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  • Prosecutors Seek 18-Year Sentence for Kim Hyun-tae Over National Assembly Incursion
    Prosecutors Seek 18-Year Sentence for Kim Hyun-tae Over National Assembly Incursion On July 28, prosecutors requested an 18-year prison sentence for Kim Hyun-tae, the former commander of the Army's 707th Special Mission Battalion, who led troops into the National Assembly during the December 3 state of emergency. The special prosecutor's team, led by Jo Eun-seok, determined that Kim and other military commanders did not merely follow orders but made independent decisions to participate in unconstitutional and illegal martial law operations.The Seoul Central District Court's Criminal Division 37-2, presided over by judges Oh Chang-seop, Ryu Chang-seong, and Jang Seong-hoon, held a hearing on the case involving Kim and six other former military officials accused of engaging in important duties related to insurrection.The prosecution requested an 18-year sentence for Kim and a 15-year sentence for Lee Sang-hyun, the former commander of the 1st Airborne Special Forces Brigade, who was also indicted. Former Army Counterintelligence Command chief Kim Dae-woo, former Central Intelligence Command chief Kim Bong-kyu, and former commander of the 100th Information Brigade Jeong Seong-wook each faced a request for a 12-year sentence. Former Information Planning Division chief Ko Dong-hee and former Defense Investigation Headquarters chief Park Heon-soo were each recommended for 10 years.The special prosecutor's office characterized the actions as a serious national crime aimed at undermining the constitutional order established by the Constitution. They alleged that military forces were privately mobilized to incapacitate the functions of key constitutional institutions, including the National Assembly and the National Election Commission.They noted, "There has never been an instance of armed troops storming the National Assembly to drag out or arrest lawmakers," emphasizing that such actions are unprecedented in constitutional history and have never been attempted by any dictator or military leader.The prosecution rejected claims that Kim and others were unable to refuse orders from superiors, highlighting that they were high-ranking officers with the authority to independently command and operate their units.The special prosecutor stated, "The defendants had the time and authority to review the situation and refuse or halt the mission before execution. They did not mechanically follow orders but made independent decisions to participate in insurrection and actively carried out operations."They further argued, "The defendants are attempting to evade responsibility by claiming they were merely following orders without the intent to disrupt the Constitution. Their actions have shaken the foundations of national defense and weakened the pillars of the country, which must be severely punished."The prosecution also cited the damage to the military's command structure and public trust in the armed forces as reasons for their sentencing requests. They warned that high-ranking commanders mobilizing troops to carry out unconstitutional and illegal orders could lead to confusion, making it difficult for soldiers to trust their superiors' operational commands in future national crises.Kim is accused of leading troops to the National Assembly after the declaration of a state of emergency, breaking windows, and entering the premises. The indictment also states that the troops were loaded with 1,920 live rounds at the time of deployment.Lee, the former brigade commander, is charged with ordering 269 troops to deploy to the National Assembly immediately after the declaration of martial law and participating in the operation to seal off the Assembly.Former commander Kim Dae-woo is accused of forming an arrest team centered around counterintelligence personnel to detain 14 key figures, including Lee Jae-myung, the then-leader of the Democratic Party.Former chief Ko is charged with leading intelligence agents into the National Election Commission's Gwacheon office, seizing control of server rooms, and confiscating employees' mobile phones.Former commanders Kim Bong-kyu and Jeong Seong-wook were indicted for organizing intelligence agents to carry out the arrest and detention of Election Commission staff following the so-called 'Lotteria meeting.'Former chief Park is accused of organizing 100 investigators from the Defense Investigation Headquarters to support the counterintelligence team and directing them to identify detention facilities for politicians and others.Kim and six others were initially tried in a military court as active-duty soldiers but had their cases transferred to the Seoul Central District Court in January at the request of the special prosecutor's team. Park's case, which was being heard separately, was merged with these cases in May.Throughout the trial, Kim and the others have denied the charges, asserting that they were merely following orders and had no intention of disrupting the Constitution or planning to arrest politicians.* This article has been translated by AI. 2026-07-28 16:29:00
  • Support Small Business Owners, Says In Tae-yeon at New Employee Meeting
    Support Small Business Owners, Says In Tae-yeon at New Employee Meeting The Small Business Agency announced that Chairman In Tae-yeon held a 'Conversation with the Chairman' on July 28 at the agency's headquarters in Daejeon with 60 new employees.During the meeting, In explained the agency's vision and core values to the new hires, who were appointed on July 16, and shared the economic, social, cultural, and ecological values of small businesses.A Q&A session followed, focusing on the agency's key projects and the roles expected of the new employees.In provided heartfelt advice based on his experiences in response to questions about public service attitudes and organizational mindset. He also emphasized the importance of field-based work capabilities and a spirit of service to support the sustainable growth of small businesses and traditional markets.In stated, "The future of the agency can be strengthened by the creative ideas and passion of its employees," and expressed hope that they would take pride in being part of a specialized institution supporting small businesses and become reliable allies for them.He added, "I will continue to listen to the diverse voices of employees and foster a horizontal organizational culture that promotes growth across ranks and generations."Meanwhile, the new employees are set to be assigned to various departments nationwide starting in August to begin their official duties.* This article has been translated by AI. 2026-07-28 16:25:00
  • Wealth Gap Among Young Adults Reaches 40 Times, Urging Effective Asset Formation Policies
    Wealth Gap Among Young Adults Reaches 40 Times, Urging Effective Asset Formation Policies The wealth gap among young adults is widening, prompting calls for more effective asset formation support policies. While the government promotes asset formation initiatives highlighting high interest rates, many vulnerable young individuals remain in a support gap.According to a report by the National Assembly Legislative Research Service titled 'What Does the Youth Asset Formation Support Program Mean for Vulnerable Youth?', the average net worth gap between the top 20% and bottom 20% of young households is 40.4 times.The Legislative Research Service analyzed microdata from the National Data Agency's Household Financial Welfare Survey, revealing that as of last year, the average net worth of the top 20% of young households was 930.22 million won, while the bottom 20% had only 23.01 million won. This disparity is attributed to limited savings capacity and crisis resilience during youth, as well as the inheritance of parental assets.Additionally, 63.0% of young households carry financial debt, making them a generation with more debt than accumulated assets. The average debt for households headed by individuals under 39 is 95.48 million won, with financial debt amounting to 82.72 million won, exceeding the overall average of 67.95 million won. The ratio of financial debt to savings stands at 131.1%, surpassing 100%.The government has initiated asset formation support programs to reduce wealth disparities among young people and assist newcomers to the workforce. These include two main types: welfare matching savings for low-income individuals and financial policy products for the general youth population.Among these, the Youth Future Savings Account allows for a monthly contribution of up to 500,000 won for three years, with effective interest rates comparable to regular savings accounts yielding 13.2% to 14.4% annually, and preferential rates of 18.2% to 19.4%. For example, a small business employee earning 36 million won or less can accumulate up to 22.55 million won by contributing 500,000 won monthly for three years.The youth asset formation support program enables the accumulation of assets that would be difficult to achieve independently. The effective yield of the preferential Youth Future Savings Account is comparable to savings accounts yielding 18% to 19% annually. Furthermore, the Youth Tomorrow Savings Account helps prevent young individuals in working poverty from qualifying for livelihood benefits.However, the current support programs have a significant flaw: they require savings, making it impossible for unemployed youth to participate. To enroll in the Youth Tomorrow Savings Account, a monthly income of at least 100,000 won from work or business is necessary, while the Youth Future Savings Account requires reportable income to the National Tax Service. This leaves many young individuals in urgent need of asset formation in a support gap.Moreover, the difficulty of maintaining long-term savings is another area needing improvement. The early withdrawal rate for the Youth Leap Account rose from 8.2% in 2023 to nearly 15.9% the following year. Early withdrawal results in the loss of tax benefits on government contributions, which can lead to benefits being concentrated among those with sufficient savings capacity.Complicated regulations prohibiting multiple enrollments also make it challenging for young people to find suitable programs. Additionally, the varying terms and conditions of the Youth Hope Savings Account, Youth Leap Account, and Youth Future Savings Account have contributed to confusion.In response, the Legislative Research Service emphasizes the need to design asset formation support programs centered on vulnerable youth. It suggests differentiating matching rates based on income and easing criteria for suspending contributions and partial withdrawals in cases of unemployment or illness to prevent early withdrawals.It also highlights the importance of integrating and systematizing dispersed programs while considering financial sustainability. Kim Dae-sung, a legislative researcher, stated, 'We need to reorganize programs scattered across different departments from the user's perspective and integrate the legal foundations of these dispersed programs rather than creating new individual initiatives. Since asset formation support requires ongoing financial input for several years until maturity, we should consider gradual expansion of the target and level of support, as well as the consolidation of similar and overlapping programs for resource redistribution.'* This article has been translated by AI. 2026-07-28 16:24:00
  • Immediate Business Suspension for Hotels Overcharging Guests
    Immediate Business Suspension for Hotels Overcharging Guests Hotels that fail to post accommodation rates or charge more than the posted rates will face immediate business suspension upon first violation. The government approved a revision to the Tourism Promotion Act during a cabinet meeting on July 28.This amendment also includes foreign tourist city lodging and hanok experience businesses as subjects of regulation. Both sectors will receive a five-day business suspension for their first violation of failing to post rates or adhere to posted rates.The foreign tourist city lodging sector had previously been considered a regulatory blind spot due to the absence of rate posting and compliance requirements, but this amendment introduces those obligations.Regulations for hanok experience businesses have also been strengthened. Previously, these businesses would only receive a corrective order for failing to post rates or comply with posted rates upon first violation, but now they will face a five-day business suspension. Subsequent violations will result in a 15-day suspension for the second violation, a one-month suspension for the third, and cancellation of business registration for the fourth violation. The revised enforcement decree will be announced and take effect on August 4.This amendment follows the government's announcement of measures to eliminate overcharging during the expanded national tourism strategy meeting in February. The government is responding to repeated controversies over accommodation fees and unilateral reservation cancellations during peak seasons and large events by strengthening regulations in the lodging, food, and taxi sectors.Strengthened regulations for the lodging sector have already begun. Since July 14, the revised Public Health Management Act has been in effect, requiring hotels and inns to post rates and comply with them. Previously, first violations would result in a warning or corrective order, but now the second violation incurs a 10-day suspension, and the third a 20-day suspension. A fourth violation will lead to a closure order.Improvements to regulations for restaurants and taxis are also underway. A proposed amendment to the Food Sanitation Act would impose a five-day business suspension for food service establishments that fail to post rates or charge more than the posted prices. Additionally, a revision to the Taxi Development Act is being pursued to impose a 30-day suspension on taxi drivers found to have charged unreasonable fares upon first violation.The government is also planning to implement a 'price assurance system' that requires lodging businesses to report seasonal price ceilings to local governments, along with penalties for unjustified cancellations of lodging reservations.These regulations will not be applied solely based on high accommodation fees. Administrative penalties will only be imposed if it is confirmed that rates were not posted or that the actual amount charged exceeded the posted rates.* This article has been translated by AI. 2026-07-28 16:23:00
  • KOSPI Plummets 10.84% Amid Market Turmoil, Marking Sixth Drop This Month
    KOSPI Plummets 10.84% Amid Market Turmoil, Marking Sixth Drop This Month The South Korean stock market has once again collapsed, marking its sixth significant drop this month. Concerns over China's semiconductor industry and the weakness of U.S. tech stocks contributed to the KOSPI index falling by more than 10% during trading, while the KOSDAQ index also dropped over 8%.According to the Korea Exchange, the KOSPI closed at 6,023.66, down 732.09 points (10.84%) from the previous trading day. This decline is the second largest this year, following a 12.06% drop on March 4. The index opened at 6,400.27, down 355.48 points (5.26%), and quickly widened its losses. Considering previous drops of 7.89% on July 2, 5.35% on July 8, 8.95% on July 13, 6.37% on July 16, and 5.72% on July 24, this month has seen six instances of declines exceeding 5%, indicating extreme market volatility. The KOSDAQ index, which fell more than 8% during the day, closed down 59.01 points (7.72%) at 705.85.On this day, foreign selling pressure was evident in large-cap stocks, while individual investors stepped in to buy. Individuals net purchased 4.33 trillion won, helping to support the index, while institutions also showed a net buying trend of 629 billion won. In contrast, foreign investors net sold 4.99 trillion won, realizing profits.As the market plunged, safety mechanisms were activated. Both the KOSPI and KOSDAQ markets triggered sell-side circuit breakers and a first-stage circuit breaker. This was the first time since June 8 that both markets experienced simultaneous circuit breaker activation.The drop was primarily driven by concerns surrounding the semiconductor sector. Chinese memory chip maker Changxin Memory Technologies (CXMT) surged on its first day of trading on the Shanghai Stock Exchange, and news emerged that Chinese companies have begun developing their own deep ultraviolet (DUV) lithography equipment. This has heightened fears regarding the competitiveness of China's semiconductor industry. While the likelihood of a rapid reversal in the technology gap is low, the commercialization of Chinese DUV technology could enhance the self-sufficiency of semiconductor equipment and alleviate bottlenecks for memory manufacturers like CXMT, which has contributed to market anxiety.Additionally, negative news from the U.S. compounded the situation. NVIDIA announced it would provide $250 billion in financial guarantees related to its investment in OpenAI data centers, raising concerns about a 'circular deal' within the AI ecosystem. Doubts emerged that the large-scale investment was based on overly optimistic demand forecasts rather than actual end-user needs, shaking confidence in the overall AI investment cycle.The domestic semiconductor giants were hit hard. Samsung Electronics closed at 220,000 won, down 13.39%, marking its largest drop of the year. SK Hynix also fell over 14%, closing at 155,500 won. The simultaneous decline of the top two market capitalization stocks led the index's drop.However, analysts suggest that the market may be overreacting to these concerns. Han Ji-young, a researcher at Kiwoom Securities, stated, "The stock market's immunity has weakened significantly during this chain of adjustments. There has not yet been a realistic slowdown in fundamentals such as earnings, and all technical indicators point to oversold conditions."Ultimately, the market's focus is shifting to the upcoming earnings reports from major tech companies. Seo Sang-young, a researcher at Mirae Asset Securities, noted, "This decline is a result of the ongoing issues that have been discussed and highlighted in the market, combined with risk-averse sentiment ahead of the earnings announcements from large tech firms. Given that solid earnings are expected from companies like SK Hynix, Microsoft, Meta, and Amazon, the market is likely to seek justification for a rebound as it assesses these results." 2026-07-28 16:21:00
  • Financial Authorities Tighten Regulations on Individual Stock Leverage Products
    Financial Authorities Tighten Regulations on Individual Stock Leverage Products The financial authorities are expected to increase regulations on single stock leverage products, which have been identified as a cause of market volatility. The Financial Services Commission (FSC) announced that it will first assess the impact of the enhanced basic deposit requirement set to take effect on July 31. If market overheating continues, the FSC will consider implementing individual investment limits and additional investment requirements.During a meeting on July 28 at the Financial Investment Association in Yeouido, FSC Chairman Lee Ok-yeon stated, "The government will closely examine the policy effects of the enhanced basic deposit requirement and other supplementary measures that will be implemented on July 31. If demand does not sufficiently stabilize, we will also consider and prepare for additional measures such as raising investment requirements and setting individual investment limits."Proposed additional measures include periodic re-education, the introduction of simulated investment if necessary, and the establishment of prior investment experience requirements. The FSC is also considering a total investment management plan that would allow investment in single stock leverage products only within a certain percentage (e.g., 20%) of the total investment amount in financial products.Since the FSC announced supplementary measures on July 16 and proposed an early implementation of the enhanced basic deposit requirement on July 24, discussions around single stock leverage have continued, indicating the possibility of further regulations. Domestic market volatility has persisted, leading to the activation of the 14th circuit breaker in the KOSPI market on the same day.This situation is also influenced by President Lee Jae-myung's public directive. During a Cabinet meeting on July 21, he remarked on the FSC's supplementary measures, saying, "There are concerns that this alone will not suffice. Ensure that necessary response measures are taken swiftly and decisively." He further noted that the measures would not be implemented immediately but would take time.Political circles have also begun discussions on follow-up measures. The previous day, the Democratic Party's 'Korea Premium K-Capital Market Special Committee' held a meeting with representatives from securities firms and asset management companies to discuss the market impact of single stock leverage products and additional supplementary measures. After the meeting, committee member Oh Gi-hyung stated, "The current basic deposit requirement of 30 million won could be raised to 50 million won depending on the situation."The FSC plans to proceed with the confirmed supplementary measures as scheduled. The listing of new products and advertising has been immediately halted since July 16, and the basic deposit requirement of 30 million won will be implemented earlier than planned on July 31. Discussions are ongoing to expedite the expansion of the minimum trading unit (from 1 share to 20 shares) and enhance investor education based on case studies, originally scheduled for November, to an earlier date in July or August. Additionally, stricter management of price discrepancies will be implemented starting August 19. Furthermore, in the future, even if securities are sold, the basic deposit will only be recognized at the time the settlement is completed and actual cash is deposited into the account (T+2 days). Loans secured by the proceeds from sales will also be excluded from the basic deposit to prevent circumvention through round-trip trading, according to the financial authorities.Analysts in the securities industry suggest that the strengthened regulations could alleviate the concentration on large-cap stocks. Lee Jae-won, a researcher at Yuanta Securities, stated, "A significant decline in trading volume and turnover is expected, and if there is a corresponding decrease in net assets, the concentration on Samsung Electronics and SK Hynix may ease. This could normalize the KOSDAQ market, which has been a 'vacant house' in terms of supply and demand, with the influx of foreign capital and the return of individual investors." 2026-07-28 16:20:00
  • China Achieves Domestic Production of Key DUV Lithography Equipment
    China Achieves Domestic Production of Key DUV Lithography Equipment China has reportedly succeeded in the domestic production of deep ultraviolet (DUV) lithography equipment, a critical tool in semiconductor manufacturing. Following the successful listing of CXMT (Changxin Memory Technologies), the largest DRAM producer in China, the semiconductor industry in the country is experiencing a wave of positive developments. This progress has had a significant negative impact on the stock prices of South Korean semiconductor companies, with Samsung Electronics' shares dropping 13.4% and SK Hynix's shares falling 14.7% on July 28.According to The Information, a U.S. IT news outlet, a Chinese semiconductor equipment company has begun producing its own immersion DUV equipment, with plans to deliver five units to customers this year. The production will supply major Chinese semiconductor firms, including SMIC (Semiconductor Manufacturing International Corporation), Hua Hong Semiconductor, and CXMT. This marks the first time a Chinese company has manufactured immersion DUV equipment. The Information also reported that 20 units are expected to be shipped next year.Domestic Production of DUV Achieved After Seven Years of U.S. SanctionsThe United States has prohibited the export of advanced extreme ultraviolet (EUV) lithography equipment to China since 2019, and since 2023, it has also banned the export of immersion DUV equipment. China has been focused on domestic production of lithography equipment since 2019, achieving success in DUV production after more than seven years.Immersion DUV lithography can produce semiconductors with a 28-nanometer process in a single exposure. If multiple patterning techniques are employed, it can cover down to a 7-nanometer process. However, multi-patterning has drawbacks, including lower yield rates and higher manufacturing costs.The immersion DUV technology was introduced to the market by Dutch lithography company ASML in 2006. The equipment being produced by the Chinese company is expected to have performance similar to ASML's 2008 version of immersion DUV, indicating a technological gap of approximately 18 years between ASML and Chinese manufacturers.Prospects for EUV Equipment Development by 2030Despite the significant technological gap, the successful domestic production of DUV is seen as a major achievement for China, indicating that the country has completed the localization of 28-nanometer semiconductor processes. Analysts predict that China will accelerate its development of EUV lithography equipment based on this success.The Chinese government has set 'technological self-reliance' as a key goal in its 15th Five-Year Plan (2026-2030), with the development of EUV lithography equipment being the most critical task. While the government has not specified a timeline for development, local semiconductor industry insiders expect to see results from EUV equipment development by 2030.Huawei Affiliate Identified as DUV DeveloperThe name of the Chinese DUV equipment manufacturer has not been disclosed. However, there is speculation that it is a subsidiary of Huawei, known as Yuliangsheng. In September of last year, the Financial Times reported that SMIC was testing immersion DUV equipment produced by Yuliangsheng, with initial test results showing promising indicators.Yuliangsheng is 50% owned by a venture capital firm under the Shanghai municipal government, while the other 50% is held by Chinese semiconductor equipment company Sincere. Sincere is fully owned by a venture capital firm under the Shenzhen municipal government. Given that Sincere's core team consists of members from Huawei's precision equipment development team, the Chinese industry considers Sincere to be affiliated with Huawei. Sincere is also developing EUV equipment, although it is unclear whether it is doing so independently or in collaboration with Yuliangsheng. The project name for Sincere's EUV development is 'Everest.'CXMT Intensifies Competition in HBM MarketMeanwhile, CXMT, which went public on July 27, saw its stock price surge by 476% on its first day, making it the top company by market capitalization on the Chinese stock market. CXMT is expected to raise up to 666 billion yuan through this listing, and with a projected net profit of 57 billion yuan for the first half of the year, the company is set to have a total of 1.236 trillion yuan in cash. Most of this is expected to be invested in AI-related DRAM and high-bandwidth memory (HBM), positioning CXMT to better compete with Samsung Electronics and SK Hynix.Currently, the technological gap between CXMT and SK Hynix is estimated to be around four years. Analysts from Chinese securities firms believe that with substantial investment resources, government support, and explosive demand from Chinese AI companies, CXMT's technological capabilities could advance significantly. There are even projections that the technology gap between CXMT and SK Hynix could narrow to two years in the future. 2026-07-28 16:18:00
  • BNK Financial Reports 13.5% Drop in First Half Net Profit to 411.8 Billion Won
    BNK Financial Reports 13.5% Drop in First Half Net Profit to 411.8 Billion Won BNK Financial Group's net profit for the first half of this year has declined compared to last year. Although both interest and non-interest income grew, one-time accounting costs related to the liquidation of a real estate fund impacted the results.On July 28, BNK Financial announced that its consolidated net profit for the first half of 2026 was 411.8 billion won, a decrease of 64 billion won (13.5%) from 475.8 billion won in the same period last year.The group's total interest income rose by 5.6% to 1.7648 trillion won. Non-interest income from fees and other sources also increased by 54.6% and 1.4%, respectively.However, the decline in net profit was influenced by a base effect from the liquidation profit of the BNK Gangnam Core Office Fund (544 billion won) recorded in the first half of last year, as well as a temporary accounting loss of 44 billion won from the acquisition of external shares in the Yeouido Core Office Fund.By subsidiary, BNK Busan Bank reported a net profit of 201.2 billion won, down 20.1%, while BNK Gyeongnam Bank saw a 2.3% decrease to 155 billion won.In contrast, the non-banking sector showed significant growth, with net profit rising approximately 58.6% to 172.6 billion won compared to 108.8 billion won in the same period last year.Thanks to a booming stock market, BNK Investment Securities and BNK Asset Management reported impressive results. BNK Investment Securities' net profit surged by about 102.7% to 45.6 billion won, while BNK Asset Management's net profit skyrocketed by 224.1% to 37.6 billion won. The largest subsidiary, BNK Capital, achieved a net profit of 78.7 billion won, reflecting a growth of about 13.1% from 69.6 billion won in the same period last year. BNK Savings Bank also recorded a net profit of 7.1 billion won, an increase of approximately 47.9%.As of the end of June, the group's ratio of non-performing loans was 1.46%, down 0.11 percentage points from the previous quarter. The delinquency rate also decreased to 1.34%, down 0.08 percentage points, due to a reduction in non-performing loans and delinquent amounts related to real estate project financing.However, the common equity tier 1 capital ratio (CET1) fell to 12.14%, down about 0.42 percentage points from 12.56% in the same period last year.Park Seong-wook, CFO and Vice President of BNK Financial, stated, "The decrease in net profit compared to the same period last year is due to the base effect from the sale profit of the Gangnam BNK Digital Tower. Excluding one-time factors related to real estate funds, the ordinary net profit for the first half is 455.8 billion won, reflecting an increase of about 8.2% compared to the same period last year, indicating steady improvement in the profitability of our core operations."Additionally, BNK Financial's board of directors resolved to pay a quarterly cash dividend of 150 won per share. The company also decided to cancel all of the approximately 3.49 million shares (worth about 60 billion won) it repurchased in the first half of this year during the third quarter.* This article has been translated by AI. 2026-07-28 16:17:00
  • Korean Game Companies Accelerate Entry into China Amid Renewed Opportunities
    Korean Game Companies Accelerate Entry into China Amid Renewed Opportunities Korean game companies are re-establishing their long-term strategies for entering the Chinese market. Following the continued issuance of foreign game licenses this year, the genres targeting the Chinese market are diversifying, ranging from established intellectual properties (IPs) to new subculture titles.According to the gaming industry on July 28, the National Press and Publication Administration (NPPA) of China recently announced its list of foreign game licenses issued in July, which includes NCSoft's 'Aion Classic' and Gravity's 'Ragnarok: Eternal Love 2'.In February, Nexon’s 'Shaya: The Great Adventure' was the first to be licensed, followed by Nexon’s 'Arc Raiders' and Gravity’s 'Ragnarok Online: Battleground' in April, and Webzen’s 'MU: Miracle' in May. Last year, over ten games, including Line Games' 'Uncharted Waters Origin', received foreign game licenses.After a near-total halt in foreign game license issuance following the 2017 ban on Korean content, the trend has recently reversed. From 2017 to 2019, there were no licenses issued, but the number has steadily increased from one in 2020 to two in 2021, eight in both 2022 and 2023, and eleven in 2024.As China remains the largest export market for the Korean gaming industry, companies are actively pursuing these licenses. According to the '2025 Korea Game White Paper' by the Korea Creative Content Agency, China accounted for 29.7% of Korea's game exports in 2024, the highest share. Entering the Chinese market continues to be a key business objective for Korean game companies.Games based on well-known IPs like NCSoft's 'Aion', Webzen's 'MU', and Gravity's 'Ragnarok' are actively entering the market. This strategy aims to reduce the burden of acquiring new users by leveraging familiar IPs among Chinese players, thereby increasing the likelihood of market success.NCSoft has expanded its lineup in China by securing a foreign game license for the 'Aion' IP this year, following 'Lineage' and 'Blade & Soul'. Gravity has also expanded its presence in China, receiving licenses for four titles last year and one this year, all based on the 'Ragnarok' IP.The genres of games entering China are also becoming more diverse. Unlike the past focus on massively multiplayer online role-playing games (MMORPGs), there is now a range of genres including subculture games, collectible RPGs, and shooting games securing foreign licenses. Examples include Epidemic Games' 'Trickster Revive', Smilegate's 'Chaos Zero Nightmare', Nexon's 'Dave the Diver', and Embark Studios' 'Arc Raiders'.There is also a growing trend of developing games with the Chinese market in mind from the outset. Unlike in the past, when games would enter China after domestic success, companies are now including China in their initial global launch strategies. Collaborations with local Chinese game companies are expanding beyond license applications and distribution to include joint development.By combining the IP and development capabilities of Korean companies with the local market understanding of Chinese partners, games are being designed to cater to Chinese users. NCSoft is jointly developing a mobile version of 'Aion' with Chinese company Shengqu Games, while Gravity is collaborating with Chinese firm Xindong Network.However, industry insiders caution that securing a foreign game license does not guarantee success in the Chinese market. Recently, Chinese game companies have seen their own titles achieve significant success both domestically and globally, altering the competitive landscape.An industry representative stated, "In the past, obtaining a license was the biggest challenge, but now having a license does not guarantee success. Localizing content to match Chinese user preferences and operational capabilities are key factors for success."* This article has been translated by AI. 2026-07-28 16:16:00
  • Bio Stocks Plummet Nearly 90% Amid Disappointing Clinical Trial Results
    Bio Stocks Plummet Nearly 90% Amid Disappointing Clinical Trial Results Biotech companies that saw their stock prices soar on the promise of new drug developments are now facing significant declines following disappointing clinical trial results. After years of research and development, along with investments totaling billions of won, stocks have plummeted by nearly 90% in a short period due to underwhelming outcomes in late-stage trials. On July 28, the Korea Exchange reported that Kolon TissueGene's stock closed at 14,560 won, down 8.49% from the previous trading day. Following the announcement of the TG-C clinical trial results, the stock has fallen for four consecutive trading days. Notably, it hit the lower limit for three straight days from July 21 to 23, and then dropped another 28.74% on July 24. Compared to its peak of 149,000 won on May 12, the stock has lost about 90% of its value in just over two months. Stock prices in the biotech sector are highly sensitive to expectations at various clinical trial stages. Positive results in Phase 1 and 2 trials or heightened expectations for technology transfers can lead to rapid increases in company valuations. However, when disappointing results emerge in the critical Phase 3 trials, companies often see most of their gains wiped out. Industry experts have reiterated that entering late-stage clinical trials does not guarantee success. Kolon TissueGene's TG-C showed pain relief and improved joint function in its first Phase 3 trial, but it failed to meet the statistical significance required for the primary endpoint, a key criterion for approval. The company is currently analyzing the unexpectedly high placebo response and awaiting results from a second independent trial. Samchundang Pharm is another example of a company that has seen its stock price collapse as expectations for new drugs have rapidly diminished. The company's stock soared to 1,233,000 won on March 30, driven by optimism surrounding obesity treatments. However, ongoing uncertainties regarding development timelines and clinical trials have led to a steady decline, with the stock closing at 139,500 won, marking an approximately 89% drop from its peak in just four months. An industry insider noted, "In biotech, a company's value can fluctuate significantly based on the success of new drug development, so relying solely on expectations can lead to substantial volatility. Investors need to assess the clinical progress, data quality, potential for technology transfer, and whether it can translate into actual sales." Financial authorities are also taking steps to protect investors in biotech stocks. The Financial Supervisory Service has established a task force aimed at improving disclosures in the pharmaceutical and biotech sectors and is expected to announce measures to enhance investor protection soon.* This article has been translated by AI. 2026-07-28 16:13:00