Journalist

Lee Hugh
  • South Korea to Ease Mutual Finance Rules, Offer Incentives for Inclusive Lending
    South Korea to Ease Mutual Finance Rules, Offer Incentives for Inclusive Lending Interior view of the Financial Services Commission building in Jongno-gu, Seoul. South Korea’s financial authorities are moving to ease regulations on the mutual finance sector to expand inclusive lending, including incentives for cooperatives that increase loans to local communities and working-class borrowers. The Financial Services Commission said it held a kickoff meeting on April 29 for a task force on institutional improvements for mutual finance and discussed measures to strengthen inclusive finance. The meeting was aimed at helping mutual finance institutions reinforce their role as community- and working-class-focused lenders. The government is pursuing reforms after concluding that lending by mutual finance institutions has increasingly shifted away from their founding purpose and toward real estate and loans to nonmembers. According to the FSC, the share of loans by mutual finance cooperatives — including credit unions, agricultural cooperatives, fisheries cooperatives and forestry cooperatives — tied to real estate and construction rose to 23.7% in 2025 from 4.9% in 2015. Over the same period, the share of loans to nonmembers increased to 40.7% from 32.0%. To encourage more inclusive lending, the FSC said it will review incentives such as adjusting the weighting of loans to local residents and working-class borrowers when calculating regulatory ratios, including the nonmember-loan ratio and the loan-to-deposit ratio. It is also considering additional regulatory relief for cooperatives that actively provide inclusive finance. To promote social solidarity finance, the FSC said it will also review legal and institutional changes, including amending the Credit Union Act to allow credit unions to invest in other corporations. The commission said it plans to set up a structure in which central federations support “inclusive cooperatives,” including by offering preferential interest rates, to prevent risks from rising as inclusive lending expands alongside regulatory easing. It also said it will examine steps to strengthen credit assessment, including upgrading internal credit scoring systems, and to reflect inclusive finance performance in management evaluations. Starting with the kickoff meeting, the task force plans to draft a tentative plan in June and, after consultations with relevant agencies, announce a final package in July. Kim Jin-hong, director general of the FSC’s Financial Industry Bureau, said, “Along with soundness, inclusiveness is a key pillar that will drive the mutual finance sector’s restoration of trust,” and urged cooperatives to take an active role in expanding inclusive finance by leveraging their strength in member ties. * This article has been translated by AI. 2026-04-30 08:18:25
  • Trumps hint of troop rollback in Germany likely to worry Seoul, Tokyo
    Trump's hint of troop rollback in Germany likely to worry Seoul, Tokyo SEOUL, April 30 (AJP) - U.S. President Donald Trump on Wednesday said Washington is reviewing a possible reduction of American troops in Germany, a brief one-sentence warning that could have wider repercussions across the Pacific, including in South Korea, where large-scale U.S. military deployments underpin regional security. “The United States is studying and reviewing the possible reduction of troops in Germany, with a determination to be made over the next short period of time,” Trump said on Truth Social. The statement followed an exchange of remarks with German Chancellor Friedrich Merz over the Iran conflict. Merz earlier said Iran was “humiliating” Washington in negotiations, prompting Trump to respond that the German leader “doesn’t know what he’s talking about.” The United States maintains its largest military presence in Europe in Germany, with about 34,547 troops as of 2025, according to available data, although estimates vary depending on rotations. These forces serve as a central hub for U.S. operations across Europe, including logistics and NATO coordination. Prior to Trump’s post, the U.S. State Department said Secretary of State Marco Rubio spoke with German Foreign Minister Johann Wadephul by phone, discussing Iran and the importance of securing freedom of navigation in the Strait of Hormuz. Any discord between Washington and Berlin — a central pillar of NATO — could carry implications beyond Europe, including in the Indo-Pacific. About 28,500 U.S. troops are stationed in South Korea under the bilateral alliance, while roughly 50,000 troops are based in Japan. These forces form a key part of U.S. deterrence posture in the region, particularly in relation to North Korea. Both countries are also linked to the Strait of Hormuz through energy supply chains. Before the recent conflict disrupted the waterway, South Korea depended on the strait for roughly 70 percent of its crude oil and about 20 percent of its natural gas, while Japan relied on it for about 93 percent of its crude imports. Earlier in April, Washington asked several countries, including South Korea and Japan, to consider supporting efforts related to security in the Strait of Hormuz. According to Seoul’s foreign ministry, Rubio spoke with Foreign Minister Cho Hyun on April 16 and referred to cooperation for long-term security in the area. The United States has previously reviewed troop levels in allied countries, including Germany, during earlier phases of the Trump administration. U.S. forces in Germany play a central role in logistics, command operations and support for NATO missions across Europe. No timeline or specific scale for a potential reduction in Germany has been announced. 2026-04-30 08:13:24
  • Fed Holds Rates Again; Statement Fuels Doubts About Cuts This Year
    Fed Holds Rates Again; Statement Fuels Doubts About Cuts This Year The Federal Reserve held its benchmark interest rate steady again, but investors did not treat the move as a simple pause. With the Fed sharpening its language on inflation and flagging overseas risks, markets read the decision as pushing expectations for rate cuts later this year further out. The Fed said on April 29 (local time) that the Federal Open Market Committee kept its target range at 3.5% to 3.75%. The statement said economic activity is expanding at a solid pace, but noted that inflation remains high and that recent global energy price increases have been partly reflected. It also cited the Middle East situation as a factor adding to elevated uncertainty in the economic outlook, signaling greater caution than in March. The bigger story was the split among policymakers. Governor Steven Miran dissented in favor of a 0.25 percentage-point cut. Beth Hammack, Neel Kashkari and Lorie Logan supported holding rates but opposed the statement’s wording, saying it still left the impression that cuts remained possible. The 8-4 vote marked the widest disagreement since October 1992, underscoring that the Fed is less inclined to treat rate cuts as the next automatic step. Chair Jerome Powell said the U.S. economy remains resilient despite the energy price shock. He said consumer spending and business investment are holding up, while housing is weak. On the labor market, Powell said the unemployment rate has held around 4.3% with little change and that job growth has slowed from earlier levels. Powell was more cautious on inflation. He put March’s personal consumption expenditures inflation at 3.5% and core PCE inflation, excluding food and energy, at about 3.2%. With higher oil prices stirring inflation expectations, energy costs — more than tariffs — emerged as a key factor making rate cuts harder, he said. Markets reacted quickly. U.S. Treasury yields rose and expectations for rate cuts this year weakened. In New York trading, the Dow Jones Industrial Average fell 0.57% and the S&P 500 slipped 0.04%. The Nasdaq edged up 0.04%. The two-year Treasury yield rose 10.7 basis points to 3.951%, and the 10-year yield climbed 7.6 basis points to 4.43%. Overall, the statement, the voting pattern and Powell’s remarks were seen as a signal the Fed will keep watching inflation trends for now. The meeting also drew attention as a transition point for the Fed. It was the last FOMC news conference under Powell’s chairmanship. On the same day, the Senate Banking Committee approved Kevin Warsh’s nomination as Fed chair and sent it to the full Senate. Powell said he would remain on the Fed’s board for some time after his term as chair ends.* This article has been translated by AI. 2026-04-30 08:04:51
  • LIV Golf Korea 2026 Names Paradise Hotel Busan as Official Hotel for May Event
    LIV Golf Korea 2026 Names Paradise Hotel Busan as Official Hotel for May Event Paradise Hotel Busan in the Haeundae area has been named the official hotel for the global golf event "LIV Golf Korea 2026." Paradise Hotel Busan said Wednesday it held a signing ceremony for an official partnership with LIV Golf on Tuesday in the Sicily Room of the hotel’s main building. Attendees included Yoon Jin-sang, general manager of Paradise Hotel Busan; Son Seong-an, chairman of S&M Group; Ross Hallett, LIV Golf executive vice president for events; and Martin Kim, team representative of Korean Golf Club and managing director for Korea and East Asia at LIV Golf. LIV Golf, which staged its first tournament in South Korea last year in Incheon, is a golf league that combines top-level competition with entertainment. This year’s event will be held May 28-31 at Asiad Country Club in Gijang, Busan. The 2026 season will also feature a new South Korean team, Korean GC, made up of An Byeong-hun, Danny Lee, Song Young-han and Kim Min-gyu. LIV Golf star Jon Rahm of Spain and defending South Korea champion Bryson DeChambeau of the United States are also set to contend in Busan. As an official partner, Paradise Hotel Busan will provide lodging for players, their families and event officials during the tournament and support lounge catering at the venue. The hotel also plans to operate a dedicated booth in the fan village at Asiad Country Club with hands-on events for visitors. Organizers expect LIV Golf’s entertainment-focused format to boost local tourism. A concert headlined by South Korean DJ and producer Peggy Gou is scheduled after play ends May 30. LIV Golf previously drew more than 100,000 spectators at events in Adelaide and South Africa, and ticket sales for this year’s South Korea tournament are moving faster than last year, the hotel said. Paradise Hotel said it aims to broaden cultural offerings by extending entertainment beyond traditional sports. On April 2, it also released running content set against the Haeundae coastline in collaboration with premium performance brand Vuori. A Paradise Hotel Busan official said the LIV Golf tournament is expected to draw about 60,000 golf tourists, adding that the company will continue expanding opportunities to enjoy cultural content, including sports, as a leading hospitality business in the region.* This article has been translated by AI. 2026-04-30 08:03:20
  • More Big Brokerages Adopt Co-CEO Structures as Businesses Diversify
    More Big Brokerages Adopt Co-CEO Structures as Businesses Diversify More securities firms in South Korea are adopting a co-CEO structure, particularly among large brokerages, as their scale and business lines expand. The shift reflects broader diversification into areas such as comprehensive investment services and investment banking, with companies splitting accountability by division. As of April 30, three firms have adopted co-CEO structures: Mirae Asset Securities, KB Securities and Meritz Securities, according to the financial investment industry. Mirae Asset Securities has operated under a co-CEO system since 2023, with CEO Kim Miseop overseeing global and IB operations and CEO Heo Seonho leading wealth management and retail. The company has since posted broadly balanced growth across major businesses including WM, global, IB and trading. KB Securities, operating with separate CEOs for IB and WM, has produced results strong enough to enter the annual operating profit “1 trillion won club.” Meritz Securities, after adopting a two-top structure led by Jang Wonjae and Kim Jongmin in 2024, increased its contribution to parent Meritz Financial Group from 19% to 28%. More recently, NH Investment & Securities has moved to switch to a co-CEO structure, citing a larger organization and a more complex business structure following its entry into the IMA (comprehensive investment account) business. NH Investment & Securities in March became the third brokerage to receive approval for the IMA business. After the approval, it launched its first product and has been expanding its asset management business in earnest. The company said the co-CEO structure will run key business units under a system of accountable management and strengthen its mid- to long-term growth base by linking growth in client assets with investment finance capabilities. “As the scope of business widens and the scale of assets under management grows, the weight and complexity of management decisions also increase,” a company official said, calling the shift “a strategic choice to raise the company’s competitiveness and accountable management system by another level” as capital markets grow. Industry officials say the spread of co-CEO structures is being driven by the sharp expansion in brokerages’ size and business scope. The securities business has become too complex to manage under a single standard. Investment banking depends on speed in sourcing deals and executing investments, while wealth management focuses on maintaining a client base and managing stable returns. Under a single-CEO structure, managing businesses with different characteristics can lead to delayed decisions or concentrated risk, the industry says. By contrast, a co-CEO structure separates decision-making authority by division to increase speed, while each CEO bears individual responsibility for the area in charge. Officials say the approach can also improve risk controls and management transparency. * This article has been translated by AI. 2026-04-30 08:00:18
  • Singer Seo In-young Says First-Marriage Sofa Cost 25 Million Won
    Singer Seo In-young Says First-Marriage Sofa Cost 25 Million Won Singer Seo In-young reflected on her marriage in a recent YouTube video. A video titled “Seo In-young’s first reveal: cooking doenjang stew all day at home and rolling kimbap (-10kg diet kimbap)” was posted April 29 on her YouTube channel, “Gaegwacheonseon Seo In-young.” After the production team told her a home-tour video drew 20,000 comments, Seo said, “I cried. I was so grateful that I read them all night.” Asked by a subscriber about her sofa, Seo said she bought it at a furniture discount store in Gonjiam. “It was 5 million won, but I paid 3 million won. It’s not dirt cheap,” she said. She added that the one she bought during her first marriage “was almost 25 million won.” The production team responded, “So you spent all your money on that,” and Seo nodded, saying, “That’s right,” drawing laughter. Seo held a wedding ceremony in 2023 with a non-celebrity businessman but divorced in 2024. Seo debuted in 2002 as a member of the girl group Jewelry and later released hit songs through group and solo work, including “One More Time” and “Cinderella.” She also gained popularity for her candid personality on MBC’s 2008 variety show “We Got Married.”* This article has been translated by AI. 2026-04-30 07:57:21
  • KOSPI Closes at Record 6,690.90 for Third Straight Session Despite OpenAI Jitters
    KOSPI Closes at Record 6,690.90 for Third Straight Session Despite OpenAI Jitters ◆Aju Economy Top Stories ▷KOSPI closes at record 6,690.90 for third straight session despite OpenAI concerns -According to the financial investment industry on the 29th, the KOSPI ended at 6,690.90, rewriting its all-time closing high. In the main board market, retail investors bought a net 167.4 billion won, and institutions purchased a net 477.7 billion won. Foreign investors sold a net 613.6 billion won, taking profits. -Overnight, U.S. stocks finished lower, led by declines in technology shares as uncertainty tied to OpenAI weighed on sentiment. Reports said OpenAI, which is preparing for an initial public offering, failed to meet internal targets, dampening risk appetite. -AI-related shares were hit. Nvidia fell 1.6%, while Oracle and CoreWeave, described as key cloud partners of OpenAI, slid 4.1% and 5.8%, respectively. The Philadelphia Semiconductor Index dropped 3.58%. -South Korean stocks also opened under pressure. Samsung Electronics and SK hynix fell 1.13% and 1.23% at the open, and the KOSPI started down 0.33% at 6,619.00. Buying demand strengthened later in the session, pushing the index back into positive territory. ◆Key report ▷Late-session rebound: KOSPI extends record run to three sessions (Yuanta Securities) -On the 29th, the KOSPI rose 0.8% and the Kosdaq gained 0.4%. Both opened slightly lower as concerns about OpenAI’s performance were reflected early. -From mid-session, foreign buying in Samsung Electronics, which ended up 1.8%, helped lift the market. Shares tied to the AI and semiconductor value chain, including power infrastructure and energy storage systems, also posted solid gains, driving the turnaround and another record close for a third straight session. -Strength in defense and refining and chemical shares also supported the broader market. The report said increased oil-price volatility after the UAE announced it would leave OPEC did not appear to have a major impact on equities. -Investors were shifting attention to the Federal Open Market Committee’s policy rate decision due the next day and earnings releases from major U.S. tech companies. ◆Major filings after the close (29th) ▷OrganoidScience: 6 billion won capital increase via third-party allotment ▷DearU: Additional 14.7 billion won purchase of shares in U.S. unit; stake to 100% ▷DA Technology: 2.7 billion won capital increase via third-party allotment ▷SK IE Technology: 86.3 billion won investment in China separator subsidiary ▷HS Hyosung: Q1 operating profit 12.5 billion won, up 3.8% from a year earlier ▷HYBE: Q1 operating loss 196.6 billion won, turning to a loss ◆Fund flows (as of the 28th, excluding ETFs) ▷Domestic equity funds: +4.3 billion won ▷Overseas equity funds: -5.1 billion won ◆Key events today (30th) ▷South Korea: Retail sales (March), industrial production (March) ▷Japan: Industrial production (March) ▷China: Manufacturing PMI (April), services PMI (April), Caixin manufacturing PMI (April) ▷Germany: Retail sales (March) ▷Eurozone: Consumer price index (April), GDP growth (Q1) ▷United States: GDP growth (Q1), personal consumption expenditures and income (March), PCE price index (March)* This article has been translated by AI. 2026-04-30 07:45:22
  • Fed Holds Key Rate Steady for Third Straight Meeting, Citing Still-High Inflation
    Fed Holds Key Rate Steady for Third Straight Meeting, Citing Still-High Inflation The Federal Reserve on April 29 (local time) held its benchmark interest rate steady at 3.50% to 3.75%, marking its third consecutive decision to keep rates unchanged. According to Yonhap News Agency, the decision was made on the second day of the Federal Open Market Committee’s regular meeting. The Fed cut rates three times in a row last year — in September, October and December — but has kept them on hold three straight times this year, following decisions in January and March. With the latest move, the interest-rate gap between South Korea (2.50%) and the United States remained 1.25 percentage points at the upper end. Explaining the decision, the Fed said, “Inflation remains elevated, which partly reflects recent increases in global energy prices,” and added that shifts in the Middle East situation are creating “high uncertainty” for the economic outlook. It said recent indicators suggest economic activity is expanding at a solid pace. “Job gains have moderated on average,” it said, adding that the unemployment rate has been little changed in recent months. The Fed said the committee aims over the longer run to achieve maximum employment and 2% inflation, and that it will closely assess economic data, changes in the outlook and risk factors in future rate decisions. It also said it is prepared to adjust the stance of monetary policy as appropriate if risks emerge that could hinder its goals — a remark some interpreted as signaling the possibility of future rate cuts.* This article has been translated by AI. 2026-04-30 06:07:24
  • GM Korea Runs Changwon Plant at 95% Capacity, Expands Role as Export Hub
    GM Korea Runs Changwon Plant at 95% Capacity, Expands Role as Export Hub GM Korea is running its Changwon plant near full capacity as it strengthens its role as a global export base. After facing recurring speculation about a possible exit from the Korean market, the company has sought to counter that narrative with large-scale investment and by repositioning Changwon as a key hub for small sport utility vehicles. Strong exports, it says, are helping demonstrate its competitiveness within GM and support the sustainability of its Korea operations. Asif Khatri, GM vice president of manufacturing for international operations, said at an April 28 media briefing at the Changwon plant that it is “our benchmark facility.” He said combined cumulative production of the Chevrolet Trax Crossover and Trailblazer has surpassed 2 million units. The Trax Crossover and Trailblazer are small SUVs developed and produced in Korea, from planning and design to performance development and manufacturing, the company said. The Trax Crossover has been produced at the Changwon plant since 2023, while the Trailblazer has been produced in earnest at the Bupyeong plant since 2020. Asked about persistent rumors that GM could withdraw from Korea, Khatri said the company aims to dispel the claims through actions rather than words. “The rumors related to withdrawal are not true,” he said, adding that Korean plants are operating at maximum levels and “we need to build more.” He said the focus is on keeping plants running and working with the union to maximize output. GM Korea operates three production plants. It also has domestic facilities that produce engines and a six-speed automatic transmission (GF6), and the company said its bases are running near maximum capacity. The Changwon plant’s utilization rate is 95%, and it can produce up to 280,000 vehicles a year. Lee Dong-woo, vice president of manufacturing at GM Korea, said the company believes the small SUV segment could be among the last internal-combustion categories to remain viable and that customers continue to demand it. “We are in a situation where we are concerned because we cannot meet demand,” he said. Bang Seon-il, vice president of purchasing at GM Korea, said the vehicles are popular enough that they are exported worldwide in less than two to three days after production. On the fact that Korean plants currently produce only internal-combustion vehicles, the company said it is prioritizing output of small SUVs already proven in global markets rather than rushing electrification. Khatri said demand for vehicles produced in Korea is strong enough that the company cannot meet it, and that a dedicated team for new-energy vehicles — including hybrids (HEV), plug-in hybrids (PHEV) and electric vehicles (EV) — is reviewing potential opportunities. * This article has been translated by AI. 2026-04-30 06:06:15
  • Who Owns Samsung Electronics? A Debate Rekindled by a Union Strike Threat
    Who Owns Samsung Electronics? A Debate Rekindled by a Union Strike Threat A corporation is often described as one of capitalism’s most consequential inventions. The first modern joint-stock company emerged in 1602: the Dutch East India Co., a spearhead of the colonial era. Two pillars defined the model — limited liability, which caps responsibility at the amount invested, and dividends, a mechanism for sharing profits. With the rise of stock exchanges, corporations flourished. Today, companies such as Nvidia and Apple have market values that exceed the GDP of many countries. In South Korea’s less-than-century-long history of capitalism, corporations have also been central to modernization and industrialization. Many entrepreneurs raised seed money through corporate structures and built companies that way. Samsung Electronics stands as the best-known example, growing in about 50 years into the country’s largest company, with a market capitalization of about 1,300 trillion won. As corporations and shareholder capitalism developed, one question kept resurfacing: Who owns the company? In the United States, the answer was settled long ago — shareholders are the owners. Under that model, a company’s goal is to maximize shareholder value, and executives, including the CEO, act as agents for shareholders. Economist Milton Friedman’s line that “the social responsibility of business is to increase its profits” became a key intellectual foundation. In South Korea, however, ownership has often been treated as shared. For years, the “owner” of a company was widely equated with the founding family. Small shareholders were often treated as owners only during the annual shareholders meeting season in March. At times, labor unions have stepped forward as if they were owners. The government has also tried to play that role. A prominent example was the “excess profit-sharing” proposal raised in 2011 by Chung Un-chan, head of the Commission for Shared Growth and a former Seoul National University president. The idea was to have large conglomerates that earned big profits share some of them with partner firms. Then-Samsung Chairman Lee Kun-hee pushed back sharply, calling it “something you don’t even learn in economics,” fueling a broader debate. Recent friction surrounding Samsung Electronics has revived the same argument. The company’s union has warned it will launch a general strike in May. If it happens, it would be the first strike in Samsung Electronics’ history. The union says employees should receive a larger share of the company’s performance gains. Some minority shareholders have begun organizing in response. A group of Samsung Electronics shareholders held a rally opposing a strike, arguing that large performance bonuses could reduce shareholder returns such as dividends. The government has also weighed in. Industry and Trade Minister Kim Jung-kwan said, “It is worth thinking about whether Samsung Electronics’ performance is truly the result only of management and workers.” While framed as concern about a strike, the remark could also be read as suggesting the company’s success includes contributions from the state, society and partner firms. With multiple groups seeking to assert a claim over the company, Samsung’s management faces competing demands. The semiconductor business posted losses as recently as two years ago. Samsung has since climbed onto an AI-driven semiconductor “super cycle,” but conditions can change quickly. The company needs a strategy that pours large sums into facilities and research and development while also building reserves. Yet minority shareholders are pressing for bigger dividends, the union is demanding a larger share of gains, and there is also quiet pressure from the government to expand social responsibilities such as jobs and corporate giving. So who owns Samsung Electronics? Is it Samsung Life Insurance, the company’s largest shareholder, or Chairman Lee Jae-yong? Is it the workforce of 128,200 employees? Or the 4.2 million individual shareholders recognized under the law? What about a government that changes every five years? One point is clear: the “true owner” should be whoever bears responsibility for Samsung’s future and sustainable growth. A union focused only on immediate distribution, or short-term investors chasing capital gains, cannot reasonably be called the owner. * This article has been translated by AI. 2026-04-30 06:05:09