Korea’s Discount Policies Shift Costs to Insurers and Card Issuers As policy-driven benefits expand — including a vehicle five-day rotation discount rider and broader gasoline discounts — insurers and credit card companies are facing rising costs. While the discounts are billed as support for household finances, critics say the structure repeatedly leaves financial firms to absorb the expense. According to financial authorities on the 27th, the five-day rotation rider offers private auto insurance customers a 2% annual premium discount. Drivers limit use of their cars on designated weekdays based on license plate numbers, then receive a refund at policy expiration for the period they complied. For an annual premium of 700,000 won, the refund is about 14,000 won. Insurers, not the government, pay for the discount. Because the program is policy-driven, participation is effectively unavoidable for insurers, and the burden grows as more customers enroll. The industry warns the effect of premium hikes implemented earlier this year could be offset, or turn into added costs. Signs of weakening profitability are also emerging. The first-quarter auto insurance loss ratio at major nonlife insurers — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance and KB Insurance — rose to 85.9%, up 3.4 percentage points from a year earlier. Auto insurance is estimated to have posted a deficit of about 130 billion won over the same period. Additional costs tied to operating the rider are another variable. Insurers say they must build and manage systems to verify whether customers drove on restricted days and assign staff to run them, while disputes and complaints over driving records are also possible. Some in the industry have raised the possibility that insurers may need to pay automakers separately to obtain driving data. Limits of similar policies have surfaced before. A “weekday driving discount rider” introduced around 2008 offered a higher discount rate, but was widely seen as a failure due to low enrollment. Credit card companies face a similar squeeze. In line with the government’s inflation response, issuers have expanded gasoline discounts, but card companies are bearing much of the cost. Unlike general co-branded cards, they have less ability to split expenses with merchants, pushing up marketing costs. Profit pressure is intensifying as issuers add fee waivers, cashback and points on top of fuel discounts. Some gasoline discount cards could end up in a “reverse margin” structure, where losses grow as more cards are issued. With higher bond yields raising funding costs, broader discounts add to the strain. The burden goes beyond the discount itself. Card companies also shoulder added expenses for system overhauls, staffing and building infrastructure to link benefits to prices. Market response has also fallen short. One card company said new issuance of its gasoline discount card rose by less than 10% from the previous month even after benefits were expanded, suggesting the bigger discounts are not generating enough demand amid weak consumption. An industry official said, “We agree with the goal of stabilizing people’s livelihoods, but the cost burden is accumulating,” adding, “With funding rates rising as well, management pressure is growing.”* This article has been translated by AI. 2026-04-27 16:07:23

South Korea Science Ministry, Google DeepMind Sign MOU for Joint AI Research and Talent Training South Korea’s Ministry of Science and ICT said it has signed an agreement with Google DeepMind to build a cooperation framework for the government’s “K-Moonshot” initiative and the responsible use of artificial intelligence. The ministry said it signed a memorandum of understanding, or MOU, with Google DeepMind on Sunday at the Four Seasons Hotel in Seoul. The partnership centers on joint AI research, talent development and expanding the adoption of responsible AI. Google DeepMind is the company behind the Go-playing AI AlphaGo. It is also a global AI research organization that developed AlphaFold, demonstrating AI’s potential in science and technology. The ministry noted that CEO Demis Hassabis won the Nobel Prize in Chemistry in 2024 for solving the long-standing challenge of predicting protein structures. The ministry said the agreement was signed at a symbolic moment marking the 10th anniversary of the AlphaGo matches, aiming to turn a decade of AI achievements into momentum for science and technology innovation. Under the MOU, the two sides plan to seek practical cooperation across technology, infrastructure and researcher exchanges. They said they will work together in areas including life sciences, weather and climate, and “AI scientists.” They also plan to expand joint research and researcher exchanges around the National Science AI Research Center, which is scheduled to begin operations in May. Cooperation is expected to include developing and validating AI models and tools, using scientific data, and exploring collaboration centered on an AI bio-innovation research hub. The ministry said it will look for internship opportunities so top AI talent can experience Google DeepMind’s research environment. Google, it said, will establish an AI campus in South Korea and expand cooperation with academia, researchers and startups. The AI campus is expected to serve as a base for AI-driven science and technology cooperation with Google DeepMind linked to “K-Moonshot.” The two sides also agreed to cooperate on AI safety and governance. They plan joint research on safety frameworks and safeguards for AI models to support responsible development of AI technology. They also said they will hold discussions, in connection with an AI Safety Institute, on building safety frameworks and testing methodologies. Bae Kyung-hoon, deputy prime minister and minister of science and ICT, said the MOU will be “a key opportunity” for the two sides to work together to accelerate AI innovation in science and technology centered on “K-Moonshot,” while spreading safe and responsible AI research and best practices. Hassabis said Google DeepMind will contribute as a partner in building safeguards to help AI advance responsibly. * This article has been translated by AI. 2026-04-27 16:06:21

K-Musical Industry Urges Overhaul of Outdated Standard Contracts to Protect New Creators "Too many young people don’t know how much they can earn before a premiere, how long it will take, or what they’ll be responsible for. We’re still using a standard contract from more than 10 years ago, and there aren’t even specific amounts or average rates," writer Han Jeong-seok said. At the second meeting of the Musical Theater Subcommittee of the Arts and Culture Policy Advisory Committee on April 27 at the National Museum of Modern and Contemporary Art, Seoul, participants repeatedly said revising standard contracts is urgent for the sustained growth of K-musicals. Culture, Sports and Tourism Minister Choi Hwi-young and musical-theater experts discussed ways to strengthen the industry, including improving standard contracts, building dedicated space for original productions, developing talent and supporting overseas expansion. Han criticized what he called a “black-box” contracting environment that he said has become a barrier to entry. He said webtoons, screenplays and films have standard rates for new creators, allowing them to plan their lives, but musical theater does not. He added that creators often sign first because it is hard to judge whether terms are fair, only to realize later the deal was unfavorable. Producers also voiced concern. Lee Seong-hoon, CEO of Show Note, again stressed the need to update the standard contract, saying the musical industry has changed rapidly while a contract drafted 10 years ago is still treated as the standard. He said the very concept of “standard” needs to be strengthened. Choi asked detailed questions about conditions in the field, including whether rates vary widely and whether they differ sharply by work, individual or production company. He said it is necessary to build a solid ecosystem. "When people decide to invest their lives, youth and talent, and when they challenge a dream, uncertainty and unpredictability are not signs of a healthy ecosystem," Choi said. "It seems important to help talented people enter the musical-theater field. I will gather opinions and consider what the government can do to help." Participants also raised the need to expand infrastructure for original premiere musicals, described as seeds for the industry’s future. They proposed using sites such as the Seogye-dong complex cultural space under development or idle land at the Danginri power plant to create a dedicated theater for original premieres. Choi said it is true that premiere productions have difficulty renting theaters and promised active support so more original premieres can be staged.* This article has been translated by AI. 2026-04-27 16:04:47

Insurers urge reforms to dementia trusts as aging fuels need to manage 'dementia money' As South Korea’s population ages and dementia cases rise, calls are growing to better manage patients’ assets — often referred to as “dementia money.” Experts and insurers say reforms to the trust system and a larger private-sector role in insurance and long-term care are needed to protect assets in a more structured way. According to the Ministry of Health and Welfare on the 27th, the dementia prevalence rate among people 65 and older is about 9.25%, and it exceeds 20% among those 85 and older. Dementia is increasingly viewed not only as a medical condition but as a social risk that can affect nearly every part of life for patients and their families. As a result, there is a growing recognition that dementia-related assets should be managed systematically to help pay for care and stabilize household finances. Specialists point to wider use of trusts as a key solution. They say the scope of assets eligible for trusts should be expanded, and standards and sales rules for managed trusts should be revised to ensure stable oversight of assets held by older adults with dementia. While such assets can include deposits, real estate, insurance and pensions, the range of property that can be placed in trust remains limited. Critics say public and private pensions and insurance claim rights — major sources of retirement income and care costs — should also be included. Access is also limited. Because dementia trusts are classified as financial investment products, enrollment procedures can be complex, and there is a lack of sales infrastructure. A uniform fee structure is also cited as an area for improvement. The industry also points to a structure centered on wealthy clients and narrow sales channels. Some have proposed easing qualification requirements for investment solicitation agents so insurance agents can recommend dementia trusts. Supporters say agents, who have frequent contact with older adults, could also help expand coverage by linking trusts with dementia insurance. A life insurance industry official said, “If efforts to expand dementia insurance and improve the trust system move forward together, it will be possible to manage the assets of older adults with dementia more safely and systematically.” 2026-04-27 15:57:19

KB Goodjob Job Fair Draws Crowds as Young Koreans Face AI-Era Hiring Squeeze “Even when job postings go up these days, most are for experienced hires. Companies don’t hire many entry-level workers, so I’m trying anything I can. AI makes me uneasy, but I have to work to become someone who can keep up with it.” Jeong Mi-ju, 26, said that Monday at the “2026 First KB Goodjob Excellent Companies Job Fair” at COEX in Seoul’s Gangnam district. Dressed for an interview, she carried a backpack filled with resumes and a portfolio. Preparing since January for an IT job, Jeong said she was ready to interview if she got the chance at the fair. Now in its 29th year, the KB Goodjob fair has drawn about 6,200 companies over time and provided jobs to 45,000 job seekers, organizers said. About 250 companies participated this year. The venue was packed from the 10 a.m. opening, with attendees ranging from vocational high school students to college students, soon-to-be graduates and troops nearing discharge. Many young visitors said they felt hiring had become tougher as AI spreads, and that they came to secure any opportunity they could. Na In-chae, 29, who worked two years on a contract in public relations and marketing and is now seeking a new job, said, “You can definitely feel there are fewer openings and the competition is higher.” She added, “At work, it feels like AI is required, so I’m trying to earn at least one more certificate. Still, I’m relieved I’ll be interviewing with two companies here today.” Kim Ye-rin, 28, preparing for a job in electronics and IT, said, “As AI’s role grows, I think every day about what I can do.” She said she visited the booth of a company that had rejected her application to ask what she lacked and to get feedback. “Even if I don’t get a good opportunity, I hope they see this kind of initiative in a positive way,” she said. Programs aimed at helping job seekers use AI drew especially heavy interest. A recruiting briefing titled “Job-hunting strategies in the AI era” was crowded even before it began. When speakers explained prompts for writing cover letters with generative AI, some attendees held up phones to record the screen. As seats filled, others stood outside on tiptoe to listen. The AI-based “Career Solution Zone,” which offers customized job counseling, was also crowded. The program provides comprehensive consulting tailored to each job seeker’s readiness and supports training to strengthen job-search literacy using AI. Organizers said that 1 hour and 50 minutes after opening, 99 people had taken waiting tickets. A 19-year-old identified by the surname Kim said after a session, “I’m very interested in robotics, and it helped to get detailed, personalized advice on whether to work right away or go to college.” Kim said they planned to look around more, using the counseling as a guide, noting that many related companies had booths at the fair. KB Kookmin Bank said it plans to continue supporting participating companies after the fair, including by offering specialized talent-matching services linked to KB Goodjob partner institutions. If participating companies hire full-time employees, the bank will provide hiring support funds of 1 million won per person, up to 10 million won per year. KB Kookmin Bank CEO Lee Hwan-joo said he hopes the event will be “a place of challenge and opportunity” where young job seekers can fully demonstrate their abilities. He said the bank will continue a range of social contribution activities alongside KB Goodjob to “do our best to establish ourselves as a lifelong financial partner for the public.”* This article has been translated by AI. 2026-04-27 15:54:16

Analyst: OpenAI may develop an 'AI agent phone,' with mass production eyed for 2028 OpenAI may be moving toward developing its own smartphone, as the competition around ChatGPT and other artificial intelligence tools spreads from apps and services into hardware. The key question is whether it can build a new device architecture centered on an AI agent, rather than simply adding AI features to existing phones. According to China’s Kechuangban Daily on Sunday, TF International Securities IT analyst Ming-Chi Kuo, known for tracking Apple’s supply chain, said OpenAI is pursuing development of its own smartphone. In a post on X, Kuo said OpenAI is developing smartphone processors with MediaTek and Qualcomm, and he forecast that Luxshare would serve as the exclusive partner for joint system design and manufacturing. He projected mass production in 2028. Kuo described the concept as an “AI agent phone,” differing from the current model in which users open and operate apps themselves. In his view, the phone would understand a user’s situation and context, and an AI agent would carry out needed tasks on the user’s behalf. He said OpenAI’s motivation is to gain control over the operating system and hardware, arguing that offering a comprehensive AI agent service would be limited if it relied only on a ChatGPT app running on existing smartphones. Smartphones also hold large amounts of real-time user information, including location, schedules, conversations and usage habits. OpenAI’s hardware push has already taken shape. The company acquired io, a hardware startup co-founded by Jony Ive, who led iPhone design. After the acquisition, the io team joined OpenAI, and Ive’s side has continued to take part in OpenAI product design work. If Kuo’s forecast is correct, OpenAI’s aim would be to make the smartphone a primary gateway for its AI models and agent services. That could introduce a new variable for ecosystems dominated by Apple and Samsung Electronics, which are built around iOS and Android and the App Store and Google Play. If OpenAI releases an AI agent device, it could accelerate a shift toward AI calling apps and services in the background to deliver results, rather than users selecting and launching apps themselves. Still, the report remains an analyst’s projection, and uncertainty is high. OpenAI, Qualcomm, MediaTek and Luxshare have not officially confirmed the details. Challenges before any mass production include technical readiness, handling personal data, and securing an operating system and app ecosystem. 2026-04-27 15:52:07

Defense Vice Minister Lee Doo-hee Pledges Major Upgrades to Navy Shipboard Living Conditions “To ensure sustained operational capability in wartime and peacetime, it is important to quickly relieve crews’ operational fatigue. We will make major improvements to shipboard living conditions,” Defense Vice Minister Lee Doo-hee said. Lee visited the Navy’s 2nd Fleet Command on April 27 to inspect shipboard living conditions and barracks facilities for sailors and to encourage service members, the Ministry of National Defense said. The on-site inspection was arranged to push ahead with tasks recommended by a joint civilian-government-military special advisory panel to improve living conditions for troops’ physical and mental recovery, and with defense reform efforts to improve barracks conditions, the ministry said. Lee toured crew sleeping quarters aboard the destroyer Eulji Mundeok (DDH-I), which was docked at the 2nd Fleet naval base, and reviewed areas needing improvement. He also checked conditions at an onshore dormitory used by enlisted sailors assigned to fast patrol craft and other vessels. “We will continue improving conditions so that, while ship crews are waiting on shore, the onshore dormitory is a place for adequate rest and recovery,” Lee said. * This article has been translated by AI. 2026-04-27 15:51:17

Korea’s consumer relief policies add profit pressure on insurers and card firms Financial regulators in South Korea are rolling out a series of measures aimed at easing household costs, but the burden is increasingly being absorbed by financial companies. Insurers and card issuers say they support the policy goals, yet warn that added obligations are squeezing profitability at a time when their core businesses are already under strain. The Financial Services Commission on the 27th introduced a new auto insurance rider offering discounts for drivers who follow a vehicle-use restriction scheme. The measure is intended to respond to volatile global oil prices and encourage energy conservation. Industry officials, however, said it will effectively function as pressure to cut premiums, because insurers are expected to participate and premium revenue falls as enrollment rises. Under the rider, auto insurance premiums are discounted by 2% a year. Regulators estimate about 17 million vehicles could qualify. By simple calculation, that would shift roughly 240 billion won in costs to insurers. The added discount is likely to weigh on earnings, as auto insurance loss ratios are already above break-even levels. Major nonlife insurers have seen underwriting results drop sharply due to weak performance in indemnity health insurance and rising auto loss ratios. The combined insurance profit of four major nonlife insurers — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance and KB Insurance — totaled 3.5782 trillion won last year, down 34.8% from the previous year’s 5.4892 trillion won. Card issuers are also facing heavier pressure. As regulators urge companies to expand benefits such as fuel discounts to ease oil-related costs, some products are being pushed into a loss-making structure, industry officials said. Performance has been weakening: the combined net profit of eight dedicated card companies — Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Hana, Woori and BC — fell 8.9%, or 230.8 billion won, to 2.3602 trillion won last year from 2.5910 trillion won a year earlier. “Each time there is a crisis, financial companies have been mobilized as tools to carry out policy,” an industry official said. “We want to participate, but conditions are not easy.” The official added that the burden is growing as volatility in interest rates and exchange rates increases. 2026-04-27 15:48:21

BYD Korea Opens Pohang Service Center to Expand Access on South Korea’s East Coast BYD Korea said Sunday it has officially opened the “BYD Auto Pohang Service Center” in Pohang, North Gyeongsang Province. The Pohang facility is BYD Korea’s 18th service center for its passenger-car business and will operate as an integrated hub combined with the BYD Auto Pohang showroom that opened late last year. The center offers one-stop service covering vehicle consultation and test experiences, contracts, maintenance and accident repairs. It includes service lines that can handle up to two vehicles at the same time, parking for six vehicles and a customer waiting area, the company said. Located in a central part of Pohang, the service center has convenient access to major arterial roads and the East Coast transportation network, and is expected to be easily reachable from nearby areas including Gyeongju, Yeongcheon and Yeongdeok. BYD Korea said it expects the site to serve as a key base for strengthening service for customers along the East Coast by meeting demand from both nearby industrial complexes and local residents. GNB Mobility, BYD Korea’s official dealer, said the opening is part of a plan to improve both product and service access across the East Coast region. Lee Min-uk, CEO of GNB Mobility, said, “Following the Pohang showroom in one of Korea’s leading industrial cities, we have now built a service center as well, improving the BYD electric-vehicle ownership environment that customers along the East Coast can feel.” He added, “We will continue strengthening our capabilities so customers can drive BYD vehicles with confidence by offering good products and good service in good locations.” BYD Korea said it aims to expand its service network from 18 locations to 26 by the end of the year. A BYD Korea official said the company will work to ensure customers can receive a high level of service nationwide, adding that it plans to focus not only on expanding the number of sites but also on quality improvements, including strengthening the development of technicians who have completed BYD technical training. * This article has been translated by AI. 2026-04-27 15:42:48

Korea Exchange to Hold Regional Briefings on Corporate Governance Report Disclosures The Korea Exchange said it will hold a relay series of regional briefings this month in four cities — Busan, Daegu, Gwangju and Daejeon — for disclosure officers and others at KOSPI-listed companies on how to file corporate governance reports. The exchange said on the 27th the program was planned to help regional listed firms make smooth disclosures after the corporate governance report filing requirement was expanded this year to all KOSPI-listed companies. The sessions will explain the core purpose of the governance disclosure system and focus on how to prepare the reports, including examples of strong disclosures. A briefing for KOSPI-listed companies in Busan, Ulsan and South Gyeongsang Province was held at the Busan International Finance Center on the 27th. Additional sessions are scheduled in Daegu (28), Gwangju (29) and Daejeon (30). The exchange said it expects the briefings to raise understanding and interest in corporate governance among regional listed companies and to support the stable settlement of the governance disclosure system. It also said it plans to actively support companies’ governance improvements and smooth filings through one-on-one consulting and distribution of guidance materials for newly covered governance disclosure companies next year.* This article has been translated by AI. 2026-04-27 15:42:15