Journalist

Baek So-hee
  • KTX and SRT Begin Joint Test Runs Ahead of Planned September Integration
    KTX and SRT Begin Joint Test Runs Ahead of Planned September Integration South Korea’s KTX and SRT high-speed rail services began test runs on regular commercial routes starting on the 30th, as the operators prepare for integrated operations planned for September. The Ministry of Land, Infrastructure and Transport, Korail and SR said the tests will support a pilot coupled operation that links KTX and SRT trainsets to run as a single train. The test program will be conducted four times through May 14 to make final checks on safety and passenger convenience. Pilot coupled trains that passengers can ride are scheduled to begin service May 15. Test runs are planned as one round trip each on these routes: Gwangju Songjeong Station↔Suseo Station on the 30th; Seoul Station↔Busan Station on May 6; Seoul Station↔Gwangju Songjeong Station on May 12; and Gwangju Songjeong Station↔Seoul Station on May 14. Since the integrated high-speed rail roadmap was announced last December, Korail and SR have checked compatibility of trains, tracks and ticketing and other operating facilities. Since Feb. 25, they have also been running a pilot cross-service operation, with KTX trains serving Suseo Station and SRT trains serving Seoul Station. The coupled operation goes a step beyond cross-service by physically linking KTX and SRT into one train. The two operators have conducted coupling and driving tests at depots and completed software updates and verification reflecting the results, they said. During the test runs, staff from the ministry, Korail and SR will ride the trains to closely check whether key systems — including communications, braking and emergency controls — operate properly when integrated in real operating conditions. Based on the results, the operators plan to refine the integrated operating system, proceed with the pilot coupled operation and finalize an optimal integrated service plan by September before launching operations. Korail President Kim Tae-seung said the company is making thorough preparations for the pilot coupled operation so passengers can experience the safety and convenience of integrated high-speed rail service. He said the remaining steps will be carried out without setbacks to achieve a faster and safer integration.* This article has been translated by AI. 2026-04-30 10:31:03
  • Seoul Apartment Jeonse Deposits Rise 7.6% in Q1; Gangdong Up Nearly 20%
    Seoul Apartment Jeonse Deposits Rise 7.6% in Q1; Gangdong Up Nearly 20% Seoul apartment jeonse deposits rose 7.6% in the first quarter (January-March) from a year earlier, with increases in 24 of the city’s 25 districts, excluding Jongno, according to a report released by real estate information platform Dabang. Dabang said its Q1 2026 “Dabang Yeojido” data put the average jeonse deposit for an 84-square-meter apartment in Seoul at 710.68 million won, up from 660.64 million won in the first quarter of last year. The average sale price for an 84-square-meter apartment in Seoul was 1.19476 billion won, down 293.71 million won, or 19.7%, from the first quarter of 2025. Seocho District had the highest average jeonse deposit at 1.09906 billion won, 388.38 million won above the Seoul average, or 155% of it. Other districts above the citywide average included Gangnam (142%), Songpa (126%), Jongno (120%), Seongdong (114%) and Mapo (112%), with 10 districts in total exceeding the average. Seocho also posted the highest average sale price, at 2.86190 billion won, 1.66714 billion won above the Seoul average, or 240% of it. A total of 12 districts were above the citywide average, including Gangnam (233%), Songpa (181%), Yongsan (180%), Seongdong (151%) and Gwangjin (148%). Gwangjin recorded the biggest year-on-year increase in sale prices, with the average rising 256.91 million won, or 17.0%. Gangdong saw the largest increase in jeonse deposits, up 114.16 million won, or 19.8%. * This article has been translated by AI. 2026-04-30 08:51:16
  • Korea Construction Groups Clash Over Expiring Small-Project Protections
    Korea Construction Groups Clash Over Expiring Small-Project Protections South Korea’s construction industry is heading toward a direct clash as a sunset clause approaches for a “protected segment” in the cross-entry market system. Specialty contractors are calling for permanent safeguards for their right to perform work directly, while general contractors argue the current framework should remain to promote fair competition. According to the Korea Research Institute for Construction Policy on Tuesday, Japan has maintained an “exclusive right” structure in which civil engineering and building contractors hold only oversight authority over specialty contractors, while construction rights require specific experience and qualifications. In the United States, California has also maintained exclusive rights for about 40 specialty building trades when general contractors take on single-trade projects. The institute said that in major overseas markets, specialty contractors — the main actors in direct construction — play a central role, while in South Korea, even after cross-entry was allowed, an unfair registration system has kept specialty firms in a vertical prime-subcontractor relationship. It said a fundamental review of the current production system is urgent. South Korea’s cross-entry system gradually allows general and specialty contractors to enter each other’s markets. To protect small specialty firms, general contractors are barred from winning specialty projects worth less than 430 million won. That protected segment is set to expire in December, and bidding is expected to be allowed starting next year. Specialty contractors say the change could accelerate general contractors’ entry into the specialty market because barriers differ sharply. General contracting licenses cover five categories, while specialty contracting licenses cover 14. Holding a general civil engineering and building license allows a firm to perform 11 of the 14 specialty categories, while specialty licenses — such as for ground formation and paving — have narrower scopes. The institute said the average competition rate for public bids on specialty projects in 2022 rose 3.91 times from 2020. The Korea Specialty Contractors Association and the Korea Mechanical Facilities Construction Association held a news conference Monday outside the Government Complex Sejong and submitted 408,391 petitions from member companies to the Ministry of Land, Infrastructure and Transport. The specialty contractors association said that since the system took effect, general contractors have entered “indiscriminately” into a specialty market where 99% of projects are under 1 billion won, and that the specialty sector is being encroached upon. In the National Assembly, a proposed amendment to the Framework Act on the Construction Industry has been introduced that would raise the protected threshold from 430 million won to 1 billion won. The Korea Construction Association, representing general contractors, is gathering petitions in opposition. It argues the system was introduced to eliminate harmful market segmentation and encourage sound competition, and that the market should not be distorted solely to protect specialty firms. The ministry has been conducting an analysis of the effects of market opening for specialty and general contractors since October last year, commissioning the Korea Research Institute for Human Settlements to carry out the study. * This article has been translated by AI. 2026-04-29 16:01:33
  • Vietnam’s $67B North-South High-Speed Rail Spurs Financing Race as China Emerges Rival
    Vietnam’s $67B North-South High-Speed Rail Spurs Financing Race as China Emerges Rival Vietnam is moving ahead with its North-South high-speed rail project, a national initiative estimated at $67 billion (about 98.9925 trillion won), as China emerges as a major rival in the global bidding race. With a public-private partnership, or PPP, seen as the likely approach, financing capacity is becoming a key factor in who wins contracts. Vietnam has completed a feasibility study and is drawing up plans to tender construction for some sections under a PPP model, the construction industry said April 28. The project would build a 350 kph rail line spanning 1,541 kilometers from Hanoi to Ho Chi Minh City. It also includes related infrastructure: 23 passenger stations, five freight stations and nine depots. More than half of the route is expected to pass through urban areas, and bridges are estimated to account for about 60% of construction. Under PPPs, private firms build and operate public infrastructure while the government provides compensation and policy support. Vietnam, facing costs too large to cover with public funds alone, has sought to boost investment incentives by establishing a PPP law in 2020. It also introduced a loss-sharing mechanism under which the government covers part of the shortfall if revenue falls below 75% of projections. In South Korea, a dedicated task force has been formed centered on Korea Railroad Corp., or Korail, with Korea Overseas Infrastructure & Urban Development Corp., known as KIND, assigned a financing support role. Because a PPP structure is more likely than a standard contracting model, industry officials say competitiveness will hinge not only on technology but also on the ability to raise funds. China, in particular, has become a strong competitor, leveraging its capital strength and experience in Vietnam’s infrastructure market. Chinese President Xi Jinping recently highlighted rail cooperation in talks with Vietnam’s leadership, signaling Beijing’s intent to pursue the project. China has already won and advanced the Lao Cai-Hanoi-Hai Phong railway project. Japan and France are also expected to compete, citing high-speed rail technologies such as the Shinkansen and TGV. A key concern is the scale of South Korea’s financing support. KIND can increase capital up to its statutory limit of 2 trillion won, but its paid-in capital stands at 658.6 billion won, limiting its ability to back a project of roughly 100 trillion won. Additional bond issuance is also capped at no more than five times the combined total of paid-in capital and reserves. Because KIND typically participates through equity investment, its capital ceiling effectively sets its investment limit, sharply reducing capacity as project size grows. Park Yongjeong, head of the industrial research office at Hyundai Research Institute, said large projects make it difficult for domestic companies to raise all investment funds on their own, increasing the need for government support. “Countries or companies that can bring in financing smoothly will inevitably have an advantage,” Park said. Given KIND’s overall limits, “investment capacity is not that large when viewed on a project-by-project basis,” he said, calling for stronger institutional measures to address capital constraints so equity participation and investment capacity can expand. 2026-04-28 15:54:21
  • Hyundai Engineering & Construction Q1 Operating Profit Falls 15.4% to 180.9 Billion Won
    Hyundai Engineering & Construction Q1 Operating Profit Falls 15.4% to 180.9 Billion Won Hyundai Engineering & Construction said in a regulatory filing on the 28th that its first-quarter operating profit on a consolidated basis fell 15.4% from a year earlier to 180.9 billion won, based on preliminary results. Revenue declined 15.8% to 6.2813 trillion won. Net profit rose 24.0% to 206.8 billion won. The company said it expects quarterly profit to improve gradually, citing better profitability in its housing business and the phased completion of high-cost plant projects. Its operating margin held at 2.9%, in line with its full-year target. Orders for the quarter totaled 3.9621 trillion won, with gains in the energy segment including the Pocheon pumped-storage power plant and preliminary work for the Wando Geumil offshore wind project. Hyundai Engineering & Construction said it expects major project awards to pick up from the second quarter, including a U.S. electric arc furnace steel mill, the Palisades small modular reactor (SMR) and the Bokjeong station-area development, making it likely to meet its annual order target of 33.4 trillion won. Its order backlog was tallied at 92.1237 trillion won, equivalent to about 3.4 years of work. Cash and cash equivalents, including short-term financial products, stood at 3.8515 trillion won. The current ratio was 149.8% and the debt ratio was 157.6%. The company said its credit rating is AA-, among the highest in the industry. Hyundai Engineering & Construction said it plans to pursue contracts within the year tied to nuclear power projects including the Palisades SMR and the “Matador Project,” a combined energy and artificial intelligence campus development by U.S. energy developer Fermi America. It also plans to expand its energy business in Europe, including Bulgaria, Finland, Sweden and the Netherlands. A company official said that with external uncertainty persisting, including global geopolitical risks and volatility in raw material prices, the firm is focusing on strict risk management and strengthening its business fundamentals. The official said the company plans to reinforce its energy portfolio, including nuclear power, under a proactive management system to build a resilient business structure that can withstand market shifts. * This article has been translated by AI. 2026-04-28 15:49:30
  • Vietnam Restarts Ninh Thuan Nuclear Project, Intensifying Competition for Early Deals
    Vietnam Restarts Ninh Thuan Nuclear Project, Intensifying Competition for Early Deals President Lee Jae-myung’s recent state visit to Vietnam has sharpened attention among South Korean builders on Vietnam’s large infrastructure pipeline, as expectations grow that the country and the broader Southeast Asian market could open more fully for nuclear power plants and data centers, both still at an early stage. Industry officials expect competition to intensify as companies seek an early foothold. According to foreign media reports cited on April 28, the Vietnamese government recently completed site surveys and approval procedures for Unit 2 of the Ninh Thuan nuclear power project. The Ninh Thuan project, ordered by Vietnam Electricity (EVN), calls for building Units 1 and 2 in Ninh Thuan province with a combined capacity of 4 to 6.4 gigawatts. Unit 1 is targeted to begin operating in 2030 and Unit 2 in 2035. Russia has secured preferred bidder status for Unit 1. The competitive landscape for Unit 2 has shifted after Japan withdrew, citing construction schedule burdens. Korea Electric Power Corp. has moved to enter the bidding, signing a memorandum of understanding with EVN on cooperation in power infrastructure and pushing a “one-team” approach. Unit 2 is planned at 2 to 3.2 gigawatts, with an estimated cost of about $22 billion, or roughly 32 trillion won. South Korean companies are seeking an edge by pointing to experience from the UAE’s Barakah nuclear plant and the Dukovany nuclear project in the Czech Republic. Construction firms are also repositioning. Daewoo Engineering & Construction created a new Global Infrastructure Division by integrating its overseas business and nuclear units to support expansion in nuclear projects. Hyundai Engineering & Construction and POSCO E&C are also preparing to enter the Southeast Asian nuclear market. Companies view the contest as more than a single contract, describing it as a bridgehead into Southeast Asia’s nuclear market. Vietnam’s power generation mix is about 10% gas, 47% coal and 0% nuclear, leaving room for a shift. Under its eighth national power development plan, known as PDP8, the Vietnamese government has set diversification of energy sources, including nuclear, and modernization of power infrastructure as key tasks. Malaysia and Thailand have also formally stated plans to introduce nuclear power, raising expectations that the regional market could expand. With energy security drawing more attention after geopolitical risks in the Middle East, demand for nuclear power is also rising, the article said. “Because Southeast Asia’s nuclear market is still in its early stages, this bidding round will be a turning point that determines who secures an early lead,” an official at the International Contractors Association of Korea said. South Korean builders also cite accumulated experience in Vietnam as a competitive advantage, built through housing and commercial projects as well as plants, bridges and roads. Daewoo E&C pointed to its Hanoi Starlake City mixed-use development, where it handled development, investment and construction, as a flagship success. GS Engineering & Construction has expanded its presence through the Ho Chi Minh City Nha Be new town development and the NSRP refining and petrochemical plant project. Data centers are emerging as another growth area. In line with Vietnam’s digital transformation strategy, builders are pursuing projects that combine data centers with urban infrastructure. Daewoo E&C and GS E&C, working with SaigonTel and FPT Corp., respectively, plan to start with data centers of several dozen megawatts and expand in phases, while also pursuing smart city development. A Daewoo E&C official said Starlake City is a large mixed-use project expected to host relocated central government ministries and major companies, adding that follow-on development is being pursued not only in Hanoi but also in key areas including Ho Chi Minh City. 2026-04-28 15:48:26
  • Hyundai Engineering & Construction Ranks No. 1 Globally in S&P Global ESG Construction Review
    Hyundai Engineering & Construction Ranks No. 1 Globally in S&P Global ESG Construction Review Hyundai Engineering & Construction said April 28 it ranked No. 1 worldwide in the construction sector in S&P Global’s Corporate Sustainability Assessment, part of the Dow Jones Best-in-Class Index (DJ BIC), announced the previous day. DJ BIC is a revamped version of the Dow Jones Sustainability Indices. S&P Global selects the top 10% for sustainability among the world’s 2,500 largest companies by market capitalization. The company said it is the only South Korean builder to be included for 16 consecutive years across all index categories—World, Asia Pacific and Korea. It also said it was named to the “Yearbook 2026” Top 10%, S&P Global’s list of leading companies in the assessment. Hyundai Engineering & Construction attributed the result to steps including a management framework for other indirect emissions (Scope 3), building a companywide ESG IT system, strengthening internal sustainability controls, and disclosing information that includes ESG data from subsidiaries. The company said its ESG performance has also been recognized by major rating organizations at home and abroad. It said it has maintained an integrated A rating for eight straight years from the Korea ESG Standards Institute (KCGS), and earned A ratings from MSCI’s ESG assessment and the Carbon Disclosure Project, receiving strong marks across environmental, social and governance areas. Hyundai Engineering & Construction said it plans to further build trust with global investors and stakeholders by accelerating its shift to renewable energy, developing eco-friendly technologies and strengthening ESG management across its supply chain. A company official said the ranking reflects companywide efforts on climate-change response, safety management and transparent governance, adding that the company will work toward carbon neutrality and creating social value as a global construction leader. * This article has been translated by AI. 2026-04-28 09:55:08
  • 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
  • Korail to Add Train Service for Buddha’s Birthday Holiday in May
    Korail to Add Train Service for Buddha’s Birthday Holiday in May Korea Railroad Corp., known as Korail, said Monday it will expand train service by adding special trains for the Buddha’s Birthday holiday period in May. Korail will operate 38 additional KTX and conventional train services on four routes nationwide, including the Gyeongbu and Honam lines, from May 23 through the substitute holiday on May 25. The added runs will increase capacity by about 19,000 seats. Korail will also add three early-morning KTX services on May 26, the day after the holiday period, to improve commuting convenience. Tickets for the additional trains will go on sale at 10 a.m. on April 28 through Korail’s ticketing website, its mobile app KorailTalk, and station ticket counters nationwide. Lee Min-seong, head of Korail’s customer marketing division, said the operator is increasing service to meet higher travel demand during the holiday and will do its best to provide safe and comfortable service.* This article has been translated by AI. 2026-04-27 15:36:23
  • LH Opens Applications for 1,000 Specialized Purchase-Rental Homes in First Half of 2026
    LH Opens Applications for 1,000 Specialized Purchase-Rental Homes in First Half of 2026 Korea Land and Housing Corp., or LH, said it will begin accepting applications on the 27th for its first-half 2026 call for specialized purchase-rental housing proposals. Under the program, private developers propose and build rental housing tailored to residents’ needs, including dedicated spaces and services. The public sector then purchases the properties and rents them out at lower rates, LH said. Examples include Haesimdang in Seoul’s Dobong district, which supports senior community-building and provides health and care services; Arts Stay in Seoul’s Yeongdeungpo district, which supports young people’s arts and startups; and Dadareum House in Seoul’s Eunpyeong district, which helps people with disabilities live independently. This round seeks about 1,000 units and will use a “private proposal” format, allowing developers to suggest themes such as care and child-rearing, job and startup support, and support for people relocating to rural areas. LH said it will also apply institutional changes starting with this call, including a unified price-calculation method, a cap on total review time, and penalties for poorly run operating organizations, to encourage private participation and ensure stable project delivery. Applications will be accepted through May 11. LH plans document screening in June and a comprehensive review in July before notifying applicants of final results. For selected properties, LH will proceed with appraisals and other steps in October before signing agreements. More information is available in the notice on LH’s Cheongyak Plus platform. * This article has been translated by AI. 2026-04-27 10:57:54