Samsung Union Leader's Controversial Remarks Spark Backlash Ahead of Strike As Samsung Electronics prepares for a general strike on May 21, tensions are rising following remarks made by the union leader targeting the non-semiconductor division. Choi Seung-ho, head of the super union, expressed his frustration by stating, "I can't deal with DX anymore," which has sparked controversy.On May 19, industry sources reported that Choi made these comments in a Telegram chat for union members after the second round of post-adjustments concluded the previous day. He suggested, "Once it's over, let's consider separating the union," and criticized the National Samsung Electronics Union (Jeonsamno) and the Donghaeng Union for their excessive demands.The Jeonsamno and Donghaeng unions, which have a significant number of members from the mobile and home appliance sectors (DX), contrast with Choi's super union, where over 70% of members are from the semiconductor division (DS). Choi's remarks are interpreted as a strong indirect criticism of the excessive performance bonus demands raised by unions focused on the DX sector during negotiations.After receiving backlash from union members regarding his comments, Choi apologized, stating, "I regret posting my grievances in the union's communication channel around 6:50 a.m."However, as news of his remarks spread through anonymous employee communities and open chat rooms, criticism mounted against him. One Samsung employee questioned, "Are we just going to abandon the DX division?" and called for Choi to provide an official explanation.Concerns have been ongoing among DX employees that the union prioritizes negotiations with management focused solely on the semiconductor division, neglecting the voices of those in the DX sector.This is not the first instance of harsh language from the union leadership. Lee Song-yi, deputy head of the super union, also made controversial statements the day before the second round of adjustments, declaring, "I will destroy the company" and "I speak with the resolve to spin off."In response to the growing backlash, Lee clarified that her comments were not about dismantling the company but about correcting improper practices and attitudes.* This article has been translated by AI. 2026-05-19 09:33:28

SK Securities Raises LG Target Price Amid Shareholder Return Expectations SK Securities announced on May 19 that it has raised its target price for LG from 110,000 won to 140,000 won, citing improved performance from subsidiaries and ongoing expectations for additional shareholder returns. The firm maintained its investment opinion at 'buy.' Choi Kwan-soon, a researcher at SK Securities, noted that while LG's consolidated performance was weak in the first quarter due to losses at LG Chem and a decline in rental income, a recovery is anticipated for the year based on profit improvements from major subsidiaries. He projected that LG's consolidated operating profit would increase by 65.5% year-on-year to approximately 1.5 trillion won. Choi emphasized that the key drivers for this performance improvement include increased net income from LG Electronics and expanded equity method gains from LG Chem's return to profitability. He also highlighted the company's dividend payout ratio of 64.9% and stable dividend policy, making it attractive for investors due to its eligibility for separate taxation on dividend income. Furthermore, he mentioned that LG plans to retire 2% of its treasury shares in the first half of this year and currently holds 1.3 trillion won in cash and cash equivalents, reinforcing expectations for additional shareholder returns. Choi indicated that if plans for utilizing the cash after the share buyback are clarified, there could be further re-rating potential. Choi also pointed out that LG's AI research institute has confirmed its competitiveness through a government-led foundation model project, which is a positive long-term outlook factor. He noted that the current price-to-book ratio (PBR) stands at only 0.6, indicating both valuation attractiveness and downside stability.* This article has been translated by AI. 2026-05-19 09:31:52

Ruling Party Criticizes Opposition Leader's Comments on Gwangju The Democratic Party harshly criticized Song Eon-seok, the floor leader of the People Power Party, for his comments made after he did not attend the 46th anniversary ceremony of the Gwangju Uprising on May 18, stating, "He has no right to mention the spirit of Gwangju, akin to 'Biden Season 2.'" Kang Jun-hyun, the party's chief spokesperson, spoke to reporters at the National Assembly on May 19, saying, "It is a day to remember the significance of May 18, yet yesterday, Song made a remark during a meeting that he did not attend because he did not want to go to Gwangju, saying, 'I don't know what might happen there.' He later corrected it to 'I didn't go because I was sad.' This is akin to 'Biden Season 2.'" Kang continued, "Whether it was because he found it dirty or sad, his attitude of acting as if he is a victim for not going to Gwangju is problematic. The constitutional amendment to include the spirit of May 18 was likely hindered by the People Power Party. They have no right to mention the spirit of Gwangju." He emphasized, "It is appropriate to sincerely acknowledge and apologize for past actions. What significance does it hold to make excuses?" Earlier, Song faced backlash after responding to a question from reporters about why he did not attend the May 18 ceremony by saying, "I didn't go because it was dirty." Following the controversy, he clarified that he meant he did not go because he was sad. Additionally, Kang warned against negative campaigning by People Power Party candidates ahead of the June 3 local elections and by-elections. He stated, "The issues surrounding People Power Party candidates Oh Se-hoon and Park Hyung-jun are serious. They have not adequately addressed concerns regarding the missing rebar in the GTX-A line and allegations related to LCT. The recent controversy surrounding candidate Kim Yong-nam should not be treated as a casual campaign tactic of 'let's just throw it out there and see what sticks.'"* This article has been translated by AI. 2026-05-19 09:30:00

Financial Supervisory Service Addresses AI Hacking and Leverage ETF Risks The Financial Supervisory Service (FSS) is intensifying its response to consumer risks associated with cyberattacks utilizing artificial intelligence (AI), the concentration of leverage exchange-traded funds (ETFs), and disorderly recruitment practices by corporate insurance agents (GAs). On May 18, FSS Chairman Lee Chan-jin presided over the second Consumer Risk Response Council, where key issues affecting financial consumers were discussed. This council serves as the highest-level advisory body within the FSS to proactively address potential consumer harm. The potential for cyberattacks using high-performance AI was a major topic of discussion. The FSS expressed concern that AI could quickly identify security vulnerabilities or facilitate simultaneous attacks, leading to significant consumer harm through disruptions in essential banking services. The agency plans to develop response strategies tailored to the characteristics of the financial sector in collaboration with relevant authorities and to enhance information security systems, including the use of generative AI for security purposes. In the insurance sector, issues related to incomplete sales and disorderly practices by GAs were highlighted. Some GAs may encourage unnecessary insurance purchases under the guise of tax, accounting, or labor consulting, or may even engage in illegal private financing. The FSS is considering regulatory reforms, including prohibiting GAs from simultaneously operating consulting services and establishing mutual regulations. In the capital markets, discussions were held regarding investor protection ahead of the launch of single-stock leverage ETFs on May 27. The FSS warned that excessive capital inflow into leverage and inverse ETFs could increase the risk of losses for individual investors and has decided to monitor trading trends and operational status closely. The agency also called for enhanced internal controls regarding securities firms' overseas stock events and investment advertisements. Illegal activities by financial influencers and investment advisors are also under scrutiny. The FSS plans to utilize an AI-based monitoring system to crack down on the provision of illegal investment information and suspicious trading activities on social media in real time. Inspections are being considered for advisory and management firms showing significant signs of illegal activity. Chairman Lee emphasized the need for vigilance regarding the risks and ripple effects associated with the convenience and efficiency of AI use. He stated, "We must respond with a high level of awareness to actions that encourage excessive debt investment and leverage investing, as well as to the disruptive activities of financial influencers and disorderly recruitment practices by GAs."* This article has been translated by AI. 2026-05-19 09:27:00

Shinsegae Group's Response to Controversial Marketing Tied to May 18 Movement Shinsegae Group, led by Chairman Jeong Yong-jin, has taken decisive action in response to a marketing controversy coinciding with the anniversary of the May 18 Democratic Movement. The company abruptly dismissed the CEO of its subsidiary, Starbucks Korea, and initiated disciplinary procedures against related employees. The swift involvement of top management in holding individuals accountable is notable, but whether this issue can be viewed as merely a personnel matter remains to be seen. The controversy centers on specific marketing phrases that evoke sensitive historical events. Criticism has spread online, suggesting that certain expressions recall the May 18 Gwangju Democratic Movement and the torture and death of Park Jong-cheol. While it is difficult to assert that the company explicitly intended this association, it is clear that many consumers felt discomfort and concern as a result. The essence of the matter lies more in the 'outcome' than the 'intent.' Businesses are not merely organizations that sell products; they are entities with social responsibilities. Large corporations and global brands grow based on trust with consumers. In this context, awareness of historical events and social values becomes a crucial evaluation criterion. Therefore, this incident reflects not just a marketing blunder but also the extent to which a company's sensitivity and internal verification systems are functioning. Chairman Jeong's strong response can be interpreted as an effort to mitigate risks early. However, it is worth questioning whether the dismissal of the CEO and disciplinary actions will provide a fundamental solution. The process leading to the public release of a phrase involves planning, review, and approval stages. The failure to filter out problematic content suggests flaws in the organization's overall verification system, extending beyond individual accountability. This incident highlights the importance of 'content risk management,' which is distinct from corporate security or internal controls. Recently, companies have been rapidly deploying marketing strategies centered on social media and mobile platforms. The use of short phrases to capture attention and elicit consumer responses has become commonplace. However, if sensitive expressions are used without sufficient review, the repercussions can extend beyond advertising effectiveness to damage corporate trust. Particularly with issues related to historical events, caution is paramount. In South Korea, May 18 is not merely a past event but is directly linked to current democratic values. Marketing elements that disregard this context inevitably provoke social backlash. This indicates that companies can no longer view historical issues as 'non-business areas.' The swift criticism from labor groups and civil society reflects this understanding. The assessment that the social impact is too significant to dismiss as a mere incident has influenced this response. Even if unintended, if a company causes social conflict, it must take appropriate responsibility. Shinsegae Group's announced measures to prevent recurrence—reviewing marketing processes and enhancing internal training—are valid in principle. However, if these remain merely formal actions, they will lack significance. It is essential to strengthen pre-review systems for sensitive content and improve structures to ensure diverse perspectives are reflected in decision-making processes. In particular, systematic education on historical and social issues should be implemented for teams responsible for brand communication. This incident sends a message that extends beyond a single company to the broader landscape of South Korean businesses. Corporate activities cannot be separated from society, and consumers are increasingly demanding higher levels of responsibility and sensitivity. Brand value stems not from products but from trust, which can be easily shaken by a single phrase. Ultimately, the focus should be on prevention rather than reaction. Whether this response will be a one-time crisis management effort or a catalyst for changing the organization's culture depends on future implementation. Respect for history must become ingrained in corporate culture to reduce similar controversies in the future. May 18 remains a living history. Ignoring the social consensus and sensitivity surrounding it will only increase corporate risks. This incident should remind businesses of the principle that 'standards are more important than speed.' If not, similar issues are likely to recur in different forms. 2026-05-19 09:21:47

Hana Bank Opens Cooling Centers Nationwide Amid Heat Wave Recently, a heat wave reminiscent of midsummer has swept across the country, prompting Hana Bank to take action in collaboration with the Ministry of the Interior and Safety. On May 19, Hana Bank announced that it will operate "cooling centers" at its branches nationwide. In April, the bank signed a memorandum of understanding with the Ministry of the Interior and Safety to promote the use of cooling and heating shelters. The cooling centers are part of the government's measures to combat extreme heat. Previously, these centers were primarily located in public facilities, but this year, the initiative has expanded to include bank branches. Designated cooling centers will feature signage to help the public locate them easily, and they will maintain a comfortable temperature and cleanliness to provide a pleasant resting space. The centers will be open until September 30, operating from 9 a.m. to 4 p.m. Visitors can access any nearby branch, regardless of whether they are Hana Bank customers. The bank also plans to operate heating shelters during the winter months. A Hana Bank representative stated, "We hope this cooling center will serve as a comfortable refuge for people to relax both physically and mentally during the summer heat and heavy rains. We will continue to provide various and practical support for local residents affected by natural disasters such as heat waves and cold snaps."* This article has been translated by AI. 2026-05-19 09:16:21

Plastic Surgeon Charged with Drug Violations Linked to Porsche Crash Police have referred a plastic surgeon to prosecutors for allegedly supplying propofol to a driver who crashed through the guardrail of the Banpo Bridge while driving recklessly in February. According to police on May 19, the Yongsan Police Station sent a 40-year-old male surgeon, identified as A, to prosecutors on May 15 for violations of drug control laws. Investigations revealed that A had excessively administered propofol to over ten patients visiting his clinic since August of last year, and had instructed a nurse to administer the drug even when anesthesia was unnecessary. He is also accused of neglecting the management and supervision of controlled substances at his clinic. The clinic is known to be the workplace of a former nurse, identified as B, who allegedly supplied propofol to a 30-year-old woman, identified as Hwang, the driver involved in the Banpo Bridge accident. In March, police conducted a search of the clinic and secured relevant documents, including prescriptions and records of drug inventory. Prosecutors have charged Hwang with violations of drug control laws, driving under the influence, and causing injury through reckless driving. B was also indicted in March for violations of drug control laws. On February 25 at around 8:44 p.m., Hwang was driving a Porsche on Banpo Road when she crashed through the guardrail and fell below the bridge. Her Porsche collided with a Mercedes-Benz traveling along the riverbank below the bridge before plummeting onto the Han River embankment. Both Hwang and the Mercedes driver sustained minor injuries, and their vehicles were severely damaged. Other vehicles on Banpo Bridge were also affected by the incident. Responding to reports of the crash, police discovered a large quantity of propofol, medical syringes, and tubes in Hwang's vehicle, prompting an investigation. Subsequent inquiries revealed that Hwang had been driving under the influence of propofol, leading to her emergency arrest for drugged driving.* This article has been translated by AI. 2026-05-19 09:11:08

Travel Industry Shifts Focus to Exclusive Experiences The domestic travel industry is moving away from traditional package deals that bundled flights and accommodations. Instead, companies are focusing on building unique digital ecosystems to retain customers while promoting hyper-personalized themed products that cater to niche consumer preferences, such as pet-friendly travel and sports enthusiasts. ◆ Building Exclusive Customer Bases with Mobile Ecosystems and AI Platform companies are leveraging their IT capabilities to establish exclusive customer bases. Kyowon Group's pet-friendly hotel, Kinok, has integrated a QR code-based pet identification registration and management feature through its dedicated app. This initiative aims to provide personalized services based on accumulated data, going beyond simple reservations. Nol Universe has introduced a 'Chat Accommodation' service in the motel category, utilizing interactive AI named Nori. The AI handles routine inquiries in real-time, connecting users to partner operators only for more complex questions. This approach reduces wait times for users and alleviates operational burdens for partners, accelerating digital transformation. ◆ The Rise of the '2040 Enthusiasts' as Key Consumers Major travel agencies are expanding their content-driven themed product offerings to capture the so-called 'enthusiast consumers' who immerse themselves in specific interests. Modu Tour has launched a high-end baseball package that includes a Major League Baseball expert accompanying travelers throughout their trip, providing game previews and interactive programs. Despite the price nearing 8 million won per person, early bookings from passionate baseball fans have been strong. In a similar vein, the company has partnered with the social learning platform Runnable to create an all-in-one 'Run Trip' that combines participation in the December Mount Fuji Marathon with local travel. In fact, Modu Tour's themed travel product booking rate surged by 65% in the first quarter of this year compared to the same period last year, with the 2040 generation making up 87% of users, establishing itself as a key demographic. ◆ Tailored Seasonal Products for High Value The traditional short-distance market is also adopting a diversification strategy, moving away from a supplier-centric approach. In April, Modu Tour sent 19,556 travelers to China, marking a 31% increase from the previous year. Demand for summer peak season bookings has skyrocketed by over 105%. In response, the company has refined its offerings, targeting the 2040 generation with urban culinary experiences in Shanghai and Qingdao, as well as desert experiences in Inner Mongolia, alongside traditional scenic products aimed at older travelers. For Japan's Hokkaido, the company has developed a product that guarantees accommodation in the Biei area, where securing lodging during the summer peak is challenging, combining a relaxed itinerary with local cuisine for a differentiated high-value travel experience. ◆ Efforts to Discover Targeted Exclusive Products through Market Validation There are active attempts to identify exclusive products by thoroughly validating market potential in advance. Hana Tour recently held a travel contest, raising the weight of 'product viability assessment' to 50% to evaluate marketability. This led to the selection of final proposals such as a 'Swiss ESG Train Journey' reflecting the values of a famous celebrity, a 'Daddy and Me Osaka' itinerary designed for affluent relationships, and a 'Small Salon Trip' combining wellness with single accommodations for customers over 40. These proposals will undergo product refinement and are set to be officially launched on June 1. Industry insiders note, "The criteria for consumers choosing travel have shifted from simply 'where to go' to 'who to experience deeply with and what to do.' The ability of travel agencies to create high-quality itineraries that reflect customers' nuanced lifestyles will determine their survival in the market."* This article has been translated by AI. 2026-05-19 09:06:00

AI Dominance Driven by Infrastructure Competition: GPU, HBM, and Power are Key Factors The generative artificial intelligence (AI) industry has not yet fully matured, and it is currently in a transitional phase just before the emergence of a 'dominant design.' As transformer-based large language models (LLMs) rapidly converge to become the de facto standard, the competition for securing graphics processing units (GPUs), high-bandwidth memory (HBM), and power infrastructure is becoming increasingly important. On May 19, the Software Policy Research Institute (SPRI) released a report titled "Software-Centric Society," which assessed the current state of the AI industry as entering a transitional phase in the late fluid period. The term 'dominant design' refers to a phenomenon where a specific technological structure becomes the market standard, altering the competitive landscape of the industry. The report cites the Ford Model T in the automotive industry and the Apple iPhone in the smartphone market as prime examples. Once a particular design establishes itself as the industry standard, the focus of competition shifts from new features to production efficiency and ecosystem competition. The report indicates that the structure of transformer-based LLMs is converging to become the de facto standard in the AI industry. It states, "Almost all major AI companies have adopted transformer-based large language model structures," noting that the industry is currently converging on a specific design at the architectural level. However, it has not yet reached an official standardization phase. There is currently no official API or architectural specifications from international organizations such as the Organization for Economic Cooperation and Development (OECD), the International Organization for Standardization (ISO), or the International Telecommunication Union (ITU), and the revenue models of AI companies have not yet stabilized. In fact, the report highlights that Anthropic spent approximately $4.1 billion solely on research and development computing costs in 2025. The report particularly identifies infrastructure bottlenecks as a key variable in the competition within the AI industry. Currently, HBM supply is concentrated among a few companies, including SK Hynix, Samsung Electronics, and Micron, while systems based on NVIDIA's H100 and H200 have effectively become the standard for AI computing. Power supply issues are also emerging as a critical factor. A single AI training cluster requires hundreds of megawatts (MW) to gigawatts (GW) of power, making transmission capacity, cooling facilities, and power supply capabilities significant constraints on model expansion. The report predicts, "The future dominant design will likely be influenced not only by the excellence of model design but also by the accessibility of infrastructure resources." Furthermore, the report forecasts that if computing efficiency, official standardization, infrastructure supply stabilization, and revenue model stabilization occur simultaneously within the next 2 to 3 years, the transformer-based AI model paradigm is likely to establish itself as the dominant design across the industry.* This article has been translated by AI. 2026-05-19 09:03:35

Kakao Avoids Strike Crisis as Labor Mediation Deadline Extended Kakao's labor and management have temporarily averted a strike crisis by extending the mediation deadline with the labor committee amid disputes over wages and performance compensation. However, concerns remain about potential chain strikes as some affiliates have experienced mediation breakdowns. According to industry sources on May 19, Kakao's labor and management agreed to extend the mediation deadline during a session facilitated by the Gyeonggi Provincial Labor Relations Commission the previous day. The meeting, which began at 4:30 PM, concluded around 10 PM. If both parties reach an agreement, the deadline can be extended by up to 10 days from the date of the mediation request. The second mediation deadline is set for May 27. Kakao's labor union has been negotiating with management over the performance compensation structure and wage increases but declared a breakdown in talks after failing to reach an agreement. In addition to Kakao, unions from four subsidiaries, including Kakao Enterprise and Kakao Pay, have also requested mediation from the Gyeonggi Provincial Labor Relations Commission. Notably, some affiliates decided to halt mediation before Kakao's headquarters. The labor unions of DK Tech and XL Games conducted mediation on the same day but ultimately did not reach an agreement. A halt in mediation is determined when significant differences between labor and management make it difficult to achieve an agreement through further discussions. As a result, these unions have gained the authority to initiate strike actions, such as strikes or work slowdowns, following a vote among their members. The two sides have reportedly disagreed over the funding for performance bonuses and the design of the compensation system. Industry observers note that SK Hynix's recent decision to allocate 10% of its operating profit for performance bonuses may have influenced the demands of Kakao's labor union. With the extension of the mediation deadline, Kakao's headquarters has temporarily avoided a crisis. If the union proceeds to strike after the mediation halt, it would mark the first strike at Kakao's headquarters. The union has announced plans for a rally on May 20 at Pangyo Station in Seongnam, Gyeonggi Province. Industry insiders are watching closely to see if the union will escalate pressure on management during future negotiations. A Kakao representative stated, "The mediation deadline was extended by mutual agreement between labor and management, and we will continue to strive for a smooth resolution."* This article has been translated by AI. 2026-05-19 09:00:47