Rising Premiums Fail to Keep Up with Insurance Payouts as Losses Surge by $2.5 Billion The structural losses in health insurance are deepening. While insurance companies have increased their revenue through premium hikes, payouts for certain non-covered treatments, such as physical therapy and non-reimbursed injections, have risen even faster. Concerns are growing that the loss ratio has exceeded the breakeven point again, potentially leading to higher costs for policyholders. According to the Financial Supervisory Service on June 3, health insurance recorded a deficit of 1.87 trillion won (approximately $1.4 billion) last year, an increase of about 250 billion won from the previous year. As of the end of last year, there were 36.22 million active health insurance contracts, but the chronic deficit structure appears to be worsening. The speed of insurance payouts has outpaced the growth in premium income. Last year, health insurance premium income reached 18 trillion won, a 10% increase from the previous year, while payouts to policyholders rose to 17 trillion won, marking an 11.4% increase. Consequently, the loss ratio for health insurance climbed to 101.0%, up 1.7 percentage points from the previous year. The primary reason for the worsening loss ratio is attributed to non-covered treatments. Last year, payouts for non-covered services amounted to 9.7 trillion won, accounting for 57.1% of total insurance payouts. This indicates that more funds were allocated to non-covered items, which are not subject to health insurance price controls. Notably, payouts related to musculoskeletal disorders, including physical therapy, reached 2.7 trillion won, surpassing the 2.6 trillion won allocated for severe conditions such as cancer, brain, and cardiovascular diseases. Additionally, payouts for outpatient non-covered injections, including nutritional supplements, have ballooned to around 1 trillion won. Insurance payouts related to robotic surgeries increased by 72.4% compared to the previous year, while payouts for prostate surgeries and high-intensity focused ultrasound treatments rose by 64.6% and 46.0%, respectively. To address the leakage of insurance funds focused on non-covered treatments, financial authorities are prioritizing the establishment of fifth-generation health insurance. This new generation aims to categorize non-covered items into severe and non-severe categories, increasing the out-of-pocket expense for non-severe non-covered treatments to curb overuse. However, market response has been lukewarm. Some major insurers, including Shinhan Life, KB Life, Mirae Asset Life, Dongyang Life, and Hana Insurance, are currently not selling fifth-generation health insurance. Even those that are selling it tend to limit their marketing efforts to exclusive agents rather than utilizing insurance brokerage channels. The reluctance of insurers to actively sell fifth-generation health insurance stems from the perception that health insurance is structurally difficult to profit from. With payouts consistently exceeding premium income, there is little incentive to expand new sales. In fact, last year's loss ratios for each generation of health insurance were recorded at 102.3% for the first generation, 93.1% for the second, 120.3% for the third, and 115.1% for the fourth, all exceeding the breakeven point of 85%. 2026-06-03 14:36:00

South Korean local election turnout reaches 48.9 percent SEOUL, June 03 (AJP) - Over 21.8 million people cast their ballots in South Korea's ninth nationwide local elections by 2:00 p.m. on election day. This pushed overall voter turnout to 48.9 percent, signaling potentially historic final participation levels. The mid-afternoon figure is 8.2 percentage points higher than the turnout recorded at the same time during the previous local elections four years ago. It also sits 2.1 percentage points above the 2018 elections, suggesting the final tally could exceed that year's 60.2 percent total. Surpassing the 60 percent threshold is rare, having happened only twice before in South Korean local election history. The National Election Commission reported that 21,832,984 of the country's 44,649,908 eligible voters had participated by the 2:00 p.m. count. This total includes mail-in votes and ballots from early voting held on May 29 and 30, which saw a 23.51 percent turnout. Jeonnam recorded the highest regional turnout at 58.0 percent, followed by Gangwon at 54.5 percent and Jeonbuk at 54.2 percent. The lowest participation was in Gwangju at 45.3 percent, trailing Gyeonggi at 46.0 percent and Incheon at 46.3 percent. Voter turnout in the capital city of Seoul stood at 49.4 percent. Polls remain open until 6 p.m., with voters required to present identification at their registered local precincts. The election commission calculates these hourly updates using data gathered from 256 district and municipal offices. The highest final turnout for a South Korean local election remains 68.4 percent, recorded during the first nationwide vote in 1995. 2026-06-03 14:35:18

Women Comprise 52% of Public Servants in South Korea, Emphasizing Skills and Fairness The proportion of female public servants in local governments has reached a historic high of 52%. Although women surpassed men in public service representation in 2023, they maintained a majority last year, further solidifying this trend. Notably, the number of female public servants at the level of 5th grade and above has exceeded 10,000 for the first time, symbolizing a significant shift in South Korea's public sector.Just 20 to 30 years ago, women's entry into public service was severely limited compared to today. The hiring scale was small, and numerous invisible barriers existed in the promotion process. High-ranking positions in both local and central administrations were predominantly male-dominated. In this context, the fact that women now make up more than half of the public service workforce and hold a meaningful share in management positions reflects the improvement in educational standards, expanded opportunities, and changing perceptions in our society.Public service is an organization that serves the entire population. In a society where more than half of the population is female, it is desirable for the public sector to reflect diverse experiences and perspectives. The increased participation of women in policy-making has been credited with enabling more nuanced approaches in various areas, including childcare, welfare, education, and family policy. The expansion of women's roles in society is an unstoppable trend, and the public sector cannot be an exception.However, merely increasing numbers does not resolve all issues. It is essential to view the rise in the proportion of female public servants from a broader perspective of public service competitiveness. What matters is not just how many female public servants there are, but how capable these individuals are and how fairly they are able to compete and grow within the system.The public sector must be cautious of gender-centric approaches. If the past issue was a male-centric personnel practice, it is equally undesirable for gender to become the sole criterion for personnel decisions in the future. Both men and women should be evaluated based on their abilities, performance, and expertise. The essence of public service lies not in representation but in serving the public and demonstrating administrative capabilities.The decline in new public servant appointments is also a significant concern. There are ongoing analyses indicating that the preference for public service among young people has decreased compared to the past. Many point out that public sector salaries are less competitive compared to private companies, while the workload has increased. With a surge in expected retirements, attracting talented individuals has become a critical challenge for the public sector.Public servant organizations are a core infrastructure for national governance. In an era of artificial intelligence and digital transformation, it is ultimately people who design and implement policies. This is why the competitiveness of public service is often equated with national competitiveness. Therefore, the goal of personnel policy should not be merely to increase the proportion of a specific gender but to secure and nurture the best talent.The era of women comprising 52% of public servants is a sign of societal change. However, true achievement lies not in numbers but in creating a public service where both men and women are guaranteed equal opportunities, compete fairly, and are evaluated based on their abilities. The criteria for determining the future of public service should be capability, not gender. This is fundamental, principled, and common sense. 2026-06-03 14:30:00

Voter Turnout Reaches 48.9% in Local Elections, Highest for This Time The voter turnout for the 9th nationwide local elections has nearly reached the 50% mark, setting a record for this time of day in previous local elections. According to the National Election Commission, as of 2 p.m. on June 3, a total of 21,832,984 out of 44,649,908 eligible voters had cast their ballots, resulting in a national average turnout of 48.9%. This figure is 8.2 percentage points higher than the 40.7% turnout recorded at the same time during the 8th nationwide local elections in 2022. The current numbers include results from early voting held on May 29-30, as well as absentee, ship, and mail-in voting. Regionally, Jeollanam-do reported the highest turnout at 58.0%. It was followed by Gangwon Special Self-Governing Province at 54.5%, Jeollbuk-do at 54.2%, Gyeongsangnam-do at 52.4%, Sejong at 50.5%, Ulsan at 50.2%, Gyeongsangbuk-do at 50.1%, and Daegu at 50.0%. In contrast, Gwangju had the lowest turnout at 45.3%, followed by Gyeonggi at 46.0%, Incheon at 46.3%, Jeju at 47.0%, Chungcheongnam-do and Daejeon at 48.3%, Busan at 48.5%, and Chungcheongbuk-do at 48.8%. In the capital region, Seoul had the highest turnout at 49.4%, with Incheon at 46.3% and Gyeonggi at 46.0%. In Gyeonggi Province, 5,464,912 out of 11,879,997 registered voters participated, while Incheon saw 1,233,658 out of 2,663,459 voters cast their ballots. Meanwhile, the main voting for the 9th nationwide local elections will continue until 6 p.m. Voters are required to bring identification such as a resident registration card, driver's license, or passport to their designated polling stations.* This article has been translated by AI. 2026-06-03 14:27:00

Samsung Heavy Industries Expands Collaboration for Floating Data Centers Samsung Heavy Industries is strengthening its collaboration with global shipping companies and AI server firms to capture the rapidly growing market for floating data centers (FDC), driven by the expansion of the artificial intelligence (AI) industry. On June 3, the company announced its plans to enhance FDC business partnerships at the Posidonia 2026, the world's largest shipping exhibition held in Athens, Greece. FDCs are data centers built on specialized vessels in rivers or oceans, offering solutions to issues faced by traditional data centers, such as securing power and space, and cooling servers. The event featured key executives, including Vice Chairman Choi Sung-an, Vice President Lee Wang-geun, and Vice President Ahn Young-kyu, who discussed expanding cooperation with global shipping companies. On June 2, Samsung Heavy Industries signed a memorandum of understanding (MOU) with Greek shipping company Capital and the UK’s Lloyd's Register (LR) to strengthen collaboration on the FDC project. Under the agreement, Samsung Heavy Industries will handle FDC technology and construction, while Capital will focus on project discovery and investment. Lloyd's Register will be responsible for establishing global regulations related to FDCs. Additionally, Samsung Heavy Industries has partnered with Lloyd's Advisory, a consulting firm under Lloyd's Register, to enhance cooperation in economic feasibility studies, including infrastructure analysis and market assessments for North American data centers. Earlier, on June 1, Samsung Heavy Industries entered into a joint development agreement with global AI server company Supermicro at the Innovate APAC 2026 event in Taipei, Taiwan. Through this collaboration, Samsung Heavy Industries aims to develop position control technology and humidity and salt barrier technology to prevent environmental factors such as vibrations, tilting, humidity, and salinity from affecting the lifespan and stability of AI servers. Supermicro will work with Samsung Heavy Industries to validate operational conditions for AI servers in marine environments. According to credit rating agency Moody's, the global AI data center market is expected to see investments of up to $3 trillion (approximately 4,400 trillion won) by 2030, which is anticipated to drive growth in the FDC sector as well. In response, shipyards in Japan and Singapore are proposing various forms of floating and semi-submersible data centers, ranging from repurposing existing vessels. Samsung Heavy Industries plans to accelerate its market entry by establishing a global lineup for the FDC project, focusing on investment discovery, market analysis, economic feasibility verification, and securing core technologies. Vice Chairman Choi Sung-an stated, "Data centers on the sea represent a new market opportunity for the shipping and shipbuilding industries. We will proactively enter the FDC market through collaboration with global partners to establish a unique position."* This article has been translated by AI. 2026-06-03 14:24:00

PLAVE Concert Film 'DASH: Quantum Leap' Premieres Today Virtual idol PLAVE's Asia tour encore concert film is now in theaters.The live performance film 'PLAVE Asia Tour DASH: Quantum Leap Encore in Cinema' premiered on June 3.This film captures the encore performance of PLAVE's Asia tour 'DASH: Quantum Leap,' featuring their sold-out concert at Gocheok Sky Dome in Seoul, marking a milestone as the first virtual idol to perform there.The film generated significant interest from fans, recording approximately 30,000 ticket pre-sales on May 20, just two weeks before its release. It showcases key moments from the tour, including the title stage, exclusive concert performances, and heartfelt fan songs that concluded the Asia tour.Additionally, the film includes special extra content to enhance the audience's experience. It is available in various formats, including 2D, 4DX, Ultra 4DX, and ScreenX. Theaters are also hosting special events, including giveaways for opening week audiences and a photo zone at CGV Yongsan I-Park Mall.PLAVE continues to achieve success in music and global charts. Their mini-album 'Caligo Pt.2,' released on April 13, surpassed 1.25 million copies in initial sales, setting a new record for the group. They also made their mark on the U.S. Billboard charts, entering the 'Billboard 200' and 'Billboard Artist 100,' confirming their global influence.As a virtual artist expanding their presence in the K-pop market, PLAVE reconnects with fans through this concert film following their music and performances. 'PLAVE Asia Tour DASH: Quantum Leap Encore in Cinema' is currently screening at CGV theaters nationwide.* This article has been translated by AI. 2026-06-03 14:15:00

South Korea's Unification Minister Visits Mongolia for Security Dialogue Unification Minister Jeong Dong-young is attending the 11th Ulaanbaatar Northeast Asia Security Dialogue until June 6 and will meet with high-ranking officials, including President Ukhnaagiin Khurelsukh of Mongolia.According to the Ministry of Unification on June 3, Minister Jeong will deliver a keynote speech on June 4 at the opening ceremony of the Ulaanbaatar Dialogue, focusing on "The Path to Peaceful Coexistence on the Korean Peninsula and Joint Prosperity in Northeast Asia."In his speech, Jeong is expected to analyze the current changes in the international order and outline the details of the Korean Peninsula's peaceful coexistence policy.Particular attention will be paid to how Jeong refers to North Korea and whether he will mention the "peaceful two-state theory" proposed as a strategy for implementing the peaceful coexistence policy.He will also explain how the South Korean government intends to contribute to peace, security, and cooperation in Northeast Asia.During his visit, Jeong plans to meet with President Khurelsukh, as well as Foreign Minister Battsetseg Batmunkh, Minister of Culture, Sports, and Youth Zolboo Aldarjavkhlan, and members of the Mongolia-Korea Friendship Association.In these discussions, Jeong aims to garner support for the peaceful coexistence policy on the Korean Peninsula and explore cooperation measures between South Korea and Mongolia for peace on the Korean Peninsula.This visit to Mongolia, at the invitation of the Mongolian side, marks the first time a South Korean Unification Minister has visited the country.Mongolia, which maintains diplomatic missions in both North and South Korea, has consistently expressed its commitment to playing an active role in promoting peace on the Korean Peninsula.As a result, there is keen interest in whether Jeong will convey any messages regarding North Korea during his visit and high-level meetings.The Ulaanbaatar Dialogue, which began in 2014, is an international conference addressing traditional and non-traditional security issues, including Northeast Asian security, energy, and environmental concerns. It has been held annually, except during the COVID-19 pandemic.North Korea participated regularly from the first year until 2018 but has not attended since 2019. Currently, about 250 representatives from 25 countries have expressed their intention to participate, but North Korea has not confirmed its attendance.A Ministry of Unification official stated, "We expect that Minister Jeong's visit to Mongolia will enhance the international community's understanding of our government's peaceful coexistence policy on the Korean Peninsula and expand the foundation for related cooperation."* This article has been translated by AI. 2026-06-03 14:09:00

Lotte Mart Expands Unsweetened Meat Products to Target Low-Sugar Trend Lotte Mart announced on June 3 that it will introduce unsweetened meat products aimed at consumers looking to reduce sugar intake.The new product, unsweetened smoked chicken slices (400g), contains no added sugars or alternative sweeteners. It will be sold at a promotional price of 10,990 won through June 10, with a buy-one-get-one-free offer.The decision to launch unsweetened meat products comes as sales and demand for poultry items have increased. From January to May this year, sales of low-sugar, unsweetened, and zero-sugar poultry products, including chicken and duck, rose by 28% compared to the same period last year. During the same timeframe, sales volume increased by 32%. The zero-sugar smoked duck slices, introduced last year, sold 100,000 units as a single product.Initially focused on beverages, the low-sugar trend has recently expanded to include grains and meat products. According to Lotte Mart, sales of low-sugar, unsweetened, and zero-sugar fresh food products, including grains and meats, have seen growth of 91% in 2023, 150% in 2024, and 247% in 2025, marking three consecutive years of growth.The number of stock-keeping units (SKUs) is also increasing. During the same period, the SKUs for low-sugar, unsweetened, and zero-sugar fresh food products grew by 25%, 41%, and 57%, respectively.Jeon So-eun, product planner (MD) for Lotte Mart's Super Meat Team, stated, "We plan to continuously strengthen our meat product lineup in line with the rapidly growing low-sugar and unsweetened fresh food trend."Additionally, Lotte Mart will hold a 'Big Sale Day' event from June 3 to 7, offering major food items such as watermelon, Korean beef, and pork belly at up to half price. The Big Sale Day is a monthly discount event organized by Lotte Mart Super.* This article has been translated by AI. 2026-06-03 14:09:00

Hyundai Department Store's Eco-Friendly Shopping Bags Save 8,000 Tons of Wood Hyundai Department Store announced on June 3 that its introduction of eco-friendly shopping bags has saved the equivalent of over 53,000 trees in four years.The department store launched its eco-friendly shopping bags in June 2022 as part of its independent resource recycling project. As of the end of May this year, a total of 32 million eco-friendly shopping bags have been produced.These bags are made from 100% recycled paper. Hyundai Department Store reported that it has recycled 1,758 tons of paper for this initiative. A company representative stated, "By using eco-friendly shopping bags, we have reduced the amount of wood used in traditional bag production by about 8,000 tons, which protects approximately 53,000 trees involved in wood production."The eco-friendly shopping bags have also received international recognition, winning the Package Design Award at the 2023 iF Design Award, following a previous win at the 2022 Red Dot Design Award.Looking ahead, Hyundai Department Store plans to renew the design of its eco-friendly shopping bags next year. A company representative emphasized, "We will continue to lead genuine ESG (Environmental, Social, and Governance) management that customers can share in their daily lives, rather than just building an eco-friendly image."In conjunction with World Environment Day on June 5, Hyundai Department Store is launching an eco-friendly campaign. Together with the Ministry of Climate, Energy, and Environment, the store will offer benefits to customers participating in eco-friendly activities at its nationwide locations until June 12. Customers who engage in activities such as using reusable bags in the modern food court or utilizing multi-use containers at Fresh Table will earn double rewards in Hyundai Department Store's own rewards program, "Green Friends."* This article has been translated by AI. 2026-06-03 14:06:00

Banks Expand Debt Refinancing Options, Pressuring Savings Banks Savings banks are feeling the pressure as major banks launch debt refinancing products targeting borrowers from the second financial sector. While the government's inclusive finance policy aims to reduce interest burdens for low to mid-credit borrowers, the migration of relatively creditworthy borrowers to banks could weaken the profitability of savings banks. Industry experts warn that if this trend continues, it could lead to a contraction in mid-interest loans and increased financial stability concerns.According to the financial sector on June 3, major commercial banks have recently expanded the supply of mid-interest and refinancing loans for borrowers from savings banks and other second financial institutions. Hana Bank plans to launch its 'Hana OneQ Mid-Interest Loan' this month, targeting borrowers with credit scores in the bottom 50%. Shinhan Bank is considering broadening its refinancing loan offerings, which were previously limited to its affiliated savings bank customers, to include borrowers from other savings banks. KB Kookmin Bank is also operating related products.Savings banks are in a complex situation. They have traditionally catered to low to mid-credit borrowers and those with multiple debts, who have been key revenue sources due to their stable income and repayment histories. If these borrowers shift to banks, the proportion of higher-risk borrowers at savings banks will inevitably increase.In fact, users of bank refinancing loans tend to have relatively higher credit scores among mid-credit borrowers. An analysis by the loan comparison platform Bank Salad revealed that a significant portion of users of the 'KB Kookmin Hope Loan' fall within the credit score range of 650 to 850. The KB Kookmin Hope Loan is a refinancing product aimed at wage earners holding credit loans from the second financial sector.The savings bank industry believes that if the trend of losing creditworthy borrowers continues, they will have to adopt more conservative loan screening practices to manage delinquency rates. In the first quarter of this year, the volume of private mid-interest loans was 1.72 trillion won, a 37.3% decrease compared to the same period last year, while the delinquency rate rose to 6.7%, an increase of 0.7 percentage points from the end of the previous year.A savings bank official stated, "While the industry is not yet in a precarious position, if this trend continues, we could see an increase in the exodus of mid-credit borrowers. If the burden of maintaining financial stability grows, our capacity to supply mid-interest loans may also diminish." 2026-06-03 14:03:00