Journalist

Lee Hugh
  • Auto Installment Loan Rates Top 10% at Some Firms as Funding Costs Rise
    Auto Installment Loan Rates Top 10% at Some Firms as Funding Costs Rise Auto installment loan rates are climbing sharply as funding conditions worsen for card issuers and capital companies. Some capital firms have pushed rates above 10%, and the rise in card bond yields suggests rates could climb further. According to the Credit Finance Association on Saturday, the average installment rate for new cars at six dedicated card issuers last month — based on a 30% cash down payment and a 36-month term — ranged from 4.60% to 6.63%. That is more than a 2 percentage-point increase in four months, compared with the low-3% to low-4% range in the fourth quarter of last year. Major capital companies posted higher rates than card issuers, at 5.12% to 8.80%. Meritz Capital’s top rate reached 10.8%. Hana Capital’s average rate rose 1.58 percentage points, from 5.52% in the previous quarter to 7.1% in April. The increases reflect higher funding costs for card issuers and capital companies. Unlike banks, specialized credit finance companies do not take deposits and largely fund lending by issuing specialized financial company bonds and commercial paper. Amid instability in the Middle East, yields on three-year AA+ card bonds have stayed in the 4% range, hitting 4.167% on March 23. With a typical two- to three-month lag before higher funding costs feed into loan pricing, installment rates are expected to face additional upward pressure. Still, rates may vary by model and automaker marketing strategy. Automakers sometimes work with financial firms to offer ultra-low-rate financing or cashback on key models to boost sales, which can keep rates low despite higher funding costs. Some Chinese-made electric vehicles are being offered with financing starting in the 0% range. An industry official said higher funding costs leave room for additional rate increases, but added that a dual-track market — with ultra-low rates for low-priced Chinese EVs regardless of broader rate moves — is likely to persist for the time being. * This article has been translated by AI. 2026-05-03 17:03:17
  • Drugmakers Expand Small-Pack Supplements Beyond Pharmacies to Daiso
    Drugmakers Expand Small-Pack Supplements Beyond Pharmacies to Daiso Drugmakers are expanding sales of health functional foods and other products to Daiso, a fixed-price household goods chain, as they move beyond pharmacy-centered distribution. With consumers seeking ultra-low prices and value during a downturn, companies are aiming to lower the cost burden and broaden customer touchpoints. The shift is also spreading to quick-commerce delivery channels. According to the industry on May 3, Chong Kun Dang launched six small-portion, small-pack “Dailywise” health functional foods and seven gummy products at Daiso. The lineup includes basics such as multivitamins and minerals and omega-3, as well as “Women’s Health Respecta Probiotics.” Dongwha Pharm has also released nine Daiso-only daily health products, including “Pyeonan Hwal,” “Quick&Sure,” “by. Ssanghwa-won” and “by. Maglab.” The company said Pyeonan Hwal and other items ranked No. 1 in the food category after launch, and initial online-mall inventory sold out quickly, leading to temporary shortages. By. Ssanghwa-won and by. Maglab are sub-brands of Ssanghwa-won and Maglab, planned as Daiso-exclusive products tailored to the channel. The broader retail push is translating into earnings. Chong Kun Dang Health returned to profitability last year, posting operating profit of 37.3 billion won, helped by expanded supplement sales. Daewoong Pharmaceutical also reported that its OTC sales rose 27% from a year earlier to 43.7 billion won as sales of supplements launched through Daiso increased. Both companies moved early to offer ultra-low-priced supplements at Daiso, pricing key items at a fixed 3,000 to 5,000 won. Jeong Dong-hee, an analyst at Samsung Securities, said Daewoong’s core products such as Ursa are expected to grow through pharmacies, while new health functional foods should expand through general retail channels. He projected the company’s OTC division revenue will rise from 160.6 billion won in 2025 to 184.7 billion won this year. As low-price, small-portion strategies centered on Daiso lift sales, the approach is spreading to other channels. Dong-A Pharmaceutical has placed four items from its health functional food brand Selparex on Baemin’s B Mart delivery platform. All are sold as one-month supplies at a fixed price of 5,000 won. Dongkook Pharmaceutical and Kwangdong Pharmaceutical are also already supplying products to quick-commerce channels. Industry officials say the model is taking shape: use small packs to improve accessibility and draw new demand, then expand distribution based on that base. A pharmaceutical company official said small-pack products are a sales strategy designed around consumer accessibility, and are meaningful because they can introduce products to more customers. With online and offline distribution channels diversifying, the official said, expanding points of sale is a natural trend.* This article has been translated by AI. 2026-05-03 16:55:23
  • High Exchange Rates Cut Korean Duty-Free Sales as Retailers Target Foreign Tourists
    High Exchange Rates Cut Korean Duty-Free Sales as Retailers Target Foreign Tourists A sustained run of high exchange rates has weakened the price appeal of duty-free shopping, and the number of Korean customers has fallen for three straight months, industry data show. Major duty-free operators are trying to offset the drop by expanding K-content and experience-focused spaces aimed at foreign visitors. According to the Korea Duty Free Shops Association, the number of Korean duty-free shoppers declined to 1.63 million in January, 1.45 million in February and 1.36 million in March. Sales to Korean customers also fell month by month, from 284.2 billion won in January to 257.6 billion won in February and 231.2 billion won in March. Foreign customer traffic moved the other way. The number of foreign duty-free shoppers was 940,000 in January and 910,000 in February, then rose to 1.09 million in March, topping 1 million. Foreign-customer sales slipped from 786.6 billion won in January to 704.7 billion won in February, then jumped to 851.3 billion won in March. With high exchange rates eroding the attractiveness of duty-free prices, Korean demand has cooled, while rising inbound tourism has partly offset the decline, the association said. Foreign visits are expected to increase further as Japan's Golden Week (April 29-May 6) overlaps with China's Labor Day holiday (May 1-5). Duty-free retailers are responding by rolling out specialized spaces that emphasize experiences tied to K-content. Shinsegae Duty Free expanded its K-food and wellness curation zone, "Taste of Shinsegae," from its Myeongdong store to its Incheon Airport store on April 24. After launching the zone in Myeongdong, the company said that within six months the number of food buyers quadrupled and sales rose 30-fold, and it expects similar results at the airport, where last-minute purchases are common before departure. Its 11th-floor K-wave zone in Myeongdong is also growing: March sales rose 90% from the previous month, and sales of BTS goods surged 200% over the same period. Lotte Duty Free has launched a new campaign, "Trip Lotte Duty Free," featuring the girl group aespa. The campaign positions duty-free stores as "a travel destination" rather than just a shopping venue. Aespa members appear as category-by-category shopping guides, and offline stores have added concept "episode" zones and life-size standees to deepen fan engagement. Hyundai Duty Free recently opened an "AI Beauty Trip" space at its Trade Center store, where artificial intelligence diagnoses customers' skin condition and personal color and recommends cosmetics. The company also signed a memorandum of understanding with Hwaseong Special City to develop travel products using West Coast tourism resources, part of a strategy linked to tourism infrastructure. Shilla Duty Free is running a Jeju local dessert showcase, "Sweet Jeju," at its Jeju store, bringing together signature items from well-known bakeries and cafes across the island. "With exchange rates weakening price competitiveness, content and experiences have emerged as the key differentiators," an industry official said. "Going forward, complex, experience-based spaces that combine K-content, traditional culture and AI technology will be an important factor in drawing foreign demand."* This article has been translated by AI. 2026-05-03 16:51:16
  • Special Counsel Nears First Deadline With No Arrest Warrants or Indictments
    Special Counsel Nears First Deadline With No Arrest Warrants or Indictments The second comprehensive special counsel team, led by Special Counsel Kwon Chang-young and tasked with allegations not resolved by the three earlier special counsels, is nearing the end of its initial investigation period without clear results. The probe has increasingly focused on identifying the military command chain behind the deployment of martial law troops, but observers say the structure of the case has slowed progress. According to legal officials on Saturday, the team marked its 68th day since launch. Including a 20-day preparation period, it has used most of its 90-day overall activity window and has passed the midpoint of the maximum 170-day investigation period. The team is reportedly considering seeking a first 30-day extension ahead of the basic deadline of May 25. The special counsel has broadened the scope of its investigation, including booking Yoon Suk Yeol and former Defense Minister Kim Yong-hyun, but it has not produced visible outcomes such as arrest-warrant requests or indictments. So far, the first phase has been defined by narrowing targets while expanding fronts. Of 17 allegations left by the three earlier special counsels, the team is investigating about seven or eight, including the Deutsche Motors stock manipulation case, the relocation of the presidential residence and alleged favoritism tied to the Yangpyeong expressway project. It has also added lines of inquiry not covered in earlier probes, including allegations of presidential office involvement in the Ssangbangwool remittances-to-North-Korea case. A central track is tracing the chain of orders for the martial law troop deployment, including Joint Chiefs of Staff Chairman Kim Myung-soo. Investigators view the command-chain issue as a structural case rather than a single, discrete offense. They must establish who ordered troop movements and through what channels, as well as whether reports and approvals were made, the purpose of the operation and its legal basis. Because it requires confirming the broader command system, the probe is considered time-consuming and difficult. The investigation has also been complicated by friction with the Supreme Prosecutors' Office. The special counsel demanded internal audit materials related to the Dec. 3 emergency martial law, but the Supreme Prosecutors' Office effectively refused, saying the team should obtain them through a search-and-seizure warrant. The special counsel viewed the refusal as obstruction and asked the Justice Ministry to begin disciplinary proceedings against acting Prosecutor General Koo Ja-hyeon and former Inspection Bureau chief Kim Seong-dong. The requested materials are described as the full set of internal audit and inquiry records produced as the prosecutors' inspection unit reviewed allegations tied to the emergency martial law, including statements from those questioned, review reports and the basis for any "no suspicion" conclusions. The special counsel says it needs the records to recheck the validity of prosecutorial judgments, while the Supreme Prosecutors' Office argues confidential audit materials are not subject to voluntary submission. The Kim Keon-hee special counsel team, led by Special Counsel Min Joong-ki, previously sought similar records, was refused and later obtained them through a search warrant, according to the report. With the two sides in open conflict, critics say a lack of interagency cooperation has emerged as a variable from the early stage of the probe. The special counsel expanded its scope again on April 27, naming a case transferred from the Seoul High Prosecutors Office human rights violation review task force as the "presidential office intervention in the Suwon District Prosecutors Office investigation" case. In addition, the team booked Kim Yong-hyun on charges of rebellion under the Military Criminal Act in connection with the Dec. 3 emergency martial law and began questioning. It is also reviewing whether to apply the same charge to Yoon. Even so, questioning of key suspects has not moved quickly. Yoon did not appear for a first summons on April 30, citing trial schedules, and the special counsel is coordinating another date. Kim also failed to appear, citing a scheduling conflict, and was told to report again. The team is also conducting follow-up investigations into unresolved allegations. In connection with the "Noh Sang-won notebook," it applied a charge of organizing a criminal group and has summoned related figures in succession. The special counsel faces internal controversy and staffing constraints. Concerns about a conflict of interest involving Special Counsel Assistant Kwon Young-bin, who handled the Ssangbangwool case, led to a change in assignment, raising worries about delays. Special Counsel Assistant Kim Ji-mi also drew criticism over political neutrality after appearing on YouTube. Staffing remains tight. Although the comprehensive special counsel has the broadest mandate, its quota for seconded prosecutors is 15, and only 13 have joined so far. If indictments are filed, some prosecutors would have to be assigned to maintain prosecutions in court, further reducing investigative capacity. Analysts say that reality may make the team cautious about coercive steps such as seeking arrest warrants. Meanwhile, North Jeolla Gov. Kim Kwan-young, who was accused in a complaint of aiding an insurrection, denied the allegations after being questioned by the special counsel, saying, "There was no closure of the government complex, and I never aided an insurrection."* This article has been translated by AI. 2026-05-03 16:48:29
  • South Korea court upholds limits on Chinese characters in children’s registered names
    South Korea court upholds limits on Chinese characters in children’s registered names South Korea’s Constitutional Court has ruled that a provision limiting the Chinese characters that can be used when registering a child’s name at birth does not violate the Constitution.  According to the legal community on Saturday, the court upheld the provision in Article 44(3) of the Family Relations Registration Act by a 5-4 vote, rejecting a constitutional complaint challenging the phrase “commonly used Chinese characters.”  The petitioner, identified only as A, reported the birth of a daughter using the character “婡” (read as “rae,” meaning “pretty”) in the child’s name. But the official handling the filing recorded the name in the family register only in Hangul, saying the character was not included among “commonly used Chinese characters” under a Supreme Court rule issued pursuant to Article 44(3).  A argued the provision infringed the right to choose a child’s name.  Article 44(3) provides that a child’s name must be written in Hangul or in commonly used Chinese characters, and that the scope of such characters is set by Supreme Court rules.  The court said there was no need to overturn its July 2016 precedent, which found a substantively similar provision constitutional and not in violation of the principle against excessive restrictions.  The court said a child’s registered name is the basis for forming social relationships and should be recorded using characters that members of society can actually read and use. It also cited the vast number of Chinese characters and the unclear boundaries of their use, saying the range of “commonly used” characters must be defined in advance to register Chinese-character names in the computerized family-registration system.  It noted that the Supreme Court has periodically expanded the list of Chinese characters permitted for personal names through rule revisions. Since the earlier precedent, the list has been revised three more times, increasing by more than 1,000 characters to 9,389, the court said.  The court also said remedies exist, including registering newly added characters through a name-change process or a supplemental birth-registration procedure. Even if a noncommonly used character cannot be entered in official records, parents may still use their preferred character privately, it said, concluding the restriction on naming freedom is not severe.  Justices Jeong Jeong-mi, Kim Bok-hyeong, Ma Eun-hyeok and Oh Young-jun dissented, saying the provision violates the principle against excessive restrictions and infringes the freedom to choose a child’s name.  They said the abstract possibility that the list may be revised in the future does not resolve the current infringement, and that ordinary people cannot reasonably predict which characters will be deemed “commonly used” and selected for the approved list.  A court official said the 5-4 decision was based on the view that the trend toward expanding the approved list and changes in the share of Chinese-character use do not weaken the need for limits, and that use of nonapproved characters remains allowed in the private sphere. * This article has been translated by AI. 2026-05-03 16:42:15
  • Nvidia’s Physical AI Push Lifts Shares of Asian Partners Including LG Electronics
    Nvidia’s Physical AI Push Lifts Shares of Asian Partners Including LG Electronics Nvidia’s expansion into robotics and autonomous systems — often described as “physical AI” — has helped lift shares of several Asian partners, Bloomberg News reported May 2. Bloomberg said shares of South Korea’s LG Electronics, Taiwan’s Nanya Technology, and China’s Huizhou Desay SV Automotive and Pateo Connect Technology rose on expectations of broader cooperation with Nvidia. LG Electronics closed at 140,900 won as of April 30, up 33% over the past month. On April 28, the stock jumped as much as 15% intraday after reports it was discussing linking its home robot to Nvidia’s platform. Nanya rose 10% on news of cooperation with Nvidia, Bloomberg said. Desay’s shares also advanced after it unveiled an intelligent driving solution with Nvidia, while Pateo gained on expectations of expanded collaboration. Bloomberg reported that about 90% of Nvidia’s production costs now go to Asian suppliers, up sharply from about 65% last year, as surging demand for AI chips increases reliance on Asian firms strong in manufacturing, assembly and key components. “Global tech companies like Nvidia inevitably will keep increasing their dependence on Asian supply chains,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “Physical AI will be an additional growth driver on top of the already rapidly rising AI chip demand in Asia’s supply chain.” Cooperation expands into physical AI The recent cooperation trend is widening beyond semiconductors into physical AI. Nvidia has worked with SK hynix and Samsung Electronics to boost AI computing capacity, but it has recently broadened cooperation into robotics and autonomous driving. Madison Huang, a senior director and the eldest daughter of CEO Jensen Huang, visited LG Electronics’ headquarters in Seoul on April 28 and discussed cooperation in robotics, AI data centers and mobility with LG Electronics President Ryu Jae-cheol, according to the report. Bloomberg said Nvidia’s physical AI strategy is expanding applications across real-world industries, including robotics, autonomous systems and AI-driven manufacturing, while highlighting Asia as a core partner. Huang has previously described physical AI as the next growth phase after generative AI. Some analysts said the shift could support broader gains in Asian tech shares. “As AI demand expands and its applications broaden at the same time, more companies are getting opportunities to participate in the supply chain,” said Marvin Chen, a strategist at Bloomberg Intelligence. He said North Asian markets with a high weighting in technology could show relative strength. Large capital spending plans by U.S. big tech companies are also supporting the trend. Amazon, Microsoft and Alphabet each plan about $190 billion to $200 billion in capital expenditures this year, while Meta has raised investment to as much as $145 billion, Bloomberg said. Nvidia has become a key supplier, accounting for about half of Microsoft’s investment and about a quarter of Amazon’s, the report said. As a result, Asian companies including Foxconn and SK hynix have continued to benefit indirectly. “AI is creating new demand across semiconductors, components, servers and hardware infrastructure, bringing Asia’s structural strengths into sharper focus,” said Rajiv De Mello, a global macro portfolio manager at Gama Asset Management. “Asia already has the experience and supply chains to build advanced semiconductors and robots, giving it a favorable foundation for implementing physical AI.”* This article has been translated by AI. 2026-05-03 16:40:52
  • Blue House Watches June 3 Local Elections Closely as First National Test for Lee Government
    Blue House Watches June 3 Local Elections Closely as First National Test for Lee Government The Blue House is closely watching the outcome of the June 3 local elections while maintaining what it calls a core principle of political neutrality. The results are widely expected to be read as a verdict on the Lee Jae-myung government, with direct implications for its governing momentum. The June 3 vote is the administration’s first nationwide election since it took office in June last year. It also comes exactly one year after Lee’s inauguration, and it will be held alongside National Assembly by-elections in 14 districts. According to political circles on Saturday, three former Blue House aides are running in the 14 by-elections: Kim Nam-jun, a former spokesperson, in Incheon’s Gyeyang-eul; Ha Jung-woo, former senior secretary for AI Future Planning, in Busan’s Buk-gap; and Jeon Eun-su, a former spokesperson, nominated in South Chungcheong’s Asan-eul. In races for metropolitan and basic local government heads, Woo Sang-ho, former senior secretary for political affairs, is running for Gangwon governor, and Kim Byung-wook, former political affairs secretary, is running for Seongnam mayor. If the direction suggested by many polls and analysts holds, the election is expected to end in a one-sided victory for the Democratic Party, allowing Lee to further consolidate control as he enters his second year in office. Such a result could also be interpreted as voters giving the government passing marks for its risk management amid international uncertainty and supply-chain instability linked to the war in the Middle East. After the local elections, Lee is expected to move faster on plans to diversify energy supply chains and diplomatic cooperation, accelerate the energy transition, and push to become a leading country in areas including artificial intelligence and the defense industry. Lee’s job approval rating has recently remained in the mid-60s. A Gallup Korea poll released May 1 found 64% approved of his performance, down 3 percentage points from the previous survey. The poll, conducted April 28-30 among 1,002 adults nationwide, found 26% disapproved, up 1 point from the prior week, while 10% were undecided. Eom Gyeong-yeong, head of the Institute for the Spirit of the Times, said the mid-60s approval rating shows the public is giving the government a passing grade for its response to the Middle East war. He said a landslide win in the local elections would further boost the administration’s ability to govern. The Blue House has sought to project focus on governing, including responding to the Middle East war. Lee spent the weekend without a separate official schedule. He continued communicating on social media, however. Sharing a post by Financial Services Commission Chairman Lee Eok-won on X, formerly Twitter, Lee wrote, “It is acceptable not to repay illegal loans that exceed the legally permitted limit.” The message was interpreted as signaling a tougher response to illegal private lending, noting that loan contracts exceeding the legal limit are invalid and encouraging victims to report abuses. Lee Eok-won wrote on X on April 28 that a revised enforcement decree to the Loan Business Act, aimed at lowering barriers to reporting damage from illegal private lending, had passed a Cabinet meeting. He stressed that loan contracts with annual interest rates above 60% render both principal and interest invalid. The Gallup Korea survey was conducted through interviewer-led telephone polling using randomly generated mobile phone numbers. The margin of error was plus or minus 3.1 percentage points at a 95% confidence level, and the response rate was 13.3%. More details are available on the website of the National Election Survey Deliberation Commission. 2026-05-03 16:36:00
  • Iran Proposes 30-Day End to War in New Truce Offer; Trump Says Tehran Must Pay a Price
    Iran Proposes 30-Day End to War in New Truce Offer; Trump Says Tehran Must Pay a Price As the United States and Iran continue behind-the-scenes contacts over a cease-fire, Iran has proposed a new truce plan to Washington that includes ending the war within 30 days, according to reports. President Donald Trump signaled dissatisfaction and suggested the U.S. could return to military action. AP and CNN reported on May 2, citing Iran’s semiofficial Tasnim News Agency and Iranian state TV, that Iran sent the United States a new cease-fire proposal through mediator Pakistan. The plan has 14 clauses. The proposal was described as Iran’s response to a nine-point U.S. cease-fire plan. Its central element is ending the war within 30 days, rather than a two-month cease-fire proposed by the United States, the reports said. The Iranian plan also includes security guarantees related to U.S. hostile acts, a U.S. troop withdrawal from areas around Iran, an end to a U.S. maritime blockade of Iran, the unfreezing of Iranian accounts and lifting of sanctions, an end to the Lebanon conflict, and a new mechanism for managing the Strait of Hormuz, according to the reports. Axios, citing two sources, reported that Iran’s proposal calls for a one-month negotiating period to discuss reopening the Strait of Hormuz, ending the U.S. maritime blockade and ending the Lebanon war, with nuclear talks to follow only after agreement is reached on those items. Kazem Gharibabadi, Iran’s deputy foreign minister, said the goal of the proposal is a “permanent halt” to the war. “The ball is now in the U.S. court to choose a diplomatic solution or continue confrontation,” he said. Trump: Iran must pay a price Trump responded skeptically. In a post on his social media platform Truth Social, he said the United States would soon review Iran’s proposal, but added that it was hard to imagine accepting it because Iran “has not yet paid enough of a price” for what it has done “to humanity and the world” over the past 47 years, a reference to Iran’s posture since the 1979 Islamic Revolution. Before boarding Air Force One at Palm Beach airport in Florida, Trump was asked whether he could resume attacks on Iran. “If they (Iran) act rude or do bad things,” he said, adding, “For now, we’ll watch. That could definitely happen.” He was reported to have received a new military plan on Iran from U.S. Central Command on April 30. Iran also warned of renewed fighting. Mohammad Jafar Asadi, deputy commander of the IRGC’s Khatam al-Anbiya Central Headquarters, told the semiofficial Fars News Agency that a U.S.-Iran clash could resume and said it was being proven that the United States does not keep “any promises or agreements.” The White House has said lobbyist Nick Stewart, who served as a State Department official during Trump’s first term, has joined the Iran negotiating team. CBS, citing officials, reported Stewart was recommended by Jared Kushner, Trump’s son-in-law and a member of the Iran negotiating team, and is known as a hard-liner who strongly supports military action against Iran. Separately, the State Department said on May 1 it fast-tracked approval of $8.6 billion (about 12.6533 trillion won) in arms sales to key regional partners including Israel, Qatar and the United Arab Emirates. The developments have kept tensions high, with both sides continuing to discuss a cease-fire while not ruling out a return to military confrontation. The United States has paused military operations since agreeing on April 8 to a two-week truce with Iran. In a letter to Congress on May 1 marking 60 days since notifying lawmakers about the Iran war, Trump said hostilities with Iran had “ended,” signaling that additional congressional approval would not be needed if the war was no longer continuing beyond the 60-day period. 2026-05-03 16:21:16
  • Homeplus Dropped From Shinhan Bank Employee Loan Program as Restructuring Drags On
    Homeplus Dropped From Shinhan Bank Employee Loan Program as Restructuring Drags On Homeplus, which is undergoing corporate restructuring, has been removed from Shinhan Bank’s list of companies eligible for its “Elite Loan,” a credit-loan product for employees of top-rated firms, industry sources said. The prolonged process is now affecting workers’ personal banking, beyond store operations and dealings with suppliers. According to the retail industry on the 3rd, Homeplus was recently dropped from the Elite Loan program. The product offers preferential loan limits and rates to employees at selected companies. As a result, Homeplus workers were told they may have difficulty extending existing loans under the same terms when their loans mature, the sources said. A Shinhan Bank official said employees were informed that extensions under the product would be difficult at maturity. The official added that being removed from the list does not mean the bank will demand immediate repayment or push borrowers to refinance right away. The bank can extend loans for up to three years, the official said, after which it guides customers to general credit-loan products. In the financial sector, the company’s drawn-out restructuring and delayed wage payments are seen as factors behind the change. Homeplus has delayed wage payments since December last year, and employees have not received last month’s pay. Although its controlling shareholder, MBK Partners, injected 100 billion won in emergency debtor-in-possession financing, most of it was used to cover unpaid wages and outstanding payments. One Homeplus employee said health insurance premiums have been unpaid since last year, making it hard even to get a loan, and repeated wage delays have fueled internal concerns that timely pay will remain difficult. The union, however, said securing funds to restore normal operations should come first, even if it means giving up wages. The Homeplus General Union said wages should be forgone to ensure the money is used entirely to normalize operations and supply goods, adding that all available resources — including workers’ wages, proceeds from the Homeplus Express sale and DIP funds — should be focused on restoring operations. Separately, the Seoul Bankruptcy Court extended the deadline to approve Homeplus’ rehabilitation plan by two months, from the 4th of this month to July 3. The court cited the pending main contract for the sale of Homeplus Express, the company’s supermarket business unit, to NS Shopping under Harim Group. An industry official said proceeds from the Express sale and whether additional operating funds can be secured will be key variables in the restructuring. * This article has been translated by AI. 2026-05-03 16:18:17
  • Builders Jockey for Contracts as Yeouido’s Transit-Linked Rebuilds Gain Speed
    Builders Jockey for Contracts as Yeouido’s Transit-Linked Rebuilds Gain Speed Yeouido’s long-discussed apartment rebuilds are moving into a more active phase, and competition among major builders is intensifying around complexes with the shortest walks to subway stations. Industry officials said Sunday that key redevelopment sites across Yeouido are speeding up steps such as winning approval for maintenance plans and moving toward selecting contractors. At the redevelopment area visited April 29, the shift was visible on the ground. Miseong Apartments sits so close to Exit 6 of Yeouido Station that the entrance is within about a one-minute walk. Miseong began occupancy in 1978 and consists of five buildings, A through E, up to 12 stories (13 stories for Building A), with 577 households. It also includes one commercial building. After reconstruction, it is expected to become a complex of about 1,000 households. Expectations for improved transit access are also high, with the Sinansan Line and GTX-B line planned for the area. Around the complex, banners from major builders including Samsung C&T, Hyundai Engineering & Construction, DL E&C and GS Engineering & Construction were posted, signaling that bidding competition is already underway. The education environment is also cited as a strength. Seoul Yoonjung Elementary School and Yoonjung Middle School sit next to the complex, allowing students to commute by crossing a single signal. However, the close proximity to schools could make issues such as sunlight access a variable during the rebuilding process. Project preparations are also becoming more concrete. Miseong collected opinions from land and property owners late last year and selected Haean Architecture as its designer. A real estate agent near the site said Sunday, “Until recently, consent among owners in the five residential buildings exceeded 50%, and the commercial building has secured consent forms at about 22%.” The agent added, “Once consent reaches 70%, it can move to a general meeting to form an association and then apply for approval.” The agent said Samsung C&T was believed to be the contractor showing the most interest. Next door, Gwangjang Apartments is also undergoing redevelopment. From the complex, crossing a single road leads directly to Yeouido Hangang Park, and residents were seen walking dogs nearby. Gwangjang Apartments is an aging complex, 48 years after completion, located between Yeouido Station and Saetgang. Its combination of access to both the station and the Han River has made it a closely watched redevelopment site. The project is moving quickly. Seoul city on March 11 approved, with revisions, a decision plan for the redevelopment of Yeouido Gwangjang Apartments 38-1. With that, Gwangjang became the ninth Yeouido redevelopment site to finalize its maintenance plan. A central element of the plan is an upgrade in zoning. The site will be rezoned from a third-class general residential area to a general commercial area, applying a floor area ratio of 597%. It is slated to be rebuilt into a complex of 414 households, including 154 public housing units, in towers up to 52 stories. Yeouido’s redevelopment push is spreading beyond individual complexes. Of 15 complexes pursuing reconstruction in Yeouido, nine have passed maintenance plans, putting projects on a firmer track. Hanyang Apartments and Daegyo Apartments are moving fastest after completing approvals for project implementation. Gongjak Apartments has also stepped up activity after selecting a contractor. Sibom Apartments is pursuing a rebuild of up to 65 stories and is aiming to break ground in 2029. Contractor selections are expected to continue for some time. Gongjak Apartments selected Daewoo Engineering & Construction in December 2023, and Hyundai Engineering & Construction was finally chosen as Hanyang Apartments’ contractor in March 2024. Once all projects are completed, Yeouido is expected to be reshaped into a high-rise residential area of about 13,000 households. 2026-05-03 16:15:20