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  • Candidates for National Assembly Leader Unite on Conservative Rebuilding
    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-Aesthetics Global Status
    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 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
    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
    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
  • AI Utilization Gap Between Large and Small Enterprises Driven by Organizational Environment
    AI Utilization Gap Between Large and Small Enterprises Driven by Organizational Environment Amid the rapid expansion of generative AI, a report from the Korea Chamber of Commerce and Industry has highlighted the structural gap in AI utilization based on company size, emphasizing the urgent need to create conditions that facilitate AI adoption. According to the report titled "The Gap in Generative AI Utilization Between Large and Small Enterprises: The Role of Capabilities and Organizational Environment" (by Kim Yong-mi and Lee Chang-geun), the gap in basic generative AI utilization rates between large and small enterprises stands at 13.8 percentage points, with large firms at 66.5% and small firms at 52.7%. The study was based on a survey of approximately 3,000 wage workers aged 20 and older nationwide. While the gap in generative AI utilization is 13.8 percentage points, the report indicates that if companies foster an organizational environment conducive to AI use, small enterprises could achieve levels comparable to large firms. When analyzing factors such as company support systems and employees' prompt engineering skills, the pure utilization gap attributable to company size shrinks significantly to about 4 percentage points. Samsung recently announced its official adoption of generative AI across all its subsidiaries, initiating a comprehensive transformation of its work processes and corporate culture to be AI-centered, termed "AI Transformation (AX)." Other major companies, including LG Electronics, SK Hynix, Hyundai Motor Group, and Hanwha, are also accelerating automation efforts through the implementation of in-house chatbots and AI support systems. The report also found that when companies create an environment that encourages AI use, the likelihood of employees utilizing AI increases by 15.5 percentage points compared to those in companies that do not foster such an atmosphere. Additionally, when companies provide subsidies for subscription fees, the utilization probability rises by 8.1 percentage points. The state of AI support infrastructure reveals that small enterprises significantly lag behind large firms. The report found that 70.4% of small businesses do not have a roadmap for adopting generative AI, compared to 54.4% of large companies. Furthermore, in areas such as training and education (34.7% for large firms vs. 24.9% for small firms), providing internal guidelines and manuals (33.8% for large firms vs. 24.3% for small firms), and offering custom AI tools (11.4% for large firms vs. 5.7% for small firms), small enterprises are falling behind. An employee from a small business, referred to as A, stated, "While the company encourages the use of generative AI, it only covers 50% of the subscription fee, which is a significant burden. We need more substantial support, such as increased subsidy coverage and educational programs, rather than just encouragement to use it." The ways in which time saved through generative AI is utilized also show a clear distinction between large and small enterprises. Both large and small enterprise workers ranked investing saved time in improving the quality of existing work as their top priority. However, while employees at large firms used saved time for "new projects and tasks" (22.6%), those at small firms opted for "rest and personal time" (27.3%). The report also highlighted polarization by industry and region, indicating that the manufacturing sector and small businesses outside the capital region are particularly underserved in AI utilization. The gap in utilization rates between large and small enterprises in the service sector is 9.2 percentage points, while in manufacturing, it reaches 24.2 percentage points, a 2.6-fold difference. Additionally, small businesses in the capital region have a utilization rate of 57.3%, significantly higher than the 47.8% in non-capital regions. Perceptions regarding AI utilization experiences also emerged as a concern. The primary reason employees hesitate to share their experiences with AI in the workplace is the fear of negative perceptions surrounding generative AI (39.0% for large firms and 33.6% for small firms). This suggests that fostering an open organizational culture alongside AI adoption is essential. The Korea Chamber of Commerce and Industry's Economic Research Institute emphasized the need for enhancing employee AI capabilities and providing tailored support for small enterprises to bridge the generative AI utilization gap. Recommendations include expanding AI-specific vocational training, offering customized education for non-capital region and manufacturing sectors, providing consulting on adoption strategies and standard roadmaps, and simplifying requirements for AI tool cost support. It is also crucial to redesign job roles and establish incentive systems for sharing internal know-how to ensure that time saved through AI translates into actual productivity gains and business advancement. Park Yang-soo, head of the Economic Research Institute, stated, "The AI gap between large and small enterprises stems from organizational environments, including company policies and support, beyond individual attitudes. A sophisticated institutional design that encompasses the creation of conditions for small businesses to adopt AI and enhance employee capabilities is vital."* This article has been translated by AI. 2026-06-10 12:06:00
  • Financial Authorities Reform Debt Collection Practices for Delinquent Loans
    Financial Authorities Reform Debt Collection Practices for Delinquent Loans South Korea's financial authorities are set to reform the practice of debt collection for personal delinquent loans, which has allowed financial companies to continue pursuing debts even after receiving tax benefits. Under the new rules, financial institutions must complete the statute of limitations before they can claim tax benefits for recognizing personal delinquent loans as losses. On June 10, the Financial Services Commission and the Financial Supervisory Service announced a pre-notification of the revised "Guidelines for the Recognition of Bad Debts by Financial Institutions." This revision follows the measures announced in February to strengthen the management of personal delinquent loans, with plans to finalize the changes in July and implement them in September. Currently, financial companies can classify personal delinquent loans as estimated losses and apply for recognition from the Financial Supervisory Service, allowing them to receive tax benefits even before the statute of limitations expires. The issue arises when these companies continue to extend the statute of limitations and pursue debt collection after receiving tax benefits, effectively demanding repayment from debtors for debts that are recognized as uncollectible under tax law. The recent controversy surrounding the "Sangnoksoo" case has heightened awareness of this issue. Sangnoksoo First Special Purpose Company was established in 2003 as a private bad bank to manage large amounts of non-performing loans during a credit crisis. However, it has been revealed that the company has held long-term delinquent loans for over 20 years while continuing collection activities, raising concerns about outdated debt management practices. The core of the revised guidelines is that financial companies can only receive recognition for bad debts on unsecured personal loans when the statute of limitations for the initial debt expires. According to the newly established "Conditional Recognition of Personal Financial Claims" regulation, financial institutions must abandon the claim by the expected expiration date of the statute of limitations when applying for or reporting bad debt recognition. The initial focus will be on small delinquent loans. Personal financial claims held by banks and insurance companies will be targeted if they are below 50 million won, while savings banks, mutual finance institutions, and credit finance companies will focus on claims below 30 million won. The financial authorities noted that these thresholds cover over 90% of all claims based on the number of accounts. However, exceptions will be made if hidden assets of the debtor are discovered or if bankruptcy, rehabilitation procedures, or debt adjustments necessitate a suspension of the statute of limitations. Financial authorities also plan to ensure that the obligation to complete the statute of limitations continues during the debt sale process. When selling debts for which tax benefits have been received on the condition of statute completion, the sales contract must specify the expected expiration date of the statute of limitations and the obligation to complete it. The authorities will also monitor and report on whether the buyer fulfills this obligation. Additionally, a system will be established to report and disclose the debt adjustment performance of each financial institution, key details of debt sales, and the status of statute completion. The financial authorities plan to revise the "Guidelines for Debt Collection and Loan Sales" in July and update the "Best Practices for Managing Statutes of Limitations" by industry in August to improve the management system for delinquent loans.* This article has been translated by AI. 2026-06-10 12:06:00
  • New Law Criminalizes Distribution of False Information on Comfort Women
    New Law Criminalizes Distribution of False Information on Comfort Women The new law allows for criminal penalties for the dissemination of false information regarding 'comfort women,' which was previously only punishable under defamation laws. The Ministry of Gender Equality and Family announced on June 10 that the revised law on the protection, support, and commemoration of Japanese military 'comfort women' victims will officially take effect on June 11. This law provides a legal framework for the state to respond more actively to acts of historical distortion that defame the honor of 'comfort women' victims and establishes a systematic protection and management system for memorials, including the Peace Statue. The term 'comfort women' refers to those who were forcibly mobilized and subjected to sexual abuse by the Japanese military during World War II. Despite the victims' long-standing efforts to testify about their experiences and promote human rights and peace, acts of denial, distortion, and dissemination of false information have continued. Particularly, acts of vandalism and insult against memorials, such as the Peace Statue, have caused significant emotional distress for the victims and their families, becoming a social issue. Under the new law, those who disseminate false information about the facts of 'comfort women' through newspapers, broadcasts, the internet, exhibitions, performances, discussions, or press conferences may face up to five years in prison or fines of up to 50 million won. Additionally, the Ministry of Gender Equality and Family will conduct an investigation to assess the status of memorials or sculptures dedicated to 'comfort women' victims. This investigation aims to regularly check the status and preservation of memorials like the Peace Statue across the country and establish a foundation for systematic protection and management of these commemorative spaces. The Ministry has already distributed a standard ordinance on the protection and management of the Peace Statue to local governments and plans to strengthen public management systems for memorials in collaboration with local authorities following the introduction of this investigation system. Minister of Gender Equality and Family, Won Min-kyung, stated, "The courageous testimonies of 'comfort women' victims have left invaluable values of human rights and peace in our society. I hope that with the implementation of this law, the honor and dignity of the victims will be more robustly protected, and that accurate remembrance and education based on historical facts will spread throughout our society."* This article has been translated by AI. 2026-06-10 12:06:00
  • Consumer Coupons Boost South Koreas Economic Growth by 0.12%
    Consumer Coupons Boost South Korea's Economic Growth by 0.12% The consumer recovery coupons distributed to all citizens last year have reportedly increased South Korea's economic growth rate by approximately 0.12%. The Bank of Korea's research department released these findings on June 10 in its "BOK Issue Note" analyzing the economic impact of the consumer recovery coupons. A total of 13.522 trillion won was allocated for the consumer recovery coupons, with about 70% provided through credit cards and the remainder through local love gift certificates and prepaid cards. As of the usage deadline on November 30 of last year, 99.8% of the amount distributed via credit cards was utilized for actual consumption. The Bank of Korea analyzed big data from six credit card companies and estimated that the average monthly sales at locations accepting the coupons increased by 2.91% compared to those that did not. This resulted in an estimated additional sales boost of about 2.8 trillion won nationwide, which corresponds to approximately 30.9% of the financial input (9.1 trillion won based on credit cards). However, the effects were short-lived. The impact from the first round of distribution lasted about two months, while the second round's effects diminished within a month. The Bank of Korea assessed that this indicates the consumer coupons were an effective short-term policy tool in a situation where stabilizing the economy was urgent. In response to concerns that the additional sales increase effect was only around 30% of the financial input, Ha Jung-seok, head of the Bank of Korea's research department, stated, "Rather than definitively judging the efficiency of a specific policy, it is a matter of determining suitable measures based on economic conditions when the government implements fiscal policies. However, it has been observed that there was a short-term effect, indicating it served as a catalyst." Regionally, the effects were most pronounced outside the capital area. While the integrated effect in the metropolitan area was not statistically significant, a 6.37% increase in sales was confirmed in non-metropolitan areas. This suggests that coupon policies can have a greater economic stimulation effect in regions with relatively limited consumer spending capacity. By industry, the largest effects were seen in general merchandise stores, casual dining restaurants, and leisure activities, whereas sales at educational institutions and medical clinics actually decreased. A survey conducted to measure the consumer stimulation effect indicated that the marginal propensity to consume (MPC) from the coupons was estimated at 0.20, meaning that 20% of the coupon spending generated new consumption that did not previously exist. The MPC was higher among lower-income households, with the bottom 20% (first quintile) recording an MPC of 0.25, while the top 20% (fifth quintile) was only 0.17. The Bank of Korea explained that this suggests that differential support targeting low-income groups could further enhance consumption stimulation effects. Comparing the first and second rounds of distribution, the first round (MPC 0.21) slightly outperformed the second round (0.18). The Bank of Korea interpreted this as a result of the reduced amount per person in the second round (100,000 won) compared to the first round (150,000 to 550,000 won), which weakened the perceived impact of the policy. The Bank of Korea concluded that if similar policies are implemented in the future, there is a need for more precise timing, differential support methods, and usage design. By encouraging usage in industries with high inter-industry effects, such as restaurants (impact coefficient 1.18), the overall economic ripple effect could be increased. Additionally, it emphasized the need for policy efforts to enhance productivity and facilitate long-term structural improvements so that small businesses and self-employed individuals can develop resilience without relying solely on financial support.* This article has been translated by AI. 2026-06-10 12:06:00
  • Despite Rising Operating Profit Margins, Distressed Companies Reach Record High
    Despite Rising Operating Profit Margins, Distressed Companies Reach Record High Last year, the overall profitability of South Korean companies improved thanks to a semiconductor boom, yet the proportion of distressed firms unable to cover even their interest payments reached an all-time high. This indicates a deepening polarization and downward leveling among businesses. According to the Bank of Korea's "2025 Corporate Management Analysis" released on June 10, 39.9% of the 34,456 non-financial corporations subject to external audits had an interest coverage ratio below 100%, the highest since the relevant statistics began in 2013. The interest coverage ratio is calculated by dividing operating profit by interest expenses, serving as an indicator of financial health that shows how well a company can pay its interest with its earnings. A ratio below 100% means that after paying interest, a company has no remaining profit, while a ratio below 0% indicates an operating loss. The share of companies with an interest coverage ratio below 0% also rose from 26.2% in 2024 to 28.2% last year, marking the highest level since 2013. The data reveals a significant increase in corporate polarization and downward leveling. The proportion of mid-tier companies (with an interest coverage ratio between 100% and 500%) has decreased by 6 percentage points over the past 12 years. Meanwhile, the share of companies with an interest coverage ratio above 500% fell to a record low of 32.6%, down from 33.1% in 2024. Growth indicators show that the revenue growth rate dropped from 4.2% in 2024 to 2.5% in 2025. In the manufacturing sector, the growth rate declined from 5.2% to 3.2%, primarily driven by decreases in petroleum refining, coke, and chemical products. During the same period, the non-manufacturing sector's growth rate nearly halved, dropping from 3.0% to 1.6%, largely due to declines in construction and transportation and warehousing industries. By company size, the revenue growth rates for large enterprises and small to medium-sized enterprises fell by 1.6 percentage points and 2.1 percentage points, respectively, to 2.8% and 1.2% compared to 2024. Profitability indicators showed that last year, companies' operating profit margin (6.2%) and pre-tax net profit margin (6.3%) improved from 5.4% and 5.2% in 2024. In manufacturing, the operating profit margin rose from 5.5% to 6.9%, and the pre-tax net profit margin increased from 6.3% to 7.6%. In non-manufacturing, the operating profit margin grew from 5.2% to 5.4%, while the pre-tax net profit margin rose from 3.9% to 4.7%. Notably, the electronics, video, and communication equipment sector, which includes semiconductors, reported the highest operating profit margin at 15%, with a net profit margin reaching 18.4%. Im Ji-woo, head of the Bank of Korea's corporate statistics team, explained, "The increase in operating profit margins is attributed to higher sales of value-added products and the growth in operating profit margins of two semiconductor production companies." She added, "This year, the semiconductor manufacturing sector continues to thrive based on demand from artificial intelligence (AI), and it is expected to improve overall indicators." While large companies saw increases in both operating profit margin (from 5.6% to 6.6%) and pre-tax net profit margin (from 5.6% to 6.9%), small to medium-sized enterprises experienced declines (from 4.8% to 4.6% and from 3.6% to 3.5%, respectively). The debt ratio of companies decreased from 103.4% in 2024 to 98.3%. The reliance on borrowed funds also fell from 28.4% to 27.3%. 2026-06-10 12:03:00