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  • Savings Bank Collateral Loans Drop Nearly 20% in Three Years
    Savings Bank Collateral Loans Drop Nearly 20% in Three Years The balance of collateral loans backed by savings and deposits at savings banks has decreased by nearly 20% over the past three years. This decline is attributed to a shift of funds to the stock market and a weakening of the savings banks' competitive edge in attracting deposits. This trend contrasts with the recent increase in collateral loans at the five major commercial banks.According to the Financial Supervisory Service's financial statistics information system, as of the end of the first quarter of this year, the balance of collateral loans at 79 savings banks nationwide was 908.33 billion won, down 5.6% from 962.3 billion won at the end of last year. Compared to 1.11866 trillion won at the end of March 2023, this represents an 18.8% decrease.Collateral loans allow customers to borrow up to 95% of their savings and deposits without being subject to the total debt service ratio (DSR) regulations, making them a popular option for those in need of quick, short-term funds.The primary reason for the decline in collateral loans at savings banks is the reduction in their deposit base. According to the Bank of Korea's economic statistics system, the total deposits at savings banks fell from 116.0431 trillion won in March 2023 to 99.5740 trillion won in March this year, a decrease of 14.2%. During the same period, the balance of collateral loans also dropped by 18.8%. As the amount of savings and deposits available for collateral has diminished, related loans have also decreased.The recent boom in the stock market has also contributed to the outflow of funds from savings banks to the securities market. Industry experts suggest that some customers may have opted to withdraw their savings rather than take out collateral loans when they needed cash. Many high-interest savings products have low monthly contribution limits, resulting in smaller amounts available for collateral loans.A representative from a savings bank noted, "Even if the interest rates on savings and deposits are high, the low monthly contribution amounts often mean that the amount available for collateral loans is less than 5 million won. To secure a significant amount, customers typically need to contribute for at least six months, but in urgent situations, the amount available through collateral loans may not be sufficient, leading to cases of early withdrawal of savings and deposits."This trend contrasts with the situation at commercial banks. In July of this year, the balance of collateral loans at the five major commercial banks increased compared to the previous year. This rise is attributed to heightened demand for collateral loans, which are not subject to DSR regulations and offer relatively lower interest rates amid stricter lending regulations. Conversely, the significant reduction in deposits at savings banks has diminished the foundation for supporting such loan demand.However, with the recent slowdown in the stock market and savings banks raising interest rates on savings products to secure deposits, there is potential for a shift in this trend. If savings bank deposits begin to increase again, it may impact the ongoing decline in collateral loans.Another savings bank representative stated, "Collateral loans are typically used for a month or two when cash is urgently needed or when additional loans are unavailable. If the balance of savings and deposits recovers and the barriers to other loans increase, related demand may remain at a certain level."* This article has been translated by AI. 2026-08-12 14:48:00
  • Han Dong-hoon Fails to Appear for Special Prosecutors Inquiry
    Han Dong-hoon Fails to Appear for Special Prosecutor's Inquiry Independent lawmaker Han Dong-hoon did not attend a second inquiry by the special prosecutor's team regarding the ruling party-government meeting held immediately after the lifting of the state of emergency on August 12. The special prosecutor attempted to summon Han at 10 a.m. on the 12th as a witness to discuss the justification for the emergency declaration, but he did not respond. The special prosecutor stated, "He did not submit a reason for his absence," adding, "Considering the limited time left for the investigation, we are not considering a re-summons for him." The investigation period is set to conclude on the 23rd. Previously, the special prosecutor's office had sent a notice through Han's office requesting his appearance as a witness related to the ruling party-government meeting. On August 6, Han expressed on social media, "I have no intention of assisting the political investigation that the Lee Jae-myung administration is trying to conduct, which has kept me under a travel ban for months without reason during the election period and has never called me in until now, only to engage in showy public relations." The special prosecutor suspects that a follow-up meeting took place at the Prime Minister's residence the day after the emergency declaration, where former Minister of Justice Park Seong-jae, former Minister of the Interior and Safety Lee Sang-min, former Chief of Civil Affairs Kim Joo-hyun, and former Minister of Legislation Lee Wan-kyu discussed strategies to respond to the impeachment of former President Yoon Suk-yeol and allegations of insurrection. On August 6, the special prosecutor also summoned former Minister of Government Policy Coordination Bang Gi-seon as a witness.* This article has been translated by AI. 2026-08-12 14:48:00
  • Daegu named first hub for South Koreas AI drug-discovery drive
    Daegu named first hub for South Korea's AI drug-discovery drive SEOUL, August 12 (AJP) - South Korea has designated the southeastern city of Daegu as the first innovation hub for artificial intelligence-driven drug discovery under "K-Moonshot," the government's flagship program to embed AI across national science and technology research. The Ministry of Science and ICT said on Wednesday it had held a launch ceremony in Daegu for a pilot project to build an "AIxBio" research base focused on synthetic new drugs, drawing together universities, companies, hospitals and research institutes in an open innovation ecosystem. At the heart of the Daegu project is a so-called "Lab-in-the-Loop" system, in which AI models, autonomous experiments, validation and data feedback continuously reinforce one another. The ministry said the design aims to let laboratories and algorithms advance in tandem, offering a new paradigm for how medicines are found. The pilot will be run by a Daegu consortium comprising Kyungpook National University, its affiliated hospital, and the Daegu-Gyeongbuk Medical Innovation Foundation, working with firms such as HLB Life Science to verify AI-proposed compounds in partly automated labs. "The competitiveness of future drug development hinges on how effectively we connect and apply AI technology and data within real experimental environments," said Oh Dae-hyun, the ministry's director general for future strategic technology policy, adding that next year the government would build on the pilot's results to expand into other areas of AI-bio. AJP Takeaways • Daegu becomes the first regional hub in the K-Moonshot program's AI drug-discovery mission, hosting a "Lab-in-the-Loop" system that links AI prediction, autonomous experiments and validation in a continuous cycle. • The pilot is led by a consortium of Kyungpook National University, its hospital, and the K-MEDI hub foundation, partnering with firms including HLB Life Science to test AI-proposed compounds in partly automated labs. • The ministry framed the effort as a bid to close the gap with the United States and Britain, which have already built dedicated AI-bio bases, and said next year it would extend the model into other AI-bio fields. 2026-08-12 14:47:14
  • Toss Banks Grow It 31-Day Savings Surpasses 100,000 Accounts in Just Four Days
    Toss Bank's 'Grow It 31-Day Savings' Surpasses 100,000 Accounts in Just Four Days Toss Bank's challenge-based savings product is gaining popularity shortly after its launch.The bank announced on August 12 that its 'Grow It 31-Day Savings' surpassed 100,000 accounts just four days after its release on August 6.This product encourages users to save small amounts daily for 31 days while nurturing a squirrel character. A maximum annual interest rate of 10% (before tax) is applied if users successfully save each day without any additional conditions.According to Toss Bank, 94% of all account holders executed their first deposit on the same day they opened their accounts. Additionally, accounts opened by users under 17 years old exceeded 20,000, making up more than 20% of total accounts.On August 10, Toss Bank also introduced a 'Share My Squirrel' feature, allowing users to create and share images of their nurtured squirrels with friends and family.A Toss Bank representative stated, 'The Grow It 31-Day Savings is designed not just as a product to sign up for, but to help cultivate a daily saving habit. We will continue to strive to make it easy for customers to start saving without pressure and to maintain that habit.'* This article has been translated by AI. 2026-08-12 14:44:10
  • KOSDAQ Companies Call for Eased Delisting Standards Amid Market Turmoil
    KOSDAQ Companies Call for Eased Delisting Standards Amid Market Turmoil The South Korean stock market is facing significant pressure from financial authorities and the Korea Exchange as stricter delisting criteria are enforced. Under the new rules, dozens of companies with stock prices below 1,000 won, known as 'penny stocks,' and those failing to meet the market capitalization requirement of 20 billion won for KOSDAQ are at risk of being designated as management items and facing delisting. As of August 12, 178 out of 1,820 listed KOSDAQ companies, or 9.8%, are in jeopardy due to insufficient market capitalization.Some small and mid-sized listed companies, along with certain market participants, argue that applying these standards during an unprecedented market downturn is excessively harsh, calling for a grace period or relaxation of the rules. However, investor reactions to these complaints have been largely indifferent, with many viewing the situation as a consequence of the companies' own mismanagement and neglect.The plight of some KOSDAQ small-cap firms is dire, with annual revenues barely reaching 3 billion won. These companies often engage in deal roadshows to attract investors when seeking initial public offerings (IPOs) or funding, presenting grand visions for the future. Yet, once they secure investment and complete their listings, they frequently abandon investor relations (IR) activities altogether.In the past year, no analysis reports have been published for 59.9% of KOSDAQ companies, highlighting a severe information gap in the market. This 'IR extinction' phenomenon is particularly pronounced among smaller firms, which tend to disappear from regular investor communications and instead issue excessive convertible bonds and capital increases, undermining shareholder value.Many companies lack even basic press releases or disclosure plans on their websites, and the personnel responsible for disclosures and IR often change frequently, closing off communication channels. While they readily spend company funds on entertainment and leisure, many fail to share even minimal visions or engage with shareholders. This behavior exemplifies a moral hazard, treating company funds as personal assets.Compared to advanced foreign markets, the situation in KOSDAQ is even more disheartening. In the U.S. market, companies can actively engage shareholders through conference calls, even while operating at a loss, to present growth roadmaps. In Japan, shareholders are treated as 'consumers and loyal customers,' with long-term investors receiving coupons for company products or services as part of shareholder benefits, actively promoting stock prices and shareholder returns. In contrast, many lower-tier KOSDAQ companies merely complain about harsh regulations without making genuine efforts to boost their stock prices.The Korea Exchange's consideration of enhancing IR activities and gradually mandating them is part of an effort to address the undervaluation of KOSDAQ and the asymmetry of information. In a climate where analysis reports are scarce and companies remain silent, the distinction between quality and struggling firms blurs, perpetuating a cycle of discounting across the KOSDAQ.The most critical issue is that the burden of delisting falls squarely on retail investors. Some major shareholders and executives, having secured funds through the IPO process, may even find relief in being 'freed from disclosure obligations' if their companies are delisted, a phenomenon that fuels market anger.There are reasons behind the plummeting stock prices and market capitalization. Before blaming the system or expressing grievances, companies should first ask themselves whether they have ever made an effort to present a future vision to shareholders or actively communicate beyond deal roadshows. Have they genuinely worked to support their stock prices?True value enhancement begins not with demands for regulatory relaxation but with a fundamental sense of responsibility toward shareholders and ongoing communication. 2026-08-12 14:44:10
  • Telecom Giants Report Combined Operating Profit of 1.5 Trillion Won
    Telecom Giants Report Combined Operating Profit of 1.5 Trillion Won The combined operating profit of South Korea's three major telecom companies—SK Telecom, KT, and LG Uplus—has risen to 1.5 trillion won for the first time in a year. Although KT's real estate development profits led to a year-on-year decline, improvements in profitability at SK Telecom and LG Uplus, along with growth in new businesses such as artificial intelligence (AI) and data centers, supported the overall performance.On August 12, the combined revenue for the second quarter of the three companies was reported at 14.73 trillion won, a decrease of 5.6% compared to the same period last year. The combined operating profit also fell by 6% to 1.56 trillion won during the same timeframe.This marks the first time since the second quarter of last year that the combined operating profit of the three companies has exceeded 1.5 trillion won. The operating profit had previously increased to 1.51 trillion won in the first quarter of last year and 1.66 trillion won in the second quarter. However, due to hacking incidents and one-time costs, the profit dropped to 748.3 billion won in the third quarter, 516.9 billion won in the fourth quarter, and 1.29 trillion won in the first quarter of this year, falling below 1.5 trillion won for three consecutive quarters.The combined operating profit for the second quarter of this year decreased by 988 billion won compared to last year, primarily due to the base effect from KT's real estate development profits. The decline in KT's operating profit outweighed the increases at SK Telecom and LG Uplus, leading to an overall decrease in operating profit year-on-year.Specifically, SK Telecom reported second-quarter revenue of 4.36 trillion won and an operating profit of 566 billion won, marking increases of 0.5% and 67.3%, respectively, compared to the previous year. The improvement was influenced by a base effect from costs related to last year's SIM card hacking incident and a focus on profitability.KT's revenue was 6.68 trillion won, with an operating profit of 648.3 billion won, reflecting decreases of 10.1% and 36.1%, respectively. The decline was attributed to the base effect from last year's real estate development sales and customer compensation programs related to femtocell hacking.LG Uplus achieved revenue of 3.69 trillion won and an operating profit of 344.5 billion won. While revenue decreased by 3.9% year-on-year, operating profit increased by 13.1%. The growth in service revenue, particularly in enterprise infrastructure and smart home services, along with ongoing cost efficiencies, contributed to the improved profitability.Looking ahead, the three telecom companies plan to strengthen investments in AI data centers (AIDC) and AI infrastructure. The combined revenue from data center-related sales reported by SK Telecom, KT Cloud, and LG Uplus this quarter reached 525.7 billion won, a 35.3% increase from the previous year.In response to the growing demand for AI infrastructure, they have announced plans to expand AIDC. SK Telecom established a specialized company, SK Hyper, last month to develop large-scale data center projects, aiming to gradually expand capacity to 5 gigawatts (GW) by 2029, with plans to reach 15 GW thereafter.KT aims to double its AI transformation (AX) revenue by 2028, focusing on AX infrastructure and solutions as key growth drivers. The company plans to add 1 GW of AIDC capacity and 90 terabits per second (Tbps) of submarine cable capacity by 2031, targeting to become a hub for AX in Asia.LG Uplus is expanding its infrastructure centered around the Paju AIDC, which will be built with a power capacity of 200 megawatts (MW). Last month, LG Uplus decided to invest an additional 1.35 trillion won to construct two new data center buildings and enhance facilities to meet the increasing AI demand. 2026-08-12 14:44:10
  • Actress Ha-young Apologizes for Great-Grandfathers Pro-Japanese Controversy
    Actress Ha-young Apologizes for Great-Grandfather's Pro-Japanese Controversy Actress Ha-young has issued a handwritten apology regarding the pro-Japanese controversy surrounding her great-grandfather.On August 12, she opened her Instagram post by saying, "I sincerely apologize for the disappointment and hurt caused by matters related to my great-grandfather."She continued, "Recently, as I learned about the past actions of my great-grandfather Ahn Sang-ho, I have reflected on my family's history with a heavy heart. Until now, I only had a fragmented understanding of my great-grandfather's life through stories passed down in my family. Regrettably, I have shared these stories in various settings as if they were a source of family pride, despite my ignorance."Ha-young explained that through this incident, she sought out relevant materials and became aware of her great-grandfather's pro-Japanese actions. "I reflect on how I lightly mentioned my family history without fully understanding the painful history of our country during the Japanese occupation," she stated.Regarding her agency's initial statement, which claimed the allegations were unfounded, she said, "I also did not know the facts accurately, and my agency's statement was released without sufficient verification. I believe it was my shortcoming that a misleading position was communicated, causing further confusion and hurt, for which I sincerely apologize."Ha-young added, "The matter is so serious and regrettable that I struggled with how to express my apology, which delayed my statement. I believe that my lack of knowledge does not excuse me from facing this history or treating it lightly. I accept this mistake seriously and sincerely apologize as a descendant. I feel particularly remorseful for causing controversy due to my shortcomings just before Liberation Day."She concluded, "I will deeply engrave this incident in my heart. I will take a closer look at my family's history and that era, and I will adopt a more cautious attitude toward history in the future. I will also 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 peace. I will put these words into action, not just in words."Once, Ha-young appeared on KBS 2TV's variety show 'Problematic Men' and introduced her family as a 'four-generation medical family,' stating, "My great-grandfather opened the first Western-style clinic in Hanyang and treated Emperor Gojong." However, it was later revealed that her great-grandfather, Ahn Sang-ho, had pro-Japanese affiliations. He graduated from the Tokyo Jiyu Medical School in 1902, becoming the first Korean to obtain a Japanese medical license and treated Emperor Gojong. He was also listed as a member of the pro-Japanese organization Daijeong Chinhokhoe, which included figures like Lee Wan-yong. This revelation has intensified criticism of Ha-young's family.* This article has been translated by AI. 2026-08-12 14:44:00
  • NH Nonghyup to Expand Chuseok Gift Set Offerings from Budget to Premium Options
    NH Nonghyup to Expand Chuseok Gift Set Offerings from Budget to Premium Options NH Nonghyup is set to introduce a range of special sale products with varying price points, from premium to budget-friendly options, ahead of the upcoming Chuseok holiday.On August 12, NH Nonghyup held its '2026 Chuseok Special Sales Strategy Meeting' to review its sales strategies for holiday gift sets.This year, the company plans to diversify its offerings, focusing on fruits, premium beef, pork, seafood, and health products. It aims to reduce the financial burden on customers by linking new product discounts with credit card promotions.In the livestock category, NH Nonghyup will offer the 'Nonghyup King's Table Gift Set,' which includes premium beef and local ingredients, as well as unique packages like the 'Canned Beef Gift Set' and the 'Hanadak Pork 8 Flavors Gift Set.'For seafood, the company will provide mixed sets featuring dried anchovies and domestic seafood, along with a seaweed gift set priced around 9,900 won. In the agricultural sector, premium mixed fruit sets and traditional fruit and nut sets will include new varieties such as black pearl melons and myth pears.The competition for pre-orders in the Chuseok gift set market is intensifying. Major retailers like Emart, SSG.com, and Lotte Mart began pre-order sales for Chuseok gift sets on August 6, with sales lasting up to 42 days.In 2024, pre-orders accounted for 61.6% of Emart's Chuseok gift set sales, rising to 72.6% last year. Similarly, Lotte Mart saw an increase from 55% in 2023 to 70% last year.NH Nonghyup's strategy to increase both premium and budget-friendly options aligns with industry trends while emphasizing the expansion of domestic agricultural and seafood product sales, which sets it apart.As inflation persists, enhancing the selection of budget-friendly products is a common trend. Lotte Mart has filled more than half of its 900 pre-order gift set offerings with items priced under 50,000 won.Lee Dong-geun, CEO of NH Nonghyup, stated, “We will reduce the holiday burden on customers with a variety of price points and practical benefits, while also working to expand the market for our domestic agricultural and seafood products.”* This article has been translated by AI. 2026-08-12 14:44:00
  • Naver Proposes Unified Labor Negotiations, Raising Tensions in IT Sector
    Naver Proposes Unified Labor Negotiations, Raising Tensions in IT Sector Naver's labor union is advocating for the consolidation of collective bargaining, currently conducted by individual subsidiaries, into a unified approach for the entire corporate group. This move has raised concerns among competitors, including Kakao and the gaming industry.On August 12, Oh Se-yoon, vice chair of the IT committee of the Korean Chemical and Textile Workers' Union and head of the Naver branch, spoke at a forum held at the National Assembly, stating, "The Naver branch is negotiating collective agreements with 15 companies, including Naver itself. Each year, over 100 negotiators from both labor and management spend more than 1,000 hours on negotiations, totaling 150 sessions annually."He continued, "Conducting separate negotiations on similar issues within the same corporate group incurs significant time and costs. Even with identical working conditions, subtle differences arise between corporations, leading to increased feelings of deprivation among subsidiary workers."Oh argued that the parent company effectively controls its subsidiaries, linking management and operations. He clarified that the goal of unified negotiations is not to standardize wages and benefits across all subsidiaries but to negotiate common labor conditions at the corporate group level while addressing individual company matters separately.Panelist Park Myung-jun, a senior researcher at the Korea Labor Institute, explained, "Reducing repetitive negotiations and adjustment processes at the corporate level can lower overall negotiation costs and establish common principles applicable to subsidiaries, allowing for more stable management of inter-company conflicts."Major IT companies, including Naver, express significant concerns about unified negotiations. The challenge lies in applying different wage compensations for profitable and unprofitable subsidiaries, which could lead to increased labor costs. Conflicts at one subsidiary could potentially trigger joint strikes or work stoppages across all subsidiaries.The key issue is whether the parent company has substantial control over the working conditions of its subsidiaries. Acknowledging this control could undermine the unique management rights of each subsidiary's CEO, raising concerns about management interference.Particularly, Kakao, which has multiple subsidiaries, and the gaming industry, with various development studios and affiliates, share similar corporate structures. If discussions on unified negotiations expand, labor relations could deteriorate rapidly.Meanwhile, the push for unified negotiations originated from Naver's subsidiary, Naver Z. While Naver agreed to a wage increase of 5.3%, Naver Z froze salaries due to market downturns. The union subsequently demanded a raise at the corporate level, leading to a breakdown in negotiations. The Gyeonggi Regional Labor Relations Commission attempted mediation, but it ended without significant results.* This article has been translated by AI. 2026-08-12 14:40:10
  • Kim Hak-kyun of Shin Young Securities: Reviving the KOSDAQ Market Requires Trust Restoration
    Kim Hak-kyun of Shin Young Securities: Reviving the KOSDAQ Market Requires Trust Restoration Kim Hak-kyun, head of the research center at Shin Young Securities, began his career as an analyst in 1997. He has worked at Shinhan Investment Corp., Korea Investment & Securities, and Mirae Asset Daewoo before leading the research center at Shin Young Securities. He has witnessed significant turning points in the Korean capital market, from the Asian financial crisis to the global financial crisis and the surge in the stock market following the COVID-19 pandemic. While the KOSPI has seen some growth, the KOSDAQ has struggled to escape its prolonged slump. How can the KOSDAQ market be revitalized?Kim emphasized that restoring market trust is essential. He stated, "There are too many stocks in the KOSDAQ, leading to poor management and significant information asymmetry. Successful companies in the KOSDAQ often move to the main board, but fundamentally, nothing changes. They leave due to the market's poor reputation."He pointed out, "In Korea, the KOSDAQ is the only market where venture investors can invest in listed companies and recoup their investments. If the KOSDAQ thrives, initial public offerings (IPOs) will increase, but the presence of too many questionable companies raises doubts about the market's integrity." He added, "The market was launched 30 years ago with an index of 1,000. It is unacceptable that it fluctuates around 800 now."Regarding government policies to revitalize the KOSDAQ, he said, "We need to first separate good companies from poor ones before implementing any revitalization measures. It would be beneficial to isolate stocks that are deemed difficult to remain in the public market. We need to distinguish between the good and the bad."Some have criticized the tightened delisting criteria as overly strict. Kim acknowledged that it is possible to argue that the current policies are excessive, but he stressed, "To revive the KOSDAQ market, we must reflect on the past 30 years of its existence."* This article has been translated by AI. 2026-08-12 14:40:10