSPI trading value falling to about half its June level, while foreign investors stayed net sellers of Korean shares and domestic investors continued buying U.S. equities. 2026-09-01 17:47:22