Baemin Reports 53% Growth in Domestic Agricultural Sales This Year Baedal Minjok's direct purchase of agricultural products has seen significant growth this year. The company, which operates Baemin B Mart, announced on June 7 that sales of agricultural products directly sourced from domestic producers increased by 53% from January to May compared to the same period last year. During this time, overall fruit sales at B Mart rose by 61% year-on-year. Seasonal fruits linked to local producers, including strawberries from Gyeongnam's Hadong and Gyeongbuk's Goryeong, melons from Gyeongbuk's Seongju, blueberries from Jeonnam's Damyang and Jeonbuk's Hwasun, and watermelons from Gyeongnam's Haman and Chungnam's Buyeo, drove this growth. Strawberry sales surged by 74%, while melons and tangerines saw increases of 103% and 64%, respectively. Watermelon sales skyrocketed by 271%, and domestic blueberries grew by 132%. Currently, there are 56 farms and businesses across the country that have direct trading contracts with B Mart, with partnerships expanding from Jeju's Seogwipo to Gangwon's Yanggu. B Mart is hosting a promotional event this month to boost local agricultural consumption. The 'Honorary Watermelon' event, running until June 21, offers discounts of up to 45% on watermelons sourced from local producers in regions such as Chungbuk's Eumseong, Chungnam's Buyeo, and Nonsan. Additionally, from June 17 to 23, a meat promotion featuring Jeju pork and Nonghyup's premium beef will offer discounts of up to 50%. From June 24 to 30, B Mart will hold a peach promotion in conjunction with a cafe festival in Gyeongsan, Gyeongbuk, featuring around 7,000 discounted packs of Shinbi peaches from the Gyeongsan Jain Agricultural Cooperative. Jeon Jae-deok, B Mart MD at Woowa Brothers, stated, "We will refine our win-win model that connects B Mart's rapid delivery infrastructure with the expansion of domestic agricultural product sales channels. We will continue to invest and collaborate to establish a platform trusted by both local farmers and consumers."* This article has been translated by AI. 2026-06-07 13:12:00

Gudai Global Appoints Koo Chang-geun as Co-CEO to Strengthen Global Distribution Gudai Global has appointed Koo Chang-geun, the former CEO of CJ ENM and a key architect behind the transformation of CJ Olive Young into an omnichannel beauty platform, as its new co-CEO. This move is seen as a strategic effort to enhance global distribution and improve management systems. The company announced on June 7 that Koo will officially take on the role of co-CEO on June 8. Koo previously worked as an analyst at Samsung Securities before joining CJ Group, where he held various leadership positions, including CEO of CJ Foodville, CJ Olive Young, and CJ ENM. During his tenure at CJ Foodville, Koo led initiatives to strengthen production capabilities and separate the café brand Twosome Place for growth. As CEO of CJ Olive Young, he focused on transitioning the business from a drugstore-centric model to a comprehensive omnichannel beauty platform. Koo has extensive experience in optimizing retail locations, enhancing online shopping platforms, developing private brands, and expanding K-beauty global direct-to-consumer channels, which bolstered the competitiveness of distribution platforms. His appointment aligns with Gudai Global's current efforts to expand its global distribution infrastructure, particularly following the acquisition of Hanseong USA and the launch of its subsidiary in Japan. Gudai Global, which owns 11 brands including Chosun Beauty, Tirtir, and Skin Food, is ramping up its North American and Japanese market strategies, aiming to increase the number of its stores in Sephora to over 1,800 by the end of the year. Koo's experience in platform development at Olive Young is expected to complement Gudai Global's global distribution strategy. CEO Cheon Joo-hyeok stated, "With Koo Chang-geun joining as co-CEO, we can further strengthen our global distribution strategy and management systems. We will write a new chapter for K-beauty together." Koo remarked, "Gudai Global already possesses brands that have proven their potential in the global market. I will lead the expansion of our excellent brand portfolio to reach wider in the global market." Meanwhile, Gudai Global is preparing for an initial public offering (IPO). During a convertible bond investment process last August, the company presented a plan to investors to pursue an IPO within three years. Earlier this year, it selected Mirae Asset Securities as the lead underwriter, with NH Investment & Securities, Citigroup Global Markets, and Morgan Stanley as co-underwriters.* This article has been translated by AI. 2026-06-07 13:00:00

NVIDIA CEO Jensen Huang to Meet SK Group's Chey Tae-won Again NVIDIA CEO Jensen Huang is set to meet with SK Group Chairman Chey Tae-won again. Following their initial gathering over samgyeopsal on the first day of Huang's visit, the two will continue their discussions over Kkanbu Chicken, highlighting the growing collaboration between NVIDIA and SK in AI semiconductors. According to industry sources, Huang is scheduled to meet Chey at Kkanbu Chicken in Gangnam, Seoul, around 7 p.m. This location is notable as it was where Huang held a 'Kkanbu Chicken and Beer' meeting with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun during his visit last year. Huang is expected to attend a ceremonial first pitch at a professional baseball game at Jamsil Baseball Stadium at 5 p.m. before heading to the meeting. The return to the chicken restaurant, which gained attention during last year's gathering, has sparked increased interest from both business and media circles. This meeting occurs amid a series of interactions between Huang and Chey. On June 2, Chey met Huang at Computex 2026 in Taiwan, and on June 5, they gathered again at a samgyeopsal restaurant near Hongdae in Seoul, along with LG Group Chairman Koo Kwang-mo and Naver Chairman Lee Hae-jin. It is reported that Huang's group also visited a nearby chicken restaurant afterward. Chey has previously explained the frequent meetings with Huang as a reflection of their mutual trust and reliance. With SK Hynix being a key supplier of high-bandwidth memory (HBM) for NVIDIA's AI accelerators, the connection between the two companies' executives is becoming increasingly significant. The ongoing meetings between Chey and Huang are interpreted as more than just social gatherings; they are expanding to cover topics such as post-HBM4 supply collaboration, AI data centers, and next-generation packaging responses. Industry insiders believe that discussions on the AI semiconductor supply chain, HBM, and AI data center collaboration will be major agenda items during this meeting. SK Hynix has established itself as a core partner for NVIDIA's HBM, and SK Group is pushing to expand its AI value chain beyond semiconductors to include energy and data center infrastructure. An industry source remarked, "The fact that Jensen Huang repeatedly meets with Chey Tae-won in Korea underscores the weight of the collaboration between SK and NVIDIA. While the scenes of chicken and samgyeopsal may seem lighthearted, they actually reflect high-level coordination around the AI semiconductor supply chain."* This article has been translated by AI. 2026-06-07 12:42:00

Shinhan Asset Management's Lee Seok-won: Transforming ETFs into Key Players In the financial industry, latecomers have two strategies: follow the leaders or create new markets. Lee Seok-won, CEO of Shinhan Asset Management, chose the latter. A former head of the National Pension Service's strategy division, he has rapidly transformed the organization since taking the helm this year, focusing on ETFs and Target Date Funds (TDF) as dual growth pillars. He is particularly expanding differentiated products centered around the SOL ETF, including high-dividend, covered call, AI semiconductor, and shipbuilding offerings to enhance the company's presence. Lee's entrepreneurial spirit in finance prioritizes understanding customer demand over competing on scale. He is currently experimenting with transforming Shinhan Asset Management into an "irreplaceable partner for customers." Rethinking the ETF Market: A Contrarian Approach The domestic asset management industry has long been dominated by Samsung Asset Management and Mirae Asset Management, making it challenging for latecomers to disrupt the market. Most follow the lead of top products or engage in fee competition. However, Lee's approach was different. Shortly after his appointment, he elevated the ETF business to a strategic priority, establishing a dedicated ETF business group and expanding the organization. He brought in a Chief Investment Officer (CIO) and implemented a group leader system to enhance decision-making speed. This was not merely a reorganization; it was a declaration to make ETFs a future growth driver for the company. The results have been swift. The net assets of the SOL ETF surged from approximately 12 trillion won at the end of 2024 to over 23 trillion won by the end of May 2026, marking an exceptional growth rate in the industry. Notably, products focused on AI semiconductors, covered calls, and high dividends have captured the interest of individual investors, establishing themselves as flagship offerings of Shinhan ETFs. Lee does not view ETFs as mere financial products. He sees them as financial platforms connected to investors' lives. For retirees seeking monthly dividends, he offers covered call ETFs, while growth-oriented investors can access AI semiconductor ETFs. His strategy involves designing products based on customer needs. Ultimately, his approach is straightforward: instead of following the leaders, he aims to create the markets that customers desire. This is the first hallmark of Lee's entrepreneurial spirit in finance. Connecting Pensions and ETFs: Designing a Long-Term Investment Ecosystem Viewing Lee solely as an ETF expert is only part of the picture; his true strength lies in pensions. He previously served as the head of the National Pension Service's fund management division, making him an expert in pension management and long-term asset allocation. This experience is reflected in his management of Shinhan Asset Management. Lee is optimistic about the future of the pension market, as South Korea transitions into a super-aged society, making pensions a significant growth area for the financial industry. Consequently, he is focusing on strengthening the TDF business. By establishing the Shinhan Easy TDF and Shinhan Quick Response TDF systems, he is expanding the market. As a result, the TDF management scale at Shinhan Asset Management has rapidly increased, along with its market share. What he emphasizes is not merely selling products but fostering a culture of long-term asset management. Korean investors still engage heavily in short-term trading. However, in an aging society, long-term investment and asset allocation are crucial. Lee aims to create this investment culture by linking ETFs and pensions. In fact, he stated in an interview, "Maximizing the economic benefits for customers is the reason for an asset management firm's existence," indicating a focus on viewing customer assets from a long-term performance perspective rather than short-term gains. Thus, his management philosophy leans more towards trust than growth. He believes that building trust is essential for customers to entrust their retirement assets. Pensions do not yield results overnight; they require 10 to 20 years. Lee is a CEO who invests in that time. Productive Finance and Digital Assets: A Leader Preparing for the Future Another characteristic of Lee is his interest in future markets. He does not limit himself to ETFs and pensions; he is also active in investing in innovative companies and digital assets. Shinhan Asset Management has established an Innovative Investment Finance Division and launched a Business Development Company (BDC) fund. This represents a prime example of productive finance, aimed at directing capital towards innovative companies. It signifies a commitment to not just managing money but also nurturing growth companies. Lee's interest in digital assets is also high. Recently, Shinhan Financial Group has established a cooperative framework with the Canton Network, which includes global financial institutions. This is a global project aimed at building infrastructure for tokenization and digital assets. Lee envisions enhancing the global competitiveness of Korean financial products through this initiative. This is not merely about adopting technology. He sees the future of finance shifting towards digital assets and tokenization. While it may not be a large market now, he believes it could become a crucial component of financial infrastructure in the future. Especially in the age of AI, he emphasizes to his team members, "Let’s become irreplaceable talents." In an era where AI replaces simple tasks, expertise and differentiation become increasingly important. This message applies not only to the organization but also to Shinhan Asset Management itself. In the ETF market, pension market, and digital asset market, the goal is to become an irreplaceable asset manager. Ultimately, Lee's entrepreneurial spirit in finance can be summarized in three pillars: customer-centricity, long-term investment, and future innovation. He is currently working to transform Shinhan Asset Management from a mere asset manager into a lifelong partner for investors. SWOT Analysis:Strength: Lee has extensive experience in long-term asset allocation and pension management as a former head of the National Pension Service's strategy division. He has rapidly restructured the ETF organization and led the growth of the SOL ETF while balancing the simultaneous growth of pensions and ETFs.Weakness: Compared to Samsung Asset Management and Mirae Asset Management, Shinhan Asset Management still has limited market dominance and brand power. The growth of ETFs is also concentrated in a few popular products, which poses a challenge.Opportunity: The expansion of the pension market due to aging, the increase in individual investor ETF participation, and the growth potential of digital assets and tokenization present significant opportunities for Shinhan Asset Management.Threat: Intensifying fee competition in the ETF market, polarization in the asset management industry, and increasing global market volatility remain ongoing risks. Regulatory changes related to digital assets also pose uncertainties.* This article has been translated by AI. 2026-06-07 12:39:00

South Korea posts 2nd-fastest OECD growth on chip boom, but long-term risks mount SEOUL, June 7 (AJP) - South Korea posted the second-fastest economic growth among major economies in the first quarter, driven by a semiconductor boom. According to data released by the Organization for Economic Co-operation and Development (OECD) on Sunday, South Korea's real gross domestic product (GDP) grew 1.7 percent in the first three months of this year, ranking second among 35 member countries. Only Denmark grew faster at 1.9 percent, while the OECD average stood at 0.4 percent. South Korea's strong performance marked a dramatic reversal from the fourth quarter of last year, when its economy contracted 0.2 percent and ranked near the bottom among OECD member countries. The rebound has been fueled largely by strong semiconductor exports as global demand for artificial intelligence (AI)-related technology continues to surge, prompting international organizations and investment banks to raise their growth forecasts for South Korea. Robust exports have also pushed the country's current account surplus to record levels. The cumulative current account surplus reached an all-time high of $102.7 billion in the first four months of this year, more than four times the level recorded a year earlier. Reflecting this trend, the OECD recently raised its growth forecast for South Korea to 2.6 percent from 1.7 percent, while several global investment banks have become even more optimistic, with some projecting economic growth of around 3 percent this year. The OECD expects the surplus to expand further, potentially reaching around 10 percent of GDP by 2027 if exports remain strong. South Korea is "projected to have a sharp increase in its external balance, from 6.6 percent of GDP in 2025 to around 10 percent of GDP in 2027, helped by continued strong IT-related exports," it said. Despite the upbeat outlook, concerns remain over the country's long-term growth potential, as the OECD projects that South Korea's potential growth rate, a measure of how fast the economy can grow without triggering inflation, will fall to 1.52 percent next year and dip below 1.5 percent by late 2027, the lowest level since it began compiling such data. The contrasting outlook suggests that South Korea's short-term economic strength, powered by a historic chip boom, masks longer-term challenges including an aging population, slowing labor productivity, and weak domestic demand. The weakening won also adds to worries, as the currency recently fell to around 1,560 against the greenback, its weakest level in more than 17 years, last seen during the global financial crisis in March 2009 when it hit almost 1,600. Consumer prices also rose 3.1 percent last month from a year earlier, surpassing the 3 percent mark for the first time in more than two years. Financial officials said the economy remains fundamentally sound, pointing to record current account surpluses and strong exports, though they admitted that rising import costs and a weaker currency could weigh on households and businesses in the months ahead. 2026-06-07 12:29:20

Government Should Address Housing Instability, Not Just Gangnam Home Prices Home prices in Gangnam, Seoul, are once again on the rise. In key areas such as Banpo, Apgujeong, and Daechi-dong, record-high transactions are occurring. Some complexes have seen price increases of tens of millions of won in just a few months. As a result, there is growing interest in the new government's additional real estate measures. President Lee Jae-myung has also hinted at the possibility of further actions, stating, "Real estate prices are excessively high."However, if the government begins to target Gangnam home prices as a policy goal, the market will once again become a political issue. The real problem that the government needs to address is not the prices in Gangnam, but the housing instability felt by the public.First, it is essential to clarify the reality of housing instability. The anxiety that citizens feel today is not solely due to the high prices of apartments in Gangnam. Young people are losing hope of owning their own homes. Newlyweds are struggling with the burden of jeonse (long-term lease) and monthly rent. The middle class is torn between concerns about their children's education and housing issues. Retirees are worried about rising housing costs. Coupled with jeonse fraud and uncertainties in the rental market, housing instability has become one of the biggest burdens in people's lives.Policies should focus on resolving this issue.Of course, this is not to say that we should ignore Gangnam home prices. Real estate in Gangnam still serves as a benchmark for the Seoul housing market. When prices rise in Gangnam, the upward trend spreads to nearby areas, which in turn affects the rental and sales markets across the metropolitan area. There is a certain connection between Gangnam home prices and housing instability.However, making the control of Gangnam home prices the primary policy goal is problematic. The prices in Gangnam are not just simple housing costs; they are the result of decades of accumulated factors such as education, transportation, healthcare, culture, proximity to workplaces, and social preferences. While supply is limited, demand remains steady. Attempts to control such a market solely through taxes or regulations have historically failed.In fact, past governments have employed various policies, including strengthening the comprehensive real estate tax, increasing capital gains tax, and imposing lending and transaction regulations, to suppress Gangnam home prices. While some measures were effective at times, they ultimately resulted in cycles of price increases and decreases without addressing the fundamental issues.That said, it is not necessary to conclude that all regulations have failed. Expanding the supply of public rental housing and supporting vulnerable groups in housing have yielded certain results. The problem lies in the fact that policies focused solely on price suppression have not changed the structural demand of the market.So, what is the solution?First, there needs to be stable supply. However, we should not view supply expansion as a panacea. Easing regulations on reconstruction and redevelopment could stimulate market expectations in the short term, leading to price increases. This could also exacerbate housing instability for existing tenants. Therefore, the direction of supply expansion is more important than the speed. Quality housing supply for actual demand, increased public housing for young people and newlyweds, and the expansion of long-term rental housing should be pursued together.Second, we must restore the housing ladder. The most serious issue now is that young people and the middle class are losing hope of being able to buy homes through their efforts alone. Housing policy should aim not just at price control but at providing citizens with predictability for their future.Third, we need to address the issue of concentration in the metropolitan area. The essence of South Korea's real estate problem is not the houses themselves but the movement of people. Because good jobs, education, culture, and healthcare infrastructure are concentrated in Seoul, people flock there. The rise in Gangnam home prices is more of a result than a cause.While some regions face serious population decline and unsold properties, Seoul worries about a lack of supply. One area has surplus housing while another faces shortages. This is not just a failure of real estate policy but a failure of national balanced development.Ultimately, housing policy must be linked to industrial policy. If we cannot change the structure that concentrates advanced industries like AI, semiconductors, biotechnology, and future mobility in Seoul, it will be difficult to resolve the concentration of housing demand. Regional hub cities like Daejeon, Gwangju, Daegu, Busan, Ulsan, and Jeonbuk must develop quality jobs and innovation ecosystems to disperse both people and businesses.The way to surpass Gangnam is not to suppress it but to create more cities that are as livable as Gangnam.If the government is preparing real estate policies, it should not be trapped by the political symbolism of Gangnam home prices. What the public desires is not a drop in prices in a specific area but a stable life. A society where people can have hope for home ownership, live without worrying about rent, and enjoy good job and educational opportunities in their regions is a true housing stability society.The foundation is housing stability. The principle is to protect actual demand. The common sense is to focus policy efforts not on fighting home prices but on reducing public anxiety.The government should not focus on Gangnam home prices but on the housing instability faced by the public. The solutions lie not only in regulation and taxation but also in supply, balanced development, and regional growth strategies.This approach will not only address real estate issues but also enhance South Korea's future competitiveness.* This article has been translated by AI. 2026-06-07 12:09:00

Aftermath of Voting Paper Shortage: Investigation and Protests Continue The shortage of ballots that prevented some voters from casting their votes during the June 3 local elections has entered a phase of investigation. The police have begun looking into allegations against Noh Tae-ak, the chair of the National Election Commission, as calls for constitutional complaints and re-election protests grow. According to legal sources on June 7, the Seoul Metropolitan Police Agency's Special Investigation Unit will conduct an investigation of complainants against Noh and others starting at 9:30 a.m. on June 8. The Citizens' Livelihood Countermeasure Committee (CLCC) has accused Noh and others of dereliction of duty and obstruction of the exercise of rights. The day before, they submitted an amended complaint adding charges of embezzlement and breach of trust. In addition to the CLCC, several civic groups have filed complaints. Six organizations, including the Speculation Monitoring Capital Center, the National Solidarity, the Justice Coalition, and the Mugunghwa Club for Rule of Law and Democracy, submitted complaints to the National Investigation Headquarters through the National Petition Office. They included all eight members of the National Election Commission as targets of their complaints. The police are reportedly focusing on legal reviews. Given the rarity of cases where a failure to predict election demand resulted in a ballot shortage, they are examining relevant precedents and the applicability of the law. The police plan to verify whether the Election Commission adhered to its standards for ballot distribution and the decision-making process through data collection and interviews with involved parties. Justice Minister Jeong Seong-ho also addressed the seriousness of the situation. Minister Jeong stated, "This is a serious issue that severely infringes upon the fundamental democratic right of voting, which is inviolable for the people. I expect that strong and effective measures that the public can accept, including a special investigation or a national inquiry, will be taken promptly." However, he added that he would respond strictly to conspiracy theories regarding fraudulent elections. A constitutional complaint has also been filed, claiming that the mismanagement of ballots by the Election Commission violated voting rights. On June 5, two constitutional complaints were submitted to the Constitutional Court, asserting that the ballot shortage infringed upon voting rights. Both complaints were filed by ordinary citizens, who argue that the Election Commission failed to prepare a sufficient number of ballots, thereby violating their voting rights. Meanwhile, protests demanding a re-election have continued for three days, condemning the ballot shortage. On this day, citizens gathered near the handball stadium in Olympic Park, Songpa District, Seoul, to demand a re-election. Participants shouted slogans calling for a re-election near the entrance of the ballot counting center. This protest is reportedly being conducted spontaneously without a designated organizing group. Participants held placards demanding a re-election and waved national flags. Some citizens have been seen staying overnight since the previous day. Although the number of participants, which unofficial police estimates had reached tens of thousands the previous afternoon, decreased overnight, citizens continued to arrive throughout the day. The protesters had previously blocked the movement of Election Commission staff and some reporters inside the counting center, opposing the opening of ballot boxes. It was reported that the staff inside left the venue early in the morning. Currently, police have set up barricades around the entrance of the counting center to control access. The protests began after some voters were unable to cast their votes due to a shortage of ballots at the Second Polling Station in Jamsil 7-dong on the main voting day, June 3. Citizens gathered at the site to protest, blocking the removal of ballot boxes, and after two days of standoff, police transported the ballot boxes on the morning of June 5. Following this, the protesters moved to the handball stadium in Olympic Park, where they continue to demand a re-election.* This article has been translated by AI. 2026-06-07 12:09:00

Korean Deputy Finance Minister Huh Jang Attends OECD Council Meeting Huh Jang, Deputy Minister of Finance, stated that "cooperation based on openness and norms, along with innovation and productivity enhancement, is essential for restoring global economic growth." According to the Ministry of Finance, Huh attended the OECD Ministerial Council in Paris on June 3-4. This year marks the 30th anniversary of South Korea's membership in the OECD, and the country served as the vice-chair of the council, leading discussions and agenda-setting. Huh proposed collaborative measures to overcome recent economic crises and restore global economic momentum. He emphasized South Korea's commitment to actively participate in OECD discussions on global issues and strengthen cooperation with member countries to fulfill its responsibilities. "Smooth cooperation requires collaboration based on openness and norms, as well as innovation and productivity enhancement," Huh said. He stressed the need for "inclusive and forward-looking efforts" in the face of rapid changes such as artificial intelligence and climate change. Huh chaired a discussion on improving regulatory frameworks to promote competitiveness. Participating member countries agreed on the need to simplify regulations to ease the burden on businesses, create a fair competitive environment, and establish data governance for the free flow of trustworthy data. They requested the OECD to provide guidelines and develop standards to facilitate these efforts. During the council meeting, Huh also held bilateral discussions with OECD Chief Economist Stefano Scarpetta and officials from the French Ministry of Economy and Finance and the central bank. In his meeting with Scarpetta, Huh explained that the South Korean economy is showing a solid recovery, having recorded a 1.7% GDP growth rate in the first quarter of this year. Scarpetta responded positively, adjusting the forecast for South Korea's economic growth from 1.7% to 2.6% for the year. In subsequent meetings with Bertrand Dufour, Director General of the French Ministry of Economy and Finance, and Agnès Benassi-Kéré, Deputy Governor of the French central bank, both countries expressed their commitment to strengthening economic cooperation. They also agreed to continue collaboration within frameworks such as the G7 and G20, while seeking ongoing financial and economic cooperation between South Korea and France. Additionally, they reached a consensus on the necessity of public development assistance (ODA) and private financing for developing countries, agreeing to expand cooperation in development finance. Meanwhile, Huh conducted an investment briefing on the South Korean economy for major European investment institutions, attended by executives from French investment banks and asset management firms.* This article has been translated by AI. 2026-06-07 12:09:00

Financial Supervisory Service Targets Illegal Lending Practices Amid Rise in Borrowers The Financial Supervisory Service (FSS) is taking action to eradicate predatory financial practices targeting low-income and vulnerable groups, including illegal debt collection and violations of maximum interest rates. The FSS announced on June 7 that it will conduct on-site inspections of lenders and online lending brokerage sites from June 8 to August 28. Approximately ten companies will be selected for inspection based on complaints, reports, and past inspection records. This initiative comes as the number of borrowers has increased for the first time in five years, driven by low-credit and low-income individuals facing difficulties accessing first-tier financial institutions. The FSS aims to prevent illegal and unfair practices targeting these vulnerable groups. The inspections will focus on malicious practices that exploit borrowers' lack of information or precarious situations, particularly in the areas of illegal debt collection, violations of legal maximum interest rates, and connections to illegal private financing. In the illegal debt collection sector, the FSS will examine cases involving collection efforts on debts that have been discharged through bankruptcy or are under debt adjustment procedures, as well as coercive collection practices involving third parties such as family members or colleagues. Violations of maximum interest rates will also be a key focus. The FSS will investigate instances where lenders execute high-interest loans under the guise of assessing repayment ability or engage in practices like 'bait loans' and 'trick loans' that inflate effective interest rates by deducting upfront fees. Inspections of online lending brokerage sites will be conducted in collaboration with the Gyeonggi Province Special Judicial Police. The FSS plans to verify whether users' personal information is being illegally transferred to private lenders, leading to unsolicited loan offers. An FSS official stated, "If illegal activities are discovered, we will take strict action in accordance with relevant laws. We will prioritize borrower protection by halting illegal debt collection and invalidating interest rates that exceed the maximum limit, while also working with special judicial police to close gaps in the oversight of registered lenders and investigations into illegal financing."* This article has been translated by AI. 2026-06-07 12:03:00

AI Reduces Work Hours by 1.5 Weekly, But Productivity Gains Lag A recent analysis by the Bank of Korea revealed that while the introduction of artificial intelligence (AI) has reduced work hours by an average of 1.5 hours per week, it has not translated into increased productivity. This phenomenon, termed 'productivity disconnect,' arises because AI implementation has not led to organizational redesign or workforce reallocation. According to the 'BOK Issue Note: Does AI Increase Productivity? An Analysis of Initial Three-Year Effects' released on June 7, AI usage has been shown to shorten work hours by an average of 3.8%. This equates to a savings of approximately 1.5 hours per week. The time-saving effects of AI are particularly pronounced among low-skilled workers and those who heavily utilize AI. The Bank of Korea noted that as proficiency in AI increases, the marginal efficiency gains from technology adoption also rise. Furthermore, AI helps to mitigate productivity gaps among low-skilled workers by compensating for their lack of experience. When translating these reductions in work hours into potential productivity gains, the Bank estimates an increase of about 1.0%. However, the time saved through AI usage has not resulted in actual production increases. The correlation between individual reductions in work hours and increases in work output was estimated to be zero. The Bank explained that while AI has improved efficiency at the individual task level, its benefits have not spread to enhance overall workflow, organizational structure, or workforce reallocation, leading to the observed 'productivity disconnect.' Bottlenecks in production processes and distortions in performance reward systems were also identified as factors hindering productivity transformation. Conversely, groups with strong performance incentives and high job autonomy have seen productivity gains. This includes self-employed individuals, professionals, and intensive AI users. By age group, younger workers (ages 15-39) increased their output by approximately 0.6 percentage points more than those aged 50-64. The Bank interprets this as a result of younger workers' greater adaptability to digital technologies, allowing them to connect AI usage more effectively to productive activities. In terms of occupation, professionals increased their output by 0.7 percentage points more than office workers, while the top 50% of AI users demonstrated a 0.5 percentage point greater improvement in productivity compared to the lower half. This suggests that higher intensity of AI use is likely to overcome initial friction costs, such as learning expenses and validation burdens, leading to tangible productivity enhancements. Oh Sam-il, head of the Bank's Employment Research Team, stated, "Currently, AI has entered the 'efficiency' stage but has not yet fully transitioned to the 'productivity' stage. This can be viewed as a typical transition process in the early stages of adopting a general-purpose technology. Depending on future policy responses and changes in corporate organization and labor market structures, the productivity trajectory could change significantly." He added, "To realize the productivity effects of AI, it is crucial to redesign work processes and organizational structures, reallocate job roles, and establish performance-based incentive systems. Continuous monitoring of changes in the skill development pathways for younger workers is also necessary."* This article has been translated by AI. 2026-06-07 12:03:00