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  • Small Business Association Seeks Participants for Retail Opportunities
    Small Business Association Seeks Participants for Retail Opportunities The Small Business Association announced on August 12 that it is recruiting small businesses to participate in its "Second Half Integrated Product Review" aimed at supporting the entry of quality small business products into major retail channels.The target participants are small consumer goods manufacturers based in South Korea. The review will consider all consumer goods except for large appliances and furniture.Thirteen retailers will participate in the review, including Galleria, Lotte, Shinsegae, Hyundai, AK Department Store, Lotte Mart, E-Mart, Lotte Shopping eCommerce, Woowa Brothers, Post Office Shopping, Gmarket, Coupang, and Home & Shopping.The evaluation process will consist of two stages: a document review and an in-person assessment on the day of the review. Product planners (MDs) from each retailer will handle both the document and in-person evaluations.Small businesses that successfully enter these retailers will receive benefits such as reduced commission rates and dedicated sales space, as agreed upon with the retailers.Applications will be accepted until 6 p.m. on September 9. The product review is scheduled to take place on October 27 at the Small Business Association.Hwang Young-man, head of the Small Business Policy Division at the Small Business Association, stated, "This product review is significant as it allows professional MDs from large retailers to directly discover excellent small business products and connect them to actual entry opportunities." He added, "We will continue to promote various win-win projects with large retailers to ensure that competitive small businesses can gain recognition in broader markets."* This article has been translated by AI. 2026-08-12 12:00:20
  • Jang Dong-hyuk: Party Chair Positions Should Be Held by Fighters
    Jang Dong-hyuk: Party Chair Positions Should Be Held by Fighters Jang Dong-hyuk, the leader of the People Power Party, emphasized on August 12 that he will reflect the opinions of party members as much as possible in the appointment process for party committee chairs. He stated, "I will not operate in a way that automatically extends terms after they expire."During an appearance on the YouTube program "Lee Dong-jae's News Cabinet," Jang said, "My basic thought is to receive applications and appoint new party committee chairs according to party rules and regulations."He pointed out that, "When we are not in crisis, we waste time on internal conflicts, and when we should be fighting against the government and the ruling party, we waste a lot of time and energy fighting among ourselves." He added, "I said that anyone who does not fight should take off their badge when I became party leader. I have tried, but things have not changed significantly yet."Jang warned, "If party committee chairs who have not fought hard run in the general elections, we will inevitably lose." He stressed the need to identify and appoint capable individuals as party committee chairs to strengthen the organization and unite for the fight ahead.Regarding a recent petition led by a party member calling for his resignation, Jang remarked, "We have reached a point where it is quite pitiful. This discussion about my position will continue to arise whenever there is an opportunity. Ultimately, it is all related to 'my nomination.'"He firmly stated that he is not considering reappointment or a party convention during his term, despite ongoing controversies regarding his position. Jang said, "I am focused on reforming the party and doing what I can during my term. I believe it is time to properly reform and change the party. I will stabilize the party and transform it into a fighting party where 80% of the members are engaged in the struggle until we achieve complete change through internal reform."Jang also criticized the recent policies of the Lee Jae-myung administration regarding real estate, taxation, and the stock market. He noted that despite President Lee's campaign promises to reduce taxes, increase supply, and ease real estate loan regulations, these commitments have not been fulfilled.He stated, "Even after taking office, the president has repeatedly said he would not control housing prices with taxes, but he is going in the opposite direction." He added, "And the public is facing a tax bomb after he sold his house without losing a penny, using tricks that are unimaginable to the people."Jang raised two points that further anger the public: "He must have decided after reviewing the tax reform plan, yet he speaks as if he has not seen it at all," and "When taxes change, he will inevitably be criticized, but he seems to think that if he just lowers his posture and waits a little, everything will be fine."Additionally, Jang reiterated the need for a national investigation and special prosecution into the decision-making process regarding single-stock leveraged exchange-traded funds (ETFs).* This article has been translated by AI. 2026-08-12 12:00:00
  • Construction Industry Faces Decline as Orders Drop 21.7%, Private Sector Down 41.5%
    Construction Industry Faces Decline as Orders Drop 21.7%, Private Sector Down 41.5% Despite an increase in public large-scale project orders, the construction industry's recovery remains limited due to a simultaneous decline in private sector contracts for civil engineering, housing, and non-residential projects.The Korea Construction Industry Institute reported on August 12 that construction orders in June totaled 18.7 trillion won, a 21.7% decrease compared to the same month last year.Public orders increased by 29.2% year-on-year, driven by large projects such as the Jecheon-Yeongwol Expressway and the Jeju Clean Energy Complex. In contrast, private sector orders plummeted by 41.5% as all segments—civil engineering, housing, and non-residential—contracted. Compared to the average for June over the past three years, the current level is 5.4 trillion won lower, indicating that the expansion of public orders alone is insufficient to offset the downturn in the private sector.Construction performance showed slight improvement, particularly in public and non-residential building sectors. June construction performance reached 14.1 trillion won, marking a 19.9% increase from the previous month and a 1.6% rise from the same month last year. Public performance rose by 12.2% year-on-year, while non-residential building performance increased by 22.9%.However, private sector performance declined by 1.1%, with residential building performance dropping by 8.7%. Overall performance remains 1.2 trillion won lower than the average for June over the past three years, suggesting that the construction industry has not yet entered a full recovery phase.Employment conditions have also worsened. The number of construction workers in June was 1.893 million, down 1.4% from the previous month and 3.4% from the same month last year. Although public and some non-residential construction performance increased, the decline in private orders, the contraction in residential building, and the lagging nature of employment contributed to the ongoing decrease in construction jobs.Rising construction costs have added to the burden. The construction cost index in June was 138.22, a 5.5% increase compared to the same month last year. While prices for cement and ready-mixed concrete remained relatively stable, the producer price index for rebar rose by 8.6% year-on-year, and the market price index increased by 11.8%, leading to higher material costs, particularly for rebar.Construction companies' sentiment has also deteriorated. The Construction Business Survey Index (CBSI) for July fell to 72.8, a decrease of 1.7 points from the previous month. A CBSI below the baseline of 100 indicates that more companies view the current construction market pessimistically than optimistically.Specifically, the new order index dropped to 68.6, down 4.5 points from the previous month. Conversely, the construction performance index rose to 81.7, an increase of 0.8 points, while the order backlog index climbed to 79.7, up 3.4 points. The construction receivables index also increased to 81.6, up 4.6 points, but the financing index fell to 72.8, down 1.7 points.By sector, the civil engineering index dropped to 72.4, down 7.3 points, and the housing index fell to 67.5, down 8.2 points. The non-residential building index rose to 70.1, an increase of 2.8 points. By company size, the large enterprise index fell to 83.3, down 8.4 points, while the mid-sized enterprise index rose to 74.1, up 1.7 points, and the small enterprise index increased to 60.9, up 1.5 points.Regionally, the Seoul index plummeted to 74.3, a drop of 14.9 points, while the regional index rose to 70.4, an increase of 2.2 points, indicating a slight reduction in the gap in sentiment between regions.The comprehensive outlook index for August is 72.5, down 0.3 points from July's performance. This suggests that construction companies anticipate continued sluggishness rather than a clear recovery in the near term.Lee Ji-hye, a researcher at the Korea Construction Industry Institute, stated, “Despite an increase in public large project orders in June, the simultaneous contraction in private civil engineering, housing, and non-residential orders led to a significant decrease. While performance has slightly improved in public and non-residential construction, and conditions for order backlog and payment collection have improved, challenges remain with slowing new orders, a weak private construction market, declining employment, and rising material costs such as rebar.”* This article has been translated by AI. 2026-08-12 11:52:00
  • Kolon Global Reports 174% Increase in Q2 Operating Profit Amid Improved Construction Costs
    Kolon Global Reports 174% Increase in Q2 Operating Profit Amid Improved Construction Costs Kolon Global significantly boosted its profitability in the second quarter of this year, thanks to the 'big bath' effect from proactively addressing potential losses at the end of last year and expanding its non-residential business.On August 12, Kolon Global announced that it recorded consolidated sales of 750.5 billion won, operating profit of 52.2 billion won, and net profit of 32.3 billion won for the second quarter. Compared to the same period last year, sales increased by 2.2%, while operating profit surged by 173.6%. The net profit turned positive.The construction division reported sales of 608.1 billion won and operating profit of 40.5 billion won in the second quarter. Following the proactive reflection of potential risks at the end of last year, the cost improvement effect led to a construction cost ratio of 87.7%, down 1.9 percentage points from the same period last year. Operating profit increased by 154.7% year-on-year.Sales from the non-residential business continued to contribute, with projects such as Korean Air's engine maintenance facility, Tokyo Electron Korea's research facility, Samsung Electronics' ADC DP expansion project, and the Pyeongtaek Phase 1 effluent cooling facility reflected in the revenue.New orders were primarily focused on the non-residential sector. In the first half of this year, Kolon Global secured a total of 985.4 billion won in new orders, including the 126.5 billion won integrated water supply project for the Yongin semiconductor industrial complex and the 39.9 billion won Kumho Tire manufacturing plant.The leisure and asset management (AM) sectors also saw expanded performance following their merger at the end of last year. Second-quarter sales reached 85.7 billion won, a 304.2% increase from the same period last year, while operating profit rose to 13.5 billion won, up 610.5%. The company attributed this growth to the peak season effects in hotels, resorts, and golf courses, as well as the merger benefits.Kolon Global undertook a big bath in the fourth quarter of last year to reflect potential risks in its financial statements. CEO Kim Young-beom stated during a town hall meeting with employees earlier this year that the company would pursue a restructuring focused on profitability.A Kolon Global representative said, “With the stabilization of construction costs, the expansion of the non-residential business, and the growth of the leisure and AM sectors post-merger, we are maintaining a stable growth trajectory within a balanced business structure. This year, we will continue to enhance both profitability and growth through selective orders focused on profitability and strengthening our business competitiveness.”Kolon Global has set a performance guidance of 3.1 trillion won in sales and 120 billion won in operating profit for this year.Meanwhile, Kolon Global is expanding its reach into offshore wind power projects, following its ventures into onshore wind power, with a scale of 400 MW. The company is building a business structure that secures long-term profits from power generation by participating not only in simple construction but also in equity investments and operations in power generation projects.* This article has been translated by AI. 2026-08-12 11:52:00
  • Heerim Selected as Preferred Negotiation Partner for 600 Billion Won Jeonbuk International Finance Center Project
    Heerim Selected as Preferred Negotiation Partner for 600 Billion Won Jeonbuk International Finance Center Project Heerim has been selected as the preferred negotiation partner for the 600 billion won Jeonbuk International Finance Center (JIFC) project, marking its significant entry into a large-scale mixed-use development.On August 12, Heerim Architects announced that the Oryon Asset Management Consortium was chosen as the top candidate in the bidding for the 'Jeonbuk International Finance Center (JIFC) and Financial Town Development Project' organized by the Jeonbuk Special Self-Governing Province. A total of four consortia participated in this bidding.The Oryon Asset Management Consortium includes the leading firm Oryon Asset Management, along with KB Securities and Truston Asset Management. Heerim will invest equity in the consortium while also handling architectural design and construction management (CM).The Jeonbuk International Finance Center project is a major initiative that will utilize the government's regional revitalization investment fund to inject approximately 600 billion won in private capital. It is set to be developed in the Munchang-dong area of Deokjin-gu, Jeonju, with a target completion date in 2030.The project site will feature a 31-story prime office building, a 14-story SOHO office, a 13-story global brand hotel, and an international conference facility with a total floor area of 7,285 square meters. The plan aims to create a complex that integrates financial institutions and asset management companies with hotel and MICE facilities, consolidating finance, business, accommodation, and convention functions in one location.Heerim aims to establish the Jeonbuk International Finance Center as a landmark representing the region, leveraging its experience in designing and managing large mixed-use facilities, including high-rise offices and hotels. By participating in equity investment and taking charge of design and CM, Heerim will be involved in the project from the early stages of development.During the evaluation process, the consortium's financial execution capability, the feasibility of its occupancy plans, and the project timeline for completion in 2030 received high marks.The Jeonbuk Special Self-Governing Province plans to sign a memorandum of understanding (MOU) with the consortium within the year, followed by detailed design and administrative procedures, with construction expected to begin next year.A Heerim representative stated, "The Jeonbuk International Finance Center is a crucial project that will serve as a cornerstone for revitalizing the local economy and elevating the region to an international financial city. We will concentrate Heerim's design and CM capabilities to create a world-class landmark representing Jeonbuk."Earlier, Heerim Architects was selected as the design firm for the redevelopment project of Mokdong District 1 in Yangcheon-gu, Seoul, in May.* This article has been translated by AI. 2026-08-12 11:52:00
  • Diverging Views on 52-Hour Workweek Exception Among Democratic Party Candidates
    Diverging Views on 52-Hour Workweek Exception Among Democratic Party Candidates As discussions continue regarding the application of exceptions to the 52-hour workweek under the Mega Special Zone Act, part of the Lee Jae-myung administration's local-led growth initiative, conflicting views have emerged among candidates for the leadership of the Democratic Party.On August 12, candidate Jung Cheong-rae held a press conference at the National Assembly, stating, "I believe the 52-hour workweek should be adhered to," and suggested that increasing employment could help address labor shortages. In contrast, candidate Kim Min-seok emphasized the need for consensus, noting, "There may be differences in views among businesses, the government, central and local authorities, and various ministries. I will work to address these comprehensively." Additionally, Kim Jeong-kwan, the Minister of Trade, Industry and Energy, who has a background in business, has argued for the necessity of regulatory relaxation regarding the 52-hour workweek exception. Meanwhile, Kim Young-hoon, the Minister of Employment and Labor and a former leader of the Korean Confederation of Trade Unions, has taken a more cautious stance.In response, President Lee Jae-myung remarked during a Cabinet meeting on August 11 at the Government Sejong Convention Center that "debate and discussion are the most democratic methods" and described the process as a normal policy coordination effort. He urged ministries to resolve their differences through active discussions.Meanwhile, voices of opposition have emerged from the broader ruling coalition regarding the 52-hour workweek exception. The Justice Party stated, "It should not be a subject of negotiation," while the Progressive Party criticized it as a "regression in labor rights." * This article has been translated by AI. 2026-08-12 11:48:00
  • Nippon Steel Ordered to Compensate Victims of Forced Labor with 80 Million Won
    Nippon Steel Ordered to Compensate Victims of Forced Labor with 80 Million Won The Supreme Court of South Korea has confirmed a ruling requiring Nippon Steel (formerly Shin Nippon Steel) to pay 80 million won in damages to the family of a forced labor victim from the Japanese colonial period. The family expressed hope for a prompt apology and compensation. On August 12, the Supreme Court's second division, led by Justice Oh Kyung-mi, upheld the lower court's decision that ordered Nippon Steel to pay 80 million won in damages in a lawsuit filed by the family of the late Min Moon-sik, a victim of forced labor. Min worked as a laborer at the Kamaishi Steel Works operated by Nippon Steel from February to July 1942 before escaping and returning to Korea, where he passed away in April 1989.His children argued that the forced labor separated them from their father, deprived them of family support, and subjected them to dangerous working conditions. They filed the lawsuit in April 2019, seeking 100 million won in damages for their father's mental suffering.A key issue in the case was the statute of limitations for filing a damages claim. Typically, the legal timeframe to file a claim is three years from the date the victim becomes aware of the wrongdoing, or ten years from the date of the wrongdoing itself. If this period expires, the right to claim damages is lost.Previously, victims had refrained from filing lawsuits, believing that their individual claims had been extinguished by the 1965 Korea-Japan Claims Agreement. However, a 2012 Supreme Court ruling determined that individual claims were not extinguished by this agreement, a decision that was ultimately confirmed by a full Supreme Court ruling in 2018, broadly recognizing the individual claims of forced labor victims.The first trial concluded that the family had missed the deadline to file for damages, basing its judgment on the 2012 ruling. However, the appellate court overturned this decision in 2024, ordering Nippon Steel to pay 80 million won, using the date of the Supreme Court's 2018 ruling as the starting point for the statute of limitations.The court stated, "The ruling of the full Supreme Court clearly established the possibility of judicial relief for forced labor victims in South Korea. Considering this, the plaintiffs, as heirs of the deceased, had a valid reason for not exercising their rights until the ruling on October 30, 2018."The Supreme Court agreed with the lower court's legal reasoning and confirmed that Nippon Steel must compensate the family 80 million won.Following the ruling, Min's family and their legal representatives held a press conference, urging Nippon Steel to accept the ruling and issue a direct apology.Min's son, Min Byung-jo, stated, "As a son, I wanted to restore my father's honor, and I am very pleased with today's positive outcome. I hope they will accept the ruling and provide an apology and compensation promptly."The family also indicated that they are in the process of seizing Nippon Steel's assets in South Korea, specifically shares in PNR, as part of the enforcement of the ruling.* This article has been translated by AI. 2026-08-12 11:44:00
  • Supreme Court Upholds Ruling Against Seoul City in 42.1 Billion Won Lawsuit
    Supreme Court Upholds Ruling Against Seoul City in 42.1 Billion Won Lawsuit Seoul City has lost its final appeal in a lawsuit seeking to cancel a 42.1 billion won charge imposed by the Korea Railroad Corporation for the use of the Gyeongui Line Forest Trail park area.On August 12, the Supreme Court's second division, led by Justice Eom Sang-pil, upheld the lower court's ruling that favored the Korea Railroad Corporation in the compensation lawsuit.The court stated, "Seoul City cannot be considered to have the right to occupy and use the land free of charge based on agreements or other legal grounds."The Gyeongui Line Forest Trail, a park stretching approximately 6.3 kilometers from Hyochang Park Station to Gajwa Station, was developed following an agreement between Seoul City and the Korea Railroad Corporation in 2010, which included a promise for the free use of state-owned land after the Gyeongui Line was buried underground.However, issues arose after the enforcement decree of the State Property Act was amended in April 2011, prohibiting the free rental of state-owned land for more than one year.As a result, the Korea Railroad Corporation imposed a charge of 42.1 billion won on Seoul City for the use of the state-owned property after the agreement expired. In response, Seoul City filed a lawsuit in February 2021 seeking to cancel the charge.In the first trial, a ruling in January 2024 favored Seoul City. The court noted, "Seoul City had insisted on free use as a condition for the park project from the beginning of negotiations with the Korea Railroad Corporation, which proposed 'handling of state property' as a way to cooperate with Seoul City's request for land provision." The court interpreted this as an intention to exempt the usage fee for long-term free use of the land, given that park facilities would likely remain permanently on the former railway site.However, the appellate court overturned the first ruling in February of last year, stating, "It is difficult to view the alleged 'free use agreement' as existing in the contract between Seoul City and the Korea Railroad Corporation," and concluded that the imposition of the charge was lawful.* This article has been translated by AI. 2026-08-12 11:40:00
  • Iljin Electric Soars Over 15% on Record Earnings Amid Mixed Price Target Outlook
    Iljin Electric Soars Over 15% on Record Earnings Amid Mixed Price Target Outlook Iljin Electric's stock surged over 15% during trading after the company reported record earnings for the second quarter of this year. Analysts expect continued profitability improvements driven by expanding overseas sales, particularly in the United States, although opinions on price targets vary.As of 11:08 a.m. on August 12, Iljin Electric shares were trading at 71,800 won, up 10,000 won (16.18%) from the previous day. At one point, the stock reached 74,400 won, reflecting strong market performance.On August 11, Iljin Electric announced that its operating profit for the second quarter reached 72 billion won, a 91.4% increase compared to the same period last year. Revenue for the same period was 637.4 billion won, up 21.9%. Both revenue and operating profit are the highest recorded for a second quarter.The company's power equipment segment saw revenue of 206.5 billion won, a 57% increase year-on-year, with operating profit rising 142% to 53.3 billion won. The profit margin for this segment improved to 25.8%, bolstered by increased sales to the U.S. The backlog for the power equipment segment stood at $1.29 billion, with 77% of that coming from North America.In the wire segment, second-quarter revenue was 430.3 billion won, a 10% increase from the previous year, while operating profit rose 83% to 18.9 billion won. For the first half of the year, sales of high-voltage transformers reached 251.8 billion won, with North America accounting for about 40% of that total.Iljin Electric also achieved record results for the first half of the year, with total revenue of 1.1435 trillion won and operating profit of 122.7 billion won.Analysts predict that Iljin Electric's earnings growth will continue in the second half of the year, although there are differing views on price target adjustments.Mirae Asset Securities raised its price target for Iljin Electric from 95,000 won to 114,000 won, an increase of 20.0%, while maintaining a 'buy' rating.Kim Tae-hyung, a researcher at Mirae Asset Securities, stated, "We expect further profit margin improvements due to the increased share of sales to the U.S. Considering that it typically takes about three years from order to revenue recognition, the share of North American sales will continue to grow until the 2029 orders are fully shipped."Concerns about production capacity have eased somewhat. Iljin Electric increased its second-quarter revenue by operating its production lines above capacity without additional expansions. The production line utilization rate for the first half of the year was 108%. Kim noted, "The ability to secure additional revenue without capital expenditure (Capex) burdens is a positive factor for profitability."Conversely, NH Investment & Securities maintained a 'buy' rating but lowered its price target from 118,000 won to 108,000 won, a decrease of 8.5%. This adjustment reflects the rising cost of equity due to interest rate increases, though it does not indicate a negative outlook on earnings.Lee Min-jae, a researcher at NH Investment & Securities, commented, "We expect continued profit margin improvements in the second half due to the increased share of North American sales. Additionally, profitability from projects outside North America remains strong, and we anticipate benefits from three major mega projects underway in South Korea."* This article has been translated by AI. 2026-08-12 11:36:00
  • Air Premia Enhances HSC Business Model for U.S. and Transfer Services
    Air Premia Enhances HSC Business Model for U.S. and Transfer Services Air Premia announced on August 12 that it is enhancing its Hybrid Service Carrier (HSC) business model to strengthen customer service and network competitiveness, focusing on long-haul routes centered around the U.S.The airline is prioritizing seat services to improve convenience for long-distance travelers. It is expanding the space between some economy seats from 31 inches to 33 inches and is operating a wide premium class that offers more space than standard economy.In fact, the boarding rate for the wide premium class on U.S. routes in the first half of this year was about 4 percentage points higher than that for Asian routes, indicating a strong customer preference for more spacious seating on longer flights.Air Premia is also enhancing in-flight services, including meals, baggage handling, and entertainment. Currently, free one-hour Wi-Fi is available on three aircraft, with plans to expand this service to the entire fleet in the future.Building on this customer experience, the airline has expanded its long-haul network in the U.S. It now serves major cities from the West Coast, such as Los Angeles and San Francisco, to the East Coast, including New York and Washington, D.C., as well as Honolulu. Notably, the proportion of foreign passengers on mainland U.S. routes, excluding Honolulu, is approximately 55.3%, ensuring a stable global demand base.Cargo transport utilizing the long-haul network is also on the rise. Last year, cargo volume reached 34,546 tons, a 47.5% increase from the previous year. The airline is enhancing the utilization of long-haul routes by transporting both passengers and cargo through services like the 'Aloha Express' connecting Incheon International Airport and Honolulu.As Air Premia expands its long-haul network centered around Incheon, demand for transfer and interline services is rapidly increasing. In the first half of this year, the number of transfer passengers reached 39,110, a 454.2% increase compared to the same period last year. The airline connects its own Asian routes, including Narita, Bangkok, and Hong Kong, with U.S. routes, while also linking to regions in Asia, such as China, through interline agreements, thereby enhancing its network competitiveness.An Air Premia official stated, "Air Premia's HSC is a business model that enhances both the services and connectivity that customers actually need based on long-haul routes. We will continue to expand transfer and interline services centered around our U.S. network and invest in customer experience to create a differentiated HSC business model."* This article has been translated by AI. 2026-08-12 11:36:00