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China's 'grains of sand' test South Korea's defenses SEOUL, August 13 (AJP) - Spies are nothing new to South Koreans, who have shared a border with belligerent North Korea for more than seven decades. But they now confront a different kind of suspected spy — Chinese nationals, not necessarily trained by the state but potentially paid to fish for military intelligence. A photograph of a fighter jet. A fragment of radio traffic. The time an aircraft takes off. A glimpse of weapons moving inside a military base. Each piece of information may appear insignificant on its own. Collected repeatedly and put together, however, those fragments can begin to reveal when forces move, how often aircraft operate and what patterns emerge around military exercises. That is at the heart of what security researchers describe as China's "Thousand Grains of Sand" approach to intelligence gathering — relying not only on professional agents stealing highly classified secrets, but potentially on large numbers of people collecting small pieces of information. “China uses an intelligence-gathering strategy that employs large numbers of nonprofessional amateur spies. This is called the ‘Thousand Grains of Sand’ approach,” Yun Min-woo, a professor of police science and security studies at Gachon University, wrote in a recent study. “From this perspective, China assigns limited tasks to large numbers of people and sends them into a target country,” he said. Recent security cases in South Korea suggest that the methods used to collect those pieces of information are also becoming more diverse. According to the Gyeonggi Nambu Provincial Police Agency's Security Investigation Division, a foreign man in his 60s stayed at a hotel near Gunsan Airport in April and set up a receiving system consisting of an SDR receiver, antenna and laptop. Gunsan Airport is home to South Korean air assets and the U.S. Air Force's Gunsan Air Base. Police allege that the man used the equipment to illegally collect air traffic control communications between military aircraft pilots and controllers. Unlike a conventional radio designed around particular frequencies or functions, software-defined radio (SDR) shifts much of the signal processing to software, allowing a computer-linked receiver to monitor and analyze a broader range of frequencies. Police said the suspect was a retired member of his country's military. Investigators also found that he had no previous record of entering South Korea before January 2024 but had since visited the country several times. Some of those visits coincided with periods when South Korean and U.S. air forces were conducting military exercises. The suspect told investigators that listening to civilian aviation communications was a hobby and that he collected military communications because he wanted to listen to fighter aircraft. Police are conducting forensic analysis of his hard drives and laptop to determine his motive and whether anyone was behind his activities. No evidence has yet been made public showing that he was acting under the direction of a foreign government. For counterintelligence officials, however, what information is collected may be only part of the picture. When it is collected can be just as important. Yun said suspected intelligence-gathering incidents involving Chinese nationals in South Korea and overseas showed a recurring pattern: attempts to observe sensitive facilities often coincided with militarily significant events. Cases examined in his study occurred around joint military exercises, missile interception tests, scheduled satellite launches and visits by major naval assets. South Korean cases displayed similar characteristics. “The timing also coincided with events such as military aircraft takeoffs and landings and the arrival of a U.S. aircraft carrier at the Republic of Korea Navy's operational headquarters in Busan.” Repeated observations can therefore become more valuable than a single dramatic breach. From cameras to multifunctional platforms Yun suggests that the evolution is not unique to South Korea. Of 34 suspected Chinese intelligence-related filming or intrusion cases examined in his research across the United States, Europe and the Indo-Pacific, 24 involved military-related targets, including air bases, naval facilities, training grounds, missile ranges, aircraft carriers, defense plants and a nuclear submarine shipyard. What once largely involved photographs taken with smartphones or telephoto lenses has expanded to drones capable of approaching sensitive sites from the air. Drones are also no longer limited to carrying cameras. Radio-detection equipment and other sensors can be mounted on unmanned platforms, allowing them to collect both visual information and electronic signals. “In addition to cameras, drones can be equipped with radio-detection devices and sensors and used as multifunctional platforms,” Yun said. He identifies electronic signals intelligence (SIGINT) as one potential function of drone-based intelligence collection. “Electronic signals can be collected by detecting communications towers, radio frequencies and radar signals,” Yun said. The concept is already moving into military applications. At the Paris Air Show in June 2025, French defense company Thales unveiled a mini electronic warfare payload designed for drones that can passively detect and locate radio signals. The United States has pursued a similar concept. In 2024, the U.S. Department of Defense funded a project called the “Low-Cost Open Source EW Drone,” aimed at combining a high-speed unmanned aircraft with commercially available SDRs, multiple antennas and an onboard processor. The system was designed to identify radio-frequency signals in real time and explore techniques for locating the source of transmissions. Such systems illustrate how drones and SDR technology can change intelligence collection. A drone carrying a camera can show what is happening at a military facility, while a radio frequency (RF) sensor can add another layer by indicating where transmissions originate and when radio activity increases. That makes the distinction between professional espionage equipment and everyday civilian technology increasingly blurred. The advantage of small pieces The “Thousand Grains of Sand” concept helps explain why intelligence services may value information that appears mundane. Instead of depending entirely on a highly trained agent penetrating a secure headquarters and stealing a top-secret document, a broader collection network can accumulate many lower-level observations. “Even if these amateur spies are detected, arrested, deported or punished, there is virtually no spy asset for the Chinese authorities to lose,” Yun wrote. He added that when such actors claim they were merely tourists, students or hobbyists, proving a connection to a state intelligence organization can be difficult. That ambiguity has appeared repeatedly in cases examined in his study. People caught filming sensitive facilities have offered explanations ranging from tourism and curiosity to an interest in aircraft or scenery. Yun argues that investigators should therefore look not only at an individual's explanation but also at repetition, equipment, location and timing. That does not mean every Chinese tourist operating a drone or photographing an aircraft is engaged in espionage. Establishing state direction requires evidence in each case. But Yun argues that repeated incidents involving similar targets should not automatically be assessed in isolation. “Recent unauthorized drone-filming incidents by Chinese nationals should not be understood as individual episodes but rather as part of interconnected and continuing operations within the overall picture,” he said. Counterintelligence moves outside the fence The evolving methods pose a particular problem for South Korea because much of conventional military security is designed around controlling physical access. Fences, gates, guards and restricted zones can prevent unauthorized individuals from entering a base. They do much less against someone staying in a nearby hotel with a radio receiver, operating a camera from a public location or flying a small drone near a sensitive facility. Yun argues that drones could even provide information about a target's security response itself, including its radio environment, detection capabilities and response procedures. The security perimeter may therefore effectively extend beyond the military installation itself. A revised Criminal Act set to take effect Sept. 13 expands the scope of espionage offenses beyond acts conducted for an “enemy state” to include certain activities carried out for a “foreign country or equivalent organization.” Until now, authorities investigating suspected intelligence activities involving countries other than North Korea have often had to rely on other criminal provisions, including Article 99 of the Criminal Act and laws governing military facilities and communications. The new law may provide investigators with stronger legal tools. But technology is evolving alongside the law. “As far as we understand, the case is currently under investigation by the police,” a vice spokesperson at the South Korean Defense Ministry said at a regular briefing Thursday. “The Ministry of National Defense has nothing further to add at this time.” 2026-08-13 18:21:33
Shuttle Business Becomes New Normal for U.S.-Korea Relations Major business leaders from South Korea and the U.S. are increasingly engaging in 'shuttle business,' directly coordinating business matters across both countries. After Jensen Huang, CEO of NVIDIA, visited Korea, South Korean executives including Lee Jae-yong of Samsung Electronics and Chey Tae-won of SK Group met with him again in the U.S. Bill Gates, founder of TerraPower, is also returning to Korea after a year.According to industry sources on August 13, Koo Kwang-mo, chairman of LG Group, is expected to meet with Huang in the U.S. on August 14. The two previously discussed collaboration in physical AI and robotics on June 8 at LG Twin Towers in Seoul.Huang's back-and-forth meetings with South Korean executives have been ongoing since last year. He first visited Korea in October 2022 during APEC, where he met with Lee and Chey. At that time, NVIDIA announced plans for a large-scale AI infrastructure collaboration with Samsung, SK Group, and Hyundai Motor Group. When Huang returned to Korea in June 2023, he met with Chey, Lee, and Koo in succession.A month later, the focus shifted as Lee, Chey, and Lee Hae-jin, chairman of Naver's board, visited NVIDIA's headquarters in California on July 24 to meet with Huang. Chey also met with Huang separately the day before. SK Hynix and NVIDIA expanded their long-term collaboration framework related to next-generation AI memory, including HBM.Similar movements are occurring in the energy sector. Gates is set to visit Korea on August 14 to engage with SK and HD Hyundai. He previously met with Chey and Chung Ki-sun, chairman of HD Hyundai, in Seoul last August. Chey had met Gates in the U.S. in March 2022 to sign an agreement to expand the supply chain for sodium reactors, and they reunited in Davos in January 2023. HD Hyundai Heavy Industries secured a supply quantity for TerraPower's reactor vessels.Industry insiders view the increasing interest from U.S. tech leaders in South Korean companies as a reflection of the changing status of the South Korean economy. The repeated meetings between CEOs signify that South Korean firms are establishing themselves as long-term partners in the global advanced industry supply chain, moving beyond one-time supply contracts.One industry source stated, "In industries like AI and energy, where large-scale investments and long-term collaborations are essential, securing stable technology and production capabilities is crucial. Given that South Korean companies are part of the core supply chain, ongoing exchanges among executives are likely to lead to new investments and joint ventures."* This article has been translated by AI. 2026-08-13 18:04:10
Genesis Launches First Hybrid GV80, Aims to Disrupt U.S. Luxury Market Genesis is set to launch its first hybrid (HEV) system-equipped GV80, marking a significant shift after approximately two years of pivoting from a fully electric strategy due to a temporary slowdown in electric vehicle demand. The brand anticipates synergy in the rapidly growing hybrid market in the United States.On August 13, Genesis unveiled its next-generation hybrid system, designed to maximize the electric driving experience, which will debut in the GV80 hybrid scheduled for release in September. The 2.5 turbo hybrid system features a parallel structure that combines a starter motor and a drive motor.The GV80 hybrid boasts a combined maximum output of 352 horsepower (PS) and a peak torque of 54.0 kgf·m, representing increases of approximately 16% and 26%, respectively, over the existing GV80 gasoline 2.5 turbo model. It can accelerate from a standstill to 100 km/h in about 7.1 seconds.For the first time in Hyundai's hybrid systems, a water-cooled battery system has been implemented, allowing for efficient temperature control that enhances maximum discharge output compared to air-cooled systems, thereby maximizing performance. The system also expands the electric driving range, achieving electric vehicle-level quietness and acceleration.To minimize vibration and noise during cold starts after parking, the GV80 hybrid actively utilizes electric vehicle (EV) mode until reaching approximately 30 km/h. It operates in EV mode in underground parking lots, child protection zones with frequent traffic signals, and congested areas, switching to engine power when exceeding a certain speed on regular roads.Genesis plans to begin domestic sales of the GV80 hybrid, with plans to introduce hybrid versions of the GV70 and other models in the first half of next year. Once production stabilizes, exports to North America and Europe are expected.In the North American market, there has been significant demand for the Genesis hybrid since its development. Last year, 80% of Genesis's overseas sales (101,600 units) occurred in the U.S., indicating strong brand loyalty. An industry insider stated, "If the rapidly growing U.S. hybrid market, which is expanding by 20-30% annually, meets Genesis, which is growing at 10%, it could change the landscape of the U.S. luxury hybrid market, previously dominated by Lexus."* This article has been translated by AI. 2026-08-13 18:04:10
Coway's Overseas Sales Exceed 40% for the First Time, Driven by Customized K-Rental Strategy Coway's overseas sales have surpassed 40% for the first time. The company has successfully implemented localized strategies tailored to the cultural preferences of each country, such as 'K-Rental' in Malaysia and Thailand, and a combination of direct sales and retail channels in the United States.According to Coway, overseas sales for the first half of this year amounted to 1.1245 trillion won, accounting for approximately 40.6% of total consolidated sales of 2.7719 trillion won. This marks the first time that the share of overseas sales has exceeded 40%.The company's international business has shown remarkable growth. Ten years ago, overseas sales represented only 8% of total revenue, but by the end of last year, this figure had risen to 38%. The average annual growth rate for overseas sales over the past five years has been around 20%. As of the second quarter of this year, the number of overseas accounts reached 4.51 million. Coway currently operates seven overseas subsidiaries in Malaysia, the United States, Thailand, Indonesia, and Vietnam, exporting products to over 50 countries.The success of Coway's 'Customized K-Rental' strategy has been evident. In Southeast Asia, including Malaysia, the company has aggressively promoted its successful rental and management services from Korea. In contrast, in Western markets like the U.S. and Europe, where consumers are less familiar with home visits for service, Coway has adopted a dual approach that combines direct sales with local distribution channels.Malaysia stands out as the most successful case. Coway introduced rental and management services there in 2007, differentiating itself by offering regular maintenance visits in a market where consumers typically replaced water purifier filters themselves. The company now holds the top market share in Malaysia's water purifier sector, with consumer awareness exceeding 90%.Coway has also adapted its products and services to reflect local religious and lifestyle practices. Recognizing the high Muslim population, the company became the first in the water purifier industry to obtain local halal certification in 2010. Additionally, it has enhanced its water purifiers to cater to the Southeast Asian preference for hot water. Recently, Coway has expanded its rental offerings to include products such as air purifiers, air conditioners, and massage chairs.As a result, Coway's Malaysian subsidiary reported second-quarter sales of 434.5 billion won, a 22.2% increase compared to the same period last year. The subsidiary's annual sales reached 1.4095 trillion won last year, marking a 21.7% increase from 1.1584 trillion won in 2024, solidifying its position as Coway's largest overseas market.In the United States, Coway has adapted its K-Rental model to fit local lifestyles. The company's dual strategy of operating both a direct sales team and retail channels has proven effective. In the second quarter, U.S. sales reached 66.9 billion won, up 16.3% from 57.5 billion won in the first quarter.To address the local culture, which often prefers limited interaction with outsiders, Coway has strengthened its non-contact filter management system instead of traditional home visits. The company has partnered with Amazon to analyze air purifier filter usage and set up an automatic ordering and delivery service based on replacement needs. Recently, it has developed a third-generation service called 'DART,' which allows customers to check filter life and place orders using Alexa voice commands.Thailand is emerging as a 'second Malaysia' for Coway. Since introducing the Korean rental system in Thailand in 2021, the company has expanded its business based on financial infrastructure and sales personnel. Over the past three years, Coway has recorded an average growth rate of about 30%, broadening its product range to include air conditioners and massage chairs in addition to existing environmental appliances. In the second quarter, sales from the Thai subsidiary reached 66 billion won, a 53.9% increase year-on-year.Coway plans to strengthen its competitive edge in established markets like Malaysia and the United States while also focusing on the establishment and expansion of new subsidiaries in Indonesia and Vietnam.* This article has been translated by AI. 2026-08-13 18:04:10
Blood Product Strategies Abroad: SK Plasma's Technology Transfer vs. GC Green Cross's U.S. Market Focus Domestic pharmaceutical companies are adopting differing strategies for the blood product market abroad. As demand for blood products continues to rise due to an aging population, securing raw plasma and production technology has become a key competitive advantage, leading to distinct strategies.According to H&I Global Research, the domestic plasma-derived product market is projected to grow from $503.1 million (approximately 712 billion won) in 2024 to $770.6 million (approximately 1.09 trillion won) by 2033. Plasma-derived products are protein-based medicines produced by fractionating and purifying human plasma, requiring advanced technology from raw material acquisition to production and quality control. Only about 30 companies worldwide possess the relevant technology.In South Korea, SK Plasma and GC Green Cross are accelerating their efforts in the blood product market. SK Plasma is expanding its 'essential medicine self-sufficiency solution,' which combines plant construction and technology transfer in countries lacking plasma fractionation technology. This model goes beyond mere exports to establish local production bases.A prime example is Indonesia, where SK Plasma is constructing a plasma fractionation center with an annual capacity of 600,000 liters in the Karawang region. The company has completed machinery installation and is currently undergoing Good Manufacturing Practice (GMP) certification. Once certified, operational staff will be trained at the Andong plant before being deployed to the site. An SK Plasma representative stated, "Training is currently underway at the Andong plant, and we aim to have the Indonesian facility operational by next year."The project in Turkey follows a similar approach. SK Plasma has signed a technology transfer and licensing agreement worth 65 million euros (approximately 106.2 billion won) with local company Proturk and recently held a groundbreaking ceremony for a plasma fractionation plant. The facility, which will have an annual production capacity of 600,000 liters, is expected to be completed in the second half of 2028, with commercial production targeted for 2030.GC Green Cross is focusing its efforts on the U.S. market, the largest in the world. Its liquid immunoglobulin product, Aliglo, is the first blood product developed by a domestic company to receive approval from the U.S. Food and Drug Administration (FDA).Unlike other countries, the U.S. allows paid plasma donations, making it relatively easier to secure plasma. According to FDA data, there are 1,234 active plasma collection centers operating in the U.S. as of 2024.Last year, Green Cross invested 138 billion won to acquire ABO Holdings, a U.S. blood center operator, to establish a supply chain. The strategy aims to strengthen its supply base, as stable raw material acquisition is directly linked to production competitiveness.Investment continues, with a recent agreement with Chungcheongbuk-do and Cheongju City to invest a total of 530 billion won in the Ochang plant by 2033. Of this, approximately 140 billion won will be allocated to establish production facilities for a 20% high-concentration subcutaneous immunoglobulin (SCIG).Jung Yoon-taek, head of the Pharmaceutical Industry Strategy Research Institute, stated, "As demand for plasma-derived products continues to grow due to aging, securing stable plasma is key to competitiveness, given that it relies on donations. The high entry barriers in production processes and quality control mean that only companies with long-term investments and accumulated know-how can remain competitive."* This article has been translated by AI. 2026-08-13 18:04:00
Chip boom masks Korea's demand-led disinflation risk SEOUL, August 13 (AJP) - Before U.S. inflation eased in July, South Korea's data were already flashing signs of a disinflationary turn, as sluggish consumption weakened the transmission of strong chip-led growth into broader price pressure and defied expectations that inflation would accelerate further in the second half. The consumer price index stood at 119.77 in July, up 2.8 percent from a year earlier but easing from 3.2 percent in June, bringing inflation below 3 percent for the first time in three months. The living-cost index slowed to 2.5 percent from 3.4 percent, fresh-food prices fell 2.3 percent and petroleum-product inflation eased to 15.5 percent from 24.7 percent. The government estimated that its petroleum-price ceiling lowered July inflation by about 0.3 percentage point, suggesting that part of the headline moderation reflected easing energy pressure and administrative intervention. The divide between production and consumption was also visible in the second quarter, when all-industry output rose 0.9 percent from the previous quarter while retail sales fell 1.7 percent. Core inflation excluding food and energy, however, edged up to 2.6 percent from 2.5 percent, its highest reading since December 2023. That makes it too early to declare a broad disinflationary shift. Disinflation means prices are rising more slowly rather than falling outright. For Korea, the concern is that weaker household demand could increasingly become the force driving that slowdown. The structural disconnect was already flagged in a Bank of Korea report on the inflationary effects of sectoral growth disparities released on Feb. 27. In comments accompanying the report, Jeong Won-seok, a deputy director in the BOK's Research Department, said income gains among higher-income households were being absorbed more by savings and asset accumulation, weakening the channel from income to consumption and ultimately inflation. The BOK estimated that the marginal propensity to consume among households in the top two income quintiles fell to 0.07 in 2022 and 2023 from 0.11 in 2020 and 2021. That compared with 0.17 for middle-income households and 0.19 for lower-income households. The same study estimated that even if overall economic growth reaches around 2 percent this year, growth excluding information-technology manufacturing could remain in the low-to-mid 1 percent range. That gets to the heart of Korea's inflation puzzle. When income and growth are concentrated among richer households and a handful of chipmakers, strong headline growth generates less consumption — and therefore less inflation pressure — across the broader economy. "Employment is not increasing, while bonuses are often put into retirement accounts rather than spent immediately, leaving little wage-driven inflationary pressure," Park Jeong-woo, an economist at Nomura Securities, said at a media briefing in Seoul on June 12. Park forecast that supply-driven inflation would peak around August or September before easing and that the investment spillover from the chip boom would weaken after the third quarter. That would leave domestic demand more exposed if semiconductors make a smaller contribution to growth, potentially stripping away the buffer that has so far masked weakness across much of the rest of the economy. A similar moderation emerged in the United States, where annual consumer inflation eased to 3.4 percent in July from 3.5 percent and core inflation slowed to 2.5 percent from 2.6 percent. U.S. consumer prices rose just 0.1 percent from June and core prices gained 0.2 percent, as falling gasoline prices offset part of the remaining energy pressure. Yelena Shulyatyeva, senior U.S. economist at The Conference Board, said in an Aug. 7 labor-market assessment that average hourly earnings had moved closer to their pre-pandemic pace, underscoring the absence of meaningful wage-inflation pressure. The U.S. and Korean economies are not identical, but both show signs that supply shocks are producing fewer second-round effects through wages and household spending. There are reasons, however, to be cautious about reading too much into Korea's July numbers. Kim Sung-soo, a fixed-income analyst at Hanwha Investment & Securities, said in July that inflation was likely to remain elevated for another six months to a year. The BOK also expects headline inflation to rise in August because of a base effect from last year's mobile-service discounts and sees a risk that earlier cost shocks will continue to pass through into core consumer prices. The decisive test will therefore be whether core and service inflation weaken alongside consumption and employment once temporary energy and base effects fade. If they do, July's moderation could look less like a one-off reprieve and more like an early warning of demand-led disinflation. ___________________________________________________________________________________ AJP Takeaways • Korea's headline inflation slowed to 2.8 percent in July and its living-cost index eased to 2.5 percent, but core inflation rose to 2.6 percent. • BOK research and Nomura's analysis suggest Korea's chip-led growth is generating limited spillovers into household consumption, wages and broader consumer-price pressure. • U.S. inflation also moderated in July, but energy risks and sticky Korean core inflation mean demand-led disinflation has not yet been firmly established. 2026-08-13 18:00:53
Daishin Securities Reports 243% Surge in Q2 Net Profit Driven by Increased Trading Volume Daishin Securities has reported significant performance improvements for the second quarter of this year, driven by increased trading volume and expanded valuation gains on its securities holdings.According to Daishin Securities, the consolidated operating profit for the second quarter (April to June) reached 359.9 billion won, a 165.2% increase compared to the same period last year. Pre-tax profit for the same period rose to 320.7 billion won, up 196.0%, while net profit surged to 257.8 billion won, marking a 242.8% increase.Compared to the previous quarter, the growth in operating profit was notable. The operating profit for the second quarter was approximately 3.5 times higher than the 102.5 billion won reported in the first quarter. The second quarter's operating revenue totaled 2.55 trillion won, with operating expenses amounting to 2.19 trillion won.For the first half of the year (January to June), the cumulative consolidated operating revenue was 4.95 trillion won, with operating profit recorded at 462.4 billion won. The net profit attributable to the controlling shareholders was 408.4 billion won.On a separate basis, Daishin Securities also showed improved performance. The standalone operating profit for the second quarter was 327.5 billion won, a 58.8% increase from the 206.2 billion won in the first quarter. The net profit for the same period was 244.2 billion won.The company's total assets also expanded. As of the end of June, Daishin Securities' consolidated total assets stood at 42.59 trillion won, an increase of about 4 trillion won from 38.63 trillion won at the end of March.The fair value measurement financial assets increased from 17.46 trillion won to 19.81 trillion won during the same period. The equity capital was reported at 4.55 trillion won, with the equity attributable to the controlling shareholders amounting to 4.54 trillion won.A representative from Daishin Securities stated, "The increase in trading volume has led to higher commission and credit income, and the valuation gains on our securities holdings have also risen. All subsidiaries, including F&I and savings banks, have contributed to this performance improvement."* This article has been translated by AI. 2026-08-13 18:00:10
Stigma Effect Larger Than Expected as Penny Stocks Plunge Up to 28% Shares of Lab Genomics, a KOSDAQ-listed company, were priced at 2,560 won last August. However, the stock has plummeted to the 600 won range this month due to poor performance. As a result, the company was designated as a managed stock on the 12th due to its low stock price. If the stock price does not exceed 1,000 won for more than 45 trading days within the next 90 days, it faces delisting. To avoid this, the company will hold an extraordinary general meeting on the 18th to propose a 5-for-1 stock consolidation and has added real estate leasing to its business scope through a charter amendment.Following stricter delisting criteria, 36 companies with low stock prices and market capitalization were designated as managed stocks, leading to a sharp decline in their stock prices on the 13th. Analysts attribute this to the stigma effect of being labeled as a managed stock, which has impacted investor sentiment. Companies facing immediate pressure are preparing last-ditch efforts to escape delisting.Stocks at Risk of Delisting Plunge Up to 28%According to the Korea Exchange, a total of 36 companies were designated as managed stocks due to failing to meet stock price and market capitalization criteria as of the previous day (12th). This includes nine from the KOSPI and 27 from the KOSDAQ. The stock prices of these companies dropped sharply as trading began on the 13th.Among the 27 KOSDAQ-listed companies designated as managed stocks, 23 saw their stock prices decline compared to the previous day, with an average drop of 8.1%. As concerns over delisting became a reality, investor sentiment quickly froze. The nine companies on the KOSPI have already halted trading.The largest drop was recorded by Noeul, whose stock price fell from 656 won on the 12th to 469 won, a decrease of 28.51%. E8 also dropped 21.95%, from 706 won to 551 won, while SDN fell 19.91%, from 693 won to 555 won. Other companies, including Woori Enterprise (-18.87%), East Aid (-14.67%), and Chaperon (-14.66%), also experienced double-digit declines.In contrast, only four companies saw their stock prices rise. CMG Pharmaceutical closed up 10.18% at 671 won, while Hantop (5.72%), Fashion Platform (3.19%), and Ice Cream Edu (0.11%) also posted slight gains.Responses Vary: Stock Consolidation, Legal Action, and MoreBeing designated as a managed stock does not immediately mean delisting. However, for penny stocks, they must raise their prices above 1,000 won for 45 trading days within the next 90 days to avoid delisting, a challenging requirement.Consequently, companies designated as managed stocks are taking various measures to escape delisting. A common strategy is stock consolidation. JM-I and BK Holdings both decided on a 5-for-1 stock consolidation, while Lab Genomics plans to implement its consolidation on the 18th. Among the 36 companies designated as managed stocks, 20 have decided or implemented stock consolidations or buybacks. Four companies, including JM-I, SDN, Omni System, and Fashion Platform, have opted for both stock consolidation and buybacks.More companies are expected to pursue legal action. Some have already filed injunctions related to their designation as managed stocks. The Korea Exchange is also considering strengthening its internal organization to prepare for potential legal responses from companies.The push for legal action stems from concerns over shareholder lawsuits against management due to the revised Commercial Act's 'duty of loyalty' for directors. If a company designated as a managed stock subsequently faces delisting, minority shareholders are likely to sue the management.Lee Hyung-jin, a lawyer at Barun Law LLC's delisting response team, stated, "As the criteria for market capitalization are raised, companies at risk of being designated as managed stocks are also ramping up their responses. For companies struggling to meet stock price and market capitalization requirements, it is becoming more common to consider legal actions such as injunctions from the stage of being designated as managed stocks." 2026-08-13 18:00:10
Special Prosecutors Charge Four in Investigation of Marine's Death The Special Prosecutors' Team, led by Kwon Chang-young, has charged four individuals, including former Gyeongsangbuk-do Police Chief Choi Joo-won, with obstruction of justice and leaking information related to the death of Marine Chae Soo-geun.On August 13, the Special Prosecutors announced that they have charged Choi and former Gyeongbuk Police Investigation Division Chief Noh Gyu-ho with abuse of authority, while former Presidential Office Civil Affairs Secretary Lee Si-won and former National Security Office Defense Secretary Lim Gi-hoon were charged with leaking official secrets, all without detention.According to the Special Prosecutors, Choi and Noh were aware that the case records related to the Chae incident had been legally transferred to the Gyeongbuk Police under the revised Military Court Act, yet they received the records from the Ministry of National Defense's prosecution office. The Special Prosecutors concluded that they abused their authority to obstruct the investigation by the Gyeongbuk Police's serious crime investigation unit.Lee and Lim are accused of leaking the investigation plan just before the Gyeongbuk Police's raid on the Marine Corps' 1st Division on September 7, 2023. The Special Prosecutors believe that Lee, having received the search warrant plan from a National Investigation Agency official, passed it to Lim, who then leaked it to officials at the Ministry of National Defense, ultimately informing the Marine Corps.The Special Prosecutors stated, "We conducted a thorough investigation based on testimonies and evidence and have charged the individuals accordingly. We will make every effort to prove the charges in the upcoming trial proceedings."* This article has been translated by AI. 2026-08-13 18:00:00
Xdinary Heroes' Gunil Leaves the Band, JYP Ends Contract Band Xdinary Heroes member Gunil has left the group.JYP Entertainment announced on August 13 that "Gunil has officially departed from Xdinary Heroes and will conclude his activities with the team."The agency stated, "We are deeply aware of the seriousness of the situation regarding member Gunil and have had extensive discussions with the artist. As a result, we have mutually agreed to terminate the exclusive contract, concluding that it is no longer feasible for him to continue with the group."They added, "We sincerely apologize to fans for the sudden news and any concern it may have caused."Xdinary Heroes will continue to operate as a five-member group. JYP Entertainment assured that they will provide comprehensive support to help the remaining members focus on their music activities.Previously, online controversy arose when a netizen claiming to be Gunil's ex-girlfriend shared allegations and audio recordings. The recordings reportedly contained inappropriate remarks directed at fans, although it has not been confirmed whether the voice in the recordings belongs to Gunil.Gunil debuted with Xdinary Heroes in 2021 and served as the band's drummer.* This article has been translated by AI. 2026-08-13 18:00:00