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  • Concerns Raised Over Reassessment of Historic Metal Typefaces by Cultural Heritage Agency
    Concerns Raised Over Reassessment of Historic Metal Typefaces by Cultural Heritage Agency The reassessment of the 'Jeongdogaja,' a metal typeface potentially predating the world's oldest known metal type, the Jikji, by 138 years, is set to be decided on August 13. However, it has come to light that some experts involved in the 2017 review of the Jeongdogaja's designation as a treasure are still part of the Cultural Heritage Committee's movable cultural heritage division. This raises questions about whether individuals who participated in the previous review should also be involved in the reassessment of the same artifact.Current regulations of the Cultural Heritage Committee stipulate that members or experts who have directly participated in a case should be excluded from investigation, review, and decision-making processes. Given that an audit revealed significant omissions and incorrect statistical applications during the 2017 review, the eligibility of those involved in that process must be scrutinized if the reassessment proceeds.The Jeongdogaja is believed to have been used to print the treasure No. 758, 'Nammyo Cheonhwa Sang Song Jeongdogaja,' created in 1239. If this claim is scientifically verified, it would predate the Jikji, printed in 1377, by 138 years. While the Jikji exists only in printed form, the Jeongdogaja is a physical metal type, which has garnered significant academic interest.The application for the Jeongdogaja's designation as a treasure was rejected during the 2017 Cultural Heritage Committee review. The reasons cited included doubts about its use as a printing type and insufficient verification of its provenance and ownership history.Audit Reveals Issues in 2017 Review ProcessThe controversy reignited last year when the results of an audit were made public during a national assembly inspection. It was revealed that key results from typesetting experiments were not properly communicated during the 2017 review, and there were issues with the statistical analysis.The designation investigation report at the time recorded that the sizes of the printed versions of 'Sok Myeong Yeok' and 'Seok Bo Sang Jeol' were reduced by 0.3 to 0.5 cm and 0.8 cm, respectively, compared to the original prints. However, the review secretary reported that there was no size difference for 'Sok Myeong Yeok,' and the 0.8 cm shrinkage noted in 'Seok Bo Sang Jeol' was not communicated to the committee members.Problems were also identified in the statistical analysis. If the advice from the National Statistical Office had been properly applied, the conclusion should have indicated that typesetting was possible, but the actual review concluded it was not feasible.This means that the decision on whether to designate the Jeongdogaja as a treasure was made without the committee members receiving objective data that could have influenced the outcome. Following the audit's findings, the Cultural Heritage Administration has indicated the need to reassess the authenticity of the Jeongdogaja and has been considering the possibility of a reassessment.Concerns Over Fairness in Reassessment ProcessThe key issue is who will conduct the investigation and make the judgment if a reassessment is decided. The movable cultural heritage division of the Cultural Heritage Committee, established in May, is responsible for artifacts like the Jeongdogaja.Among the experts in this division, two are known to have participated in the 2017 review of the Jeongdogaja. One has been appointed seven times consecutively and has served for over 14 years, while the other has been appointed six times consecutively for about 12 years.While long-term appointments do not violate current laws, the involvement of individuals who previously participated in the review of the same artifact raises concerns. Current presidential regulations state that members or experts who have directly engaged with a case should be excluded from investigation, review, and decision-making.Legally, the question arises whether the 2026 reassessment falls under the same 'case' as the 2017 review. If deemed the same case, those who were directly involved in the previous review would be subject to exclusion under the regulations.Even if the Cultural Heritage Administration views this process as a separate new case from the 2017 review, the same regulations allow parties to request the exclusion of specific members or experts if they believe a fair investigation and review cannot be expected.Potential Legal Implications from 2017 Review ErrorsThe issues identified in the 2017 review process extend beyond procedural fairness. Depending on how the documentation and reporting were conducted, there could be criminal implications.If the official responsible for the review had the authority to prepare official review materials or reports and knowingly recorded different information from the actual measurements, it could lead to charges of falsifying official documents.It is crucial to distinguish between simple errors in judgment and the act of misrepresenting objective facts. If the actual measurements indicated a shrinkage of 0.3 to 0.5 cm, but the official document stated 'no difference,' this is different from a mere difference of professional opinion.Conversely, the evaluation of statistical results regarding the feasibility of typesetting involves professional judgment. This aspect requires investigation into who applied which analytical methods and on what basis conclusions were altered.Abuse of authority is also a potential concern. If the review secretary used their official authority to direct or supervise in a way that led to a specific review conclusion, it could raise issues of abuse of power under criminal law.Thus, the focus of the investigation into the 2017 review should not only be on the miscommunication of data but also on who prepared or reported incorrect information, what directives were exchanged during the process, and whether other review participants were aware of these issues.Long-Term Committee Members Raise Questions About Reassessment IntegrityThe issue of long-term appointments is again coming under scrutiny in light of the reassessment. In 2019, the government amended the Cultural Heritage Committee regulations to limit the number of consecutive terms for members to two, aiming to enhance the fairness of committee operations.However, in 2023, the regulations were revised again, removing the limit on consecutive terms. While the two-term limit applied to 'members,' it did not extend to experts, meaning the long-term appointments of the current experts cannot be deemed a violation of regulations.The crux of the issue is not the number of terms served but whether it is appropriate for the same individuals who have long been involved in the investigation of a specific artifact to reassess that same artifact.While there is a need for experienced experts to maintain professionalism, having individuals who were directly involved in past reviews reassess the same issues presents a different challenge. This is why the government has established separate provisions for exclusion, avoidance, and recusal.Concerns About Trust in Cultural Heritage AdministrationThe recent reassignment of Hwang, the director of the Cultural Heritage Administration who served as the review secretary for the Jeongdogaja in 2017, has also drawn attention. Hwang was transferred to the Intangible Heritage Division in Jeonju in January and returned to the headquarters in Daejeon as the director of the Natural Heritage Division on August 7, just six days before the expected decision on the Jeongdogaja reassessment.While the Natural Heritage Division is not directly responsible for the movable cultural heritage division that reviews the Jeongdogaja, the Cultural Heritage Administration has stated that this personnel change is unrelated to the Jeongdogaja issue.Thus, the timing of the reassignment alone cannot definitively link it to the reassessment. What needs to be clarified is Hwang's actual role in this review process.It is essential to determine whether Hwang provided the 2017 review materials for this process, discussed the direction of the Jeongdogaja review with responsible officials, or consulted with committee members or experts on related matters. Given the audit's findings regarding the reporting process, the Cultural Heritage Administration must clarify Hwang's level of involvement in this reassessment.Trust in the Reassessment ProcessIf the Cultural Heritage Administration decides on the reassessment of the Jeongdogaja on August 13, the first step must be to clarify the composition of the review committee. It is crucial to identify which current members and experts participated in the 2017 review and what roles they played in that investigation and judgment.It must also be established whether these individuals will be excluded from the current investigation and review. If they determine that this is not the same case and therefore not subject to exclusion, they need to provide the rationale for that decision and whether there are any grounds for avoidance or recusal.Additionally, the roles of individuals from the Cultural Heritage Administration who were involved in the 2017 review, including Hwang, should be disclosed. If this reassessment is a process to reconsider issues stemming from the previous review, it is essential to distance those who contributed to the previous problems from the current judgment.Trust in the outcome will be difficult to achieve if those making the decisions are intertwined with the past review. This is especially true given the audit's findings that key data was omitted and statistical results were not accurately reflected during the 2017 review.As the Cultural Heritage Administration prepares for the reassessment, the first priority must be to clarify who will be involved in the review process.* This article has been translated by AI. 2026-08-11 16:52:10
  • Debate Erupts Over Tax Reforms for Non-Resident Homeowners
    Debate Erupts Over Tax Reforms for Non-Resident Homeowners Concerns and criticisms regarding the government's real estate tax reform plan were voiced during a full meeting of the National Assembly's Land, Infrastructure and Transport Committee. Lawmakers from both the ruling and opposition parties expressed worries that increased taxes on non-resident homeowners could harm genuine homebuyers and destabilize the rental market. On August 11, the committee meeting featured questions directed at Minister of Land, Infrastructure and Transport Kim Yun-deok and First Vice Minister Kim I-tak regarding the tax reform plan and the government's response to the housing market. The main issue was the proposed tax increase for non-resident homeowners. The government aims to strengthen tax burdens on these homeowners to establish a housing market order focused on actual residents. However, concerns were raised that even unavoidable circumstances such as work, education, health issues, or caring for parents could fall under this regulation. Democratic Party lawmaker Kang Deuk-gu stated, "There are opinions that we need to reconsider the sunset provision for non-resident homeowners who have become so due to unavoidable reasons like work or education. We need to carefully consider policies to prevent harm to these individuals." The potential instability in the rental market was also highlighted. Kang noted, "If we regulate non-resident homeowners, they will either have to live in the property or sell it. This could force tenants to vacate, raising concerns about rent increases." The opposition party strongly criticized the government's policies. People Power Party lawmaker Kang Dae-sik pointed out, "Looking at the cumulative change rate of housing sales in the metropolitan area during the first year of the current administration compared to the Roh Moo-hyun administration, the increase rate is the highest under this government." He added that rental prices in Seoul continue to rise to record levels. Kang also criticized the real estate policies of the Lee Jae-myung administration, stating, "If I were to give a grade, it would be an F. There is a saying that taxes encourage people to sell their homes while loans discourage them from buying." People Power Party lawmaker Kim Mi-ae raised concerns about the possibility of landlords passing on the tax burden to tenants. She remarked, "While the government aims for market stabilization and a focus on actual residents, landlords are likely to reflect the increased tax burden in rental prices or convert leases from jeonse to monthly rent." She emphasized, "Ultimately, the most vulnerable, the tenants, will bear the brunt of this. The impact on the rental market should have been thoroughly analyzed before announcing the tax reform plan." The issue of tax equity for couples owning a single home was also discussed. People Power Party lawmaker Kim Eun-hye questioned, "Couples living together in one home are now facing tax burdens similar to those of multiple homeowners. The president has encouraged marriage, but shouldn't this tax approach be improved?" Kim added, "Is it reasonable for one part of the government to promote marriage while another part encourages separation or divorce? We need to consider adjustments to the system." Minister Kim Yun-deok indicated that there is room for adjustments to minimize market shock. He stated, "It is important to work to reduce market shock through phased implementation and to continue monitoring public opinion." First Vice Minister Kim I-tak also responded, "Since we are in the legislative notice period, I believe adjustments can be made." Questions regarding supply policies also arose. Democratic Party lawmaker Kim Nam-kun criticized the supply policies of Seoul Mayor Oh Se-hoon, stating, "The current housing and rental crisis stems from the supply policies during Oh's four-year term." Kim pointed out, "While Mayor Oh denies a significant drop in housing supply, even based on permit standards, it is only 62% of the target. There is widespread criticism that the so-called rapid integrated planning is neither rapid nor integrated, merely a name."* This article has been translated by AI. 2026-08-11 16:52:10
  • Record Power Demand Amid Heat Wave Raises Pressure for Electricity Rate Hike
    Record Power Demand Amid Heat Wave Raises Pressure for Electricity Rate Hike As extreme heat drives total power demand to record levels, the financial burden related to power systems is expected to increase due to climate change. Analysts suggest that the 'climate adaptation costs' associated with investments in power grids and energy storage systems (ESS) may lead to pressure for higher electricity rates amid ongoing financial challenges for Korea Electric Power Corporation (KEPCO).According to the Korea Power Exchange, total demand, including both market and external demand, reached 104.4 gigawatts (GW) on August 7 at 3 p.m., surpassing the previous record of 104.2 GW set on August 25 last year. On the same day, market demand peaked at 95.3 GW, resulting in a supply reserve of 8.3 GW and a supply reserve ratio of 8.7%.Despite this surge in demand, the likelihood of immediate power supply issues remains low. The Korea Power Exchange forecasts this week's power demand to range between 92.9 and 96.7 GW, with reserves expected to be between 10.3 and 14.4 GW, indicating no anticipated disruptions in supply.However, the intensifying extreme weather events due to climate change are raising concerns. Heat waves increase cooling demand while reducing the cooling efficiency of power generation facilities, and droughts can further impact the availability of cooling water.The frequency and intensity of compound disasters, such as heavy rain and heat waves, are also on the rise. A study commissioned by Greenpeace and conducted by a research team led by Professor Kim Hyung-jun of KAIST analyzed summer weather patterns from 1991 to 2020 and the last four years (2021-2024). The median intensity index for compound disasters increased from 0.55 to 1.65, a threefold rise. The number of extreme compound disaster days, which fall within the top 1% historically, has increased from an average of 1.1 days to 5.2 days per year, a 4.8-fold increase.Professor Kim Hyung-jun stated, "Heat waves increase power demand while decreasing the cooling efficiency of power generation, and droughts affect the availability of cooling water. As climate change increases variability, it will also impact power supply stability."With the expansion of renewable energy, the importance of predicting weather variables is growing. Since solar and wind power generation varies with weather conditions, investments in power grids, ESS, and reserve resources are necessary to mitigate volatility. The Korea Power Exchange incorporates weather changes into hourly demand forecasts, but sudden changes, such as unexpected cloud cover, can lead to temporary forecasting errors.These 'climate adaptation costs' could further burden KEPCO's financial normalization efforts. Despite returning to profitability, KEPCO has struggled to improve its financial structure. As of the end of the first quarter, KEPCO's debt stood at 206 trillion won, with cumulative operating losses since 2021 reaching approximately 34 trillion won. According to financial information provider FnGuide, KEPCO's consensus operating profit for the second quarter, set to be announced on August 12, is projected to be 1.9642 trillion won, an 8% decrease from the same period last year. The company faces the challenge of addressing its accumulated financial burdens while simultaneously investing in new projects, such as expanding the power grid.Professor Park Jong-bae of Konkuk University’s Department of Electrical and Electronic Engineering noted, "If extreme heat becomes commonplace, power demand will increase, necessitating additional investments in power grids, generation facilities, and reserves. This implies higher investment and operational costs, which ultimately means consumers will bear the increased costs through higher electricity rates."* This article has been translated by AI. 2026-08-11 16:52:10
  • Heat Wave and Economic Pressures Continue to Burden Small Business Owners
    Heat Wave and Economic Pressures Continue to Burden Small Business Owners While exports and macroeconomic indicators have improved, small business owners continue to feel the strain of a challenging economy. Even with a recovery in consumer sentiment, high inflation, labor costs, and rent are preventing actual sales increases from translating into improved profitability. Experts predict that food prices will remain high in the second half of the year due to the impact of heat waves and extreme weather on agricultural production.According to the Small Business Market Promotion Agency, the Business Sentiment Index (BSI) for small businesses in June fell by 4.3 points to 63.6. A BSI above 100 indicates that many small business owners feel the economy is improving, while a score below 100 reflects a negative perception of economic conditions. Although macroeconomic recovery is underway, analysts suggest it will take considerable time for this trend to reach local markets and small businesses.Factors that could drive prices higher in the second half of the year include high exchange rates and extreme weather. If the won-dollar exchange rate remains elevated, the prices of imported food and raw materials are likely to rise. Sectors with a high proportion of raw materials, such as the restaurant and food industries, could see immediate cost increases due to rising exchange rates. Imported livestock products, including beef and pork, as well as coffee beans and various processed food ingredients, are particularly sensitive to exchange rate fluctuations.In 2022, the won-dollar exchange rate surged to around 1,400 won, contributing to rising prices for imported livestock and increasing cost pressures on the restaurant industry.Extreme weather also poses a risk. Both domestically and globally, heat waves, droughts, and heavy rainfall are affecting the production and supply of key agricultural products. Certain crops, such as coffee and cocoa, are particularly vulnerable to weather conditions, which can significantly impact yields. Staple crops like wheat and rice may also see price pressures if production declines.Higher temperatures can reduce livestock feed intake and growth rates, weaken immunity, and increase the likelihood of disease and mortality. A decline in productivity or a reduction in the number of animals raised can lead to decreased market supply, potentially driving up prices at the source.During the record heat wave in 2018, for instance, the price of broiler chickens at the source rose by 27% compared to the previous month due to increased mortality and growth delays, while pig mortality increased by 57.8% year-on-year. The price of eggs also rose by 115 won compared to the previous month due to a drop in laying rates. This indicates that heat waves can have far-reaching effects, impacting not only farm productivity but also grocery prices and cost burdens for restaurants.High interest rates are also a burden for small business owners. The Bank of Korea maintained its interest rate freeze in the first half of the year but raised the benchmark rate by 0.25 percentage points on July 16. There are concerns that further rate hikes may occur in the second half of the year, increasing financial costs for small business owners.Small businesses, which often rely heavily on loans, face significant changes in monthly financial costs based on interest rates. With already high fixed and variable costs for raw materials, labor, and rent, any increase in financial costs will reduce actual profits, even if sales remain stable. This is particularly critical for small businesses with volatile sales, as rising interest burdens could determine their ability to continue operations.Lee Eun-hee, an emeritus professor of consumer studies at Inha University, stated, "The price increases due to the heat wave are likely to extend beyond August, potentially affecting prices for two to three months or more. For small business owners who have relied on inexpensive imports, high exchange rates and poor local yields will be particularly damaging."* This article has been translated by AI. 2026-08-11 16:52:00
  • Extreme Heat Hits Small Businesses with Rising Costs
    Extreme Heat Hits Small Businesses with Rising Costs This year's extreme heat is significantly impacting small business owners. Rising ingredient prices, increased cooling costs, and higher delivery fees, combined with a decrease in foot traffic, are creating a challenging environment. If extreme heat continues to occur annually, the financial struggles for small businesses are expected to worsen. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on August 10, the retail price of cabbage reached 3,509 won per head, a 28% increase from the previous month, while cucumbers sold for 7,977 won for ten, marking a 38% rise. Prices for perilla leaves (50g) and lettuce (100g) also surged by 41% and 31%, respectively, reaching 987 won and 1,230 won. Watermelons increased by 11% to 22,189 won each over the past month. The extreme heat is cited as a primary cause of rising prices for agricultural and livestock products. The newly established heat wave warning system, which issues alerts when the perceived temperature exceeds 38 degrees Celsius, was first activated in Pohang and Gyeongsan on July 12 and was extended to all of Seoul on August 4, marking the first time such a warning was issued citywide. The number of tropical nights this year has also reached a record high of 14.2 days nationwide. As raw material prices soar due to the heat, the outlook for the restaurant industry has become increasingly bleak. A survey conducted by the Ministry of Agriculture, Food and Rural Affairs and aT shows that the food ingredient outlook index for the restaurant industry has risen from 123.86 in the first quarter to 130.22 in the third quarter. However, the third-quarter business outlook index stands at 84.08, significantly below the baseline of 100. The cumulative rise in prices has placed an even greater burden on small business owners than the indicators suggest. According to a report from the Korea Rural Economic Institute (KREI) on last year's restaurant management conditions, 41.4% of businesses reported significant difficulties due to rising ingredient costs. Monthly spending on ingredients has exceeded 4 million won and continues to rise each year. Hong, who operates a pork belly restaurant in Yangcheon District, Seoul, stated, "The price of a box of lettuce has more than doubled, but we can't remove side vegetables from the menu due to the price increase. With foot traffic down because of the heat, our operating profit has halved compared to last year." Cafes, which typically see a surge in business from June to August as consumers seek cool beverages, are not experiencing the expected seasonal benefits. Normally, this period would yield 2 to 3 times the usual profits, but rising ingredient costs and decreased foot traffic have left them with little to no profit. Additionally, the price of disposable plastic products, which surged after the Middle East conflict, has not decreased. Cooling costs are another significant challenge for small business owners, as the use of air conditioning and other cooling devices has increased due to the heat. Kim, who runs a cafe in Seo-gu, Incheon, reported, "Last month, our cooling costs alone exceeded 600,000 won for our small 10-pyeong cafe. When the heat wave warning is in effect, there are hardly any people on the street, but we can't stop cooling the cafe either, which puts us in a difficult position." The heat is also driving up delivery costs. In a system similar to ride-hailing, delivery costs increase as the heat intensifies. Small business owners report that delivery fees have risen by 10% to 20% compared to before the heat wave. Jin Hyun-jeong, an economics professor at Chung-Ang University, noted, "The restaurant industry's outlook is already poor, and the cost increases due to the heat have made the situation even more challenging. The drought accompanying the heat could also affect ingredient prices during the fall harvest, making the situation appear more serious than expected." Lee Jeong-hee, president of the Small Business Policy Association and a professor at Chung-Ang University, added, "When extreme heat occurs as it has this year, foot traffic decreases, leading to a contraction in domestic consumption. It seems likely that extreme heat will continue to recur annually, and the government needs to consider new policies to alleviate the burden of raw material costs on small business owners." 2026-08-11 16:52:00
  • Hanwha Increases Stake in KAI Amid Stock Fluctuations
    Hanwha Increases Stake in KAI Amid Stock Fluctuations Hanwha Group's acquisition of management rights in Korea Aerospace Industries (KAI) is becoming more tangible. Over the past month, Hanwha invested 500 billion won to increase its stake to over 15% as KAI's stock price experienced significant fluctuations.According to the Financial Supervisory Service's electronic disclosure system on August 11, Hanwha Systems purchased 3,363,353 shares of KAI from July 8 to August 10 for approximately 499.85 billion won, raising its stake from 1.53% to 4.98%. Prior to this, Hanwha Systems held 1,487,530 shares of KAI.This stock acquisition coincided with a substantial correction in KAI's stock price, benefiting Hanwha. On July 8, Hanwha Systems' board of directors decided to buy KAI shares up to a limit of 500 billion won by the end of the year. At that time, the board planned to secure 3,121,098 shares based on KAI's closing price of 160,200 won, raising its stake to 4.73%.During the actual purchase process, shares were acquired at lower prices. According to the disclosure, from July 27 to August 10, Hanwha Systems bought 1,217,053 shares of KAI at an average price of 147,543 won over seven business days. The total purchase amount was about 179.5 billion won. If the initial estimate of 160,200 won per share had been applied, approximately 194.9 billion won would have been needed, resulting in a savings of about 15.4 billion won due to the stock price decline.As a result, Hanwha Systems is estimated to have secured over 240,000 additional shares than initially expected, achieving a cost-saving effect of around 39 billion won during this period.A group official stated, "The purchase amount was predetermined, and we executed a large-scale acquisition based on price advantages during the process."With a 15.89% stake in KAI, Hanwha Group will now enter the corporate merger notification process. Currently, Hanwha Aerospace holds 9.90%, Hanwha Systems 4.98%, and Hanwha Aerospace USA 1.01%, making Hanwha the second-largest shareholder after the Korea Export-Import Bank.Under current fair trade laws, companies acquiring more than 15% of another listed company's shares must file for corporate merger notification. The notification process must begin within 30 days of surpassing the stake threshold.Industry analysts believe that the corporate merger review is likely to proceed relatively smoothly, as Hanwha and KAI operate in different areas within the aerospace and defense industry rather than directly competing in the same finished aircraft market. Hanwha focuses on aircraft engines and radar and avionics, while KAI specializes in the development and production of finished aircraft such as the KF-21 and FA-50.However, the corporate merger review does not immediately imply KAI's integration into Hanwha's group. This procedure follows Hanwha surpassing the 15% threshold for corporate merger notification as the second-largest shareholder. An industry source noted, "For KAI to become part of Hanwha, the company must secure the position of the largest shareholder and undergo another corporate merger review," adding, "As management rights participation becomes clearer, both companies need to consider how they can create synergies together."* This article has been translated by AI. 2026-08-11 16:48:10
  • Korea Development Bank Faces 58 Billion Won Financial Scandal Over Fraud Allegations
    Korea Development Bank Faces 58 Billion Won Financial Scandal Over Fraud Allegations The Korea Development Bank is facing a financial scandal involving fraud allegations related to corporate financing, amounting to approximately 58.3 billion won.On August 10, the bank announced that the incident was discovered during a police search and seizure process on July 22.The total amount involved is 58,347,799,000 won, which does not account for collateral value, meaning the final figure may change. The bank has deployed security services related to the collateral and plans to execute its rights once the reasons for the loss of benefits are confirmed.A bank official stated, "The loans in question are normal loans with no delinquencies from the client," adding, "The determination of fraud will be made based on the results of the ongoing investigation."* This article has been translated by AI. 2026-08-11 16:48:00
  • Cosmax Reports Record Q2 Revenue and Operating Profit; U.S. Subsidiary Turns Profitable
    Cosmax Reports Record Q2 Revenue and Operating Profit; U.S. Subsidiary Turns Profitable Cosmax, a leading cosmetics original design manufacturer (ODM), achieved record revenue and operating profit in the second quarter of this year. All subsidiaries in South Korea, China, the United States, and Southeast Asia experienced growth, with the U.S. subsidiary reporting its first-ever profit. On August 11, Cosmax announced that its consolidated revenue for Q2 reached 794.9 billion won, a 27% increase compared to the same period last year. Operating profit rose by 21% to 73.7 billion won, marking the highest figures for both revenue and operating profit in a single quarter. The operating profit margin stood at 9.3%. For the first half of the year, cumulative revenue totaled 1.4769 trillion won, up 22% from the same period last year, while operating profit increased by 13% to 126.8 billion won. The growth was primarily driven by the South Korean subsidiary, which reported Q2 revenue of 518.4 billion won, a 23% increase year-on-year, surpassing the 500 billion won mark for the first time in a quarter. Operating profit also grew by 13% to 56.4 billion won. The increase in orders was influenced by domestic indie brand clients expanding their sales regions beyond the U.S. to Europe. Steady demand for skincare products, along with improved profitability in sun care and gel masks, contributed to the profit growth. Direct exports to global and European clients also increased. Among overseas subsidiaries, the U.S. showed significant improvement. The U.S. subsidiary's Q2 revenue reached 53.8 billion won, a 79% increase from the previous year, and it successfully turned a profit for the first time since its establishment. In recent years, Cosmax has focused on reducing fixed costs and improving management efficiency in its U.S. operations while securing new clients, particularly among indie brands in the western region. In Q2, orders from new clients in the western region were reflected in sales, along with reorders from existing major clients. In Q2 of last year, the U.S. subsidiary's revenue was only 30 billion won, a 17% decline year-on-year. At that time, the company anticipated that revenue from new clients secured in the California western sales network would be reflected in the second half of the year, and the subsequent expansion of its client base has led to actual growth and profitability. China also showed signs of recovery. The revenue of the Chinese subsidiary reached 197.4 billion won, a 33% increase compared to the same period last year. The Shanghai subsidiary benefited from increased orders from local color cosmetics brands, with base makeup products like cushions and foundations, as well as blushers and lip products driving growth. The Guangzhou subsidiary also saw revenue growth, primarily through online and export channels. The Southeast Asian subsidiary also expanded its footprint. The Indonesian subsidiary reported revenue of 28.9 billion won, a 38% increase year-on-year. The recovery of existing clients in modern trade channels such as convenience stores and supermarkets, along with increased orders from new clients in general trade channels, contributed to this growth. Exports to neighboring countries like Malaysia, Singapore, and India also increased. The Thai subsidiary recorded an 8% increase in revenue to 24.9 billion won, driven by reorders of hit products from major clients. The company is also expanding its supply of new brands in its original brand manufacturing (OBM) business, which includes brand planning and development. A Cosmax representative stated, “In the second half of the year, we will further solidify our position as the global leader in cosmetics ODM, based on strong skincare demand, expanding global K-beauty demand, and the establishment of new clients.”* This article has been translated by AI. 2026-08-11 16:44:20
  • A Day in the Life at Samsungs P5 Semiconductor Plant in Pyeongtaek
    A Day in the Life at Samsung's P5 Semiconductor Plant in Pyeongtaek At 3:45 a.m., the Samsung Electronics semiconductor campus in Pyeongtaek is already brightly lit, despite the darkness of early morning.Workers, wearing safety helmets with their names and blood types, gathered in groups as they headed to the site ahead of their 5 a.m. shift. A makeshift snack stall and coffee stand at the entrance of P5 opened early, where workers filled up on kimbap and fish cakes while holding cups of coffee as they entered the site.Hwang, 60, who has been working here for six months, said, "Waking up early every day is still tough for me," adding that he walks to the site even in the heat.Park, in his 40s and working at P5 for about a year, noted, "Once you enter, you have to work for a long time, so I eat a hearty meal before coming in. Nowadays, I pay extra attention to my health due to the heat."Samsung Electronics is accelerating the construction of P5 in response to the growing demand for artificial intelligence (AI) memory, moving the operational target from 2030 to 2028 to secure next-generation memory production capacity sooner.AI semiconductors are evolving rapidly, with new generations emerging within a year. In contrast, semiconductor plants take years to build, install equipment, stabilize processes, and begin mass production. Waiting until demand is confirmed could mean missing the market opportunity.The early mornings at the P5 site reflect Samsung's efforts to catch up to the two-year timeline it has accelerated.360m Wafer Bridge Connecting P4 and P5One of the most noticeable structures at the site is a large overbridge under construction between P4 and P5.Measuring approximately 360 meters, this is not a pedestrian bridge but a dedicated passage for semiconductor wafers to move between P4 and P5 as needed during processing.A Samsung Electronics official explained, "The structure currently under construction is an overbridge connecting P4 and P5 for wafer transportation. It is not a pedestrian walkway and is a significant facility within the Pyeongtaek campus."The length is three times that of the approximately 120-meter overbridge installed at Samsung's Hwaseong campus.Semiconductor production involves a complex process where a single wafer undergoes numerous equipment and processing steps. Delays in moving wafers to the next equipment after completing a specific process can reduce production efficiency.Ultimately, how quickly and accurately wafers are moved to the necessary processes directly impacts the fab's productivity.Connecting P4 and P5 with the overbridge allows the two plants to operate not just separately but also to share wafers based on processing needs, functioning as a unified production system.The official added, "We are creating a pathway for wafers to move back and forth as needed based on the processes performed at P4 and P5."The entire Pyeongtaek campus spans approximately 2.89 million square meters, comparable to the size of Yeouido, and can accommodate six fabs, including P1 through P4 and FAB1 and FAB2 of P5.The history of the Pyeongtaek campus began over a decade ago.Samsung Electronics broke ground on its first Pyeongtaek plant in May 2015, based on an initial investment plan of 15.6 trillion won. As investments expanded, the total investment amount grew to about 30 trillion won.In July 2017, mass production of fourth-generation 64-layer V-NAND began, and in 2018, construction of a second production line commenced. By 2020, advanced DRAM production also started.Since then, Pyeongtaek has established itself as a key production hub for Samsung's semiconductor business.The scale of P5 is larger than previous investments in Pyeongtaek.According to government data, over 60 trillion won is expected to be invested in the construction of P5 across all phases. Samsung plans to utilize P5 as a core hub for next-generation memory production, including HBM.A Samsung C&T official overseeing the P5 construction stated, "P5 differs from past projects in terms of scale and complexity. It is not just about completing the building on time; ensuring safety while maintaining quality and productivity and responding quickly to changing circumstances is crucial."AI Accelerates 2028 Timeline: Competition for Fab Capacity Between Samsung and SK HynixThe constant movement of cranes and construction equipment in Pyeongtaek is reflected in domestic investment indicators.In the second quarter of this year, domestic facility investment increased by 13% compared to the same period last year, with machinery investment rising by 15%. In June alone, facility investment surged by 21.7%, and machinery investment by 22.2%, driven by increased spending on semiconductor manufacturing equipment.P5 exemplifies how AI is rapidly boosting domestic semiconductor investment.SK Hynix is also accelerating its production facility expansion.The first fab in the Yongin semiconductor cluster has surpassed 70% completion, while an additional investment of 35.2 trillion won is planned for the second Yongin fab, Y2, and 19.1 trillion won for the Cheongju M17 fab.The total investment for these two projects amounts to 54.3 trillion won, which is about 45% of SK Hynix's equity of 120.7 trillion won.The simultaneous large-scale investments by Samsung and SK Hynix stem from the time lag between the AI industry and semiconductor manufacturing.While AI accelerators can see new generations emerge within a year, building a semiconductor fab takes years from construction to equipment installation, process stabilization, and mass production.If production capacity is increased only after demand is confirmed, the companies risk missing the market response window.As a result, the competition between the two companies has expanded beyond simply developing better memory to securing production capacity ahead of future demand.An Ki-hyun, secretary general of the Korea Semiconductor Industry Association, stated, "Investing increases manufacturing facilities and production scale, which helps secure market leadership. If competitors invest while you do not, you will ultimately lose market dominance."However, he noted that P5 alone is unlikely to significantly alter the competitive landscape between Samsung and SK Hynix.Both companies are making large-scale investments, so the focus will shift from the size of the investment itself to how quickly the newly secured production capacity can be translated into products and revenue.AI Memory Demand Expands from HBM to DRAM and NANDAnother reason semiconductor companies are rushing to invest is the rapid expansion of AI-driven memory demand.The initial AI memory market grew around HBM, with SK Hynix taking the lead while Samsung Electronics is catching up with next-generation products like HBM4.Recently, AI demand has also spread to general-purpose DRAM and NAND flash.As Samsung, SK Hynix, and Micron increase their production share of HBM and high-value server products, the supply capacity for general-purpose DRAM is decreasing, while AI servers consume large amounts of DRAM, increasing supply pressure.Market research firm SigmaIntel projects that global semiconductor sales will reach approximately $1.59 trillion this year, with memory accounting for about 60%. DRAM sales are expected to increase by over 300%, NAND by about 250%, and the HBM market is projected to exceed $100 billion.Omdia has also raised its forecast for semiconductor market growth to 94.1%, predicting that bottlenecks in HBM, advanced packaging, and cutting-edge processes will continue until 2027.Counterpoint Research anticipates that the share of server sales in total memory revenue will rise from 37% last year to 56% this year.While there are differences in how various research firms define and aggregate the market, they all agree that AI demand is lifting not just HBM but also DRAM and NAND.In the second quarter, Samsung Electronics recorded a 39% market share in global DRAM sales, while SK Hynix's DRAM sales are estimated to have more than tripled compared to the same period last year.In this context, latecomers like China's CXMT and Taiwan's Nanya are also rapidly increasing production.As the existing memory trio of Samsung, SK Hynix, and Micron focus their production capacity on HBM and high-value server products, they are being challenged in the general-purpose memory market.AI has not eliminated the traditional cycles of the memory industry. If supply shortages lead to price increases, investments will rise, and increased production capacity will eventually lead to supply growth and price declines.However, in the AI era, the cost of waiting until demand is certain has become significantly higher.Thousands Working on P5: Heatwave as Major Variable This SummerAt the P5 construction site, thousands of workers are installing structures, electrical systems, and plumbing while organizing spaces around equipment.A female worker named Park, met on her way home, remarked, "There are so many people inside that I can't even count them all."Another worker added, "The site is extremely busy right now."A subcontractor employee, Kim, installing partitions around equipment, said, "We don't know if the surrounding equipment is for 2nm or 3nm processes, but we do know that the equipment is very expensive, so we are always told to be careful."He emphasized, "From our perspective, it's ultimately a construction site. It's important to do our job properly without damaging or interfering with the equipment."The site operates under a structure where Samsung Electronics manages the operations, and Samsung C&T oversees major construction projects, with first-tier contractors, subcontractors, and specialized construction companies performing their respective tasks.This multi-tiered structure also affects how workers are impacted when work is halted due to the heatwave.A site manager with long experience in Samsung's semiconductor business noted, "If you belong to a first-tier contractor like us, you can adjust the schedule if you miss a day's work. For subcontractor workers, missing a day can directly lead to a loss of income."This summer, one of the biggest variables at the P5 construction site is the heatwave.Samsung C&T has protocols to halt high-risk work when the perceived temperature reaches 35 degrees Celsius, and to prohibit outdoor work when it exceeds 38 degrees.While these measures are for safety, they mean that even if workers start early in the morning, there may be days when work must be stopped after just a few hours. This can lead to income loss for some workers who are paid based on daily wages.Heat-related illnesses have also been reported on site.One worker mentioned, "Just yesterday, five people collapsed due to heat-related issues, and ambulances were constantly coming and going."Experts explain that the heat felt by workers on the construction site can be much more intense than the temperatures reported by meteorological authorities.Choi Yong-sang, a professor of climate and energy systems engineering at Ewha Womans University, stated, "The temperatures reported by meteorological authorities are based on background air temperature measured under open and well-ventilated conditions, while the actual working environment can be much harsher."In summer, asphalt surface temperatures can exceed 60 degrees Celsius, and heated concrete structures and poorly ventilated spaces can increase workers' heat exposure. The combination of heavy work clothing, safety helmets, and crowded working conditions exacerbates heat stress.Professor Choi emphasized, "We cannot lower the external temperature itself; ultimately, we need to reduce workers' exposure and vulnerability to lower heat stress."To secure as much working time as possible while avoiding the heat, the start of the workday has been moved to early morning.The 360m overbridge for wafer transportation between P4 and P5 is gradually taking shape. Below it, cranes and construction vehicles are in motion, and thousands of workers are heading to their respective tasks.AI has accelerated not only the operational schedule for P5 but also the daily rhythm of the construction site.At 3:45 a.m. the next day, the lights at the P5 construction site will be on again. 2026-08-11 16:44:10
  • Hyundai and Kia Negotiations Stalled Amid Rising Strike Actions
    Hyundai and Kia Negotiations Stalled Amid Rising Strike Actions Hyundai Motor and Kia are struggling to reach an agreement on wage and collective bargaining negotiations. The Hyundai union is intensifying its strike actions in August, following similar actions in July, while the Kia union is also facing challenges in finding common ground with management. Observers suggest that this year's negotiations may not conclude before the Chuseok holiday, as Hyundai has failed to meet the heightened expectations of its employees, who have seen substantial bonuses from companies like Samsung Electronics and SK Hynix.On August 11, the Hyundai union held a central countermeasure committee meeting and decided to conduct additional strikes on August 12 and 13, each lasting four hours, and on August 14 and 18, each lasting six hours. This means the union will carry out a total of eight hours of partial strikes on August 12 and 13, followed by 12 hours on August 14 and 18. The next committee meeting is scheduled for August 18.The ongoing strikes are expected to exacerbate production disruptions at Hyundai. The union previously conducted a partial strike from July 13 to 15, followed by additional strikes on July 20 to 22 and July 29 to 31, resulting in a total of 60 hours of production loss and an estimated 42,510 vehicles affected.While the company has not disclosed the exact financial impact, it is estimated that the production disruptions could lead to losses of around 1.8 trillion won, considering Hyundai's hourly revenue loss is approximately 18.7 billion won. The reduction in employee wages due to the strikes is also increasing, with Hyundai estimating an average wage loss of about 1.92 million won for technical staff and a severance loss of 14.01 million won for employees with 30 years of service.The last proposal from management included a monthly base salary increase of 89,000 won, a performance bonus of 350% plus 10 million won, and the issuance of 15 shares. In contrast, the union is demanding a monthly base salary increase of 149,600 won, a performance bonus of 30% of last year's net profit, and an increase in bonuses to 800%. Additionally, the union is calling for the reinstatement of members who were dismissed for illegal activities during past union activities, an extension of the retirement age, and an increase in bonuses.The main points of contention between the two sides are the reinstatement of dismissed workers, the pre-agreement on the legalization of retirement age extension, and a 50% increase in bonuses. Hyundai maintains that these three demands are not negotiable, arguing that the status of dismissed workers has already been determined by court rulings and that individual companies cannot unilaterally decide on retirement age extensions before legal amendments.Kia is also resuming its negotiations today. The Kia union is demanding a monthly base salary increase of 149,600 won, a performance bonus of 30% of last year's operating profit, the implementation of a 4.5-day workweek, and an extension of the retirement age to 65. Kia and its union have conducted six main negotiations and nine practical discussions without reaching an agreement before the summer break. The Kia union has also secured the right to strike.Given the significant differences in positions between Hyundai and Kia, it is likely that this year's negotiations will extend beyond the Chuseok holiday. However, as negotiations drag on, the scale of production disruptions and financial losses is expected to grow, which could negatively impact next year's negotiations. Both sides seem to be aware of the need to avoid a worst-case scenario. Kia has concluded its negotiations without disputes for five consecutive years since 2021, and if it can reach an agreement this year without a strike, it may receive special bonuses in addition to performance bonuses, which could significantly influence the sentiments of union members. Therefore, Kia has delegated the authority to refuse overtime work to its branch leaders while keeping the possibility of negotiations open, even after securing the right to strike.A Hyundai union representative stated, "The unprecedented bonuses in the semiconductor industry have raised the expectations of workers across the entire industry, making it difficult for both sides to find common ground. Many employees feel a sense of relative deprivation, especially since last year the company achieved record results, but the rewards have been concentrated among executives, making it challenging for the union to easily accept the company's proposals."* This article has been translated by AI. 2026-08-11 16:44:00