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  • Revised R&D Standards for Innovative Pharmaceutical Companies Raise Concerns
    Revised R&D Standards for Innovative Pharmaceutical Companies Raise Concerns The Ministry of Health and Welfare has overhauled the certification criteria for innovative pharmaceutical companies for the first time in 14 years, accepting new applications since August 18. The evaluation system has been revised, changing from relative to absolute assessments and reducing the number of evaluation criteria from 25 to 17. Key metrics such as research and development (R&D) investment, clinical trial counts, and export volumes have been converted into quantitative indicators to clarify evaluation standards. The minimum passing score for certification has been set at 65 points, and companies that fail will receive written notification of the reasons for their non-certification, enhancing predictability in evaluation outcomes.However, the issue lies in the increased R&D investment ratio criteria, which have been raised uniformly without considering the financial capacity of the industry. According to the revised guidelines, companies with an average pharmaceutical sales revenue of less than 100 billion won over the past three years must increase their R&D investment ratio from 7% to 9%, while those with sales above 100 billion won must raise it from 5% to 7%. The minimum R&D expenditure requirement has also been increased from 5 billion won to 7 billion won. The intention is to encourage new drug development by providing price preferences to companies that increase their R&D investments.Coinciding with a reduction in generic drug prices, the industry views the innovative certification as a crucial survival tool. However, there are concerns that this very metric paradoxically reflects a company's R&D efforts in reverse. Although a three-year grace period has been provided, the fundamental burden of R&D increases disproportionately for smaller companies.If sales grow faster than R&D investment, companies may find themselves spending more on research and development while their investment ratio decreases. For instance, Hanmi Pharmaceutical reported an increase in R&D investment in the first half of the year, but its sales surged from 571.4 billion won to 692.2 billion won, a 21.1% increase, resulting in a lower investment ratio.The problem is that companies may appear to be neglecting R&D despite actually investing more. Ironically, faster-growing companies face greater challenges in meeting the price preference criteria.A representative from a pharmaceutical company stated, "Applying price increases based on R&D investment ratios creates a structure where lower sales are more advantageous. It is unreasonable to intentionally reduce sales to receive price preferences, yet the uniform price increase system is influencing corporate management strategies."The revision raises the R&D ratio requirement to 9% for small and medium-sized pharmaceutical companies with sales below 100 billion won, and it also evaluates the quality of clinical progress and technology transfer. This dual burden forces smaller companies, which often lack capital, to prove both the scale of their investments and the quality of their outcomes. Coupled with the loophole that reduces the ratio with even slight sales increases, growing companies may find themselves at a disadvantage when seeking certification.The Korean Pharmaceutical and Bio Association's proposal to subdivide the sales category below 100 billion won and adjust scores based on R&D investment size is a welcome measure. However, merely adjusting the scoring does not lower the fundamental threshold. The basic requirements remain unchanged, with only the scoring steps being more finely divided.The pharmaceutical industry requires diverse players of various sizes to foster innovation in the long race of new drug development. Sticking to a uniform standard centered on large pharmaceutical companies risks stifling the R&D momentum of small and medium-sized firms that could be the seeds of the next blockbuster drug.The success of this reform will not be determined by whether a few large companies maintain their certifications, but rather by how many small and medium-sized enterprises can continue to climb the ladder of innovation.* This article has been translated by AI. 2026-08-20 16:32:00
  • Samsung Electronics Plans Record 100 Trillion Won Shareholder Return
    Samsung Electronics Plans Record 100 Trillion Won Shareholder Return Samsung Electronics is set to implement a record shareholder return plan exceeding 100 trillion won. This strategy aims to expand both large-scale investments and shareholder returns amid a booming semiconductor market.According to industry sources, Samsung will hold a board meeting at the end of this month to finalize its shareholder return plan, which is expected to include special dividends. The total return amount is anticipated to surpass 100 trillion won.The funding is likely to come from 50% of the company's free cash flow (FCF). While some analysts have speculated about a potential return of up to 200 trillion won, concerns about the burden of large facility investments suggest this may be unrealistic.In the first half of this year alone, Samsung invested over 55 trillion won in research and development and facility investments. Unlike operating profit, FCF accounts for actual cash spent on investments, which could directly impact the funds available for shareholder returns in the future.The specific method of return is expected to focus heavily on cash dividends. Unlike SK Hynix, Samsung may find that a dividend approach is more favorable from a governance perspective than stock buybacks.Industry experts believe that if performance improves next year, the scale of FCF-linked shareholder returns will naturally increase. How Samsung balances the expansion of shareholder returns with future growth investments will be a key variable in its capital allocation strategy.* This article has been translated by AI. 2026-08-20 16:32:00
  • Mayor Shin Kyeyong: Resolving 40-Year Conflict Through Communication with Merchants
    Mayor Shin Kyeyong: Resolving 40-Year Conflict Through Communication with Merchants Shin Kyeyong, the mayor of Gwacheon, stated on August 20 that the resolution of a 40-year conflict without physical confrontation was the result of ongoing communication and consultation with merchants. He emphasized that the street vendor conflict at Guldari Market was resolved through 'communication and systems.'On this day, Mayor Shin announced that the Guldari Market street vendor conflict was recognized as an exemplary case, earning the '2026 Excellence in Public Conflict Management' award from Gyeonggi Province. The province selects outstanding cases each year to share effective strategies for preventing and resolving conflicts that arise during the implementation of public policies.This year, four institutions, including Gwacheon City, were selected based on a comprehensive evaluation of their conflict resolution processes and efforts. The award highlights the success of Mayor Shin's conflict management approach, which combined dialogue and persuasion with systematic solutions, such as providing living stability support and phased restoration, rather than merely relying on administrative enforcement.Since November of last year, Mayor Shin has met individually with street vendors at Guldari Market to explain the restoration plan and gather feedback from the field. Following this, he implemented measures such as providing living stability funds and notifying vendors about the restoration process, leading to the voluntary departure of most vendors. On January 17 of this year, administrative enforcement was carried out for the remaining eight vendors.However, prior to the enforcement, multiple discussions and consultations were held, allowing for a thorough explanation and persuasion that resulted in the completion of the removal without physical confrontation. After the removal, the mayor continued to meet and consult with the vendors to implement follow-up measures.Notably, the restoration of street vendors at Guldari Market has been positively received by the community, as it resolved a long-standing local conflict and restored pedestrian rights.Local residents expressed their satisfaction, stating, 'The path that had been inconvenient for a long time is now organized, making it much easier to walk.' They also noted, 'It is fortunate that the street vendor issue was resolved through dialogue rather than just enforcement,' and highlighted the importance of considering the livelihoods of vendors while reclaiming space for public use.Additionally, they remarked, 'Given that this was a problem lasting over 40 years, it is fortunate that it was resolved without major conflict,' and expressed hope for continued management that would be acceptable to both citizens and vendors.Meanwhile, Mayor Shin added, 'I will continue to communicate thoroughly with stakeholders to prevent conflicts and develop reasonable solutions that citizens can feel.'* This article has been translated by AI. 2026-08-20 16:28:00
  • U.S. Regulations Challenge Samsung and LGs Robot Vacuum Strategies
    U.S. Regulations Challenge Samsung and LG's Robot Vacuum Strategies The U.S. has introduced new certification requirements for advanced robots manufactured overseas, creating unexpected challenges for Samsung Electronics and LG Electronics in the robot vacuum market. While the focus is on China, the criteria emphasize 'where it is made' rather than 'which company it is,' putting domestic firms that have leveraged China's manufacturing base for cost and speed at risk. The strategy of engaging with China to counter it has paradoxically become a burden in front of the U.S.According to industry sources, the Federal Communications Commission (FCC) added 'advanced robotic devices' and power inverters to its Covered List through its Public Safety Bureau at the end of last month. If a product is listed, it cannot obtain the necessary certification to be sold in the U.S., effectively closing the market. The criteria include four conditions: the device must weigh over 4.4 pounds (about 2 kg) including its docking station, have sensors that can read the environment, support bidirectional communication of over 200 kilobits per second, and include AI and machine learning software for autonomous navigation. Most currently sold robot vacuums meet these four conditions.Products that have already been certified and are on store shelves or in consumer use will not be affected. The focus is on new products. To pass this certification, foreign companies must present plans for domestic production investment and obtain conditional approval from the Department of Defense. A more challenging aspect is that the criteria are based on the country of manufacture, not the company's nationality. Even a company with the South Korean flag will face the same scrutiny as a Chinese firm if it has utilized a factory in China.As a result, Samsung and LG have reportedly delayed the overseas launch of their new robot vacuum models. Samsung has decided to concentrate its efforts on the domestic market for the time being, without specifying a global sales date for its 2026 'Bespoke AI Steam' model.LG Electronics faces a more complex situation. The company has structured its 2026 lineup into three categories, with the top-tier products assigned to Chinese manufacturer PICEA and mid-range products to its existing partner Silverstar. This reflects CEO Ryu Jae-cheol's strategy of utilizing the Chinese ecosystem for production (ECM), which has now manifested in the robot vacuum segment. PICEA is a Shenzhen-based ODM specializing in robot vacuums and has acquired the entire stake of the bankrupt U.S. company iRobot (Roomba). The choice to balance cost and speed has turned into a supply chain vulnerability in the U.S.The gap between domestic performance and global competition is stark. The 'Bespoke AI Steam' model surpassed 50,000 units sold in June, while LG's 'HomeBot AI Objet Collection RONi,' launched on July 2, significantly outperformed previous models during the same period. According to GfK, the domestic market is expected to grow from 430 billion won in 2023 to over 1 trillion won this year. In contrast, the top five Chinese companies, including Roborock (17.7%), Ecovacs (14.3%), and Dreamy (10.5%), hold over 54.5% of the global market share.Ultimately, the ability to separate U.S.-bound production and sourcing lines will be crucial. Industry experts suggest that not only where the final product is assembled but also who manages components like communication modules and semiconductors will influence market entry. An industry insider noted, 'A market has opened where the question is not how well a product is made, but where it is made. We have no choice but to consider diversifying the supply chain for U.S.-bound products, but with key components concentrated in China, finding a solution in the short term is challenging.'* This article has been translated by AI. 2026-08-20 16:24:10
  • Yoon Duk-kun and Oh Se-hoon Meet, Yongsan Park Discussions Remain Stalled
    Yoon Duk-kun and Oh Se-hoon Meet, Yongsan Park Discussions Remain Stalled The first negotiations between the government and Seoul City regarding housing supply at Yongsan Park ended with both sides reaffirming their differences. Significant challenges are expected in reaching a concrete compromise, particularly regarding the use of the park's core areas. However, the delay by both parties in processing some housing supply bills for a week has emerged as a variable for future negotiations. The Ministry of Land, Infrastructure and Transport and Seoul City plan to meet again next week, with finding common ground on key issues being crucial. On August 20, Minister of Land, Infrastructure and Transport Yoon Duk-kun and Seoul Mayor Oh Se-hoon met at the Dalgaebi Conference House in Jung-gu, Seoul, to discuss housing supply plans for the city. They discussed the potential use of some areas of Yongsan Park, the lifting of greenbelt restrictions, and easing regulations on private redevelopment projects, but ultimately only reaffirmed their positions. They were unable to resolve differences regarding the scale of housing supply in the Yongsan International Business District. The most pronounced disagreement centered on Yongsan Park. Minister Yoon expressed that limited housing could be supplied for young people and newlyweds by utilizing some areas that have been damaged or already developed. In contrast, Mayor Oh maintained a principled opposition to housing supply within the main area of Yongsan Park. Regarding the greenbelt, Minister Yoon reiterated his proposal to limit any additional lifting of restrictions to damaged areas rather than a blanket release. Meanwhile, Mayor Oh argued that enhancing the viability of private redevelopment projects would be more effective for increasing housing supply in downtown Seoul than focusing on Yongsan Park or the greenbelt, which would not yield immediate results. No conclusions were reached on easing regulations for private redevelopment projects, including increasing floor area ratios. Minister Yoon stated, “We will discuss this further after each side reflects on the issues,” leaving the door open for additional negotiations. The two sides are expected to meet again as early as next week to seek compromises. After the meeting, Minister Yoon noted, “The only thing we agreed on is to meet again next week,” while emphasizing the need to convey a hopeful message to the public, especially to young people and newlyweds. Additionally, the delay in processing housing supply-related bills by both parties has become a factor in future discussions. The parties postponed the introduction of amendments to the Special Act on Yongsan Park, the Urban and Residential Environment Improvement Act, and the Special Act on Promoting Urban Redevelopment, which were scheduled for a vote in the National Assembly. Chun Jun-ho, the Deputy Floor Leader of the Democratic Party, stated, “Since the Minister of Land and the Mayor of Seoul are discussing housing supply issues, we decided to postpone processing some bills for about a week to reflect the results of their discussions.” However, the postponed bills do not directly align with the contentious issues between the two sides. The currently pending amendment to the Special Act on Yongsan Park alone would not allow for housing supply within the main area of Yongsan Park, and the amendments to the Urban Improvement Act and the Urban Redevelopment Act do not directly address the floor area ratio increases requested by Seoul City for private redevelopment projects. Nevertheless, the decision by both parties to hold off on immediate processing of the bills allows for further negotiations. The next meeting is expected to focus on the scope of damaged areas in Yongsan Park and the greenbelt, as well as easing regulations on private redevelopment projects, determining the level of compromise that can be achieved. Seo Jin-hyung, a professor at Kwangwoon University’s Department of Real Estate Law, commented, “Given the significant differences between the positions of Seoul City and the central government, it will not be easy to narrow the gap in a short time. However, both sides need to find areas of compromise and collaborate on housing supply to send a positive signal to the market.” * This article has been translated by AI. 2026-08-20 16:24:10
  • Four South Korean Oil Companies Deny Price-Fixing Charges in First Court Hearing
    Four South Korean Oil Companies Deny Price-Fixing Charges in First Court Hearing Four South Korean oil companies, accused of colluding to fix prices amid the U.S.-Iran conflict, denied the charges during their first court hearing.The Seoul Central District Court held its initial hearing on August 20 for HD Hyundai Oilbank, SK Energy, S-OIL, and GS Caltex, along with four executives, who are facing allegations of violating fair trade laws.Prosecutors allege that HD Hyundai Oilbank exchanged pricing information with SK Energy starting in July 2024 and agreed to raise prices simultaneously after the outbreak of war. They estimate the direct collusion to be worth approximately 14 trillion won. Including collusion by GS Caltex and S-OIL, the total competitive restriction effect is believed to reach about 26 trillion won.While HD Hyundai Oilbank was indicted on these charges, SK Energy and its employees were excluded from prosecution under a self-reporting leniency program. GS Caltex and S-OIL were also not included in the indictment, arguing they were not subject to penalties under fair trade laws.However, HD Hyundai Oilbank, SK Energy, GS Caltex, and S-OIL were all indicted for allegedly imposing unilateral pricing decisions on gas stations through contracts requiring full purchases, leveraging their superior market position.During the hearing, the four oil companies categorically denied the allegations.HD Hyundai Oilbank stated, "The prosecution's claims suggest that structural corruption or collusion is rampant in the oil industry and that this influenced price increases during the war, which is not true." They added, "We were unusually indicted quickly, and we could not clarify the facts during the investigation. We will provide a detailed account in court."SK Energy responded to the full purchase contract allegations, saying, "This matter was conducted in reference to the Fair Trade Commission's corrective orders," and expressed difficulty in understanding the application of the charges. GS Caltex also argued that gas stations had the option to choose among various oil companies at the contract stage and could refuse contract renewals, asserting that the full purchase contracts do not constitute unfair trading.S-OIL also denied the charges and stated they would review additional evidence before submitting a detailed opinion.The court scheduled the next hearing for September 22, but it will proceed as a preparatory session due to the defendants' need to review evidence and organize their opinions.* This article has been translated by AI. 2026-08-20 16:24:00
  • Lee Kang So Explores the Mystique of Existence in New Exhibition
    Lee Kang So Explores the Mystique of Existence in New Exhibition "When I feel good, and very good, unexpected things come out when I move the brush. That’s when I feel the mystique," said Lee Kang So, an 83-year-old master of contemporary Korean art. On good days, he picks up a brush and, without hesitation, creates large-scale works measuring up to 11 meters long. He allows the brush to move freely, as he describes it, "letting it do as it pleases."On August 20, a day before the opening of his solo exhibition, "Lee Kang So: Emergence and Dissolution," at the Lotte Museum in Seoul, Lee frequently mentioned the word "mystique.""The very act of being alive is mysterious," he added.This exhibition brings together over 150 works from Lee's five-decade career, showcasing his explorations across painting, sculpture, and installation. It features key pieces from the 1970s, a pivotal era in Korean experimental art, alongside new works being unveiled for the first time.Lee has long focused on the concept of existence, grappling with the question, "Do objects truly exist?" He believes nothing is fixed. "Nothing in this world remains still. Everything is constantly changing, and that applies to all things, regardless of who you are," he stated. For him, existence varies depending on the observer, the species, and the time and place, which is why he creates works that are "born and disappear" through spontaneous brushstrokes and movements, relying on chance and improvisation.The exhibition features works that reflect this worldview, including a new LED piece based on his representative painting series "Cheongmyeong," as well as 11 major large-scale series such as "Untitled" and "From the Island." It also includes iconic works from the 1970s, such as "Empty Space," "Untitled-75031," and "Paljindo," which represent the era of Korean experimental art.In one corner of the exhibition, Lee has recreated his 1973 piece "Disappearance." At that time, he brought actual tables, chairs, and drinking vessels from a tavern into the Myeongdong Gallery and operated a tavern for a week. This allowed visitors to drink and converse, extending the process of time and relationships into the artwork.Reflecting on "Disappearance," Lee recalled his younger days when he began to question "reality." At around 30, while having lunch with a senior colleague, he suddenly thought, "It seems that neither my senior nor I can truly see ourselves, yet we live as if we exist." This marked the moment he began to doubt whether objects exist as we perceive them.For over five decades, he has held onto that question, and these days, he finds mystique in doing things he has never done before. Like a child creating interesting shapes with clay, he mixes clay from Gyeongju and Sancheong with sand and throws the clumps to the ground. The combination of his mindset, movements, gravity, and the state of the clay results in unintended forms. About 30 of these "throwing sculptures" are featured in the exhibition.The 83-year-old master smiled like a child as he said, "It’s so much fun to see the clumps change and to see them sculpted on their own. Doing things I’ve never done before is really enjoyable."The exhibition is at the Lotte Museum, with adult admission priced at 20,000 won and 13,000 won for youth and children. 2026-08-20 16:24:00
  • Legal Framework Established for Using Personal Data in AI Development
    Legal Framework Established for Using Personal Data in AI Development A legal basis has been established to utilize personal data in the development of artificial intelligence (AI) when high-quality training data cannot be obtained through pseudonymous or anonymous information. However, the use of personal data for AI development is not universally permitted; it requires approval from the Personal Information Commission (PIC) based on public and social necessity and enhanced safety measures.On August 20, the PIC announced that a bill amending the 'Personal Information Protection Act' to allow exceptions for the use of personal data in AI technology development has passed the National Assembly. The PIC explained that the amendment was made in response to demands for swift and extensive access to high-quality training data to enhance the competitiveness of the AI industry.Under current law, using personal data collected legally for purposes other than those originally intended requires separate consent from the data subject or a legal basis. Consequently, utilizing collected personal data for AI development has led to issues with data quality, as it had to be used in pseudonymous or anonymous forms.While the PIC has previously allowed data usage for certain innovative services, such as AI for preventing voice phishing and developing autonomous robots, these exceptions were temporary, lasting from two to four years. Additionally, it became clear that relying solely on individual laws for industrial promotion was insufficient to ensure adequate safety measures for personal data protection.The amendment introduces a new exception for AI development, allowing the use of legally collected personal data if it is difficult to develop AI solely with pseudonymous or anonymous information, if there is recognized public or social necessity, and if enhanced safety measures are in place, subject to PIC review and approval.Safety measures to prevent personal data breaches have also been strengthened. When processing sensitive or unique identification information, companies must assess risks in advance and develop improvement plans. Organizations utilizing these exceptions are required to disclose key information through their privacy policies. The PIC will also publish the status of AI exception operations on its website.The amendment will take effect six months after being promulgated following approval at the Cabinet meeting. Before implementation, the PIC plans to gather expert and field opinions to establish operational guidelines and subordinate regulations for the AI exceptions.Song Kyung-hee, chairperson of the PIC, stated, “This amendment is significant in that it rationally expands opportunities for the use of personal data in an era where the level of AI development translates into national competitiveness, while also establishing a corresponding management and oversight system in collaboration with businesses.”* This article has been translated by AI. 2026-08-20 16:20:10
  • Yoo Sang-dae Concludes 40-Year Tenure as Deputy Governor of Bank of Korea
    Yoo Sang-dae Concludes 40-Year Tenure as Deputy Governor of Bank of Korea Yoo Sang-dae, Deputy Governor of the Bank of Korea, emphasized on August 20 that "recent conditions and environments are presenting difficult challenges to our economy," adding that "the role of the central bank becomes even more important during such times."During his farewell ceremony held at the Bank of Korea headquarters in Jung-gu, Seoul, Yoo stated, "The influence of the central bank can never diminish under any circumstances, and it must be used effectively to contribute to social stability and economic development."Yoo joined the Bank of Korea in 1986 and has worked in key departments, including the Financial Markets Division, International Division, and International Cooperation Division. After serving as Vice President of the Korea Housing Finance Corporation in 2021, he returned to the Bank of Korea in August 2023 to assume the role of Deputy Governor, completing his three-year term on this day.During his tenure as Director of the International Cooperation Division, he led the signing of a currency swap agreement with Switzerland. As Deputy Governor in 2020, he oversaw the establishment of a currency swap with the United States in response to the COVID-19 pandemic, contributing to the stabilization of the foreign exchange market and strengthening policy cooperation with major central banks.Shin Hyun-song, Governor of the Bank of Korea, commended Yoo for his contributions to fulfilling the central bank's role amid various domestic and international shocks over the past three years.Shin remarked, "The past three years as Deputy Governor were a time when we could not let our guard down for a moment," noting that high domestic and external uncertainties have persisted, starting with real estate project financing instability at the end of 2023, followed by concerns over unwinding yen carry trades, the declaration of a state of emergency, last year's U.S. tariff shocks, and this year's outbreak of war in the Middle East.He added, "In such severe conditions, the Deputy Governor has been a great asset as an executive officer and a member of the Monetary Policy Committee, helping the Bank of Korea fulfill its fundamental role as a central bank."Reflecting on his 40 years at the Bank of Korea, Yoo expressed that the institution's policy capabilities have significantly improved. He stated, "Over the past 40 years, the Bank's economic analysis and forecasting abilities, digital payment capabilities, crisis response skills, and communication abilities have all greatly enhanced," adding that recently, the Bank has been building an international cooperation network as a member of global standard setters and leading international discussions.He concluded, "I am confident that the Bank of Korea will leverage its accumulated capabilities to gain greater trust and respect from the public, even in challenging environments."* This article has been translated by AI. 2026-08-20 16:20:00
  • Jaseng Medical Foundation Donates $17,000 in Relief Supplies to Residents Affected by Heavy Rain in Geoje
    Jaseng Medical Foundation Donates $17,000 in Relief Supplies to Residents Affected by Heavy Rain in Geoje The Jaseng Medical Foundation has provided approximately 20 million won (about $17,000) in emergency relief supplies to residents of Geoje, South Gyeongsang Province, who were affected by record heavy rainfall. On August 20, the foundation announced that it, in collaboration with the Salvation Army, delivered 700 sets of cosmetics and 500 blankets to over 1,200 residents impacted by the flooding in Geoje. This support aims to provide essential items such as hygiene products and bedding for residents who are continuing to live in evacuation shelters for an extended period. The foundation held a relief supply distribution ceremony on August 19 at Okpo Elementary School, which has been designated as a shelter for flood-affected residents. Park Byeong-mo, director of the Jaseng Medical Foundation, stated, "We will continue to stand with the community in times of disaster and hardship, and we will maintain our focus on helping affected residents return to their normal lives as soon as possible." Meanwhile, Jaseng Oriental Medicine Hospital held a ceremony on August 15, during the Liberation Day holiday, to unveil a memorial stone at the start of the Jeju Olle Trail Course 1 in Seongsan-eup, Seogwipo City. The Jeju Olle Trail Course 1, known as the 'Gwangbok-ittgil,' features a memorial stone honoring independence activists, a Taegeukgi stone, and native plants such as 'Hwanggeun.' This newly established trail is the first course in the nationwide 'Gwangbok-ittgil Project' promoted by Jaseng Oriental Medicine Hospital.* This article has been translated by AI. 2026-08-20 16:20:00