Top 10 Securities Firms Report Combined Q1 Profit of 4.3 Trillion Won ◆Ajou Economic Major News ▷Top 10 securities firms narrow profit gap with five major banks to just 1.1 trillion won - Riding the wave of a booming stock market, securities firms have seen a surge in profits, closing the gap with banks and aiming for a position as the "absolute financial powerhouse." - The combined net profit of South Korea's top 10 securities firms (based on equity capital) for the first quarter is 4.33 trillion won. - This marks an increase of 2.30 trillion won (113.65%) compared to 2.07 trillion won during the same period last year. - The combined net profit of the five major banks for the first quarter of this year is 4.44 trillion won, leaving a difference of about 1.1 trillion won. - Notably, the top two firms in the securities industry, Mirae Asset Securities and Korea Investment & Securities, outperformed NH Nonghyup Bank (5.577 trillion won) and Woori Bank (5.312 trillion won). - The increase in brokerage revenue due to rising trading volumes and improved investor sentiment has been a key factor in this performance improvement. ◆Major Reports ▷- Even without assuming a re-rating of the price-to-earnings ratio, if current profit estimates materialize, the KOSPI could enter the 10,000-point era. - The projected net profit for the KOSPI in 2026 is 689 trillion won, increasing to 853 trillion won by 2027. - Since 2010, the average price-to-earnings ratio for the KOSPI has been 9.96 times, meaning if the index reflects the 2027 net profit by the end of 2026, the KOSPI market capitalization could reach 8,499 trillion won (853 trillion won * 9.96 times). - This translates to an index value of 10,380 points (previously projected upper limit of 8,470 points). - If the capital expenditure growth rate in the S&P 500 tech sector falls below the WTI price increase rate, or if semiconductor profit estimates for the KOSPI are revised downward, the current index rise based on profit growth may come to an end. - Given the price surge due to war, the current level of oil prices is more likely a short-term overshoot than a long-term upward trend. - The increasing concentration around Samsung Electronics and SK Hynix, which account for 48% of the KOSPI market capitalization, could also be a concern. - However, the end of the tech bubble in 2000 showed that stock price overheating led to changes in the top market capitalization company, regardless of profit size. - On March 27-28, 2000, Cisco Systems, which held the top market cap in the S&P 500, had annual net profits that were only 20% of GE's and 28% of Microsoft's. - Another signal for the end of the current bull market based on profit growth would be if SK Hynix's market capitalization surpasses that of Samsung Electronics. ◆Major Disclosures After Market Close (15th) ▷HS Hynix Advanced Materials decides on a 29.6 billion won debt guarantee for its affiliate. ▷Dong Sung Pharmaceutical receives notice of completion of rehabilitation proceedings as of the 15th. ▷Jeong Ji-hye, Executive Director of Hyundai Mobis, acquires an additional 8,000 shares of Hyundai Elevator common stock. ▷Jahwa Electronics exercises exchange rights for 222,420 shares (worth 7.8 billion won) of exchangeable bonds. ▷Gwangmyeong Electric is sued for a provisional injunction allowing the exercise of voting rights by its largest shareholder. ◆Fund Trends (as of the 14th, excluding ETFs) ▷Domestic equity funds: +48 billion won ▷Overseas equity funds: -53.8 billion won ◆Key Schedule for Today (18th) ▷China: April housing price index, April real economy indicators (consumption, production, investment) ▷United States: May NAHB housing market index* This article has been translated by AI. 2026-05-18 08:01:45

Park Chan-wook Receives France's Highest Cultural Honor, Aims to Film in France Park Chan-wook has been awarded the Commander of the Order of Arts and Letters, the highest cultural honor from the French government.According to reports from Reuters and Yonhap News, French Minister of Culture Rima Abdul Malak presented the award to Park on May 17 in Cannes, where he was serving as the jury president for the 79th Cannes Film Festival.The Order of Arts and Letters is awarded to individuals who have made significant contributions to the arts and literature or have enhanced the international stature of French culture. It has three grades: Chevalier, Officier, and Commander, with Commander being the highest.Park is the fourth South Korean recipient of the Commander honor, following Kim Jong-ok in 2002, conductor Myung-whun Chung in 2011, and soprano Sumi Jo last year.After receiving the award, Park expressed that French cinema and philosophy have greatly influenced his work. He stated, "I felt that all the influences I received from France have come together in me."He reminisced about winning the Jury Prize at the Cannes Film Festival in 2004 for his film 'Oldboy,' calling it a significant turning point that completely changed his life. He noted that his connection with Cannes has continued, leading to his role as jury president this year.Park also shared his desire to film in France, saying, "My last wish is to make a film in France someday, to work with French actors." He expressed gratitude for the honor.Park has a long-standing relationship with the Cannes Film Festival. He won the Jury Prize in 2004 for 'Oldboy,' the Jury Award in 2009 for 'Thirst,' and the Best Director Award in 2022 for 'Decision to Leave.' His film 'The Handmaiden' was invited to compete in 2016, and he served as a jury member in 2017.This year, he became the first South Korean to be appointed as jury president at the Cannes Film Festival. His journey from award winner to jury president, culminating in receiving France's highest cultural honor, highlights the strong ties between Park and the French film industry.* This article has been translated by AI. 2026-05-18 08:00:45

CJ Olive Young Set to Open First U.S. Store in Pasadena CJ Olive Young is on the verge of opening its first U.S. store, with CJ Group Chairman Lee Jae-hyun expected to visit the location. This move underscores the company's emergence as a key subsidiary within the group and highlights Lee's commitment to penetrating the U.S. market. According to industry sources, Lee plans to attend the PGA Tour's "The CJ Cup at Byron Nelson" in Texas on May 21, before visiting the Pasadena store, which is set to open on May 29. The flight from Dallas, where the tournament is held, to the Los Angeles area takes about three hours. This visit coincides with a major group event, allowing Lee to inspect Olive Young's first overseas store personally. The Pasadena store represents more than just a new location for CJ Olive Young. The company plans to open a total of four stores in key Los Angeles areas, including Westfield Century City and Torrance Del Amo Mall, starting with Pasadena. Given that the U.S. is the world's largest beauty market, the initial performance of this store will serve as a critical indicator for the company's expansion in North America. The Pasadena location is situated in a high-traffic area, close to an Apple store and educational institutions like the California Institute of Technology and Pasadena City College. It is also surrounded by global retail and beauty brands such as Abercrombie and Sephora, targeting both local consumers and tourists. Lee's hands-on approach with Olive Young is driven by impressive growth figures. According to CJ's business report, the company's standalone revenue reached 5.8335 trillion won last year, a 21.8% increase from the previous year. Operating profit rose by 22.5% to 744.7 billion won. With annual sales nearing 6 trillion won, Olive Young's contribution to the group's profits has significantly increased. In the first quarter of this year, standalone revenue also grew by 24.5% year-on-year to 1.5372 trillion won, indicating continued expansion. As a result, Lee has been actively managing Olive Young this year. In January, he visited the first wellness store, Olive Better, in Gwanghwamun, Seoul. In March, he inspected the Olive Young Central Myeongdong Town store, reviewing store layout and key products while making personal purchases. CJ Olive Young is also accelerating preparations to establish a foothold in the U.S. market. The company plans to launch a U.S.-exclusive e-commerce platform alongside the opening of its first store, moving away from a solely global mall-based sales model to a structure that integrates local stores and online sales. Additionally, the company has established a logistics base. In March, CJ Olive Young set up a "West Coast Center" in Bloomington, California, covering approximately 3,600 square meters (about 39,000 square feet) to support local distribution for brands entering U.S. stores. The company plans to gradually expand the center in line with increasing shipping volumes and is considering securing additional logistics hubs in the eastern region. A CJ Olive Young representative stated, "With the simultaneous opening of our first U.S. store and the U.S.-exclusive online mall, we can now offer local delivery through the West Coast Center. We aim to enhance shopping convenience for American consumers and contribute to the growth of the K-beauty industry." * This article has been translated by AI. 2026-05-18 07:49:08

Trump Posts AI Video of Striking Iranian Military Aircraft, Intensifying Negotiation Pressure Donald Trump, the President of the United States, has posted an artificial intelligence (AI) generated video depicting the destruction of an Iranian military aircraft. This post comes on the same day he warned Iran that "time is running out," suggesting an escalation in military pressure amid stalled peace negotiations. On May 17, Trump shared a 5-second video on his social media platform, Truth Social. The video shows a U.S. warship firing a high-powered laser at an Iranian military aircraft bearing the Iranian flag. In the video, Trump can be heard saying, "Okay. It's coming our way," followed by, "Fire. Boom." He also posted a larger version of the same video along with similar content. While the video is not based on actual military operations, the fact that a sitting U.S. president has shared a depiction of U.S. forces shooting down an adversary's aircraft makes it more than just an ordinary online post. It visually conveys a warning that military action could be intensified if Iran does not comply with U.S. demands. On the same day, Trump issued a direct warning to Iran on Truth Social, stating, "Time is running out. They need to move quickly. Otherwise, they will have nothing left." He emphasized that "time is of the essence," indicating that Iran could face stronger pressure if it does not respond promptly to U.S. proposals for peace. Trump has publicly rejected a recent peace proposal from Iran. Reports suggest that additional military options against Iran are being considered within the United States. According to Reuters, Trump is scheduled to hold a meeting with national security advisors regarding Iran in the White House Situation Room on May 19.* This article has been translated by AI. 2026-05-18 07:45:48

Trump Joins Effort to Defeat Republican Thomas Massie in Costly Primary The primary election for U.S. Representative Thomas Massie's re-election has become the most expensive in House history. This surge in costs is attributed to significant advertising spending by Donald Trump's camp and pro-Israel organizations aimed at defeating Massie. According to Politico, the total advertising expenditure for the Kentucky Republican primary has exceeded $32 million, marking the highest amount ever recorded for a House primary, according to ad tracking firm AdImpact. Pro-Israel groups, including the American Israel Public Affairs Committee (AIPAC), have invested over $9 million in efforts to unseat Massie. Additionally, a super PAC associated with Trump has spent approximately $7 million. Trump's involvement has been a key factor in escalating the stakes of the primary. He has endorsed former Navy SEAL Ed Gallein as Massie's challenger. Politico reported that Trump's intervention has disrupted the stable re-election landscape for Massie, who had held his seat for over a decade, prompting pro-Israel factions to ramp up their spending. Massie is known for his non-interventionist and libertarian views within the Republican Party. He has repeatedly opposed military support for Israel and pro-Israel resolutions, making him a target for pro-Israel groups. Massie has argued that his opposition to foreign aid is not aimed solely at Israel. Pro-Israel organizations are directly targeting Massie. The Republican Jewish Coalition's Victory Fund has aired six attack ads against him, spending over $4 million. AIPAC's super PAC, the United Democracy Project, has also invested around $5 million to highlight Massie's opposition to pro-Israel resolutions. This primary has transcended a simple district contest, emerging as a litmus test for the political costs of criticizing Israel within the GOP. This comes amid a growing trend among younger Republican supporters to adopt a more critical stance toward Israel following conflicts in Gaza and Iran. In response, Massie has pushed back, asserting that he is neither anti-Semitic nor anti-Israel. He emphasized that criticism of the Netanyahu government's policies should not be equated with anti-Semitism. As the election nears, AIPAC has proposed legislation requiring registration under the Foreign Agents Registration Act (FARA). The race is tight. A Quinteros Insights poll shows Gallein leading Massie by 8 percentage points, while a Big Data Poll indicates Massie ahead by 1 percentage point. Trump's support and external funding have elevated Gallein as a formidable challenger in this federal election. However, Massie remains a well-established incumbent with a solid local base. His libertarian leanings align with the political inclinations of Kentucky's 4th district. Whether Trump's backing and the substantial advertising campaign from pro-Israel groups can actually unseat the incumbent is a critical factor in this primary.* This article has been translated by AI. 2026-05-18 07:33:56

North Korean Women's Soccer Team Visits South Korea, Aims to Improve Relations North Korea's women's soccer team's visit to South Korea carries significance beyond a mere sports schedule. This marks the first time since 2018 that a North Korean team has played in South Korea, and it is the first women's soccer event since the 2014 Incheon Asian Games. This visit, although framed as participation in an international tournament, is noteworthy as it represents a rare instance of 'restoring contact' amid strained inter-Korean relations. The team is in South Korea to compete in the semifinals of the 2025-2026 Asian Football Confederation (AFC) Women's Champions League. The delegation consists of 39 members, including players and staff. Notably, this visit is not the result of political negotiations or intergovernmental agreements, which reduces the associated pressures. This aspect is crucial, as sports have historically served as a low-threshold channel for exchanges when inter-Korean relations are stalled. In fact, inter-Korean sports exchanges have previously acted as catalysts for easing tensions on the Korean Peninsula. During the 2018 PyeongChang Winter Olympics, the formation of a unified Korean team and their joint appearance sent a strong symbolic message to the international community and contributed to a favorable atmosphere leading to subsequent summits. Even in times of political dialogue stagnation, sports have played a role as a 'pathway for contact.' However, it is essential to avoid overinterpreting this visit. Currently, inter-Korean relations are characterized by accumulated military tensions and political distrust, nearing a state of effective severance. In a context marked by severed communication lines, military standoffs, and mutual accusations, it is unrealistic to expect that a single sports exchange will lead to improved relations. Past inter-Korean sports exchanges have often been abruptly halted due to changes in the political environment. The key issue is 'sustainability.' If this visit ends as a one-time event, its significance will be limited. Conversely, if it serves as a foundation for maintaining and expanding minimal channels of exchange, the situation could change. While sports cannot resolve political conflicts, they can undoubtedly play a role in easing tensions and creating opportunities for dialogue. To achieve this, a strategic approach from the government is necessary. It should not merely focus on welcoming ceremonies or event management but should consider a long-term roadmap that expands sports exchanges into cultural and humanitarian exchanges. In particular, regularizing exchanges through international competitions could be a realistic alternative. It is crucial to create a framework for exchanges that can be maintained relatively stably, rather than one that is susceptible to political fluctuations. Another point to note is the potential for a change in North Korea's attitude. Observations of the team's travel routes, schedules, and external exposure suggest a degree of flexibility compared to the past. While this cannot be definitively interpreted as a policy change, it is our responsibility to read and leverage signals of change. Inter-Korean relations can significantly shift based not only on the other side's changes but also on our responses. Ultimately, the essence of inter-Korean relations lies in political and security issues. Sports exchanges alone cannot resolve structural conflicts. However, it is clear that maintaining limited contact is far more manageable than a complete severance of exchanges. This visit serves as a reminder of that 'small link.' The government must not let this opportunity slip away. Inter-Korean relations will not improve through one-off events. Trust is built when small exchanges are repeated and accumulated. The visit of the North Korean soccer team highlights the existence of potential. Whether that potential becomes a reality ultimately depends on our strategy and will.* This article has been translated by AI. 2026-05-18 07:28:08

Wall Street Bond Expert: Fed Likely to Raise Rates Instead of Cutting This Year ‘Bond King’ Jeffrey Gundlach, CEO of DoubleLine Capital, has predicted that the Federal Reserve will find it nearly impossible to cut interest rates this year. He cited rising oil prices due to ongoing conflicts in the Middle East and tariff pressures as factors pushing inflation higher, suggesting that market expectations for rate cuts are overly optimistic. On May 17, Gundlach appeared on Fox News' 'Sunday Morning Futures,' stating, "Inflation pressures are persisting, making it difficult for the Fed to lower interest rates." He noted that Kevin Warsh, who has been nominated as the next Fed chair, will face a challenging environment, adding, "The Fed's next policy direction may not be a cut but rather an increase." Gundlach expressed particular concern that inflation is not decreasing as quickly as the market anticipates. He pointed out that movements in the two-year U.S. Treasury yield are undermining expectations for rate cuts, stating, "It is hard to justify a rate cut." He also predicted that the next Consumer Price Index (CPI) could rise to around 4%. In a previous interview with CNBC, Gundlach reiterated similar concerns. According to DoubleLine, he warned that if rising oil prices and tariff impacts do not dissipate easily, the CPI, including food and energy, could enter the 4% range in the short term. He emphasized, "In this environment, a rate cut by the Fed is virtually impossible," and added that the likelihood of an increase is higher than a cut by the end of the year. Market expectations are also shifting rapidly. According to Reuters, Bank of America (BofA) has revised its forecast, predicting that the Fed will keep rates steady for the remainder of the year, with the first cut expected in July or September 2027. Goldman Sachs has also pushed back its forecast for the first cut from September 2026 to December 2026. Reuters reported that the prolonged conflict in the Middle East is driving up energy prices, prompting global investment banks to reassess their outlook for U.S. rate cuts. The Fed held interest rates steady during its Federal Open Market Committee (FOMC) meeting on April 29, with a vote of 8 in favor and 4 against, marking the closest decision since 1992. With U.S. inflation still above the Fed's target of 2%, the market reflects a likelihood that the Fed will maintain rates at the current level of 3.50% to 3.75% through the end of the year. Gundlach's comments also serve as a warning regarding the pricing of risk assets. He cautioned that investors buying stocks and other risk assets based on expectations of rate cuts may be making a miscalculation. According to Business Insider, Gundlach stated, "There will be no rate cuts this year," urging an increase in defensive asset allocations such as cash, gold, and commodities.* This article has been translated by AI. 2026-05-18 07:01:15

Trump Warns Iran to Act Quickly or Face Consequences President Donald Trump has warned Iran that it must act quickly or risk losing everything. As negotiations surrounding Iran's nuclear program and navigation through the Strait of Hormuz remain stalled, U.S. military pressure appears to be escalating. On May 17, Trump posted on his social media platform Truth Social, stating, "There is not much time left regarding the Iran issue. Iran must move quickly; otherwise, there will be nothing left." He emphasized that "time is of the essence." In a phone interview with Axios on the same day, Trump further pressured Iran, saying, "If Iran does not present a better deal, it will face much stronger consequences." He added, "We want a deal, but they are not where we need them to be. They must reach that point." The U.S. has been demanding that Iran reduce its nuclear program and normalize navigation through the Strait of Hormuz. However, Iran has largely resisted these demands, and discussions through mediating countries have yet to yield significant breakthroughs. While Trump did not specify a deadline for negotiations, his comments urging Iran to act quickly suggest a potential for increased military action if Iran does not comply. This warning follows Trump's recent emphasis on the principles of preventing Iranian nuclear weapons and reopening the Strait of Hormuz after announcing the outcomes of a U.S.-China summit. Tensions in the Middle East are rising. According to Axios, Trump discussed the situation in Iran with Israeli Prime Minister Benjamin Netanyahu on May 17. U.S. officials indicated that Trump is scheduled to meet with his national security team in the White House Situation Room on May 19 to discuss military options.* This article has been translated by AI. 2026-05-18 07:00:40

Gangnam Real Estate Prices Rise After End of Capital Gains Tax Exemption The real estate market is difficult to read. Owning a home is equally challenging. Government policies are no exception. This is where the tough 'real estate' perspective begins. The administration of President Lee Jae-myung has focused on stabilizing housing prices, starting in Gangnam. Since taking office, President Lee has prioritized housing price stabilization, stating, "We will do whatever it takes to control housing prices." He implemented a series of measures, including land transaction permits, total loan management, and the resumption of increased capital gains taxes for multiple homeowners. Gangnam was the target, as it symbolizes Seoul's housing market and serves as a litmus test for regulatory effectiveness. On February 3, he shared a report on social media about an increase in listings in the three Gangnam districts, calling out reports claiming there was no effect or that listings were not emerging as "nonsense." However, after the third week of February, apartment prices in the three Gangnam districts began to decline, with Gangnam experiencing 12 weeks of stagnation or decline. Analysts noted that the cumulative regulations were holding back the Gangnam area, leading to comments that "this government is different," suggesting that the policies were having an impact. However, the market responded differently. On May 9, the exemption for increased capital gains tax for multiple homeowners ended. In the second week of May, apartment prices in Gangnam rose by 0.19%. The belief that the policies were effective began to waver, along with the expectation that taxes would drive listings out and suppress Gangnam prices. Of course, one week of price increase cannot definitively determine the success or failure of a policy. What matters is not just the rate of increase but why Gangnam began to move right after the end of the capital gains tax exemption. This timing itself illustrates the paradox of the policy. The moment taxes lock away listings Taxes present sellers with two choices: sell now and pay taxes or hold off and wait. If the tax rate is manageable, taxes encourage sales, prompting sellers to list properties before the burden of ownership increases. This was the effect the policy aimed to achieve before the end of the capital gains tax exemption. However, when the highest tax rate reaches 82.5%, including local income taxes, the calculations change. When sellers feel they will gain nothing from a sale, taxes become a deterrent rather than a motivator. The heavier the tax burden, the more listings tend to lock up rather than increase, creating a paradox. Properties that were listed before the exemption ended were quickly absorbed. However, homeowners who remained after the exemption ended chose to hold onto their properties. According to the real estate big data platform Asil, over 6,800 apartment listings in Seoul disappeared within a week after the exemption ended. The decline was particularly rapid in non-Gangnam areas such as Guro District (-16.6%), Gangbuk District (-15.2%), and Seongbuk District (-14.1%). As the number of available properties decreased, buyers faced fewer options. In a market where demand remains, a reduction in supply strengthens price support. In real estate, supply does not only refer to new apartment units but also includes existing listings. When taxes fail to motivate sellers and instead lock away listings, market supply diminishes. The government aimed to suppress demand, but in reality, a decrease in supply was the first outcome. When taxes exceed the threshold that pressures sales, they become a mechanism that locks away listings. The recent rebound in Gangnam illustrates where that boundary lies. This paradox is not new. The real estate policies of the Roh Moo-hyun and Moon Jae-in administrations were also subject to this cycle. Regulations aimed at suppressing demand reduced transactions, and the decrease in transactions increased scarcity—a pattern that has repeated itself. As regulations intensified, sellers had greater incentives to hold off. When taxes and loan regulations push demand out of the market, that demand does not disappear but rather lies dormant. The moment a small crack appears, prices return. The recent rebound in Gangnam occurred within that familiar cycle. Gangnam was not a leader but a last bastion More important than the fact that Gangnam prices have risen is that Gangnam was the last to do so. For a long time, Gangnam has been a leading indicator in Seoul's real estate market. Prices in Gangnam would rise first, followed by Mapo, Yongsan, and Seongdong, and then the warmth would spread to the outskirts of Seoul and the metropolitan area. However, this time the order was different. Seoul moved first, and Gangnam joined last. According to the Korea Real Estate Agency, the average increase in the 11 districts of Gangnam was 0.24%, while the average for the 14 districts in Gangbuk was 0.32%. Seongbuk District saw a 0.54% increase, and Jongno District recorded a 0.36% increase, marking the highest weekly rates since 2012. While Gangnam's 0.19% rise is notable, the speed of increases in Gangbuk and non-Gangnam areas is more significant. While Gangnam remained stagnant for 12 weeks, districts like Gangseo, Seongbuk, and Gwanak in non-Gangnam areas built momentum that exceeded the average for Seoul. While Gangnam was restrained, the upward pressure across Seoul remained uncontained. This does not mean Gangnam has collapsed. On the contrary, it indicates that in this phase, Gangnam is not the starting point of the rise but rather the last line of defense. The fact that Gangnam has begun to move again suggests that the symbolic price level, which the government had been holding onto, is now shaking. The rental market had already begun to signal this shift. According to Asil, the number of rental listings in Seongbuk District dropped to 174 on May 14, down from 1,027 a year ago, representing just one-sixth of the previous level. As rental listings decrease, tenants face fewer choices. They may have to accept higher rents, switch to monthly rentals, or return to purchasing homes. This pressure has also affected the sales market. In Seongbuk District, the Gileum New Town 9 complex's 84㎡ units have repeatedly set new price records this year, indicating that buying interest in non-Gangnam areas has already begun to heat up. By the second week of May, apartment rental prices in Seoul had risen by 2.89%, continuing a 66-week streak of increases. This is not just a sales issue but a broader cost of living concern. While headlines have recently focused on Gangnam's price rise, the market had already been moving under the pressures of rental shortages and rising prices in non-Gangnam areas. Demand for Gangnam cannot be explained solely by investment interest. It is a structural demand driven by factors such as school districts, proximity to workplaces, and expectations of redevelopment. Such demand does not disappear under tax pressures. When it remains outside of transactions, it can return to the market once price cracks appear. When regulations aimed at Gangnam reduce the number of properties available for sale, the scarcity of Gangnam increases. The number of buyers remains while the number of sellers decreases, creating a structural imbalance. Concerns about supply also compound the situation. According to Real Estate R114, the number of new apartment units in Seoul is expected to drop from around 17,000 this year to about 8,000 by 2028. If tax changes were the direct trigger for Gangnam's rebound, the rental crisis and supply shortages have already been structural pressures pushing the market upward. The warning left by Gangnam's May rebound The May rebound in Gangnam is not just a simple price change over a week. It signals how taxes operate within the market. The government aimed to draw listings through taxation, but instead, the market saw a reduction in listings after the exemption ended. When taxes fail to change seller behavior, regulations tend to lock away supply rather than suppress demand. The next variable is the tax reform in July. Strengthening property taxes for non-resident homeowners and reducing long-term holding tax exemptions are being discussed. However, the lesson from the current capital gains tax situation is clear. More important than imposing heavier taxes is ensuring that actual listings emerge. If sellers tilt their calculations back toward 'holding rather than selling,' the market is likely to respond in kind. Taxes can be a tool to suppress housing prices. However, once they lock away listings, they become a mechanism that supports prices. The warning left by Gangnam's May rebound lies here: the critical factor is not the intensity of the tax but whether it draws sellers into the market or keeps them locked out. 2026-05-18 06:56:11

Trump and Xi Confirm Joint Goal of North Korean Denuclearization Donald Trump, the President of the United States, and Xi Jinping, the President of China, have confirmed their joint goal of denuclearizing North Korea. This comes amid speculation that the Trump administration may effectively recognize North Korea as a nuclear state, as the White House officially included "North Korean denuclearization" in its documents. On May 17, the White House released a fact sheet from the US-China summit, stating that Trump and Xi "confirmed their joint goal of denuclearizing North Korea." The White House noted that this summit marked the first visit by a U.S. president to China since 2017, emphasizing that the two leaders reached consensus on various issues to enhance stability and trust for global businesses and consumers. However, no specific roadmap regarding North Korean denuclearization was disclosed. Details on negotiation methods, China's pressure tactics on North Korea, and the timeline for resuming U.S.-North Korea dialogue were not included in the fact sheet. While the statement is largely declarative, the confirmation of denuclearization as a joint goal by the two leaders in an official document could serve as a reference point for future discussions on North Korea. The White House also outlined the fundamental direction of the bilateral relationship. The fact sheet indicated that the U.S. and China agreed to build a "constructive strategic stability relationship" based on fairness and reciprocity. Xi is expected to visit Washington this fall, and both countries agreed to support each other as hosts of the upcoming G20 and APEC summits. Middle Eastern issues were also addressed. Both leaders agreed that Iran should not possess nuclear weapons. They called for the reopening of the Strait of Hormuz and expressed that no country or organization should impose tolls on passage through it. The issues of North Korean denuclearization, Iran's nuclear situation, and the Hormuz transit were presented as security concerns. In the economic sector, the establishment of a U.S.-China trade and investment committee was highlighted as a key achievement. The two nations agreed to create a trade committee and an investment committee. The trade committee will manage trade between the two countries, focusing on non-sensitive items, while the investment committee will serve as a forum for discussing investment-related issues between governments. The White House emphasized China's commitment to purchasing more U.S. products and expanding market access. China agreed to address U.S. concerns regarding disruptions in the supply chain of rare earths and critical minerals. Additionally, it was decided that China would approve an initial purchase of 200 Boeing aircraft for its airlines. China also committed to buying at least $17 billion worth of U.S. agricultural products annually from 2026 to 2028 and to renewing registrations for over 400 U.S. beef facilities and resuming poultry imports. The situation on the Korean Peninsula was also discussed in a call between Trump and South Korean President Lee Jae-myung. According to Reuters, Trump explained the outcomes of the US-China summit during their conversation. The two sides discussed U.S.-China relations, economic and trade agreements, the Korean Peninsula situation, and the Middle East. Trump expressed his intention to work closely with South Korea to contribute to peace and stability on the Korean Peninsula.* This article has been translated by AI. 2026-05-18 06:53:05