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  • Rising Dependence on China Among South Korean Automakers
    Rising Dependence on China Among South Korean Automakers South Korean mid-sized automakers are increasingly dependent on China. The use of Chinese technology in new car development is growing, along with an expansion of capital influence. Concerns are being raised about the weakening of independent research and development capabilities.According to a report released on August 9 by the Financial Supervisory Service, Renault Korea's purchases of vehicles, parts, and technology from China's Geely Group amounted to 952.7 billion won last year, an 82% increase from the previous year. Most of this was spent on vehicles and parts, totaling 901.9 billion won. KGM is reported to have paid 84 million dollars (approximately 120 billion won) to China's Chery Group this year.The increase in transactions with Chinese companies is attributed to the growing use of platforms and parts in the new car development process. Renault Korea has applied Geely's modular vehicle platform (CMA) to its flagship crossover, the 'Philante,' following its use in the mid-size SUV 'Grand Koleos' released this year. KGM is also utilizing Chery's platform to develop the next-generation mid-size plug-in hybrid SUV 'SE10.'As the domestic market shrinks, automakers are reaching out to China. Last year, the combined domestic sales of Renault Korea, KGM, and GM Korea totaled 107,607 units, accounting for just 6.4% of the overall market. This is a significant decline from 304,309 units in 2015, representing a third of the market in a decade.With the automotive market shifting towards electrification and software-defined vehicles (SDVs), the investment burden for new car development has increased. For mid-sized automakers with relatively limited investment capacity, partnering with Chinese companies that have already secured electrification technology and large supply chains has become a practical option.Collaboration with Chinese firms is expanding beyond technology to include capital relationships. Geely acquired a 34.02% stake in Renault Korea in 2022, becoming its second-largest shareholder. Chery has also purchased 75 million dollars (approximately 110 billion won) in convertible bonds issued by KGM. If these bonds are fully converted into shares, Chery will hold a 16.22% stake in KGM, making it the second-largest shareholder.Industry experts express concern that if this collaborative structure becomes entrenched over the long term, it could weaken independent technological competitiveness. There are also worries that expanding influence as shareholders could reduce domestic production facilities to mere contract manufacturing bases for Chinese companies.Kim Pil-soo, a professor at Daelim University’s Future Mobility Department, cautioned, "Even if products are labeled 'Made in Korea,' there is a risk that the structure may effectively turn into a role as an agent for Chinese companies."* This article has been translated by AI. 2026-08-09 17:04:00
  • Sampro TV App Data Breach Includes Account and Card Information
    Sampro TV App Data Breach Includes Account and Card Information A data breach has occurred at the economic content platform Sampro TV, resulting in the exposure of user personal information.On August 9, the operating company, E-Broadcasting, announced that an external actor illegally accessed the Sampro TV application in early August 2026 and viewed some users' personal information without authorization. They clarified that the personal data of YouTube channel subscribers is unrelated to this incident.E-Broadcasting initiated an investigation immediately after confirming suspicious activity and blocked the access routes and IP addresses involved. They also implemented additional security measures and conducted diagnostics through an external security firm, reporting the incident to the Personal Information Protection Commission and the Korea Internet & Security Agency (KISA).The leaked personal information includes names, profiles, mobile phone numbers, emails, addresses, account information, records generated during service use, device information, credit card details, and service usage history. It has been determined that some members had their addresses, account information, and partially masked card numbers exposed.E-Broadcasting has individually notified members whose contact information they possess about the incident and posted related information on their website for members who could not be contacted individually.E-Broadcasting urged users to be particularly cautious of secondary damage from phone calls or text messages impersonating the company, advising them to delete and report any suspicious communications without opening links or attachments.* This article has been translated by AI. 2026-08-09 17:00:00
  • KOSPI Faces Dual Challenges of Low Trading Volume and Volatility
    KOSPI Faces Dual Challenges of Low Trading Volume and Volatility The South Korean stock market is grappling with extreme volatility and a significant drop in trading activity. Throughout August, the KOSPI has experienced a 'rollercoaster' pattern, with sharp declines and surges occurring almost daily. Investor sentiment has cooled dramatically, leading to average daily trading volumes and values hitting their lowest levels of the year. Both foreign and domestic investors have remained on the sidelines, failing to engage in active buying, which has left the market struggling to find momentum for a rebound.Market analysts cite several short-term factors for the recent fluctuations, including the liquidation of leveraged positions, the direction of interest rates from the U.S. Federal Reserve, and geopolitical risks stemming from the Middle East.However, when stripping away the temporary external pressures and supply-demand imbalances, the core issue lies in the 'poor stamina' of the South Korean economy. The stock market ultimately serves as the most honest 'barometer' reflecting the current state and future value of a nation's economy.The recent extreme instability in the stock market paradoxically highlights the limitations of South Korea's 'true stamina.' Looking back at the factors that have previously buoyed the Korean stock market, we see that short-term performance boosts from certain advanced semiconductor companies, excessive expectations regarding global monetary policy easing, and a reliance on leveraged investments have been the main pillars supporting the market.Performance driven by the external achievements of specific sectors or artificially created liquidity cannot be sustained over the long term. The market's susceptibility to external shocks, leading to abrupt index fluctuations and a mass exit of participants, suggests that the KOSPI's anticipated breakthrough past the 10,000-point mark may be based on an artificially created 'illusion' rather than solid fundamentals.For the market to achieve a meaningful and sustainable rebound, what is needed is not temporary stock market stimulus measures or short-term supply adjustments. The only condition that can restore confidence among long-term investors, including foreigners, is a fundamental assurance that 'the South Korean economy is on an upward trajectory based on solid fundamentals.'Without a belief that the overall asset value of the economy will continue to rise, any market stabilization measures will inevitably be temporary fixes. If the government reacts excessively to short-term market fluctuations, it will be difficult to build trust. Ultimately, it comes down to the basics. All efforts must be focused on transforming the economic structure.First and foremost, the industrial structure, which is overly concentrated in specific key sectors like semiconductors, must be diversified. There should be unreserved regulatory innovations and bold investment support to allow next-generation industries, which will serve as new growth engines, to thrive.Substantial and bold institutional reforms are also necessary to resolve the 'Korea discount.' This includes enhancing the transparency of corporate governance, actively encouraging shareholder returns, and meticulously crafting legal and institutional catalysts that can modernize the capital market through reforms in inheritance and gift tax systems. When companies voluntarily enhance their value and respect shareholder interests, the capital market can transform from a short-term speculative arena into a long-term asset-building platform.It is time to return to the basics and principles. A stock market that survives on artificial stimuli and short-term benefits ultimately leaves behind only the side effects of massive volatility. When the government demonstrates a clear growth vision and continuous structural reforms to prove a definitive upward trajectory for the South Korean economy, only then will our stock market possess the solid foundational strength to withstand external shocks.* This article has been translated by AI. 2026-08-09 16:36:00
  • Jang Eun-soo Claims First KLPGA Tour Victory After 10 Years
    Jang Eun-soo Claims First KLPGA Tour Victory After 10 Years Jang Eun-soo celebrated her first victory on the Korea Ladies Professional Golf Association (KLPGA) Tour after a decade since her debut.On August 9, at the Teddy Valley Golf & Resort in Seogwipo, Jeju Island, Jang shot a 3-under-par 69 in the final round of the KLPGA Tour Jeju Samdasoo Masters, finishing with three birdies and no bogeys.With a total score of 14-under 274, Jang edged out Kang Chae-yeon and Moon Jeong-min, who both finished at 13-under 275, by one stroke. This marks her first win after participating in 187 tournaments.Jang's victory earned her a prize of 180 million won, elevating her to ninth place in the season's prize money rankings and sixteenth in the Player of the Year points.A former national team player, Jang debuted on the KLPGA regular tour in 2017, winning the Rookie of the Year award that same year. However, she faced a prolonged slump, even losing her regular tour card at one point. She spent three seasons on the second-tier Dream Tour, experiencing relegation and promotion.Despite these challenges, Jang persevered. Last year, she ranked seventh in the Dream Tour prize money standings, successfully returning to the regular tour. This season, she has shown improved consistency, finishing as the runner-up at the Inka Financial The Heaven Masters in June, which helped her break a decade-long winless streak in Jeju.Starting the final round tied for second place, one stroke behind the leader, Jang ignited her title bid with a birdie on the par-3 third hole. She remained tied with Kang Chae-yeon until the fifteenth hole, where she made a birdie putt on the par-4 sixteenth to take the lead.Jang handled late pressure calmly. After her tee shot on the par-3 seventeenth hole went off the green, she executed a precise approach shot to save par from 1.2 meters. On the par-4 eighteenth hole, she faced a significant challenge when her tee shot landed in the right fairway bunker. However, she maintained her composure, recording a two-putt par to secure her victory.In a post-victory interview, Jang expressed gratitude, saying, "My caddy advised me to 'clear my mind,' which was a great help. I tried to relax, but it was difficult, so I decided to just play as I was. I want to thank my parents for always supporting me. Dad, I won!" as she shed tears.Meanwhile, rookie Kang Chae-yeon, who participated in the tournament as an alternate from the second-tier tour, finished tied for second with Moon Jeong-min at a total of 13-under 275.Kim Min-joo and Seo Eon-jin tied for fourth place with a total score of 12-under 276.* This article has been translated by AI. 2026-08-09 16:36:00
  • Tax Burden Disparities May Widen Despite Governments Tax Reform
    Tax Burden Disparities May Widen Despite Government's Tax Reform The government plans to eliminate the differential tax rates for the comprehensive real estate tax based on the number of homes owned, shifting the tax system to focus on property value. However, some experts warn that this reform could actually increase the tax burden gap between single-home and multi-home owners in certain price brackets.According to reports from Yonhap News and others, the current comprehensive real estate tax applies different rates based on the number of properties owned. As a result, multi-home owners may face higher tax rates than single-home owners, even with the same taxable base. The law aims to enhance tax equity for high-value property owners.The core of the government's proposed reform is to relax the criteria based on the number of homes and determine tax burdens primarily by property value. The intention is to reduce the tax burden disparity based solely on the number of properties owned, rather than applying a uniformly higher rate to multi-home owners.However, comparing actual tax amounts reveals that the effects of the reform are not straightforward. For instance, when comparing a non-resident single-home owner with a non-resident multi-home owner, the tax difference at a property value of 2 billion won is approximately 5.99 million won, and at a value of 8 billion won, it rises to about 25.86 million won. This is due to existing deductions and other institutional mechanisms that still favor single-home owners.Notably, the disparity in tax burdens between these two categories continues to widen as property values increase. The point at which the tax burden gap between a non-resident single-home owner and a non-resident multi-home owner decreases is around 13.4 billion won. This suggests that until this threshold is reached, the reform could actually exacerbate the tax burden difference between the two categories.The government's emphasis on reducing the preference for owning a single high-value property, known as 'one good property,' must also be viewed in light of these institutional factors. Simply removing the differential tax rates for multi-home owners may not effectively mitigate the trend of concentrating assets in high-value properties. In fact, determining tax burdens solely based on property value, regardless of the number of homes owned, could yield relatively favorable or unfavorable outcomes for high-value property owners.Differences based on residency status also play a significant role. A resident single-home owner and an investor with multiple homes may face different deductions and tax methods, even if the values of their properties are the same. Ultimately, to assess tax equity, it is essential to consider not only the tax rates based on the number of homes but also the deduction systems and residency requirements.Feedback received during the legislative notice process could also influence the outcome. Reports indicate that over 2,000 opinions have been submitted regarding the comprehensive real estate tax amendment. Calls for expanding exceptions for actual residents or not classifying temporarily absent homeowners due to childcare or family care as non-residents have been voiced. The extent to which the government incorporates these opinions could alter the final tax burden structure.A Ministry of Finance official stated, 'This comprehensive real estate tax reform aims to consider multiple factors, including residency status, number of homes, and property location, in the tax calculation process. While there may be some tax burden differences between a resident single-home owner and those with three or more homes, this is a result of designing the reform under the principles of establishing a resident-centered housing market, ensuring fair taxation, and enhancing tax equity.'* This article has been translated by AI. 2026-08-09 16:32:00
  • SK D&D Initiates Major Capital Increase to Secure Financial Stability
    SK D&D Initiates Major Capital Increase to Secure Financial Stability SK D&D has launched a large-scale capital increase to secure financial stability, just one year after its governance structure changed from a subsidiary of the SK Group to a private equity fund.According to a disclosure on August 9, SK D&D's board approved a shareholder allocation capital increase of 136.7 billion won on July 28. However, the Financial Supervisory Service has halted the process by requesting corrections to the securities registration statement.The funds raised will be used to repay 62 billion won in private bonds maturing in October and to address 75.3 billion won in contingent liabilities related to the Gunpo Triarts Knowledge Industry Center. The largest shareholder, Han & Company, has expressed its intention to subscribe to 100% of the allocated shares, with expectations of investing over 100 billion won directly.Financial indicators reveal significant burdens. Operating profit is projected to decline from 177.6 billion won in 2023 to 53.7 billion won in 2024 and 37.8 billion won in 2025, marking three consecutive years of decrease. In the first quarter of this year, the company recorded an operating loss of 9.3 billion won. Last year, cash flow from operating activities also turned into a net outflow of 265.2 billion won. Although the debt ratio decreased from 218.0% in 2023 to 174.2% in 2025 and 163.7% in the first quarter of this year, the deterioration in profitability and cash generation remains a concern.In the meantime, SK D&D has diversified its funding sources for development projects through REITs and institutional investor funds. It sold an 83.3% stake in the Seoul Forest Office PFV to Shinhan Asset Management through the jointly invested 'Shinhan RE Balancing Fund' at the end of last year, and completed the sale of the 'Xireune' mixed-use development at Gongdeok Station using the 'Shinhan PF Normalization Fund' co-invested with Shinhan Financial Group and the Korea Asset Management Corporation (KAMCO). The redevelopment project of the Namdaemun Samboo Building, 'Episode Namsan,' is also underway through the same fund.Efforts to liquidate assets are ongoing. Contracts have been signed for the sale of properties including the Myeongdong N Building, Chungmuro Office, land in Jinjeop, Icheon logistics center, Shinseadong office 'Canvas Lab,' and the Myeongdong Cheonghui Building hotel. The transition from planning to actual sale is a positive factor for liquidity.However, PF contingent liabilities remain a burden. Of the total required funds of 330.5 billion won for Gunpo Triarts, SK D&D's share is 75.3 billion won, which is a major use of the current capital increase. The maturity of the interim payment loan for buyers is scheduled for October 23. The Guro Think Factory has completed interim payment substitution, but there remains an unsold collateral loan of 165 billion won.The company stated, "With receivables and unsold inventory amounting to about 570 billion won, which exceeds the loan amount, we believe that cash recovery is possible through sales promotion measures." However, the time required for actual cash recovery remains a concern.This capital increase reflects the new largest shareholder's commitment to responsible management. Han & Company’s decision to participate in 100% of the allocated shares indicates a willingness to shoulder financial burdens even after separating from the SK Group.Conversely, there has been backlash from minority shareholders regarding the shift from a voluntary delisting and public buyout process to a large-scale capital increase. While the intention to provide financial support is positive, restoring trust among minority shareholders during the governance change remains a challenge.Korea Credit Rating Agency assessed that if the capital increase proceeds smoothly, it will improve short-term liquidity to address the repayment of private bonds and funding needs related to PF contingent liabilities in the second half of the year. SK D&D's current invested project equity amounts to approximately 366.2 billion won, primarily focused on key locations in Seoul such as Dangsan Station, Seongsu, and Seoul Station. 2026-08-09 16:24:00
  • National Tax Service Extends Tax Deadlines for Residents Affected by Heavy Rain in Andong and Uiseong
    National Tax Service Extends Tax Deadlines for Residents Affected by Heavy Rain in Andong and Uiseong In response to the heavy rain last month, which led to the designation of Andong and Uiseong in North Gyeongsang Province as special disaster areas, the National Tax Service (NTS) has announced tax relief measures for affected taxpayers.The NTS has set up a dedicated support window for flood-affected taxpayers at the Andong Tax Office and will provide tax relief specifically for residents in the Namseon, Iljik, and Imhae-myeon areas of Andong, as well as Danchon-myeon in Uiseong.Taxpayers residing in these areas can apply for extensions on the filing and payment deadlines for corporate tax, value-added tax, and comprehensive income tax, with extensions available for up to two years. Corporations can also defer the payment deadline for their interim corporate tax until the end of October, even if they do not apply by the 31st.If there are any outstanding tax debts, taxpayers can receive a two-year deferment on property seizures or the sale of seized assets, and the required tax guarantees for deadline extensions and deferments will be waived as much as possible.For farmers, fishers, and fruit growers who have received prior notice of a tax audit or are currently undergoing an audit, the NTS will postpone these audits. If any international refund amounts arise, they will be returned promptly, and businesses that have suffered losses of 20% or more on business assets will receive tax credits on their expected income tax or corporate tax in proportion to those losses.Taxpayers seeking tax relief can apply at the Andong Tax Office or through mail and the Home Tax system.An NTS official stated, "We will provide maximum tax relief within the legal framework to taxpayers facing significant difficulties due to management crises, even outside of special disaster areas."* This article has been translated by AI. 2026-08-09 16:16:00
  • Can KOSDAQ sustain its rally after stricter ETF rules?
    Can KOSDAQ sustain its rally after stricter ETF rules? SEOUL, August 9 (AJP) - South Korea's junior KOSDAQ market has regained momentum after stricter rules on single-stock leveraged and inverse exchange-traded funds (ETFs) took effect, as short-term capital that had been concentrated in such products linked to heavyweight stocks flowed into other areas of the market. According to the Korea Exchange on Sunday, the KOSDAQ rose 23.89 percent to 798.81 points last Friday from 644.78 about a week earlier, just before the rules took effect. The junior index gained for five consecutive sessions, with buy-side circuit breakers repeatedly triggered, signaling strong buying demand. Trading also picked up, with average daily transactions increasing 13.4 percent from 5.08 trillion won (about US$3.61 billion) in the final week of July to 5.76 trillion won in the first week of August. By contrast, trading volume in single-stock leveraged ETFs, which totaled 13.9 trillion won as of July 30, fell sharply to the 1 trillion won range under the stricter rules, which require higher minimum deposits along with other measures that reduce access. Market analysts said demand that had flowed into leveraged ETFs, driven by hopes of profiting from high volatility, shifted into other stocks, helping boost activity in the KOSDAQ market. KOSDAQ-linked ETFs also saw heavy trading last week, with KODEX KOSDAQ 150 Leverage, KODEX KOSDAQ 150 Futures Inverse and KODEX KOSDAQ 150 repeatedly ranking among the most-traded ETFs. Institutional investors were net buyers of KOSDAQ shares during the same period, purchasing 956.1 billion won, while retail investors also bought a net 120.5 billion won. Foreign investors, meanwhile, were net sellers, offloading 1.12 trillion won. As money that had sought quick gains through leveraged products linked to large-cap stocks moved into smaller companies, rallies broadened across KOSDAQ-listed firms, with many of the top gainers being small- and mid-cap stocks rather than the largest companies by market capitalization. "The heavy concentration in large-cap stocks that arose around single-stock leveraged ETFs has eased, while more cash has built up, creating more favorable conditions for money to flow into the KOSDAQ," said Kwon Beom-seok, an analyst at Samsung Securities. But it remains to be seen whether the KOSDAQ, which marked its 30th anniversary last month yet remained below 1,000 points, is headed for a recovery after years of doldrums. AJP Takeaways: - South Korea's KOSDAQ index rose 23.89 percent, from 644.78 to 798.81, between approximately July 31, 2026, and Aug. 7, 2026, following the implementation of stricter rules on single-stock leveraged and inverse exchange-traded funds (ETFs), with buy-side circuit breakers repeatedly triggered over five consecutive sessions of gains. - Average daily trading value on the KOSDAQ increased 13.4 percent, from 5.08 trillion won in the final week of July 2026 to 5.76 trillion won in the first week of August 2026, while trading volume in single-stock leveraged ETFs fell from 13.9 trillion won as of July 30, 2026, to the 1 trillion won range. - Institutional investors net-bought 956.1 billion won and retail investors net-bought 120.5 billion won in KOSDAQ shares during the week of Aug. 3–7, 2026, while foreign investors net-sold 1.12 trillion won. - Rally gains broadened beyond large-cap stocks, with many top-performing KOSDAQ-listed companies during the week being small- and mid-cap firms as capital that had concentrated in single-stock leveraged products shifted into other areas of the market. - The KOSDAQ market marked its 30th anniversary on July 1, 2026, but remained below the 1,000-point threshold as of Aug. 7, 2026, leaving its longer-term recovery trajectory uncertain. 2026-08-09 16:10:27
  • Pharmaceutical Companies Focus on Easier-to-Take Medications
    Pharmaceutical Companies Focus on Easier-to-Take Medications Pharmaceutical companies are accelerating improvements in medication formulations with a focus on convenience. As differentiating solely based on efficacy becomes challenging, companies are strategizing to enhance usability through smaller pill sizes and easier administration methods.According to the Food and Drug Safety Administration's '2025 Drug Approval Report' released on August 9, among the 248 submitted medications, the highest number was new formulation drugs (68), followed by new dosage forms (67) and drugs with altered dosages (37). Submitted medications are not new drugs but require safety and efficacy evaluations, including changes in administration routes, dosages, and formulations.This year, domestic pharmaceutical companies have been launching new products aimed at reducing the burden of medication. Chung Kun Dang has introduced 'Esoduo Mini,' a treatment for gastroesophageal reflux disease, which features a smaller size to ease swallowing for long-term patients. Given the frequent recurrence of this condition, the strategy is to reduce patient dropout rates through improved formulations.Daewon Pharmaceutical has also enhanced medication convenience with 'Uptaba Sustained Release Tablets,' changing the existing capsules to sustained-release tablets and modifying the active ingredients to allow for consumption regardless of meal times. The size of the tablets has been reduced by approximately 43%, making them the smallest among combination drugs with the same active ingredients.The emphasis on diversifying formulations is driven by the understanding that improved medication adherence can lead to expanded prescriptions and better product performance. In a market with an increasing number of drugs with the same active ingredients, convenience is emerging as a new differentiating factor.This trend is also evident in the over-the-counter (OTC) market. Particularly in pediatric medications, the choice of products varies based on age and administration methods, leading to active segmentation of formulations.Hanmi Pharmaceutical has developed a range of formulations, including suppositories, chewable tablets, and stick-type syrups, centered around the 'Suspens' and 'Maxibufen' series. They have expanded their product lines to enhance medication convenience based on symptoms, age, and administration environments. Dong-A Pharmaceutical is also strengthening medication convenience by introducing cold medications that can be taken without water and oral spray cold medications for infants and toddlers.Industry experts anticipate that efforts to improve formulations will continue. In an environment where the number of drugs with the same active ingredients is increasing, it is becoming difficult to differentiate based solely on efficacy. Factors such as pill size, frequency of administration, and the relationship with meals are likely to influence prescription choices and product selection.An industry insider stated, 'As the number of products with the same mechanism and efficacy increases, it has become challenging to expand the market with existing sales strategies. Ultimately, the criteria that will drive prescriptions from healthcare providers and choices from patients will be how easily and consistently they can take the medication.'* This article has been translated by AI. 2026-08-09 16:00:20
  • Korean Won Falls to 1400 Against Dollar: Will Strength Continue?
    Korean Won Falls to 1400 Against Dollar: Will Strength Continue? The won-dollar exchange rate has rapidly fallen to the 1400 won level, raising questions about whether the won will continue to strengthen. While the influx of dollars due to corporate tax payments could lead to further declines, experts predict a rebound if the supply of dollars is exhausted.According to the Seoul foreign exchange market on August 9, the exchange rate closed at 1409.5 won per dollar on the morning of August 8. During the day, it hit a low of 1407.3 won, marking the lowest level since October 2, 2022, when it was 1399.5 won.The exchange rate has seen a significant drop recently. After peaking at 1555.8 won on July 2, it has decreased by 139.7 won over 25 trading days, averaging a decline of 5.6 won per day. This rate of decline is more than double the average drop of 2.5 won per day recorded from April 9 to June 30, 2022.Factors contributing to the recent sharp decline in the exchange rate include improved dollar supply and coordinated market interventions by the U.S. and Japan. The influx of dollars related to SK Hynix's American Depositary Receipts (ADRs) and dollar sales by exporters have also alleviated supply pressures.Additionally, the completion of profit-taking and portfolio rebalancing by foreign investors in the domestic stock market has influenced the drop in the exchange rate. After recording the largest net sell-off in history in June due to profit-taking and rebalancing, foreign investors shifted to net buying in July.Unusual market cooperation between the U.S. and Japan has also been cited as a factor in the exchange rate decline. On July 31, the two countries' foreign exchange authorities jointly purchased yen to counter the yen's depreciation, marking the first such intervention since the Asian financial crisis in 1998. As a result, the yen-dollar exchange rate, which was nearing 164 yen, temporarily fell to the 155 yen range before rising to the 157 yen level as of August 8. The won also strengthened in line with the yen's appreciation.The dollar's recent weakness has further supported the decline in the exchange rate. Following the release of U.S. employment data on August 7, which fell significantly short of expectations, the Federal Reserve's outlook for interest rate hikes this year weakened. The dollar index, which measures the dollar's value against six major currencies, has dropped to 99.60.In this context, attention is focused on whether the won's strengthening trend will continue. With corporate tax prepayments scheduled for December, there are expectations that this will reduce downward pressure on the exchange rate. This year, particularly strong earnings from semiconductor companies like Samsung Electronics and SK Hynix are expected to lead to a significant increase in corporate tax prepayment amounts.Lee Jin-kyung, a researcher at Shinhan Investment Corp., stated, "As companies prepare for the corporate tax prepayment schedule at the end of August, the influx of foreign exchange will support downward pressure on the won-dollar rate. However, while the won may strengthen in line with the yen, monitoring for further interventions is necessary."Some analysts caution against viewing the recent won strength as a structural trend. Hanwha Investment & Securities noted that the limited supply factors from ADR conversions and exporter negotiations mean that once these supplies are exhausted, dollar availability will inevitably decrease. They also pointed out that while U.S.-Japan policy cooperation can control the speed of exchange rate increases and speculative positions, it cannot change the underlying fundamentals.Choi Kyu-ho, a researcher at Hanwha Investment & Securities, remarked, "The U.S.'s active currency intervention policy creates asymmetrical movements in the exchange rate rather than simply lowering it. In the short term, the likelihood of a rebound in the exchange rate is high as the dollar supply that led to the sharp drop in July weakens."* This article has been translated by AI. 2026-08-09 15:52:00