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Korean Inc. scores second best in profitability, but zombie firms hit record high SEOUL, June 10 (AJP) -Korean Inc. scored their second-best in profitability last year largely thanks to staggering margins of chipmakers, while the broad polarization deepened with zombie population hitting their all-time high, central bank study showed Wednesday. According to the preliminary corporate management analysis for 2025 released by the Bank of Korea (BOK), the revenue growth rate for non-financial corporations subject to external audits stood at 2.5 percent last year. That was down 1.7 percentage points from 4.2 percent a year earlier. The headline profitability improved sharply. The operating profit margin rose from 5.4 percent in 2024 to 6.2 percent last year, marking the highest level since 2021, when it stood at 6.8 percent. The pre-tax net profit margin also climbed from 5.2 percent to 6.3 percent. The overall corporate balance sheet also strengthened. The debt-to-equity ratio fell from 103.4 percent to 98.3 percent, and borrowing dependency dropped from 28.4 percent to 27.3 percent. It marked the first time in five years that the average debt ratio fell below 100 percent, since 2020, when it recorded 97.3 percent. Top-line growth slowed across both manufacturing and non-manufacturing sectors. Revenue growth in manufacturing fell from 5.2 percent to 3.2 percent, while non-manufacturing growth dropped from 3.0 percent to 1.6 percent. Within manufacturing, petroleum refining and chemicals suffered notable slumps. Revenue growth for petroleum refining and coke swung from 1.0 percent to negative 7.4 percent, while chemicals fell from 4.0 percent to negative 2.4 percent. The BOK attributed the decline in refining to deteriorating supply-demand conditions and lower oil prices. Chemicals were hit by persistent global oversupply. In the non-manufacturing sector, the construction slump was stark. The construction revenue growth rate deepened its decline from negative 3.2 percent to negative 9.6 percent. The BOK said construction was dragged down by shrinking real estate demand and a prolonged slowdown in housing starts since 2023. By company size, growth weakened across the board. Large companies saw revenue growth slow from 4.4 percent to 2.8 percent, while small- and medium-sized enterprises (SMEs) cooled from 3.2 percent to 1.2 percent. The rebound in profitability was led largely by the semiconductor sector. The manufacturing operating profit margin rose from 5.5 percent to 6.9 percent, while the margin for electronic, visual and communications equipment jumped from 8.8 percent to 15.0 percent. The BOK said rising semiconductor prices and increased sales of high-value-added products for AI servers drove the improvement. However, the sector's revenue growth slowed from 21.6 percent to 15.1 percent, indicating a moderation in growth momentum. Utilities also helped lift non-manufacturing profitability. The operating profit margin for electricity and gas rose from 5.8 percent to 8.3 percent, helped by utility rate adjustments, lower power purchase costs and fiscal normalization efforts. The aggregate improvement did not translate into broader corporate health. Large companies' operating profit margin rose from 5.6 percent to 6.6 percent, while SME margins slipped from 4.8 percent to 4.6 percent. In manufacturing, margins at large firms climbed from 5.7 percent to 7.3 percent. Those at SME manufacturers edged down from 4.7 percent to 4.6 percent, suggesting that semiconductor gains did not spread widely to smaller businesses. A similar divergence was evident in debt-servicing capacity. The overall interest coverage ratio rose from 305.8 percent to 369.8 percent, supported by higher operating margins and lower financing burdens. However, the share of firms with an interest coverage ratio below 100 percent expanded from 38.5 percent to 39.9 percent. An interest coverage ratio below 100 percent means a company's operating profits are insufficient to cover its interest expenses. The BOK said the share was the highest since the current data series began in 2013. The strain was also visible in the distribution of corporate earnings. The proportion of loss-making companies grew from 26.2 percent to 28.2 percent. The share of firms with an interest coverage ratio of 500 percent or higher shrank from 33.1 percent to 32.6 percent. This indicates that strong performances by a handful of large tech firms lifted aggregate averages, even as financial strains on vulnerable businesses worsened amid sluggish domestic demand and elevated interest rates. Cash flows improved marginally as operating activities generated stronger inflows. The cash flow coverage ratio rose from 51.4 percent to 52.8 percent. The preliminary statistics are based on a survey of 34,456 non-financial corporations subject to external audits that filed audit reports as of the end of 2025, excluding certain companies and industries. 2026-06-10 12:53:34 -
New Baby Panda Born at Everland, Joining Bao Family A new life has arrived at Everland's Panda World. The resort, operated by Samsung C&T, announced on June 10 that a female baby panda was born on June 3 to parents Ai Bao and Lu Bao. At birth, the cub weighed 171 grams. Both the mother and baby panda are reported to be in good health and are receiving care from zookeepers and veterinarians. This birth is considered a significant achievement in the history of panda conservation in South Korea. Following the birth of Fu Bao, the first naturally bred panda in the country in 2020, and the first set of panda twins, Rui Bao and Hui Bao, in 2023, this marks the third instance of natural breeding. Ai Bao and Lu Bao are now parents of four cubs. Ai Bao's condition had been a topic of interest among fans even before the birth. Observations of increased sleep and decreased appetite led to speculation about a possible third pregnancy on social media and online communities. In late May, Everland moved Ai Bao to a private area for focused care. Natural breeding among pandas is challenging. A female panda's fertility period occurs only once a year and lasts just a few days. Hormonal changes during actual and pseudopregnancy are similar, making it difficult to confirm pregnancy until just before birth. Everland prepared for this delivery by monitoring the panda couple's condition based on data from previous births. In February, they successfully achieved natural mating with the assistance of the China Panda Protection Research Center. This year's birth is particularly meaningful as it coincides with the 10th anniversary of Panda World, which opened in 2016. The facility is the only panda experience space in South Korea and serves as a site for joint research on panda conservation between South Korea and China. To date, it has welcomed approximately 18 million visitors. The Bao family has always been marked by both reunions and farewells. The first cub, Fu Bao, returned to China in 2024. There are also concerns among fans about the potential future relocation of the other popular pandas, Rui Bao and Hui Bao, to China. Amid these changes, the news of the new baby panda brings joy to those who love the panda family. Everland plans to provide focused care for the baby panda until it can walk independently and adapt to its environment. The growth process will be shared on Everland's YouTube channel, 'Everland,' 'Talking Zoo Buppa TV,' and the Naver Cafe 'Zootopia' before the public unveiling. 2026-06-10 12:39:00 -
Jung Jeong-sik Elected as New Floor Leader of People Power Party Jung Jeong-sik, a three-term lawmaker, has been elected as the new floor leader of the People Power Party. His election comes just seven days after the resignation of former floor leader Song Eon-seok following local elections.On June 10, the People Power Party held a general meeting at the National Assembly to conduct the floor leader election. The contest featured three candidates: Kim Do-eup, Jung Jeong-sik, and Seong Il-jong. Since no candidate received a majority of votes in the first round, a runoff was held.In the runoff, Jung secured 55 votes out of a total of 103, defeating Kim, who received 48 votes.In his acceptance speech, Jung expressed gratitude for being elected at such a critical time for the party, stating, "I deeply appreciate the members who entrusted me with this heavy and significant responsibility." He emphasized that the votes cast were not just for him personally but a serious mandate to rebuild the People Power Party and restore public trust.Jung stressed the need for unity, saying, "We cannot have factions, divisions, or confrontations. There can only be one People Power Party that serves the public will." He assured that he would not be swayed by the voices of specific factions and would prioritize collective wisdom in his leadership.After his election, Jung addressed concerns regarding perceptions of a pro-Yoon faction within the party, stating, "I will take such criticisms to heart. I believe that the pro-Yoon faction does not exist as a faction. I understand that this perspective may exist externally, and I will actively express my opinions to dispel it in the operation of the National Assembly and the party."* This article has been translated by AI. 2026-06-10 12:39:00 -
Shift Up and Neowiz Expand to Nintendo Switch 2 with New Titles Neowiz and Shift Up are expanding their console intellectual property games, 'P's Lies' and 'Stella Blade', to the Nintendo Switch 2. After targeting the global market primarily through PC and PlayStation (PS) and Xbox platforms, they are now broadening their lineup to include the Nintendo Switch 2, aiming to enhance their global user engagement. According to the gaming industry on June 10, Neowiz and Shift Up announced during the official Nintendo online showcase, 'Nintendo Direct 2026', that they will release versions of their games for the Nintendo Switch 2. Both 'P's Lies' and 'Stella Blade' have achieved success in the global PC and console markets. Neowiz plans to launch 'P's Lies: Complete Edition' for the Nintendo Switch 2 on August 6. This edition will combine the main game 'P's Lies' with the downloadable content (DLC) 'P's Lies: Prelude'. Shift Up also intends to release the Nintendo Switch 2 version of the action-adventure game 'Stella Blade' later this year. Developed by Neowiz's Round8 Studio, 'P's Lies' was released in September 2023 for PC, PlayStation, and Xbox platforms. Despite being a new intellectual property, it has recorded cumulative sales of 4 million copies in the global console market. Choi Ji-won, the director of 'P's Lies', expressed hope that "more global fans will be able to enjoy 'P's Lies' through additional platforms." 'Verified as a global hit, 'Stella Blade' was initially set to launch on PC, Xbox, and PS4, but due to an exclusive agreement with Sony, it was released for PS5 in April 2024. A year later, it was made available for PC, achieving total sales of over 6 million copies, including 3.7 million on consoles and 2.4 million on PC. The upcoming release for the Nintendo Switch 2 will further diversify the platforms for 'Stella Blade'. Kim Hyung-tae, the director of 'Stella Blade', stated, "It is meaningful for 'Stella Blade' to reach more users through the Nintendo Switch 2, and we will ensure that players can fully experience its unique action and immersion on the new platform." 2026-06-10 12:21:00 -
Democratic Party Launches Task Force to Reform Election System Following Voting Paper Shortage The Democratic Party has activated a task force (TF) to address the shortage of ballots that occurred during the recent June 3 local elections. The party also warned Jang Dong-hyuk, leader of the People Power Party, against politicizing the situation. On June 10, the Democratic Party launched the "Election System Reform TF for the Protection of Citizens' Voting Rights," beginning its investigation into the incident. The task force is led by Representative Song Gi-hun, with Representatives Kim Young-bae and Park Sang-hyuk serving as deputy leaders, alongside members including Lee Hae-sik, Lee Joo-hee, Park Kyun-taek, Lee Jeong-heon, Lim Mi-ae, and Park Hee-seung. The party has characterized the ballot shortage as a significant issue that infringes on the sovereignty of the people and has announced plans for major reforms to the National Election Commission. Han Byeong-do, the floor leader, stated, "This incident has clearly revealed the limitations of our election management system. It is heartbreaking that such a situation has occurred in 21st-century South Korea, which prides itself on being a leading democracy. The Democratic Party will focus all its efforts on reforming the election system to meet the expectations of the public and the spirit of the times." Representative Song emphasized, "An unprecedented situation has occurred that infringes on citizens' voting rights. Voting rights are a core element of democratic systems. The TF will identify the causes of this incident and comprehensively review all related legislation to improve laws and systems. We will prepare measures for fundamental reform of the Election Commission." Representative Kim added, "The foundation of trust in a democratic republic is fair and free elections. If we lose that trust, the very existence of our democratic republic is threatened. This incident necessitates thorough investigation and institutional reforms to prevent recurrence, and it may even require constitutional amendments." The Democratic Party also urged Jang to refrain from using the situation for his political gain and to actively participate in constructive dialogue instead of engaging in irresponsible political disputes. Representative Lim stated, "There are citizens who have taken to the streets to protest the infringement of voting rights. If necessary, I will engage with them. However, Jang should be mindful not to exploit healthy voices for his political survival." Representative Kim reiterated, "Jang is claiming there should be a re-election and alleging election fraud. Instead of engaging in irresponsible political disputes to escape his political crisis, he should join us in building trust in our democratic republic through institutional reforms." Additionally, the Democratic Party plans to hold a second meeting on June 16 and a public forum on June 17 to expedite the reform process for the Election Commission. Representative Lee Joo-hee noted, "During the first meeting, we confirmed the participating members and discussed operational directions. Given the seriousness of the situation, we quickly convened the second meeting for June 16. A public forum for improving the Election Commission will also be held on June 17."* This article has been translated by AI. 2026-06-10 12:21:00 -
Candidates for National Assembly Leader Unite on 'Conservative Rebuilding' During a candidate forum held on June 10, the three contenders for the People Power Party's National Assembly leadership—Kim Do-eup, Jeong Jeom-sik, and Seong Il-jong—expressed a unified call for 'conservative rebuilding.' However, they proposed different approaches: Kim emphasized change, Jeong focused on unity, and Seong highlighted the need for struggle. The People Power Party convened a general meeting on June 10 to initiate the selection of its next National Assembly leader. The candidate forum addressed the urgent need for conservative rebuilding, especially after the party's consecutive defeats in national elections, including the 2024 general election, last year's presidential election, and the recent local elections. Kim argued that the first step toward rebuilding conservatism is for the People Power Party to undergo transformation. He pointed out that the new leader could be perceived as a 'pro-Yoon (Yoon Suk Yeol) party' depending on who is elected, indirectly referencing Jeong, who recently served as the party's policy chief. "Change cannot be just words; it must involve a change in personnel," Kim stressed, adding that only then will the public recognize that change has begun. He also noted that the signs of division within the party are perceived by the public as factionalism, questioning whether true unity can be achieved by those seen as factional leaders. In response, Jeong emphasized the importance of unity. He remarked, "Bringing external perspectives into our internal discussions only fuels conflict among members. If I become the National Assembly leader, I will start dialogues with those classified as belonging to different factions outside the party. We must restore trust through conversation and move toward unity." He urged critics to dismiss concerns about being labeled a 'pro-Yoon party,' stating, "During my time as policy chief, I led the drafting of the declaration of absolute loyalty. I will not serve as a shield for any specific faction or individual outside the party." Seong called for the party to regain its fighting spirit and become a clear opposition force. He pledged to strengthen the party's struggle against the ruling government, differentiating himself from Kim and Jeong, who have backgrounds in public service. "We must fight against the Lee Jae-myung administration, but both of you are too gentle and mild. I have grown like a weed, while you both have the temperament of the ruling party," Seong asserted, emphasizing the need to fulfill the public's mandate to check the government. "In times of crisis like this, the party needs a field commander."* This article has been translated by AI. 2026-06-10 12:18:00 -
Hugel Showcases Key Products at AMWC KOREA, Highlighting K-Aesthetic's Global Status Hugel will unveil its major product portfolio at the AMWC KOREA, the first global aesthetic medical conference held in South Korea. This event is seen as an opportunity to showcase the global status of K-Aesthetic.From June 19 to 20, Hugel will participate in the Aesthetic & Anti-aging Medicine World Congress KOREA (AMWC KOREA) at the Grand InterContinental Seoul Parnas.At the event, Hugel will have a dedicated booth featuring key products including botulinum toxin, Letybo, HA fillers, Revolax bioregenerative skin boosters, HA (BYRYZN) sutures, and Licellvi.On June 19, a lunch symposium will feature presentations from Kim Se-jin, director of Myeongdong Liens Plastic Surgery Clinic, and Jang Hyo-seung, director of the Gangnam Pierbom Clinic, who will share their clinical experiences and insights on toxin procedures. Following this, Dr. Suneel Chilukuri, founder of Refresh Dermatology in the U.S., will present his experiences and clinical cases involving Letybo treatments in the United States.In addition to the conference, Hugel plans to offer various programs that allow participants to experience the medical aesthetic scene in Korea. From June 17 to 18, the AMWC KOREA with L.E.A.D educational program will include clinic tours and live demonstrations, followed by the 'Hugel Lead Night' networking event for global medical professionals on the final day, June 20.Carrie Strom, Hugel's global CEO, stated, "AMWC KOREA is expected to be a meaningful opportunity for Hugel's clients and employees to gather and share market experiences and insights from various regions, enhancing global business synergy."Meanwhile, as the global status of K-Aesthetic rises, Hugel reported simultaneous growth in revenue and profitability in the first quarter of this year, driven by expansion in overseas markets.Specifically, Hugel recorded consolidated revenues of 116.6 billion won, operating profit of 47.6 billion won, and net profit of 40.6 billion won for the first quarter. Compared to the same period last year, revenues increased by 29.9%, operating profit by 22.3%, and net profit by 31.5%. Notably, the operating profit margin stood at 40.8%, reflecting strong profitability.* This article has been translated by AI. 2026-06-10 12:15:00 -
Dong-A ST Exports Technology for Cenobamate to Australia and New Zealand Dong-A ST is set to enter the Australian and New Zealand markets with its epilepsy treatment, Cenobamate (marketed as Xcopri). The company has opted for a licensing-out model, transferring local development, approval, and sales rights, marking a significant expansion of its global business strategy. This move is particularly noteworthy as it represents the first instance of Dong-A ST exporting a product that was initially sourced from abroad.On June 10, Dong-A ST announced that it has signed a technology export agreement for Cenobamate with Arrotex Pharmaceutical, a leading pharmaceutical company in Australia. Arrotex has an extensive distribution and sales network across Australia and New Zealand and operates a dedicated marketing team for central nervous system (CNS) products, enhancing its competitiveness in the epilepsy treatment market.Under this agreement, Dong-A ST will transfer the development and sales rights for Cenobamate in Australia and New Zealand to Arrotex, which will handle local approval and commercialization. Dong-A ST will produce and supply the finished product.In January 2024, Dong-A ST entered into a licensing-in agreement with SK Biopharmaceuticals for Cenobamate, covering 30 countries including South Korea, Southeast Asia, Russia, Australia, New Zealand, and Turkey. The company obtained domestic product approval for Cenobamate in November 2025 and is currently in the process of securing reimbursement listings.According to the company, Cenobamate works by inhibiting sodium channels involved in excitatory signal transmission and enhancing GABAA receptor function, thereby regulating neuronal hyperexcitability and normalizing the balance between excitatory and inhibitory signals. In multinational clinical trials involving adult patients with partial-onset seizures, those treated with Xcopri demonstrated significant reductions in seizure frequency and complete seizure freedom rates, proving its efficacy.Jae-Hoon Jung, CEO of Dong-A ST, emphasized, "We will expand our overseas market presence and strengthen our global competitiveness based on various global business models and partnerships."* This article has been translated by AI. 2026-06-10 12:12:00 -
Korean Entertainment Firms Face Scrutiny Over Fan Club Membership Terms The Fair Trade Commission has identified unfair terms in the membership agreements of entertainment companies and fan platforms operating paid fan club memberships. On June 10, the commission reported that it found 77 instances of unfair clauses across eight categories in the terms of service from 24 companies, including SM Entertainment and Big Hit, as well as Weverse Company and Kakao Entertainment.Paid fan club memberships allow consumers to pay a fee for benefits such as early access to concert tickets and exclusive communication opportunities with artists. Consumers must purchase these memberships through platforms where the specific artist is available, leading the Fair Trade Commission to investigate potential coercive trading conditions.The investigation revealed unfair terms in four areas: unreasonable refund restrictions, unjust exemption from obligations and responsibilities, limitations on users' rights, and other unfair clauses. Specifically, while refunds are allowed within seven days of payment, the terms restrict refunds if benefits have been utilized or prohibit refunds and cancellations due to change of mind.The commission explained that imposing refund restrictions violates Article 6 of the Terms and Conditions Act, which states that customers should not bear excessive liability for damages. Gwak Go-eun, head of the commission's special transaction terms division, stated, "The benefits of paid fan club memberships are tied to the artist's activity schedule, so the benefits available can vary depending on when a person joins. If members are dissatisfied with the benefits provided, they should be able to withdraw and receive a refund."In response, the companies have agreed to allow full refunds within seven days if there is no usage history. After seven days or if there is usage, they plan to refund the remaining amount after deducting a cancellation fee and the amount used.Additionally, a clause from SM Entertainment that stated the remaining validity period of a membership would not be restored after canceling a renewal payment was also flagged. The commission deemed this clause to unfairly reduce the company's obligation to restore the contract, violating Article 9 of the Terms and Conditions Act.Other problematic clauses included one from YG Entertainment that made refunds impossible if a member's withdrawal prevented the provision of content related to changed members, and another from Kakao Entertainment that exempted the company from responsibility for service interruptions.The Fair Trade Commission believes that consumers who were unable to receive refunds after joining paid fan clubs will benefit from the new refund policies based on elapsed time or usage. It also anticipates that increased accountability among businesses will minimize refund demands through improved service quality.Gwak warned, "If entertainment companies and platforms fail to comply and rectify these issues, we will proceed with corrective recommendations and orders. If improvements are not made, we will consider filing complaints."* This article has been translated by AI. 2026-06-10 12:09:00 -
Democratic Party Sets August 17 for Leadership Election Convention The Democratic Party announced it will hold a convention to elect its next leader on August 17. The party also plans to establish a special committee to investigate the recent shortage of ballots during the June 3 local elections. Kang Jun-hyun, the party's chief spokesperson, spoke to reporters after the Supreme Council meeting on June 10, stating, "I will announce the decisions made during the closed meeting," adding, "We agreed to hold the convention on August 17." Kang explained that the final decisions regarding the timing and procedures for the convention will be made by the convention preparation committee. He noted that the party's committee meeting on the same day and the Central Committee meeting scheduled for June 16 will discuss simplifying procedures or adding provisions related to the convention. In response to the recent controversy over the ballot shortage, Kang announced the establishment of a temporary special committee, tentatively named the 'Election Management System Improvement Special Committee.' Kang stated, "This will run concurrently with the 'Election System Reform Task Force' operated by the parliamentary leadership. We will maintain an equal ratio of internal and external members," adding that confirmed internal members include Lee Jae-young, the current head of the Democratic Research Institute, and Hong Chang-min, CEO of Animoobi, as an external member. He continued, "The special committee can be composed of no more than 30 members according to party rules. The specific number and list will need to be discussed internally," noting that lawmakers participating in the task force are also expected to join. Earlier, Jung Cheong-rae, the party leader, had hinted at the formation of a special committee for election reform during the Supreme Council meeting. He emphasized, "Democracy must not be compromised for any reason. We need to implement fundamental reforms in the election management system," and pledged that the Democratic Party would quickly activate the special committee to thoroughly investigate the situation.* This article has been translated by AI. 2026-06-10 12:09:00