Journalist

Lee Hugh
  • Credit card spending rises in Q1 despite weak consumer sentiment
    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 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
  • Business groups say raising retirement age to 65 must include wage system overhaul
    Business groups say raising retirement age to 65 must include wage system overhaul The government is accelerating plans to raise the mandatory retirement age to 65, and business groups are urging that wage adjustments for workers 60 and older be recognized as an exception to age-discrimination rules. The government says it plans to submit legislation in the first half of the year, but no agreement has been reached on wages or employment arrangements. On the 30th, the Democratic Party’s special committee on extending the retirement age held a meeting with business representatives from large and small companies to discuss directions for overhauling wage systems. Business groups say they can accept a higher retirement age, but only if wage systems are restructured. The Korea Employers Federation said it recently interviewed many Japanese companies, where continued employment after age 60 has been established earlier than in South Korea, to review how the policy was introduced and how it operates in practice. The federation is calling for a compromise that allows voluntary implementation reflecting each company’s personnel system. It also wants to ease the added labor-cost burden of keeping older workers by shifting to job- and performance-based pay. A uniform wage cut, it argues, could weaken motivation and reduce productivity, so compensation should be differentiated based on expertise and results. According to the federation, Japan shares the social costs of extending older-worker employment among labor, management and government. Companies employ all applicants, but wages upon rehire are adjusted to about 20% to 30% below previous levels, with the government covering a substantial portion. Japan keeps the legal retirement age at 60 but requires measures to secure employment through 65. Companies choose one of three options: rehiring, extending retirement, or abolishing retirement. Japan has also reduced corporate burdens by allowing changes to work rules deemed socially reasonable without going through labor-management agreement procedures. Nissan Motor, for example, provides differentiated incentives to workers over 60 who deliver performance or have strong technical skills. Lee Dong-geun, vice chairman of the Korea Employers Federation, told Aju Business that because Japan’s industry and employment structure are similar, “the most desirable approach is a company-choice model following Japan’s precedent.” He added that if the retirement age is extended, “the wage system must also be reformed” to address concerns about reduced youth hiring. Shin Chang-hoon, a managing director at Lotte Holdings, said problems tied to seniority-based pay are serious, adding that if flexibility in seniority and employment is secured, extending the retirement age “would not be a big issue.” An industry official said no agreement was reached at the meeting. “It was simply a chance to hear companies’ situations,” the official said, adding that discussions would likely become more substantive after local elections. With labor and management far apart on wage cuts, conflict is expected to continue during the legislative process. Participants included the Korea Employers Federation, the Korea Federation of SMEs, Samsung Global Research, Hyundai Motor, SK Supex Council, LG Electronics and Lotte Holdings.* This article has been translated by AI. 2026-04-30 15:18:19
  • Samsung Electro-Mechanics tops 3 trillion won in quarterly sales for first time, sees Q2 growth
    Samsung Electro-Mechanics tops 3 trillion won in quarterly sales for first time, sees Q2 growth Samsung Electro-Mechanics said it surpassed 3 trillion won in quarterly revenue for the first time, driven by a surge in artificial intelligence-related demand that lifted sales of high-value products for industrial and automotive uses. The company said the growth trend is expected to continue in the second quarter as well. In a regulatory filing on Wednesday, Samsung Electro-Mechanics reported first-quarter consolidated revenue of 3.2091 trillion won and operating profit of 280.6 billion won. Revenue rose 470.5 billion won, or 17%, from a year earlier, while operating profit increased 80.1 billion won, or 40%. The company said results improved as it expanded supply of products such as multilayer ceramic capacitors, or MLCCs, for AI servers and advanced driver-assistance systems, and flip-chip ball grid array, or FC-BGA, substrates, supported by solid demand for high-value industrial and automotive components. It said demand strength is expected to persist for high-value MLCCs and FC-BGA products used in AI servers and data centers, citing upgrades to data center infrastructure and rising power consumption by AI servers. On FC-BGA, the company said demand for high-performance semiconductors is surging as adoption of agentic AI spreads. It said existing customers are asking for more supply and that overall demand exceeds the company’s production capacity. Samsung Electro-Mechanics said it is discussing price increases with major customers to reflect higher raw material prices and supply conditions for materials such as gold and copper. It said its full-year outlook remains cautious given external variables, but added that the FC-BGA business could post a sharp revenue increase on rising demand tied to expanded AI investment by big tech companies. MLCC demand is also surging, the company said, with a growing trend toward long-term supply contracts. It said second-quarter MLCC demand is expected to grow from the first quarter across all applications. The company said it has launched new products with twice the capacity for graphics processing units and power modules as power consumption rises on next-generation AI server platforms, and that customers have responded positively. It added it is pursuing long-term contracts to ensure stable supply. The company said it is also expanding MLCC sales into the aerospace sector. For ground terminals, it said, similar products to those used for AI servers — including small, high-temperature and high-capacity MLCCs — are used, and the company is participating as a key supplier. It said it is doing business with leading global customers and aims to secure an early position in the growing aerospace MLCC market and strengthen its mid- to long-term growth base. Looking ahead, Samsung Electro-Mechanics said it expects performance growth in the second quarter from both the previous quarter and a year earlier. It said AI data center investment is expected to continue in the second half and automotive demand to remain steady, which could lead to a larger expansion in results. The company also said it plans to supply camera modules for robotaxis and humanoid robots. It said it will expand its lineup for high-resolution sensing based on its camera technology for IT devices and its capabilities to internalize key components, and will further develop specialized technologies such as all-weather camera products. It said it plans to supply new camera module products for robotaxis in the second quarter and for humanoids in the second half. It added it plans to secure new solutions for next-generation physical AI in a timely manner to respond proactively to new product needs and future markets. * This article has been translated by AI. 2026-04-30 15:16:38
  • POSCO Holdings posts Q1 operating profit of 707 billion won; POSCO Future M turns profitable
    POSCO Holdings posts Q1 operating profit of 707 billion won; POSCO Future M turns profitable POSCO Holdings said in a regulatory filing on Wednesday that it posted first-quarter consolidated revenue of 17.876 trillion won, operating profit of 707 billion won and net profit of 543 billion won. The company said revenue and profit rose from a year earlier despite heightened uncertainty in energy supply chains and financial markets stemming from the war between the United States and Iran. It said losses in its lithium business narrowed sharply as POSCO Argentina began full-scale commercial production. In steel, POSCO said profit fell even as sales volume increased, citing higher raw material costs driven by a weaker currency. It said overall steel-segment profit increased on stronger sales at overseas steel units and cost cuts. In battery materials, POSCO Future M returned to profit on expanded sales of cathode materials in new markets and higher sales of value-added products. POSCO Argentina and POSCO Pilbara Lithium Solution also reduced losses on higher output and rising lithium prices, the company said. POSCO Argentina recorded its first monthly profit in March as output and selling prices continued to rise, and the company said it expects its first quarterly profit in the second quarter. POSCO HY Clean Metal posted its first quarterly operating profit on sustained high utilization and cost reductions, it said. In infrastructure, POSCO International maintained solid profit on broadly strong sales across its businesses including gas and energy, the company said. POSCO E&C returned to profit as one-off costs were resolved. POSCO Holdings also announced a midterm shareholder return policy for 2026 through 2028. It said it previously paid dividends based on free cash flow after investments, but will adopt a performance-linked policy based on adjusted controlling net income starting this year, reflecting plans for intensive investment in future growth areas such as steel and energy materials. The company set a shareholder return ratio of 35% to 40% and said it will adjust valuation gains and losses that are unrelated to operating performance or are one-time items to support dividend stability. It said it plans to balance investment for future growth with stable dividends and new share buybacks and cancellations. POSCO Holdings also outlined progress on its “complete localization” strategy for steel and investment tied to its decarbonization transition, which Chairman Chang In-hwa highlighted in a New Year’s address. The company said it signed a joint venture agreement on the 20th with India’s top steelmaker, JSW Steel, and plans to build an integrated production system in India with crude steel capacity of 6 million tons to secure a stable profit base in a growth market. In South Korea, it said a March approval by the Ministry of Land, Infrastructure and Transport to change plans for the Pohang National Industrial Complex made it possible to prepare a site for hydrogen-based steelmaking, known as HyREX. It also said it will start operating a new electric arc furnace in Gwangyang with annual capacity of 2.5 million tons in June, and will use profits generated in global markets to fund domestic decarbonization investments while strengthening mid- to long-term competitiveness.* This article has been translated by AI. 2026-04-30 15:15:21
  • Kiwoom Securities Nears Launch of Retirement Pension Business
    Kiwoom Securities Nears Launch of Retirement Pension Business Kiwoom Securities is preparing to enter South Korea’s retirement pension business, with market watchers saying its large base of individual investors could help it build a stronger presence in the pension market. Attention is also focused on whether a new player could accelerate a so-called “money move” — a shift of retirement pension assets toward securities firms — in a market that has grown to about 500 trillion won. According to the financial investment industry on Wednesday, Kiwoom completed registration with the Financial Services Commission earlier this month as a retirement pension provider and is preparing to launch services in June. The firm is building systems and refining its product lineup ahead of a full market entry. Kiwoom has also reorganized internally, forming a pension business team of about 30 people within its wealth management division. The team is led by Managing Director Pyo Young-dae, a retirement pension specialist who worked more than 15 years at Mirae Asset Securities and has led preparations since a task force was created in 2024. Kiwoom’s goal is to break into the top five by market share. As of the end of the first quarter, retirement pension assets at securities firms were led by Mirae Asset Securities with 42.4411 trillion won, followed by Samsung Securities (23.2681 trillion won), Korea Investment & Securities (22.5945 trillion won), Hyundai Motor Securities (18.8552 trillion won), NH Investment & Securities (10.7541 trillion won) and KB Securities (8.8981 trillion won). Reaching the top five would require securing at least 10 trillion won in assets. The market widely cites Kiwoom’s retail strength as its biggest advantage. The firm has held the No. 1 retail market share for 21 consecutive years and is seen as competitive in digital platforms centered on its mobile trading system. Analysts also say cost efficiency and pricing competitiveness through non-face-to-face channels could help it attract customers early. But the firm also faces clear constraints. The retirement pension market still relies heavily on corporate contracts and in-person sales. With a limited offline sales network, Kiwoom could be at a disadvantage versus larger rivals in defined benefit (DB) and defined contribution (DC) plans. Taking that structure into account, Kiwoom plans to focus first on individual retirement pensions, or IRPs. The strategy is to quickly expand contact with individual customers through IRPs, then gradually broaden into DC and DB offerings while building an integrated pension solution. Its product approach also emphasizes online distribution. Kiwoom plans to offer online-only products at low cost to reduce fee burdens and strengthen a structure that allows customers to select and manage products on its platform. It also aims to build an integrated wealth management platform linking retirement pensions with pension savings and individual savings accounts, or ISAs, providing services across the life cycle from contributions and management to withdrawals. Some in the market expect Kiwoom’s entry to speed up the shift of assets from banks to securities firms. According to the Financial Supervisory Service’s Integrated Pension Portal, total retirement pension assets stood at 501.4 trillion won at the end of last year, up 16.1% from 431.7 trillion won a year earlier. Over the same period, the securities industry’s share rose to 26.5% from 24.3%, while banks’ share edged down to 52.4% from 52.9%. * This article has been translated by AI. 2026-04-30 15:13:28
  • South Korea says 5 trillion won in extra budget executed, seeks faster local subsidies
    South Korea says 5 trillion won in extra budget executed, seeks faster local subsidies South Korea has executed 5 trillion won of a supplementary budget drawn up to respond to the war in the Middle East, as spending moved into full swing by the end of April, officials said. The Office of Planning and Budget said it held its eighth fiscal execution review meeting on April 30 at the Government Complex Seoul, chaired by Vice Minister Lim Ki-geun, to check the status of the extra budget and next steps. Of the 26.2 trillion won supplementary budget, the government designated 10.5 trillion won for fast-track execution management and set a target of spending 85% by the first half of the year. After moving quickly on preliminary steps such as project notices, selecting recipients, and allocating and disbursing funds, 5 trillion won, or 47%, had been executed as of April 30, it said. With execution accelerating, the meeting focused on ways to speed up actual spending, particularly for local subsidy projects. Local governments have been advancing disbursements by swiftly drafting their own supplementary budgets and using available mechanisms, including spending before formal budget approval, the office said. For high-priority relief payments tied to high oil prices, 3.8 trillion won, or 80%, of the 4.8 trillion won budget has been transferred to local governments, and applications have been accepted since April 27, it said. A public transportation fare refund program has also transferred 67.7 billion won, or 35.6%, of its 190.4 billion won budget, with refunds applied starting with April usage. A zero-emission vehicle rollout program has transferred 82.5 billion won, or 55%, of its 150 billion won budget, as major projects are being executed in sequence, it said. Other programs, including movie ticket discounts and export vouchers, are also being implemented as planned, the office said. Separately, execution of the main budget also continued, with fast-track public-sector spending totaling 266.1 trillion won by the end of April, for an execution rate of 40.5%, it said. “Timely execution is the core of the supplementary budget,” Lim said. “Local subsidy projects in particular require close cooperation with local governments, so we will keep checking execution on the ground through the end and deliver results the public can feel.” * This article has been translated by AI. 2026-04-30 15:12:27
  • Scent of soil and legacy at the 40th Icheon ceramic festival
    Scent of soil and legacy at the 40th Icheon ceramic festival SEOUL, April 30 (AJP) - The air at the festival entrance is thick with the scent of wet soil and fresh grass. Families, elderly couples, and travelers with cameras walk together along a 900-meter stretch of workshops. The most significant change to the Icheon ceramic festival this year is the expansion of space. The three villages of Ye’s Park are now connected into a single route. Visitors wander through the entire village as part of a stay-and-experience cultural model. Approximately 300 workshops occupy 120,000 pyeong of land. Artists are present at each site to explain their work. The village has transformed from a marketplace into a living platform for ceramic art. While the Sagimakgol pottery village represents tradition, Ye’s Park showcases modern expansion. In the masters' exhibition hall, renowned artisans stay at their posts to engage with visitors. Guests can watch the entire production process, from spinning the wheel to carving intricate patterns. The space highlights the educational value of the craft. One wall features student works from Korea Ceramic High School alongside pieces by masters with decades of experience. National master Choi In-kyu and Icheon master Yu Yong-cheol previously served as civilian diplomats. They spent years traveling to Canada, France, and the United States to demonstrate Korean pottery. They often used their own funds to promote the craft. The pandemic halted this momentum as travel stopped and international events were canceled. Both masters now highlight the limitations of individual effort. They believe the state must lead systematic promotion to sustain the global reputation of Korean culture. Despite these difficulties, the masters continue to teach. They refuse to charge fees for children who come to handle the clay. They share their knowledge on spinning wheels and reading kiln temperatures without hesitation. "I hope they will think of ceramics just one more time in the future," the masters said. This commitment to the next generation explains why the festival has continued for 40 years. 2026-04-30 15:12:22
  • Kakao Games Bets on New Releases to Rebound, Expanding Globally to PC and Consoles
    Kakao Games Bets on New Releases to Rebound, Expanding Globally to PC and Consoles Kakao Games said it is preparing to shift back to growth by rolling out multiple new titles, with a strategy centered on expanding beyond mobile into PC and console games and a broader global push. The company said on the 30th it will sequentially launch major new games through next year to diversify its business structure and expand overall scale. It plans to strengthen mid- to long-term competitiveness by adding large global-targeted projects and expanding into new genres. In the third quarter, Lionheart Studio is set to release the MMORPG “Odin Q,” a follow-up that expands the “Odin: Valhalla Rising” universe. The game features Unreal Engine 5 graphics and a seamless open world, and is expected to become a next-generation flagship title on the back of the original “Odin’s” steady performance. Around the same time, Supercat is also targeting a release for “Project OQ,” which uses 2.5D pixel art and a distinct setting to offer a different experience from traditional MMORPGs. The company said testing has shown a high level of polish. Kakao Games is also strengthening its PC and console lineup for overseas markets. XLGAMES’ “ArcheAge Chronicle” is scheduled for a global test in June, highlighting console-grade combat presentation and an IP-based world. “Chrono Odyssey,” an AAA action RPG, is targeting release in the first quarter of next year, combining an open world with a time-manipulation system. The company is expanding into additional genres as well. “Dungeon Arise,” an action RPG that blends strategy and progression elements, is scheduled for release in the second quarter and will support both mobile and PC. “God Save Birmingham,” an open-world survival game set in the medieval era, is in development with a fourth-quarter release target. “Project C,” a subculture-based collectible RPG, is also planned to target global fans. Kakao Games said it will continue stable operations for existing live-service titles. Major MMORPGs including “Odin,” “Ares” and “ArcheAge War” have maintained user metrics through regular updates, it said. “Uma Musume Pretty Derby” has also built a loyal fan base through stable service. “Path of Exile 2” is expected to rebound with a major expansion update in May. A Kakao Games official said the company will release a range of new titles with a high level of quality while keeping existing services stable. The official said Kakao Games will strengthen its growth foundation by expanding globally and diversifying genres.* This article has been translated by AI. 2026-04-30 15:04:01
  • Public Agencies Hired 27,000 in 2025 as Debt Ratio Fell 6.4 Points
    Public Agencies Hired 27,000 in 2025 as Debt Ratio Fell 6.4 Points Public agencies hired about 27,000 new employees last year, a sharp increase, while their debt ratio fell, indicating improved financial health. The Finance and Economy Ministry said Wednesday it disclosed management data for 342 public agencies through the public-sector information system ALIO. New hiring totaled about 27,000, up about 7,000 people, or 34.5%, from a year earlier. The rebound followed two straight years of declines, driven in part by expanded staffing in public health care and a wider rail shift system. Hiring aimed at social equity also improved. Youth hiring reached 6.2% of authorized staffing, hiring of people with disabilities was 4.2% of regular employees, and hiring of talent from relocated regions was 40.8% of the mandatory target, all above legal standards. Financial indicators also improved. Public agencies’ debt rose 27.1 trillion won from a year earlier to 768.6 trillion won, but the debt ratio fell 6.4 percentage points to 174.1% as assets grew faster than liabilities. Assets increased 58.1 trillion won to 1,210.3 trillion won, and net profit rose 5.2 trillion won to 13.3 trillion won. Total authorized staffing stood at 429,000, up about 5,000. Welfare and benefits spending rose 5.6% to 864.8 billion won. Work-family balance indicators improved as well. The number of employees taking parental leave rose 15.6% to 29,379, and male parental leave increased 38.7%. Average pay for heads of public agencies rose 4.5% to 199 million won, while average employee pay increased 3.0% to 74 million won.* This article has been translated by AI. 2026-04-30 15:03:07