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Support for Promising SMEs Outside the Capital Region with Up to 100% Corporate Tax Reduction The Ministry of SMEs and Startups will provide corporate tax reductions of up to 100% to support promising small and medium-sized enterprises (SMEs) outside the capital region and will implement tax incentives to stimulate venture investments.On August 7, the ministry introduced key tax reform details for small and venture businesses as part of the recently announced '2026 Tax Reform Plan.' This reform aims to enhance the growth potential of startups and venture companies, support the sustainable growth of SMEs, and promote balanced development across the country.The ministry plans to strengthen support for promising SMEs by easing eligibility requirements for venture investments and making tax benefits permanent.To favor local startups, the ministry will increase tax reduction rates by further categorizing regions outside the capital. For jump-up SMEs and young industry SMEs, corporate tax reductions will be enhanced. Jump-up SMEs in non-capital regions can receive income and corporate tax reductions of up to 80%, while new industry SMEs in these areas can benefit from reductions of up to 100%.To promote venture investments, the eligibility period for tax benefits on capital gains from shares of venture investment companies will be extended from 7 years to 10 years.Additionally, for venture companies located in areas experiencing population decline, the tax credit rate for direct investments will be increased from 5% to 7%, and eligibility requirements for investment target companies will be relaxed to stimulate regional venture investments.To facilitate smooth business succession, a new tax benefit for third-party business succession will be established. This will reduce capital gains tax on the transfer of shares or business assets of the successor company by 20%, and income and corporate taxes for the successor company will be reduced by 10% for five years after the succession.To ensure that SMEs can continue to invest and create jobs after growth, a gradual reduction structure for tax support will be introduced. Special tax reductions for SMEs will apply at 50% of the medium-sized enterprise reduction rate for three years after the grace period ends, and companies in the film and webtoon content production sectors will also see a 12.5% tax deduction for three years after the grace period.For regional balanced development, the income tax reduction system for employees of SMEs, including youth, seniors, people with disabilities, and those with interrupted careers, will be amended to provide preferential treatment in terms of reduction periods and rates for employees of SMEs located in regional areas.On August 3, the government announced the '2026 Tax Reform Plan.' In response, the Korea Federation of SMEs issued a statement saying, "The increase in R&D and investment tax credit rates for SMEs outside the capital region and the permanent exemption of capital gains tax on shares of venture investment companies are expected to contribute to the innovative growth of SMEs."This tax reform will undergo legislative notice until mid-August and will be submitted for processing in the regular National Assembly session in early September.Yoon Yong-seok, the First Deputy Minister of the Ministry of SMEs and Startups, emphasized, "We will continue to work closely with relevant ministries to ensure that tax support leads to corporate investment, innovation, and job creation, striving to build a growth ladder for SMEs and ventures and realize an indispensable South Korea where everyone can grow together."* This article has been translated by AI. 2026-08-07 11:16:00
U.S. Intelligence Predicts Putin May Provoke NATO Within Years U.S. intelligence agencies have analyzed that Russian President Vladimir Putin may provoke NATO member countries in the coming years to test the alliance's collective defense capabilities, according to a report by the Wall Street Journal on August 6, citing sources.The report indicates that U.S. intelligence believes that while Putin had not previously considered provoking NATO member states amid the ongoing war in Ukraine, the situation has changed since early this year. With the war in Ukraine dragging on for four and a half years and increasing pressure on Putin to achieve a victory, there is a possibility he may engage in provocative actions against NATO members.U.S. intelligence has outlined potential scenarios, including cyberattacks against NATO countries, the occupation of territory by unmarked armed forces, and limited invasions of NATO's eastern regions, predicting that such events could occur between this fall and 2029. While the most extreme scenario of a limited invasion is considered unlikely due to its potential to trigger NATO's Article 5, the likelihood of cyberattacks and hybrid attacks combining military and non-military means is relatively high, as the activation of Article 5 in these cases remains uncertain.NATO's Article 5 stipulates that an armed attack against one member is considered an attack against all, prompting a collective response. In fact, the U.S. and Europe have noted an increase in Russia's probing actions against NATO, such as a missile launched by Russia towards Ukraine that reached Poland last month and a Russian drone that crashed into an apartment building in Romania in May. Additionally, Lithuania's Defense Minister Roberta Kumpis predicted in a local interview that Russia could use drones from Ukraine to provoke NATO countries in the Baltic region.Heather Conley, a senior fellow at the conservative American Enterprise Institute, stated, "How NATO responds to attacks that do not meet the threshold for Article 5 has always been a challenge for the alliance. Until now, NATO allies have preferred to avoid escalation." She cited Estonia's choice to manage a crisis bilaterally when Russia launched a cyberattack against it in 2007 as an example.Moreover, the report raises concerns as it comes amid news that the U.S. is facing shortages of key weapons, including missiles, due to the prolonged conflict in Iran. Observers suggest that the U.S. may struggle to respond effectively to hostile nations like China and Russia due to these missile shortages. Tom Karako, a senior fellow at the Center for Strategic and International Studies, emphasized that precision-strike missiles launched from the High Mobility Artillery Rocket System (HIMARS), Army Tactical Missile System (ATACMS), and Stinger missiles are crucial for repelling Russian military conflicts.Meanwhile, NATO spokesperson Martin O'Donnell stated, "We are always reviewing various scenarios and preparing for them. NATO is monitoring the situation and is ready to engage in deterrence and defense if necessary."* This article has been translated by AI. 2026-08-07 11:08:10
CEO of One Hundred Label Charged with $300 Million Fraud Cha Ga-won, the CEO of One Hundred Label, has been transferred to prosecutors while in custody on charges of fraud amounting to 300 billion won.The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency sent Cha to the Seoul Central District Prosecutors' Office on August 7, facing charges under the Act on the Aggravated Punishment of Specific Economic Crimes.Cha is accused of proposing a business utilizing the intellectual property (IP) of celebrities under One Hundred Label to Nomus, signing a contract, and receiving an advance payment of 24.2 billion won without fulfilling the actual business obligations.During the investigation, police determined that Cha concealed the fact that a prior contract with another company was still active while entering into a double contract with Nomus, and was unprepared to execute the business. They also found indications that Cha, already in significant debt, initiated the entertainment agency business and engaged in contract splitting to manage the debts.Police deemed it necessary to conduct a custodial investigation and applied for arrest warrants twice in June, but the prosecution returned them, requesting further investigation.Following consultations with the prosecution, police conducted additional investigations, including tracking Cha's accounts and analyzing contract relationships, which revealed evidence of contract splitting for debt repayment. They submitted a third arrest warrant application on July 22. The prosecution, having found sufficient evidence of Cha's wrongdoing, filed for the arrest warrant on July 28.The Seoul Central District Court held a warrant review for Cha on August 3 and issued the warrant, citing concerns over potential evidence destruction.* This article has been translated by AI. 2026-08-07 11:08:10
U.S. Intelligence Predicts Putin May Provoke NATO Within Years U.S. intelligence agencies have analyzed that Russian President Vladimir Putin may provoke NATO member countries in the coming years to test the alliance's collective defense capabilities, according to a report by the Wall Street Journal on August 6, citing sources.The report indicates that U.S. intelligence believes that while Putin had not previously considered provoking NATO member states amid the ongoing war in Ukraine, the situation has changed since early this year. As the war in Ukraine enters its fourth year with Russia still struggling, pressure is mounting on Putin to deliver a victory, which could lead to provocations against NATO members.U.S. intelligence has outlined potential scenarios, including cyberattacks against NATO countries, the occupation of territory by unmarked armed forces, and limited invasions of NATO's eastern regions, predicting that such events could occur between this fall and 2029. While the most extreme scenario of a limited invasion is considered unlikely due to its potential to trigger NATO's Article 5, the likelihood of cyberattacks and hybrid attacks combining military and non-military means is relatively high, as the activation of Article 5 in these cases remains uncertain.NATO's Article 5 stipulates that an armed attack against one member is considered an attack against all, prompting a collective response. In fact, the U.S. and Europe have noted an increase in Russia's probing actions against NATO, such as a missile launched at Ukraine that reached Poland last month and a Russian drone that crashed into an apartment building in Romania in May. Additionally, Lithuania's Defense Minister Arvydas Anušauskas predicted in a local interview that Russia could use drones from Ukraine to provoke NATO countries in the Baltic region.Heather Conley, a senior fellow at the conservative American Enterprise Institute, stated, "How NATO responds to attacks that do not meet the threshold for Article 5 has always been a challenge for the alliance. Until now, NATO allies have preferred to avoid escalation." She cited Estonia's choice to manage a crisis bilaterally when Russia launched a cyberattack against it in 2007 as an example.Moreover, the report comes amid concerns that the U.S. is facing shortages of key weapons, including missiles, due to the prolonged conflict in Ukraine. Observers warn that this shortage could diminish the U.S. response capabilities against hostile nations like China and Russia. Tom Karako, a senior fellow at the Center for Strategic and International Studies, emphasized that precision-strike missiles launched from the High Mobility Artillery Rocket System (HIMARS), Army Tactical Missile System (ATACMS), and Stinger missiles are crucial for repelling Russian military actions.Meanwhile, NATO spokesperson Martin O'Donnell stated, "We are always reviewing various scenarios and preparing for them. NATO is monitoring the situation and is ready to respond with deterrence and defense if necessary."* This article has been translated by AI. 2026-08-07 11:08:00
CJ ENM Reports First Quarterly Profit for Tving, Accelerates Growth in IP and Platform CJ ENM is set to embark on a significant recovery, leveraging its content intellectual property (IP) and platform competitiveness. Tving has achieved its first quarterly profit since its launch, marking a turning point for its advertising business and the diversification of its content and music IP, which could lead to improved long-term profitability.On August 7, CJ ENM announced its second-quarter results, reporting sales of 1.2033 trillion won and an operating profit of 33.4 billion won. The company plans to strengthen its IP competitiveness and accelerate growth in its digital platform.The standout achievement is Tving, the online video service (OTT), which recorded an operating profit of 6 billion won in the second quarter, successfully turning a profit for the first time since its establishment as a standalone entity in 2020. This success is attributed to the broadcasting of the Korea Baseball Organization (KBO) league and original content. Subscribers increased by 24.7% compared to the same period last year, with monthly active users (MAU) surpassing 9.7 million.A notable aspect is the advertising revenue, which increased by 52% during the same period, demonstrating growth potential. Choi Min-ha, a researcher at Samsung Securities, stated, "Tving's first quarterly profit confirms the potential for improved profitability and the securing of profit capacity. In the second half of the year, we plan to focus on expanding integrated advertising products that can offer combined proposals for broadcasting, digital, and outdoor advertising." He added that advertising revenue is expected to improve compared to the first half of the year.Lee Hyun-ji, a researcher at Eugene Investment & Securities, also projected that TV advertising revenue would improve by 30% in the second half compared to the first half. She assessed that the expansion of integrated advertising products covering broadcasting, digital, and outdoor advertising could lead to a return to net growth in TV advertising revenue in the second half.The monetization of content IP is also diversifying. A prime example is the original content "The Legend of the Cook Soldier." CJ ENM utilized artificial intelligence (AI) and virtual product placement (VPPL) technology during the production process to reduce costs. Additionally, the derivative IP "Mikak Boys" has been expanded into music, food and beverage (F&B), and award show performances.In the music sector, the company is recycling existing IP while also securing new IP. Through projects like "Produce 101 Japan: New World," "Koi Kids Planet C: Home Race," and "Modyssey," CJ ENM aims to attract new fan bases. Mnet Plus is also working to strengthen its global fandom base by expanding original content and digitizing fan clubs for Japanese artists.The securities industry views Tving's first profit as a sign that CJ ENM's investments in content IP and digital platforms are beginning to translate into revenue. With the recovery of the advertising market in the second half and the expansion of new IP, profitability is expected to continue improving.Hwang Seong-jin, a researcher at Heungkuk Life, remarked, "This is seen as a success in diversifying revenue sources through the reboot of past IPs. We will aim to expand our long-term revenue base through the enhancement of our IP portfolio." 2026-08-07 11:08:00
Park Hong-geun Emphasizes Importance of Proactive Cybersecurity Measures Park Hong-geun, the Minister of the Office for Government Policy Coordination, stated on August 7, "In the era of AI, it is more important than ever to have proactive security response capabilities as cyber threats become increasingly sophisticated and advanced."During his visit to the Korea Financial Information Service, Park assessed the operational stability of the Digital Budget Accounting System (dBrain) and the Integrated Management System for National Grants (eNaraDoum), while also reviewing personal data management and information security systems.This visit was aimed at preventing potential disruptions and personal data leaks in the financial information system, which is a core foundation for national financial operations. Park checked the management status of the Personal Data Protection Center and the Cyber Safety Center.He emphasized, "Since all processes of managing national finances, funded by taxpayers, are conducted through dBrain, its operational stability must never be compromised."Park also urged that, given dBrain's vast amount of personal data, even minor lapses in management could directly affect public trust, and therefore, efforts to strengthen the personal data protection system must be prioritized.He reviewed the progress of the 'Everyone's Finance' initiative, which is set to launch in December. This initiative aims to enhance the current 'Open Finance' by integrating financial information from central, local, and educational sources, and will include features such as an online financial museum and learning and AI functionalities.Park visited the 24-hour monitoring center of the Financial Information Service to hear from staff and urged them to approach their work with a sense of mission, as it underpins the management of national finances.The Office for Government Policy Coordination plans to ensure the stable operation of the Financial Information Service and continuously strengthen personal data protection and information security systems.* This article has been translated by AI. 2026-08-07 11:04:00
Deputy Prime Minister Gu Yoon-cheol Visits Vulnerable Residents in Changsin-dong Amid Heatwave Deputy Prime Minister and Minister of Economy and Finance Gu Yoon-cheol visited the goshiwon community in Changsin-dong, Jongno-gu, Seoul, to assess the living conditions of residents vulnerable to the heatwave.According to the Ministry of Economy and Finance on August 7, Gu visited the goshiwon on the morning of August 6 to check on residents' living environments and the response to the heatwave, as well as to encourage local officials.This visit was organized in light of the severe heatwave warning that has been issued, aimed at ensuring the health and living conditions of residents in the goshiwon, who are particularly susceptible to extreme heat.Gu first visited the 'Warmth Warehouse No. 4,' which provides essential goods and cooling supplies to goshiwon residents, to observe its usage. He then checked the operation of public air conditioning units and mist cooling devices known as 'Cooling Fog' installed in the goshiwon.He also visited the homes of elderly residents living alone nearby to assess their health and ensure they had access to cooling facilities. Gu urged residents to actively use public air conditioning and cooling centers during the ongoing heatwave.Additionally, he visited the goshiwon counseling center to review the operation of cooling centers and bathing facilities, while also encouraging local officials responsible for checking on residents and managing public facilities.Gu stated, "While summer is hot for everyone, it is particularly harsh for vulnerable groups like goshiwon residents. The government will continue to provide support and attention to ensure that those at risk from the heat can safely get through this extreme weather period."* This article has been translated by AI. 2026-08-07 11:04:00
KAIST develops AI chip with tunable response speed SEOUL, August 07 (AJP) - KAIST researchers have built a semiconductor that can be set to react quickly or slowly, matching the pace of whatever information reaches it, and that keeps the setting after the power goes off. Arranged in a grid of 256, the devices predicted the course of a mathematical pattern used in the field as a difficulty test about four times more accurately than an identical grid with every device fixed at a single speed. Nature Communications published the work on July 4. Choi Shin-hyun, a chair professor in KAIST's School of Electrical Engineering and its Graduate School of Semiconductor Technology, led the team. He said the design lets a chip respond "in the way best suited to the rate at which data changes," and that he expects it to lift performance and cut power draw in self-driving cars, robots and wearable devices. Information does not arrive at one speed. A heartbeat shifts in thousandths of a second. Heat building inside a factory motor drifts over hours. Both are readings taken across time, and both land on a chip that has to make sense of them. Any chip reading that kind of stream carries two habits set at the factory. One is how fast it reacts when a new signal arrives. The other is how long it holds that signal before the trace fades. Fixed habits work when everything arrives at one rate. When fast and slow readings come in together, they do not. A chip that lets go too quickly loses the slow pattern. A chip that holds on too long smears the fast one. The KAIST device adds a control. Beneath the layer that handles the incoming signal sits a second layer holding electric charge. Adding charge there makes the device forget faster. Taking charge away makes it hold on longer. Once set, that level stays without any current to maintain it. Keeping a chip in a chosen state normally costs a steady trickle of power. The team moved the forgetting time between roughly 0.7 and 3.8 thousandths of a second, a span of about five times over. The range of signal speeds the device could follow ran from 182 to 1,912 cycles per second. It registered pulses as brief as 50 billionths of a second. The gain comes from mixing settings across many devices. On the 256-device grid, some fast and some slow, one chip follows quick and slow signals at once without software separating them out first. KAIST ran that grid on the Lorenz system, a pattern whose path is notoriously hard to forecast, and recorded the fourfold improvement. KAIST's announcement leads with a larger figure, a 40-fold cut in prediction error. That result came from a simpler test on an artificial signal, and it measures the device against itself with the control frozen. No artificial intelligence chip now on the market took part in the comparison. The university also said the grid matched software at the same task while drawing far less energy. It gave no number for the saving and named nothing to measure it against. The materials are ordinary ones. A five-nanometer layer of indium gallium zinc oxide does the processing. The control layer stacks silicon dioxide, hafnium oxide and silicon dioxide. KAIST said the combination works with the fabrication process behind most chips now in production, which matters for whether the design could ever be made in quantity. What exists so far is a laboratory component, 256 cells on a grid. The self-driving cars, the robots and the wearables are what Choi expects. None of them were tested. Kim Dae-won, a doctoral candidate at KAIST, is first author. Two researchers from Samsung Electronics' semiconductor research center are co-authors, one of them a company Fellow. KAIST did not say what Samsung contributed to the work, and did not name a funding source. (Reference Information) Journal/Source: Nature Communications Title: Programmable memtransistor array with temporal dynamics modulation for efficient time-series data processing Link/DOI: https://bit.ly/4gkOvzB ---- AJP Takeaways ● Choi Shin-hyun's KAIST team built a semiconductor whose reaction speed can be set to match how fast incoming information changes, moving its forgetting time between roughly 0.7 and 3.8 thousandths of a second and holding that setting with no power. ● Samsung Electronics has two researchers on the paper, one of them a company Fellow. KAIST did not say what the company contributed or name any funding source, and neither point appears in the university's announcement. ● A grid of 256 devices forecasts the Lorenz system about four times more accurately than the same grid fixed at one speed. The 40-fold figure KAIST leads with comes from a simpler test on an artificial signal and measures the device against itself, not against any AI chip on the market. ● Nature Communications published the work on July 4. 2026-08-07 11:02:15
Kim Se-hoon of Hwacheon County to Address Key Issues with Central Government Hwacheon County in Gangwon Province is set to approach central government ministries to address key local issues, including the construction of Hwacheon Station on the East-West High-Speed Railway and improvements to National Route 56. According to Hwacheon County, County Head Kim Se-hoon will visit the Ministry of the Interior and Safety, the Ministry of Culture, Sports and Tourism, the Ministry of Land, Infrastructure and Transport, and the Korea Forest Service, among others, from August 10 to 11, accompanied by the head of the Planning and Inspection Office and relevant department heads. During this visit, the county plans to explain the necessity of 12 projects to seven ministries and request the inclusion of these initiatives in the government budget and related plans. Key issues include the construction of Hwacheon Station on the East-West High-Speed Railway, the construction of the Hwacheon Sain to Chuncheon Sabuk road, the installation of a bridge between Georye and Woncheon-ri, the establishment of a support center for returning veterans, and the reconstruction of the Andong Bridge. The county will also discuss extending support for the Sancheoneo Festival as a global event, as well as projects related to forest resources, such as attracting the proposed Hwacheon Mohyeon National Natural Recreation Forest, the installation of a joint military-civilian water supply system, and the use of idle military land. Among these, the county will emphasize to the Ministry of Land, Infrastructure and Transport the need for improvements, such as bridge construction, to minimize disruptions and inconveniences for residents caused by the railway construction around Hwacheon Station. Hwacheon County has been in discussions with the Korea National Railway Corporation regarding the issues of bridge construction and additional cost burdens. On June 30, the county conveyed its position to the corporation. According to the county, County Head Kim raised concerns about the proposal for Hwacheon County to bear all additional costs associated with bridge construction. He argued that it is necessary to reconsider whether it is appropriate for local governments to shoulder all costs related to inconveniences caused by national railway projects and future limitations on regional development. During the visit to the Ministry of Land, Infrastructure and Transport, the county will demand solutions to ensure that residents can access agricultural land and that the area is not severed during future station area development. For the section of National Route 56 from Sain to Chuncheon Sabuk, the county will advocate for road improvements to create a safer traffic environment by addressing curves and hazardous areas. At the Ministry of the Interior and Safety, the county will explain the need for the installation of a bridge between Georye and Woncheon-ri, the establishment of a support center for returning veterans, and request the inclusion of development plans for border areas. At the Ministry of Culture, Sports and Tourism, the county will request an extension of support for the Sancheoneo Festival, which is set to conclude this year, and at the Korea Forest Service, it will propose projects utilizing forest resources, including attracting the national recreation forest. With the Ministry of National Defense, the county will discuss the joint military-civilian water supply installation project and the use of idle military land. The county is also considering ways to utilize idle military facilities and land resulting from troop relocations and disbandments to boost local income and stimulate the regional economy. Among the proposed projects, some require ongoing discussions to ensure alignment with government policies and medium- to long-term development plans. Hwacheon County aims to explain the conditions of border areas and the necessity of each project to central government ministries while continuing discussions to secure government budget allocations, improve systems, and address residents' requests.* This article has been translated by AI. 2026-08-07 10:56:00
Gwangju City Enhances Safety Management for Eco-Friendly Rice Amid Pest Control Season Gwangju City is intensifying on-site management to ensure the safety of eco-friendly rice as the peak season for pest control approaches.Due to the hot and humid weather leading to increased pest occurrences and control efforts, Gwangju City announced that it will conduct joint inspections of eco-friendly rice complexes throughout August in collaboration with local governments and the National Agricultural Products Quality Management Service.The inspections will focus on preventing the use of synthetic pesticides and the mixing of non-eco-friendly materials during the joint pest control process, as well as ensuring compliance with eco-friendly agricultural product certification standards.August and September are critical months for rice pest control, requiring heightened attention to the safety management of eco-friendly agricultural products.In response, Gwangju City will systematically manage the pest control process, centering on the 'pre-notification for joint pest control' system.Those conducting joint pest control must submit a notification form to the relevant local government at least seven days before the scheduled pest control date, detailing the date, materials to be used, and public notice numbers. After the pest control is completed, a confirmation form must be submitted, including the actual date of control, materials used, and quantities.On-site management will also be strengthened. Representatives of eco-friendly agricultural complexes will directly participate in the pest control process to verify that the materials used are organic and to check for any prohibited substances, such as synthetic pesticides.Materials that are difficult to verify for public notice numbers or active ingredients, as well as those delivered in opened conditions, will be prohibited from use.Even if farmers do not use pesticides directly, there is a risk of unintended contamination from pesticides applied on nearby conventional farms or from improper cleaning of pest control equipment. Therefore, preventive measures will also be implemented.Buffer zones will be established, and barriers and warning signs will be installed. Additionally, when pest control is conducted on adjacent conventional farmland, representatives from eco-friendly agricultural complexes will be present on-site to oversee the process.To enhance safety management, pre-education has also been conducted. On July 30, Gwangju City held a training session at the Agricultural Technology Center for over 100 representatives from complexes and pest control companies, covering safety management guidelines from the purchase to the transportation, storage, and application of eco-friendly agricultural materials, as well as the operation of the pre-notification system for joint pest control.Kim Young-seok, head of the Eco-Friendly Agriculture Division in Gwangju City, emphasized the importance of thorough management from the pest control stage to maintain consumer trust in eco-friendly agricultural products.He urged, “Representatives of complexes and pest control companies must strictly adhere to the pre-notification system and eco-friendly certification standards, and focus on on-site management to ensure the production of safe eco-friendly agricultural products through pre-monitoring and damage prevention.”* This article has been translated by AI. 2026-08-07 10:56:00