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  • Launch of 1 Trillion Won LP Growth Fund with 340 Billion Won from Private Sector
    Launch of 1 Trillion Won LP Growth Fund with 340 Billion Won from Private Sector The Ministry of SMEs and Startups and Korea Venture Investment Corp. announced on August 13 that they held the launch ceremony for the 'LP (Limited Partner) Growth Fund' and the 'Third Quarter Fund of Funds Policy Forum' at the Startup Venture Campus (SVC) in Seogyo-dong, Seoul.The LP Growth Fund is an investment platform designed to facilitate participation from various investment institutions in venture capital. It is jointly established by pension funds, financial institutions, industry, and the government.The government has structured a two-track investment program through self-funds or master funds, providing benefits such as priority loss coverage and put options to encourage diverse private investment institutions to engage in venture capital.This LP Growth Fund marks a significant step for the Fund of Funds to evolve into a 'next-generation venture investment platform' that attracts new investors and expands pension fund contributions. Among the 18 participating institutions, five are entering venture capital investments for the first time through this fund.Typically, the government’s contribution ratio is around 60%, but it has been reduced to 20% in this case, enhancing the multiplier effect of government finances by more than five times. A total of 510 billion won will be raised for the 1 trillion won venture fund, with 340 billion won from the private sector and 170 billion won from the Fund of Funds.The Ministry plans to focus the fund on strategic industries. It will create a specialized defense fund worth 110 billion won in collaboration with a consortium of the Export-Import Bank of Korea and BNK Financial Group. Additionally, a 250 billion won open innovation fund will be launched, involving companies such as Naver, Hyosung, GS, Seonik Systems, Far East Logistics Group, and Taehwa Group, focusing on artificial intelligence (AI), beauty, bio, and defense sectors.The first investment project will be announced on August 14, and the selection of fund managers is expected to proceed within the fourth quarter.Following the fund launch ceremony, the policy forum addressed the prerequisites for private investors to incorporate venture capital as a key component of long-term asset allocation.Acting Minister of SMEs and Startups No Yong-seok stated, "The government must prepare for the era of Fund of Funds 2.0, where national capital flows into venture capital, moving beyond just being a provider of initial funding. We will strengthen the role of the Fund of Funds as a next-generation venture investment platform through this fund launch."* This article has been translated by AI. 2026-08-13 17:56:20
  • Caution Advised for Samgyetang Consumption with Certain Health Conditions
    Caution Advised for Samgyetang Consumption with Certain Health Conditions As the summer season approaches its peak, many people are turning to samgyetang, a traditional Korean chicken soup made with ginseng and other ingredients, known for its health benefits. However, it is not suitable for everyone. Those with hypertension or chronic kidney disease, who need to monitor their sodium and protein intake, should be cautious about consuming the broth in samgyetang.According to the Food and Drug Safety Ministry's nutritional database, samgyetang contains 101 calories, 10.68 grams of protein, 4.80 grams of fat, and 82 milligrams of sodium per 100 grams. The total serving size is typically around 900 grams, meaning actual intake can vary significantly based on how much is consumed.Particular attention should be paid to the broth, as high sodium intake can lead to fluid retention and increased blood pressure. The World Health Organization recommends that adults limit their daily sodium intake to less than 2,000 milligrams, or less than 5 grams of salt. Reducing sodium intake has been shown to help lower blood pressure.Therefore, individuals with hypertension or those advised to follow a low-sodium diet should consider reducing their broth consumption and avoid adding extra salt or sauces when eating samgyetang.Additionally, pairing samgyetang with side dishes like kimchi or radish can further increase sodium intake, necessitating caution.People with chronic kidney disease should not automatically consider samgyetang a health food. The Korea Disease Control and Prevention Agency emphasizes the importance of low-sodium diets, appropriate protein intake, and electrolyte management in managing chronic kidney disease.The National Institute of Diabetes and Digestive and Kidney Diseases in the U.S. also advises that patients with chronic kidney disease may need to adjust their protein intake based on their condition, and sodium, potassium, and phosphorus intake should be tailored to individual kidney function and blood test results. Consuming too little protein can lead to malnutrition, so it is crucial to consult healthcare professionals or nutritionists to determine appropriate intake levels.Especially for those undergoing dialysis or with varying kidney function, it is advisable to avoid consuming large amounts of chicken during the summer.While samgyetang can provide a good source of protein, it is often consumed with rice and side dishes, which can add to overall caloric intake.For individuals managing their weight or blood sugar levels, it is important to control overall meal portions rather than consuming an entire bowl of samgyetang with rice.Eating samgyetang is not inherently unhealthy. In fact, chicken can be a high-quality protein source. The issue arises from the mindset that 'health food can be eaten in excess.'Nutrition and hygiene are also critical when consuming samgyetang during the summer. The Food and Drug Safety Ministry warns about the risk of foodborne illnesses from pathogens like Campylobacter jejuni and Salmonella. It is essential to cook chicken thoroughly and prevent cross-contamination by keeping raw chicken separate from other ingredients and utensils.When preparing samgyetang at home, care should be taken to avoid splattering bacteria onto surrounding surfaces during the washing process, and the chicken must be cooked thoroughly.Ultimately, samgyetang is not a food that should be consumed in excess, even for healthy individuals. Those with hypertension or chronic kidney disease should not disregard their dietary guidelines simply because it is summer. Consulting with healthcare professionals to manage dietary intake based on individual health conditions and test results is the safest approach. Even those without specific health issues can enjoy samgyetang more freely by reducing broth and salt intake and controlling overall meal portions. 2026-08-13 17:56:10
  • Mirae Asset Securities Reports Record Earnings, Analysts Lower Price Targets
    Mirae Asset Securities Reports Record Earnings, Analysts Lower Price Targets Mirae Asset Securities, which announced record earnings on August 12, is facing a cautious evaluation from analysts. Despite reporting nearly 3 trillion won in net profit for the first half of the year, several brokerages have lowered their price targets.According to FnGuide on August 13, among 14 brokerages that issued reports on Mirae Asset Securities from August 12 to that day, 11, excluding NH Investment & Securities, Daol Investment & Securities, and Hana Securities, have reduced their price targets. LS Securities set the lowest target at 40,000 won, while Yuanta Securities proposed a target of 75,000 won.Mirae Asset Securities recorded a consolidated net profit of 1.9052 trillion won for the second quarter, marking a 369.4% increase year-on-year and a 90.2% increase from the previous quarter. This is the first time in the securities industry that a company has surpassed 1 trillion won in net profit for two consecutive quarters, following 1.01 trillion won in the first quarter. The cumulative net profit for the first half of the year reached 2.9072 trillion won, up 337.8% from the same period last year.The issue lies in the fact that the key factor driving these results also increases uncertainty for future performance. Mirae Asset Securities earned 1.6242 trillion won from the valuation gains of its investment in SpaceX during the second quarter, which accounted for 64.2% of its pre-tax profit of 2.5287 trillion won. If SpaceX's stock price declines, the valuation gains could turn into losses, leading to greater volatility in earnings.Indeed, SpaceX's stock price fell below the initial public offering price of $135 from July 16 to August 11. After rising over $200 shortly after its listing on June 12, the stock experienced significant volatility, including a 16.43% drop in a single day on June 22.KB Securities has adjusted its forecast for Mirae Asset Securities' net profit attributable to shareholders for this year down by 16.4% to 2.9 trillion won. They believe that the volatility of the approximately 5 trillion won value of its SpaceX shares contributes to profit uncertainty. They also noted that a 10% movement in SpaceX's stock price could lead to a pre-tax profit fluctuation of about 500 billion won.The outlook for the core business in the second half of the year is also challenging. Since July, trading volumes have decreased, and increased market volatility may lead to a slowdown in brokerage revenues. Samsung Securities recently raised its cost of capital from 9.4% to 11.3% and lowered its sustainable return on equity from 12.2% to 11.7% in response to the increased market volatility and adjustments in the domestic stock market.Jeon Bae-seung, a researcher at LS Securities, stated, "Given the decline in SpaceX's stock price, reduced trading volumes, and increased market volatility, a decrease in profit size in the second half is inevitable." Lim Hee-yeon, a researcher at Shinhan Investment Corp., also noted, "While the results are historic, a significant portion of the net profit comes from valuation gains on investment assets, so it is necessary to distinguish between recurring earnings and one-time factors."Meanwhile, on that day, Mirae Asset Securities closed at 38,050 won, up 1,550 won (4.25%) from the previous trading day. Following a 2.82% increase the day before its earnings announcement, the stock has shown strength for two consecutive trading days, but it remains at half the 52-week high of 87,800 won recorded on May 6.* This article has been translated by AI. 2026-08-13 17:56:00
  • Samsung Electro-Mechanics Outperforms Samsung Electronics with 31.61% August Gain
    Samsung Electro-Mechanics Outperforms Samsung Electronics with 31.61% August Gain Samsung Electro-Mechanics is experiencing a resurgence in its stock price. After reaching an all-time high of 2,417,000 won on June 19, the stock had previously declined but is now on an upward trend. In the past month, it has significantly outperformed its affiliate, Samsung Electronics, driven by strong expectations for increased demand for multilayer ceramic capacitors (MLCC) due to expanded investments in artificial intelligence (AI) servers.According to the Korea Exchange, Samsung Electro-Mechanics closed at 1,503,000 won on August 13, up 16,800 won (12.58%) from the previous trading day. This marks a 31.6% increase from the end of July, when it was priced at 1,142,000 won. In contrast, Samsung Electronics saw a modest rise of only 2.1%, moving from 262,500 won to 268,000 won during the same period, making Samsung Electro-Mechanics' growth rate approximately 15 times higher.Analysts attribute the strong performance of Samsung Electro-Mechanics to an improving market for MLCCs. The company collaborates with Japan's Murata Manufacturing to produce high-voltage, high-capacity MLCCs for AI servers. Yuanta Securities noted in a recent report that Samsung Electro-Mechanics is discussing long-term supply agreements (LTAs) to meet the demand for high-performance AI servers and is also exploring ways to expand production capacity using advance payments.The company's substrate business is also expected to benefit from increased AI investments. Capital expenditures (CapEx) from four major North American tech companies—Google, Amazon, Microsoft, and Meta—are projected to rise by 82.5% in 2026 compared to the previous year, with an additional 35.3% increase expected in 2027.Additionally, a positive outlook from Morgan Stanley has contributed to the stock's rise. The firm recently upgraded Samsung Electro-Mechanics to its top pick, citing expectations for rising MLCC prices, and raised its target price from 2,560,000 won to 2,620,000 won.Meanwhile, the KOSPI index closed at 6,813.34, up 3.56% from the previous trading day, buoyed by strong semiconductor stocks. Foreign investors purchased a net 2.1191 trillion won, while institutions bought 680.7 billion won. In contrast, individual investors sold a net 2.7333 trillion won. The KOSDAQ index also rose, closing at 861.37, up 0.29%, marking its fourth consecutive day of gains.* This article has been translated by AI. 2026-08-13 17:56:00
  • KDB Life Insurance Finds New Owner in Korea Investment Holdings
    KDB Life Insurance Finds New Owner in Korea Investment Holdings The Korea Development Bank has selected Korea Investment Holdings as the preferred bidder for the sale of KDB Life Insurance. This marks Korea Investment Holdings' first foray into the insurance industry.According to financial sources on August 13, the Korea Development Bank held an investment review committee meeting and designated Korea Investment Holdings as the preferred bidder for KDB Life Insurance. The sale involves 116.32 million common shares held by the bank, representing approximately 99.75% of the company.The bidding process, which closed on August 7, saw participation from Korea Investment Holdings, Hanwha Life, and Heungkuk Life. Reports indicate that Korea Investment Holdings proposed a capital increase of up to 1 trillion won following the acquisition. Specific details regarding the purchase price and capital increase conditions have not been disclosed.Korea Investment Holdings has subsidiaries in securities, asset management, savings banks, and capital, but does not currently own an insurance company. In the first half of this year, the group's net profit reached 1.915 trillion won, with Korea Investment Securities accounting for 1.731 trillion won, or 90.4% of the total. The acquisition of KDB Life Insurance is expected to diversify the group's securities-focused business structure.As of the end of March, KDB Life Insurance reported total assets of 16.5576 trillion won. The company employs approximately 700 exclusive agents and has a network of corporate insurance agencies. It is anticipated that Korea Investment Holdings will leverage the long-term funds of the insurance company alongside the investment capabilities of its securities and asset management subsidiaries.The sale of KDB Life Insurance has been pursued by the Korea Development Bank since acquiring the former Kumho Life in 2010. Previous attempts in 2014, 2020, and 2023 to sell the company to JC Partners and Hana Financial Group, respectively, were unsuccessful. If this transaction is finalized, it will mark the completion of the KDB Life Insurance sale after seven attempts.* This article has been translated by AI. 2026-08-13 17:56:00
  • JYP Entertainment Q2 operating profit falls 41% as tour, merchandise sales drop
    JYP Entertainment Q2 operating profit falls 41% as tour, merchandise sales drop SEOUL, August 13 (AJP) - JYP Entertainment's second-quarter operating profit fell 41.4 percent from a year earlier as lower concert and merchandise revenue outweighed stronger album and digital music sales. Operating profit for the April-June period came to 31 billion won ($21.7 million), down from 52.9 billion won a year earlier and 7.1 percent from the first quarter. The result was 18.7 percent below the FnGuide consensus of 38.1 billion won. The operating margin narrowed to 16.9 percent from 24.5 percent a year earlier, while the gross profit margin fell 3.1 percentage points to 38.7 percent. Revenue declined 15.1 percent on year to 183.1 billion won, 8.5 percent below the market estimate of 200.1 billion won. JYP attributed the decline largely to a high comparison base from Stray Kids' large-scale concerts and merchandise sales in the same period last year. Concert revenue fell 35.7 percent to 39.9 billion won as the number of major performances declined, despite tours by TWICE, DAY6, ITZY and NMIXX. Merchandise revenue dropped 34.5 percent to 43.9 billion won, reflecting the absence of large online merchandise sales and a high base from Stray Kids' tour merchandise a year earlier. Appearance revenue also fell 28 percent to 7 billion won. Music sales were stronger. Album revenue rose 36.7 percent to 37 billion won as Stray Kids' back-catalog shipments climbed to 420,000 copies from 120,000 a year earlier and JYP released five major new albums, up from three in the same period last year. Digital music revenue jumped 71.6 percent to 19.7 billion won, helped by stronger overseas demand and a reclassification of YouTube revenue. Advertising revenue increased 20.5 percent to 13.6 billion won. The weaker revenue mix and higher costs also weighed on profitability. Content production costs increased 25.9 percent from a year earlier, while selling and administrative expenses rose 6.9 percent even as overall revenue declined. Net income fell 40.3 percent to 21.7 billion won, coming in 27.8 percent below the FnGuide consensus of 30.1 billion won. JYP said it expects Stray Kids to drive stronger IP monetization in the second half through the group's new mini album "THIS & THAT," its "RUN IT" world tour, festivals and expanded merchandise and licensing businesses. The company plans to extend the tour into more regions in 2027 while expanding SKZOO pop-up stores and collaborations with global IP partners. It also expects more than 200 concerts across its artist roster in 2026. SKZOO is Stray Kids' official character brand, featuring animal-inspired characters modeled after the group's eight members and used across merchandise, pop-up stores and licensing collaborations. JYP Entertainment shares closed at 40,850 won, down 11.2 percent, or 5,150 won, on Thursday. AJP Takeaway · JYP Entertainment’s second-quarter operating profit fell 41.4 percent to 31 billion won, missing the FnGuide consensus by 18.7 percent, as weaker concert and merchandise sales outweighed gains in music. · Revenue declined 15.1 percent to 183.1 billion won, with concert and merchandise revenue down 35.7 percent and 34.5 percent, respectively, against a high base from Stray Kids’ activities a year earlier. · Album revenue rose 36.7 percent and digital music revenue jumped 71.6 percent, but the stronger music business was not enough to prevent the operating margin from falling to 16.9 percent from 24.5 percent. 2026-08-13 17:55:36
  • Korea still looks cheap on paper. Why doesnt it feel that way?
    Korea still looks cheap on paper. Why doesn't it feel that way? SEOUL, August 13 (AJP) - South Korea can still look remarkably cheap to someone arriving from New York or Berlin. For Koreans earning and spending in won, it increasingly does not feel that way. Years of rising prices have made more spending discretionary as household incomes struggle to keep pace, squeezing what remains after necessities. Yet for visitors earning dollars or euros, a restaurant bill or cab fare in Seoul can still look like a bargain. A three-course meal for two at a mid-range restaurant costs about $140 in New York, compared with 92,500 won ($65) in Seoul, according to Numbeo, the crowdsourced global cost-of-living database. Numbeo puts a mile of standard taxi travel at about $3.50 in New York against 1,327 won in Seoul, excluding the starting fare. Miki Vranjes is spending a month in Korea partly because of that price appeal. "You should see how expensive things are in Germany," he said. "The price for anything in Germany is insanely high." Fresh from her previous stop in Tokyo, Cortney Haze sees less of a bargain. "I don't think I find prices for anything in Korea extraordinarily cheap compared to the United States or even Japan, to be completely honest," she said. At some restaurants, she noted, burgers can run above $10. The exchange rate explains part of the divide. The won weakened sharply during the first half of the year, with the dollar-won rate averaging above 1,530 around the end of June. It has since recovered to around 1,422 won per dollar, strengthening roughly 7 percent from that level. Even after the rebound, the exchange rate continues to make many Korean prices look relatively low when converted into dollars. That distinction — cheap after currency conversion versus affordable on a Korean paycheck — runs through the numbers. The Middle East war added another burst of inflation this spring as energy costs surged. OECD-wide inflation climbed to 4.6 percent in May as energy inflation reached 15.8 percent, before headline inflation eased to 4.2 percent in June. The OECD has said the conflict has pushed up energy and other input prices while squeezing real incomes. Korea's consumer inflation slowed to 2.8 percent in July from 3.2 percent in June, helped by falling petroleum prices. U.S. inflation similarly eased to 3.4 percent in July from 3.5 percent in June and 4.2 percent in May. Germany moved the other way last month, with inflation rebounding to 2.8 percent in July from 2.3 percent in June. Cheap compared with where? The OECD's comparative price data broadly support the impression that Korea remains inexpensive relative to many advanced economies. Its monthly comparative price levels measure the cost of a representative basket of consumer goods and services using purchasing-power estimates and market exchange rates. That means currency swings can change the comparison even when domestic sticker prices do not. Rebasing the OECD's May figures to make each comparison country equal to 100 puts Korea at about 71 against Germany and 58 against the United States. Against Japan, Korea stands much closer, at about 93. That makes Haze's reaction understandable. Korea looks substantially cheaper beside Germany or the United States, but much less so after a stop in Japan. Individual purchases make the point even more vividly. A Big Mac in Korea costs 5,700 won, after McDonald's Korea raised prices in February. In Japan, McDonald's currently lists one from 500 yen. Korea's Big Mac is therefore actually more expensive in dollar terms at current exchange rates — roughly $4 versus a little over $3 in Japan. Taxi fares tell a different story. A standard Seoul taxi starts at 4,800 won for the first 1.6 kilometers, then adds 100 won for every 131 meters. In Berlin, the base fare is 4.30 euros, followed by 2.80 euros per kilometer for the first three kilometers. When income does not keep up Lee Dong-hyun, a 35-year-old office worker in Seoul, said a familiar joke among his friends — that prices rise every year while salaries barely move — has become increasingly difficult to laugh about. "I feel like I work all day at the office, doing a lot but somehow accomplishing nothing, and at the end of it there's nothing left in my bank account," he said. His routine is mostly work and home, with money going to meals, coffee, dinner and exercise. Even without large purchases, Lee estimates he spends around 2 million won a month. He has considered cooking more often, but groceries do not feel particularly cheap either. Official household data explain why the squeeze persists even as headline inflation eases. Average monthly household income rose 2.4 percent from a year earlier to 5.481 million won in the first quarter. After inflation, real income increased just 0.4 percent. Consumption spending, meanwhile, jumped 5.3 percent to 3.105 million won, or 3.1 percent in real terms. The average household surplus fell 3.1 percent to 1.239 million won. And the latest wage data suggest the squeeze has not disappeared. Real wages fell 1.4 percent in May, the second consecutive monthly decline, as inflation outpaced nominal pay growth. That is why slowing inflation does not necessarily feel like falling prices. It means prices are rising more slowly from levels that households already regard as high. For a visitor converting dollars or euros, Korea can therefore remain relatively inexpensive. For a Korean worker measuring those same prices against a paycheck, the arithmetic can look very different. AJP Takeaways • Korea remains considerably cheaper than the U.S. or Germany on broad international price comparisons, although its gap with Japan is much narrower. • Exchange rates amplify Korea's apparent cheapness for foreign visitors, even after the won's roughly 7 percent rebound from its late-June lows. • Korean households face a different equation: real household income rose just 0.4 percent in the first quarter while consumption spending climbed 5.3 percent and household surpluses fell. 2026-08-13 17:53:08
  • Startup Initiative Resumes Amid Security Concerns Over Data Breach
    Startup Initiative Resumes Amid Security Concerns Over Data Breach The Ministry of SMEs and Startups has resumed the second phase of the 'Everyone's Startup' initiative, which was halted due to a data breach, while enhancing security measures. However, concerns have been raised that the initiative has only expanded in scale without replacing the existing artificial intelligence (AI) solution developer responsible for the breach.On August 13, the ministry announced that instead of changing the development company, it would establish a new collaboration system with three organizations to bolster security. Specifically, a specialized firm will be tasked with continuous security monitoring, and any new feature developments or changes will undergo security assessments by this firm. Additionally, response training for breach incidents and technical consulting will be conducted with the cooperation of the National Intelligence Service.However, the ministry decided not to review the contract with the developer implicated in the breach. The lack of prior verification of the outsourced AI solution provider was identified as the cause of the breach, yet the focus of the resumption plan remains on adding monitoring systems.The process of determining accountability has also been postponed until after the initiative resumes. A ministry official stated, "Right now, stabilizing the project is more important than punishing those responsible," adding that the police investigation is expected to take longer, and decisions on penalties will be made after its completion. This means the project is resuming without clarity on the circumstances of the breach or accountability.The official further explained that since last month, the ministry has been holding meetings with the selected participants of the first round of the initiative across 17 cities and provinces, and there has been significant demand from the field to continue the project.Timing is also a contentious issue. The second phase is funded through a supplementary budget, which must be executed within the fiscal year. Consequently, the ministry aims to resume applications in mid-August and complete the project by December. Concerns have been raised in the National Assembly during the budget review process about whether the project is being expanded without sufficient detail, potentially leading to rushed implementation without adequate security measures.Another point of concern is that the decision to resume and expand the project was made while the ministerial position remains vacant. Han Seong-sook, who was the minister during the first phase of the initiative, was appointed as the Prime Minister in July, and a successor has yet to be named. Currently, No Yong-seok, the first vice minister, is acting as the minister.Experts have also pointed out issues with the performance criteria of the Everyone's Startup policy, suggesting it is overly focused on simply increasing the number of startups. Kim Dae-jong, a professor at Sejong University, noted, "While Everyone's Startup 2 is significant in lowering barriers to entry for young and prospective entrepreneurs, merely providing startup funds will not create a sustainable startup ecosystem."He emphasized, "The biggest problem is the potential focus on increasing the 'number of startups' as a measure of success, and it is crucial to strengthen follow-up support and management systems to ensure that funded companies can generate actual revenue, create jobs, and survive in the market."* This article has been translated by AI. 2026-08-13 17:52:10
  • NH Bank Allocates 1 Trillion Won for Final Payment Loans at The DH Bangbae
    NH Bank Allocates 1 Trillion Won for Final Payment Loans at The DH Bangbae NH Nonghyup Bank has allocated a loan limit of 1 trillion won for final payment loans for the DH Bangbae apartment complex in Seocho-gu, Seoul, which is set to open next month. According to the financial sector on August 13, NH Bank has granted a loan limit of 1 trillion won for final payment loans at the Bangbae Financial Center. This follows similar allocations of 1 trillion won each by KB Kookmin, Shinhan, and Hana Banks. Woori Bank is currently reviewing the allocation of final payment loan limits for the complex. An NH Bank official stated, "We will continue to respond well to the financial authorities' management goals to assist actual demanders." With NH Bank's allocation of final payment loan limits, prospective residents are expected to find it somewhat easier to secure funding. Existing banks that have already allocated limits are also likely to increase their limits in response to the financial authorities' announcement of an expansion in household loan totals. On the same day, the Financial Services Commission announced that it would raise the target increase rate for household loans this year from 1.5% to 3%. Considering that the loan allowance corresponding to the original 1.5% increase rate was about 30 trillion won, this measure is expected to create an additional 30 trillion won in lending capacity across the banking sector in the second half of the year. Shin Jin-chang, the Secretary General of the Financial Services Commission, explained during a briefing at the Government Seoul Building, "Setting it at 3% will alleviate a significant portion of the difficulties faced by actual demanders, such as those needing relocation and final payment loans."* This article has been translated by AI. 2026-08-13 17:52:10
  • Asiana Airlines Reports $2.95 Billion Operating Loss in Q2 Amid Rising Costs
    Asiana Airlines Reports $2.95 Billion Operating Loss in Q2 Amid Rising Costs Asiana Airlines reported an operating loss of 295.1 billion won ($2.95 billion) in the second quarter, impacted by high fuel prices, rising exchange rates, and the sale of its cargo business. While the passenger segment saw growth due to improved load factors and profitability, operational costs hindered overall performance.The airline's revenue for the second quarter fell 7.7% year-on-year to 1.547 trillion won ($1.54 billion). It recorded an operating loss of 295.1 billion won and a net loss of 328.6 billion won, a stark contrast to the operating profit of 34 billion won reported in the same period last year.Asiana attributed its losses to the surge in fuel prices and exchange rates due to the ongoing conflict in the Middle East, the sale of its cargo business last August, and costs associated with its merger preparations with Korean Air and enhanced customer service. The end-of-quarter exchange rate for the won against the dollar was 1,542 won, an increase of 107 won compared to the end of last year.Revenue from passenger operations rose to 1.2809 trillion won, an increase of 163.3 billion won (15%) compared to the previous year. Although aircraft maintenance schedules led to a 2% decrease in supply, the load factor improved by 5 percentage points, aided by expanded international sales. Revenue per passenger also improved by 10%.In contrast, cargo revenue plummeted to 114.7 billion won, a decrease of 256.5 billion won year-on-year, reflecting the impact of the sale of the cargo division to Air Jet last August.Looking ahead, Asiana expects improved performance in the third quarter as fuel prices and exchange rates stabilize, coupled with the seasonal boost from summer travel. The airline plans to enhance profitability on its Japan routes, with regular flights starting in September to Kobe and increasing service to Fukuoka to twice daily. In the belly cargo sector, Asiana aims to respond to the traditional peak season for cargo and rising demand for high-value goods such as semiconductors and artificial intelligence (AI) products by the end of the third quarter.* This article has been translated by AI. 2026-08-13 17:48:00