Companies Pretend to Use AI Effectively While Downsizing Employees "To survive, we must use AI effectively. So, let's just pretend to do so." The phenomenon of 'AI washing,' where companies exaggerate their use of artificial intelligence, is permeating organizations from top to bottom. Employees are shifting unnecessary tasks to AI to boost their usage scores, while management is using AI as a pretext for layoffs despite a lack of profitability. According to the IT industry on May 17, Amazon has implemented its internal AI agent platform, 'Mesiclo,' mandating that over 80% of developers use AI tools weekly and tracking individual token consumption on an internal leaderboard. Tokens represent units of text processed by AI, with higher usage leading to increased consumption. Mesiclo is designed to automate repetitive tasks such as code deployment, email sorting, and Slack message handling. However, some employees have been found engaging in 'token macing,' using AI for tasks that do not require it. This practice reflects a superficial increase in usage that impacts performance evaluations. Similar cases have been reported at Meta and Microsoft last month. Research from Gartner, which surveyed 350 executives from global companies with annual revenues exceeding $1 billion, revealed that 80% of firms implementing AI and automation technologies have conducted workforce reductions. However, most companies that have downsized under the guise of AI have shown low returns on investment (ROI). In contrast, companies performing well are utilizing AI as a tool for productivity enhancement rather than layoffs. According to outplacement firm Challenger, Gray & Christmas, the number of layoffs attributed to AI this year has already reached 49,135, nearing last year's total. In March and April, AI was the leading cause of layoffs. This situation exemplifies Goodhart's Law, which states that once a measure becomes a target, it ceases to be a good measure. The pressure to demonstrate 'AI engagement,' whether through token consumption or layoff announcements, prioritizes numerical management over actual performance, highlighting a structural issue. Sam Altman, CEO of OpenAI, pointed out in February that there is a tendency to blame layoffs on AI, a form of AI washing. Dario Amodei, CEO of Anthropic, initially claimed that AI would replace half of entry-level white-collar jobs but has since retracted that statement.* This article has been translated by AI. 2026-05-17 15:51:00

Interview with Director Kim Min-ha: 'Girls Do Not Die... We Want to Keep Winning' Short films like 'Red Mask KF94' and 'Burger Song Challenge,' along with the movies 'Amoeba Girls and School Ghost Stories: Founding Day' and 'Student Teaching,' showcase Kim Min-ha's talent for twisting familiar realities with peculiar imagination and a sense of comedy. In her feature films, she has layered the friendship of girls with the anxieties of the times, making her unique style more evident. "Movie ratings are either 1 or 10," she joked, indicating the strong support from her audience."Those who rated it 1 and those who rated it 10 call each other viral. But now I feel like I understand a bit about what the audience wants. Once we officially release the film, I expect more feedback, but from the reactions at the preview, I thought, 'I understand what these people want to see.' So, I felt the urge to take a gamble. Basically, making this kind of personal film while trying to gain everyone's recognition seems to lead to unhappiness. If I break down that fence, everything I have could collapse too. Right now, I think I'm working to not lose the audience that appreciates my films."Her new film 'Student Teaching' is a high school horror-comedy about enthusiastic student teacher Eun-kyung facing a death mock exam against a ghost from the college entrance exam. Although it continues the narrative of her previous work 'Amoeba Girls and School Ghost Stories: Founding Day,' the production process was not smooth. While the previous film garnered 30,000 viewers and built a fan base, it still faced harsh evaluations in the market."'Amoeba Girls and School Ghost Stories' was originally planned as a series. We intended to continue with titles like 'Founding Day' and 'Student Teaching.' However, after 'Founding Day' attracted 30,000 viewers, expectations for the series diminished. While I'm grateful for the 30,000 viewers, it's hard to consider it a commercial success by the market's standards. So, instead of continuing the series title, we released it under the name 'Student Teaching.'"The production environment also changed significantly. They had to complete the film with a budget much smaller than initially anticipated. Nevertheless, most of the staff who had worked on the previous film returned. For Kim, that time was also a survival process for making the film."We ended up filming with less than half of the budget we thought we needed. 95% of the staff were the same as the previous film, and they all had a passion for the project. At the start, I gathered the staff and said, 'The production cost is this much. It's less than half of what we originally planned. So, feel free to leave; I won't hold it against anyone.' Yet, no one left. Everyone stayed. We filmed by cutting down on what was possible. The actors also worked very hard. We shot tightly, and I edited the film myself to submit it to festivals, but I completely burned out."A turning point came unexpectedly when 'Amoeba Girls and School Ghost Stories: Founding Day' was released on an online streaming service, gaining significant popularity. On social media, it was referred to as a 'Girls Night Movie,' revealing another potential."Last September, when 'Amoeba Girls and School Ghost Stories' was released on OTT, it became a 'boom.' It gained traction as a 'Girls Night Movie.' With an audience supporting the film, discussions about making 'Student Teaching' began. I often found myself emotional during that time. This film is about the friendship of girls. But as it became a 'Girls Night Movie'... isn't 'Girls Night' a time for friends to gather and share their friendship? Ultimately, I feel that the friendship and laughter of girls saved this film. I cried a lot reading the reviews."The affection of fans for the previous work became an important guideline for Kim Min-ha in creating the sequel. He wanted to maintain the attitude that audiences loved while avoiding repeating the same story. He aimed to convey the message that 'girls win' while addressing the sadness of contemporary issues through the lens of educational authority and public education."What I wanted to keep as a series was the sentiment that 'girls do not die, girls win.' I wanted to carry that forward. What I wanted to do differently is that I believe comedy should contain the sadness of the times. While the previous work had sadness about competition, this film aims to capture the sadness surrounding educational authority, the disappearance of traditional schools, and the expansion of private education. So, I thought it wouldn't be the same as the previous work."The issue of educational authority became a significant focus for Kim after his short film 'Burger Song Challenge' was selected as the closing film for the 2023 Education Film Festival. The closing ceremony coincided with the 49th memorial of the late teacher Seo Yi-cho and 'Public Education Suspension Day.' Teachers dressed in black filled the audience, and after watching the film, many expressed that they found comfort in it. Kim felt the weight of the reality of crumbling educational authority more profoundly than before."In 2023, my short film 'Burger Song Challenge' was selected as the closing film for the Education Film Festival. The closing ceremony was on the day of the 49th memorial of the late teacher Seo Yi-cho and 'Public Education Suspension Day.' Teachers dressed in black watched the film and told me they found comfort in it. I realized that the issue of crumbling educational authority was much larger than I had thought. From that moment, I wanted to create a film addressing the sadness surrounding this issue."This experience also influenced the direction of 'Student Teaching.' Kim felt that the issue of educational authority was not just a social issue reported in the news but a sadness that the current era carries. In this process, he incorporated the disappearance of traditional learning spaces, the instability of public education, and the growing private education market into the film."As I became interested in the issue of educational authority, I realized it was much more serious than I had thought. It felt like more than just a social issue; it felt like a sadness of our time. So, I decided that 'Student Teaching' should include a story about educational authority. We were taught that 'we do not step on the shadow of our teachers' as a virtue. But I became curious about how that sentiment has disappeared. In that process, I also looked into the background of the disappearance of traditional schools. Shamefully, I thought traditional schools naturally disappeared during modernization, but I learned that there was history and sadness behind it. Those emotions intertwined, leading me to think about the instability of public education and the reality of the expanding private education market. It's strange and sad that while the number of students decreases, private education continues to grow. Ultimately, I believe all of this reflects the sadness of our current era."'Student Teaching' does not provide answers to these issues. Kim also expressed a desire to create a moment for the audience to reflect rather than present solutions. He believes that embedding the sadness of the times within a comedic genre is his approach to comedy."This film does not provide answers. However, if it can serve as a moment for audiences to reflect on the issues of educational authority, the history of disappearing traditional schools, and the reality of expanding private education, I would consider it a success. I wanted to include the sadness of the times within a film that is meant to be enjoyed and laughed at."The casting of Han Sun-hwa also aligned with this perspective. While choosing a popular face was part of the decision, Kim emphasized the importance of balancing comedy and sadness. He aimed for humor that is funny but not foolish, light yet not trivial. Han Sun-hwa resonated with this vision and helped anchor the film."I had many serious discussions with actress Han Sun-hwa. We talked about how to convey this sadness and how to make it funny without being foolish. She effectively anchored the film. For her, the comedic aspects were secondary; the primary focus was on the sadness of educational authority. She empathized with this sadness. Fans who come expecting Han Sun-hwa will see a different side of her talent in this work."Finally, Kim reflected on the sentiments received from audiences who appreciated her previous work. Although the film elicited strong opinions, the responses from viewers who accurately understood her style and attitude left a lasting impression. In particular, a review stating, "Choosing the wrong answer because you know the right one" resonated with Kim as a guiding principle for the series moving forward."There was a line from a review of 'Amoeba Girls and School Ghost Stories: Founding Day' that deeply moved me. It said, 'Choosing the wrong answer because you know the right one.' In genre films, there is often a path considered the right answer. However, 'Amoeba' is seen as a film that continuously deviates and goes off-road. I thought, 'Ah, this is something I must not forget when making this series in the future.'"* This article has been translated by AI. 2026-05-17 15:47:32

Jung Cheong-rae Urges Democratic Unity for Jeonbuk's Development Jung Cheong-rae, chairman of the Democratic Party, called on May 17 for a unified Democratic presence in Jeonbuk's upcoming gubernatorial election, targeting independent candidate Kim Kwan-young. He emphasized that having a Democratic president, governor, and lawmakers is essential for effective development in the region, particularly highlighting the importance of collaboration on projects like the Saemangeum development. "For Jeonbuk to thrive, we need to be united as the Democratic Party," he stated. Speaking at the opening of Park Ji-won's campaign office for the National Assembly by-election in Jeonbuk's Gimje, Jung argued that a cohesive Democratic presence is necessary for progress. He reiterated, "With the president, governor, and all lawmakers from the Democratic Party, everything will function smoothly like a well-oiled machine." Jung also addressed the need for collaboration on regional development, stating, "Shouldn't President Lee and Jeonbuk work together for development?" He stressed that unity within the Democratic Party is crucial for successful initiatives. Earlier that day, after attending a mass at Nabawi Cathedral in Iksan, Jung spoke with reporters about Kim Kwan-young's independent candidacy after leaving the Democratic Party. He asserted that the government and party must operate as one team to ensure efficiency in all matters. "If any of these roles are not filled by the Democratic Party, it could create challenges in working together effectively," he noted.* This article has been translated by AI. 2026-05-17 15:42:30

KT SAT Brings Starlink Internet to Ulleungdo Cruise Ship "It feels like the internet is faster on the ship than at home." On May 12, aboard the New Sea Dao Pearl, a large passenger ferry traveling between Pohang and Ulleungdo, a video call via KakaoTalk with a friend on land was conducted without interruptions or audio delays. The 40-minute call used about 1GB of data, with no noticeable drop in speed throughout the conversation. The onboard communication environment exceeded simple web browsing and video calls, proving suitable for actual development work. Using OpenAI's Codex, a so-called 'Vibe coding' method was employed to implement a news keyword AI agent, completing a task that took about 10 minutes on land in approximately 16 minutes onboard. Generative AI-based coding was seamlessly executed while the ferry was in motion. According to the Korea Internet & Security Agency's speed measurement app, the download speed in the cruise cabin reached 181.34 megabits per second (Mbps), nearly identical to the corridor measurement of 180.68 Mbps. Historically, internet access on large passenger ferries was limited. Existing geostationary satellite services offered maximum speeds of around 2 Mbps, making even simple message sending challenging for over 1,000 passengers. However, with KT SAT's introduction of Starlink-based low Earth orbit satellite services, onboard communication has significantly improved. George Hoon, head of KT SAT's Global and Marine Customer Service Solutions Task Force, stated, "In the past, it was difficult to send even a single message when many passengers were onboard. By combining Starlink with our own solutions, we have made it possible to achieve internet conditions comparable to those on land." KT SAT has also implemented its proprietary solution, 'XWAVE-ONE,' which adds features such as the separation of passenger, crew, and operational networks that are difficult to achieve with Starlink alone. Hoon explained, "Starlink does not have separate network segregation or billing functions necessary for ship operations, so we needed to develop a solution. XWAVE-ONE allows for the separation of passenger and operational networks while managing usage effectively." One of the most notable services is KT's table order service, 'HiOrder,' installed in each cabin. Passengers can order beverages, snacks, and even local specialties from Ulleungdo through the in-room screen. By establishing a stable high-speed Wi-Fi environment within the moving ship, onboard commerce services have become possible. To achieve this, KT SAT also conducted a separate design process for wireless access points (AP) tailored to the cruise ship's internal structure. Lee Bong-ha, a member of KT SAT's Global and Marine Customer Team, emphasized, "Our staff measured and adjusted the AP locations by going through the cabins and restrooms to ensure stable communication quality, even when the door is closed and inside the restroom." This service not only improves cruise internet access but also expands revenue models for the shipping company. According to KT, the service currently generates an average additional net profit of over 1.5 million won per day. In the future, KT aims to establish a total of 150 HiOrder units on the Ulleungdo cruise, targeting related revenue of over 10 million won. KT SAT is currently in discussions with overseas shipping companies based on the XWAVE-ONE solution. Hoon noted, "There are not many cases of combining network segregation and billing systems with Starlink-based ship networks, and we are receiving inquiries from foreign shipping companies regarding this matter."* This article has been translated by AI. 2026-05-17 15:39:37

KT Provides Reliable Communication Services on Ulleungdo Island On May 12, a passenger ferry departed from Pohang and arrived at Ulleungdo, South Korea's easternmost island, after a six-hour journey across the East Sea. Located about 208 kilometers from the mainland, Ulleungdo is a remote area prone to isolation during severe weather, yet its communication network maintains a level of stability comparable to that of the mainland. According to KT, approximately 3,800 out of 5,500 households on Ulleungdo are subscribed to internet services, while over 4,200 households use IPTV services. Yoon Chang-ho, head of KT's Pohang Operations Team in the Daegu-Gyeongbuk Access Operations Center, stated, "KT is the only telecom provider offering 10 gigabits per second (10Gbps) internet service on Ulleungdo. Beyond commercial services, we also play a critical role in the national disaster communication network for the Ulleungdo and Dokdo regions." ◇Microwave Backup Network Ensures Connectivity During Cable Disruptions The backbone of Ulleungdo's communication network is its redundancy structure. The island is connected to the mainland via an undersea fiber optic cable, but disruptions caused by typhoons or underwater accidents can lead to complete communication outages. To mitigate this risk, KT has established a microwave (MW) backup network, the only one of its kind among the three major telecom providers, linking the mainland to Ulleungdo. This network aims to maintain essential national communication and internet services during undersea cable failures. The Gamulgyo relay station, located in Ulleung-eup, serves as a key point in the maritime communication network connecting Ulleungdo and Dokdo. One side of the station faces Mount Hambak in Gangwon Province, while the other faces Dokdo. Long-term evolution (LTE) antennas are installed at the top of the tower for long-range maritime coverage, with 5G equipment positioned in the middle. Through this network, KT provides stable services not only to the residents of Ulleungdo but also to distant fishing vessels. Currently, a dedicated team of nine KT employees, including two full-time staff and seven from affiliated companies, is stationed on the island to manage maintenance and respond to outages. Kim Won-hun, deputy head of the Pohang Operations Team, noted, "We are actively installing base stations in the highlands of Ulleungdo to improve overall communication quality." ◇Communication Technology Upholds 'Basic Communication Rights' for Residents KT's support for communication in remote areas extends to Jukdo and Dokdo, which are affiliated with Ulleungdo. Currently, Jukdo is home to only one resident. KT has established a customized communication support system that converts LTE signals to provide internet services for this individual. As a result, the resident can access the internet and use 5G smartphones. Lee Chang-ha, head of the engineering team at KT's Daegu-Gyeongbuk Access Operations Center, explained, "Given the challenging environment for installing fiber optic cables, we have adopted a method of converting LTE signals to provide internet services. We regularly check the quality and monitor for any issues." Dokdo also saw its communication network established by KT in November 2018, becoming the first to do so. Since then, continuous equipment upgrades have allowed for wireless transmission speeds of up to 1 gigabit per second (Gbps). ◇Engineers Overcome Snowstorms to Restore Internet on Ulleungdo Maintaining and managing the communication network on Ulleungdo goes beyond simple facility upkeep. Due to the island's characteristics, which include frequent severe weather and isolation risks, the safety and daily lives of residents are at stake. Jung Hyun-yong, a manager in KT's Southern Daegu Business Support Team, shared his experience of restoring communication equipment during heavy snowfall while working on Ulleungdo. He recounted, "At that time, over 1.2 meters of snow piled up, blocking the entrance to residents' homes. The outdoor internet lines were also severed, so I had to clear the snow and restore the communication facilities on-site." He added, "For the safety of residents, I spent about an hour digging out the snow. Such situations are common on Ulleungdo." During winter, severe weather can disrupt ferry services, making it difficult to procure communication materials. In these cases, on-site engineers temporarily install personal equipment or office devices to support internet and TV access for elderly residents. Kwon Dae-hyun, a manager in KT's Southern Daegu Business Support Team, emphasized, "In Ulleungdo, communication is not just a convenience; it is often tied to safety. Our most important role is to ensure that residents can live without inconvenience."* This article has been translated by AI. 2026-05-17 15:28:33

South Korean government threatens emergency mediation to stop Samsung strike SEOUL, May 17 (AJP) - The South Korean government officially raised the possibility of invoking emergency mediation powers for the first time to avert a looming general strike at Samsung Electronics. Prime Minister Kim Min-seok issued a public statement on Sunday, warning that the state would use all available legal measures if the walkout severely damages the national economy. The announcement puts maximum pressure on both management and labor ahead of a critical post-mediation meeting scheduled for May 18 at the National Labor Relations Commission. This session represents the final opportunity for both sides to reach an agreement before the planned strike begins. During his address at the Central Government Complex in Seoul, Kim emphasized the heavy responsibility resting on the negotiators. He stated that if the Samsung Electronics strike threatens to inflict massive damage on the national economy, the government will be forced to consider all options, including emergency mediation, to protect public interests. Labor Minister Kim Young-hoon attended the briefing alongside the prime minister. As the labor minister, he holds the exclusive legal authority to invoke the emergency mediation order. Under South Korean labor law, an emergency mediation order can suspend any planned strike for a mandatory thirty-day period if the labor action jeopardizes daily public life or threatens the national economy. During this freeze, the National Labor Relations Commission conducts mandatory arbitration, and it can enforce a binding settlement if an agreement cannot be reached voluntarily. The government previously maintained that it was too early to review such a drastic measure, preferring that the two sides resolve the dispute independently. However, state officials shifted their stance as industry warnings grew over potential direct and indirect economic losses reaching one hundred trillion won. Major labor organizations strongly condemned the government's announcement. The Korean Confederation of Trade Unions released a statement opposing any attempts to restrict the constitutional rights of workers using economic logic, while the Federation of Korean Trade Unions criticized the potential application of emergency mediation as an inappropriate restriction on the right to strike. The high-stakes meeting on May 18 was secured after Kim Young-hoon held consecutive meetings with union leaders and management on May 15 and May 16. In a minor breakthrough, management agreed to replace its chief negotiator, Vice President Kim Hyung-ro, while the union accepted a request to let him attend the session without speaking. The Samsung Electronics union has scheduled an eighteen-day general strike from May 21 to June 7, with labor leaders expecting up to fifty thousand members to participate. The union is demanding a fixed performance bonus equal to fifteen percent of the company's operating profit, while management proposes maintaining the current system alongside uncapped special rewards. 2026-05-17 15:28:08

Democratic Party Reports Threats Against Leader Jeong Cheong-rae to Police As the June 3 local elections approach, the Democratic Party has reported to the police threats of a terror plot targeting its leader, Jeong Cheong-rae. The party leadership is taking the matter seriously and has indicated a strong response as the official campaign period nears. On May 17, Kang Jun-hyun, spokesperson for the Democratic Party's central election campaign committee, stated at a press conference that "reports of collective terror plotting are coming in from group chat rooms on social media." He added that the party has formally requested the police to conduct a swift investigation and ensure thorough protection for Jeong. Kang emphasized that the situation involves serious criminal implications, noting that expressions beyond mere anger, including recruitment for assassination, have been mentioned. "We will respond firmly, considering this a major crime involving potential accomplices," he said. In response to the emerging threats against Jeong, the National Police Agency has decided to activate protective measures earlier than planned, ahead of the official campaign start date of May 21. There are speculations within political circles that the allegations may be linked to independent candidate Kim Kwan-young, who has had recent conflicts with the party over nominations. However, a Democratic Party official responded cautiously, stating, "The connection to specific local party members using anonymous accounts should be clarified through investigation." Jeong addressed reporters after attending a mass at Nabawi Catholic Church in Iksan, saying, "Recruiting an assassination squad is a serious crime. I cannot stop my activities, but I will meet the public with a more humble attitude. If anyone reflects on their mistakes and confesses, I will appeal for leniency to the authorities."* This article has been translated by AI. 2026-05-17 15:27:00

Auto Insurance Losses Weigh on Major Korean Insurers Auto insurance is significantly impacting the financial performance of the property insurance sector in South Korea. As the cumulative effects of premium reductions take their toll, rising costs for parts and repairs have worsened the profitability of major insurers. Additionally, concerns are growing that the introduction of discounts linked to vehicle registration policies will further strain profitability. According to the insurance industry on May 17, the top five property insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, KB Insurance, and Meritz Fire & Marine Insurance—reported a loss of 46.1 billion won in the auto insurance sector during the first quarter of this year, a reversal from a profit of 88.8 billion won in the same period last year. This marks a decline in profitability of over 130 billion won within a year. By company, KB Insurance recorded the largest loss at 24.9 billion won, followed by Hyundai Marine & Fire Insurance with a loss of 14 billion won, Samsung Fire & Marine Insurance with a loss of 9.6 billion won, and Meritz Fire & Marine Insurance with a loss of 6.4 billion won. DB Insurance was the only company to post a profit of 8.8 billion won, but this was an 80.9% decrease compared to the same period last year, when it earned 46 billion won. The industry attributes the worsening loss ratio in auto insurance as a primary factor. The cumulative loss ratio for the top five insurers in the first quarter of this year reached 85.2%, up from 82.5% in the same period last year. Given that the breakeven point for auto insurance is typically around 80%, this indicates a significant decline in profitability. The decline in auto insurance performance is largely due to the cumulative effects of premium cuts over the past four years. According to data from the Financial Supervisory Service, the average annual reduction in auto insurance premiums has been as follows: -1.2% in 2022, -1.9% in 2023, -2.5% in 2024, and -0.8% in 2025. As a result, the auto insurance sector reported a combined loss of 708 billion won last year across 12 companies, a substantial increase from a loss of 9.7 billion won the previous year. This was driven by a decrease in premium income of 407.3 billion won (2.1%) alongside an increase in costs for hospital bills, auto parts, and repair labor, which rose by 364.3 billion won (2.2%). The outlook remains bleak. The insurance industry anticipates continued upward pressure on loss ratios due to rising prices for vehicle parts, repair labor, and rental costs, influenced by recent inflation trends. Furthermore, in response to government policies addressing high fuel prices, insurers are expected to face additional profitability pressures as they introduce a 2% discount for auto insurance premiums for vehicles participating in the vehicle registration system. An industry official stated, "While auto insurance premiums saw a slight increase earlier this year for the first time in five years, the impact of the previous four years of premium reductions continues to drive the loss ratio downward. The delay in implementing the '8-week rule' has further exacerbated the burden on insurers."* This article has been translated by AI. 2026-05-17 15:24:23

Song Eon-seok Criticizes Jeong Won-o Over Assault Allegations On May 17, Song Eon-seok, the floor leader of the People Power Party, criticized Jeong Won-o, the Democratic Party's candidate for Seoul mayor, regarding allegations of assault. He questioned, "Is this the dignity of progressivism?" In a Facebook post, Song stated, "Jeong has lectured Oh Se-hoon, the People Power Party's candidate for Seoul mayor, saying he should learn 'the dignity of conservatism.' However, the dignity of conservatism has been used as a weapon by the Democratic Party against us." He further asked, "Does the Democratic Party lack the dignity of progressivism and the dignity of a ruling party?" He pointedly remarked, "Is Jeong's claim of progressivism credible when he assaulted two police officers and two citizens while intoxicated, only to later romanticize it by blaming the May 18 incident?" Song also launched an attack on Jeon Jae-soo, the Democratic Party's candidate for Busan mayor. He criticized Jeon for failing to answer whether he received a Cartier watch at the Unification Church's Cheongpyeong Palace while shifting legal responsibility onto a 24-year-old intern. "Is this the dignity of progressivism?" he asked. He concluded by expressing hope that Democratic candidates would embody the dignity of progressivism and the dignity of a ruling party. Song emphasized, "The decline in political dignity today is due to the ruling party's unilateral passage of various unjust laws using its majority power and its efforts to leverage state power to push for the dismissal of the president's indictment. I hope to see the dignity of the ruling party demonstrated."* This article has been translated by AI. 2026-05-17 15:21:55

SK Square Dominates New Stock Valuation Rankings as Naver Falls The KOSPI index has surpassed 8,000 points for the first time, leading to significant shifts in the rankings of stocks based on adjusted stock prices, which standardize face values for comparison. Semiconductor and beauty stocks have risen, while platform and gaming stocks have dropped in rank. According to the Korea Exchange, as of May 15, following the KOSPI's brief touch of 8,000 points, SK Square maintained its top position in the adjusted stock price rankings. It was followed by APL, Samsung C&T, Hanmi Semiconductor, Krafton, Samsung Electronics, SK, Dalba Global, Naver, and Hyundai AutoEver in the top ten. Adjusted stock prices are calculated by standardizing the face value of listed companies to 5,000 won, correcting distortions caused by varying face values and allowing for a more uniform comparison of stock prices. Comparing the rankings to February 25, when the KOSPI closed above 6,000 points, there have been notable changes among the stocks. At that time, the rankings were led by SK Square, followed by Samsung C&T, APL, Krafton, Naver, Hanmi Semiconductor, SK, Samsung Electronics, Dalba Global, and MNC Solutions. While SK Square has retained its top position, the order of the other companies has shifted. A standout feature is SK Square's dominance since it first reached the top of the adjusted stock price rankings in November of last year. Its adjusted stock price surged from 32.35 million won (closing price of 647,000 won) on February 25 to 54.9 million won (closing price of 1,098,000 won) as of May 15, solidifying its lead. This increase is attributed to strong performance from SK Hynix and active shareholder return policies, including stock buybacks and retirements. In contrast, the rankings for companies in the top ten have varied based on industry leadership. APL, benefiting from strong K-beauty exports, recorded an adjusted stock price of 20.2 million won, moving ahead of Samsung C&T to secure second place. Dalba Global also climbed from ninth to eighth. Hanmi Semiconductor, a beneficiary of AI semiconductor trends, rose from sixth (10.725 million won) in February to fourth (18.45 million won) by May 15, while Samsung Electronics improved from eighth to sixth. Conversely, leading platform and gaming stocks have struggled. Krafton dropped from fourth to fifth, and Naver fell from fifth (12.65 million won) in February to ninth (10.175 million won) by May 15, landing at the bottom of the top tier. Concerns over global commerce platform competition and infrastructure cost burdens appear to have impacted investor sentiment. Analysts view SK Square's sustained top position as a reflection of the semiconductor industry's boom and a virtuous cycle of shareholder returns. An analyst from NH Investment & Securities, Ahn Jae-min, noted, "The significant share of SK Hynix in SK Square's net asset value (NAV) has led to a steep rise in its stock price, positively impacting the company's overall value." Ahn also adjusted the NAV discount rate from 35% to 25%, reflecting the anticipated growth in dividends due to strong semiconductor market performance. He identified three factors contributing to SK Square's high stock price elasticity: potential for mergers and acquisitions within the semiconductor value chain, ongoing stock buybacks and retirements (with 210 billion won planned for 2026), and a lower market capitalization ratio compared to SK Hynix, making it easier for institutional investors to enter. On the other hand, Naver's decline in adjusted stock price rankings has been attributed to margin contraction due to infrastructure cost burdens and a lack of short-term momentum. Lee Hyo-jin, an analyst at Meritz Securities, stated that while Naver's first-quarter consolidated revenue (3.2411 trillion won) met expectations, its operating profit (541.8 billion won) fell short in terms of margins. He noted, "The depreciation burden of computing assets has led to a 32% increase in infrastructure costs compared to the same period last year," adding that Naver plans to purchase 1 trillion won worth of GPUs, indicating that related costs are expected to continue rising throughout the year. Looking ahead, Lee remarked, "The delay in regulatory approval for mergers until the second half of the year means we are currently in a momentum vacuum. Interest in the market is likely to increase once digital asset legislation comes into view later this year." Meanwhile, financial industry experts caution against placing excessive importance on adjusted stock price rankings or using them as absolute investment indicators, as they do not accurately reflect a company's fundamental value. One industry insider stated, "Adjusted stock prices merely rank how expensive a stock is in absolute terms and should not be mistaken for a measure of a company's true scale and value, which should be assessed by market capitalization." In fact, Samsung Electronics, which holds the top position in KOSPI market capitalization, ranks only sixth in adjusted stock price, suggesting that this metric should be used as a reference tool for correcting price distortions rather than a fundamental indicator. Another insider noted, "When comparing stock prices from the past, when they were priced in the hundreds of thousands of won before stock splits, adjusted stock prices can be a useful benchmark. However, it should only serve as a reference tool for correcting price distortions caused by face value differences and should not be misinterpreted as a fundamental indicator."* This article has been translated by AI. 2026-05-17 15:16:45