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  • KOSDAQ Companies Report 62% Increase in Operating Profit in First Half of 2026
    KOSDAQ Companies Report 62% Increase in Operating Profit in First Half of 2026 In the first half of 2026, KOSDAQ-listed companies saw their operating profit increase by over 60% compared to the same period last year, indicating a clear improvement in performance. The electronics and retail sectors led this profit growth, with net income nearly tripling and the number of profitable companies significantly rising. However, the debt ratio has increased, indicating a growing financial burden.According to the Korea Exchange's report on the '2026 Semiannual Settlement Results for KOSDAQ Companies,' the total revenue for 1,264 companies analyzed, excluding financial firms, those undergoing mergers and acquisitions, and companies that did not submit regular (semiannual) reports, reached 183.5753 trillion won, a 27.17% increase from the previous year. Operating profit rose to 9.4279 trillion won, up 61.54%, while net profit surged to 9.7069 trillion won, marking a 286.95% increase.The operating profit margin improved from 4.04% in the first half of last year to 5.14% this year, an increase of 1.09 percentage points. The net profit margin also rose from 1.74% to 5.29%, a 3.55 percentage point improvement. This suggests that profitability has improved alongside revenue growth.By sector, the increase in operating profit was particularly notable in the electronics and retail industries. Operating profit increased in 17 sectors, including retail and general services, while it decreased in six sectors, including transportation equipment and parts. Revenue also grew in 19 sectors, such as medical and precision instruments, while it declined in four sectors, including construction.The positive trend continued into the second quarter. On a consolidated basis, revenue for the second quarter reached 99.0116 trillion won, a 17.09% increase from the first quarter, while operating profit rose to 5.2951 trillion won, up 28.13%. Net profit also increased to 5.2991 trillion won, a 20.22% rise. The operating profit margin improved from 4.89% to 5.35%, an increase of 0.46 percentage points, and the net profit margin improved from 5.21% to 5.35%, a 0.14 percentage point increase.The number of profitable companies also increased. Among the 1,264 companies analyzed, 800 reported a net profit in the first half, accounting for 63.29% of the total. This is an increase of 121 companies compared to the 679 from the same period last year, representing a 9.57 percentage point rise. Of the profitable companies, 572 maintained profitability, while 228 transitioned from losses to profits. The number of loss-making companies decreased from 585 to 464. In the second quarter alone, the number of profitable companies rose to 810, up from 755 in the first quarter.Performance also improved for companies included in the KOSDAQ 150 index. The 129 companies in the KOSDAQ 150 reported consolidated revenue of 62.9483 trillion won in the first half, a 63.08% increase from the previous year. Operating profit rose to 4.4683 trillion won, up 58.42%, while net profit surged to 4.3028 trillion won, a 150.18% increase. The operating profit margin was 7.10%, significantly higher than the 4.11% for non-included companies, although it was a 0.21 percentage point decrease compared to the previous year.However, there are still concerns regarding financial stability. As of the end of the first half, total consolidated assets reached 539.1213 trillion won, a 12.48% increase from the end of last year, while total equity rose to 238.5059 trillion won, a 6.28% increase. In contrast, total liabilities increased by 17.94% to 300.6154 trillion won, outpacing the growth in equity. Consequently, the debt ratio rose from 113.58% at the end of last year to 126.04% at the end of the first half, an increase of 12.46 percentage points.Meanwhile, improvements were also observed in individual (separate) financial statements. For 1,587 comparable companies, revenue in the first half increased by 10.96% year-on-year, operating profit rose by 36.98%, and net profit surged by 240.23%. Notably, in the second quarter, revenue increased by 11.48%, operating profit by 42.92%, and net profit by 4.20% compared to the first quarter, with the number of profitable companies rising to 1,025, an increase of 48 from the previous quarter.* This article has been translated by AI. 2026-08-19 12:08:10
  • KOSPI Companies Report 254% Surge in Operating Profit in First Half of 2026
    KOSPI Companies Report 254% Surge in Operating Profit in First Half of 2026 In the first half of 2026, the consolidated operating profit of companies listed on the KOSPI surged by 254% compared to the same period last year. This significant increase was driven by improved conditions in the semiconductor sector, particularly benefiting the electronics industry, while financial firms, especially securities companies, also showed notable profit growth.According to the Korea Exchange's report on the '2026 Semiannual Settlement Results for December Settlement Corporations' released on August 19, the consolidated revenue of 634 companies analyzed, excluding newly established firms, those undergoing mergers and acquisitions, companies with adverse audit opinions, and financial firms, reached 2,001.26 trillion won, marking a 28.84% increase from the previous year. Operating profit soared to 388.15 trillion won, a 254.15% rise, while net profit climbed to 386.67 trillion won, up 333.30%. The operating profit margin improved from 7.06% to 19.41%, an increase of 12.35 percentage points, and the net profit margin rose from 5.75% to 19.33%, a 13.58 percentage point improvement.Notably, the performance improvement was not limited to major semiconductor companies. Excluding Samsung Electronics and SK Hynix, the consolidated revenue of December settlement corporations reached 1,562.86 trillion won, a 15.01% increase. Operating profit rose by 75.61% to 143.28 trillion won, while net profit increased by 119.68% to 133.56 trillion won, indicating that the positive trend was widespread.By sector, the electronics industry showed remarkable growth. The consolidated revenue for the electronics sector in the first half was 582.75 trillion won, an 80.47% increase year-on-year, with operating profit and net profit rising by 674.92% and 697.01%, respectively. The exchange reported that out of 20 sectors, 16, including electronics and IT services, saw revenue growth, while 14 sectors, including general services, experienced increases in operating profit. Conversely, six sectors, including entertainment and culture, as well as transportation and warehousing, reported declines in operating profit, highlighting disparities among industries.The financial sector also demonstrated clear performance improvements. Among 48 financial companies, excluding six that submitted individual financial statements, the remaining 42 reported a 36.07% increase in operating profit and a 32.82% rise in net profit compared to the previous year.Particularly, the securities industry experienced a substantial profit increase. Securities firms reported an operating profit of 9.21 trillion won in the first half, up 163.37% from 3.50 trillion won in the same period last year. Net profit also rose by 161% to 7.05 trillion won. Insurance companies saw their operating profit and net profit increase by 22.90% and 27.16%, respectively, reflecting strong performance. Meanwhile, financial holding companies reported increases of 20.89% in operating profit and 14.53% in net profit. In contrast, banks experienced declines in both operating profit and net profit, down 5.18% and 4.27%, respectively, indicating varying performance within the financial sector.Overall, the number of profitable companies also increased. Among the 634 companies analyzed, 519 reported a net profit in the first half, accounting for 81.86% of the total, up from 485 companies (76.50%) in the same period last year, an increase of 34 companies and 5.36 percentage points. Of these, 439 companies maintained profitability, while 80 transitioned from losses to profits. The number of loss-making companies decreased from 149 to 115.On a quarterly basis, the trend of improved performance continued. In the second quarter, consolidated revenue reached 1,075.28 trillion won, a 16.27% increase from the first quarter. Operating profit rose by 48.56% to 231.99 trillion won, and net profit increased by 73.70% to 245.40 trillion won. The operating profit margin improved from 16.89% to 21.58%, an increase of 4.69 percentage points. The number of companies reporting net profit in the second quarter also rose to 520, up from 501 in the first quarter.Financial soundness also improved. At the end of the first half, total consolidated assets reached 5,844.90 trillion won, a 15.77% increase from the end of the previous year, while total equity rose by 21.37% to 2,910.61 trillion won. During the same period, total liabilities increased by only 10.71% to 2,934.29 trillion won, resulting in a decrease in the debt ratio from 110.52% to 100.81%, a drop of 9.71 percentage points.Meanwhile, improvements were also observed in individual financial statements. The revenue of 720 companies analyzed in the first half reached 1,070.53 trillion won, a 34.47% increase from the previous year, while operating profit surged by 348.85% to 275.08 trillion won. Net profit also rose by 330.54% to 291.55 trillion won. The number of companies reporting net profit increased by 11 to 581, representing 80.69% of the total.* This article has been translated by AI. 2026-08-19 12:08:10
  • Government Increases Wage Guarantee for Workers Affected by Business Bankruptcy
    Government Increases Wage Guarantee for Workers Affected by Business Bankruptcy The scope of the bankruptcy compensation fund, which provides payments to workers who have not received wages due to business bankruptcies, will expand from three months to six months. Additionally, the loan limit for employers seeking to settle wage arrears will increase to a maximum of 1 billion won when collateral is provided.The Ministry of Employment and Labor announced on the 19th that the revised Wage Claim Guarantee Act and its enforcement rules will take effect on the 20th.The bankruptcy compensation fund is a system where the government pays a certain amount of unpaid wages and severance pay on behalf of employers who are unable to pay due to bankruptcy or rehabilitation proceedings. Previously, the fund covered the last three months of wages, suspension allowances, maternity leave pay, and the last three years of severance pay.The revised law expands the coverage for wages and suspension allowances to the last six months, while maintaining the three-year limit for severance pay. As a result, the total cap on bankruptcy compensation that a single worker can receive will increase from 21 million won to 31.5 million won. However, the actual payment amount will be subject to age and monthly limits.For example, if a 35-year-old worker with a monthly wage of 3.5 million won experiences a total of 17.5 million won in unpaid wages over the last five months, under the previous system, they would only receive up to 9.3 million won, applying the age-based monthly limit of 3.1 million won for the last three months. Under the revised system, they would be eligible for 15.5 million won, applying the monthly limit over the five months.The loan limit for employers seeking to settle unpaid wages will also be increased. The limit for general loans per employer will rise from 150 million won to 200 million won, and the support limit per worker will increase from 15 million won to 20 million won.A special loan program has also been introduced for employers who have experienced large-scale wage arrears exceeding 200 million won in the last three months. If the employer provides real estate as collateral worth at least 120% of the loan amount requested, they can borrow up to 1 billion won. However, they must meet the requirement that three years have passed since the last special loan confirmation notice was received.The loan funds will be deposited directly into the personal accounts of the affected workers, bypassing the employers. The interest rates are set at 2.2% for secured loans and 3.7% for credit and joint guarantee loans.Eligible businesses must be covered by industrial accident insurance and have been operating for at least six months. Businesses that are closed or have registered delinquency information are excluded from the loan program. Workers must have been continuously employed at the business for at least six months. Former employees are eligible if they worked for at least six months and left within one year prior to the loan confirmation application date.Minister of Employment and Labor Kim Young-hoon stated, "While we will respond sternly to employers who fail to pay wages, we have expanded the bankruptcy compensation fund and the loan program for settling wage arrears to protect affected workers. We will strengthen government support to help restore the disrupted lives of unpaid workers as quickly as possible."* This article has been translated by AI. 2026-08-19 12:04:20
  • Health Ministry to Transfer National University Hospitals on August 20
    Health Ministry to Transfer National University Hospitals on August 20 Starting August 20, the oversight of national university hospitals and national university dental hospitals will shift from the Ministry of Education to the Ministry of Health and Welfare. The Health Ministry plans to designate national university hospitals as the 'final responsible entities' for regional healthcare, aiming to develop them into key hospitals for national balanced development through significant financial investment and regulatory relaxation.Transfer After 21 Years: Enhancing Critical and Essential Medical CapabilitiesThe Health Ministry announced on August 19 that the revised National University Hospital Installation Act and National University Dental Hospital Installation Act will take effect on the 20th, consolidating the oversight of these hospitals under the Health Ministry. This transfer, discussed since the Participatory Government era, marks a culmination of 21 years of efforts.With this transfer, the Health Ministry aims to comprehensively enhance the four main functions of national university hospitals: clinical services, research, education, and public policy, positioning them as key hospitals for national balanced development.In the clinical sector, the ministry plans to significantly increase the capacity for critical and essential medical care by securing essential medical personnel and expanding compensation for long-term staff. Specifically, it intends to focus on recruiting over 460 core faculty members in high-demand specialties such as obstetrics, pediatrics, and thoracic surgery over the next four years. This targeted support will consider the medical needs of the '5 regions and 3 specialties' and the strengths of individual hospitals, ensuring that local residents can receive top-tier treatment without traveling to the capital region.Building Research and Education Networks and Strengthening Public Policy RoleThere will also be substantial investments in infrastructure to enhance research capabilities. The ministry plans to connect clinical data across all national university hospitals and the National Cancer Center, aiming to establish a data system comparable to that of large hospitals in the capital region. This will facilitate participation in the development of new drugs and advanced treatment technologies, supporting specialized R&D linked to regional strategic industries such as biotechnology and AI, thereby fostering a local innovation ecosystem.Furthermore, the educational infrastructure for training future medical professionals will undergo significant improvements. A 'Clinical Training Center' will be established at all national university hospitals to provide advanced procedural training based on simulation practice, and a new 'Regional Physician Support Center' will be created to systematically support all stages from students to specialists.The role of national university hospitals as a public policy 'control tower' for coordinating local medical services will also be strengthened. The Health Ministry plans to enhance dedicated organizational staffing and elevate the position of national university hospital directors to co-chair the essential medical committee at the city and provincial levels, entrusting them with a central role in addressing local essential medical issues.Removing Constraints for Growth: Moving to Dissolve Other Public Institution DesignationsInstitutional support will also be initiated. To flexibly secure excellent medical personnel and maximize hospital operational autonomy, the ministry will proactively pursue the 'dissolution of other public institution designations' in consultation with relevant departments.To efficiently oversee this initiative, the Health Ministry established the 'National University Hospital Policy Division' on July 21, which will be responsible for developing long-term strategies and comprehensively promoting financial investments and institutional improvements to enhance clinical, research, education, and public policy functions.Lee Hyung-hoon, the Second Vice Minister of Health and Welfare, emphasized, 'This transfer is not merely a change in the managing department of national university hospitals; it marks a new starting point for the Health Ministry, a specialized health and medical department, to properly develop national university hospitals as key institutions for the 5 regions and 3 specialties.' The government also pledged to responsibly support national university hospitals in their role as the final care providers for critical and essential medical services, nurturing excellent medical professionals and leading future medical technologies.* This article has been translated by AI. 2026-08-19 12:04:20
  • KDI Raises South Koreas Economic Growth Forecast to 3.2% Driven by Semiconductor Boom
    KDI Raises South Korea's Economic Growth Forecast to 3.2% Driven by Semiconductor Boom The Korea Development Institute (KDI) has significantly raised its economic growth forecast for South Korea this year from 2.5% to 3.2%. Of this increase, 0.6 percentage points are attributed to the direct and indirect effects of the semiconductor boom, including exports and facility investments.In its revised economic outlook released on August 19, KDI projected that the country's gross domestic product (GDP) would grow by 3.2% this year and by 2.2% in 2027. The growth forecast for next year was also raised by 0.5 percentage points from 1.7% in May.KDI's growth forecast for this year is 0.2 percentage points higher than the government's 3.0% target announced last month. It is also 0.6 percentage points above the Bank of Korea's forecast of 2.6% and aligns with the average forecast of 3.2% from eight major investment banks compiled by the International Financial Center at the end of last month.Additionally, Moody's, an international credit rating agency, projected South Korea's economic growth at 3.5% for this year, suggesting that the semiconductor boom will continue at least until mid-next year.KDI estimates that approximately 0.6 percentage points of the 0.7 percentage point increase in the growth forecast is due to the semiconductor and related industries. This figure reflects the increase in semiconductor exports, facility investments for production expansion, and consumption effects from rising incomes, indicating that semiconductors account for more than half of the overall growth.In the second quarter of this year, GDP grew by 0.6% compared to the previous quarter and by 3.7% year-on-year, driven by increases in both exports and domestic demand. The surge in semiconductor export prices improved trade conditions, and the growth rate of gross domestic income (GDI) significantly outpaced that of GDP.KDI's outlook assumes that the global memory semiconductor market will grow faster than initially expected. The World Semiconductor Trade Statistics (WSTS) forecasts that memory semiconductor sales will increase by 302.0% this year and by 36.0% next year.This year, KDI has revised its export growth forecast to 8.7%, an increase of 4.1 percentage points from previous estimates. Exports of goods, particularly in information and communication technology (ICT) sectors like semiconductors, are expected to rise by 8.6%.Facility investment growth has been raised from 3.3% to 7.9%, an increase of 4.6 percentage points. The forecast for facility investment in 2027 has also been adjusted upward from 2.4% to 7.0%.Due to rising semiconductor prices and export volumes, this year's current account surplus is projected to reach $359.7 billion, an increase of $120.7 billion from previous estimates. The current account surplus for next year has also been raised from $213.7 billion to $356.2 billion, an increase of $142.5 billion.However, the effects of the government's three mega-projects—semiconductors, AI data centers, and physical AI—are not included in this forecast.Private consumption is expected to grow by 2.3% this year. Although real total income has increased significantly, the concentration of income growth in semiconductor-related companies and sectors, along with slow improvements in real wages and employment, has limited the upward revision to just 0.1 percentage points.Construction investment is projected to increase by only 0.1% due to a downturn in the local housing market and rising construction costs. The increase in the number of employed persons has been revised down from 170,000 to 110,000, a reduction of 60,000. The forecast for consumer price inflation remains at 2.7%.Kim Mi-ru, head of KDI's Macroeconomic and Financial Policy Research Division, stated, “While we are seeing high growth driven by the semiconductor boom, the benefits have not yet sufficiently spread to the incomes of many households, such as private consumption and employment.”KDI has identified several downside risks, including a slowdown in global AI investment demand, intensified competition with other producing countries, U.S. tariff policies, and geopolitical conflicts in the Middle East. As reliance on semiconductors increases, any unexpected shifts in the market could lead to larger adjustments in growth forecasts than usual.* This article has been translated by AI. 2026-08-19 12:04:20
  • Semiconductor and Automotive Industries Drive Manufacturing Growth in Q2
    Semiconductor and Automotive Industries Drive Manufacturing Growth in Q2 Strong performance in the semiconductor and automotive sectors has led to an increase in overall manufacturing output in the second quarter, particularly in Chungbuk and Gwangju. Meanwhile, service sector production grew in 16 regions, excluding Jeju, although the employment rate showed a decline compared to the previous year.According to the National Data Agency's report on regional economic trends for the second quarter of 2026, national manufacturing output (2020=100) reached 117.6, marking a 2.0% increase from the same period last year. Although the growth rate decreased by 0.6 percentage points from the previous quarter, it has maintained a 2% increase for two consecutive quarters.Chungbuk (27.8%), Gwangju (9.1%), and Daegu (5.7%) were among the eight regions that contributed significantly to the overall figures. In contrast, Jeonnam (-9.2%), Seoul (-5.7%), and Daejeon (-5.3%) experienced declines in manufacturing output compared to a year ago. A representative from the agency noted, "The production of semiconductors, electronic components, and medical and precision optics has positively impacted overall manufacturing growth, while Jeonnam and Seoul saw decreases in chemical products and clothing and fur production."Service sector production (125.0) increased by 4.5% year-on-year, with all regions except Jeju showing growth. Seoul recorded the highest increase at 7.5%, driven by growth in finance and insurance (21.6%), wholesale and retail (3.9%), and professional, scientific, and technical services (6.4%).National retail sales (104.4) rose by 2.4% compared to the previous year, primarily due to increases in non-store retail and department stores. Notable growth was seen in Seoul (3.8%), Daegu (3.5%), and Busan (3.4%), while eight regions, including Daejeon (-5.1%), Gyeongnam (-2.7%), and Jeonbuk (-2.4%), reported declines in retail sales.Due to ongoing high oil prices influenced by the Middle East conflict, consumer prices (119.8) increased by 3.0% compared to the second quarter of last year. All regions experienced price increases, with the highest rises recorded in Gyeongbuk, Gyeongnam, and Jeonbuk, each up by 3.4%.Exports, bolstered by strong semiconductor sales, reached $275.51 billion, an increase of $10.064 billion compared to the same period last year. All regions except Gyeongnam reported growth in exports.Particularly, Gyeonggi ($50.75 billion), Chungnam ($34.49 billion), and Ulsan ($3.95 billion) saw increases in exports of memory semiconductors and diesel fuel, driving overall export growth. Gyeongnam's exports decreased by $520 million year-on-year, attributed to declines in other heavy industrial products and general machinery.The construction sector continued its upward trend for the second consecutive quarter, focusing on factories, warehouses, and office buildings. In the second quarter, construction orders totaled 1,084.7 trillion won, an increase of 10.8 trillion won from the previous year. Gyeonggi (7.9 trillion won), Seoul (3.5 trillion won), and Chungbuk (1.6 trillion won) saw improvements in factory production and exports, contributing to overall positive figures.Despite increases in production and exports, the employment rate did not rise. The national employment rate stands at 63.2%, down 0.3 percentage points from the same period last year. Nine regions, including Gyeonggi (-1.1 percentage points), Gyeongbuk (-1.1 percentage points), and Chungbuk (-0.6 percentage points), reported declines in employment rates compared to the previous year.A representative from the agency stated, "The decrease in employment rates among those in their 20s and those aged 70 and older appears to have contributed to the overall decline in the employment rate."* This article has been translated by AI. 2026-08-19 12:04:10
  • Manufacturing Employment Declines for 14th Month, with Semiconductor and Shipbuilding Sectors Seeing Growth
    Manufacturing Employment Declines for 14th Month, with Semiconductor and Shipbuilding Sectors Seeing Growth As the decline in manufacturing employment continues, a narrow recovery is expected in the second half of this year, primarily driven by the semiconductor and shipbuilding sectors. The benefits of increased investment in artificial intelligence (AI) and strong export and order performance are concentrated in certain industries, making widespread recovery in manufacturing unlikely.According to the "2026 Second Half Employment Outlook for Major Industries" report released on August 19 by the Korea Employment Information Service and the Korea Industrial Technology Promotion Agency, employment in the semiconductor and shipbuilding sectors is projected to increase compared to the second half of last year, while textile jobs are expected to decline.Six other sectors, including machinery, electronics and displays, steel, automotive, metal processing, and petrochemicals, are anticipated to maintain similar employment levels to the previous year. This forecast is based on data from employment insurance subscribers.By sector, the semiconductor industry is expected to see the highest employment growth rate at 5.1%, with approximately 8,000 new jobs anticipated compared to the second half of last year. Analysts attribute this growth to the booming high-value memory market driven by AI market expansion and increased exports.Employment in the shipbuilding sector is also projected to rise by 2.7% (3,000 jobs) compared to the previous year. The continued delivery of high-value vessels, such as LNG carriers and large container ships, is expected to boost both exports and employment. As of May, the domestic shipbuilding industry's order backlog stood at 38.5 million CGT, securing more than three years' worth of work.Excluding semiconductors and shipbuilding, no significant recovery in employment is expected in other sectors. While machinery is projected to see a slight increase of 0.8% in jobs compared to the second half of last year, sectors such as electronics and displays (-0.1%), steel (-0.3%), automotive (-0.5%), metal processing (-0.3%), and petrochemicals (-0.6%) are expected to experience slight declines.The Employment Information Service classifies employment changes as 'increase' if the growth rate is above 1.5% compared to the previous year, 'maintain' if it is between -1.5% and 1.5%, and 'decrease' if it is below -1.5%. Accordingly, the six sectors, including machinery, which are expected to see slight increases, are all classified as 'maintain.'Particularly, the textile industry is expected to continue facing employment challenges in the second half of the year. Textile employment is projected to decrease by 3.5% (5,000 jobs) compared to the previous year, making it the only sector classified as 'decrease' among the nine industries.The employment growth rate in the textile sector has recorded declines of -3.7% in the first half of 2024, -3.6% in the second half of 2024, and -3.6% in both halves of last year. In the first half of this year, the workforce decreased by approximately 3.0% (4,000 jobs) compared to the previous year, totaling around 142,000 workers.While there is potential for domestic recovery due to increased production of advanced materials and improved consumer sentiment, challenges such as supply chain shocks from the Middle East, U.S. trade regulations, and competition from low-priced Chinese products are expected to hinder recovery in exports and employment.This disparity among sectors is also reflected in recent manufacturing employment trends. According to the Ministry of Employment and Labor's "July 2026 Employment Administrative Statistics on Labor Market Trends," the number of manufacturing employment insurance subscribers decreased by 3,000 compared to the same month last year, marking a 14-month consecutive decline.Specifically, the number of subscribers in the electronics and communications manufacturing sector increased by 4,600, with semiconductors alone seeing a rise of 6,200 (5.9%). Special-purpose machinery, which includes semiconductor equipment, also added 1,900 jobs. The other transportation equipment sector, which includes shipbuilding, saw the largest increase in manufacturing, with 6,400 new jobs. The ship and boat building sector increased by 4,800 jobs, marking 44 consecutive months of growth.In contrast, the automotive manufacturing sector saw a decrease of 2,400 jobs, expanding its decline since March. The chemical products sector lost 2,900 jobs, while electrical equipment saw a reduction of 2,000 jobs, marking 15 consecutive months of decline.Looking ahead, while the semiconductor and shipbuilding sectors are expected to benefit from AI investment and strong exports, sectors such as automotive, petrochemicals, and metal processing are likely to stagnate or see slight declines, indicating that the recovery in manufacturing employment will continue to be concentrated in a few industries.A government official commented, "Some sectors with strong exports are doing relatively well, but the rest are still struggling, leading to a polarized situation."* This article has been translated by AI. 2026-08-19 12:04:10
  • Household Debt Surpasses 2,000 Trillion Won, Reaches All-Time High
    Household Debt Surpasses 2,000 Trillion Won, Reaches All-Time High In the second quarter of this year, household debt in South Korea surpassed 2,000 trillion won, setting a new record. The increase was the largest since the third quarter of 2021.According to provisional statistics on household credit released by the Bank of Korea on August 19, the household credit balance reached 1,979.8 trillion won at the end of June. This is the largest amount recorded since the Bank began publishing related statistics in the fourth quarter of 2002.Household credit is a comprehensive measure of household debt, including loans from banks, insurance companies, lending institutions, and public financial institutions, as well as money spent on credit cards.Despite a contraction of 32 trillion won in the first quarter of 2024 due to monetary tightening, household credit rebounded in the second quarter, marking nine consecutive quarters of growth. The increase in the second quarter was 25.9 trillion won, the largest since the third quarter of 2021, which saw an increase of 34.8 trillion won.Excluding sales credit (credit card payments), the household loan balance at the end of the second quarter was 1,891.3 trillion won, an increase of 24.9 trillion won from the previous quarter. This increase was larger compared to the first quarter of this year, which saw an increase of 13.4 trillion won.Among household loan products, housing-related loans amounted to 1,190.8 trillion won, increasing by 12.2 trillion won. This increase was significantly larger than the previous quarter's increase of 8.1 trillion won, driven by a rise in housing transaction volumes. The balance of other loans, including credit loans, reached 700.5 trillion won, increasing by 12.8 trillion won, marking the largest increase since the third quarter of 2021.Kim Sung-jun, head of the Bank of Korea's Financial Statistics Team, stated, "Household credit saw a significant increase in the second quarter, with housing-related loans and other loans each contributing about half to the growth." He explained that the rise in housing-related loans was influenced by increased housing transactions ahead of the expiration of the capital gains tax exemption and demand for loans related to pre-sold homes.He added, "The substantial increase in other loans was due to a rise in credit loans from deposit banks and securities firms, as the stock market performed well during the quarter, significantly impacting demand for stock investments."Kim noted that the increase in other loans in the second quarter was unusual compared to past trends, and he anticipates that as the stock market faces adjustments and uncertainty rises in the third quarter, the use of credit loans will stabilize rather than increase significantly as seen in the second quarter.In terms of lending sources, household loans from deposit banks (with a balance of 1,022.9 trillion won) increased by 13.3 trillion won over three months. The growth in housing-related loans and the turnaround in other loans contributed to the increase in deposit bank lending.Household loans from non-bank deposit-taking institutions, such as mutual finance, savings banks, and credit cooperatives (with a balance of 328.1 trillion won), increased by 3.1 trillion won, as the growth in housing-related loans slowed compared to the previous quarter. 2026-08-19 12:04:10
  • Efforts Underway to Revive Breeding of Endangered Black Stork in Korea
    Efforts Underway to Revive Breeding of Endangered Black Stork in Korea A restoration project is underway to reintroduce the endangered black stork, which has not bred in South Korea for 60 years, by bringing in wild specimens from Mongolia. The government plans to complete the necessary scientific assessments for the introduction of wild individuals by the end of this year, with the aim of establishing a foundation for domestic breeding trials as early as the first half of next year.The National Institute of Ecology, under the Ministry of Climate Energy and Environment, announced on August 19 that it is pursuing international cooperation with the Wildlife Science Conservation Center (WSCC) in Mongolia to facilitate the introduction of black stork populations into South Korea.The black stork is a large bird, measuring 90 to 100 centimeters in length, and is classified as an endangered species in South Korea. While it can be observed in winter along the Nakdong River, Cheonsu Bay, and Jeju Island, fewer than 20 individuals are known to winter in the country.Notably, the domestic breeding population has effectively disappeared. There is a record of breeding in Gasang Village, Andong, in 1965, but no breeding cases have been confirmed in South Korea since 1968.In June, the National Institute of Ecology and the WSCC signed a memorandum of understanding in Ulaanbaatar, Mongolia, agreeing to conduct joint research over the next five years on the conservation, restoration, and reintroduction of endangered wildlife, including the black stork.Following the agreement, the two organizations investigated the breeding status of black storks in Mongolia's Khentii Province from late June to late July. They identified a total of seven nests, four of which contained ten young black storks. Based on this, the National Institute of Ecology assessed that the local population's breeding status is stable.Currently, a risk assessment is also underway to evaluate whether the capture or international trade of wild individuals would negatively impact the survival of natural populations. This procedure is required under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) before any introduction of individuals.The National Institute of Ecology plans to complete the risk assessment by the second half of this year and then proceed with domestic quarantine and international permit procedures sequentially. Based on the assessment results, they aim to establish a foundation for the introduction of black storks and domestic breeding trials in the first half of next year.The restoration process will not only involve bringing in individuals but also conducting joint efforts with Mongolia to investigate the distribution and breeding status of wild populations, manage genetic diversity, and develop breeding techniques.Lee Chang-seok, director of the National Institute of Ecology, stated, "The restoration of the black stork is not just about returning a single species; it is a process of restoring the Northeast Asian ecosystem based on scientific evidence and international cooperation. We will work closely with Mongolia to prepare for the day when the black stork can once again soar in our skies."* This article has been translated by AI. 2026-08-19 12:04:00
  • Miraculous Recovery of Students at Risk of Dropping Out in Seoul
    Miraculous Recovery of Students at Risk of Dropping Out in Seoul Student F from School E was on the brink of dropping out due to severe emotional difficulties, including frequent absences and self-harm. However, proactive early detection by the education office led to intervention from the local student-customized integrated support center and specialized medical institutions, resulting in a dramatic turnaround. Now receiving free professional treatment and psychological counseling weekly, Student F has regained emotional stability and continues a positive school life without family accompaniment. Similarly, Student B from School A, who exhibited disruptive behavior and frequent classroom exits due to ADHD and a lack of family support, also experienced a miraculous recovery. At the school's request, a 'Student Customized Integrated Support Council' was formed, involving seven agencies, including the support center, educational welfare center, and police. This led to prompt emotional and behavioral therapy and parenting coaching, helping Student B adapt to school. Student D from School C, who had shown extreme refusal to participate in classes and exhibited violent behavior, overcame his crisis after an emergency referral through the 'Sen Call' service, receiving dedicated personnel, psychological assessments, and integrated support through cognitive and play therapy. To assist students facing complex crises, the Seoul Metropolitan Office of Education has successfully implemented a 'one-stop student-customized integrated support' system, yielding visible results. In the first half of this year, the number of students receiving such tailored support surged 4.7 times compared to the same period last year, establishing a robust safety net in schools. According to the Seoul Metropolitan Office of Education, a total of 528 students received integrated support for complex difficulties through the regional student-customized integrated support center from March to June this year. This figure represents a significant increase of 4.7 times compared to the same period last year, attributed to the stable establishment of the one-stop system following the full implementation of the Student Customized Integrated Support Act in March. The largest share of support was in the 'psychological and emotional' category, accounting for 41% (380 students). This was followed by 'family support and others' at 28% (256 students), 'basic academic skills' at 10% (93 students), 'dropout prevention' at 8% (72 students), and 'economic support' at 7% (68 students). Most students received simultaneous customized support across two or more areas based on their individual crisis situations. The success of this initiative is attributed not only to the active utilization of direct and commissioned agencies such as educational welfare centers, Wee Centers, and learning diagnostic growth centers but also to the establishment of a dense cooperative network with local relevant institutions, including youth counseling and welfare centers, mental health centers, and family centers. Notably, the newly introduced 'Sen Call' service has significantly improved accessibility in schools. This location-based telephone service automatically connects callers to the appropriate regional center, enabling quicker referrals in urgent situations where schools cannot resolve issues independently. In fact, 64.4% of all referrals were made by phone, with over half utilizing the 'Sen Call' service. Superintendent Jeong Geun-sik emphasized, "The one-stop support system at the regional student-customized integrated support center allows us to quickly identify and assist students facing complex difficulties. We will continue to build a more comprehensive student-customized integrated support system to ensure that no student is left behind in learning and growth."* This article has been translated by AI. 2026-08-19 12:04:00