K-Content Industry Faces Challenges Despite Record $14.9 Billion Exports As K-Culture emerges as a new growth engine for the national economy, some experts warn that the K-content industry may be entering a decline phase, a theory referred to as the 'peak theory.' This concern stems from an increasing reliance on foreign OTT platforms, which complicates the acquisition of key intellectual property (IP), alongside the rapid expansion of Chinese short drama platforms into global markets, including Southeast Asia. According to the Ministry of Culture, Sports and Tourism, K-content exports reached a record $14.9 billion (approximately 22.566 trillion won) last year. The influx of foreign tourists to South Korea also hit an all-time high of 18.94 million, driven by the spread of K-Culture. The government is expanding support to enhance the competitiveness of the content industry. In 2026, it plans to establish the largest-ever cultural and film fund, totaling 731.8 billion won, and is preparing a global league fund based on foreign capital worth 150 billion won. In January of this year, a tax credit for webtoon production costs was introduced, and the expiration date for the tax credit on video content production costs has been extended to 2028. The growth of K-content is positively impacting various sectors, including tourism, beauty, and food. The interest in South Korea generated through content is believed to enhance the country's brand value, creating a virtuous cycle that boosts demand for consumer goods and tourism. In fact, the Ministry of Culture estimates that when including beauty and food exports, the total K-Culture export scale reached approximately $71.8 billion last year, making it the third-largest export industry in the country, following semiconductors ($173.4 billion) and automobiles ($72 billion). However, the mood in the industry is not entirely optimistic. The profitability of the content sector is declining due to intensified competition with global OTT platforms, rising production costs, and the proliferation of illegal distribution. Minister of Culture, Sports and Tourism Choi Hwi-young noted at a press conference on May 28 that during a previous briefing, he had mentioned, "K-Culture may have reached its peak," emphasizing the need for both the private sector and the government to seize current opportunities and collaborate. The most pressing issue is the growing dependence on foreign OTT platforms. While the global status of K-content has improved, challenges such as reduced funding for the broadcasting industry, skyrocketing production costs, and limitations of advertising-based revenue models are hindering the competitiveness of domestic platforms. Notably, global OTT providers are adhering to a 'production investment model' that grants them exclusive rights to content IP, making it difficult for domestic producers to secure licensing revenue or secondary business rights, even if their works achieve global success. Industry insiders express concern that the K-content sector could devolve into a 'subcontracting base for global platforms.' One industry source remarked, "Recently, we have seen a surge of Japanese and Chinese dramas on Netflix. These countries have lower production costs compared to Korea," adding that the success of the Chinese drama 'The Legend of the Jade Sword' is indicative of this trend. Changes in content consumption patterns also present new variables. The short drama market from China is rapidly growing, particularly in Southeast Asia, putting pressure on the existing long-form streaming ecosystem. Chinese short drama platforms like RealShot and DramaBox have begun to aggressively target overseas markets in response to saturation in their domestic markets, resulting in a cumulative global download count exceeding 370 million as of the first quarter of last year. Cultural critic Jeong Deok-hyun stated, "While interest and demand for K-content in overseas markets remain high, the internal foundation of the industry is not solid. Even if content is produced, securing sales and attracting investment is challenging." He further noted, "Just because some indicators have reached record highs does not mean the entire industry is thriving. The situation is difficult, as rising production costs and a market restructured around OTT platforms have made investors more cautious about risk management, leading to a reduction in production by traditional media outlets and a general contraction in content investment." 2026-06-02 15:24:00

Budget Mobile Providers Lose Subscribers for Second Consecutive Month The budget mobile provider (MVNO) market has recorded subscriber losses for the second consecutive month. After experiencing growth through the first quarter of the year, MVNOs shifted to a decline in April, which worsened in May. According to data from the Korea Telecommunications Operators Association (KTOA) released on June 2, the net loss of MVNO subscribers in May totaled 11,211. This marks an increase of 3,858 from the 7,353 subscribers lost in April. This is the first time MVNOs have seen two consecutive months of subscriber losses since the SK Telecom (SKT) SIM card hacking incident in August and September of last year. However, analysts note that this decline is occurring amid intensified competition among the three major telecom companies—SKT, KT, and LG Uplus—to attract subscribers. Following the repeal of the Mobile Device Distribution Improvement Act, competition over subsidies has intensified, particularly with the recent launch of the Galaxy S26 series, which has accelerated the departure of MVNO users. Forecasts suggest that the exodus from the MVNO market may worsen. LG Uplus has introduced an integrated pricing plan that includes a 5G option starting this month, while SKT and KT are set to launch mid-range pricing plans on July 1. This raises concerns that the appeal of low-cost plans, which have been a key competitive advantage for MVNOs, may diminish. The mobile telecommunications market is rapidly transitioning from LTE to 5G. According to data from the Ministry of Science and ICT released on May 21, LTE subscribers decreased from 19,329,763 in August of last year to 18,323,894 in March, a drop of 1,005,869. In contrast, 5G subscribers increased from 37,506,623 to 38,927,406 during the same period, a rise of 1,426,783. A significant issue for the MVNO market is its continued reliance on LTE. As of March, LTE subscribers accounted for 93% of all MVNO users, totaling 9,713,009, while only 584,315 were 5G subscribers, representing just 5.6%. Industry experts express concern that if the three major telecom companies expand integrated pricing plans that combine LTE rates with 5G services and data assurance options, the demand for low-cost LTE plans—MVNOs' core competitive edge—could diminish. The ongoing subscriber losses for MVNOs are seen as closely linked to these market changes. Some analysts argue that the government's policies aimed at reducing communication costs may conflict with efforts to support the MVNO sector. While the government has previously supported MVNOs to foster competition in the telecom market, the recent push for mid-range 5G pricing plans from major carriers may inadvertently weaken MVNOs' price competitiveness. One industry expert noted, "In a market where MVNOs exist, directly lowering the prices of telecom companies can ultimately narrow the space for MVNO operators. If the goal is to alleviate the burden of communication costs, it would be more effective to lower wholesale prices for MVNOs rather than adjusting retail prices for telecom companies." 2026-06-02 15:24:00

New boy band to hold debut showcase in Tokyo later this month SEOUL, June 2 (AJP) - A new boy band will make a debut, Starship Entertainment said on Tuesday. In partnership with Japanese entertainment agency Amuse, the seven-member rookie band, dubbed AEN, will consist of four Korean and three Japanese members: Bomin, Haru, Haruto, Jiyong, Junseo, Kaira, and Kyuhyun. Their name stands for "a new era of now" and also carries the meaning of "eternity" in Japanese. Six members excluding Haruto, previously appeared on Starship Entertainment's audition project "Debut's Plan," which aired last year. AEN will hold their first showcase in Tokyo on June 27, with about 3,000 fans to be invited to the event through a lottery. Fans can sign up for the showcase until June 8, with details available on AEN's Japanese website. 2026-06-02 15:12:48

President Lee Urges Accountability from Prosecutors, Cautions Against Errors President Lee Jae-myung stated on June 2 that "any organization should apologize and retract if it makes a mistake." During a Cabinet meeting and emergency economic assessment session at the Blue House, President Lee made these comments after receiving a report from Acting Prosecutor General Koo Ja-hyun on the government's achievements in its first year. He cautioned, "We must not fall into the trap of believing we are infallible." He emphasized, "It applies to any organization that if they make a mistake, they should apologize and retract their actions." President Lee described the prosecution as a "quasi-public, quasi-judicial organization with public duties," asserting that it wields significant power and must bear corresponding responsibilities. However, he did not specify any particular instances where an apology or retraction would be necessary. His remarks were interpreted as a reference to the Democratic Party's push for the dismissal of prosecutions. Ahead of the June 3 local elections, the party has proposed a bill to establish a special prosecutor to grant authority to cancel related prosecutions. President Lee expressed gratitude for the prosecution's efforts over the past year, saying, "I know the prosecution has been under a lot of pressure lately, but I appreciate the results they have achieved despite that." In response, Han Dong-hoon, an independent candidate running in the Busan North Gap by-election, criticized the president's comments on Facebook, asking, "What are you suggesting should be canceled?" He claimed the remarks were a prelude to pushing for the dismissal of his own case after the election. Han urged voters to support him, stating, "Tomorrow, on the day of the local elections, I will enter the National Assembly, so please vote for Han Dong-hoon, number 6 on the ballot." Additionally, President Lee called for the courts to consider making lower court rulings public. He noted that currently, most published rulings are limited to cases that have been finalized by the Supreme Court, suggesting that expanding this scope would enhance transparency in the judicial process. He pointed out, "If lower court rulings are not made public, how can the public understand the standards by which the courts make their judgments?" Regarding concerns about personal information exposure, he suggested that names in the rulings could be anonymized, stating, "We should legislate on this matter soon." 2026-06-02 15:12:00

Samsung Heavy wins $2.8 billion FLNG order in North America SEOUL, June 02 (AJP) - Samsung Heavy Industries announced it has won an order to build one floating liquefied natural gas (FLNG) production unit for a North American client, in a deal worth 4.33 trillion won ($2.85 billion). The South Korean shipbuilder said Tuesday through regulatory filings that construction will begin once the client issues a notice to proceed, with delivery scheduled for July 2030. It did not name the buyer. FLNG units are vast offshore vessels that extract, chill and store natural gas at sea, freeing producers from the cost and delay of building pipelines and onshore export terminals to reach remote gas fields. Demand has firmed as buyers in Asia and Europe hunt for supply to bridge the shift away from coal. Samsung Heavy is a dominant player in the niche, having built Royal Dutch Shell's Prelude, the world's largest FLNG facility. The company said it has secured seven of the 11 FLNG units ordered worldwide to date, giving it a 64 percent share of the global market. The contract lifts Samsung Heavy's order tally this year to 28 vessels worth $8.3 billion, or about 60 percent of its $13.9 billion annual target, the company said. Its commercial vessel arm has booked $5.0 billion, 88 percent of target, on the back of 13 LNG carriers, two very large ethane carriers, four very large gas carriers, two container ships and six crude tankers. The offshore division, including the latest FLNG award, has won $3.3 billion in orders, or 40 percent of its $8.2 billion goal for the year. Shares of Samsung Heavy Industries traded at 27,800 per stock at 3:08 p.m., 0.91 percent higher than the day before. 2026-06-02 15:11:06

Protection Period for Minor Victims of Sexual Violence Extended to Age 25 Under new regulations, minor victims of sexual violence will be allowed to stay in protective facilities until they turn 25, receiving support for recovery, counseling, and independence. The Ministry of Gender Equality and Family announced that the revised enforcement decree of the "Act on the Prevention of Sexual Violence and Protection of Victims" was approved during a cabinet meeting on June 2. This revision aligns with the implementation of the amended law, which passed the National Assembly in December of last year. The new regulations will take effect on July 1. The changes aim to ensure that minor victims in protective facilities have adequate time for recovery and preparation for independent living, while also enhancing support for their education and reintegration into society. According to the revised law, victims who were minors at the time of their admission can extend their stay in facilities until they reach 25, regardless of the type of facility. Previously, victims in general protective facilities could stay for a maximum of 4 years and 6 months, while those in special support facilities could remain until the age of 21, and those in independent living support facilities could stay for up to 4 years. This often forced victims to leave before they were fully prepared for recovery or independence. Now, they will have continued access to stable protection, counseling, and support for independence. Additionally, absences from school due to treatment and counseling for sexual violence will be recognized as attendance. School principals can consider the opinions of experts in sexual violence when determining whether to count these absences as excused. The decree also clarifies the procedures for background checks on staff at support facilities for sexual violence victims, including counseling centers, protective facilities, integrated support centers, and digital crime victim support centers. Lee Kyung-sook, head of the Gender Equality Policy Office, stated, "This revision of the enforcement decree strengthens the institutional framework to ensure that minor victims of sexual violence can prepare for independence with adequate protection and recovery support. We will continue to enhance victim protection policies based on field needs."* This article has been translated by AI. 2026-06-02 15:06:00

South Korea's Justice Ministry Publishes Legal Guide for Companies Entering Australia A practical guide has been developed to support South Korean companies in entering the Australian market and addressing local legal risks. On June 2, the Ministry of Justice announced the publication of the "Legal Guide for Overseas Expanding Companies - Australia Edition" to help domestic businesses accurately understand Australia’s legal and regulatory environment as they pursue operations there. Australia is one of the countries with high demand for South Korean companies, particularly in sectors like mining, manufacturing, and real estate. However, unlike South Korea's civil law system, Australia follows a common law system and has its own regulatory framework, making thorough preparation and legal analysis essential for market entry. The Ministry of Justice created this guide to help companies already in Australia or preparing to enter the market easily understand the local legal system and effectively respond to potential legal risks during their business operations. The guide is designed to be practical, allowing companies to use it directly in the field. The publication covers key legal areas necessary from the initial entry to operation, including the Foreign Investment Review Board (FIRB) process, company formation and governance, regulations related to real estate investment and development, labor and employment law, tax systems, and competition and consumer law. It also addresses recent legal issues gaining prominence in Australia, such as unfair contract terms, environmental, social, and governance (ESG) concerns, and directors' responsibilities related to climate risks. The Ministry has been operating the "International Legal Support Team for Overseas Expanding Small and Medium Enterprises" to address international legal challenges faced by these businesses. Since September 2024, it has published a series of guides covering the legal systems and investment environments of major target countries, starting with Germany, followed by the United Arab Emirates (UAE), Japan, and now Australia. Recently, the Ministry also distributed materials to guide South Korean companies on issues related to the blockade of the Strait of Hormuz, addressing force majeure and response strategies amid rapidly changing international circumstances. The Ministry explained that the publication of the Australia edition is part of its multifaceted legal support initiatives for businesses. Justice Minister Jeong Seong-ho stated, "Australia offers various opportunities for our companies, but it also requires careful legal scrutiny. I hope this guide serves as a reliable resource to support new challenges and achievements in the Australian market and contributes meaningfully to enhancing economic cooperation between the two countries." The Ministry plans to continue identifying the needs of overseas expanding companies and publish legal guides for various countries. This initiative aims to strengthen practical international legal support systems, enabling small and medium-sized enterprises and small business owners to operate stably in unfamiliar regulatory environments while enhancing their international competitiveness.* This article has been translated by AI. 2026-06-02 15:03:00

KB Financial Group Accelerates CEO Succession Process, Final Candidates Set for September 11 KB Financial Group is officially launching its management succession process for the next chairman. The company plans to finalize a shortlist of candidates in August and select the final candidate by September. Yang Jong-hee, the current chairman of KB Financial, is set to complete his term on November 20.On June 2, KB Financial announced that its Chairman Candidate Recommendation Committee (Succession Committee) held a meeting and narrowed down the initial list of 20 candidates to 12, comprising six internal and six external candidates. The committee had previously established and publicly shared detailed qualification criteria for the chairman during two meetings in April, confirming a long list of 20 candidates (10 internal and 10 external) based on the first half of 2026.Industry insiders believe that internal candidates likely include Yang Jong-hee, Lee Chang-kwon, head of the Future Strategy Division, and Lee Hwan-joo, CEO of KB Kookmin Bank, among other top executives from major subsidiaries.This succession process has begun more than a month earlier than in 2023, starting in June, five months before the current chairman's term ends. The timeline for selecting the final candidate has been extended to three months from the start of the process, allowing additional time for candidate verification.The committee plans to hold another meeting on July 3 to narrow the 12 candidates down to six for the first shortlist. On August 27, the six candidates will undergo initial interviews and evaluations, leading to a second shortlist of three candidates. To ensure fairness for external candidates, the committee will provide a two-month preparation period before the interviews and will guarantee anonymity for those who prefer not to be publicly identified.Following the second interviews on September 11, the committee will conduct in-depth evaluations and voting to confirm the final candidate. If the selected candidate passes the qualification verification as per relevant regulations, they will be appointed as chairman at an extraordinary shareholders' meeting in November, following recommendations from the committee and the board on October 2.Cho Hwa-jun, chairman of the Succession Committee, stated, "We will conduct the process transparently and fairly, striving to select the best candidate who can enhance shareholder value and drive growth for KB Financial."Industry speculation suggests that Yang has a strong chance of reappointment, as he has been credited with achieving both performance and shareholder return since taking office. KB Financial entered the '5 trillion club' for the first time in 2024 and has reported over 5 trillion won in net profit for two consecutive years. This year, projections indicate the possibility of surpassing 6 trillion won. However, discussions on governance reforms being pursued by financial authorities could pose variables in the succession process, as these reforms may introduce constraints on long-term reappointments for financial holding company chairpersons. 2026-06-02 15:03:00

LG Household & Health Care Unveils Steroid-Free Solution for Female Hair Loss LG Household & Health Care has developed a new solution to alleviate female-pattern hair loss without using steroid ingredients. The company announced on June 2 that it has discovered a solution that can help improve the environment for hair growth and mitigate female-pattern hair loss without relying on steroid-derived components. This research was presented at the World Congress for Hair Research (WCHR). Historically, treatment options for female-pattern hair loss have been limited. Medications used for male-pattern hair loss, such as androgen inhibitors, are not suitable for women, and estrogen-based hormone therapies have been constrained by concerns over side effects and limited applicability. In this study, LG Household & Health Care confirmed that a non-steroidal substance derived from vitamin A can activate the estrogen receptor alpha (ERα), a receptor for female hormones. This substance was found to promote follicle activity and improve the hair growth environment, with clinical evaluations demonstrating its effectiveness in enhancing hair thickness. Notably, this research expands the scope of hair loss studies, which have primarily focused on dermal papilla cells, by opening the possibility of targeting both dermal papilla cells and hair follicle stem cells through the activation of estrogen receptors. This aspect has garnered attention in the academic community. Artificial intelligence (AI) technology played a significant role in the research process. LG Household & Health Care conducted AI simulations on approximately 420,000 candidate substances to analyze their binding potential with follicle-related proteins and their mechanisms of action. Additionally, by integrating lipid metabolism data and gene expression profiles related to female-pattern hair loss, the company identified ERα as a key target for hair loss improvement, with the vitamin A-derived substance emerging as a promising candidate for effective activation. LG Household & Health Care also revealed findings from its research on a new material called Ramsidil. In follicle tissue experiments, Ramsidil was shown to reduce the expression of DKK1, a factor that induces the transition to the hair shedding phase, thereby creating a favorable environment for hair growth. This candidate substance was also identified through AI simulations. The achievements of LG Household & Health Care's AI-based hair research do not stop there. Last month, the company announced the development of an optimal combination of ferulic acid, extracted from the herbal medicine Chuanxiong, and NMN, a substance known for extending skin lifespan, using AI. This combination was reported to enhance the proliferation of dermal papilla cells, the key cells for hair growth, and activate mitochondrial function, achieving a higher maintenance rate of the hair growth phase compared to minoxidil, a widely used hair loss treatment. This finding was published in the latest issue of Scientific Reports, a sister journal of Nature. Kang Nae-kyu, Chief Technology Officer (CTO) of LG Household & Health Care, stated, "We plan to continue collaborating with LG AI Research to advance our understanding of scalp aging mechanisms and focus on developing next-generation scalp and hair care solutions that can realize 'scalp longevity.'" * This article has been translated by AI. 2026-06-02 14:57:00

Dongyang, a Unit of Eugene Group, Announces 719 Billion Won Stock Buyback and Cancellation Dongyang, a subsidiary of Eugene Group, is taking steps to enhance its corporate value through a significant stock buyback and consolidation. On June 2, Dongyang held a board meeting and resolved to cancel a total of 24,611,979 shares, including 24,439,999 common shares and 171,980 preferred shares. The cancellation amounts to approximately 719 billion won based on book value, representing 10.26% of the total issued shares. This cancellation is expected to provide shareholder returns, as it involves a permanent buyback that will not re-enter the market. With the reduction in the number of issued shares, the value per share could increase based on the same corporate value and profits. A 10.26% decrease in the total number of shares could lead to an approximate 11% improvement in per-share metrics. Dongyang aims to clarify the direction of its stock buyback and continues to review its capital policy with a focus on maximizing shareholder value. In addition to the stock cancellation, the company plans to implement a 2-for-1 stock consolidation. This measure is intended to reduce the number of issued shares and normalize the trading price per share, thereby alleviating undervaluation perceptions and enhancing market confidence. The final decision will be made at an extraordinary shareholders' meeting scheduled for June 22. A Dongyang representative stated, "This stock cancellation demonstrates the company's strong commitment to enhancing shareholder value. By permanently canceling more than 10% of the total issued shares and consolidating stocks, we aim to increase the predictability of our capital policy and strengthen our investor relations activities to ensure that our corporate value is properly recognized in the market." * This article has been translated by AI. 2026-06-02 14:57:00