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  • Korea Company Reports 35.6% Increase in Q2 Operating Profit
    Korea Company Reports 35.6% Increase in Q2 Operating Profit Korea Company announced on August 12 that its preliminary operating profit for the second quarter reached 100.2 billion won, marking a 35.6% increase compared to the same period last year.During the same period, sales totaled 339.6 billion won, a slight decrease of 1.2% year-on-year. However, the increase in equity method gains, driven by expanded sales and improved product mix at its core subsidiary, Hankook Tire & Technology, along with favorable exchange rates, contributed to the improved operating profit.The operating profit margin for the second quarter was 29.5%. While this represents a slight decline from 32.2% in the first quarter, it is an improvement from 21.5% in the second quarter of the previous year.In terms of business segments, the Hankook battery division experienced a decline in both sales and operating profit compared to the previous year due to U.S. tariff policies, geopolitical risks, and rising raw material costs. However, the expansion of sales in high-value-added AGM (Absorbent Glass Mat) batteries helped maintain profitability and global market responsiveness.Korea Company is continuously enhancing its business competitiveness to address uncertainties such as global demand slowdown, trade risks, and rising cost pressures.The Hankook battery division has established a sales network in approximately 100 countries, serving over 450 customers, and plans to expand its high-value product lineup centered on AGM batteries while implementing region-specific strategies to adapt flexibly to market changes.Additionally, the company is focusing on enhancing the competitiveness of its subsidiaries and expanding the role of the holding company to establish a sustainable growth foundation.Under the integrated brand strategy promoted by Chairman Cho Hyun-bum, the company is strengthening group synergies. Following the tire division of Hankook Tire & Technology surpassing 10 trillion won in annual sales for the first time last year, the benefits of acquiring Hanon Systems are also beginning to materialize.Looking ahead, Korea Company plans to refine its business portfolio centered on tires, batteries, and automotive thermal management systems to secure future growth drivers.A representative from Korea Company stated, "Despite ongoing challenges in the global trade environment and cost pressures, we have secured a stable profit base through a premium product-focused sales strategy and the competitiveness of our core subsidiaries. We will continue to respond flexibly to market changes and enhance the group's business competitiveness and corporate value."* This article has been translated by AI. 2026-08-12 15:20:00
  • U.S.-Iran Stalemate Pushes Oil Prices Near $90, Shipping Costs Surge
    U.S.-Iran Stalemate Pushes Oil Prices Near $90, Shipping Costs Surge As negotiations between the United States and Iran remain stalled, international oil prices are rising, and shipping costs are increasing. Iran has raised the conditions for reopening the Strait of Hormuz, while the U.S. has intensified its maritime blockade against Iran, raising concerns about prolonged disruptions in energy supplies from the Middle East.The blockade of the Strait of Hormuz has led to increased demand for U.S. crude oil and petroleum products from Asian countries, resulting in a surge of vessels heading to the Panama Canal. Compounding the situation, low water levels due to El Niño have driven transit fees for the canal to record highs.Stalled Negotiations Push Brent Crude Near $90On August 12, Reuters reported that Brent crude futures in the Asian market reached $89.63 per barrel, while West Texas Intermediate (WTI) climbed to $83.91. This marks an increase of approximately 13% and 11%, respectively, compared to August 4, when hopes for a U.S.-Iran agreement were high.The weakening expectations for an early reopening of the Strait of Hormuz have contributed to this rise. Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, stated on August 11, "We will not open the Strait of Hormuz unless the U.S. ends the war and releases frozen funds abroad."U.S. President Donald Trump has also escalated pressure, mentioning in an interview with 'Real America Voice' on August 11 that he would continue economic pressure to either let Iran fail on its own or to strike it hard.The stalemate in negotiations is leading to actual disruptions in oil transport. Only six vessels passed through the Strait of Hormuz on August 10, significantly lower than the recent average of about 11 vessels per day and far below the pre-war average of 125 to 140 vessels.According to the U.S. Energy Information Administration (EIA), oil and petroleum transport through the Strait of Hormuz plummeted from an average of 21.6 million barrels per day in the fourth quarter of last year to just 4.9 million barrels per day in the second quarter of this year. Last month, disruptions in oil production in the Middle East were estimated at an average of 5.5 million barrels per day. The EIA predicts that transit through the Strait of Hormuz will remain significantly restricted through this month.The U.S. is also intensifying enforcement of its maritime blockade. On August 11, U.S. Central Command reported that the cargo ship Belanova, bound for an Iranian port, was disabled by two Hellfire missiles after ignoring repeated warnings.Increased U.S. Oil Demand in Asia Creates Bottlenecks at Panama CanalThe effects of the Hormuz blockade are extending to the Panama Canal. According to the Financial Times, the average price for same-day transit rights at the Panama Canal has soared to about $1.1 million this month, more than 16 times higher than the same period last year, reaching an all-time high. Some auction prices for large vessel transit rights have hit as high as $3.78 million.This surge is not due to an increase in the basic tolls for the canal, but rather intense competition for same-day transit rights. Up to 30% of all vessels using the canal participate in same-day auctions.The blockade of the Strait of Hormuz is a key factor behind this situation. Asian refiners and energy companies are increasing their purchases of U.S. Gulf Coast crude oil and petroleum products instead of Middle Eastern oil, leading to a backlog of vessels at the Panama Canal, a major route for shipments from the U.S. to Asia.Additionally, drought conditions exacerbated by El Niño are worsening the bottleneck. The water level of Gatun Lake, which supplies water necessary for canal operations, has dropped, raising concerns about reduced vessel loads. As of August 3, the number of vessels waiting to transit was 113, nearly triple the 40 vessels waiting on January 2.Panama Canal authorities stated, "Current water level restrictions will not reduce the number of vessels transiting per day." However, they have not ruled out additional restrictions if water levels drop further. Shipping information firm Argus noted that the rate of decline in Gatun Lake's water level is unusually rapid, suggesting that conditions could worsen compared to the severe drought experienced in 2023. 2026-08-12 15:20:00
  • Over 200 water tankers sent to southern province to combat drought
    Over 200 water tankers sent to southern province to combat drought SEOUL, August 12 (AJP) - Some 200 water tankers and 400 firefighters have been deployed to South Gyeongsang Province to provide emergency water supplies amid prolonged dry conditions exacerbated by recent extreme heat, fire authorities said on Wednesday. The emergency water supply to run for two days until Thursday comes as drought conditions have worsened across the southern region after weeks of dry weather, with no rainfall from late June to mid-July. These medium-sized trucks, which can carry between 6,000 and 12,000 liters of water, will supply agricultural and household water after being distributed across 14 cities and counties there, depending on the severity of the drought. About 40 trucks will be deployed to Miryang, which faces the most severe shortages, while Jinju, Sacheon and Gimhae will receive 20 each, Yangsan will receive 18, and the remaining trucks will be deployed to other drought-affected areas. According to the province, the average storage rate at agricultural reservoirs stood at 33.3 percent this summer, less than half the normal level of 70.9 percent. Drought alerts have also been issued in 17 of the province's 18 cities and counties, with Geoje, Haman and Miryang at the highest "severe" level. Drought damage has also affected some 2,121 hectares of farmland including rice paddies and fields growing fruits and vegetables. The nationwide mobilization of fire personnel came after government authorities determined that local resources alone were insufficient, making it only the second such case, following a similar measure for Gangneung, Gangwon Province in August last year. AJP Takeaways: - South Korea deployed 200 water tankers and 400 firefighters to South Gyeongsang Province on Aug. 12, 2026, to provide emergency agricultural and household water amid worsening drought and extreme heat. - The emergency water supply operation will run for two days through Aug. 13, 2026, with the water tankers distributed across 14 cities and counties based on drought severity; each truck can carry 6,000 to 12,000 liters of water. - Miryang will receive the largest allocation of 40 water tankers, while Jinju, Sacheon and Gimhae will each receive 20 and Yangsan will receive 18, as Miryang faces some of the province's most severe water shortages. - South Gyeongsang Province's agricultural reservoir storage rate fell to 33.3 percent in summer 2026, less than half the normal 70.9 percent level, with drought alerts issued in 17 of the province's 18 cities and counties. - Drought has damaged about 2,121 hectares of farmland in South Gyeongsang Province as of Aug. 12, 2026, including rice paddies and fields growing fruits and vegetables; the nationwide fire mobilization was only the second such deployment for drought after Gangneung, Gangwon Province, in August 2025. 2026-08-12 15:19:52
  • Controversy Surrounds Ha Youngs Apology for Ancestors Pro-Japanese Actions
    Controversy Surrounds Ha Young's Apology for Ancestor's Pro-Japanese Actions Actor Ha Young released a handwritten apology three days after a controversy regarding his ancestor's pro-Japanese actions emerged. However, public reaction remains largely cold.On the 13th, Ha Young shared a handwritten letter stating, "I sincerely apologize for the disappointment and hurt caused by matters related to my great-grandfather." He addressed the ongoing controversy in his statement.Since the release of the apology, various online communities have criticized the timing and content of the letter, noting that some aspects of the controversy were not mentioned.Netizens reacted with comments such as, "It seems you have no plans to take a break for a few years," "Just quietly enjoy your family's wealth," "Let’s not see you on TV anymore," "It’s surprising it took three days for this," and "If you hadn’t made a fuss, it would have been forgotten."Particularly, netizens pointed out that the apology only mentioned the pro-Japanese actions of Ha Young's great-grandfather, An Sang-ho, while omitting references to his grandfather's connection to Sorokdo, which had been mentioned by the agency during the clarification process.One netizen remarked, "The Sorokdo issue that the agency promoted is not mentioned. Is this issue too big to address?" Another added, "The apology only includes details about the great-grandfather, and the Sorokdo content will likely be criticized for being omitted."Some responses compared Ha Young to descendants of independence activists, criticizing the disparity. One netizen wrote, "It’s unfortunate that those who fought for independence lost their fortunes, leaving their descendants in poverty."In his apology, Ha Young stated that he had only a limited understanding of his great-grandfather's life through family stories.He admitted, "Regrettably, I have spoken about my great-grandfather as a family pride without fully understanding the context. Through this incident, I learned about my great-grandfather's pro-Japanese actions while researching related materials."He continued, "I reflect on my lack of knowledge regarding our country's painful history during the Japanese colonial period and my casual references to family history."Ha Young also apologized for his agency's initial statement, which claimed the allegations were unfounded. He said, "I also did not know the facts, which led to the agency's statement being released without proper verification. I believe it was my shortcoming that a misleading position was communicated without sufficient confirmation."Regarding the delay in his statement, he expressed, "The matter is so serious and regrettable that I struggled with how to convey my apology, which caused the delay in my response."He added, "I believe that my ignorance does not excuse me from overlooking or trivializing that history. I take this mistake seriously and sincerely apologize as a descendant."Ha Young also shared his feelings about the controversy arising just before Liberation Day, stating, "I feel even more remorseful for causing trouble due to my shortcomings at a time leading up to Liberation Day. I will take a closer look at my family's history and approach history with greater caution in the future."He concluded, "I will strive to study our history deeply and serve with respect for the independence activists and all those who contributed to our country's liberation and well-being, committing to actions rather than just words." 2026-08-12 15:12:20
  • KAI Union Opposes Hanwhas Management Participation Amid Concerns
    KAI Union Opposes Hanwha's Management Participation Amid Concerns Hanwha Group has acquired over 15% of Korea Aerospace Industries (KAI), prompting the union to express opposition to the merger. The union argues that Hanwha, a supplier in the aviation sector and a competitor in the space sector, could create conflicts of interest in KAI's management.On August 12, the KAI union issued a statement urging the Fair Trade Commission to reject the merger review of KAI and Hanwha. This follows Hanwha Group's continued acquisition of KAI shares, which reached 15.89% as of August 10, with the stated purpose of 'management participation.'The union highlighted that Hanwha Aerospace and Hanwha Systems are major suppliers to KAI. They pointed out that Hanwha Aerospace has supplied engines for the T-50 series and signed a contract worth 473.1 billion won for 17 types of components for the KF-21's initial production. Hanwha Systems also supplies avionics for the LAH and KF-21.The union claims that if Hanwha exerts influence over KAI's management, it could lead to preferential selection of Hanwha products and limit business opportunities for competing suppliers, thereby undermining independent purchasing and supply chain decision-making.They also emphasized the competitive relationship in the space sector, noting that KAI and Hanwha Systems are competing for the Defense Acquisition Program Administration's (DAPA) synthetic aperture radar (SAR) satellite project, which is set to be announced by the end of the year. The union expressed concerns that Hanwha's management participation could grant access to sensitive competitive information, such as bid prices, project costs, and technology development strategies.The union referenced a previous merger case between Hanwha and Daewoo Shipbuilding & Marine Engineering, where the Fair Trade Commission imposed corrective measures due to concerns over price discrimination and the potential leakage of trade secrets between suppliers and shipbuilders. They argue that the merger between Hanwha and KAI, which involves both supply and competitive relationships, should be scrutinized even more rigorously.A KAI union representative stated, 'The aerospace industry is a strategic sector formed through significant national investment and long-term research and development. If the independent competitive structure is compromised, it will be difficult for new entrants to replace it. The most effective way to protect competition is to prevent competitors from participating in each other's management.'* This article has been translated by AI. 2026-08-12 15:12:00
  • Culley Reports Record Q2 Operating Profit of 27.4 Billion Won, Marking Six Consecutive Quarters of Profit
    Culley Reports Record Q2 Operating Profit of 27.4 Billion Won, Marking Six Consecutive Quarters of Profit Culley reported record operating and net profits for the second quarter of this year. Growth in core businesses such as food and beauty, along with new ventures like seller delivery products (3P) and fulfillment services (FBK), contributed to both revenue growth and improved profitability.On August 12, Culley announced that its consolidated operating profit for the second quarter reached 27.4 billion won, a staggering 1,991% increase compared to the same period last year. This marks the largest quarterly operating profit in the company's history and the sixth consecutive quarter of profitability. Revenue rose to 734.8 billion won, a 27% increase.Net profit for the quarter was 25.4 billion won, a turnaround from a loss in the same period last year. Culley has now recorded net profit for two consecutive quarters following the first quarter.The improvement in profitability was influenced by reduced cost of sales and an expansion of commission-based businesses. The share of revenue from seller delivery products (3P) increased, leading to a gross profit margin of 35.3% for the second quarter, up 1.5 percentage points from the previous year.Culley also continued its growth trajectory, with total transaction volume (GMV) for the second quarter reaching 1.0786 trillion won, a 25.1% increase year-on-year. The core business, Market Culley, saw a 25.7% increase in transaction volume, driven by higher sales of fresh food and home meal replacements (HMR), while Beauty Culley also experienced a 13.5% increase.In new businesses, FBK and 3P led the growth. The transaction volume for 3P, including FBK, increased by 32.1% year-on-year, supported by an expanded product range in fashion, kitchenware, and home decor, as well as enhanced logistics competitiveness. Culley N-Mart also continued to see growth in transaction volume.Thanks to improved profitability, cash assets reached an all-time high of 372.9 billion won, a 73% increase from the same period last year.Kim Jong-hoon, Chief Financial Officer of Culley, emphasized, "We will maximize corporate value based on the high growth of our core and new businesses, laying the groundwork for a successful initial public offering (IPO) in the future."Meanwhile, Culley is hosting its first Grand Beauty Culley Festa until August 20, offering discounts of up to 90% on over 10,000 beauty products.* This article has been translated by AI. 2026-08-12 15:12:00
  • KB Kookmin Bank Adds Time Deposits to KPI Amid Growing Deposit Competition
    KB Kookmin Bank Adds Time Deposits to KPI Amid Growing Deposit Competition KB Kookmin Bank is expected to intensify competition for deposits as it has added time deposits to its key performance indicators (KPI) for the second half of the year. With the Bank of Korea raising its benchmark interest rate, market interest rates are increasing, leading banks to seek relatively stable deposit sources.According to the financial sector on August 12, KB Kookmin Bank has newly included personal and corporate time deposits in its KPI announced earlier this month. This temporary measure will reflect the performance of branch offices and employees in attracting time deposits until the end of the year, aiming to proactively secure deposits.Other banks are also working to attract customers by raising deposit interest rates. Shinhan Bank, which had suspended special time deposit products for two years, is currently running its sixth special offer this year. The maximum interest rate has increased from 3.1% in the first special offer to 3.5% in the fifth and sixth offers, a rise of 0.4 percentage points.Woori Bank has launched the 'Our Wish Time Deposit' to commemorate the 150th anniversary of the birth of Kim Gu and Liberation Day, offering a maximum interest rate of 3.4% for a December maturity. Hana Bank raised the base interest rates of 14 deposit products, including six types of time deposits and seven types of savings accounts, by 0.2 to 0.3 percentage points at the end of last month.While banks are employing various strategies, from branch evaluations to special offers and interest rate hikes, they are mobilizing all means to secure deposits.The push for time deposits is driven by the need to establish a stable funding base proactively. Unlike demand deposits, time deposits tie up funds for a specified period, reducing the risk of fund outflows and making it easier for banks to predict the scale and maturity of their funding. This is also significant as it allows banks to secure stable deposits that can be used for future lending.The increased reliance on market-based funding in the banking sector is another factor contributing to the competition for deposits. While banks are raising funds through bond issuances, the rising market interest rates can increase their funding costs. In contrast to market-based funding, which can fluctuate based on financial market volatility, time deposits provide a more stable source of funding. In a situation where reliance on market-based funding has increased, banks are looking to secure more stable deposit sources.The possibility of further increases in deposit interest rates due to the benchmark rate hike is also prompting banks to act. The Bank of Korea raised the benchmark rate from 2.50% to 2.75% last month. As banks prepare for the potential of higher deposit rates and increased market-based funding costs, competition to secure deposits is expected to continue.A banking sector official stated, "In a situation where market interest rates are rising, deposit rates will inevitably follow suit, and the more unstable the flow of funds in the financial market, the more important it is for banks to secure a stable deposit base. This trend is likely to continue for the time being."* This article has been translated by AI. 2026-08-12 15:08:00
  • Korean Agency Discovers Illegal Sale of Glutathione Injections
    Korean Agency Discovers Illegal Sale of Glutathione Injections The Ministry of Food and Drug Safety has referred an individual to prosecutors for illegally selling prescription drugs, including glutathione injections, commonly known as "white jade injections."On August 12, the agency announced that it had sent A, who is accused of violating the Pharmaceutical Affairs Act, to prosecutors for illegally selling approximately 160 million won worth of glutathione injections and other prescription drugs.The Central Investigation Team for Food and Drug Safety received information that glutathione injections and Cinderella injections, used for skin beauty treatments, were being illegally distributed through online information-sharing cafes, prompting an investigation.The investigation revealed that A, a pharmaceutical sales representative, illegally sold a total of 2,293 units of over 100 types of prescription drugs worth 160 million won to 156 buyers through direct transactions and delivery from April 2025 to April 2026.It was confirmed that the buyers purchased these prescription drugs for skin whitening, antioxidant effects, and to enhance performance during exercise or recover from fatigue, all without a doctor's prescription.While glutathione is a substance produced in the body, it is known that administering it in high doses via injection can lead to side effects.The Ministry of Food and Drug Safety emphasized that the illegally sold prescription drugs were used for purposes not approved by regulatory authorities, such as skin beauty treatments, and warned that misuse could lead to severe side effects, including cardiac arrest, loss of consciousness, and shock due to respiratory distress. They urged that these drugs should only be used under a doctor's prescription.Additionally, the agency has requested the prosecution to seize 70 million won in criminal proceeds obtained by A under the Act on the Regulation and Punishment of Criminal Proceeds Concealment.The Ministry stated, "We will continue to actively crack down on illegal sales of pharmaceuticals and impose strict penalties to protect public health and safety."* This article has been translated by AI. 2026-08-12 15:08:00
  • Korean Air and Asiana Airlines Finalize Merger, Launching Mega Carrier
    Korean Air and Asiana Airlines Finalize Merger, Launching Mega Carrier Korean Air and Asiana Airlines have finalized their merger.On August 12, Korean Air held a regular board meeting at its headquarters in the Seosomun Building in central Seoul, where it approved the merger agreement.Korean Air met the requirements for a small-scale merger under Article 527-3 of the Commercial Act, allowing the board's resolution to substitute for a shareholders' meeting.On the same day, Asiana Airlines convened an extraordinary shareholders' meeting at its headquarters in Oseo-dong, Gangseo-gu, Seoul, where it approved the merger contract.At the Asiana Airlines shareholders' meeting, 81.86% of all shareholders attended, with 99.3% (167,436,677 shares) of those present voting in favor of the proposal. This fulfilled the special resolution requirements set forth in Articles 522 and 434 of the Commercial Act.The merger resolutions from the Korean Air board and the Asiana Airlines shareholders' meeting officially accept the merger agreement that was approved by both companies' boards in May. Korean Air and Asiana Airlines plan to complete remaining procedures, including creditor protection processes, and register the merger by December 17.Korean Air has been progressing smoothly with the post-merger integration (PMI) process since acquiring Asiana Airlines. Following a review by the Ministry of Land, Infrastructure and Transport, the merger was conditionally approved on June 25, and the securities registration statement submitted to financial authorities became effective on July 24.To ensure seamless operations on the launch date of the integrated airline, the companies are closely coordinating with relevant authorities to obtain the Air Operator Certificate (AOC) and necessary operating permits from foreign aviation authorities.With the merger resolutions now complete, the final preparations for the integration of Korean Air and Asiana Airlines are expected to accelerate.In particular, the two airlines plan to strengthen their 'One Team' collaboration framework. They are focusing on system integration and cultural unification to provide safe operations and high-quality service from the first day of the new airline's launch.Korean Air is conducting job training for employees responsible for passenger and cargo services at Asiana Airlines in preparation for the launch of the integrated airline, and training for operational and cabin crew is also underway.The successful completion of joint emergency evacuation drills has demonstrated the capabilities of the crews from both airlines to ensure passenger safety after the merger. Additionally, joint volunteer activities among employees from both companies are expanding.A Korean Air official stated, "We will do our utmost to complete all necessary procedures in the remaining four months before the launch of the integrated airline and to elevate the status of South Korea's aviation industry."* This article has been translated by AI. 2026-08-12 15:04:00
  • Local Supermarkets Demand Action Against Large Retailers Early Delivery Services
    Local Supermarkets Demand Action Against Large Retailers' Early Delivery Services Local supermarket owners are urging the government to halt discussions on allowing early morning deliveries by large retailers and to quickly implement support measures for local businesses. They express growing concern as the influence of online platforms and large retailers continues to rise, despite indicators of economic recovery.On August 12, the Korea Supermarket Cooperative Federation and the People's Solidarity for Participatory Democracy held a press conference in front of the Cheong Wa Dae fountain, stating, "While government statistics may indicate economic recovery, local supermarkets are contemplating closure due to the ongoing crisis in the local economy." They called for urgent measures to address the challenges faced by local businesses.According to the Small Enterprise and Market Service, the Business Sentiment Index (BSI) for small businesses was 55.6 in July, a drop of 8.0 points from the previous month, with an outlook BSI of 71.0 for August, down 6.3 points in a month. A BSI below 100 indicates worsening economic conditions, while above 100 suggests improvement.The number of supermarkets has also significantly decreased. The National Tax Service reported that the number of supermarkets, which exceeded 28,000 during the height of the COVID-19 pandemic in 2022, fell to 26,588 as of June this year.While the government has announced budgets and policy funds for small businesses, the federation pointed out that there are no structural measures to help small business owners in the local economy increase sales and enhance competitiveness.They also expressed concerns over the expansion of business areas by companies like Coupang, Daiso, and Baedal Minjok's B Mart, which have exacerbated their difficulties. In particular, they voiced strong apprehension regarding discussions on allowing early morning and late-night deliveries by large retailers.The federation stated, "There are moves to allow late-night deliveries by large retailers under the pretext of countering Coupang. We must strengthen regulations on online platforms and large retail companies and withdraw the policy allowing late-night deliveries by large retailers." They also proposed expanding support for AI-based shared logistics centers necessary for small retailers and easing regulations for small business owners.They demanded a meeting with the President. Jeong Yeon-hee, president of the Korea Supermarket Cooperative Federation, noted, "While the President has met with large business leaders to hear their difficulties and discuss necessary support, there has been no such dialogue with small business owners. We urge an immediate halt to discussions on late-night deliveries and a direct meeting with representatives of local supermarkets."* This article has been translated by AI. 2026-08-12 15:04:00