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Takaichi Reshuffles Cabinet, Retains Key Economic and Security Officials Japanese Prime Minister Sanae Takaichi conducted her first cabinet reshuffle on September 17, retaining key ministers responsible for economic and foreign security policies, including Finance Minister Satsuki Katayama, Minister of Growth Strategy Minoru Kiuchi, Foreign Minister Toshimitsu Motegi, and Defense Minister Shinjiro Koizumi. This decision reflects a preference for continuity in core policies over a major personnel overhaul, suggesting that Takaichi's administration will maintain its existing course of active fiscal policy and enhanced defense capabilities.According to the Nihon Keizai Shimbun (Nikkei), Chief Cabinet Secretary Minoru Kihara, Minister of Economy, Trade and Industry Ryosei Akazawa, and Minister of Economic Security Kim Onoda also retained their positions. Hiroshi Nakatsuka, former secretary-general of the Japan Innovation Party, was appointed as the Minister of Administrative Reform, marking the party's first cabinet entry since forming a coalition with the Liberal Democratic Party (LDP) last October.The retention of Katayama and Kiuchi is crucial for economic policy. Both have supported Takaichi's administration's commitment to 'responsible active fiscal policy' from their respective roles in finance and growth strategy. Nikkei reported that Kiuchi initially sought a different position but accepted Takaichi's request to stay, citing a lack of suitable alternatives. The decision to keep both ministers amid market concerns about active fiscal policy demonstrates Takaichi's strong commitment to this approach.The new cabinet's first challenge will be the reduction of the food consumption tax. The Japanese government plans to lower the food consumption tax rate from the current 8% to 1% for two years starting in April 2027. While this initiative requires an annual budget of 5 trillion yen, the means to secure this funding have not yet been outlined. Katayama, who will also oversee the related legislation, called it the 'cabinet's top priority,' but passing it in the extraordinary Diet session scheduled for early October remains uncertain. The ruling party lacks a majority in the House of Councillors, and Asahi Shimbun reports that gaining support from the opposition appears unlikely.Maintaining market confidence while continuing active fiscal policy is another challenge. Japan's long-term interest rates have risen to around 3% for the first time in nearly 30 years, and the budget requests for the 2027 fiscal year have ballooned to a total of 143 trillion yen. Kiuchi stated that this does not mean indiscriminate fiscal expansion and pledged to communicate with market participants to alleviate concerns. However, Asahi Shimbun noted that he has previously made comments that seemed to unsettle the bond market regarding the Bank of Japan's interest rate hikes. With further rate increases anticipated, managing the rising burden of government bond interest while securing growth investments remains a key task for him.In the foreign and trade sectors, existing leaders were also retained. Foreign Minister Motegi briefly engaged with the foreign ministers of China and Russia, whose relations with Japan have cooled, during the ASEAN-related foreign ministers' meeting in July. Asahi Shimbun characterized this as leveraging the connections he built during his previous tenure. Akazawa, the Minister of Economy, Trade and Industry, previously served as Japan's chief negotiator in U.S.-Japan tariff talks and led efforts to secure alternative oil and naphtha supplies during the Hormuz Strait crisis, earning praise for building a close relationship with the U.S. Secretary of Commerce.Koizumi continues to lead the revision of three key security documents, including the National Security Strategy, which form the foundation of Japan's foreign and security policy. He has been involved in amending the operational guidelines of Japan's arms export rules, allowing for the full export of lethal weapons. With Koizumi's retention, the trend toward strengthening defense capabilities and expanding arms exports is likely to continue.This cabinet reshuffle also appears to be strategically aimed at the upcoming LDP presidential election in the fall of 2027, which will effectively determine the next prime minister. Asahi Shimbun analyzed that Takaichi's decision to keep Motegi and Koizumi in key positions aims to prevent them from consolidating as a counterforce against her, following their competition in last year's presidential election.In contrast, Yoshimasa Hayashi, the former Minister of Internal Affairs, who received more votes than Takaichi in the first round of last year's LDP presidential election, was excluded from the cabinet. According to Asahi Shimbun, there have been concerns among Takaichi's inner circle that keeping him outside the cabinet could lead him to challenge her authority. Nikkei speculated that Hayashi, who has been cautious about the consumption tax cut and emphasizes dialogue with China, may pursue an independent path outside the cabinet as he prepares for the next presidential election.Meanwhile, there is controversy surrounding the appointments of Kazuo Yana and Yoshihiro Seki, both implicated in the LDP faction slush fund scandal that emerged in 2023. According to Yomiuri Shimbun, these are the first instances of lawmakers involved in the scandal being appointed to cabinet positions after the incident came to light. Opposition parties are expected to pursue this issue in the upcoming extraordinary Diet session in October.* This article has been translated by AI. 2026-09-17 17:44:10 -
Weather Forecast: Rain Expected in Jeju, Southern and Eastern Coasts with Highs of 30°C On Friday, September 18, rain is forecasted for Jeju, as well as various areas along the southern and eastern coasts, with daytime temperatures reaching up to 30 degrees Celsius. According to the Korea Meteorological Administration on September 17, the rain that began in Jeju will expand to the southern coast of South Jeolla Province, the southern eastern coast of North Gyeongsang Province, and the coastal areas of South Gyeongsang Province. Rain is also expected in the eastern coastal areas of Gangwon Province and mountainous regions starting in the afternoon. Jeju is expected to receive 50 to 60mm of rain over two days, with some mountainous areas possibly seeing more than 80mm. The southern coast of Busan, Ulsan, and South Gyeongsang Province is forecasted to receive 5 to 10mm, while the southern eastern coast of North Gyeongsang Province may see around 5mm. In areas experiencing rain, visibility may be reduced and roads could become slippery, raising concerns for traffic safety. Strong winds, with gusts reaching around 55 km/h, may occur in some inland areas. The morning low temperatures are expected to range from 14 to 21 degrees Celsius, while daytime highs will be between 24 and 30 degrees. The temperature distribution is forecasted to be 19 to 28 degrees in Seoul, 19 to 28 degrees in Incheon, 18 to 27 degrees in Daejeon, 19 to 28 degrees in Gwangju, 20 to 26 degrees in Daegu, 21 to 25 degrees in Busan, and 22 to 26 degrees in Jeju. Seoul and Incheon are expected to be mostly clear, but there is an 80% chance of rain in Gangneung in the afternoon. Both Busan and Ulsan have a 70% chance of rain throughout the day, and Jeju is also expected to see rain all day. Waves in the East and South Seas could reach heights of up to 3.5 meters. In the open sea, wave heights in the East, West, and South Seas are also expected to reach a maximum of 3.5 meters, necessitating caution against maritime safety incidents.* This article has been translated by AI. 2026-09-17 17:44:00 -
KG Mobility Platform Executives Purchase $300,000 in Company Shares KG Mobility Platform, which operates South Korea's largest direct-used car platform K Car, has executed a stock buyback worth approximately 4 billion won (about $300,000).The company announced on September 17 that four key executives, including CEO Jeong In-guk, purchased a total of 63,000 shares on the open market.In this stock purchase, CEO Jeong acquired 40,000 shares, while Park Ji-won, head of the rental car division, and Jeon Ho-il, head of marketing, each bought 10,000 shares. Hwang Jae-hyuk, head of the auction division, purchased 3,000 shares. The total investment amounts to about 4 billion won. Previously, CEO Jeong bought 10,000 shares for around 2.5 billion won in 2022.The company stated, "This purchase is intended to strengthen the executives' commitment to responsible management based on their confidence in the company's long-term growth potential and corporate value."KG Mobility Platform was established on August 31 as a family company of KG Group. It plans to enhance synergies with KG Group in key businesses, including used car buying and selling, rental cars, and auctions.CEO Jeong In-guk remarked, "This stock purchase demonstrates the executives' confidence in the company's growth potential and corporate value through action."* This article has been translated by AI. 2026-09-17 17:44:00 -
KOSPI Closes Slightly Lower Despite Hawkish Fed Signals and Foreign Selling Despite the U.S. Federal Reserve raising interest rates for the first time in over three years and hinting at further increases this year, the KOSPI index closed slightly lower. Foreign investors sold off more than 2 trillion won, yet the KOSPI managed to maintain its position above 6,700, showing resilience against the hawkish monetary policy.On September 17, the Korea Exchange reported that the KOSPI fell by 2.56 points (0.04%) to close at 6,715.41. The index opened at 6,779.02, up 61.05 points (0.91%) from the previous session, fluctuating around the 6,770 mark before reversing gains as the trading day ended.In the securities market, individual and institutional investors bought a net 483.3 billion won and 227.2 billion won, respectively. In contrast, foreign investors sold off 2.4153 trillion won.Among the top market capitalization stocks, performances were mixed. Samsung Electronics (-0.39%), SK Hynix (-0.80%), SK Square (-1.18%), Samsung Electro-Mechanics (-3.69%), LG Energy Solution (-0.54%), and Samsung Biologics (-0.92%) all saw declines. Conversely, Hyundai Motor (0.28%), KB Financial (1.41%), and Samsung C&T (0.57%) ended the day in positive territory.Lee Kyung-min, a researcher at Daishin Securities, noted, "The market impact was limited as the possibility of a rate hike had already been largely priced in, and the recent stabilization in international oil prices has contributed to a relatively favorable investment sentiment."The KOSDAQ index rose by 6.20 points (0.76%) to close at 822.18. It started the day at 820.16, up 4.18 points (0.51%), and continued to expand its gains.In the KOSDAQ market, individual and foreign investors sold a net 28.5 billion won and 33.1 billion won, respectively, while institutions were net buyers at 47.1 billion won.Among the top KOSDAQ stocks, Alteogen (-0.59%), EcoPro BM (-1.34%), Wonik IPS (-1.17%), IOTech (-1.18%), and Simtech (-1.91%) declined. In contrast, EcoPro (0.12%), JUSUNG Engineering (0.99%), Rainbow Robotics (1.18%), Rino Technology (0.76%), and Roboteers (0.32%) saw gains.* This article has been translated by AI. 2026-09-17 17:40:20 -
Constitutional Court Upholds Tax on E-Cigarette Liquid Volume The Constitutional Court has ruled that taxing e-cigarette liquid based on volume, regardless of nicotine content, does not violate the constitution. On September 17, the court unanimously upheld the provisions of the previous excise tax law that set tax rates for e-cigarette liquid, following a constitutional complaint filed by companies such as Haka Korea, which import and sell e-cigarette liquids. Previously, these companies argued that the nicotine used in their products was extracted from stems rather than tobacco leaves, claiming that their products should not be classified as tobacco under the Tobacco Business Act. This argument was based on the law prior to its amendment last year, which defined tobacco as products made from the leaves of the tobacco plant. However, tax authorities determined that the imported products contained nicotine liquid extracted from tobacco leaves, classifying them as tobacco and imposing either an excise tax or a tobacco consumption tax. The companies contended that it was unreasonable to impose taxes solely based on the volume of the liquid without considering nicotine concentration or content. They also argued that uniformly taxing products, even when they could not pass the tax onto consumers, infringed on their property rights, leading them to file a constitutional complaint after their request for a ruling on the constitutionality of the law was dismissed by the court. The Constitutional Court recognized the validity of the current taxation method, siding with tax authorities. The court stated, "The volume of nicotine liquid can be objectively verified and measured," and deemed it a "rational choice to ensure efficiency in tax administration and legal stability." The court further explained that applying tax standards corresponding to the final distribution and sales forms of each type of tobacco aligns with taxation principles and contributes to reducing harmful consumption through price increases, thereby promoting public health. Additionally, the court noted that using subjective factors, such as whether the tax burden is passed on to consumers, as a basis for taxation could undermine the uniformity and predictability of tax assessments, emphasizing that it is the responsibility of importers to verify whether their products fall under taxable items and to report accurately.* This article has been translated by AI. 2026-09-17 17:40:10 -
Ruling Party to Address Farmers' Concerns Over Land Survey on September 21 The Democratic Party has decided to develop supplementary measures in response to growing concerns among farmers regarding the government's land survey before the Chuseok holiday. This move is seen as an effort to soothe public sentiment amid declining approval ratings for the ruling party. The party's Agriculture, Forestry, and Fisheries Policy Coordination Committee announced on September 17 that it will hold a government-party meeting on September 21 at the National Assembly to review the progress of the land survey. Attendees will include Yoon Jun-byeong, the ruling party's secretary for the Agriculture, Food, Rural Affairs, and Fisheries Committee, and Minister of Agriculture, Food and Rural Affairs, Song Mi-ryung, who are expected to discuss the survey results and supplementary measures regarding land disposal and enforcement fines. The land survey was initiated following the passage of a revised land law in the National Assembly, which includes provisions for a comprehensive land survey and stricter land disposal orders. A preliminary survey conducted by the government in May identified 2.84 million parcels of land, or 27% of the total, as potentially violating land laws. Landowners who fail to comply with disposal orders without justifiable reasons will face enforcement fines amounting to 25% of the higher value between the appraised price and the publicly announced price. In this context, Kwon Chil-seung, the party's policy chief, stated during a policy coordination meeting at the National Assembly, "It is true that some farmers are experiencing inconvenience due to the land survey. I urge the government to make every effort to ensure that honest farmers and citizens do not suffer unnecessary harm during this process." Kwon further emphasized that the survey results should only be used to penalize clear cases of land speculation, while minor legal violations related to everyday land use should be addressed through guidance and institutional improvements. He called on the government to quickly establish measures to ensure the land survey is conducted in this manner. Additionally, he pledged that the government and ruling party would do their utmost to stabilize land prices through initiatives like land banks and land purchase programs. Meanwhile, in response to ongoing criticism from the opposition People Power Party regarding the land survey, Kwon described their claims as "distorted facts and absurd arguments." He pointed out that People Power Party leader Jang Dong-hyuk is inciting anxiety among farmers by suggesting that the government is labeling them as speculators and seizing their land. * This article has been translated by AI. 2026-09-17 17:40:00 -
National Growth Fund Expands with Enhanced Management, Approves 18.9 Trillion Won The National Growth Fund has approved a total of 18.9 trillion won in funding from January to September this year, as financial authorities establish a Risk Management Committee and a Post-Management Committee to enhance decision-making objectivity and transparency.On September 17, the Financial Services Commission held a meeting of the National Growth Fund's Fund Management Review Committee, where it approved this restructuring of the decision-making system. On the same day, it also approved five funding projects, including the Yawol Offshore Wind Power Project and the AI transformation project of D&Solutions, totaling about 1 trillion won.With this approval, the National Growth Fund has either approved or completed the formation of a total of 18.9 trillion won in funding by the end of September. Considering the indirect investment method scheduled for the fourth quarter, the Financial Services Commission anticipates achieving its goal of 30 trillion won in approvals and formations by the end of the year ahead of schedule.The proportion of regional support based on the approved amount has exceeded the policy target of 40%, reaching 44.7%. In terms of the number of projects, the Chungcheong region had the highest number with nine, followed by the Yeongnam region with eight and the Honam region with six. In terms of funding amount, the Honam region received the largest share at 5.17 trillion won, with 4.56 trillion won allocated to infrastructure projects such as power generation.The Financial Services Commission noted the need for more systematic risk management as the number of investments and the scale of support from the National Growth Fund have increased, leading to the establishment of separate committees.The Risk Management Committee will consist of staff from the National Growth Fund Secretariat and external experts. It will independently review financial risks as well as non-financial risks such as reputation, governance, legal issues, and community acceptance from the project discovery stage until it is presented to the Fund Management Review Committee. The review results will be provided to the Investment Review Committee and the Fund Management Review Committee.The Post-Management Committee will review the recovery methods after funding support, projects with concerns about defaults, and the need for early recovery. It will also advise on whether to execute the funds if project conditions change after approval. Both committees will begin operations in October, with the Post-Management Committee also reviewing projects approved before September.Among the new funding projects approved that day, the Yawol Offshore Wind Power Project will receive 130 billion won in project financing loans. The total project cost is 757 billion won, and it aims to establish a 104 MW offshore wind farm near Yeonggwang County, Jeollanam-do. The project will utilize 13 domestically developed 8 MW offshore wind turbines from Doosan Enerbility.D&Solutions' precision machine tool AX enhancement project will receive a total of 200 billion won in low-interest loans, including 150 billion won from the Advanced Strategic Industry Fund and up to 50 billion won in private funding. D&Solutions plans to establish a research and development center in Bucheon, Gyeonggi Province, to analyze data on vibrations and temperatures of machine tools using AI and enhance smart machine technology for automatic equipment calibration.Additionally, 25 billion won will be allocated for the expansion of Hwaseong's electric vehicle battery pack case production line, 12 billion won for the expansion of PKC's high-purity chlorine gas production facility for semiconductors, and 32 billion won for the establishment of a production line for the humanoid lightweight structural frame by Conex.* This article has been translated by AI. 2026-09-17 17:36:00 -
Negotiations on U.S. Investment Project Face Last-Minute Challenges Negotiations for the U.S. investment project are facing last-minute challenges. The report to the National Assembly, originally scheduled for today, has been postponed, which is likely to delay the signing of the memorandum of understanding (MOU) expected soon. The government is mobilizing diplomatic and trade channels for final adjustments.According to relevant departments on the 17th, the Ministry of Trade, Industry and Energy requested the National Assembly's Committee on Industry, Trade, and Small and Medium Enterprises and the Committee on Finance and Economy to postpone the report on U.S. investment that was scheduled for today. With the postponement of the National Assembly report, the signing and announcement of the MOU for the first U.S. investment project, initially anticipated for the 18th, has been indefinitely delayed.The key issues in the final negotiations revolve around the structure and investment conditions of the U.S. investment project. Among the $350 billion investment resulting from the Korea-U.S. tariff negotiations, the purpose of $200 billion remains unclear. The government maintains that the total investment amount under the strategic investment MOU will be $200 billion, with annual remittances not exceeding $20 billion.Discussions continue regarding specific projects, with the Texas gas combined cycle power plant being a strong candidate for the first U.S. investment project. However, issues surrounding power demand guarantees and participation of domestic companies remain contentious.In the nuclear power sector, the method of participation and the cooperation structure with Westinghouse have emerged as variables. The two countries are discussing the introduction of the Korean APR1400 for new large nuclear power plants being constructed in the U.S. While the government advocates for the introduction of the APR1400 for some new large nuclear plants, the U.S. side has expressed reservations.The pyroprocessing project for handling spent nuclear fuel has also been identified as a new variable. Pyroprocessing is a reprocessing technology that recovers uranium and transuranic elements from spent nuclear fuel through electrochemical reactions. However, if funding is allocated for this project, it could exceed the investment cap of $200 billion.How profits and losses will be shared is also a key issue. If the viability of some projects falls short of expectations, the extent of risk that the Korean side is willing to bear will directly impact future investment stability.As the two countries' agreement remains elusive, diplomatic channels have also joined the negotiations. Minister of Foreign Affairs Park Jin departed for the U.S. today and is scheduled to meet with U.S. Secretary of State Marco Rubio in Washington, D.C., on the 18th (local time). Minister of Industry Lee Chang-yang also recently visited the U.S. to engage in last-minute negotiations regarding U.S. investment with U.S. Secretary of Commerce Howard Rutnik.The government is expected to adjust investment conditions while maintaining the investment limit and considering the viability and risk of individual projects. Before his departure, Minister Park stated, "I understand that there are procedural issues domestically rather than disagreements between Korea and the U.S., and that the U.S. investment issue will come up in the overall process of reviewing bilateral relations."* This article has been translated by AI. 2026-09-17 17:36:00 -
Ryu Jin, Chairman of the Korea Economic Association, Calls for Stronger US-Korea Alliance The Korea-U.S. alliance, which began amid the turmoil of the Korean War in 1950, has expanded over the past 70 years into economic and technological realms. The Korean business community expressed gratitude and respect for veterans and U.S. forces stationed in Korea while reflecting on the significance of the alliance that extends beyond security.The Korea Economic Association (KEA) announced that it held a "Thanksgiving Dinner for the 250th Anniversary of the U.S. Founding" on the afternoon of September 17 at the FKI Tower Conference Center in Yeouido, Seoul.About 180 attendees included figures from both Korean and U.S. political and business sectors, as well as representatives from the U.S. military in Korea. Notable attendees from the Korean government included Prime Minister Han Seung-soo and Deputy Minister of Veterans Affairs Kang Yoon-jin, while the U.S. side was represented by Ambassador to Korea Michelle Steel and U.S. Forces Korea Commander Javier Brunson.Prominent business leaders present included Shin Dong-bin, Chairman of Lotte; Cho Won-tae, Chairman of Korean Air; Kim Yoon, Chairman of Samyang; Lee Jang-han, Chairman of Chong Kun Dang; and Kim Jung-soo, Chairman of Samyang Round Square, along with other executives from major groups such as Samsung, Hyundai, SK, and LG.Chairman Ryu Jin congratulated the U.S. on its 250th anniversary, stating, "This history is marked by a special bond with Korea." He expressed gratitude and respect for the veterans and U.S. forces, noting that the Incheon Landing around 1950 was a turning point that rekindled hope for the Korean people.He added, "The Korea-U.S. alliance is evolving beyond military security into an economic and technological partnership. I hope that our two countries will continue to write a brilliant new history together as the closest friends and allies."U.S. Forces Korea Commander Javier Brunson remarked, "The Korea-U.S. alliance has evolved from shared sacrifices on the battlefield to a global partnership encompassing defense, economy, technology, and culture."The dinner commenced with a toast proposed by Deputy Minister Kang Yoon-jin and Joseph Hilbert, Commander of the U.S. Eighth Army. Following the dinner, singer Insooni and the U.S. Eighth Army's jazz band performed together on stage. Insooni's father had previously served in the U.S. military while stationed in Korea.* This article has been translated by AI. 2026-09-17 17:32:10 -
Trade Commission Proposes Five-Year Extension of Anti-Dumping Measures on Chinese H-Beams The Trade Commission of the Ministry of Trade, Industry and Energy has recommended that the government maintain anti-dumping measures on Chinese H-beams for an additional five years. The commission also determined that a provisional anti-dumping duty of up to 27.96% should be imposed on Chinese rebar, which is used in the manufacturing of parts for automobiles and ships.During its 477th meeting on September 17, the Trade Commission reviewed and voted on the final determination of the anti-dumping investigation into Chinese H-beams and the preliminary determination regarding rebar.H-beams are structural steel products with an H-shaped cross-section, utilized in the construction of buildings, factories, ships, and civil engineering projects. This investigation marks the second sunset review to assess whether to terminate existing anti-dumping measures. Hyundai Steel and Dongkuk Steel requested the review in September 2022, and the investigation commenced in December of the same year.The Trade Commission concluded that ending the current measures could lead to a recurrence of dumping and harm to the domestic industry. Consequently, it plans to recommend to the Minister of Economy and Finance that price commitments be implemented for two companies, Laiwu Steel and Rizhao Steel, while extending anti-dumping duties of 28.23% to 32.72% on other suppliers for the next five years.Regarding Chinese rebar, the commission made a preliminary determination that the domestic industry has suffered substantial harm due to dumping. Rebar is used in the manufacturing of parts for automobiles, construction machinery, shipbuilding, bearings, and industrial machinery. SeAH Besteel and SeAH Changwon Special Steel applied for the investigation in February 2023, and the investigation began in May. To prevent further harm during the investigation period, the commission plans to recommend a provisional anti-dumping duty of 25.08% to 27.96% to the Minister of Economy and Finance.In a separate case involving patent infringement related to fire monitoring systems for secondary batteries, the commission ruled that the actions did not constitute unfair trade practices. It determined that the items in question did not fall within the scope of the applicant's patent rights, thus not qualifying as patent infringement for export or manufacturing purposes.During the meeting, the commission also reported the initiation of anti-dumping investigations into polyethylene terephthalate (PET) films from Taiwan, Thailand, and the United Arab Emirates, as well as ethyl acetate and fully drawn yarn (FDY) from China. PET films are used in packaging and electronic and optical materials, while ethyl acetate serves as a solvent for paints and printing inks. FDY is utilized in textiles and fabrics for both clothing and non-clothing applications.The Trade Commission plans to finalize its determinations on these cases in the first half of next year after conducting written surveys, public hearings, on-site investigations, and gathering opinions from domestic and international stakeholders.* This article has been translated by AI. 2026-09-17 17:32:10


