Weather Forecast: Rain Expected Across Most of the Country on Saturday On May 23, overcast skies will prevail nationwide, with rain expected in most areas. Dense fog is anticipated in the mountainous regions of Gangwon and some inland areas, prompting caution for traffic safety. According to the Korea Meteorological Administration, rain will begin in Busan, Ulsan, and the eastern coast of North Gyeongsang Province from early morning until the afternoon, spreading to most of the country except for the eastern coast of Gangwon. Expected rainfall amounts are less than 5 mm in Seoul, Incheon, Gyeonggi Province, inland and mountainous areas of Gangwon, Chungcheong, Jeolla, Gyeongsang, and Jeju Island, while the five western islands may see 5 to 10 mm. The weather agency advised that roads may become slippery and visibility could be reduced in areas experiencing rain, urging drivers to maintain a safe distance and reduce speed. In the mountainous regions of Gangwon, visibility may drop below 200 meters due to dense fog, while inland areas of Jeolla are expected to see visibility under 1 kilometer. Maritime conditions are also expected to be poor. Thunderstorms and gusty winds may occur, particularly over the Yellow Sea, where dense sea fog is likely. On the eastern coast, high waves may wash over breakwaters and sandy beaches due to swells, necessitating extra caution for coastal safety. Morning low temperatures are forecasted to range from 10 to 16 degrees Celsius, with daytime highs expected between 18 and 24 degrees. Key morning low temperatures include: △Seoul 15 degrees △Incheon 15 degrees △Suwon 14 degrees △Chuncheon 12 degrees △Gangneung 13 degrees △Cheongju 14 degrees △Daejeon 14 degrees △Jeonju 14 degrees △Gwangju 14 degrees △Daegu 14 degrees △Busan 16 degrees △Jeju 17 degrees. Daytime highs are expected to be: △Seoul 24 degrees △Incheon 23 degrees △Suwon 23 degrees △Chuncheon 23 degrees △Gangneung 20 degrees △Cheongju 24 degrees △Daejeon 24 degrees △Jeonju 25 degrees △Gwangju 24 degrees △Daegu 22 degrees △Busan 21 degrees △Jeju 22 degrees. Air quality is expected to be rated 'good' across all regions.* This article has been translated by AI. 2026-05-23 19:27:24

Huons to Absorb Subsidiary Huons Life Science in Merger Huons plans to absorb its wholly-owned subsidiary, Huons Life Science, in a merger. The company is moving forward with the process, relying solely on board approval without holding a separate shareholders' meeting. On May 22, Huons announced that its board of directors had completed the resolution for the small-scale merger with Huons Life Science. During the period for shareholders to express dissent, only 59,403 shares were opposed, representing about 0.5% of the total issued shares. This falls below the 20% threshold required by law to block a small-scale merger, allowing the board's approval to substitute for a shareholders' meeting. The merger involves Huons absorbing its 100% owned subsidiary without issuing new shares, resulting in a merger ratio of 1 to 0. Under the small-scale merger procedure, shareholders will not be granted the right to request stock buybacks, and there will be no dilution of existing shareholders' stakes. Market analysts interpret this announcement as more than just a simple consolidation of subsidiaries. Typically, the absorption of a wholly-owned subsidiary aims to eliminate redundant costs, unify research and development and business organizations, and simplify governance structures. The final merger date is set for June 23. Huons had previously disclosed its plan for the small-scale merger on April 22.* This article has been translated by AI. 2026-05-23 19:24:43

Samsung Electronics and SK Hynix Leverage ETFs Set to Launch The domestic exchange-traded fund (ETF) market is witnessing intense competition as the first single-stock leverage products are set to debut. The "Samsung Electronics and SK Hynix Leverage" ETFs will be listed on May 27, with most asset management firms offering the lowest total fees in the industry, leading to a lack of differentiation among the products from an investor's perspective. According to the financial investment industry on May 22, among the eight asset management firms launching single-stock leverage ETFs, Mirae Asset, Korea Investment Trust, KB, Hanwha, and Hana Asset Management have set their total fees at an annual rate of 0.0901%. Initially, Mirae Asset Management started the competition by advertising the "lowest fee in the industry," but competitors quickly followed suit by lowering their fees to match this rate. On May 21, Hanwha Asset Management reduced the total fee for its Samsung Electronics leverage ETF from 0.10% to 0.0901%. On May 22, KB Asset Management, Hana Asset Management, and Korea Investment Trust also adjusted their fees from 0.0910% to 0.0901%. Single-stock leverage ETFs are designed to track the daily returns of specific stocks at double the rate. Given that these products are based on the same underlying assets, it is challenging to differentiate them in terms of structure or returns, making total fees the primary competitive factor. However, with major asset managers uniformly offering the lowest fees, analysts predict that investors may not perceive significant differences between the products. In contrast, Samsung Asset Management has opted for a relatively higher total fee of 0.29%. This strategy is interpreted as a move to leverage the market dominance of its leading leverage ETF brand, "KODEX." Kiwoom Investment Management has set its fee at 0.25%, while Shinhan Asset Management has established a fee of 0.10%. Hanwha Asset Management applies the 0.0901% fee to its Samsung Electronics leverage product but has set a higher fee of 0.49% for its inverse 2X product, indicating a differentiated strategy. In terms of asset size, Samsung Asset Management is taking a more aggressive approach. It has established trust principal amounts of 1.0665 trillion won for the KODEX Samsung Electronics single-stock leverage and 1.3665 trillion won for the KODEX SK Hynix single-stock leverage, totaling over 2 trillion won for both products. The total trust principal amount for the ETFs being launched is approximately 4.1227 trillion won. The issue price for all products has been standardized at 20,000 won. Given the high volatility associated with single-stock leverage products, there are concerns that excessively low prices could widen the spread relative to the minimum tick size, complicating market management. However, financial authorities have repeatedly warned about the investment risks. Single-stock leverage and inverse products exhibit greater volatility than regular stocks and have much larger price fluctuations compared to index-based leverage ETFs like KOSPI 200, making them unsuitable for anything other than short-term investment purposes. A significant risk factor is the "negative compounding effect" that can occur during repeated fluctuations. For instance, even if the underlying stock price remains stable over a long period, the structure of tracking daily returns at double the rate can lead to a continuous decline in the ETF price. Investors should also be aware that imbalances in supply and demand can lead to discrepancies between the actual net asset value (NAV) and market prices. While arbitrage typically normalizes these discrepancies over time, trading during periods of significant divergence can result in unexpected losses. To address investment risks, the barriers to entry for investors have been raised. To invest in single-stock leverage and inverse ETFs, a minimum deposit of 10 million won is required, along with completion of a two-hour pre-education course provided by the Financial Investment Association. The association has established a dedicated training program for single-stock leverage and inverse products ahead of their launch. Industry insiders believe that investors will choose between "ultra-low fees" and "liquidity." A financial investment industry official stated, "Aside from total fees, the differences in products that investors can perceive are minimal. Ultimately, the key variable will be whether they prioritize lower fees or liquidity in their selection."* This article has been translated by AI. 2026-05-23 19:22:37

Hanwha Solutions Pushes Forward with $1.8 Billion Capital Increase Hanwha Solutions is demonstrating a strong commitment to a capital increase of 1.8 trillion won ($1.4 billion) despite two previous setbacks from financial authorities. The company has significantly enhanced its securities registration statement to address the authorities' concerns regarding the necessity of the capital increase, asset sale plans, and performance forecasts, leading to increased optimism about its success. According to industry sources on May 22, the securities registration statement submitted by Hanwha Solutions on May 14 will take effect on May 30. The Financial Supervisory Service (FSS) must issue a relevant disclosure by 8 p.m. on May 29 if it intends to reject the registration statement. If no further action is taken by that deadline, the statement will take effect, allowing the capital increase process to proceed as planned. During the FSS review process, Hanwha Solutions faced two rounds of correction requests over the past two months, requiring modifications to its plans. Initially, the capital increase amount was reduced from 2.4 trillion won to 1.8114 trillion won, but the FSS raised a second objection, citing insufficient explanations for investor protection. In the third securities registration statement submitted by Hanwha Solutions, the capital increase amount remains unchanged. Of the total, 907.7 billion won will be allocated for solar investments, including the establishment of a perovskite tandem production line, while 906.7 billion won will be used to repay debts accumulated due to a downturn in the petrochemical sector. This decision reflects the company's belief that reducing the capital increase amount is not feasible given the global uncertainties in the solar and petrochemical markets. The parent company, Hanwha Group, plans to participate in the capital increase with a subscription exceeding 120%, which will help offset most of the debt repayment costs. In response to the FSS's concerns, Hanwha Solutions has strengthened its registration statement by including detailed information on liquidity risks, alternative funding options including the sale of non-core assets, specific grounds for medium- to long-term profit estimates, and future credit rating outlooks. As a result, the length of the registration statement has increased significantly from 920 pages to 1,260 pages. As an additional funding method outside the capital increase, the company is considering selling part of its stakes in Hanwha Impact and Hanwha Hotels & Resorts. This move aims to secure approximately 300 billion won in liquidity by the third quarter of this year. The company predicts that if its credit rating falls from the current 'AA- (negative)' to below 'A+', it could incur over 75 billion won in additional financial costs due to rising corporate bond rates. The capital increase is one of the measures to prevent such financial burdens while aiming to reduce the consolidated debt ratio to below 150%. Additionally, the company has set a target to achieve sales of 33 trillion won and operating profit of 2.9 trillion won by 2030 without any further capital increases. Investment banking sources view the likelihood of Hanwha Solutions' third capital increase attempt succeeding as a toss-up. While the company has provided detailed financial information to investors in line with FSS requirements, some small shareholders continue to express opposition, raising concerns that the FSS may request further corrections. The FSS is responsible for reviewing the securities registration statement to protect investors but does not have the authority to cancel the company's decision to pursue a capital increase. However, if the registration statement fails to pass review three times, it is common for the company to voluntarily cancel the capital increase. Meanwhile, some small shareholders of Hanwha Solutions are demanding that the company secure funds by selling its stake in Korea Zinc held by its subsidiary, Hanwha Impact. However, Hanwha Solutions has reportedly expressed reluctance, as selling this stake would not directly result in cash inflow to the company.* This article has been translated by AI. 2026-05-23 19:19:59

RE100 Energy Demand in South Korea Expected to Reach 160 TWh by 2038 RE100, which stands for 100% renewable energy, has become a benchmark influencing global supply chains and industrial competitiveness, leading to an increase in renewable energy demand among domestic companies. While long-term forecasts suggest sufficient renewable energy supply, concerns remain about grid limitations and other challenges. According to a report by the Korea Energy Economics Institute titled "Insights into the Global Energy Market - Trends in Domestic and International RE100 and Implications for Renewable Energy Policy," the number of companies participating in RE100 has steadily increased since its launch in 2014. Recently, there has been a rise in new memberships from large global companies with significant electricity demands, expanding the volume of renewable energy addressed by RE100. The participation of South Korean companies in RE100 began in earnest in 2020 when six subsidiaries of SK Group joined. Major manufacturing and IT firms such as Samsung Electronics, SK Hynix, Hyundai Motor, LG Energy Solution, Naver, and Kakao have since joined, bringing the total number of participating companies to 36 as of this year. These companies are estimated to consume 66.7 TWh of electricity in 2024. However, the level of renewable energy procurement remains low. By the end of 2024, the procurement rate for renewable energy among domestic RE100 companies is expected to reach only 12%. To fully meet their renewable energy needs, an additional 59.6 TWh will be required. The demand is projected to increase sharply in the coming years. The report estimates that the electricity demand from domestic RE100 companies will reach 160 TWh by 2038. Assuming they meet their renewable energy procurement goals, the achievement rate for RE100 among these companies is expected to reach 83.2% by that year. From a supply perspective, there is expected to be sufficient volume in the medium to long term. Based on the government’s 11th Basic Plan for Power Supply and Demand, the combined supply of renewable energy and clean hydrogen and ammonia is estimated to be about 249.6 TWh by 2038. It is projected that renewable energy and clean hydrogen will account for approximately 35.4% of the central power market in that year. However, there are many variables that could affect the implementation of RE100. Smooth certification processes for hydropower, biomass, and clean hydrogen used domestically are essential. Additionally, various practical constraints such as grid limitations, regional acceptance, and transmission and distribution network shortages could arise simultaneously. The report suggests that policy responses should not only focus on expanding capacity but also on establishing a market, grid, and institutional framework. This means that large-scale renewable energy expansion centered on the central power grid should be complemented by the development of distributed renewable energy based on industrial complexes, urban areas, and localities. Investments to ensure grid stability and flexibility are also identified as key challenges. As inverter-based power sources like solar and wind energy increase, different technical responses will be necessary compared to traditional power grid operations. Expanding transmission and distribution networks, along with energy storage systems (ESS), demand response (DR), and ancillary services, will help alleviate output control and inter-regional grid congestion issues. The report states, "Responding to RE100 has become a new market order that influences global supply chains and industrial competitiveness. Securing renewable energy volumes is linked to industrial and trade policies and can directly impact investment attraction and export competitiveness." It concludes that expanding renewable energy volumes and establishing a stable procurement system will be crucial for maintaining the competitiveness of the manufacturing sector.* This article has been translated by AI. 2026-05-23 19:18:00

Five Candidates Enter Race for Next Head of Credit Finance Association Five candidates from the finance, academia, and political sectors have declared their intention to run for the next president of the Credit Finance Association. According to the association on May 22, the application period for the 14th president closed on May 19, with the following candidates submitting their applications: Kim Sang-bong, a professor at Hansung University; Park Kyung-hoon, former CEO of Woori Financial Capital; Yoon Chang-hwan, former policy chief to the National Assembly Speaker; Lee Dong-cheol, former CEO of KB Kookmin Card; and Jang Doo-jung, former policy advisor to the Ministry of Economy and Finance. Kim Sang-bong holds a degree in economics from Sogang University, where he also earned his master's degree, and he obtained a Ph.D. in economics from Texas State University. He has worked at Seoul Economic Daily, Shinhan Card, and SK Management & Economics Research Institute, and has served twice as an advisor to the Credit Finance Association. Park Kyung-hoon graduated from Seoul National University with a degree in international economics. He has held positions at Hyundai Corporation and Woori Bank, and served as the Chief Financial Officer of Woori Financial Group. He later became the CEO of Woori Financial Capital and is currently an outside director at Hanwha Savings Bank. Yoon Chang-hwan studied law at Chonnam National University and completed a doctoral program in political science at Dongguk University. He has served as the policy chief to the National Assembly Speaker and led the AI policy advisory team for the campaign of Lee Jae-myung during the 21st presidential election. He currently heads the AI and AI Transformation Strategy Center for the credit finance industry and serves as CEO of the Global AI Next Center. Lee Dong-cheol graduated from Korea University with a law degree and completed an LLM at Tulane University in the United States. He has extensive experience in the card and financial holding sectors, having served as Chief Strategy Officer of KB Financial Group, CEO of KB Kookmin Card, and Vice Chairman of KB Financial Group. Jang Doo-jung graduated from Chung-Ang University with a law degree and completed his graduate studies at Yonsei University. He has worked at Hyundai Capital and Kookmin Lease, and served as the head of the financial business division at NICE Information Service. He has also been a policy advisor to the Deputy Minister of Economy and Finance and an executive director at the Korea Credit Guarantee Fund. The association's presidential selection committee will conduct a document review of the applicants by May 27, narrowing the field to three candidates. Interviews and a secret ballot will follow next month, after which a single candidate will be confirmed and presented for approval at the general assembly, with the aim of finalizing the presidential selection by next month.* This article has been translated by AI. 2026-05-23 19:15:00

Korean Won Approaches 1520 Against Dollar Amid Middle East Tensions The won-dollar exchange rate has approached the 1520 won mark, prompting foreign exchange authorities to intervene verbally to stabilize the currency. The exchange rate finished the week at a high level, the highest in about a month and a half since April 2. The Bank of Korea and the Ministry of Economy and Finance issued a joint message shortly before the close of trading in the Seoul foreign exchange market, stating, "The foreign exchange authorities are monitoring the movement of the won-dollar exchange rate, which appears excessive compared to fundamentals, with caution." They added, "We will take decisive action if necessary." On that day, the exchange rate for the won against the U.S. dollar closed at 1517.2 won, up 11.1 won from the previous session. This is the highest closing figure since April 2, when it was 1519.7 won. The exchange rate opened at 1504.7 won, down 1.4 won, but quickly turned upward, increasing its gains in the afternoon. At one point during the day, it reached 1519.4 won, nearing the 1520 won level. The intraday high was also the highest since April 2, when it reached 1524.1 won. International oil prices, which had fallen overnight, rose in the Asian market, triggering a flight to safer assets. In Asian trading, the price of West Texas Intermediate (WTI) crude oil for July delivery rose by 1.84% to $98.11 per barrel. Uncertainty surrounding peace negotiations between the U.S. and Iran has contributed to rising international oil prices. Reports indicated that Iran's Supreme Leader Ayatollah Ali Khamenei instructed against exporting highly enriched uranium abroad, dampening expectations for peace. Meanwhile, U.S. President Donald Trump reaffirmed the U.S. position on securing Iran's highly enriched uranium, indicating that both sides remain at an impasse on this issue. Foreign investors sold a significant amount of domestic stocks, with net sales totaling 1.9223 trillion won in the stock market that day. This marks the 12th consecutive trading day of net selling. The weakening of the yen also played a role. The yen-dollar exchange rate rose by 0.15 yen to 159.10 yen per dollar. The Japanese government is considering additional budget measures in response to the prolonged instability in the Middle East, contributing to the yen's decline. Lee Jin-kyung, a researcher at Shinhan Investment Corp., stated, "The won-dollar exchange rate is under pressure from a strong dollar externally and uncertainty regarding peace negotiations, which is exerting downward pressure on the won. The continued net selling of domestic stocks by foreign investors has created an environment favoring dollar purchases, which is also linked to the weakness of Asian currencies like the yen."* This article has been translated by AI. 2026-05-23 19:12:28

Lotte Energy Materials Sells 90% Stake in Lotte EcoWill to Relson Private Equity 롯데에너지머티리얼즈가 릴슨프라이빗에쿼티와 주식매매계약을 체결하고 롯데에코월 지분 90%를 매각한다고 22일 밝혔다. Lotte Energy Materials announced on May 22 that it has signed a stock purchase agreement with Relson Private Equity to sell a 90% stake in Lotte EcoWill. The company specializes in curtain wall construction, which involves creating a separate glass exterior wall outside concrete walls. Last year, Lotte EcoWill reported approximately 130 billion won in sales and an operating profit of about 12 billion won, with an EBITDA exceeding 10%, indicating strong cash generation capability. Lotte Energy Materials stated, "We decided to proceed with this sale to adjust our business portfolio toward future materials." The company plans to concentrate more on securing the future competitiveness of its core copper foil business. The funds raised from this sale will be utilized for investments in four high-value-added product portfolios: AI circuit foils for data centers, ultra-thin foils for semiconductors, battery foils for energy storage systems (ESS), and battery foils for existing electric vehicle batteries. At its Iksan plant in South Korea, Lotte Energy Materials aims to expand its production capacity for AI circuit foils from the current 3,700 tons to a total of 16,000 tons by 2027. The Malaysian plant will also focus on increasing production of battery foils for ESS, laying the groundwork for a structural turnaround this year. Lotte's chemical division is undergoing a business restructuring to strengthen its core competitiveness. The company is continuing to reorganize its domestic basic materials business and divest unrelated operations while focusing on expanding functional materials and high-value businesses, striving to transition to a business model centered on advanced technology materials. Additionally, Lotte Energy Materials announced last month that it would invest approximately 50 billion won in its Iksan plant, the only domestic production base for circuit foils, to complete the material industry value chain. Despite challenging market conditions due to the electric vehicle sector, the company is making bold investments to secure future competitiveness and restructure its business.* This article has been translated by AI. 2026-05-23 19:09:58

Oh Se-hoon Leads Jung Won-o in Tight Seoul Mayor Race As the local elections approach in 12 days, the race for Seoul mayor is becoming increasingly competitive. Recent polling indicates that Oh Se-hoon, the candidate from the People Power Party, is narrowly leading Jung Won-o of the Democratic Party within the margin of error, making him a key player in the final stretch of the campaign. According to a poll released on May 22, Oh garnered 44.8% support, while Jung received 42.0%. The gap between the two candidates stands at 2.8 percentage points, which falls within the margin of error of ±3.1 percentage points. The survey, conducted by ResearchWell on behalf of New Daily from May 20 to 21, included responses from 977 residents of Seoul aged 18 and older. In this poll, Kim Sung-cheol from the Reform Party received 2.1%, while other candidates collectively garnered 2.6%. Additionally, 6.1% of respondents indicated they did not support any candidate, and 2.4% were unsure. Support for the candidates varied by gender, with Oh performing better among male voters and Jung receiving more support from females. Oh led with 50.5% among men, compared to Jung's 38.7%. Conversely, Jung had 45.0% support among women, while Oh received 39.6%. Age demographics also showed distinct patterns. Jung was favored among voters in their 40s and 50s, while Oh had strong support among those in their 20s, 30s, and seniors over 70. Notably, Oh achieved over 50% support in the 30s (57.1%) and among seniors (51.2%). Jung, on the other hand, received 58.5% support from voters in their 40s and 57.7% from those in their 50s. Regionally, Oh's advantage was particularly pronounced in the southeastern districts, a traditional conservative stronghold. In the four districts of Seocho, Gangnam, Songpa, and Gangdong, Oh received 52.0% support, leading Jung by 13.6 percentage points (38.4%). In contrast, in the first district, which includes Jongno, Jung received 43.0%, slightly ahead of Oh's 40.1%. When asked about their reasons for supporting the candidates, both groups exhibited significant 'negative preference' dynamics. Among Jung's supporters, 28.8% cited dislike for the People Power Party, while 27.3% supported him because they liked President Lee Jae-myung, and 22.4% liked Jung himself. For Oh's supporters, 29.7% indicated they were motivated by dislike for President Lee, 27.8% liked Oh, and 17.1% disliked the Democratic Party. Regarding past allegations of violence against Jung, 43.6% of Seoul residents felt that further clarification was necessary. Only 17.8% believed the issue had been sufficiently addressed, while 18.9% thought it did not require clarification as it was a political attack. Meanwhile, 54.1% of Seoul residents rated President Lee's governance positively, while 39.5% expressed disapproval. Party support showed the Democratic Party at 41.0% and the People Power Party at 36.8%. The survey utilized automated response technology (ARS) with wireless virtual numbers provided by three telecommunications companies, achieving a response rate of 5.9%. The margin of error is ±3.1 percentage points at a 95% confidence level. More details can be found on the Central Election Polling Review Committee's website.* This article has been translated by AI. 2026-05-23 19:06:00

Defense Ministry Suspends Collaboration with Starbucks on Soldier Welfare Program The Defense Ministry has temporarily suspended its collaboration with Starbucks Korea on a soldier welfare program following criticism that the company trivialized the May 18 Democratic Uprising by hosting a 'Tank Day' event. A Defense Ministry official stated on May 22, "We have decided to temporarily suspend and postpone the beverage support project for remote military units in collaboration with Starbucks Korea." The official added, "We will carefully determine the direction of this matter, considering public sentiment and Starbucks Korea's social responsibility." Last month, the Defense Ministry entered into a memorandum of understanding with Starbucks Korea for the 'Hero Program,' which aimed to provide beverage support for remote military units, scholarships for children of deceased or injured soldiers, and employment support programs for soldiers about to be discharged. Starbucks Korea faced backlash for using phrases like 'Tank Day' and 'Desk Tapping' during a tumbler promotion in May, which were seen as mocking the May 18 Democratic Uprising and the torture and death of activist Park Jong-cheol. The company subsequently canceled the promotion. As a result of the controversy surrounding Starbucks Korea's 'Tank Day' marketing, a boycott movement has emerged across society, including among government officials. On the previous day, Minister of the Interior and Safety Yoon Ho-jung posted on X (formerly Twitter), stating, "In light of this situation, the Ministry will not provide products from companies that trivialize or commercialize the history and values of democracy." Earlier on the same day, Minister of Veterans Affairs Kwon Oh-eul expressed his deep regret regarding Starbucks Korea's marketing related to the May 18 Democratic Uprising. Following the controversy, the Veterans Affairs Ministry reportedly issued internal guidelines to refrain from using Starbucks gift cards and other products in its events for the next two to three years.* This article has been translated by AI. 2026-05-23 19:03:26