Journalist
Lee Hugh
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BNK Financial Posts 211.4 Billion Won Q1 Net Profit, Up 26.9% on Year BNK Financial Group said Thursday in an earnings disclosure that its consolidated net profit for the first quarter of 2026 totaled 211.4 billion won. The result was up 26.9%, or 44.8 billion won, from a year earlier. The group said higher selling and administrative expenses and weaker noninterest income were offset by steady net interest income and lower credit-loss provisions. By segment, banking net profit came to 175.6 billion won, up 20.6 billion won from a year earlier. BNK Busan Bank posted a 22.5 billion won increase, while BNK Kyongnam Bank slipped 1.9 billion won. Nonbank units reported net profit of 59.6 billion won, up 25.3 billion won, as results improved across affiliates. BNK Capital rose 10.7 billion won and BNK Asset Management gained 7.5 billion won, the group said. Asset quality indicators weakened. The group’s nonperforming loan ratio was 1.57% and its delinquency rate was 1.42%, up 15 basis points and 28 basis points, respectively, from the previous quarter, which it attributed to an increase in bad loans amid a slowing economy. The group’s common equity Tier 1 ratio stood at 12.30%, up 5 basis points from a year earlier. BNK Financial said its board approved a quarterly cash dividend of 150 won per share, a 25% increase from last year. It also plans to buy back and cancel 60 billion won worth of its own shares in the first half. Park Seong-uk, the group’s chief financial officer, said BNK Financial will work to raise shareholder value by increasing the share of buybacks and cancellations while steadily expanding cash dividends to meet requirements for high-dividend companies under separate taxation of dividend income. * This article has been translated by AI. 2026-04-30 15:43:46 -
Korea Fund Assets Near 1,500 Trillion Won in Q1 as Stock Funds and ETFs Surge South Korea’s fund market expanded sharply in the first quarter, with total net assets nearing 1,500 trillion won as inflows concentrated in equity funds and money market funds, and exchange-traded funds posted strong growth. The Korea Financial Investment Association said Thursday in its “2026 first-quarter fund market trends” report that total net assets for public and private funds stood at 1,493.9 trillion won at the end of March, up 117.6 trillion won, or 8.5%, from 1,376.3 trillion won the previous quarter. The quarterly growth rate accelerated from 6.3% in the second quarter of last year, 5.9% in the third and 5.2% in the fourth. Both public and private funds increased. Public funds rose to 705.5 trillion won, up 96.1 trillion won, or 15.8%, from the prior quarter. Private funds climbed to 788.4 trillion won, up 21.5 trillion won, or 2.8%. By category, net assets increased across most types, with bond funds the exception, falling 3.9 trillion won. Equity funds posted the largest gain, rising 56.0 trillion won, followed by money market funds, or MMFs, up 34.5 trillion won, and derivatives funds, up 10.2 trillion won. Public-fund growth was led by equity funds and MMFs, while private funds grew mainly in MMFs and special-asset funds. Net inflows also showed a tilt toward equity funds and MMFs. Total funds recorded net inflows of 85.4 trillion won in the quarter, while bond funds alone saw net outflows of 2.5 trillion won. Public funds took in 72.3 trillion won and private funds 13.1 trillion won. By investment region, domestically focused funds drew 73.2 trillion won and overseas funds 12.1 trillion won. By type, net inflows went to equity funds at 32.9 trillion won, MMFs at 32.7 trillion won, derivatives funds at 7.5 trillion won and mixed funds at 4.4 trillion won. Public funds attracted money mainly into equity funds and MMFs, while private funds saw inflows centered on MMFs and mixed-asset funds. The share of domestically focused funds also increased. As of the end of March, domestic-investment funds held net assets of 976.1 trillion won, up 103.9 trillion won, or 11.9%, accounting for 65.3% of the total. Overseas-investment funds rose 13.7 trillion won, or 2.7%, to 517.8 trillion won, lowering their share to 34.7%. Domestic equity funds climbed to 177.8 trillion won, a 41.5% jump from 125.6 trillion won the previous quarter, helping drive overall market growth. Overseas funds posted more modest gains, led by equity and special-asset funds. ETF growth was particularly strong. ETF net assets totaled 360.7 trillion won at the end of March, up 63.6 trillion won, or 21.4%, from 297.1 trillion won the previous quarter. Within ETFs, equity products accounted for the largest share at 58.2%, followed by derivatives at 21.3% and bond ETFs at 14.6%. Net assets in public funds excluding ETFs rose to 344.7 trillion won, up 32.5 trillion won, or 10.4%. Public funds accounted for 47.2% of total fund assets, up 2.9 percentage points from the previous quarter, narrowing the gap with private funds. * This article has been translated by AI. 2026-04-30 15:42:19 -
South Korea to Overhaul 2027 R&D Budget, Shift Funds to Strategic Technologies The government is moving to restructure funding for 2027 research and development, concentrating investment on national strategic technologies such as semiconductors, artificial intelligence, advanced bio and quantum technology. It also plans to streamline R&D spending across ministries by cutting discretionary outlays by about 15% and mandatory spending by about 10%. The Ministry of Science and ICT and the Office of Budget Planning said they held a budget strategy meeting on the afternoon of April 30 to discuss the “2027 R&D investment strategy.” The meeting was chaired by Park In-gyu, head of the Science and Technology Innovation Office at the ministry, and attended by more than 30 ministries and agencies that run R&D programs. Under the Framework Act on Science and Technology, the ministry’s Science and Technology Innovation Office draws up a plan each year to allocate and adjust the next year’s national R&D budget, after deliberation and approval by the National Science and Technology Advisory Council by the end of June. The budget office then compiles and considers the plan in drafting the final government budget proposal. The government said the 2027 allocation and adjustment plan will focus on: strengthening strategy through cross-government “one-team” cooperation; restructuring government R&D and reinvesting in priority areas; overhauling programs through broad evaluation and feedback; and introducing an equity-investment approach to R&D support to build a virtuous investment cycle. To improve efficiency and consistency, the government said it will reduce barriers between ministries and allocate R&D budgets from an integrated national perspective. It will also set shared goals and expand cooperation, including strengthening “inter-ministerial collaborative R&D.” It will also pursue spending restructuring for government R&D. More than 30 ministries and agencies will work on budget efficiency and spending adjustments, using benchmarks of 15% for discretionary spending and 10% for mandatory spending across fiscal programs. With resources secured through the restructuring, the government said it will reinvest in national strategic technologies in line with its “direction for advancing the national strategic technology system.” It previously selected 12 strategic technologies, including manufacturing and energy areas such as semiconductors, secondary batteries and hydrogen; mobility, aerospace and communications; and AI, bio and quantum. It also said it would foster the areas systematically by designating 50 detailed priority technologies. The government also plans to hold a “National Strategic Technology Leading Next Project Promotion Conference” (tentative name) in May to select target projects. It will also move to fix inefficient R&D programs. The innovation office said it will strengthen evaluation and inspections and reorganize programs around areas with higher potential to produce results. In addition, the government said it will newly pursue an equity-investment model for R&D support, shifting away from a grant-centered structure to one that can recover investments. Park said the 2027 R&D budget would be a “golden-time budget” to meet goals over the next four years. “We will thoroughly block waste factors and prepare a performance-centered budget that boldly invests in areas that are truly necessary,” he said, adding that the government would work as “one team” to drive technology-led growth. 2026-04-30 15:33:19 -
Hanwha Aerospace posts solid Q1 earnings, record-high order backlog SEOUL, April 30 (AJP) - Hanwha Aerospace reported solid first-quarter earnings on the back of improved performance in its aerospace division and key subsidiaries, while its order backlog reached a record high amid steady growth in overseas contracts. The company said Thursday that its consolidated revenue rose 5 percent year-on-year to 5.751 trillion won ($3.9 billion) in the January–March period, while operating profit climbed 21 percent to 638.9 billion won. By segment, the ground defense division posted revenue of 1.2211 trillion won and operating profit of 208.7 billion won. While revenue rose 5 percent on-year, operating profit fell 31 percent. Its order backlog reached a record high of about 39.7 trillion won, supported by overseas deals including a 1.3 trillion won Chunmoo export to Norway. The aerospace division reported revenue of 661.2 billion won and operating profit of 22.6 billion won. Revenue increased 25 percent, while operating profit surged more than fivefold on higher military demand and a greater share of high-margin businesses. Hanwha Ocean posted revenue of 3.2099 trillion won and operating profit of 441.1 billion won, up 2 percent and 71 percent, respectively, driven by more high-value ships such as LNG carriers and favorable exchange rates. A company official said the firm “maintained solid growth in the first quarter, supported by strong performance in the aerospace division and Hanwha Ocean,” adding that it would “continue to deliver new orders and maximize shareholder value on the back of a record-high backlog.” During an earnings conference call held on Thursday, Han Sang-yoon, executive vice president in charge of IR at Hanwha, said only part of the Polish order for Chunmoo launchers was reflected in the first-quarter results, adding that earnings momentum is expected to accelerate from the second quarter. “From the second quarter, deliveries to Poland, Australia and Egypt will begin to be reflected, leading to improved performance compared with the first quarter,” Han said. “Demand for air defense systems is rising in the Middle East, and projects such as Spain’s self-propelled howitzer program are expected to further support growth.” Meanwhile, Hanwha Aerospace said it signed a memorandum of understanding on Wednesday in Ontario, Canada, with the Automotive Parts Manufacturers’ Association and Hanwha Ocean to establish a joint venture for the production of military vehicles, including the K9 self-propelled howitzer. The agreement comes as Hanwha Ocean and HD Hyundai Heavy Industries are jointly bidding for Canada’s submarine program known as the CPSP. The two companies have formed a consortium to compete against Germany’s TKMS, with the preferred bidder expected to be announced in June. 2026-04-30 15:31:51 -
Kim Gyeong-bae Named President of Korea Craft and Design Foundation Culture, Sports and Tourism Minister Choi Hwi-young appointed Kim Gyeong-bae, a professor at Kyonggi University’s Graduate School of Hallyu Culture, as president of the Korea Craft · Design Culture Promotion Agency, effective April 30, and presented him with a letter of appointment. Kim’s term is three years. Kim earned a master’s degree in industrial design from the Royal College of Art in the United Kingdom and has built more than 30 years of experience in the convergence of design and cultural content, the ministry said. He previously led Design Icon and served as executive vice president overseeing design at Inno Design Co., developing his own design philosophy while building practical expertise and management experience in industry. He is currently a professor at Kyonggi University, working to expand the cultural content industry and train talent for K-culture convergence. Choi called Kim “an expert in the convergence of design and cultural content,” and said he expects Kim to drive innovation to expand the use and industrialization of crafts, traditional culture and public design — and to help them enter global markets — based on his experience leading projects spanning design, technology and culture. * This article has been translated by AI. 2026-04-30 15:28:20 -
Krafton posts record Q1 on surging PUBG franchise revenue SEOUL, April 30 (AJP) - Krafton, the South Korean gaming giant behind the PUBG franchise, posted record first-quarter results as its flagship battle royale series and a newly consolidated advertising subsidiary propelled revenue to all-time highs. The company reported through regulatory filings Thursday consolidated revenue of 1.37 trillion won ($924 million) and operating profit of 561.6 billion won for the three months ended March, up 56.9 percent and 22.8 percent from a year earlier, respectively. First-quarter operating profit alone accounted for 53 percent of Krafton's full-year 2025 earnings, underscoring the pace of the company's momentum. The PUBG intellectual property franchise was the principal engine of growth, with quarterly revenue surpassing the 1 trillion won threshold for the first time, a 24 percent jump from the year-ago period. On PC, the ninth-anniversary Aston Martin collaboration drove strong sales, while PUBG Mobile benefited from a premium tie-up with German hypercar maker Apollo Automobil. Battlegrounds Mobile India saw a 17 percent year-on-year rise in paying users following server expansion investments. Krafton said it would continue scaling up inZOI, its life simulation title launched in early access last year, through content upgrades, console porting and AI-powered modding tools aimed at transforming it into a platform-driven franchise. The company also flagged the upcoming early access launch of open-world survival game Subnautica 2. "We are accelerating our 'AI for Game' strategy," the company said, adding that it plans to deploy its Raon multimodal AI models across titles and introduce PUBG Ally, a co-playable AI character, in a beta service for Battlegrounds Arcade later this year. Shares of Krafton were trading at 263,500 won per stock, 5.05 percent lower than the day before. 2026-04-30 15:27:32 -
South Korea Welcomed 4.74 Million Visitors in Q1, Up 123% From 2019; China Led South Korea drew 4.74 million foreign visitors in the first quarter, surpassing pre-COVID-19 levels, with arrivals surging in March as inbound tourism continued to rebound. ◆ Q1 visitors hit 4.74 million; Chinese tourists lead at 1.42 million According to Korea Tourism Organization statistics, cumulative inbound visitors from January to March totaled 4.74 million, up 22.6% from a year earlier. The figure represents a 123.4% recovery compared with the same period in 2019, exceeding pre-pandemic demand. China ranked first in visitor numbers, with 1.42 million arrivals in the quarter. Japan followed with 940,000, then Taiwan with 540,000, the United States with 310,000 and the Philippines with 150,000. ◆ March alone jumps to 2.05 million; sharp growth in the Americas and Southeast Asia The monthly rise was steeper in March, when arrivals reached 2,045,992, up 26.7% from 1,614,596 a year earlier. That was 133.2% of the March 2019 level. By country in March, China led with 501,000 visitors, followed by Japan with 482,000, Taiwan with 192,000, the United States with 152,000 and Vietnam with 75,000. Compared with March 2019, China and Japan reached 102.8% and 128.4%, respectively. Taiwan (195.0%), the United States (180.9%) and Vietnam (159.3%) were near double their pre-pandemic levels. By region, the Asia-Middle East market recovered to 141.2% of 2019 levels, while Europe and the Americas reached 169.2%, pointing to broad-based growth beyond Asia. ◆ Q1 outbound Koreans total 8.33 million; market recovers to 106% Outbound travel by South Koreans also climbed. From January to March, the number of Korean overseas travelers totaled 8.33 million, or 105.9% of the first quarter of 2019, indicating a full return to pre-pandemic activity. In March alone, outbound travelers totaled 2,293,716, up 4.4% from 2,197,971 a year earlier and recovering to 98.3% of the March 2019 level.* This article has been translated by AI. 2026-04-30 15:27:17 -
Democratic Party Picks Ha Jeong-woo, Jeon Eun-su for June 3 By-Elections The Democratic Party on the 30th made strategic nominations of Ha Jeong-woo, a former senior presidential secretary for AI Future Planning, in Busan’s Buk-gu Gap district and Jeon Eun-su, a former presidential spokesperson, in South Chungcheong Province’s Asan Eul district for the June 3 by-elections. Senior party spokesperson Kang Jun-hyeon told reporters at the National Assembly that Ha is a Busan native who spent his school years there, calling him the right person to carry on the constituency of Jeon Jae-su, the party’s Busan mayoral candidate. Ha and Jeon are high school alumni, with Ha the junior. Kang added that the party expects Ha to help address pressing issues in Busan and to “raise the level of AI legislation by one step” in the National Assembly. On Jeon, Kang said Asan, home to many large companies, draws voters with varied local ties, making careful education and child care policies essential. He said Jeon, a former teacher, is expected to show strong expertise in those areas. The party held a welcome event the previous day for Ha and Jeon and had signaled their nominations. 2026-04-30 15:24:18 -
Credit card spending rises in Q1 despite weak consumer sentiment SEOUL, April 30 (AJP) - Credit card spending rose despite weakening customer sentiment due to the prolonged conflict in the Middle East. According to data compiled by the Credit Finance Association of Korea on Thursday, people went plastic with 322 trillion won (about US$220 billion) worth of purchases, or 7.2 billion transactions, in the first quarter, up 7.2 percent and 5.1 percent, respectively, compared to the same period last year. Personal card spending rose 6.8 percent to 264.4 trillion won while corporate card spending climbed 8.7 percent to 57.8 trillion won. Online shopping remained strong, rising 8.5 percent from a year earlier to 46.7 trillion won, largely driven by food delivery and travel bookings. A rebound in travel demand also boosted card spending, with the number of air passengers rising 12.6 percent in the first three months of this year, while spending by foreign tourists surged 37.1 percent. The association also cited higher oil prices in March, which drove up spending on fuel. 2026-04-30 15:20:33 -
Gwangju to Cover Vacation Fund Share for Small-Firm Workers, a First in South Korea Gwangju Metropolitan City will become the first local government in South Korea to use its own budget to directly subsidize vacation funds for workers at small and midsize companies in the city. The Korea Tourism Organization said it signed a business agreement on Wednesday with the Gwangju city government and the Gwangju Chamber of Commerce and Industry for the “Vacation Plus” program for small-company workers in the region. The program will cover 350 manufacturing workers in Gwangju. Under the existing Worker Vacation Support Program, a total of 400,000 won is saved, with workers contributing 200,000 won, their companies 100,000 won and the government 100,000 won. Under the new agreement, Gwangju will pay the full worker share (200,000 won) and half of the company share (50,000 won). As a result, workers can secure 400,000 won in vacation funds with no out-of-pocket spending. Kim Seok, head of the KTO’s National Tourism Office, said the partners plan to expand the cooperation model to other regions in the second half of this year. Jeon Eun-young, a director at the Gwangju Chamber of Commerce and Industry, said the effort is the first attempt to strengthen worker welfare through cooperation between a local government and a regional economic group, and is expected to improve the quality of life for manufacturing workers. * This article has been translated by AI. 2026-04-30 15:20:00