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  • Debate Over Local Education Funding Amid Projected 500 Trillion Won Tax Revenue
    Debate Over Local Education Funding Amid Projected 500 Trillion Won Tax Revenue With projections indicating that next year's national tax revenue could exceed 500 trillion won, the method for calculating local education funding has emerged as a key variable in the upcoming budget. If the current system, which ties funding to domestic tax revenue, remains in place, allocations could approach 100 trillion won. However, applying a formula under government review could reduce this figure to around 81 trillion won, resulting in a difference of approximately 20 trillion won depending on how the same tax revenue is distributed.During a meeting of the Emergency Economic Headquarters and the Economic and Structural Innovation Ministers on August 6, the government announced plans to enhance fiscal responsiveness through the establishment of a Future Response Fund, restructuring education funding, and adjusting expenditures. The proposed reform of education funding is seen as a structural innovation aimed at utilizing additional tax revenue and securing investment capacity for future sectors.In the first half of this year, national tax revenue reached 223 trillion won, an increase of 33 trillion won compared to the same period last year. With improved corporate performance from semiconductor giants like Samsung Electronics and SK Hynix contributing to higher corporate taxes, the prospect of reaching 500 trillion won in national tax revenue next year appears increasingly likely.The current local education funding system automatically allocates 20.79% of domestic tax revenue and a portion of education taxes to regional education offices. Assuming next year's national tax revenue reaches 500 trillion won and domestic tax accounts for 88%, the domestic tax-linked portion alone would amount to 91.5 trillion won. Including education taxes, the total funding is expected to approach 100 trillion won.The Ministry of Planning and Finance has proposed to the Ministry of Education a plan to abolish the domestic tax linkage and instead reflect 40% of the average growth rate of the last three years and the average change rate of the school-age population in the previous year's funding. If this formula is applied to this year's supplementary budget, which set the funding at 76.4 trillion won, next year's estimate would be around 81 trillion won.On August 5, Hong Gun Park, Minister of Planning and Finance, stated on SBS's 'Joo Young-jin's News Briefing' that, "As the size of domestic tax revenue has increased, we are in the process of breaking the structural linkage of 20.79% and developing a new proposal. We are currently consulting with the Ministry of Education, and once the government reaches a consensus, we plan to present this in the form of a bill for parliamentary review."The government maintains that it will not reduce funding for primary and secondary education even after the reform. The plan is to change the structure that automatically transfers funds exceeding the long-term growth trend to education offices during a tax revenue boom and to redistribute excess funds to the Future Response Fund and for higher, lifelong, and early childhood education.Minister Park assured, "We will guarantee local education funding close to the long-term trend line, and any excess will be invested in balanced development for higher, lifelong, and early childhood education."Concerns over the inefficient financial management of education offices have fueled discussions on the reform. The Board of Audit and Inspection noted in a 2023 audit that from 2018 to 2022, regional education offices spent approximately 3.5 trillion won on cash and welfare support projects, raising the possibility that additional funding could flow into projects unrelated to educational needs.For instance, the Gyeonggi Provincial Office of Education distributed 166.4 billion won in recovery support funds to all students in 2021, regardless of income level, while the North Gyeongsang Provincial Office of Education was found to have provided laptops worth 4.6 billion won to about 3,700 non-teaching administrative staff and educational support personnel in 2021-2022.In the education sector, there are counterarguments that fixed costs for school operations and facility maintenance do not decrease even as student numbers decline, and that new financial demands for AI education and special care programs are increasing. There are also concerns that abolishing the domestic tax linkage could undermine the stability and predictability of education funding.The specific calculation method and implementation timeline for the education funding reform are expected to be outlined in the government's budget proposal for next year, which will be released at the end of this month. The reform plan was initially set to be unveiled at the National Fiscal Strategy Meeting on July 13, but the announcement was postponed due to a lack of consensus between the Ministry of Planning and Finance and the Ministry of Education. Since the reform requires amendments to the Local Education Funding Act, the final calculation method will be determined during the parliamentary review process.* This article has been translated by AI. 2026-08-06 18:48:20
  • Court Recess Ends, Major Trials in Special Investigations to Resume Next Week
    Court Recess Ends, Major Trials in Special Investigations to Resume Next Week As the summer recess for courts across the country comes to an end next week, trials related to various allegations surrounding former President Yoon Suk Yeol and the martial law incident, as well as the death of Corporal Chae, will resume.According to legal sources on August 6, most courts, including the Seoul Central District Court, the largest in the country, have been on recess for two weeks from July 27 to August 7, while the Seoul High Court will remain in recess until August 14.Starting August 10, most courts will resume hearings, with the first appeal trial for former Defense Minister Kim Yong-hyun set to begin on August 11 as part of the insurrection special investigation team led by Special Prosecutor Cho Eun-seok.Kim was sentenced to prison in the first trial for allegedly deceiving the Presidential Security Service to obtain a secret phone and passing it to former Army Intelligence Command Chief Noh Sang-won. On the same day, a preparatory hearing for his additional charges of leaking the list of intelligence agents will also take place.On August 19, the appeal ruling for Jo Tae-yong, former head of the National Intelligence Service, who was sentenced to prison for perjury in the National Assembly and Constitutional Court after the declaration of martial law, will be announced. The following day, the appeal trials for Park Jong-jun and other security service officials, who obstructed the arrest attempt of former President Yoon, will commence. On August 24, the appeal ruling for Kang Yi-gu, former chief of the Presidential Office's secretariat, who is accused of involvement in drafting the post-martial law declaration, will also be delivered.Between late August and September, first-instance rulings will be issued for military leaders who mobilized troops during the martial law. On August 27, a ruling will be announced for seven military officials, including Kim Hyun-tae, former commander of the 707th Special Mission Battalion, who were involved in blocking the National Assembly and the National Election Commission and operating a politician arrest team.On September 21, first-instance rulings will be delivered for former Army Counterintelligence Command Chief Yeo In-hyung and former Capital Defense Command Chief Lee Jin-woo, along with first-instance rulings for Yoon Jae-soon, former chief of staff, and Lim Jong-deok, a member of the National Assembly, who are charged with corruption in personnel appointments at the National Security Office.Meanwhile, the appeal cases for former Prime Minister Han Duck-soo and former Minister of the Interior and Safety Lee Sang-min, who are accused of serious insurrection-related offenses, are currently pending before the Supreme Court.The Kim Geon-hee special investigation team, led by Special Prosecutor Min Jung-ki, is set to focus on the appeal trials of former President Yoon and his wife. The first appeal hearing for Yoon, who was sentenced to two years in prison for receiving free opinion polls from political broker Myung Tae-kyun, will take place on August 21. On the same day, the appeal trial for Seoul Mayor Oh Se-hoon, who is also implicated in the case, will begin in the Seoul High Court.The first appeal hearing for Kim Geon-hee, who was sentenced to seven years in prison for the so-called 'money-for-appointments' scandal, is scheduled for August 26. The court plans to expedite the process with a ruling expected on September 22. Additionally, the first-instance ruling for Han Hak-ja, the leader of the Unification Church, who is at the center of allegations of collusion with the church, is set for August 31.However, the cases involving Kim Geon-hee related to Deutsche Motors stock manipulation, Myung Tae-kyun's opinion polls, and Unification Church bribery allegations have been postponed and are now under review by the Supreme Court.In the case of the special investigation team regarding the death of Corporal Chae, the appeal ruling for Im Seong-geun, former commander of the Marine Corps' 1st Division, will be announced on August 7. Im was sentenced to three years in prison in the first trial for causing Chae's death due to excessive search orders. The first-instance ruling for the so-called 'Run Jong-seop' case, where former Defense Minister Lee Jong-seop, a key suspect, was appointed as ambassador to Australia, will be delivered on September 11.Lastly, investigations into remaining allegations by the second special investigation team, led by Special Prosecutor Kwon Chang-young, have just begun. The second trial for Kim Dae-ki, former chief of staff, and former Minister Lee Sang-min, who are accused of favoritism in the relocation of the presidential residence, will take place on September 12, while the first formal hearing for Kim Myung-soo, former chairman of the Joint Chiefs of Staff, who is accused of participating in insurrection, is scheduled for September 1.The first preparatory hearing for Kim Tae-hyo, former first deputy director of the National Security Office, who is implicated in allegations of justifying martial law through diplomatic messages, is set for August 26.* This article has been translated by AI. 2026-08-06 18:48:20
  • Heat-Related Illnesses Surge as Deaths Occur Amid Extreme Heat
    Heat-Related Illnesses Surge as Deaths Occur Amid Extreme Heat As the start of autumn approaches, extreme heat has led to a surge in heat-related illnesses across the country, with over 200 cases reported for three consecutive days.According to Yonhap News and the Korea Disease Control and Prevention Agency, a total of 208 heat-related patients visited emergency rooms nationwide on August 5. Among them was a man in his 70s from Gimje, North Jeolla Province, who reportedly suffered from a heat-related illness while on the street.Heat-related illnesses had initially been reported in the hundreds on August 1 and 2, but the numbers have remained above 200 for the past three days.Since the heat illness monitoring system was activated on May 15, the total number of reported cases has reached 2,665, with 23 fatalities recorded.While the total number of heat-related illnesses this year is lower than the 3,300 cases reported during the same period last year, the number of cases on August 5 was 3.4 times higher than the 62 cases reported on the same day last year.The estimated cumulative deaths from heat-related illnesses this year have surpassed last year's total by two, with 23 deaths compared to 21 in 2022.Regionally, the highest daily counts this year were reported on August 5, with 70 cases in Gyeonggi Province and 49 in Seoul. The total number of patients in Seoul has reached around 300, while Gyeonggi Province has reported approximately 600 cases.This summer, 77.5% of heat-related patients have been male, and 33.8% were seniors aged 65 and older.In terms of specific illnesses, heat exhaustion accounted for 62.3% of cases, followed by heat stroke at 16.9%, heat cramps at 11.1%, and heat syncope at 8.4%.Most heat-related illnesses occurred outdoors (77.4%), with workplaces being the most common location at 25.7%.The Korea Disease Control and Prevention Agency advises, "Even if you do not feel thirsty, it is important to drink water regularly. Avoid alcohol and caffeinated beverages that can lead to dehydration."* This article has been translated by AI. 2026-08-06 18:48:20
  • Ruling Party Warns of Overheated Primary Campaigns
    Ruling Party Warns of Overheated Primary Campaigns The Democratic Party's Central Election Management Committee warned on August 6 that "serious overheating is occurring during the primary process," pledging to take firm action against activities that disrupt electoral order and tarnish the party's reputation.In a statement issued by So Byeong-hoon, the chair of the committee, the party noted that the joint speeches held over the weekend in the Chungcheong region and Busan, Ulsan, and Gyeongnam (Busan-Ulsan-Gyeongnam) have led to significant overheating during the primary process.The committee specifically highlighted the chaos inside and outside the speech venues and the risk of clashes among supporters of specific candidates, stating, "These are very dangerous actions that could cause division within the party and damage its image. The party's festival of electing new leadership should not become a nuisance to the public and local residents."Furthermore, the committee announced plans to strictly sanction illegal election activities and interference to ensure fair management of the ongoing primaries. It emphasized that if unauthorized campaign activities or interference occur, immediate action will be taken after verifying the facts. It urged individuals to report such incidents to the election fraud reporting center in accordance with procedures.The committee defined election interference and illegal campaigning as clear violations, stating, "Any identified issues will be met with severe accountability, even after the convention concludes. We ask that you compete fiercely while maintaining the dignity of the Democratic Party by respecting one another."* This article has been translated by AI. 2026-08-06 18:48:10
  • President Lee Calls for Full Mobilization Amid Extreme Heat and Drought
    President Lee Calls for Full Mobilization Amid Extreme Heat and Drought President Lee Jae-myung directed government and local authorities to mobilize all available personnel and resources in response to the ongoing extreme heat and drought affecting southern regions. "The heatwave we used to see in foreign reports has become our reality," he stated during a meeting on heatwave and drought response at the Central Disaster and Safety Countermeasure Headquarters in Seoul.President Lee noted that temperatures in Yangsan, South Gyeongsang Province, have exceeded 40 degrees Celsius for several consecutive days. He emphasized the likelihood of continued extreme heat and urged the government to activate a comprehensive response system until conditions improve."The most important task for the government is to protect the lives and safety of the people," he said, calling on all ministries and local governments to do their utmost to minimize heat-related damage.He specifically instructed officials to enhance protective measures for vulnerable groups, including the elderly living alone and residents of small rooms. He stressed the need for direct outreach to check on those who may have difficulty accessing cooling facilities.President Lee also highlighted the importance of ensuring worker safety during the heatwave. He called for thorough inspections to ensure compliance with work stoppage and rest periods during the hottest hours at outdoor job sites, urging authorities to enforce safety regulations diligently.He emphasized proactive measures to prevent damage to agriculture, fisheries, and infrastructure. He instructed officials to take precautions against potential harm to livestock, aquaculture, and crops, while closely monitoring the safety of roads, railways, and power supply.Additionally, he requested that the health and safety of on-site responders, including public officials, police, firefighters, and volunteers, be prioritized.In light of the worsening drought, particularly in southern regions, President Lee called for stable water supply measures. He noted the lack of rain in the forecast and urged the active promotion of alternative water supply and pumping equipment to ensure a steady water supply.He also stressed the need for long-term water supply solutions, including the development of alternative water sources, in areas without access to public water supply.During a subsequent closed-door meeting, relevant ministries and local governments reported on the current status and response measures regarding heatwave and drought damage.The Ministry of Health and Welfare reported that it is strengthening tailored protection for vulnerable groups, including the elderly living alone, disabled households, the homeless, and residents of small rooms. The Ministry of Employment and Labor explained plans to enhance field inspections and financial support for businesses vulnerable to heat.Local governments, including Gyeonggi Province and South Gyeongsang Province, also reported on the status of heatwave and drought damage in their regions and their future response plans.President Lee inquired whether the Ministry of Health and Welfare could utilize artificial intelligence (AI) to check on vulnerable populations, urging all departments to pay more attention to administrative digitization and the use of new technologies.This request is interpreted as a call to shift from reactive measures after heatwave damage occurs to a proactive system that uses AI and administrative data to identify and protect at-risk individuals.He also separately addressed the issue of migrant workers exposed to extreme heat, referencing media reports and noting that protecting migrant workers is not only a human rights issue but also affects South Korea's international image and economy.He instructed the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Employment and Labor to closely monitor the working and resting conditions of migrant workers in rural and outdoor job sites, as well as compliance with heat safety regulations.President Lee acknowledged that some departments have managed to reduce damage through proactive responses despite worsening weather conditions this year. He urged them not to settle for post-event recovery but to strengthen preemptive inspections and preventive measures against heatwaves.He reiterated, "All administrative power must be mobilized to minimize damage to the public from heatwaves and droughts," emphasizing the need for each agency to respond with a sense of responsibility that the public can feel.Attending the meeting were Chief of Staff Kang Hoon-sik, Policy Chief Kim Yong-beom, and Minister of the Interior and Safety Yoon Ho-jung, along with other relevant ministers. Representatives from regional governments and agencies such as the Korea Meteorological Administration, National Police Agency, and National Fire Agency participated via video conference.* This article has been translated by AI. 2026-08-06 18:48:10
  • KOSPI Experiences Extreme Volatility Despite New Regulations
    KOSPI Experiences Extreme Volatility Despite New Regulations Last year, the average daily return volatility of the KOSPI was 1.4%. However, in the first half of this year, the volatility surged to 3.6%, nearly doubling. This is the highest level among major global stock markets, indicating a significant number of days with sharp rises and falls. The 'single-stock leverage' (referred to as '단종레') has been identified as a major contributor to this volatility. Yet, even after the implementation of regulations on July 30, including an increase in the basic deposit requirement, the KOSPI shows no signs of calming down. Since the regulations took effect, there have only been two days when the volatility was below 3%.KOSPI Volatility Among Major Countries is the WorstAccording to the financial investment industry and the Capital Market Research Institute, the KOSPI's daily return volatility for the first half of this year reached 3.6%, about double last year's annual average of 1.4%. This is the highest level among 36 countries analyzed by the Capital Market Research Institute. In comparison, Japan's TOPIX volatility increased slightly from 1.3% last year to 1.5% in the first half of this year, while Taiwan's weighted index rose from 1.5% to 1.8%. Even the U.S. S&P 500 index saw a decrease in volatility from 1.2% to 0.9%.The monthly volatility is even more alarming. In March and June, the KOSPI recorded volatilities of 4.8% and 4.7%, respectively. In July, there were 15 trading days where the KOSPI experienced fluctuations of over 4%. Notable extreme fluctuations occurred on July 18 (down 10.84%) and July 31 (up 17.91%).In response to the severe volatility, the government expedited the implementation of '단종레' regulations on July 30. However, the effects have been minimal. In the six trading days following July 30, the index experienced fluctuations of over 4% on four occasions. On August 6, the KOSPI closed at 6,296.38, down 301.88 points (-4.58%) from the previous trading day. Although the trading volume of 16 '단종레' products fell below 1 trillion won for the first time since their launch, the KOSPI's volatility remains high.Is Samsung Electronics and SK Hynix's 'Tightrope Walking' the Problem?Market analysts are questioning whether '단종레' is indeed the primary cause of the increased volatility. In a report titled 'Review of the Background of Rising Stock Market Volatility,' senior researchers Kim Jun-seok and Jang Geun-hyuk from the Capital Market Research Institute pointed to the stock market's excessive reliance on two major stocks, Samsung Electronics and SK Hynix, as a structural issue contributing to volatility.The report indicates that the market capitalization share of Samsung Electronics and SK Hynix, which was around 23% at the beginning of last year, surged to 55% by the end of June (59% based on the KOSPI 200). With more than half of the index represented by just two companies, any external shocks, such as uncertainties in the global memory semiconductor industry or U.S.-China technology conflicts, can lead to significant declines in the KOSPI.The recent drop in the KOSPI was largely attributed to declines in Samsung Electronics and SK Hynix, which fell by 6.30% and 10.37%, respectively.Other experts share similar views. Lee Byung-geon, head of research at DB Securities, explained, "The sharp fluctuations in the index are not due to leverage products, but rather because the buying momentum from individual investors has weakened in response to external negative factors, such as profit-taking by U.S. big tech companies, leading to thinner liquidity." Kim Hak-kyun, head of research at Shin Young Securities, noted, "While the reduction in trading volume of single-stock leverage products indicates some regulatory effect, the volatility itself is not solely due to these products. The essence of the volatility lies in domestic and external variables and uncertainties arising from stock price surges, with single-stock leverage merely amplifying these factors. He added that concerns about whether major big tech companies will continue to purchase semiconductors represent fundamental uncertainties driving stock price fluctuations."* This article has been translated by AI. 2026-08-06 18:48:00
  • American Airlines Asks Passengers to Voluntarily Deplane Amid Extreme Heat
    American Airlines Asks Passengers to Voluntarily Deplane Amid Extreme Heat In Las Vegas, extreme heat has made it difficult for aircraft to take off, prompting American Airlines to offer compensation to passengers and request they take a later flight.According to the Associated Press, on July 24, American Airlines asked passengers on a flight departing from Harry Reid International Airport in Nevada to voluntarily give up their seats. At the time, local temperatures reached 114 degrees Fahrenheit, or about 46 degrees Celsius.Local broadcaster FOX5 reported that crew members asked 32 passengers who were already on board to voluntarily disembark. American Airlines provided compensation to those who gave up their seats, and the flight departed later after reducing its weight.American Airlines explained, "When temperatures are particularly high, it may be necessary to reduce the weight of the aircraft for safe operations," noting that this is a common practice in areas experiencing extreme heat.The impact of heat on aircraft takeoff is due to air density. As temperatures rise, air expands and becomes less dense. This can reduce the lift generated by the aircraft's wings and the thrust from the engines, potentially requiring a longer runway distance for takeoff.Before takeoff, airlines calculate whether it is safe to depart based on the aircraft's weight, external temperature, airport elevation, and runway length. If the criteria are not met, they may reduce cargo or passengers, carry less fuel, or delay departure until temperatures drop.There is no uniform maximum temperature for aircraft takeoff. The Federal Aviation Administration states that limits vary based on aircraft type, weight, and airport elevation. If conditions exceed the operational guidelines set by the aircraft manufacturer, the aircraft cannot operate.Airports at higher elevations typically have thinner air, and those with shorter runways may struggle to achieve sufficient speed, making them more susceptible to the effects of extreme heat. The AP cited Denver, New York's LaGuardia, and Washington's Ronald Reagan airports as examples that are relatively vulnerable to weight restrictions during high temperatures.From 2020 to 2025, Harry Reid International Airport recorded an average of about 18 days per year with temperatures exceeding 110 degrees Fahrenheit (43 degrees Celsius), more than double the average from the 1940s to 1960s.* This article has been translated by AI. 2026-08-06 18:48:00
  • IBK Banks Business Plus Card Gains Popularity Among Small Business Owners
    IBK Bank's Business Plus Card Gains Popularity Among Small Business Owners As it becomes increasingly difficult to find credit cards with attractive benefits, a "hidden gem" card is gaining traction among small business owners. Without any major advertising, IBK Bank's "Business Plus Card" for small businesses has reached a cumulative issuance of 20,000 cards.According to the financial sector on August 6, over 9,000 cards were issued in the five months since the card's re-launch in March. The total number of cards issued since July of last year stands at 19,965, and it is expected to surpass 20,000 this week. The total transaction amount is around 300 billion won.This growth is attributed to the card's benefits being shared within small business communities, leading to a steady increase in users without any initial marketing efforts.The Business Plus Card is a credit card specifically designed for small business owners, operated in collaboration with the Ministry of SMEs and Startups, the Korea Credit Guarantee Fund, and IBK Bank. It allows small business owners to obtain credit cards with limits of up to 10 million won, providing essential funds to address urgent financial needs.The card offers several benefits, including a waiver of the annual fee for individual business owners and the option for up to six months of interest-free installments. Cardholders can earn 3% cashback on their spending for the first year, which drops to 1% thereafter. Consistent use of the card can also help improve credit scores.Due to its appealing features, inquiries about eligibility, limits, tax payment options, and usage are frequently posted in online communities for self-employed individuals. The card is seen as essential for managing business expenses while also facilitating tax payments and various operational costs.While small business owners are showing significant interest, IBK Bank has indicated that the card is essentially a "loss leader" product. The combination of waived annual fees, long-term interest-free installments, and cashback benefits reflects a strong policy finance character. Unlike typical credit card products, the focus is on alleviating the financial burden for small business owners rather than generating profit.A financial industry official stated, "In a time when it is challenging to find products with good benefits, the relatively differentiated conditions of this card are becoming more prominent. As the benefits become known, issuance continues to rise steadily without additional marketing efforts."* This article has been translated by AI. 2026-08-06 18:48:00
  • Homeplus Prepares to Reopen 67 Stores After Securing Emergency Funds
    Homeplus Prepares to Reopen 67 Stores After Securing Emergency Funds Homeplus has initiated the reopening of 67 stores after securing 200 billion won in emergency operating funds. The stores will begin a soft opening on August 7, during which product displays and facility checks will take place, with full operations set to commence on August 13.On August 6, the Homeplus store in Cheonho-dong, Gangdong-gu, Seoul, buzzed with activity after being closed for nearly three weeks. The sounds of refrigeration units, which had been silent for a long time, filled the basement food court, while four employees in Homeplus vests activated the point-of-sale systems to check the payment process.Nearby, another employee was busy restocking empty shelves with boxes of Homeplus's private brand, Simplus.Around 20 employees were actively engaged throughout the food court, arranging products, cleaning shelves, and checking price tags and inventory. Staff in the ready-to-eat section were also preparing for customers by inspecting cooking equipment and utensils. Laughter from employees returning to work after a long absence could be heard throughout the store.In contrast, the basement level, which previously sold electronics and miscellaneous goods, remained dark and quiet. Homeplus is reducing its multi-level stores to single-level layouts of about 1,000 square meters, focusing on food, private brands, and essential goods. The company plans to model its operations after Trader Joe's, which features over 80% private brand products.The company is also accelerating the restocking of products for the reopening. According to a Homeplus representative, 10 pallets were received on August 3, followed by 20 pallets on August 4, and another 10 pallets on August 5. From August 6 to 8, an additional 40 pallets are scheduled to arrive each day.At the 67 stores nationwide, a minimum of 52 to a maximum of 70 employees are working to restock products and check facilities. Many indirect workers responsible for parking, cart management, and store maintenance during the closure have left, so existing staff are sharing responsibilities across departments.However, the restoration of the fresh food supply chain is expected to be critical for resuming normal operations. The Homeplus Labor Union emphasized in a statement that the normalization of deliveries from Nonghyup, which has supplied over 50% of fresh food, will be a decisive factor in the overall reopening success.Meanwhile, Homeplus plans to keep stores open from August 7 to 12 for product displays and facility checks, with formal operations, including discount events, starting on August 13. Online delivery services will resume around August 13 at 20 stores, with plans to gradually expand to a maximum of 59 stores.* This article has been translated by AI. 2026-08-06 18:44:20
  • Ruling Party: Major Asset Management Firms Lack Incentives for Stewardship Code Activities
    Ruling Party: Major Asset Management Firms Lack Incentives for Stewardship Code Activities The Democratic Party stated on August 6 that "major asset management firms claim they have no incentives to engage in stewardship code activities compared to smaller firms."Kim Nam-keun, a member of the Democratic Party's K-Capital Market Special Committee, spoke to reporters after a meeting with the Financial Services Commission, the Ministry of Health and Welfare, and the National Pension Service to review the implementation of the National Pension's stewardship code. He noted, "It is common for large asset management firms to be affiliates of large corporations or financial holding companies. There is significant external pressure and pressure related to transactions with affiliates."The stewardship code is a voluntary guideline that encourages institutional investors to monitor the management of the companies they invest in and exercise their voting rights to enhance corporate value. The K-Capital Market Special Committee views the activation of the stewardship code as one of its key tasks.He added, "The way the National Pension evaluates the stewardship code activities of each asset management firm will no longer be haphazard but will be structured." He also announced plans to hold a discussion forum in the National Assembly at the end of this month.The upcoming forum is expected to focus on improving practices related to 'stock price suppression.' Kim stated, "The stock market has significantly declined due to single-stock leveraged ETFs, and there is growing distrust about whether it can recover. We aim to discuss how to restore that trust."Meanwhile, there has been backlash within the ruling party regarding the stock price suppression measures included in the recent government tax reform proposal. Representative Lee Hoon-ki introduced a bill containing improvement measures the previous day.* This article has been translated by AI. 2026-08-06 18:44:20