AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Jung Yeon-woo
  • Paint Industry Faces Dilemma Amid Rising Costs and Stagnant Prices
    Paint Industry Faces Dilemma Amid Rising Costs and Stagnant Prices The domestic paint industry is facing significant challenges as the ongoing conflict in the Middle East drives up prices for key raw materials. The cost of naphtha, a crucial ingredient for solvents and resins, has soared, putting pressure on manufacturers. According to the Korea National Oil Corporation's Petronet, naphtha prices reached $128.56 per barrel at the end of last month, a staggering 67% increase compared to the same period last year. This prolonged situation of sourcing essential materials at over 50% higher prices than last year has led to fears of reverse margins, where companies incur losses with every sale. Despite these cost pressures, the four major domestic paint manufacturers—KCC, Noroo Paint, SP Samhwa, and Gangnam Jevisco—are opting to minimize or forgo price increases to support the construction industry. KCC has completely withdrawn its plan to raise product prices by 10% to 40%, while SP Samhwa has reduced its proposed increase from 20% to around 10%. Noroo Paint has also excluded some products from price hikes and significantly lowered its increase amounts. Gangnam Jevisco has agreed to adjust the timing of its price increases in consultation with specialized construction firms. These companies signed a 'coexistence agreement' on May 7 to alleviate the burden on small and medium-sized construction firms. The rise in raw material prices comes as the paint industry is already grappling with poor performance. KCC reported sales of 6.48 trillion won and an operating profit of 427.6 billion won last year, marking declines of 2.6% and 9.2%, respectively. Noroo Paint's sales fell by 2.9% to 771.1 billion won, with its operating profit plummeting over 30% to 30.2 billion won. SP Samhwa's operating profit dropped to 9.5 billion won, about half of the previous year's figure. As profitability in traditional paint operations declines and the industry becomes more vulnerable to fluctuations in exchange rates and oil prices, experts predict that paint companies will accelerate diversification efforts. KCC is venturing into the 'beauty materials' market based on its silicone business, participating in global cosmetic ingredient exhibitions in France, China, and Thailand to showcase high-performance cosmetic materials. Noroo Paint is focusing on research and development of high-value special coatings, including 13 types of materials for secondary batteries. Samhwa Paint has rebranded itself as SP Samhwa, aiming to transition from a paint manufacturer to an advanced chemical materials company. An industry insider noted, "In the worst conditions of a construction downturn and skyrocketing costs, new business ventures are no longer optional but essential for survival. However, it will take time for these new ventures to translate into actual profits, meaning that management challenges due to cost pressures are likely to persist for the foreseeable future."* This article has been translated by AI. 2026-05-12 04:37:42
  • Small Business Agency Receives Prime Ministers Award for Policy Communication
    Small Business Agency Receives Prime Minister's Award for Policy Communication The Small Business Market Promotion Agency was recognized with a Prime Minister's Award for Policy Communication at the 2025 Policy Communication Awards hosted by the Ministry of Culture, Sports and Tourism. According to the agency on May 11, it has completely overhauled its policy communication system to successfully implement key national tasks, including enhancing public communication, promoting inclusive finance, and revitalizing small businesses and local markets. The agency has focused on improving customer understanding through simplified language in its promotions and strengthened on-site communication. It has also established outreach policy briefings and regional cooperation systems to enhance accessibility to its policies. Additionally, it has disseminated major initiatives such as special support for electricity bills, win-win paybacks, and improvements to policy funding through public-private partnerships and multi-channel promotions. Furthermore, the agency has initiated a digital transformation in policy communication by establishing digital platforms like 'Small Business 24' and 'Small Business 365,' which integrate policy information and application procedures while providing data-driven, customized services. The agency is also committed to enhancing transparency and the effectiveness of policy execution. In February, it held a workshop for over 110 regional heads, center directors, and mid-level managers to share execution strategies and current issues related to key projects such as traditional markets, small business support, policy research, and financial stability, thereby strengthening collaborative efforts across the organization. Kim Tae-yeon, the agency's director, stated, "We will continue to strengthen communication at the grassroots level with small businesses and do our utmost to ensure that the public can feel the results of our policies."* This article has been translated by AI. 2026-05-11 10:49:45
  • Prepaid Funeral Industry Shifts to Total Life Care Model Amid Regulatory Pressures
    Prepaid Funeral Industry Shifts to Total Life Care Model Amid Regulatory Pressures The prepaid funeral industry is accelerating its transformation to overcome stricter regulations on advance payments. Companies are attempting to pivot to a 'total life care' model as a strategy to navigate government pressures. This includes expanding direct funeral home operations and diversifying revenue streams through services related to travel, weddings, and pet care. According to industry sources on May 10, the prepaid funeral sector has a unique accounting structure that differs from traditional manufacturing or service industries. Monthly payments made by customers are recorded as 'deferred revenue'—essentially liabilities—until funeral services are actually rendered. As the number of subscribers increases and cash inflow rises, the debt ratio on the books also increases, often leading to perceptions of financial instability. Additionally, to protect subscriber payments, companies are required to deposit 50% of advance payments into banks or mutual aid associations, effectively tying up half of their funds. Concerns are growing that if the National Assembly and the Fair Trade Commission implement further regulations on advance payment management, the entire prepaid funeral industry could face a severe liquidity crisis. In response to these structural limitations, companies are expanding into total life care services. Notable examples include conversion services linked to cruise travel, weddings, healthcare, and pet funerals. By allowing subscribers to use their accumulated advance payments for a variety of services beyond just funerals, companies are broadening the utility of their prepaid products. This approach enables consumers to access services during their subscription period, diversifying the revenue model that previously relied solely on advance payments. The recent aggressive push to build direct funeral home infrastructure is also part of this revenue diversification strategy. Direct funeral homes can generate additional income through services such as catering and funeral supplies, beyond merely providing a venue. Woojung Free Life secured 15 direct funeral home brands under 'Shilnakwon' last year and has opened a new 'Shilnakwon Seoul Jejung Funeral Home' in Guro-gu, Seoul, enhancing its network in the capital. Kyowon Life opened a funeral home in Chungju this year, expanding its direct funeral home network to eight locations nationwide, with plans to open another location in the second half of the year. Boram Funeral Services has established a stable offline service chain with a total of 13 direct funeral homes across the country. An industry insider stated, "As regulations on advance payment management tighten, companies that cling solely to traditional funeral services will struggle to survive. Ultimately, only those that can transition to revenue generation through direct funeral infrastructure and lifestyle-oriented new businesses will be able to cross the threshold of survival."* This article has been translated by AI. 2026-05-11 04:01:03
  • South Koreas Prepaid Funeral Industry Faces Stricter Regulations
    South Korea's Prepaid Funeral Industry Faces Stricter Regulations The South Korean government is implementing stringent reforms aimed at increasing transparency in the management of prepaid funds within the funeral industry. As the sector reaches a milestone of 10 trillion won in prepaid funds and 10 million subscribers, it finds itself at a crossroads between the need for enhanced transparency and the reality of declining profitability.According to industry sources on May 10, six legislative proposals are currently pending in the National Assembly, focusing on controlling the management of prepaid funds by funeral companies and restricting transactions with major shareholders and related parties. This comes amid growing consumer distrust in the prepaid funeral sector, fostering a consensus on the need for stronger protections for prepaid funds.The core objective of these proposals is to eliminate speculative management of prepaid funds, which are a key asset for funeral businesses. Key provisions include the formalization of principles for managing prepaid funds, prohibiting debt guarantees and collateral provision, and banning loans for equity purchases. Additionally, the proposals aim to enhance oversight of corporate governance by limiting credit extensions to major shareholders, prohibiting unfair internal transactions, and expanding obligations for board resolutions and disclosures.The Fair Trade Commission (FTC) has also announced plans to amend the Enforcement Decree of the Installment Transactions Act and revise guidelines for imposing fines on violators of the Act, with public notices issued between March and April of this year.Notably, there is a shift in the supervisory framework. The existing FTC-centric oversight system will now incorporate the expertise of financial authorities. According to a joint proposal by the FTC and the Financial Services Commission, the FTC will be able to request support from the Financial Services Commission when necessary, and the Financial Supervisory Service will have a legal basis to directly participate in investigations and inspections of funeral companies.While the funeral industry acknowledges the importance of consumer protection, there are concerns that these regulations could threaten business sustainability. The industry relies on managing prepaid funds received from consumers to generate profits. However, increased regulatory restrictions on fund management could significantly reduce operational flexibility.An industry representative stated, "As the number of subscribers grows, the unique accounting structure leads to increased liabilities on the books. If restrictions are placed on the management of prepaid funds, the burden of managing profitability will increase. Limitations on inter-company fund transactions and stricter capital soundness standards could weaken corporate competitiveness in the long term."As South Korea enters an aging society, the scale of the prepaid funeral industry is expanding. According to the FTC, as of March this year, the total amount of prepaid funds in the domestic funeral market reached 10.3348 trillion won, more than tripling from 3.520 trillion won recorded in 2015.Woojung Free Life, the industry leader, reported a cumulative prepaid fund of 2.9118 trillion won at the end of last year and became the first in the sector to surpass 3 trillion won in April this year. Boram Funeral and Kyowon Life are fiercely competing for the second position, with prepaid fund amounts of 1.657 trillion won and 1.6462 trillion won, respectively, as of last year.* This article has been translated by AI. 2026-05-11 03:57:13
  • Ministry of SMEs Encourages Entrepreneurship on College Campuses
    Ministry of SMEs Encourages Entrepreneurship on College Campuses The Ministry of SMEs and Startups is promoting entrepreneurship among young people by visiting college campuses as part of the "Everyone's Startup Project." On May 8, Minister Han Seung-sook and First Vice Minister Noh Yong-seok visited university campuses to raise awareness about the project and engage in discussions with students about entrepreneurship. The application deadline for the project is approaching on May 16. During her visit to Chonnam National University, Minister Han listened to students' discussions and exchanged views on the challenges they face in starting businesses. Meanwhile, Vice Minister Noh visited Hanyang University to observe the atmosphere surrounding youth entrepreneurship and to hear firsthand about the difficulties young people encounter in the startup process and the support they need. The "Everyone's Startup Project" allows anyone with a startup idea to apply for support through the startup platform, with applications closing on May 16. The ministry plans to continue its campus tour at major universities across the country until the application deadline, aiming to broaden its engagement with young people. Feedback gathered during these visits will be incorporated into future policy development. Minister Han stated, "Everyone who takes the first step without fear of failure is already a protagonist in the era of national entrepreneurship. The government will support challenges that lead to innovation."* This article has been translated by AI. 2026-05-08 15:39:35
  • 950 Young Entrepreneurs Launch New Ventures with K-Unicorn Support
    950 Young Entrepreneurs Launch New Ventures with K-Unicorn Support The Small and Medium Business Administration (SMBA) held the "2026 Startup Launch Ceremony" to support the growth of K-Unicorn companies, which are privately held firms valued at over $1 billion. On May 8, the SMBA announced that the event was organized to celebrate the successful start of 950 young entrepreneurs who joined the 16th cohort of the Youth Startup Academy, the 7th global program, and the 1st deep tech program this year.The first part of the event featured a symposium where alumni entrepreneurs Jeong Ji-sung, CEO of SOS Lab, and Han Won-gyeong, CEO of Sunny Side Up, shared their growth experiences and insights. It also included a discussion with Gary Fowler, chairman of GSD Venture Studios, and an "Alumni Day" for networking among current and former participants.The second part included a badge ceremony symbolizing the partnership between the Youth Startup Academy and its participants, along with a joint event to inspire passion and challenge in entrepreneurship, involving the new students and SMBA officials.Additionally, policy advisors provided consultations on funding, workforce issues, and export opportunities through the "On-Site SMBA" initiative, covering areas such as guarantees, investments, certifications, public procurement, and international expansion.The Youth Startup Academy, operated by the SMBA, is a leading program in South Korea that selects promising early-stage startups to assist with investment and market development, aiming to enhance their competitiveness in the global market. Since its inception in 2011, the academy has supported over 10,000 alumni.Recently, the SMBA announced a partnership with KT&G to develop an integrated support system for youth, combining entrepreneurship, mentoring, and cultural programs to boost local economies.SMBA Commissioner Kang Seok-jin stated, "This year, we will strengthen support focused on AI transformation, deep tech, regional innovation, global expansion, and experiential entrepreneurship to help young entrepreneurs become K-Unicorns." 2026-05-08 12:18:38
  • Intensifying Competition in the Heat Pump Market: Strategies of Kyungdong and Kiturami Against Samsung and LG
    Intensifying Competition in the Heat Pump Market: Strategies of Kyungdong and Kiturami Against Samsung and LG The government's policy to promote eco-friendly heat pumps is intensifying competition in the home heating market between major corporations and specialized boiler companies. As of May 7, the boiler industry reports that Samsung Electronics and LG Electronics are leveraging their advanced smart appliance ecosystems and high-efficiency technologies to penetrate the domestic heat pump market. In response, traditional boiler manufacturers like Kyungdong Navien and Kiturami are emphasizing their ultra-eco-friendly refrigerant technologies and exclusive installation infrastructures. Heat pumps are eco-friendly products that provide heating and hot water by utilizing heat from the air, operating similarly to refrigerators and air conditioners. They absorb heat from the air and convert it into high-temperature heat through a compressor, offering high energy efficiency without harmful emissions from fossil fuels. The government aims to install 3.5 million heat pumps by 2035 as part of its 2050 carbon neutrality goal. Given that the installation cost per household exceeds 10 million won, the domestic heat pump market is projected to grow to over 35 trillion won in the next decade. With major companies entering the heat pump market, competition is heating up. Last month, Samsung launched its Korean-style EHS heat pump boiler, which uses an air-to-water method to absorb heat from the outside air. It achieved a seasonal performance factor (SCOP) of 4.9 under floor heating conditions at 35°C, demonstrating energy efficiency by supplying nearly five times the heat energy compared to the electricity consumed. LG also introduced a new integrated heat pump system this month, designed with a structure that combines the outdoor unit and key components, allowing for easy installation without separate refrigerant piping. Traditional boiler manufacturers believe their eco-friendly technologies and extensive service networks will serve as barriers against the advances of large corporations. Refrigerant choice is also a key differentiator. Samsung and LG's heat pumps use the semi-eco-friendly refrigerant R32, which reduces carbon dioxide emissions compared to previous generations but has a global warming potential (GWP) of 675, falling short of the natural refrigerants that meet global environmental standards. In contrast, Kyungdong Navien is targeting the market with the next-generation natural refrigerant R290, which has a GWP of just 3, fully complying with global carbon regulations. Kiturami's Century, a subsidiary specializing in refrigeration and air conditioning, is expanding into the commercial market with R32-based inverter scroll heat pumps. They plan to distribute these systems to public facilities, agricultural sites, and commercial buildings. The decades-long expertise in specialized installation and service networks is also seen as a strong asset for traditional boiler companies. An industry insider noted, "Heat pump boilers require precise installation tailored to existing plumbing designs, pressure balance, and insulation conditions. Poor installation can lead to significant heating efficiency drops or safety issues like freezing and leaks in winter."* This article has been translated by AI. 2026-05-07 22:11:54
  • Hanyuwon Achieves Zero Penalty for Second Consecutive Year in Public Disclosure
    Hanyuwon Achieves Zero Penalty for Second Consecutive Year in Public Disclosure The Korea Small and Medium Enterprises Distribution Agency has demonstrated transparent management by achieving zero penalties for two consecutive years in public institution disclosure checks. According to Hanyuwon, the Ministry of Economy and Finance conducts annual evaluations of public institution management information disclosed through the Alio system to ensure accuracy and reliability. In 2025, Hanyuwon was evaluated alongside 317 mandatory disclosure institutions across 20 categories, including new hires, executive salaries, and employee benefits, and reported no inaccuracies or omissions. To be recognized as an improved disclosure institution, an organization must reduce its penalties by over 50% for two consecutive years. A Hanyuwon representative stated, "We reduced our penalties by more than 50% in 2023 and 2024, achieving zero penalties in 2024 and 2025, which led to our selection as an excellent disclosure institution." Hanyuwon is expected to receive incentives such as exemption from future disclosure checks and preferential treatment in management evaluations. Hanyuwon CEO Lee Tae-sik remarked, "We will not rest on our laurels from this recognition but will continue to provide transparent management information that the public can trust, fulfilling our social responsibility as a public institution supporting the market access of small and medium enterprises and small business owners."* This article has been translated by AI. 2026-05-07 21:28:19
  • Korea Technology Finance Corp. Named First Public-Sector AI Ethics Compliance Body
    Korea Technology Finance Corp. Named First Public-Sector AI Ethics Compliance Body Korea Technology Finance Corp. said it signed an agreement with the National Information Society Agency, or NIA, to promote a trusted public-sector shift to artificial intelligence. The agency said it was also designated the first public institution to be recognized as an “AI ethics compliance organization,” a status that acknowledges its AI use. 7일 기보에 따르면 the agreement was pursued under the “Framework Act on Artificial Intelligence,” which took effect in January, as KOTEC moved to build an AI ethics implementation system in advance and spread a trust-based AI culture to small and venture businesses. Under the agreement, the two organizations will jointly work on AI ethics education and consulting for small and venture firms; publicity and awareness efforts; identifying best practices in public-sector AI transformation cooperation; complying with AI ethics guidelines and establishing AI adoption processes; and running AI ethics training for employees. KOTEC, a technology finance institution under the Ministry of SMEs and Startups, supports innovation and growth among small and venture businesses and has expanded AI use across its work, including technology evaluation, guarantees and corporate support. NIA has operated the AI ethics compliance designation for private-sector organizations since 2024. KOTEC said selection requires at least 70% of employees to complete AI ethics training and for AI ethics principles to be codified. A KOTEC official said the agency has operated its own AI ethics standards since 2024 and met the designation requirements after conducting employee training last month. KOTEC said it will work with NIA’s AI ethics policy and training expertise to systematically manage key risks that can arise in AI use, including bias, personal data protection, explainability and accountability, and to strengthen internal compliance. It said it aims to set an example for public-sector AI transformation as an AI ethics compliance organization. The agency also said it plans to use its support network for small and venture businesses to expand AI ethics education and consulting in the field. Park Ju-seon, KOTEC executive director, said the designation would be used to advance its ethics framework and pursue a responsible AI transition across the agency’s operations.* This article has been translated by AI. 2026-05-07 14:58:08
  • KOSME Selects 10 Teams for In-House AI Transformation Challenge
    KOSME Selects 10 Teams for In-House AI Transformation Challenge The Korea SMEs and Startups Agency, known as KOSME, said it is stepping up efforts to strengthen employees’ artificial intelligence skills and data-use capabilities as organizations move into an era of AI transformation. KOSME said Tuesday that 10 teams have advanced to the finals of its in-house AI transformation, or AX, challenge. The selected teams will begin developing AI-based services aimed at solving on-the-job problems. The AX challenge is an internal innovation competition in which employees identify inefficiencies in their work and build AI-based services to address them, or use AI coding tools to improve tasks. KOSME said the program is designed so nonprofessional developers can lead service development. The challenge is being held in two categories — improving work efficiency and enhancing customer service — and drew 41 submissions. After an internal review, KOSME selected 10 projects it said showed strong creativity and potential for practical use and wider adoption. Selected projects include an “AI-based program to check performance indicators for policy loans,” an “AI-based assistant for corporate evaluation work,” and an “upgrade of the safety and health management system through AI-based ad hoc risk assessments.” KOSME said it will run an intensive training program from May through August to improve AI skills for the 10 teams and provide one-on-one coaching by experts to support implementation and service upgrades. It plans to conduct user testing and verify service stability through October, then select and reward four best cases in November. KOSME previously received the top rating in the Ministry of the Interior and Safety’s “2025 data-based administration evaluation.” It also won a minister’s award at a government innovation competition and received a citation for contributions to promoting the data industry. Lee Byeong-cheol, KOSME’s vice president, said the agency will “strengthen employees’ ability to use AI and continue to produce tangible results in work innovation that the public can feel in everyday life.”* This article has been translated by AI. 2026-05-06 16:51:17