Journalist

Lee Hugh
  • Banks Expand ‘Productive Finance,’ but Public Takes Risk as Funds Favor Top Borrowers
    Banks Expand ‘Productive Finance,’ but Public Takes Risk as Funds Favor Top Borrowers Banks have increased corporate lending in the name of expanding “productive finance,” but critics say the money is flowing more to top-rated borrowers than to innovative firms and small merchants. That helps explain why, despite announcements of trillion-won support packages, many businesses say the impact on the ground remains limited. According to the financial sector on Tuesday, KB Kookmin, Hana, Woori and IBK Industrial Bank of Korea have contributed a combined 36.5 billion won to the Korea Credit Guarantee Fund so far this year. The total includes 30.5 billion won in special contributions and 6.0 billion won in support for guarantee fees. Including those banks, seven lenders have contributed 67.2 billion won to support non-capital regions. When banks make special contributions to policy guarantee institutions such as the Korea Credit Guarantee Fund and the Korea Technology Finance Corp., the agencies use the money to issue partnership guarantees. Banks then lend to small and midsize companies using those guarantees as collateral. The industry typically estimates the contributions can generate lending equal to 20 to 100 times the amount, meaning a 100 billion won contribution can translate into several trillion won in financing. The concern is that public institutions effectively take on the credit risk. If a guaranteed loan turns sour, banks face limited losses because the guarantee agency repays the debt, allowing banks to recover up to 90% to 100% of principal. That lets banks expand loan assets without a comparable hit to their soundness ratios. Supporters say the guarantees can serve as seed money for productive finance by helping lower-credit firms raise working capital and funds for facilities. But the burden on guarantee agencies inevitably grows as they absorb more risk. Subrogation payments by guarantee institutions have been rising. As of March, the number of troubled companies that received guarantees from the Korea Credit Guarantee Fund, the Korea Technology Finance Corp. and regional credit guarantee foundations, then failed to repay bank loans on time, jumped to 13,851 — 2.8 times the previous month’s 4,907. Subrogation payments tied to those cases totaled 594.8 billion won, up more than 40 billion won in a month. Meanwhile, loans that banks extend while directly bearing the risk have largely gone to stronger borrowers. As of the end of March, outstanding large-company loans at the five major banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup Bank — stood at 179.0119 trillion won, up 5.12% from the end of last year. Over the same period, outstanding loans to small and midsize companies rose just 0.94% to 680.7618 trillion won. The figures suggest that while productive finance is billed as support for innovative firms, venture companies and small businesses, much of the money is still flowing to creditworthy conglomerates. One reason is that formal-sector finance remains difficult for vulnerable borrowers. Of loans to small merchants and self-employed borrowers, 79.8% are secured loans and 10.6% are loans with guarantors, while unsecured credit loans account for only 9.6%. A financial industry official said the sector agrees with the goal of expanding productive finance, but added that “to maintain soundness regulations, funds inevitably concentrate in relatively safe borrowers.” The official said improving productive finance in line with its stated purpose will require “qualitative improvements through a risk-sharing structure and better allocation of funds.” 2026-04-22 15:03:06
  • Democratic Party lawmaker Park Chan-dae launches Incheon mayor bid, touts ABC+E growth plan
    Democratic Party lawmaker Park Chan-dae launches Incheon mayor bid, touts 'ABC+E' growth plan Park Chan-dae, the Democratic Party’s candidate for Incheon mayor, said at an official campaign launch news conference on the 22nd that he would “get Incheon’s engine running again” with what he called the city’s “ABC+E” future strategy. After declaring his candidacy, Park visited a biotech site — one pillar of the plan — and unveiled seven biotech pledges. Speaking in the Aetteul Plaza outside Incheon City Hall, Park said Incheon has been “moving backward” because it lacked “a clear vision for the future.” He said the ABC+E strategy would turn Incheon into a place “overflowing with high-paying jobs.” ABC+E combines the initials of artificial intelligence, bio, contents and energy as a mid- to long-term growth strategy for Incheon. His pledges include: promoting AI automation for logistics at Incheon International Airport and Incheon Port; building an AI connected-car hub and a “global AI auto valley” in Cheongna; developing Songdo as a global hub for new drug development; creating a 50,000-seat Munhak K-culture stadium and building 11 content-industry clusters; and moving to secure an offshore wind power ecosystem, push for tiered electricity rates, and restart efforts for a distributed-energy special zone. Park said Incheon’s average total annual pay for wage workers stands at 41.83 million won, ranking 10th nationwide. “Incheon residents should be properly rewarded for the work they do,” he said, pledging to raise the city’s average annual salary by 2030 to the national top five, with an average of 55 million won. After the announcement, Park visited a biotech company in Songdo, calling Incheon’s bio sector both a current and future growth engine. “The perfect opportunity has come to grow it into an industry that surpasses semiconductors,” he said, adding that the city would “pour in every capability it has” during what he called the biotech industry’s golden time. Park said if anchor companies in Incheon — Samsung Biologics, Celltrion, Lotte Biologics and SK Bioscience — focus on biosimilars, the city would focus on creating the best possible environment for developing new drugs. “I will make Incheon a city that excels at both biosimilars and new drugs,” he said. He then announced seven major biotech pledges: establishing the Korea Bio Science and Technology Institute; creating an Incheon bio fund and operating a Boston-style K-bio lab hub to spur startups and investment; improving the biotech business environment; converting the Incheon industrial complex into a key base for biotech parts and equipment; building a public-private cooperation system for the bio industry; attracting a public medical school; and hosting an Incheon Bio Expo. “I will add speed to K-bio innovation,” Park said, vowing to make real what he described as President Lee Jae-myung’s vision of becoming a “top five global powerhouse” in K-bio pharmaceuticals through his seven biotech pledges.* This article has been translated by AI. 2026-04-22 15:02:06
  • Japan Seen Holding Rates Steady as Middle East Tensions Cloud BOJ Outlook
    Japan Seen Holding Rates Steady as Middle East Tensions Cloud BOJ Outlook The Bank of Japan is increasingly expected to keep its policy rate unchanged at its late-April meeting, as instability in the Middle East drives up oil prices and raises concerns about supply disruptions, making the impact on Japan’s economy and inflation harder to gauge. A decision on a rate increase is likely to be pushed to the June meeting. Yomiuri Shimbun, Nikkei and Asahi Shimbun reported on April 22 that the BOJ is seriously considering holding the policy rate at about 0.75% at its April 27-28 policy meeting. With uncertainty over Middle East developments persisting, the central bank is seen prioritizing a review of broader economic effects over a premature hike. The outlook is being closely watched in South Korea as well. If a hike is delayed, the U.S.-Japan rate gap would remain, keeping pressure on the yen and potentially affecting South Korean export competitiveness through the won-yen exchange rate. The key variable is Middle East risk. Japan relies heavily on the region for crude oil imports, and higher oil prices can push up inflation. The BOJ is reportedly considering raising its forecast for fiscal 2026 consumer inflation in its April “Outlook for Economic Activity and Prices” report to reflect the impact of higher oil prices. Even so, the durability of inflation trends remains uncertain. Energy-driven price gains may prove temporary, while prolonged high oil prices could squeeze corporate profits and curb consumption, slowing growth. Asahi reported that the BOJ is holding off judgment between upside inflation pressure and downside economic risks, and that the probability of an April rate hike fell to 9% as of the afternoon of April 21, from more than 70% at one point. With markets largely positioned for no change, a surprise hike could increase financial-market volatility, the report said. Internal support for a hike also appears limited. Nikkei reported that while some policy board members may argue for an increase, there is no clear momentum for an early move. At the March meeting, board member Hajime Takata, described as hawkish, proposed a hike, but it was voted down by a majority. Yomiuri said concerns are also spreading over supplies of petrochemical feedstocks such as naphtha, as the Strait of Hormuz remains blocked, a key chokepoint for Middle East energy shipments. If crude supply disruptions materialize, Japan could slip into a slowdown, the report said. The BOJ has held rates steady for two straight meetings since raising the policy rate from 0.5% to 0.75% last December. If it stands pat again, it would extend a cautious approach to tightening. Still, the central bank’s overall policy direction has not changed. Yomiuri reported that the BOJ is maintaining its stance that it will make additional rate increases to adjust the degree of monetary accommodation if the economy and prices move in line with its projections. Market attention is now shifting to whether the June meeting will bring an actual hike.* This article has been translated by AI. 2026-04-22 15:01:06
  • Brokerages Revamp Mobile Trading Apps as Platform Competition Intensifies
    Brokerages Revamp Mobile Trading Apps as Platform Competition Intensifies Brokerages are racing to overhaul their mobile trading systems, or MTS, as a buoyant stock market draws more investors and intensifies competition to keep users on their platforms. Analysts say rivalry in the sector is shifting from transaction fees to platform strength. According to the financial investment industry on April 22, Next Securities is developing a next-generation MTS that combines artificial intelligence with short-form content, aiming for a launch in the second half of this year. The company plans to put short, easy-to-digest investing content front and center so users of all ages can navigate the app more intuitively. To support the push, Next Securities has expanded its retail organization from about 100 people at its launch last year to about 160, assigning a significant share to MTS development. While many established brokerages have been cautious about major UI and UX changes that could trigger user pushback, Next Securities says it will take a “zero-base” approach to build an entirely new investing environment. Hana Securities is preparing to release a new MTS app in the first half of the year with stronger AI and digital features. It plans to add a “simple mode” to keep the experience familiar for existing users while attracting new investors, a strategy seen as targeting investors in their 20s and 30s with a more intuitive interface. LS Securities also revamped the main screen of its MTS, “Toohon,” this month, separating domestic and overseas stock markets into independent tabs and adding a dedicated menu for exchange-traded funds. Other firms are upgrading existing platforms. Mirae Asset Securities recently redesigned the UX of the “MY Assets” feature in its MTS, “M-STOCK,” so users can view previously scattered asset information on a single screen. Kakao Securities strengthened server stability — including shift-based operations — after MTS disruptions that occurred when traffic surged during a period of heightened market volatility. Meritz Securities is also moving ahead with partial MTS changes while accelerating preparations to launch its web trading system, “Moeum.” The company aims to broaden contact with younger investors and differentiate communication features through a structure designed to connect with multiple platforms rather than being tied to a single app. “An MTS overhaul is essential to create a lock-in effect,” an industry official said. “Legacy brokerages will focus on simplification to bring in younger investors, while new platforms will expand functions and gradually add more heft.” 2026-04-22 14:54:32
  • South Korea awards 100 million won in bonuses to 23 staff at embassy in Iran
    South Korea awards 100 million won in bonuses to 23 staff at embassy in Iran The Foreign Ministry said Tuesday it paid about 100 million won ($) in special performance bonuses to 23 employees at the South Korean Embassy in Iran for their work responding to the Middle East situation. The ministry said the bonuses were paid regardless of rank or nationality and were scaled based on each employee’s contribution, including workload and exposure to risk during efforts such as assisting South Koreans with evacuation. The recipients included 13 South Korean nationals and 10 foreign nationals. The ministry said embassy staff kept the mission operating normally after the outbreak of war, maintained close communication with Iranian counterparts, and successfully supported the overland evacuation of South Korean nationals and their Iranian family members. It added that staff were also credited with checking daily on the safety of South Koreans who remained in the country, calling their work a strong performance in protecting citizens abroad despite dangerous conditions. President Lee Jae-myung, during a Cabinet meeting on the 14th, asked Foreign Minister Cho Hyun whether he had followed through on his instruction to encourage and reward embassy staff in Iran, and urged him to “take good care of it.” * This article has been translated by AI. 2026-04-22 14:47:03
  • Woo Won-shik Says Free Vote Could Pass Constitutional Amendment, but Lawmaker Resignations Loom
    Woo Won-shik Says Free Vote Could Pass Constitutional Amendment, but Lawmaker Resignations Loom National Assembly Speaker Woo Won-shik said a constitutional amendment slated for a May 7 plenary session could pass if lawmakers are allowed a free vote, but the measure faces headwinds. The People Power Party has declared its opposition as a party line. At the same time, Democratic Party lawmakers who were selected as candidates for metropolitan mayor and governor races in the June 3 local elections have said they will resign en masse on the 29th, increasing the burden of securing defections from the People Power Party. To pass in the plenary session, a constitutional amendment requires approval from at least two-thirds of sitting members. As of the 21st, with 295 members, the threshold is 197 votes. If the Democratic Party candidates resign, the number of sitting members would fall to 287. Some have argued the party could delay resignations until the 30th. Under the current Public Official Election Act, by-elections in the first half of the year are held for vacancies confirmed by the 30th, while the deadline for an incumbent to resign to run in local elections is May 4. However, party leader Jeong Cheong-rae has said the candidates will not use a loophole and will resign together on the 29th. If either Rep. Choo Kyung-ho or Rep. Yoo Young-ha, who are in a runoff for the People Power Party’s Daegu mayoral nomination, resigns after winning, the total would drop by one more seat. Rep. Kang Sun-woo, who is incarcerated, is also widely expected to be absent. Assuming Kang does not participate, passage would require at least 12 votes from the People Power Party: with 286 sitting members, 191 votes would be needed, and excluding Kang and the People Power Party leaves 179 seats. That is two more defections than the 10 needed under the current count of 295 members, where 197 votes are required and the non-People Power Party total excluding Kang is 187. In the People Power Party, only Reps. Kim Yong-tae and Cho Kyung-tae have publicly signaled support. Woo and six parties — the Democratic Party, the Rebuilding Korea Party, the Progressive Party, the New Reform Party, the Social Democratic Party and the Basic Income Party — agreed to pursue the amendment and introduced it on the 3rd. The proposal seeks to revise the Constitution that has been in place for 39 years since 1987. Its core aim is to prevent a repeat of the “12·3 martial law” by tightening the requirements for declaring martial law and neutralizing the president’s authority to do so. If the amendment fails in the May 7 plenary session, observers say the chances of passage in the second half of the year would be even lower. Of 14 districts expected to hold by-elections, 13 were previously held by the Democratic Party, making a clean sweep difficult to guarantee. Tensions have also surfaced between the Democratic Party and smaller progressive parties during efforts to pass political reforms, and they remain divided over possible election cooperation. Rep. Jeong Chun-saeng of the Rebuilding Korea Party voiced frustration during an April 18 plenary session, saying, “Are we only needed when it’s time to end a filibuster?”* This article has been translated by AI. 2026-04-22 14:46:07
  • Brokerages Tighten Margin Lending as Retail Debt-Fueled Trading Heats Up Again
    Brokerages Tighten Margin Lending as Retail Debt-Fueled Trading Heats Up Again As the Kospi extends its rally, signs of overheating have reappeared in retail investors’ debt-fueled trading, prompting brokerages to tighten credit and step up risk controls. According to the financial investment industry on the 22nd, KB Securities began restricting new purchases of SK hynix through contracts for difference, or CFDs, from 9 a.m. the previous day. CFDs are high-risk over-the-counter derivatives that settle only price differences without owning the underlying asset. Because they can be highly leveraged, losses can grow quickly when market volatility rises. Mirae Asset Securities also adjusted margin requirements and stock classifications for some names starting that day. Twenty stocks — including Alteogen, HYBE, Kakao and LG Energy Solution — were moved up from group E to group F. Margin requirements for 10 stocks, including Hana Micron and Daeduck Electronics, were raised to 100% from 30% to 40%. Stocks set at 100% margin or placed in group F face limits such as restrictions on new margin-buying and extensions of loan maturities. Toss Securities, after raising margin requirements to 100% the previous day for some stocks including Korea Information & Communication and Jusung Engineering, expanded the list that day to include Korea Airport and Samsung Electro-Mechanics preferred shares. Kakao Pay Securities halted all new margin-buying orders, citing exhaustion of its credit limit. “Depending on market conditions, we are implementing additional risk-management measures such as adjusting margin requirements,” the firm said. The moves follow a sharp rise in margin trading. Data from the Korea Financial Investment Association showed outstanding margin loans across the main Kospi market and the Kosdaq market topped 34 trillion won for the first time on the 17th, reaching 34.0279 trillion won, and then rose to 34.2592 trillion won on the 20th. Market watchers said retail investors have been placing more aggressive leveraged bets as the Kospi set fresh record highs and expectations for further gains grew. Some also warned that momentum-driven buying aimed at quick profits could add downside pressure if volatility increases. A brokerage industry official said leveraged investing can magnify losses as quickly as gains, calling for extra caution. The official said investors should approach carefully by closely weighing their ability to repay and their tolerance for risk, especially during periods of rising volatility. 2026-04-22 14:36:17
  • Nongshim teams with Jeonju film festival for Shin Ramyun’s 40th anniversary
    Nongshim teams with Jeonju film festival for Shin Ramyun’s 40th anniversary Nongshim is marking the 40th anniversary of its Shin Ramyun brand with a partnership with the Jeonju International Film Festival, aiming to link Korean food and culture. Nongshim said April 22 that it signed an agreement a day earlier at its headquarters in Seoul’s Dongjak district with the festival’s organizing committee for special screenings tied to the anniversary. Under the deal, the company participated in producing two short films featuring Shin Ramyun that will be shown during the festival. The films are director Oh Se-yeon’s “Before the Noodles Bloom” and director Kim Tae-yeop’s “When the Ramen Runs Out.” They portray Shin Ramyun as a familiar presence known for an unchanged taste over time. The shorts will be screened three times: May 2 and 3 at CGV Jeonju Gosa, and May 5 at Megabox Jeonju Gaeksa. A “Shin Ramyun Studio” pop-up store will also open on Jeonju’s Film Street, offering a hands-on program where visitors can mix noodles, seasoning and toppings to make their own ramen. It will run from the festival’s opening day, April 29, through May 5. Nongshim, which is sponsoring the festival for a third year, will also present the “Nongshim Shin Ramyun Award” for new directors in the Korean Competition section for a second consecutive year. “We want to connect with audiences through the art of film as we mark Shin Ramyun’s 40th anniversary,” a Nongshim official said. “We will continue cultural and arts collaborations to help promote the competitiveness of Korean culture.” The 27th Jeonju International Film Festival will be held from April 29 to May 8 around Jeonju’s Film Street.* This article has been translated by AI. 2026-04-22 14:35:02
  • Japans Takaichi Sends Another Offering to Yasukuni Shrine Despite South Korea, China Criticism
    Japan's Takaichi Sends Another Offering to Yasukuni Shrine Despite South Korea, China Criticism Japanese Prime Minister Sanae Takaichi has made an additional offering to Yasukuni Shrine. Kyodo News and NHK reported on the 22nd that Takaichi, through Haruko Arimura, chair of the Liberal Democratic Party’s General Council, donated out of her own pocket the fee for a ritual offering known as a “tamagushi.” After visiting the shrine, Arimura told reporters that she had prayed with Takaichi’s sentiments in mind and said the prime minister likely hopes to pay her respects there in person someday. On the first day of the spring festival the previous day, Takaichi did not visit but sent a “masakaki” offering in the name of “Prime Minister Sanae Takaichi.” The South Korean and Chinese governments immediately issued critical statements. South Korea’s Foreign Ministry said in a spokesperson’s comment that it was “deeply disappointed and regretful” that responsible Japanese leaders again sent offerings to, or repeatedly visited, Yasukuni, which it said “glorifies Japan’s past wars of aggression” and enshrines war criminals. China’s Foreign Ministry also criticized the move, calling Yasukuni “a symbol of Japan’s militarist wars of aggression” and saying it firmly opposed related developments. The 22nd marked the second day of the spring festival, and Minoru Kiuchi, the minister in charge of economic and fiscal policy, visited the shrine in person. It was the first confirmed visit by a Cabinet minister since the Takaichi Cabinet took office in October last year. Some ministers sent offerings the previous day but did not visit. After his visit, Kiuchi told reporters he had expressed gratitude and respect for the spirits of those who “gave their precious lives for the nation.” Also visiting were junior government officials including Cabinet Office Parliamentary Vice Minister Jun Tsushima and Internal Affairs and Communications Parliamentary Vice Minister Noriko Horiuchi. About 120 lawmakers from a cross-party parliamentary group also went to the shrine together. Yasukuni commemorates about 2,466,000 people who died in conflicts from the period around the Meiji Restoration through wars waged by imperial Japan, many linked to the Pacific War. It has long been a diplomatic flashpoint because it also enshrines Class-A war criminals, including former Prime Minister Hideki Tojo.* This article has been translated by AI. 2026-04-22 14:34:11
  • South Korea opens World IT Show 2026 with spotlight on physical AI and robotics
    South Korea opens World IT Show 2026 with spotlight on physical AI and robotics SEOUL, April 22 (AJP) - South Korea's Ministry of Science and ICT on Wednesday opened the World IT Show 2026, a three-day exhibition at COEX showcasing the latest advances in artificial intelligence, robotics and information and communications technology. The event, running through Friday, drew 460 companies and institutions from 17 countries to a 24,800-square-meter exhibition hall under the slogan "Beyond Idea, Into Action: AI moves Reality." Organizers said the show was designed to offer hands-on experience with what they called the "physical AI transformation." Major Korean firms including Samsung Electronics, LG Electronics, and SK Telecom joined the exhibition alongside robotics specialists such as Maum.AI. The floor was divided into four themed pavilions covering award-winning technologies, global exhibitors, entertainment tech and the country's AI semiconductor ecosystem. At an opening-day ceremony, AI audio platform developer Gaudio Lab received the Presidential Award for a tool that automates music separation, dubbing and subtitling in K-content exports. Law-focused AI firm Law & Company took the Prime Minister's Award, while Samsung Electronics was among six companies honored with the minister's prize. A separate export consultation fair paired with about 190 Korean firms with 50 overseas buyers from 14 countries for business matchmaking sessions aimed at supporting startups and mid-tier ICT companies seeking global partnerships. "The World IT Show is an important venue to experience the convergence of physical AI and cutting-edge technologies," Second Vice Minister Ryu Je-myung said at the opening. "We hope it becomes a meaningful occasion for our AI and ICT companies to share the fruits of innovation and forge new partnerships." 2026-04-22 14:32:27