AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • Bank of Korea Resumes Interest Rate Hikes Amid Economic Recovery
    Bank of Korea Resumes Interest Rate Hikes Amid Economic Recovery The Bank of Korea has resumed its interest rate hike cycle for the first time in three and a half years, drawing attention to the magnitude and pace of potential further increases. Unlike previous periods of consecutive hikes, this time, strong exports, particularly in semiconductors, and a recovering domestic economy suggest a gradual approach to raising rates while monitoring economic and financial stability.On August 18, the Bank reported that the base rate was raised by 0.25 percentage points from 2.50% to 2.75%. This marked the first rate increase since January 2023. The Monetary Policy Committee indicated the need to maintain a 'hiking trend.' Recently, Deputy Governor Yoo Sang-dae stated, "We have entered a new interest rate hike cycle," leaving the door open for additional increases.The key question is whether this hike cycle will lead to back-to-back increases like in the past. The Bank has previously raised rates consecutively, including two hikes in July and August 2007 and three hikes from November 2021 to January 2022. Following that, rates were rapidly increased from April 2022 to January 2023. Many view the increases since November 2021 as a continuation of the tightening cycle that began after the COVID-19 pandemic.However, the circumstances necessitating rate hikes now differ from those in the past. Previously, the need to address financial and price imbalances was urgent due to soaring housing prices, rising household debt, and inflation driven by low interest rates and increased liquidity. In particular, from 2021 to 2023, inflationary pressures intensified due to the liquidity released after the pandemic, supply chain disruptions, and rising raw material costs.In contrast, while growth supports the current rate hike, the urgency surrounding inflation and financial stability is considered relatively lower than before. Exports, particularly in semiconductors, are showing solid performance, and there are signs of recovery in domestic consumption. Although there is room to raise rates amid ongoing economic recovery, the situation is not as pressing as it was previously, where immediate tightening was necessary to control inflation and household debt.As a result, the market anticipates that the Bank will likely assess the economic situation after the initial hike before deciding on further increases. October is being discussed as the next potential adjustment period. Rather than implementing an additional hike in August, the Bank may observe the financial stability indicators, including inflation, household loans, housing prices, and exchange rates, before considering a hike in October.However, the extent to which the rate hike cycle will continue remains uncertain. Market forecasts suggest that the base rate could rise to 3.00% by the end of this year. If economic, inflation, and financial stability conditions continue to warrant rate increases, additional hikes could extend into the first half of next year, with the final rate potentially reaching between 3.25% and 3.50%.Yu Jin Investment & Securities has predicted that the base rate will remain unchanged in August. Researcher Kim Ji-na noted that while the rationale for rate hikes exists due to growth, inflation, and financial stability, "the situation has not deteriorated to the point where consecutive hikes are necessary." She pointed out that July's inflation showed a slight downward trend, and the won-dollar exchange rate has decreased to around 1,410 won, indicating that there is no need to rush into a rate hike in August.Kim added, "By observing the effects of the July hike and maintaining a hawkish communication stance, we can achieve a certain level of tightening effect. Therefore, unless we are in a crisis situation, consecutive hikes may be less effective. We expect an August hold and a strengthening of hawkish guidance."* This article has been translated by AI. 2026-08-18 17:04:10
  • Interest Rate Hikes Impact Borrowers, Depositors, and Asset Prices
    Interest Rate Hikes Impact Borrowers, Depositors, and Asset Prices As the Bank of Korea begins its cycle of interest rate hikes, attention is turning to the impact on household interest burdens and the asset market. If rates continue to rise, borrowers will face increased costs, while deposit rates are expected to climb. However, asset prices in stocks and real estate may remain elevated depending on economic conditions and supply-demand dynamics.According to financial sources, the Bank of Korea will hold a monetary policy committee meeting on the 27th to decide whether to adjust the current base rate of 2.75%. Last month, the bank raised the rate from 2.50% to 2.75%, an increase of 0.25 percentage points. The market anticipates the possibility of one to two additional rate hikes in the remaining monetary policy meetings this year.During a period of rising base rates, households typically feel the changes first in loan and deposit interest rates. Generally, when the base rate increases, market rates rise, putting upward pressure on bank lending and deposit rates. However, the actual impact varies by product and depends on the reference rates and banks' funding conditions.Borrowers with variable-rate mortgages or credit loans will feel the effects of rising rates more quickly. As loan rates increase, existing borrowers will see their interest burdens grow, while the borrowing capacity of new borrowers will decrease.Conversely, rising rates will positively affect deposit and savings rates. As banks increase their deposit rates, interest earnings will rise, encouraging savings. However, the extent to which the base rate increase is reflected in deposit rates may vary by bank and product.Higher interest rates also affect consumption and investment. As the burden of loan principal and interest repayments increases, households' disposable income decreases, and companies may delay investments due to higher financing costs. A slowdown in consumption and investment can lead to reduced inflationary pressures over time.Typically, rising interest rates exert downward pressure on asset markets. Higher rates tend to dampen investment demand fueled by loans. However, this time, the simultaneous effects of economic recovery and supply-demand imbalances suggest that rising rates may not immediately lead to falling asset prices.In particular, while rising loan rates may reduce housing purchasing power, factors such as supply and demand, income, and buyer sentiment also play significant roles. If these factors remain strong, home prices could maintain their current levels or even rise further despite higher rates.Interest rate hikes also influence exchange rates and inflation. As domestic rates rise, the attractiveness of investing in won-denominated assets increases, contributing to a stronger won, which can lower import prices and ease inflationary pressures. However, exchange rates are affected by various factors, including U.S. monetary policy and global dollar flows.Kim Sang-bong, a professor of economics at Hansung University, stated, "Generally, rising interest rates exert downward pressure on asset prices, but currently, other factors such as economic conditions and inflation are having a more significant impact, leading to stable or rising asset prices. He added, "While rising rates can dampen consumption, the effects are more pronounced for households with fewer assets or higher debt levels. In the future, interest rate decisions should consider the overall economic situation, including employment, growth, and inflation."* This article has been translated by AI. 2026-08-18 17:04:10
  • Banks to Allocate 7.5 Trillion Won in Housing Loans Amid Increased Lending Capacity
    Banks to Allocate 7.5 Trillion Won in Housing Loans Amid Increased Lending Capacity The target for the growth rate of household loans has doubled, allowing for an annual increase of approximately 30 trillion won. However, immediate normalization of lending is unlikely. The allocation limits and criteria for each bank have yet to be determined, and a significant portion of the funds is expected to be directed toward relocation loans, which may limit the impact on actual homebuyers.According to the financial sector on August 18, the Financial Services Commission and the Financial Supervisory Service will hold a practical meeting on August 19 to adjust the household loan quotas for financial institutions. During this meeting, they will discuss how to distribute the additional lending capacity of about 30 trillion won among financial companies.A substantial portion of the increased capacity will be used for loans aimed at promoting housing supply, such as relocation, interim, and final payment loans. As a result, the lending difficulties for actual homebuyers related to moving and relocation are expected to ease to some extent. The authorities have decided to manage housing supply-related loans separately from the overall loan quota, increasing the incentive for financial institutions to actively handle these loans.With the expanded quota, the lending capacity of banks for the second half of the year is also expected to increase somewhat. Based on the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup), it is anticipated that there will be a maximum of 7.5 trillion won available for mortgage loans in the remaining period. The annual increase target has risen from 4.3363 trillion won to 8.6726 trillion won, assuming that all remaining limits, after excluding the already increased 1.1175 trillion won, will be utilized for mortgage loans.However, until the total allocation is confirmed, it will be challenging for bank branches to actively guide customers on loan limits. Each bank has different existing loan increase records and management levels, meaning the actual additional amounts they can handle will vary. Even though the financial authorities have relaxed the overall management methods, the specific lending capacities of each bank remain undetermined, suggesting that conservative lending practices are likely to continue for the time being.The expansion of the quota does not imply a relaxation of existing lending regulations. Confusion continues regarding the detailed review criteria. While exceptions for non-resident homeowners seeking jeonse loans will be recognized in unavoidable circumstances, such as caring for parents or job relocation, the judgment on specific cases has been left to the credit review committees of individual banks.Given the variety of actual cases and the ambiguity of certain situations, banks are compelled to exercise caution in executing loans. If similar circumstances are judged differently by financial institutions, it could lead to greater confusion among borrowers.The financial authorities plan to share relevant information with the financial sector if companies request interpretative guidance from the Financial Services Commission on difficult cases. Rather than providing uniform guidelines, the aim is to accumulate interpretations of individual cases to refine the criteria.The financial authorities intend to complete discussions on the adjustment of quotas for each bank by the end of this month and accelerate the normalization of lending. A representative from the financial authorities stated, "Since we have doubled the total loan quota, we believe issues such as loan runs will be resolved. We will finalize discussions this month to ensure that financing for actual needs continues smoothly."* This article has been translated by AI. 2026-08-18 17:04:10
  • Climate Minister Kim Seong-hwan: Revisiting Power Demand Forecasts Amid Energy Mix Debate
    Climate Minister Kim Seong-hwan: Revisiting Power Demand Forecasts Amid Energy Mix Debate Kim Seong-hwan, the Minister of Climate, Energy and Environment, stated on August 18 that the government plans to restart demand forecasting due to increased energy needs. During a briefing session at the government complex in Sejong, he noted that the direction for the 12th Basic Plan for Power Supply and Demand (12th power supply plan) is not yet finalized. The government intends to reassess power demand forecasts through 2040, taking into account significant new electricity demands from sectors like artificial intelligence and semiconductors. The goal is to prepare a government proposal for the 12th power supply plan by October, following public discussions in August and September. A key issue in this plan will be whether to construct additional nuclear power plants and the scale of such projects. Minister Kim emphasized, "The main concern remains whether to proceed with nuclear power and, if so, how many additional plants to build. This will be a major point of contention in the energy mix debate." The method for public consultation regarding the inclusion of new nuclear plants is expected to be finalized soon. Kim explained, "We need to determine how to engage experts and the public in discussions about whether to include nuclear power in the 12th power supply plan. We aim to finalize this process by the end of this week or next week at the latest to stay on schedule." However, he expressed caution regarding the necessity and appropriate scale of new nuclear plants, stating, "As the minister of the relevant department, I cannot unilaterally decide government policy. We will make a judgment after a thorough discussion process." The restructuring of the power generation mix following the planned cessation of coal power by 2040 is also a significant topic of discussion. The government plans to review how to handle 20 coal power plants that will still be operational after 2040, as their design life will not have expired, and how to replace the reduction in coal power generation with alternative sources. The expansion of renewable energy and the roles of supporting technologies such as batteries, pumped storage, and liquefied natural gas (LNG) generation will also be discussed. Kim noted, "Renewable energy and nuclear power may conflict during spring and fall. We need to consider how much battery or pumped storage capacity to deploy and how to reduce the carbon emissions from the inevitable increase in gas generation. We plan to initiate public discussions on these issues soon." The Ministry of Climate, Energy and Environment aims to gather opinions on the power generation mix through sector-specific discussions. Kim stated, "We are not approaching this with predetermined answers. We will seek to find common ground through discussions and gather opinions to make decisions." A basic plan for a 'regional industrial electricity rate system' that applies differentiated rates based on regions will be unveiled next week. Originally scheduled for a public hearing this week, the timeline was postponed due to the Ulchi training exercises. Kim explained, "We decided to name it the regional industrial electricity rate system to avoid confusion among residents regarding whether their rates would also be differentiated. We will present the plan at next week's public hearing and gather public opinion." The government plans to finalize the proposal based on regional classification criteria being developed by the Ministry of the Interior and Safety.* This article has been translated by AI. 2026-08-18 17:04:10
  • Expert Commentary: A Hotter Society and Its Implications
    Expert Commentary: A Hotter Society and Its Implications This summer has been marked by extreme heat, with temperatures in Yangsan, South Gyeongsang Province, reaching 42.5 degrees Celsius, and the metropolitan area also hitting 40 degrees. Experts suggest that this summer's heat is not an anomaly but rather a new norm due to global environmental changes such as jet stream stagnation and rising sea surface temperatures. The Celsius scale, named after Swedish astronomer Anders Celsius, defines the freezing point of water at 0 degrees and the boiling point at 100 degrees under standard atmospheric pressure, dividing the range into 100 equal parts. This standard, originating from a single individual's name, has been accepted as a rational basis for social order over time.While atmospheric temperatures fluctuate according to physical laws, the temperature of social conflict rises and falls based on institutional design and political choices. If only the atmospheric temperature had increased this summer, it might have been bearable. However, our society has lost its 'rational standards' for mutual acceptance, leading to deeper conflicts. At the center of this turmoil is the rapid transformation of the judicial system.The abolition of supplementary investigation rights has eliminated prosecutors' investigative powers. While the intent behind this reform—to check prosecutorial power—is valid, the expansion of prosecutorial authority has been partly due to the reliance on criminal procedures for issues that could be resolved civilly. In our civil litigation system, victims are required to prove almost everything, yet the tools for proof are often inadequate, leading to a heavy reliance on prosecutorial investigations for victim relief. However, during the reform process, there has been no corresponding enhancement of civil remedies. The ecosystem for victim relief based on prosecutorial investigations has not been adequately considered. Despite the importance of this issue, recent debates surrounding the abolition of supplementary investigation rights have devolved into a battleground of partisan logic, making rational discussion difficult. Voices advocating for the necessity of supplementary investigation rights for victims have struggled to gain traction against the backdrop of prosecutorial reform. Behind the banner of reform lies the lives of citizens who are the actual victims. The fact that these citizens find it increasingly difficult to seek redress, regardless of institutional goodwill or political justification, is why this conflict is unlikely to cool down easily.Amidst the erosion of trust in judicial procedures, the recently enacted crime of judicial distortion has also become a source of heightened conflict. According to the National Police Agency, within just four months of its implementation, 529 judges have been accused or reported under this law. Examples include instances where judges sought clarifications on issues or mandated the submission of responses, as well as instances where they restricted questions in court. While indiscriminate accusations may be filtered out through findings of no wrongdoing or false accusations, the real concern is the growing perception that 'if one is dissatisfied with a ruling, they can target the judge for accusations.' If even minimal trust in judicial rulings collapses, courts will no longer serve as the 'final destination' for resolving conflicts but will instead become a 'transfer station' that generates further disputes.The current situation of eroding trust in the judiciary paradoxically leads to calls for 'AI judges.' Comments on articles reporting criminal trial outcomes often include suggestions to replace judges with AI when people are dissatisfied with verdicts. While many of these comments may be made in jest, some appear to be quite serious. The belief that introducing AI would lead to rational judgments and resolve conflicts is likely misguided. Large language models, including ChatGPT, categorize information and prioritize facts and concepts, a process inherently influenced by numerous value judgments. However, AI's decision-making lacks public discourse or social consensus, relying solely on the design and operational standards of large tech companies. In this process, the sovereign becomes a passive consumer of results presented by technological systems rather than an active decision-maker. Ultimately, the enticing notion of 'AI judges' does not provide a rational key to conflict resolution but rather hands over the subjectivity and accountability of judicial judgments to individual companies lacking democratic legitimacy, creating new conflicts.Carbon reduction policies aimed at addressing global environmental changes are not akin to an air conditioner that cools the room at the push of a button. However, they represent a minimal condition to slow the rising speed of the thermometer and prevent further deterioration. Our society is witnessing a political landscape where those meant to mediate conflicts instead fuel partisan divisions, showing little sign of cooling tensions. Judicial reform has been consumed as a topic for partisan fandom rather than rational discussion, leading to the complete abolition of prosecutorial investigative rights without proper remedies and the introduction of the crime of judicial distortion. This does not lower the temperature of social conflict but rather has the potential to ignite even more intense disputes. To reduce the temperature of conflict, politicians must first step off the accelerator of biased fandom that exacerbates these tensions and reclaim rational standards of dialogue and compromise. Otherwise, the irrational heat wave pressing down on our society will not relent.* This article has been translated by AI. 2026-08-18 17:04:10
  • Korean Investors Shift Focus to U.S. AI and Leverage Stocks
    Korean Investors Shift Focus to U.S. AI and Leverage Stocks As the South Korean stock market faced corrections in July, individual investors from Korea concentrated their investments in U.S. stocks related to artificial intelligence (AI), semiconductors, and leveraged products, raising concerns about potential risks in the U.S. market.On August 18, U.S. economic broadcaster CNBC reported, citing data from the Korea Securities Depository, that Korean investors net purchased approximately $4.5 billion (about 6.3 trillion won) in U.S. stocks in July, a significant increase from June.Notably, about $840 million of the total net purchases was directed towards American Depositary Receipts (ADRs) of SK Hynix. While investors in Korea could buy shares of the same company domestically, they opted for the U.S.-listed ADRs, which have recently traded at prices about 10% higher than their domestic counterparts.Owen Lamont, senior vice president at Acadian Asset Management, told CNBC that there is no reason for Korean investors to buy U.S. ADRs of Korean companies, calling it "completely crazy." He warned that such price discrepancies could signal speculative overheating.There was also a strong preference for leveraged products. According to reports, four of the top ten net purchases of U.S. stocks by Korean investors in July were leveraged products.The most purchased product was Direxion's Daily Semiconductor Bull 3X Shares ETF (SOXL), which tracks three times the daily returns of the semiconductor index. The ProShares UltraPro QQQ and ProShares Ultra QQQ, which leverage the Nasdaq 100 index, ranked fourth and sixth, respectively.CNBC analyzed that while Korean investors are shifting their investment focus from Korea to the U.S., they have not significantly changed their investment strategies. Philip Wu, head of research at Religare Global Advisors, noted that Korean investors are still heavily buying AI hardware-related assets in the U.S., similar to their domestic market behavior.In contrast, leveraged investing appears to be declining in the domestic market. The balance of margin loans in the domestic stock market dropped sharply from about 37 trillion won at the end of June to 27 trillion won earlier this month, marking the lowest level of the year. Meanwhile, net purchases of U.S. stocks by domestic investors have surged during the same period.However, analysts suggest that the influence of institutional investors in the U.S. market means that the buying activity of Korean individual investors is not large enough to significantly impact the overall U.S. stock market.Lamont pointed out that while the overall market may not be affected, there could be price distortions in specific stocks that Korean investors are heavily buying. He cautioned that the increase in leveraged ETF investments in Korea, Hong Kong, and the U.S. could heighten volatility and amplify market movements.* This article has been translated by AI. 2026-08-18 17:00:10
  • Han Jeong-ae Appointed Secretary General of the Democratic Party
    Han Jeong-ae Appointed Secretary General of the Democratic Party Kim Min-seok, the leader of the Democratic Party, appointed four-term lawmaker Han Jeong-ae as Secretary General on August 18. Kwon Chil-seung, a three-term lawmaker, was selected to take over Han's previous role as Policy Chair.Park Seong-jun, the party's chief spokesperson, spoke to reporters after paying respects at the National May 18th Democratic Cemetery in Gwangju, stating, "We prioritized capability in these appointments."Regarding Han's appointment, Park noted, "She has proven her ability to manage the party's affairs, having served as Minister of Environment and as a four-term lawmaker, as well as Policy Chair."On Kwon's appointment as Policy Chair, he added, "As a three-term lawmaker and former Minister of SMEs and Startups, he has taken on various roles within the party. Given the need for the country to successfully execute mega-projects, we believe he has the necessary capabilities."Additionally, the party announced other appointments, including Kim Nam-jun as Head of Public Relations, Shin Jeong-hoon as Chair of the Local Government Committee, Han Woong-hyun as head of the Democratic Party TV preparation task force, and Jo Gye-won, Lee Yong-woo, and Shin Hyun-young as party spokespersons.Meanwhile, Kim Min-seok appointed Park Seong-jun as chief spokesperson and Kim Tae-seon as head of the party leader's secretariat the day before. Following his inauguration, Kim promised to demonstrate inclusive leadership within the party amid heightened factional tensions between the pro-Lee Jae-myung and pro-Jeong Cheong-rae camps during the party convention. 2026-08-18 17:00:10
  • Special Prosecutors Charge Kim Geon-hee and Yoon Han-hong Without Detention
    Special Prosecutors Charge Kim Geon-hee and Yoon Han-hong Without Detention The Special Prosecutors' Office, investigating remaining allegations after the third special investigation, announced on August 18 that they have charged Kim Geon-hee and Yoon Han-hong, a member of the National Assembly and former head of the presidential transition team, without detention for their roles in selecting the unqualified firm 21Gram for the construction of the Hannam-dong residence.According to the special prosecutors, Kim and Yoon are accused of abusing their authority in April 2022 by coercing a representative of 21Gram, which was preparing for the residence construction, to negotiate the lending of a construction contractor's name. Yoon is also charged with facilitating 21Gram's use of another company's name for construction work, violating the Basic Construction Industry Act.In May 2022, Kim allegedly pressured the signing of a contract with 21Gram, despite the firm being unqualified and in violation of laws and regulations.During this process, Kim is accused of receiving approximately 10 million won in bribes, including Dior clothing, belts, and bracelets worth 6.88 million won, and Chanel payments worth 3.24 million won, in exchange for facilitating the awarding of the construction contract and increasing the project budget.The investigation revealed that the original site for the residence was selected and announced as the Army Chief of Staff's residence based on the opinions of feng shui experts, budget considerations, and construction schedules. However, it was later changed after Kim and Yoon, along with former Defense Minister Kim Yong-hyun, visited the Foreign Minister's residence multiple times. The construction firm was ultimately changed to 21Gram at the request of Kim and under Yoon's direction.The special prosecutors also charged former presidential office management secretary Kim O-jin for providing false testimony during a National Assembly audit. However, allegations regarding illegal contracts and payments involving the National Security Office will be referred to the National Police Agency's National Investigation Headquarters.Additionally, on August 14, the special prosecutors charged Kang Ho-pil, former commander of the Army Ground Operations Command, Park Jae-yeol, former commander of the 7th Corps, and Yeo In-hyung, former head of the Counterintelligence Command, without detention for their involvement in a coup during the December 3 martial law.The special prosecutors determined that Kang actively contributed to the martial law by transitioning the Ground Operations Command to a martial law response system and directing the assembly of crisis response teams and former officers at the time of the martial law declaration.Park was also charged for summoning subordinate units to carry out martial law duties under Kang's orders.Previously, Jo Eun-seok, the special prosecutor for the coup, had questioned Kang as a witness, but the comprehensive special prosecutors decided to charge him after determining he participated in prior discussions before the martial law was declared.A note found on Yeo's phone, which included the phrase 'the four of us are prepared,' was a key piece of evidence linking him to the Ground Operations Commander. Despite a court rejecting a warrant for Kang's arrest last month, the special prosecutors proceeded with the charges after supplementing evidence to prove the allegations.Meanwhile, it was confirmed through the coup special prosecutors' investigation records that Kang expressed his intention to retire to former Defense Minister Shin Won-sik in response to former President Yoon's remark that 'the military should step in.'Yeo is also accused of creating a separate list of military generals who had connections with or did not align with the Democratic Party and other opposition parties during the Yoon Suk-yeol administration, leading to unfair disadvantages in military personnel processes.A representative from the special prosecutors emphasized their commitment to maintaining the prosecution of those involved in the national governance scandal and coup allegations, ensuring that appropriate penalties are imposed in court. 2026-08-18 16:56:10
  • Seoul Mayor and President Clash Over Housing Supply Strategies
    Seoul Mayor and President Clash Over Housing Supply Strategies President Lee Jae-myung and Seoul Mayor Oh Se-hoon are at odds over plans to expand housing supply in the capital. Mayor Oh has called for easing regulations on floor area ratios and the transfer of membership rights in redevelopment and reconstruction projects, while President Lee has emphasized that regulatory relief should not lead to soaring housing prices. A dispute also arose over Mayor Oh's comments regarding the use of Yongsan Park land for housing.During a Cabinet meeting at the Blue House, President Lee responded to Mayor Oh's requests for easing regulations on floor area ratios, transfer of membership rights, and rental housing ratios by stating, "We should aim to increase supply, but we must not raise the possibility of skyrocketing housing prices."However, President Lee noted, "There may be a middle ground that maximizes positive aspects while minimizing negative ones," and instructed Prime Minister Han Seung-soo to explore various opinions to find ways to increase housing supply. The aim is to maintain the supply benefits of redevelopment projects while preventing speculative demand and price hikes.After the Cabinet meeting, Mayor Oh took to social media to request, "Please lift the regulations that are blocking the acceleration of redevelopment and reconstruction."The Seoul city government has been urging the central government to relax regulations on relocation loans for redevelopment projects, lift restrictions on the transfer of membership rights, and promote private rental housing supply. While some of its proposals were reflected in the government's August 13 supply measures, key regulations remain in place.Mayor Oh emphasized, "There are still essential regulations that must be lifted, such as restrictions on the transfer of membership rights, floor area ratios, and rental housing ratios." The city believes that relying solely on public-led supply has its limits and that enhancing the viability of private redevelopment projects is necessary to increase supply in urban areas. Mayor Oh previously highlighted that redevelopment could yield up to 40% more new housing, while reconstruction could average a 25% increase, underscoring the supply potential of these projects.Conflicting accounts emerged regarding the potential use of Yongsan Park land for housing supply. Mayor Oh claimed on social media, "I clearly expressed my opposition to building apartments in Yongsan Park to the President." He argued, "Housing can be built elsewhere, but once urban green spaces are lost, they are difficult to recreate," adding, "There are principles even in urgency."However, the Blue House denied Mayor Oh's assertion that he mentioned the Yongsan Park issue during the Cabinet meeting. Chief Spokesperson Kang Yu-jeong stated, "There seems to be a discrepancy with the facts," and added, "We have not heard anything regarding Yongsan Park."While the Seoul city government agrees on the need to expand housing supply, it maintains that significant green spaces like Yongsan Park should not be used as a means to provide housing. Mayor Oh previously stated his firm opposition to the possibility of housing supply in the Yongsan Park children's garden area, asserting, "I absolutely cannot agree; no matter how urgent it is, we do not consume the seeds of our future." 2026-08-18 16:56:10
  • New Requirements for Individual Investors in Leverage Trading Begin Tomorrow
    New Requirements for Individual Investors in Leverage Trading Begin Tomorrow The threshold for individual investors looking to invest in single-stock leverage products will increase starting tomorrow.According to the Financial Services Commission, the Korea Exchange will expand its simulated trading service, currently applied to futures, options, and short selling, to include domestic and foreign single-stock leverage investments beginning on the 19th. Individual investors will be required to engage in simulated trading for at least five trading days, with a minimum of one hour per day, totaling at least five hours.Previously, to invest in single-stock leverage products, investors had to complete two hours of online training, including both basic and advanced courses, and maintain a minimum deposit of 30 million won. This new requirement adds a simulated trading procedure that mimics real investment conditions.The financial authorities are continuously strengthening investor protection measures, considering the risks associated with single-stock leverage products. These products are structured to track the daily returns of underlying assets at a certain multiple, which can lead to rapidly increasing losses as stock price volatility rises.Recently, individual investor funds have been flowing into U.S. indices and covered call products in the exchange-traded fund (ETF) market.According to Koscom ETF CHECK on the 18th, among the top 10 ETFs with the highest net inflows from the 11th to the 13th, four were products tracking major U.S. indices like the S&P 500 and Nasdaq 100. The 'TIGER U.S. S&P 500' saw a net inflow of 212.4 billion won, while 'KODEX U.S. Nasdaq 100' attracted 100 billion won. Additionally, 'KODEX U.S. S&P 500' and 'TIGER U.S. Nasdaq 100' received net inflows of 96.5 billion won and 65.2 billion won, respectively.When expanding the scope based on individual net purchases, the top two ETFs purchased by individuals from the 3rd to the 17th were 'TIGER U.S. S&P 500' (281.8 billion won) and 'KODEX U.S. Nasdaq 100' (191.1 billion won).Funds also flowed into covered call ETFs, which seek regular cash flow. From the 11th to the 13th, 'KODEX 200 Target Weekly Covered Call' saw a net inflow of 214.7 billion won, while 'TIGER Semiconductor TOP 10 Covered Call Active' and 'RISE Korea Value Up Weekly Fixed Covered Call' attracted 74.5 billion won and 42.4 billion won, respectively.Covered call strategies involve holding stocks or indices while selling call options to utilize the premiums received for dividends and other purposes. This approach allows investors to seek cash flow and reduce volatility while sacrificing some upside potential in a rising market.Conversely, as the domestic stock market rebounded recently, some leveraged products experienced profit-taking. From the 3rd to the 14th, individuals sold a net 318.6 billion won of 'KODEX KOSDAQ 150 Leverage.' There were also net sales of approximately 220.1 billion won and 251.3 billion won in single-stock leverage products for Samsung Electronics and SK Hynix, respectively.* This article has been translated by AI. 2026-08-18 16:48:10