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Changwon Secures 21.6 Billion Won for Manufacturing AI and 5G Infrastructure Changwon Special City is set to support the transition of its manufacturing sector to artificial intelligence (AI) with a foundation for industry-academia cooperation and the establishment of a dedicated 5G communication network for industrial complexes.The city announced that its "Manufacturing AX Industry-Academia Innovation Park Project" and "5G Specialized Network Infrastructure Project" have been selected under the Ministry of Trade, Industry and Energy's "2026 Smart Green Industrial Complex Support Project". The projects will run from August 2026 to December 2028, with a total budget of 21.636 billion won, including 6.636 billion won for the Innovation Park and 15 billion won for the 5G network. Of this, 16.5 billion won will come from national funds.The city plans to connect these initiatives with the existing "Smart Green AX Demonstration Industrial Complex Project" to develop the Changwon National Industrial Complex and the Masan Free Trade Zone as AI autonomous manufacturing demonstration hubs. The existing demonstration complex project is a separate initiative with a total investment of 22.2 billion won, running from September 2025 to December 2028.The Manufacturing AX Industry-Academia Innovation Park will be centered around the Masan Free Trade Zone and Bongam Industrial Complex. Funding will consist of 6 billion won from national funds, 600 million won from the city, and 36 million won from private contributions.The project includes the establishment of GPU servers and IoT-based shared AI infrastructure, operation of a manufacturing data library, training for current employees, and a concept verification competition. The city aims to train over 250 specialized personnel in Manufacturing AX during the project period.The 36 million won in private contributions is not a cash investment from participating companies but is the equivalent value of the labor costs of professors from Gyeongnam National University. A city official stated, "The 36 million won from private contributions reflects the labor costs of Gyeongnam University professors, and participating companies will be recruited through a separate announcement after the project is confirmed and agreements are signed." The scope of support for each company and selection criteria will be determined in future announcements.No Provincial Funding for Innovation Park; Local Funds Focused on 5G ProjectNo provincial funding has been allocated for the Manufacturing AX Industry-Academia Innovation Park. In contrast, the 5G specialized network project includes 1.35 billion won from provincial funds and 1.35 billion won from city funds.The city cited the project structure, which requires local funding to cover more than 10% of the total project cost, and limited local finances as reasons for this allocation. A city official explained, "Not only the Changwon National Industrial Complex but also the Masan Free Trade Zone and Bongam Industrial Complex require a foundation for manufacturing transition. Due to budget constraints, local funds have been concentrated on the 5G specialized network project."The city funds for the 5G specialized network will be allocated as follows: 400 million won in 2026, 500 million won in 2027, and 450 million won in 2028. The annual distribution of national and provincial funds will be determined during the project planning process.A total of 15 billion won will be invested to establish a shared 5G specialized network in the industrial complex. This funding will come from 10.5 billion won in national funds, 1.35 billion won each from provincial and city funds, and 1.8 billion won from private contributions. The project aims to create a shared infrastructure for a 5G core network and integrated control system, enabling companies in the industrial complex to collect and transmit manufacturing data in real-time. It will also establish a demonstration environment for AI-based quality inspection and predictive maintenance services, reducing the burden of AI adoption for small and medium-sized enterprises by eliminating the need for individual companies to build expensive communication infrastructure.There have been previous instances of individual companies establishing their own 5G specialized networks. However, the city emphasized that the basis for its claim of being the "first in the nation" lies in the establishment of a shared communication network specifically for industrial complexes. In a written response, the city stated, "The establishment of a 5G specialized network for industrial complexes is the first in the nation."Changwon aims to increase the AI transition rate among manufacturing companies in the industrial complex to 30% through the existing demonstration complex project. This goal is based on the 225 companies that will establish intermediate stages 1-2 of smart factories in Changwon by 2024 through the Gyeongnam Smart Factory Construction Project. The city has set a target of converting over 70 of these companies to AX.Support will be provided through site visits and technical consulting via the AX Comprehensive Support Center. Technical criteria for determining AI transition companies and performance indicators for achieving goals will be specified in subsequent project plans.The leading factories in the existing Smart Green AX demonstration complex project include Doosan Enerbility, Hyundai Wia, and Samhyun. These three companies were selected through a public competition in August 2025, with the first-year agreement signed in October 2025 and the second-year agreement in March 2026.The ratio of national and local funding support compared to the total project cost is 2.25% for Doosan Enerbility, 8.69% for Hyundai Wia, and 6.98% for Samhyun. The self-funding ratios for the companies are 4.05% for Doosan Enerbility, 5.61% for Hyundai Wia, and 1.86% for Samhyun.Changwon plans to promote the dissemination of manufacturing data and AI models obtained from leading factories to small manufacturing companies through site visits and technical consulting via the AX Comprehensive Support Center. The city aims to spread autonomous manufacturing models that apply AI in machinery and defense-centered manufacturing environments and strengthen the industry-academia-research cooperation system to expand tailored technical support and demonstrations.Shim Dong-seop, Director of the Future Strategy Industry Bureau of Changwon, stated, "The establishment of 5G and AI-based infrastructure will serve as a turning point for the Changwon manufacturing industry to transition to an AI-based autonomous manufacturing system. We will ensure the smooth progress of the project to position Changwon as a leading city in manufacturing innovation in South Korea."Changwon plans to announce the recruitment of participating companies for the Industry-Academia Innovation Park after finalizing the agreements and implementation plans, and will proceed with the establishment of the 5G specialized network and the Manufacturing AX demonstration project by December 2028.* This article has been translated by AI. 2026-08-06 17:56:00 -
Extreme Heat Reaches Crisis Levels, Local Governments Mobilize Emergency Response An extreme heat wave, with perceived temperatures nearing 38 degrees Celsius (100.4 degrees Fahrenheit), is posing a serious threat to public health and economic livelihoods across the country. As this heat wave escalates into what experts are calling a 'climate disaster,' local governments are deploying emergency disaster funds and activating response systems to protect vulnerable populations. The Korea Meteorological Administration has forecasted that the maximum perceived temperature will remain around 38 degrees Celsius, with actual temperatures exceeding 39 degrees Celsius. On August 5, the first 'major heat warning' of the summer was issued for Seoul and other key regions nationwide. With the highest level of heat advisory in effect, the number of heat-related illnesses is rising, and the risk of safety incidents at outdoor workplaces is increasing, leading to a national emergency situation. The extreme heat has also paralyzed cultural and economic activities. Five outdoor events, including 'Culture Flows in Seoul Plaza,' scheduled to take place in the Seoul Plaza and Hanyangdoseong area, were canceled for safety reasons. Additionally, guided tours at major tourist sites and mobile information centers have been temporarily suspended, severely impacting workers involved in these events and nearby small businesses. An outdoor event organizer expressed concern, stating, "The cancellation of events has cut off my income for this month, making survival my primary worry over the heat." A worker on-site also lamented, "While safety is ensured by halting work, I feel lost without my daily wages due to the work stoppage," highlighting the economic hardships caused by the heat wave. As the impact of the heat wave spreads, local governments have initiated immediate emergency responses. The Seoul city government has implemented a three-pronged approach of 'Stop, Cool Down, and Check,' allocating 20.5 billion won (approximately $17 million) for disaster relief. Consequently, outdoor work at 56 construction sites commissioned by the city has been suspended, and the frequency of road water cleaning has been increased to a maximum of six times a day to mitigate urban heat island effects. Gyeonggi Province has also activated its heat disaster safety headquarters to monitor compliance with rest periods at construction sites and enhance safety management for elderly residents living alone in rural areas. Local municipalities are deploying water trucks, operating outdoor water coolers, and keeping heat relief centers open 24 hours as part of tailored regional measures. Protective measures for vulnerable populations directly exposed to health risks are also being prioritized. The Seoul city government is providing emergency cooling cost support of 50,000 won (about $42) to approximately 410,000 households receiving basic living assistance and those in the next lower income bracket. Additionally, support for electricity costs for shared air conditioning units in goshiwons (small boarding houses) and enhanced home nursing services are being implemented. For over 63,000 individuals in vulnerable health categories, including elderly residents living alone and people with disabilities, daily check-ins are being conducted at least once or twice. Furthermore, 30 rest areas for mobile workers are being expanded to operate through the weekend, mobilizing all administrative resources. Disaster safety experts are emphasizing the need for a national awareness of the crisis posed by the heat wave. One expert stated, "This heat wave has escalated beyond a temporary weather phenomenon into a serious disaster situation that directly threatens the lives and livelihoods of citizens. Local governments must mobilize all administrative resources to eliminate safety blind spots and maintain robust on-site responses."* This article has been translated by AI. 2026-08-06 17:56:00
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TSMC Boosts 3-Nanometer Production Capacity Amid Rising AI Chip Orders The world's largest foundry, Taiwan's TSMC, is rapidly increasing its advanced process production capacity due to a surge in orders for artificial intelligence (AI) semiconductors.According to reports from Taiwan's Economic Daily and others, TSMC's wafer input for its 3-nanometer (nm) process is projected to reach 180,000 wafers per month by early the fourth quarter of this year. Wafer input refers to the number of raw wafers entering semiconductor production lines, serving as an indicator of factory production capacity.This timeline for achieving the 180,000 wafers per month target has been moved up by 2 to 3 months from initial expectations of year-end. However, this figure is based on estimates from supply chain sources and has not been officially confirmed by TSMC. The company's 3-nanometer production capacity reportedly increased to around 150,000 wafers per month in the first half of this year.The increase in orders from major clients such as NVIDIA, AMD, and Broadcom for AI and high-performance server semiconductors has driven this growth. To meet the rising demand, TSMC is converting some of its 5-nanometer equipment for use in the 3-nanometer process and is accelerating the expansion of its production facilities.Production capacity for the next-generation 2-nanometer process is also expected to grow rapidly. Supply chain sources predict that monthly production capacity will increase from 50,000 to 60,000 wafers in the first half of this year to over 80,000 wafers by early the fourth quarter, nearing 100,000 wafers by year-end.As a result, the combined production capacity for the 2-nanometer and 3-nanometer processes is expected to exceed 260,000 wafers per month by early the fourth quarter.The share of advanced processes in TSMC's revenue is also increasing. In the second quarter of this year, the 3-nanometer and 2-nanometer processes accounted for 30% and 3% of total wafer revenue, respectively. The combined share of all advanced processes below 7 nanometers reached 77%.To respond to the demand for AI semiconductors, TSMC has raised its capital expenditure forecast for this year from $52 billion to $56 billion to between $60 billion and $64 billion. The company plans to allocate 70% to 80% of its total investment to advanced process technologies.TSMC Chairman Wei Zhejia stated, "Demand related to AI is expected to remain strong until 2029 to 2030."* This article has been translated by AI. 2026-08-06 17:56:00
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FSS to tighten rules on ELS products to protect investors SEOUL, August 6 (AJP) - As the South Korean stock market remains highly volatile with the benchmark KOSPI tumbling more than 4 percent on Thursday alone, market analysts expect a set of new government measures to protect investors in structured products unveiled the previous day to help contain market jitters while easing investor anxiety. The measures, outlined by the Financial Supervisory Service (FSS), followed three months of discussions with the Korea Financial Investment Association (KOFIA) and executives from the country's 10 largest securities firms after investors suffered heavy losses from equity-linked securities (ELS) products linked to Hong Kong's Hang Seng China Enterprises Index, which plunged and triggered large principal losses. The FSS' deputy governor Seo Jae-wan said the ELS losses exposed weaknesses in protecting investors, requiring preventive measures to address them. Under the measures, set to take effect gradually later this year, securities firms are required to send a one-time alert when the underlying asset of a high-risk ELS approaches within 10 percentage points of the knock-in barrier, the threshold at which principal losses may begin. The alert is intended to give investors more time to decide whether to continue holding the product or redeem it early. Securities firms will also be required to notify investors when early redemption becomes available and provide guidance to prevent automatic reinvestment in similar products. Before new products go on sale, it will be mandatory for securities firms to strengthen risk checks during the initial stage, establish clearer standards for selecting underlying assets, and assess whether products are exposed to excessive concentration or heightened market volatility. Consumer protection, compliance and sales departments will also be required to be more actively involved in the product approval process, while a chief consumer protection officer (CCO) will have the authority to delay products if they lack adequate investor safeguards. Securities firms will also need to provide clearer information when selling structured products. Summary documents should include annualized and actual returns, recent movements in underlying asset prices, and key features, such as issuers' early redemption rights, to help investors better understand the risks and possible returns. Post-sale monitoring will also be strengthened. High-risk products will be reviewed quarterly instead of annually, and reports to boards of directors will be required every six months rather than once a year. Securities firms will also set internal standards to detect and monitor potentially unsuitable sales, especially those involving elderly investors. KOFIA plans to revise its self-regulatory rules in September, and securities firms are expected to update their internal policies and establish systems for providing ELS risk alerts by year-end. AJP Takeaways: - South Korea's Financial Supervisory Service (FSS) announced new investor protection measures for structured products on Aug. 6, 2026, following heavy losses in equity-linked securities (ELS) tied to Hong Kong's Hang Seng China Enterprises Index. - Securities firms will be required to send investors a risk alert when the underlying asset of a high-risk ELS comes within 10 percentage points of its knock-in barrier, the threshold at which principal losses may begin. - The reforms strengthen oversight across the entire product lifecycle, including product design, approval, sales practices and post-sale monitoring, with stricter governance requirements for securities firms. - Sales documents will include clearer information on actual and annualized returns, recent underlying asset performance and key product features, including issuer early redemption rights, to help investors better understand risks. - The Korea Financial Investment Association (KOFIA) plans to revise its self-regulatory rules in September 2026, while securities firms are expected to complete the systems needed for ELS risk alerts by the end of 2026. 2026-08-06 17:49:45 -
Kangaroo families become the new normal from Seoul to San Francisco SEOUL, August 06 (AJP) - Suddenly, kangaroos seem to be multiplying around the world. Not in the Australian outback, but in family homes from South Korea to the United States, where growing numbers of young adults are delaying independence and staying in — or moving back to — their parents' houses as soaring housing costs outpace wages. The once-stigmatized "kangaroo family," in which adult children remain in the parental home, is increasingly becoming an economic necessity rather than a personal choice. "There is no reason to move out and spend all my salary on housing and living costs," said Park Jae-wook, a 29-year-old office worker who still lives with his parents in southern Seoul despite commuting across the city each day. "Almost all my unmarried friends live with their parents. It's completely normal now." In South Korea, 3.53 million households headed by people in their 50s and 60s — more than one-third of the total — lived with unmarried children in their 20s or 30s last year, government data showed. Among unmarried Koreans in their 30s living with parents aged between 50 and 69, more than three-quarters were employed, underscoring how a steady paycheck no longer guarantees residential independence. A new study by the Korea Employment Information Service points to an even wider disconnect between earning one's own living and being able to afford a home away from one's parents. Tracking the same group of young Koreans between 2021 and 2024, the agency found that the proportion considered economically independent rose to 75.4 percent from 65.9 percent. But the share that had achieved residential independence edged up to only 30.4 percent from 26.4 percent over the same period. The report defines economic independence as being employed without financial support from parents, while residential independence means living separately from them. The divide was even more striking in the Seoul metropolitan area, home to some of the country's most expensive housing. Some 78.1 percent of young people there were economically independent in 2024, higher than the 72.3 percent outside the capital region. Yet just 27.8 percent lived independently, compared with 33.2 percent elsewhere. The employment agency said the reversal suggests high housing costs are holding back young people in the capital even after they secure jobs and income. The pattern can persist for years. Of young people who were financially independent but still living with their parents in 2021, 70.6 percent remained in the same position three years later. Just 17.4 percent had gone on to achieve both financial and residential independence by 2024. "The rent is simply too expensive," said Oh Eun-ji, 56, who lives with her two adult children. "It makes perfect sense for them to stay home and save until they get married." The phenomenon is no longer uniquely Korean. In China, the rise of so-called "full-time children" has become one of the country's defining social trends. Millions of young adults have returned home, helping with housework and caring for elderly parents in exchange for financial support after a prolonged youth employment crisis. A Peking University report estimated that about 16 million young Chinese fit the description. Japan has grappled for years with the "8050 problem," where parents in their 80s continue supporting socially isolated children in their 50s, highlighting how prolonged dependence can persist across decades. The United States is experiencing a similar shift, albeit for different reasons. Nearly half of Americans under 30 lived with a parent this year, according to Federal Reserve data, while Realtor.com estimated that one-third of adults aged between 25 and 35 remained in the family home. Roughly 70 percent of them were employed, suggesting that affordability rather than unemployment has become the principal obstacle to leaving home. The common thread running through countries with vastly different economies is a widening mismatch between the cost of independence and what young adults can realistically afford. Housing prices and rents have climbed far faster than entry-level wages, while stable jobs have become more difficult to secure. Leaving home is increasingly viewed less as a milestone reached upon adulthood than one earned through years of saving. South Korea illustrates that changing mindset. A government survey found that more young people now believe they should accumulate sufficient savings before moving out than simply reach adulthood or even secure employment, reflecting a growing belief that financial readiness has become the true threshold of independence. Employment itself has also become a weaker guarantee of autonomy. In the United States, where most young adults living with parents already have jobs, analysts increasingly describe the trend as a housing affordability crisis rather than a labor-market problem. Similar pressures are emerging across advanced economies as rents and property prices continue to outpace income growth. Living with parents can shield young adults from debt and prohibitively high housing costs, allowing them to save money during economically uncertain years. But when remaining at home becomes the only practical option, economists warn that it delays household formation, marriage, childbirth and first-time home purchases — decisions that ripple across entire economies already struggling with aging populations and falling birthrates. Parents face mounting pressures as well. Supporting adult children for longer can postpone retirement, reduce savings and increase household expenses at a stage of life when many expected greater financial security. The trend also risks widening inequality. Young adults from wealthier families can accumulate savings while living rent-free, whereas those whose parents cannot provide long-term support may enter adulthood with far fewer opportunities, reinforcing wealth gaps across generations. "What we are seeing is a common pattern across advanced economies," said Rep. Ahn Sang-hoon of the conservative People Power Party, a former professor of social welfare. "Declining youth employment and soaring housing prices are making it increasingly difficult for young people to become independent." Ahn argued that governments should shift resources away from short-term spending toward long-term investment benefiting younger generations, warning that artificial intelligence and robotics could further weaken employment prospects. "Older generations need to shoulder more of the burden while governments invest for future generations under fiscally sustainable policies," he said. "Otherwise, short-term populism will simply leave young people carrying an even heavier burden." Key Takeaways Young adults living with parents are becoming a global norm as housing costs outpace wages. From South Korea and China to Japan and the United States, even employed young people are delaying residential independence because rent and home prices have risen faster than entry-level incomes. The rise of “kangaroo families” could deepen demographic and economic challenges. Prolonged dependence on parents may delay marriage, childbirth, household formation and first-time home purchases, while increasing financial pressure on parents approaching retirement. Intergenerational inequality could worsen without youth-focused housing and employment policies. Young adults from affluent families can save money while living rent-free, but those without parental support face greater financial insecurity, as AI, automation and unstable employment threaten to further narrow their path to independence. 2026-08-06 17:46:19 -
Stray Kids hit 'mega IP' scale, but say risk still drives the music SEOUL, August 06 (AJP) - Stray Kids are now spoken of in the language of K-pop scale: record album debuts, sold-out tours and the kind of commercial weight that makes a group more than a performing act. But at a press event in Seoul ahead of the release of the group's new EP, "THIS & THAT," the eight members kept returning to a different idea — that the safest version of Stray Kids is not necessarily the one they want to repeat. The EP will be released Friday at 1 p.m. KST, following a run in which Stray Kids became the first act to debut eight consecutive releases at No. 1 on the Billboard 200, according to JYP Entertainment. A reporter at the event also cited a recent paper by a Sungshin Women's University researcher that placed Stray Kids among a small group of K-pop acts with more than 10 million cumulative album sales — a tier described in the question as "mega IP." That is the kind of status that can pressure a group to protect its formula. Stray Kids said it chose the opposite. "There are always safe choices," Bang Chan said. "We could have brought back the same energy we had before. But the reason we keep trying new things is because that feels more fun." He said taking a new path can bring difficulties and variables, but that the process also gives the group something to learn. "If we did the same thing every time, it would lose interest," he said. "That is why we keep starting something new." That idea sits at the center of "THIS & THAT," whose title track marks a shift from some of the high-intensity songs that have defined much of Stray Kids' image. Changbin said the title track shows a more relaxed side of the group while still carrying the confidence implied by the album title — the idea that Stray Kids can try "this and that" without losing its identity. Han described the track as experimental because of its unusual sound, but said the group tried to make it easier to approach by repeating simpler lyrics in the chorus. The members said they were drawn to the song early in the writing process in the United States, when the hook came together quickly and the rhythm made them want to move. Even so, the group isn't pretending the numbers around it don't exist. Asked about expectations for extending its Billboard streak, Changbin said the members do not build albums around chart targets. "When we prepare an album, a concert or a new project, we do not start by setting achievements as the standard," he said. "We try to show and share our sincerity with STAY." Asked later about awards, including the Grammy Awards' new Asian pop category, the members again avoided talking about submissions or odds and returned to the same point: music first. Seungmin said Stray Kids builds its music and performances from stories that come from inside the group rather than from outside expectations. Felix said the group's biggest goal with "THIS & THAT" is to show what it can do and make fans happy. "The most important thing is that our fans are satisfied and happy," he said. The event also placed Stray Kids' next stage in view. Lee Know, born in 1998, addressed the mandatory military service question that will eventually reach every member of the group. He said fulfilling the duty would be natural when the time comes, while adding that detailed plans for post-service album activities have not yet been discussed. "What is certain is that we will gather again," Lee Know said. "Please wait a little. I'll be back soon." That answer gave the album another layer. "THIS & THAT" is arriving at a point when Stray Kids has little left to prove commercially, but also when the group is beginning to face the time limits that come with military service — a stage every Korean male act eventually reaches. Seungmin said the group did not want to lose the happiness of the present by thinking too far ahead. "Our goal is to do the best activities we can in the present," he said, "and show the best music and performances with sincerity." For Stray Kids, the message around "THIS & THAT" is not that records no longer matter. It is that the group does not want records to decide the shape of its music. At the moment when the safer choice may be easiest to justify, Stray Kids are still making the case for risk. AJP Takeaway: Stray Kids will release the EP “THIS & THAT” at 1 p.m. KST on Aug. 7, 2026, after becoming the first act to debut eight consecutive releases at No. 1 on the Billboard 200, according to JYP Entertainment. A recent academic paper cited at the Seoul press event placed Stray Kids among a small group of K-pop acts with more than 10 million cumulative album sales, a commercial tier described as “mega IP.” Despite that scale, Stray Kids said it deliberately avoided repeating a proven formula, using the title track to explore a more relaxed and experimental sound while preserving the group’s identity. The members said chart records and awards, including the Grammy Awards’ new Asian pop category, do not determine how they make music, emphasizing internal storytelling and fan satisfaction instead. Lee Know said Stray Kids will reunite after completing mandatory military service, while the group’s immediate priority is to focus on its current music and performances rather than distant plans. 2026-08-06 17:42:35 -
Kazakhstan starts 800km highway to Caspian ports SEOUL, August 06 (AJP) - Construction began Monday on an 800-kilometer highway across western Kazakhstan that President Kassym-Jomart Tokayev said will connect crossings on the Chinese border directly to the Caspian ports of Aktau and Kuryk, giving trucks a direct route onto the trade corridor Europe has been funding as an alternative to shipping through Russia. Tokayev launched the project by video link from Astana along with two other road schemes. He said the new highway would shorten the freight route between China and Europe by 1,000 kilometers and cut delivery times to three days, and proposed naming it the Aral-Caspian Highway. The road runs from Beineu in Mangystau region to Sekseuil, the settlement on the northeastern edge of the Aral basin that Kazakh officials and state media still commonly call by its Soviet-era name, Saksaulsk. Tokayev told the broadcast the highway would function as a "golden bridge" between China and Europe. Work also started on capacity expansion and reconstruction of the Kyzylorda to Sekseuil and Ulgaysyn to Sekseuil highways, 774 kilometers between them. Kazakh companies will carry out the projects, creating more than 10,000 jobs, and freight traffic on the three roads is expected to rise 2.5 times to 13.2 million tons a year once they open. Tokayev set a completion deadline of 2029. The corridor the roads feed is formally the Trans-Caspian International Transport Route, generally called the Middle Corridor. It links western China to Europe through Kazakhstan, across the Caspian Sea by rail ferry, then through Azerbaijan, Georgia and Türkiye, bypassing Russian territory. Kazakhstan's Ministry of Transport says freight along the route has risen more than fivefold in seven years, from 800,000 tons to 4.5 million tons a year, with about 77,000 twenty-foot equivalent units moved in 2025. The ministry expects container traffic to reach 300,000 units by 2029. The World Bank assessed the corridor in 2023 and set out the investments and policy changes it said could triple freight volumes and halve travel times by 2030, alongside a diagnostic of infrastructure and logistics constraints in Azerbaijan, Georgia and Kazakhstan. Those constraints are the reason the route still moves a fraction of what the northern rail line through Russia once carried. The Beineu road has been on the European Union's list for some time. EU Ambassador to Kazakhstan Aleška Simkić told a Trans-Caspian corridor coordination workshop in Astana on June 3 that the bloc's 30 million euro transport support programme covers modernization of Aktau port facilities and preparatory work for the full modernization of the Beineu to Sekseuil road. Financing is still being arranged. The prime minister's office said international financial institutions and the Development Bank of Kazakhstan are running tender procedures for the Beineu, Kyzylorda and Ulgaysyn road projects, which are to use domestic materials and local specialists. Neither the presidential press service nor the government has published a total cost. Tokayev first proposed the Beineu road in 2021 at a meeting in Aktau, and technical studies, feasibility assessments and the identification of funding sources followed, first deputy chief of the presidential executive office Erlan Karin said, according to Kazakhstan's state news agency Qazinform. Karin said the route will be built through territory where no road previously existed, and that Kazakhstan's main transport lines have historically run north to south. Tokayev used the launch to set out the wider road program. Eight international corridors cross Kazakhstan carrying about 35,000 vehicles a day, road freight volumes have doubled in five years, and the sector earned 1.5 trillion tenge, about $3.2 billion, last year. Some 13,000 kilometers of road were built or repaired in 2025 and 6,000 kilometers opened to traffic. Kazakhstan is modernizing 37 road border checkpoints by 2028, with construction under way at 14 of them. Tokayev said the checkpoint overhaul would be the first of its kind since the country became independent in 1991. ---- AJP Takeaways ● Kassym-Jomart Tokayev launched construction of an 800-kilometer highway from Beineu to Sekseuil that he said will connect Chinese border crossings directly to the Caspian ports of Aktau and Kuryk, shortening the China to Europe freight route by 1,000 kilometers and cutting delivery times to three days. ● Kazakhstan's Ministry of Transport says freight along the Trans-Caspian International Transport Route, known as the Middle Corridor, has risen more than fivefold in seven years to 4.5 million tons a year, and expects container traffic to reach 300,000 twenty-foot equivalent units by 2029. ● The prime minister's office said international financial institutions and the Development Bank of Kazakhstan are still running tender procedures for the three road projects, and no total cost has been published by either the government or the presidential press service. Aju Press assembled this from government tender disclosures, which were absent from the launch announcement. ● The European Union has been funding preparatory work on the same road through its 30 million euro Trans-Caspian transport support programme, EU Ambassador Aleška Simkić said in Astana on June 3. 2026-08-06 17:36:16 -
Dormant debt market exposes non-chip Korean Inc. slump SEOUL, August 06 (AJP) - Summer arrived early for South Korea's corporate debt market as only a handful of investment-grade issuers broke the drought amid rising borrowing costs and subdued investor demand, exposing the slump across much of non-chip Korean Inc. Public corporate bond issuance totaled 2.96 trillion won ($2.1 billion) in July, down 16.1 percent from June and 37.5 percent from a year earlier, according to the Korea Financial Investment Association. Only 11 issuers conducted bookbuilding across 23 tranches. Nearly all proceeds — 96.1 percent — were used to refinance existing debt rather than raise fresh capital, while more than 90 percent of issuance carried maturities of two or three years. Financial companies accounted for 61.9 percent of issuance, underscoring that public bond markets remain largely open only to banks and top-rated borrowers refinancing existing obligations. The divide was most evident in credit quality. Hanjin was the only BBB-rated company to tap the public bond market in July. The BBB+ logistics company attracted 44 billion won in orders for a 40 billion won offering overall, but its one-year tranche fell 1 billion won short of its target. By contrast, AA-rated issuers including KCC and Shinhan Securities comfortably exceeded their fundraising goals, highlighting investors' growing preference for top-tier credits rather than a broad shortage of liquidity. The weakness has persisted throughout the year. Net corporate bond issuance totaled 4.84 trillion won during the first seven months, down 76 percent from 20.17 trillion won a year earlier. The deterioration was sharper among non-financial companies, whose first-half issuance fell 31.5 percent to 25.91 trillion won, resulting in net redemptions of 9.60 trillion won. The market has also become increasingly concentrated. Bonds rated AA+ or higher accounted for 76.9 percent of non-financial issuance, while those rated BBB or below represented only 2.2 percent, suggesting credit differentiation, rather than the seasonal summer lull alone, is keeping lower-rated borrowers out of the market. "The July-August period is typically slow for issuance, but elevated interest rates have made it increasingly difficult for companies to raise funds through public bonds," said a credit analyst at a domestic securities firm, who declined to be identified. Shut out of long-term bond markets, many companies have turned to shorter-term financing. Combined issuance of commercial paper and short-term notes surged 68 percent from a year earlier to 1,272.85 trillion won in the first half as companies opted for funding that is cheaper, faster and easier to arrange than public bond offerings. The shift, however, comes at a cost. Short-term borrowing must be rolled over more frequently, exposing companies to refinancing risk if liquidity tightens or interest rates remain elevated. "The gap between long-term bond yields and short-term funding costs remains wide," another credit analyst said. "That is likely to keep corporate bond issuance subdued through September and October." The financing squeeze is affecting companies unevenly. Large investment-grade corporations continue to enjoy access to public bond markets, while lower-rated midsized firms increasingly rely on private placements, commercial paper, guaranteed securities and bank loans. Most SMEs remain dependent on bank lending and policy-backed guarantees, while startups rely largely on venture capital and government support rather than debt markets. Bank financing has also become more expensive. The average lending rate for SMEs rose 23 basis points in June to 4.38 percent, compared with a seven-basis-point increase to 4.17 percent for large companies, according to the Bank of Korea, underscoring the faster rise in borrowing costs facing smaller businesses. Policy support has helped cushion some of the strain. Korea Technology Finance Corp. (KOTEC) issued 238.9 billion won of primary collateralized bond obligations in the first half to support 129 technology SMEs, including 166 billion won in new funding and 72.9 billion won for refinancing. The increasingly fragmented funding landscape illustrates a broader divide across corporate Korea. While the country's semiconductor champions continue to enjoy abundant access to capital, much of the broader corporate sector is relying on shorter-term borrowing, bank credit and government-backed financing instead of long-term bonds. If that divide persists, pressure on investment, hiring and business expansion is likely to emerge first among midsized companies, SMEs and startups, underscoring how South Korea's AI-driven chip boom continues to mask a much weaker financing environment across much of non-chip Korean Inc. 2026-08-06 17:35:54 -
Seoul housing forum warns tax overhaul could worsen rental shortage SEOUL, August 06 (AJP) - The first public debate over the Lee Jae Myung administration's proposed property tax overhaul quickly laid bare tenants' biggest fear: being forced from their homes as landlords reclaim properties or sell them to qualify for lower taxes. At a livestreamed forum hosted by the Seoul Metropolitan Government on Thursday, tenants, homeowners, real estate agents and housing experts warned that stronger tax incentives for owner occupancy could further tighten Seoul's already strained rental market by reducing the supply of jeonse and monthly rental homes. "Paying rent and maintenance fees every month is already a considerable burden," said Kim Min-jung, who secured a rental home shortly before starting her first job in Seoul in June. "I'm also worried that stronger owner-occupancy requirements could mean I have to leave even the home that was already so difficult to find." Kim said tighter eligibility rules for jeonse loans and dwindling rental supply had already pushed many young tenants away from Korea's traditional lump-sum deposit rental system and into more expensive monthly leases. Park Jun, who has operated a real estate agency in Seoul's Songpa District for 21 years, said the decline in rental listings had already accelerated after the capital was designated a land transaction permit zone. Under current rules, buyers must occupy newly purchased homes for at least two years after completing the purchase. The proposed tax overhaul, he said, would give landlords another incentive to reclaim homes that had previously been rented out. "Jeonse and monthly rental listings have already plunged as landlords move back into their properties," Park said. He warned that the pressure could intensify once major reconstruction projects such as Eunma Apartments and Jamsil Jugong Complex 5 begin relocating residents. "Between 15,000 and 17,000 people could be looking for homes at the same time," he said. "That could trigger a serious jeonse shortage. Urgent measures are needed." Housing experts argued the proposal risked treating symptoms rather than the underlying causes of soaring home prices. Kim Ji-yeop, a professor of architecture at Sungkyunkwan University, likened the government's approach to Don Quixote attacking windmills. "The government's housing policy reminds me of Don Quixote fighting windmills," Kim said. "The enemy is somewhere else, but the government is fighting the windmills." Rather than relying on higher property taxes to cool prices, he said, policymakers should encourage private-sector housing supply, ease regulations and support a wider range of housing options. Other participants questioned whether the overhaul was designed primarily to stabilize home prices, raise tax revenue or redistribute wealth. Some described the proposed increases in holding and capital gains taxes as punitive, particularly for elderly homeowners, long-term owners and people unable to occupy their homes because of work or family obligations. The proposed revision would raise annual comprehensive real estate holding taxes on owners of high-value and multiple homes, gradually increase rates on tax bases exceeding 600 million won ($432,000), and reduce long-term capital gains tax deductions by placing greater emphasis on how long owners have actually lived in a property. Critics argue those incentives would encourage landlords to withdraw rental housing from the market. Seoul Mayor Oh Se-hoon said comments describing the proposed tax increases as a form of "state violence" had resonated with him. He warned that penalizing owners who do not live in their homes could encourage them to sell properties, move into them or pull them from the rental market altogether, reducing rental supply and ultimately hurting the very tenants the policy is intended to protect. AJP Takeaways • South Korea's proposed housing tax overhaul is triggering fears of a tighter rental market, with tenants warning that stronger owner-occupancy incentives could encourage landlords to reclaim homes or sell properties. • The first public debate in Seoul shifted attention from tax fairness to tenant displacement, highlighting concerns over shrinking supplies of jeonse and monthly rental housing. • Housing experts argue higher property taxes alone will not stabilize home prices, calling instead for greater private-sector housing supply and regulatory reform. • Seoul Mayor Oh Se-hoon warned the tax changes could backfire, reducing rental listings and hurting tenants despite the government's aim of cooling the housing market. 2026-08-06 17:23:00 -
T'way Air begins new chapter as Trinity Airways SEOUL, August 06 (AJP) - T’way Air has rebranded as Trinity Airways, unveiling a new service model, brand identity and employee uniforms as it seeks to position itself as a global carrier. The airline presented the changes at a brand launch and uniform runway event in Seoul on Aug. 6, its first official event since changing its corporate name. Cabin crew, pilots and other employees modeled the new uniforms during the event. Trinity Airways introduced “Relaxed and Reliable” as its new brand mission, saying it aims to provide a comfortable travel experience built on safety and trust. The carrier also plans to use the hotel and resort network of its parent, Sono Trinity Group, to connect flights, accommodation and other travel services. The airline will overhaul its meal service by the end of this year, expanding it beyond existing long-haul routes to medium-haul destinations such as Jakarta and Singapore. Long-haul passengers will receive two meals on one-way flights, while medium-haul passengers will receive one. Business-class service will add salads, fruit, bread, wine and beer, while economy meals will include improved salad and beverage options. The new uniforms feature “Trinity Gray” as the main color with rose-gold accents. They are made with stretch fabric to improve comfort and mobility, while pilots will receive cardigans for the first time to accommodate temperature changes during long-haul flights. “This rebranding is not simply about changing our name, but about creating new reasons for customers to choose Trinity Airways,” a company official said. “We will focus on the services customers value most and grow into a global airline by combining aviation with hospitality.” 2026-08-06 17:12:02