Journalist

Lee Hugh
  • South Korea Weighs Second Extra Budget as Higher Rates Raise Debt-Funding Concerns
    South Korea Weighs Second Extra Budget as Higher Rates Raise Debt-Funding Concerns With high oil prices and inflation pressures tied to the Middle East still unresolved, lawmakers are again raising the idea of a second supplementary budget. Unlike the first extra budget, which relied on higher-than-expected tax revenue, a second package would likely require issuing deficit-financing government bonds, adding to upward pressure on interest rates. The first supplementary budget used 25 trillion won in excess tax revenue, allowing spending to expand without issuing new bonds. Of that, 1 trillion won was allocated to repay government debt. A second supplementary budget would be different. With limited room in tax revenue, much of the funding under discussion would have to come from issuing deficit bonds. Because bond yields typically move inversely to bond prices, a larger supply of government bonds can push prices down and yields up. With U.S. Treasury yields already elevated, a rise in domestic deficit-bond issuance could further jolt South Korea’s bond-market rates, which some analysts say are already near a threshold. Analysts warn of a potential vicious cycle: If fiscal expansion aimed at supporting growth also drives market rates higher, the economy could slow, increasing the burden on public finances. The Korea Capital Market Institute said an increase in government bond supply driven by expansionary fiscal policy is a main factor weakening the market’s capacity to absorb issuance and increasing rate volatility. Government bond yields affect funding costs across the economy and play a major role in pricing risk assets such as stocks and real estate. A sharp rise in rates could spill over into the real economy and financial markets, including wider corporate-bond credit spreads and higher household loan rates at banks, it said. A Korea Development Institute study found that for every 1 trillion won increase in Treasury bond issuance, the Treasury yield rises by 0.025 to 0.029 percentage points. It also found that for every 10% increase in government debt, bond yields rise by 0.43 percentage points. Whether rates rise further is expected to depend on how the Middle East war develops and whether a second supplementary budget is pursued. If the situation in which international oil prices do not fall below $100 a barrel persists, the government is more likely to press ahead with a second extra budget to support the economy. In that process, analysts say coordination between fiscal authorities and the Bank of Korea will be needed to avoid stoking rates. If the roles of fiscal and monetary policy fall out of balance, the costs could be borne most heavily by vulnerable groups. Experts say policymakers should be cautious about a second supplementary budget to avoid fueling interest rates. They also urge the government to craft policies based on longer-term economic prospects rather than focusing only on short-term relief. Yeom Myeong-bae, a professor of economics at Chungnam National University, said government policy consists of fiscal policy that spends money and financial policy that manages the money supply. “If the two are out of sync, the damage will be greater for vulnerable groups,” Yeom said. “When fiscal spending is financed with debt, in the short term the current generation suffers through things like higher prices, and it also creates debt that future generations must repay. Policy should be run with a long-term perspective.”* This article has been translated by AI. 2026-04-28 06:06:34
  • Surging Treasury Yields Raise Fears of Uneven Blow to Vulnerable Borrowers, Weak Firms
    Surging Treasury Yields Raise Fears of Uneven Blow to Vulnerable Borrowers, Weak Firms A renewed surge in South Korean Treasury yields is fueling concerns that the hit will fall hardest on vulnerable borrowers and financially weak companies. With household loans still heavily tied to floating rates, higher rates could quickly raise interest burdens, curb spending and weigh on domestic demand, analysts said. According to the financial sector on April 27, Treasury yields have continued to rise as markets price in inflation pressure tied to Middle East geopolitical risks and expectations that global monetary tightening will last longer. Because Treasury yields serve as a benchmark for market rates, moves typically feed into corporate bonds, financial bonds and loan rates within days to weeks. Corporate bond yields and bank lending rates are structured to track Treasury yields, meaning higher long-term rates can spread quickly across the financial system. In that transmission process, the burden tends to concentrate on weaker borrowers and marginal firms. Since funding costs are Treasury yields plus a credit spread, the lower the credit quality, the larger the increase in actual borrowing costs. Large companies, with greater access to direct financing such as bond issuance and stronger cash positions, generally have more room to respond early in a rate upswing. Small and midsize firms and marginal companies, however, rely more on bank loans and often have weaker credit, making it more likely that rising rates will tighten funding conditions. If refinancing becomes difficult or new bond issuance costs jump, short-term liquidity pressure can intensify and raise default risks. Households are also unlikely to escape the impact. With a high share of floating-rate household debt, increases in Treasury and bank bond yields can lift banks’ funding costs and flow through to lending rates via benchmarks such as COFIX, after a relatively short lag. That can quickly raise debt-service burdens, especially for vulnerable borrowers with limited repayment capacity or heavy exposure to floating rates. Signs of strain are already appearing in financial indicators. The delinquency rate on won-denominated loans at domestic banks stood at 0.62% at the end of February, up 0.05 percentage points from 0.56% a month earlier, the highest in nine months. For February readings, it was the highest in 10 years. A similar trend is emerging outside the banking sector. As of the end of March, card loan balances at nine major credit card companies totaled 42.9942 trillion won, rising for a third straight month to a record high. The increase points to a balloon effect from tighter bank lending rules and a shift in funding demand toward higher-rate nonbank lenders. Experts warned that if Treasury yields rise beyond a certain level, the impact could spread from higher interest burdens to broader financial stability risks. If distress grows among vulnerable borrowers and marginal firms, it could weaken financial institutions’ asset quality and lead to tighter credit conditions, they said, calling for preemptive steps. Kim Sang-bong, a professor of economics at Hansung University, said, “When bond yields rise, the interest burden on floating-rate loans inevitably increases.” He added, “Because prices are expected to keep rising, Treasury yields will also keep rising.” Kim said restructuring is needed for marginal firms and that policies should also aim to curb growth in household debt. A key concern is that the rate environment may not ease quickly. With the U.S. Federal Reserve maintaining a tightening stance and oil prices rising due to Middle East developments, inflation pressure is persisting. As a result, upward pressure on rates, led by long-term yields, may continue for some time. Markets are watching next month’s Monetary Policy Board meeting, the first to be chaired by newly appointed Bank of Korea Gov. Shin Hyun-song. The focus has sharpened after first-quarter gross domestic product posted a surprise increase above expectations, strengthening the case for monetary tightening. During his confirmation hearing on the 15th, when he was still a nominee, Shin said, “In the current situation, I will put more weight on prices, especially in an economy like Korea that is so sensitive to oil prices, where the oil shock has a considerable impact on inflation.”* This article has been translated by AI. 2026-04-28 06:05:14
  • Bank of Korea: April Business Sentiment Index Rises 0.8 Points as Inventories Shrink
    Bank of Korea: April Business Sentiment Index Rises 0.8 Points as Inventories Shrink Business sentiment, which had been dampened by the war in the Middle East, rebounded in April. The headline improvement, however, largely reflected inventory drawdowns caused by supply disruptions. According to the Bank of Korea's April business survey results and economic sentiment index released on the 28th, the all-industry Composite Business Sentiment Index, or CBSI, rose 0.8 points from the previous month to 94.9 as both manufacturing and nonmanufacturing improved. The central bank said sentiment was supported by higher manufacturing sales and new orders and smaller finished-goods inventories, despite rising raw material prices and production disruptions in some industries tied to the Middle East war. The CBSI is a sentiment gauge calculated from key Business Survey Index components — five for manufacturing and four for nonmanufacturing. A reading above the long-term average of 100, based on data from January 2003 to December 2025, indicates optimism; below 100 indicates pessimism. Lee Heung-hoo, head of the BOK's economic sentiment survey team, said the biggest driver of the April increase was a drop in product inventories as firms met demand by using existing stockpiles amid disruptions in raw material supplies. He added that manufacturing conditions also improved somewhat on continued strong exports and higher selling prices. Lee said the central bank recalculated sentiment excluding the finished-goods inventory component to account for the unusual supply factor, and found that April conditions and the May outlook edged down. He noted the CBSI has been on an upward trend since March 2025 but remains below 100. By sector, the manufacturing CBSI rose 2.0 points to 99.1, led by finished-goods inventories (+2.3 points) and business conditions (+0.7). The nonmanufacturing CBSI inched up 0.1 point to 92.1 as sales (+0.6) offset a decline in profitability (-0.5). For May, the CBSI outlook was 98.0 for manufacturing, up 2.1 points, while nonmanufacturing was unchanged at 91.2. In detailed BSI results, manufacturing improved in chemicals and chemical products, primary metals and fabricated metal products. In nonmanufacturing, wholesale and retail fell, while construction and information and communications rose. The April Economic Sentiment Index, or ESI — which incorporates the BSI and the Consumer Sentiment Index — fell 2.3 points from the previous month to 91.7. The BOK cited weaker readings for the manufacturing outlook on funding conditions (-0.6 points) and for household income and consumer spending outlooks, down 1.0 point and 0.8 point, respectively. * This article has been translated by AI. 2026-04-28 06:04:05
  • Rubio: U.S. Won’t Accept Iran Controlling Strait of Hormuz or Having Nuclear Weapons
    Rubio: U.S. Won’t Accept Iran Controlling Strait of Hormuz or Having Nuclear Weapons U.S. Secretary of State Marco Rubio said Sunday that Iran is still seeking to maintain control over the Strait of Hormuz, calling that unacceptable for the United States. He also reaffirmed that Iran cannot be allowed to possess nuclear weapons. His remarks, made as talks on ending the war with Iran face difficulties, were widely seen as a clear statement of U.S. red lines. According to Yonhap News Agency, Rubio said in an interview with Fox News that if Iran’s idea of keeping the strait “open” means, “Yes, it’s open, but you have to coordinate with Iran, get our permission, and if not we’ll attack you, and you have to pay a toll,” then “that’s not opening the strait.” “The Strait of Hormuz is an international waterway,” Rubio said, adding that the United States cannot accept Iran “normalizing” a system in which it decides who can use the waterway and how much they must pay to do so. Earlier, U.S. political news outlet Axios reported that Iran, through mediators, had sent the United States a proposal to first open the Strait of Hormuz and declare an end to the war, then continue nuclear talks later. Rubio’s comments appeared to argue that what Iran calls opening the strait would amount to controlled passage rather than free navigation. Rubio also said Iran seeks to threaten the world with nuclear weapons, “the way it does now with oil,” and to hold the world hostage to get what it wants. “That is unacceptable,” he said. 2026-04-28 06:03:16
  • Nearly 400,000 Leave South Korea’s Housing Subscription Accounts as Seoul Cutoffs Hit Perfect Scores
    Nearly 400,000 Leave South Korea’s Housing Subscription Accounts as Seoul Cutoffs Hit Perfect Scores The point-based apartment subscription system, designed to protect end users, is increasingly criticized as favoring a small group of asset-rich applicants. With presale prices rising on surging construction costs and strict lending rules limiting financing, some applicants with high scores are giving up because they cannot raise the money. Others say winning has become unrealistic without both cash and a large number of dependents. As a result, more would-be buyers are either crowding into no-rank lotteries or leaving the subscription market altogether. According to Cheongyak Home data released on the 26th, the number of housing subscription account holders fell from 26,438,085 to 26,051,929 over the past year (March 2025 to March 2026), a drop of more than 380,000. Monthly declines were modest in the first half of last year, ranging from 0.03% to 0.09%, but the pace accelerated from October. The decline peaked in December at 0.305% from the previous month, and this year the monthly drop has continued at nearly 0.2%. Over the past 14 months, the cumulative net decrease totaled about 400,000. Critics link the exodus to unusually high barriers, including complexes where the cutoff has reached a perfect score. In a first-round subscription held on the 9th for “Acro de Seocho” in Seoul’s Seocho district, the cutoff for the 59-square-meter Type C unit was the maximum 84 points, the first such case in Seoul’s private apartment presale history. Competition for that type hit 1,099.1 to 1, the highest on record. But general sales accounted for only 4.8% of the project, or 56 units, prompting assessments that the market has become a contest for a tiny group of wealthy applicants with perfect-score accounts. As regular subscriptions have effectively narrowed, demand has surged into no-rank subscriptions held just days later. On the 13th, 106,093 people applied for two no-rank units at “Gangdong Heritage Xi,” a competition rate of about 53,000 to 1. The units were offered at about 730 million won, the 2022 presale price, allowing an estimated market-price gain of about 1 billion won. Observers say the lottery system — with odds of about 1 in 50,000 — has become the only remaining channel for unsubsidized, score-disadvantaged households without homes. High cutoffs are also being driven by large-family, perfect-score accounts winning smaller units at price-capped projects in the Gangnam area. At “Otiere Banpo,” the minimum winning score across all unit types was 69 points, with many types in the low-to-mid 70s — levels seen as requiring a perfect-score account typically associated with families of five or more. This score inflation is spreading beyond Gangnam across Seoul. The maximum score a four-person household can receive after more than 15 years without owning a home — 69 points — has effectively become the minimum needed to win. Cutoffs have risen above 69 points not only in Jamsil and Banpo but also in major areas such as “The Fine Yeonhui” in Seodaemun district and “Ichon Rael” in Yongsan district. Even four-person families that have remained without a home for 15 years are finding it difficult to win newly built apartments in Seoul, intensifying debate over whether the system still works as intended. Cash requirements are also filtering out end users. For example, “Otiere Banpo,” which began taking subscriptions on the 13th, required winners to raise more than 1.1 billion won in cash within three months because it is a post-completion sale. The requirement led even some top-score applicants with 84 points to forgo applying due to insufficient funds. Park Ji-min, head of the Wol-yong Subscription Research Institute, said the current system remains centered on older, large-family household structures and “fails to serve as a housing ladder at all” for the rapidly growing number of one- and two-person households. Park urged an overhaul that increases the weight of points for time without homeownership or length of subscription account membership, so that smaller households that have remained without a home can receive meaningful advantages. * This article has been translated by AI. 2026-04-28 05:09:37
  • Takaichi’s Fast-Track Leadership Meets Resistance in Japan’s Political System
    Takaichi’s Fast-Track Leadership Meets Resistance in Japan’s Political System What has the new political approach dubbed the “Takaichi style” produced in practice? There are clear cases where Takaichi’s top-down, fast-track decision-making has delivered results. A leading example was her immediate decision, soon after taking office, to abolish an additional gasoline tax that the ruling and opposition parties had agreed to end under the previous administration but repeatedly delayed. For many Japanese, it was a moment that made politics feel like it was moving again. But the approach has also brought setbacks. One prominent case was her November response in the Diet about a “survival-threatening situation in the event of a Taiwan contingency.” The Yomiuri Shimbun quoted a government official as saying the remark was an ad-lib not included in prepared materials, adding that “this wouldn’t have happened if there had been even a face-to-face review of answers with bureaucrats.” The official pointed to the abolition of the prime minister’s answer-prep sessions — a core element of the Takaichi style — as a direct cause. Even after voices within the Liberal Democratic Party urged her to contain the fallout, Takaichi did not retract the comment. The result, the article said, was that Chinese visitors to Japan fell to about half, and relations with China have continued to worsen. The pattern is not new: the article noted that when she served as internal affairs minister 10 years ago, controversy also grew after she said broadcasters that repeatedly violated political fairness could be ordered off the air, and she did not back down then either. Takaichi’s preference for refusing dinner gatherings and relying on documents has also strained ties with the party and the bureaucracy. In one example, LDP officials who visited to coordinate wording for the party’s 70th anniversary address said they were sent off after about 10 minutes, having heard only Takaichi’s brief instruction: “Please fix it like this.” During deliberations on the 2026 budget, one senior LDP figure said he had spoken directly with the prime minister about the budget only once. That communication gap has spilled into governance. Takaichi insisted the budget bill be passed within the fiscal year, but after pushing ahead without sufficient coordination with the party, it failed to clear the House of Councillors. The Nikkei said reliance on “the power of numbers” in running the Diet widened the distance between the prime minister’s office and the party and parliament. Relations with the bureaucracy have been similarly tense. Consumption tax cuts have long been opposed by the Finance Ministry over concerns about reduced revenue, and past prime ministers have typically adjusted their rhetoric after behind-the-scenes coordination. But in a February budget committee session, Takaichi said “some ministry” was spreading obstructive information in connection with discussions of a consumption tax cut — a remark the article described as an effective public rebuke of the Finance Ministry. Finance Ministry officials reacted with shock, asking whether she viewed them as resistance to the administration. A senior government official was quoted as saying that to build a long-running administration, the Finance Ministry, which controls the budget, must be made an ally, and that turning the entire bureaucracy into one team remains a task. Despite the side effects, the article said Takaichi has shown no sign of changing course. Instead, she has moved to tighten her grip within the party through personnel decisions. She sought to replace an LDP leader in the House of Councillors over responsibility for the failed budget passage and has repeatedly excluded lawmakers who challenged her from key posts. The Yomiuri said pressure is spreading within the party that even veterans will be treated coldly if they do not follow the prime minister’s line. The article said there is little open criticism inside the party. Rather, after factions were dissolved and groups reorganized, they are competing to draw closer to Takaichi. Her camp is said to be envisioning an uncontested re-election as LDP president in September next year, with no clear rival in sight. If she wins again and also prevails in the 2028 House of Councillors election, the article said, the possibility of long-term rule has been raised. Whether the “Takaichi style” becomes a new standard in Japanese politics or is forced to adjust under real-world constraints remains to be seen. * This article has been translated by AI. 2026-04-28 05:08:21
  • Japan’s Takaiichi reshapes prime minister’s routine with fewer dinners and more direct messaging
    Japan’s Takaiichi reshapes prime minister’s routine with fewer dinners and more direct messaging Prime Minister Sanae Takaiichi marked six months in office on the 21st, maintaining approval ratings above 60% in polls as Japan’s political routines shift quietly but noticeably. At the center is her governing style, often described as the “Takaiichi way.” At midday on the 10th, LDP Vice President Taro Aso, Secretary-General Shunichi Suzuki and Acting Secretary-General Koichi Hagiuda gathered at the prime minister’s office for a lunch Takaiichi arranged. The menu was a set meal of grilled fish. It was their first such meal in four months. Afterward, Aso told Takaiichi, “Even if it’s not dinner, let’s eat like this again. Why not meet lightly over lunch?” Yomiuri Shimbun reported the remark as a kind of urging, reflecting concern she could become isolated. For decades, Japanese prime ministers followed a familiar rhythm: work by day, dinners by night. Meals with business leaders, politicians and bureaucrats were used to trade information and build ties, giving rise to sayings such as “politics moves at night.” Takaiichi has largely broken with that pattern. Around 6 p.m., she typically returns to the official residence next to the prime minister’s office. She eats dinner with her husband, does household chores such as laundry, and reads Diet briefing papers and policy materials. Aides say she goes back with documents in hand, saying she must study for the next day. Asahi Shimbun calculated her average return time over six months at 7:21 p.m., with only nine outside dinners or informal gatherings. She also generally eats lunch alone and often skips meals, reportedly to secure time by herself. She has joked, according to Yomiuri, “If I eat with others, I can’t touch up my lipstick.” The changes extend beyond meals. Takaiichi ended the customary “advance review” of answers, in which prime ministers receive in-person briefings from secretaries and officials before Diet questioning. Instead, she reads materials herself and submits questions in writing when something is unclear. She also edits draft answers by hand and sends revisions by fax. She has sharply reduced the number of meetings she chairs, and in ministerial meetings she keeps remarks to a minimum, relying more on written submissions. Yomiuri described this as the “Takaiichi way”: keeping distance from Nagatacho’s traditional behind-the-scenes consensus-building culture and emphasizing rationality. Another hallmark is direct communication on social media. On the night of the 7th, Takaiichi posted on X about a phone call with the president of the United Arab Emirates within 10 minutes of the call ending. The government’s official announcement came about 30 minutes later. When concerns about naphtha supplies spread on social media, she posted directly to say it was a “misunderstanding.” Takaiichi has about 2.86 million followers on X, far more than former Prime Minister Shigeru Ishiba (520,000) and former Prime Minister Fumio Kishida (810,000). At the same time, she has held fewer news conferences. Over six months, she held eight formal news conferences. Ishiba and Kishida held news conferences each time budgets passed, but Takaiichi has favored brief, informal question-and-answer sessions with reporters gathered around her rather than formal news conferences. Asahi noted that unlike news conferences, where reporters can press with follow-up questions, social media is “one-way,” making it harder to probe what a leader truly means. Her communication style aligns with a more self-directed decision-making approach. In January, in the process that led to a decision to dissolve the House of Representatives, she did not consult in advance even with Aso, described as her biggest political backer. Soon after taking office, she also moved quickly to abolish an additional gasoline tax that the ruling and opposition parties had agreed on but the previous administration had delayed. Critics called the moves “arbitrary,” but both decisions ultimately coincided with high approval ratings. The contrast has been drawn with Ishiba, who, leading a minority ruling party, promoted “deliberation” but was criticized for indecision, while Takaiichi has been credited with “decisive politics.” Asahi, citing a source at the prime minister’s office, attributed the roots of her style to resentment from having long been treated as a “non-mainstream” figure within the LDP. First elected in 1993 as an independent, Takaiichi built her career without a local political machine or a political dynasty. The paper said her pride in forging a path in an era when female politicians were rare underpins her distance from established political customs. Takaiichi herself addressed the point in the Diet in February, saying calmly, “As you all know, I’m a woman who isn’t good at these dinner gatherings.” Rationality over custom, decisions over coordination, documents over face time: the “Takaiichi way” has presented a new model of prime minister. What it ultimately produces for Japanese politics remains the next test.* This article has been translated by AI. 2026-04-28 05:07:22
  • Honor’s ‘Alpha Strategy’ Bets on AI Robots as Smartphone Growth Slows
    Honor’s ‘Alpha Strategy’ Bets on AI Robots as Smartphone Growth Slows Honor’s move into humanoid robots reflects several pressures, led by a maturing smartphone market and the need for new growth. China’s smartphone market is widely seen as saturated, limiting room for expansion in Honor’s core business. Honor’s share in China has declined over the past five years. Counterpoint Research said Honor’s market share stood at 13.4% at the end of last year, below Huawei at 16.4%, Apple at 16.2%, Vivo at 16.2%, Xiaomi at 15.4% and Oppo at 15.2%, pushing Honor out of the top five. With an initial public offering in the works, Honor has been seeking a new engine to offset slowing growth. In March last year, Honor CEO Li Jian announced the company’s “Alpha strategy,” saying it would “transform into an AI smart device company centered on robots,” marking a full push into AI. In March this year, Honor presented what it called the world’s first “robot phone” at Mobile World Congress in Barcelona, Spain, as the first product tied to the Alpha strategy. The phone features a protruding robotic arm on top fitted with a 20-megapixel camera designed to rotate and shoot in 360 degrees. Market reaction, however, fell short of expectations. Some experts said the product lacked polish, while consumers cited drawbacks including reduced portability and an awkward grip. That has fueled doubts that investment in the robot phone will translate into purchases. Against that backdrop, Honor’s sweep of the top spot in this year’s humanoid robot half-marathon has been viewed as a meaningful result. Chinese IT outlet Huxiu said the win would have a positive effect on Honor’s corporate value, adding that it could help boost capital-market sentiment, roadshow promotion and expectations for a “second growth curve.”* This article has been translated by AI. 2026-04-28 05:06:34
  • Honor’s Humanoid Robot Wins Beijing Half Marathon, Beating Unitree
    Honor’s Humanoid Robot Wins Beijing Half Marathon, Beating Unitree 50 minutes, 26 seconds. That was the winning time at this year’s humanoid robot half marathon in Beijing’s Yizhuang area, cutting last year’s top mark of 2:40:42 to about one-third. The time also beat the human half-marathon world record of 57:20. The winner was not last year’s champion, the Beijing Humanoid Robot Innovation Center’s “Tiangong,” nor Unitree’s “H1.” It was “Sandian,” a humanoid robot from Chinese smartphone maker Honor, competing for the first time. Six teams entered the race using Sandian robots. Three competed in fully autonomous mode and three used remote control. All six finished and took places 1 through 6, a result seen as evidence that Sandian is more than a prototype and has demonstrated production potential, technical stability and consistent manufacturing. Chinese IT outlet eet-china called Sandian “a vanguard that symbolically shows Honor’s technological strength.” Honor’s other humanoid robot, “Yuanqizai,” also competed and won a “best walking” award for what organizers described as the most humanlike, stable gait. The sweep is being viewed as a milestone in Honor’s push to move beyond smartphones and position itself as an artificial intelligence device-ecosystem company. ‘HUAWEI DNA’...From smartphones to an AI ecosystem company Finishing a 21-kilometer half marathon is difficult for humanoid robots, requiring stable walking along with battery endurance, heat management, mechanical durability, autonomous driving and algorithms. Last year, only about 20 teams entered and just six robots finished. This year, about 100 teams competed and nearly half finished. While most entries last year were remotely controlled, about 40% chose autonomous operation this year. The key to Honor’s first-year success, the report said, was smartphone engineering rooted in what it called “Huawei DNA.” Honor began in 2011 as a premium smartphone brand under Huawei and, during its 2020 separation from Huawei amid U.S. sanctions, absorbed many of Huawei’s core engineers and technical staff. Honor CEO Li Jian said, “Core technologies accumulated in the mobile phone field are very helpful for robot research and development.” One example is liquid cooling. Honor adapted its smartphone liquid-cooling technology for humanoid robots. Sandian carries a self-developed liquid-cooling unit in a backpack. Piping designed like a human capillary network runs into the motor, circulating about 4 liters of coolant per minute. The system is intended to remove heat quickly during high-speed running, prevent motor overheating and maintain stable output. Smartphone know-how, transplanted into a humanoid robot Power is another key factor. Sandian uses an integrated joint module capable of up to 400 newton-meters of torque, aiming to deliver strong force in compact joints while sustaining stable movement. The report said the precision miniaturization reflects know-how built from foldable smartphone hinge and internal-structure design. Software is also central. Honor combined its motion-control algorithms with multiple sensors so the robot can recognize complex surroundings in real time and automatically adjust its center of gravity and gait. The ability to process large volumes of data quickly to control movement was described as an extension of smartphone hardware-software integration. Sandian was designed from the outset for marathon running. It is 169 centimeters tall and weighs 45 kilograms, with legs measuring 95 centimeters, proportions the report compared to elite track athletes. Engineers removed nonessential structures to reduce weight, omitted hand joints, narrowed the arms, and used a foot design intended to minimize ground contact, reduce impact and efficiently transfer propulsion on a firm track. Supply chain helps lower barriers, but commercialization still needs proof China’s increasingly mature humanoid-robot supply chain has also lowered technical barriers, the report said, and open-source algorithm ecosystems have sped development. Manufacturing costs are falling quickly. According to the Gaogong Robot Industry Research Institute, the price of a humanoid robot in the first quarter was 100,000 yuan (about 21.6 million won), down 33% from a year earlier. Honor in March last year announced its “Alpha Strategy,” declaring a shift toward an AI smart-device company with robots as a core pillar. About a year later, it has demonstrated a humanoid robot capable of finishing a half marathon. Still, because Sandian is optimized for marathon performance, some observers said additional verification is needed before it can be used broadly across varied environments. They said autonomous decision-making must be strengthened through repeated learning and data accumulation in real-world settings. In that respect, the report said, a gap remains with established companies such as Unitree and Galbot, which have built up long-term data across diverse scenarios.* This article has been translated by AI. 2026-04-28 05:05:28
  • South Korea Lawmaker Proposes Housing Bond Bids to Curb Lottery Apartment Profits
    South Korea Lawmaker Proposes Housing Bond Bids to Curb 'Lottery' Apartment Profits South Korea’s home subscription system, designed to support housing stability for ordinary people, has drawn criticism for enabling outsized gains that have fueled the nickname “lottery subscriptions.” Politicians are now moving to create a mechanism to recoup some of those profits. According to the industry on the 26th, Democratic Party lawmaker Ahn Tae-jun, a member of the National Assembly’s Land, Infrastructure and Transport Committee, introduced a revision to the Housing Act that would require buyers of private homes in areas covered by the housing price cap system to purchase National Housing Bonds through a mandatory bidding scheme. The proposal would require winners of price-capped projects to buy the bonds, allowing the public sector to reclaim part of the market premium. The bill also includes a safeguard: when the capped sale price for a private unit is 100% or less of nearby market prices, the maximum bond amount would be set below that level, limiting the additional recouped gains to the surrounding market price range. The idea has resurfaced as controversy has grown that price-capped projects have become a tool for excessive windfalls rather than serving their original purpose. The debate accelerated after President Lee Jae-myung said at a Cabinet meeting in June last year that “lottery sales” create a large gap with actual market prices because of the cap, and that the gap can drive up nearby home prices. The housing bond bidding system was used more than 20 years ago but was later scrapped after producing side effects. The government revived it during sales in Pangyo New Town in 2006 for mid- to large-size units over 85 square meters, citing concerns about overcrowding and demand surges. It set a ceiling so that the combined total of the sale price and losses from bond purchases would equal 90% of nearby market prices, differentiating it from the earlier version. But after the 2008 global financial crisis sent housing prices sharply lower, the combined total of sale prices and bond losses in some cases exceeded market prices, creating a “reverse” effect. The system was abolished in 2013. Kim Hyo-sun, a senior real estate specialist at KB Kookmin Bank, said the plan could burden even low- and middle-income households without homes by forcing additional bond purchases and could dampen subscription demand. She added that the housing price cap system was effective in the past when population growth meant most housing prices rose over time, but regional gaps have widened so much that the system is no longer effective in the long run and needs to be reworked. Some also point to overseas models. A frequently cited example is Singapore’s leasehold approach. In Singapore public housing, the state keeps land ownership while granting individuals the right to use it for 99 years. During a visit to Singapore last month, Lee said it was a policy he had been interested in since his time as Seongnam mayor and that South Korea should learn from it. The article notes challenges, including high housing-related taxes and the burden of deficits at public institutions. Singapore imposes an Additional Buyer’s Stamp Duty, charging a tax of up to 20% of the purchase price starting with a second home. It also places the cost of supplying public housing solely on the Housing & Development Board, and the government injects 2% of its annual budget to cover deficits. Shared-equity housing, positioned between public rental and full ownership, has also been discussed. The United Kingdom operates programs to promote affordable ownership by recognizing split ownership for tenants, helping them transition into asset holders. In the United States, public subsidies or participation by private investors can reduce households’ purchase burdens, while resale restrictions are used to curb speculation and share gains from price increases. Such ideas were discussed last year by the Lee administration’s state affairs planning committee under the name “equity accumulation and profit-sharing housing.” Kim said shared-equity models have a strong public character aimed more at stabilizing residence than achieving full ownership. She added that Singapore’s housing policy succeeded because public-led supply continued, while South Korea’s housing is mostly privately owned. In areas with low home prices, she said, people may be unlikely to prefer shared equity, making it difficult to implement in practice.* This article has been translated by AI. 2026-04-28 05:04:11