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  • Weather Forecast: Heat Wave and Tropical Nights Persist with Feels-Like Temperatures Around 35 Degrees
    Weather Forecast: Heat Wave and Tropical Nights Persist with Feels-Like Temperatures Around 35 Degrees On Thursday, August 6, much of the country will continue to experience heat and tropical nights.For the time being, the maximum feels-like temperature across various regions is expected to rise around 35 degrees, indicating a hot spell.In particular, the metropolitan area and parts of Jeolla Province, where a heat wave warning has been issued, are forecasted to see temperatures exceed 39 degrees (with feels-like temperatures above 38 degrees), necessitating health precautions.Jeju Island may experience rain until noon.The expected rainfall and temperatures for Jeju are between 5 and 20 mm and 27 to 33 degrees, respectively.Morning low temperatures are predicted to range from 21 to 27 degrees, while daytime highs are expected to be between 30 and 38 degrees.Wave heights in the sea are forecasted to be 0.5 to 1.5 meters in the East and South Seas, and 0.5 meters in the West Sea.In the offshore waters (approximately 200 km from the coastline), wave heights are expected to be 0.5 to 1.5 meters in the East Sea, 0.5 to 2.0 meters in the West Sea, and 0.5 to 3.5 meters in the South Sea.Regionally, Seoul is expected to see temperatures between 27 and 38 degrees, Incheon between 26 and 36 degrees, and Suwon between 26 and 36 degrees, all under clear skies. In Gangwon Province, Chuncheon is forecasted to be 24 to 37 degrees, while Gangneung will range from 23 to 31 degrees, also clear. In the Chungcheong region, Cheongju (26 to 35 degrees), Daejeon (25 to 37 degrees), and Sejong (25 to 37 degrees) will all experience sunny weather. In the Honam region, Jeonju (26 to 38 degrees) and Gwangju (26 to 36 degrees) are expected to be mostly clear. In the Yeongnam region, Daegu will see temperatures between 26 and 36 degrees, while Busan (26 to 33 degrees), Ulsan (25 to 33 degrees), and Changwon (26 to 34 degrees) will also enjoy clear conditions.* This article has been translated by AI. 2026-08-05 18:16:00
  • Pro Sports Face Challenges Amid Record Heat Wave
    Pro Sports Face Challenges Amid Record Heat Wave A record heat wave has gripped the Korean Peninsula, prompting urgent measures in professional sports. With temperatures feeling like 104 degrees Fahrenheit, major outdoor sports such as baseball, soccer, and golf are implementing strict safety protocols to protect players and fans.The KBO League has been hit hardest by the summer heat. The Korea Baseball Organization (KBO) held an emergency meeting on the morning of August 5 and canceled all KBO and Futures League games scheduled for August 5 and 6. This marks the first time in KBO history that league games have been suspended for two consecutive days due to extreme heat.This decision follows a concerning incident the previous day at Incheon’s SSG Landers Field, where 25 cases of suspected heat-related illnesses were reported during a single game between the LG Twins and SSG Landers. A male spectator in his 20s lost consciousness during the eighth inning and required CPR and an automated external defibrillator (AED) before regaining consciousness and being transported to a hospital.With this suspension, the total number of KBO League games canceled this season due to the heat has risen to 15. The KBO plans to hold an emergency executive committee meeting on August 6 with the ten club presidents and representatives from the players' association to establish comprehensive safety measures related to the heat.In the K League, there have been no game cancellations due to the heat so far, but various measures are in place to prevent heat-related illnesses among players. The Korea Professional Football League announced on August 5 that the start times for all K League 1 (first division) Round 22 matches (five games) and K League 2 (second division) Round 21 matches (eight games) have been pushed back from 7:30 PM to 8 PM. This adjustment aims to ensure the safety of players, fans, and staff.Additionally, the league has implemented a 'cooling break' during matches when temperatures exceed 32 degrees Celsius (89.6 degrees Fahrenheit) from late May to early September, allowing for hydration breaks of 90 seconds to three minutes at the end of each half. To further mitigate heat, the league will conduct watering operations on the field four times during matches.The league is also focusing on safety management by applying heat regulations to decisions regarding game cancellations or delays due to inclement weather. All matches during the summer will feature safety campaign videos related to heat on the stadium's electronic boards to protect fans.Professional golf, which requires players to spend extended periods outdoors, is also taking precautions against the heat. The KLPGA Tour has established guidelines that issue a 'warning' if the maximum perceived temperature is expected to exceed 33 degrees Celsius (91.4 degrees Fahrenheit) for two consecutive days, and a 'warning' if it exceeds 35 degrees Celsius (95 degrees Fahrenheit).During tournaments, the KLPGA continuously informs spectators about heat illness prevention measures via electronic boards and has set up shaded areas, water stations, and cooling devices throughout the course. There are also regulations allowing for the cancellation of events in the event of disasters such as extreme heat.Both the men's and women's professional golf tours are taking breaks during the hottest months of summer. The KLPGA Tour completed its first-half schedule in mid-July and took a break of over two weeks before resuming on July 30. The KPGA Tour also finished its first half at the end of June and will resume the season on August 20 after a month and a half summer break, prioritizing player safety amid the heat. 2026-08-05 18:12:00
  • Excavators return as Guryong Village redevelopment moves forward
    Excavators return as Guryong Village redevelopment moves forward SEOUL, August 05 (AJP) - Even in the early morning, temperatures hovered well above 30 degrees Celsius in tropical humidity — conditions ill-suited to bulldozing work, let alone human protest. Still, an excavator moved methodically through piles of soil, pipes, twisted metal and torn blue tarpaulins inside Guryong Village, the last surviving shantytown in affluent Gangnam, southern Seoul, on Tuesday. Behind corrugated metal fencing, workers in hard hats continued dismantling what remains of the settlement. Only about 10 residents remain after Seoul authorities finalized the demolition schedule. They watched quietly as the machinery advanced, largely beyond public attention to what will become of their homes, livelihoods or safety. AJP returned to Guryong Village as Seoul pressed ahead with another milestone in a decades-long effort to redevelop what the city describes as the capital's last remaining shantytown. On July 21, Seoul's third public housing integrated review committee conditionally approved plans for the M and B2 blocks of the Gaepo Guryong Village Public Housing Construction Project. The plans call for 2,120 homes across the two blocks, including 758 integrated public rental units, 1,342 long-term lease homes under Seoul's Mirinae housing program and 20 public-sale units. Block M would contain 300 homes in buildings of up to 15 stories, while Block B2 would include 1,820 homes in towers reaching 28 stories. Seoul plans to seek final approval for the housing construction plan in the second half of 2026, begin construction in 2027 and complete the project in 2031. The city said the plans could still change during subsequent approval procedures. For city officials, the redevelopment promises safer housing and thousands of new public homes in one of Seoul's most expensive districts. For those still refusing to leave, however, the new apartment plans do little to answer more immediate questions about compensation, relocation and whether they will ever be allowed to return. Compensation before relocation Among the remaining residents was Bae, who has become a spokesman for households displaced by repeated fires in the village. "The first thing we are asking for is not a right to move into the new development or a rental unit," Bae told AJP. "It is for our property to be properly recognized and compensated." Bae said many dwellings had been classified as temporary structures rather than homes despite having concrete foundations, boilers, support posts, windows and kitchens. He pointed to numbered doorplates, running water and years of tax payments as evidence that families had lived there as ordinary residences for decades. AJP has not independently reviewed the official classification or appraisal documents. Bae said compensation offered to some fire-affected households amounted to only several million won, although payments differ depending on each household's legal and occupancy status. Temporary accommodation, he said, would not resolve the larger question of whether displaced residents would ever return once redevelopment is completed. "Being offered temporary rental housing is not the end of the issue," he said. "There still has to be an agreement on how people can return after construction." He fears only a small number of today's residents will ultimately qualify to move back unless clearer resettlement guarantees are reached before demolition is completed. Seoul's redevelopment plan says the project will include integrated public rental housing for existing residents, but it does not specify how disputed households will be classified, how individual compensation will be calculated or what each family would have to pay to return. Machinery with a history For residents, the arrival of excavators carries memories extending well beyond the current demolition. On Feb. 6, 2015, the Gangnam District Office began demolishing a temporary structure used as the village residents' hall after saying its permit had expired and citing safety concerns. Residents resisted, arguing the building served as the community's only gathering place. The Seoul Administrative Court later ordered the demolition suspended, but not before much of the structure had already been destroyed. The legal circumstances surrounding the current demolition differ from those of 2015. Yet the earlier confrontation helps explain why heavy machinery is viewed inside Guryong Village not merely as construction equipment but as a symbol that another chapter of the settlement is disappearing. This time there were no clashes. Only a handful of residents stood watching as excavators moved through rubble behind metal fencing. Public attention has largely moved on even as those still living in the village say they remain uncertain about where they will go—or whether they will ever come back. Seoul plans to finalize the housing construction plan later this year before breaking ground in 2027. For the city, the project marks another step toward replacing Gangnam's last shantytown with more than 2,000 new public homes. For Bae, redevelopment is measured differently. He said authorities offered him 5 million won (about $3,500) to move out quietly, —an amount that can hardly cover the deposit for a modest public rental apartment, much less allow him to begin again. Behind him, another excavator pushed through what had once been a row of homes. "I have nowhere to go," Bae said. 2026-08-05 18:10:37
  • Supreme Court to Review Han Duck-soo and Lee Sang-mins Insurrection Cases
    Supreme Court to Review Han Duck-soo and Lee Sang-min's Insurrection Cases Former Prime Minister Han Duck-soo and former Minister of the Interior and Safety Lee Sang-min, who are facing charges related to their involvement in the December 3 emergency martial law, will have their cases reviewed by the Supreme Court's full bench.On August 5, the Supreme Court announced, "The cases of former Prime Minister Han and former Minister Lee are of significant public interest and require historical judicial evaluation. Since the defendants are in a complicit relationship, they need to be tried together," adding that the cases will be reviewed by the full bench at the request of the respective divisions.Previously, Han's case was being handled by Division 2 (Chief Justice Oh Kyung-mi), while Lee's case was under Division 3 (Chief Justice Lee Heung-gu). However, due to the referral to the full bench, both cases will now be evaluated by all justices, excluding the Chief Justice of the Court Administration.Earlier, the defense teams for both Han and Lee submitted a request for the full bench review, stating that a unified interpretation of the law regarding insurrection is necessary. They emphasized that the issues in both cases overlap, necessitating a consistent understanding of the facts and legal principles, and that this could set a precedent for the ongoing appeal of former President Yoon Suk-yeol's insurrection case.Typically, cases are decided by a panel of four justices, but if a case involves significant public interest or requires historical judicial evaluation, it may be referred to the full bench. However, it remains uncertain whether the sentencing will occur in a lower court after the full bench review.The Supreme Court's referral raises questions about how it will assess the legal nature of the emergency martial law and the actions of the cabinet members at that time. The Seoul High Court is currently reviewing the appeal of former President Yoon's insurrection case, and this decision could significantly influence that case.The Supreme Court's full bench has previously addressed cases related to the insurrection involving Chun Doo-hwan's military coup and Lee Seok-ki's insurrection conspiracy and incitement.Han Duck-soo was indicted for allegedly suggesting a cabinet meeting to create the appearance that the declaration of emergency martial law on December 3, 2024, was made after cabinet deliberation, and for attempting to obtain signatures from cabinet members after the declaration. He was sentenced to 23 years in prison in the first trial, but his sentence was reduced to 15 years on appeal.Lee Sang-min is accused of receiving orders from former President Yoon to block access to the National Assembly and other key institutions, as well as instructing the Fire Chief to take "appropriate measures." He was sentenced to seven years in the first trial, which was increased to nine years in the second trial.With the cases now referred to the full bench, the special prosecution law stipulates that the third trial must be concluded within three months of the second trial's sentencing date, making it likely that this deadline will not be met. The deadlines for the two cases are set for August 7 and August 12, respectively. However, it is noted that this is essentially a guideline, and there are no penalties for failing to meet it.Meanwhile, the Supreme Court also referred the appeal regarding Kim Geon-hee's involvement in the Deutsche Motors stock manipulation case to the full bench for review on July 23.* This article has been translated by AI. 2026-08-05 18:08:10
  • POSCO Labor Union Extends Negotiation Period for Collective Bargaining
    POSCO Labor Union Extends Negotiation Period for Collective Bargaining The POSCO Labor Union has agreed to extend the negotiation period following a recommendation from the Central Labor Relations Commission, allowing for continued dialogue with management. However, this extension is intended to give the company time to present a responsible final proposal. If there is no progress in the final adjustment meeting, the union plans to initiate legal dispute procedures.On August 5, the Korea Metal Workers' Union, representing the POSCO Labor Union, announced that during the second adjustment meeting for the 2026 collective bargaining held at the Central Labor Relations Commission, they decided to extend the negotiation period based on the commission's recommendation. Consequently, both parties will engage in focused negotiations during the extended period, culminating in a final adjustment meeting scheduled for August 18 at 2 PM.If a decision to halt negotiations is made at that time, the POSCO union will secure the right to strike.Kim Sung-ho, chairman of the POSCO union, stated, "The company must present a responsible final proposal befitting the nation's top steelmaker. We will fulfill our responsibility for dialogue until the end, but if the decisions of our members are ignored again, we will take action according to legal procedures."Meanwhile, both parties continue to have differing views regarding compensation levels in this year's wage negotiations. The union is demanding substantial improvements in treatment and compensation commensurate with performance, while the company argues that it must consider the downturn in the global steel market and declining profitability.* This article has been translated by AI. 2026-08-05 18:08:10
  • Samsung and SK Hynix Diverge in Next-Gen Memory Strategies
    Samsung and SK Hynix Diverge in Next-Gen Memory Strategies Samsung Electronics and SK Hynix are charting different paths in the next-generation memory market following high bandwidth memory (HBM). Samsung is pursuing a 'custom-tailored' strategy by directly stacking memory on customer artificial intelligence (AI) chips, while SK Hynix is focusing on establishing a 'shared standard' that multiple customers can utilize.On August 5, the semiconductor industry reported that both companies unveiled their next-generation AI memory technologies at the 'FMS 2026' event in Santa Clara, California. Their technological directions for capturing market leadership post-HBM have become distinctly different.Samsung's leading technology is zHBM. Unlike traditional HBM, which is placed beside AI accelerators, zHBM stacks memory vertically on top of the AI accelerator. This reduces the distance between the processor and memory, increasing data transfer speeds and reducing power consumption.Samsung claims that zHBM can deliver up to eight times the performance of HBM5. It also boasts a power-to-performance ratio that is three times higher and can reduce thermal resistance by more than half. As AI models grow larger, data transfer bottlenecks become more pronounced, and Samsung's solution is to bring memory closer to the processor.Custom design is also a key aspect. Samsung explained that it can incorporate customer-specific intellectual property (IP) into the interlayer between the memory and AI accelerator. This means the structure can be adjusted to meet the desired memory capacity, accelerator performance, and power conditions of the customer.In NAND technology, Samsung emphasized its 3D strategy, unveiling the 10th generation V-NAND, known as V10 BV-NAND, which has over 400 layers. By applying wafer bonding technology, it has increased density by approximately 58% compared to the previous generation. The company also introduced zNAND-O for on-device AI.In contrast, SK Hynix is focusing on standardization. Together with SanDisk, it unveiled the first standard specification for high bandwidth flash (HBF). HBF is a next-generation storage technology that, like HBM, allows for rapid data transfer while increasing capacity based on NAND.HBF serves as a new layer between HBM and solid-state drives (SSDs). As AI inference becomes more widespread, data will accumulate more frequently. Relying solely on HBM would create capacity burdens, while SSDs alone would lack speed. SK Hynix aims to fill this gap with HBF.The new specification is based on a maximum capacity of 512GB, with bandwidth divided into three tiers ranging from approximately 0.4TB to 3.0TB per second. It adopts the open chiplet interface UCIe for connections with processors, allowing for compatibility with various chips, including GPUs and CPUs.SK Hynix also introduced its 10th generation 375-layer 4D NAND at FMS, which offers 2.5 times the power-to-performance ratio compared to the previous generation. The company plans to begin mass production of high-performance, high-capacity eSSDs based on this technology early next year.A semiconductor industry insider noted, 'The post-HBM competition is a battle over who can dominate the AI system architecture rather than just product specifications. Samsung targets optimization for individual customers, while SK Hynix aims for an open ecosystem to address AI memory bottlenecks.' 2026-08-05 18:04:20
  • Samsung and SK Hynix Secure Renewable Energy Supply for Yongin Fab
    Samsung and SK Hynix Secure Renewable Energy Supply for Yongin Fab Samsung Electronics and SK Hynix have made progress in securing a 'carbon-neutral power grid,' which has been a significant hurdle in the global AI chip procurement race. With major tech companies pushing for RE100 (100% renewable energy usage), the government is moving towards national legislation, alleviating uncertainties surrounding renewable energy procurement for the Yongin semiconductor cluster.According to the government and industry sources on August 5, the Yongin semiconductor cluster, a key production base for Samsung and SK Hynix, is expected to benefit indirectly from the establishment of the 'RE100 Industrial Complex Special Law' aimed for this year. This law will elevate the energy self-sufficiency principle, allowing the Yongin fab to significantly increase its access to green power from external sources as the area is developed into a large-scale renewable energy supply hub.The Ministry of Trade, Industry and Energy announced plans for the new RE100 Industrial Complex Special Law during its second-half work report. The proposal includes designating regions with enhanced renewable energy self-sufficiency, such as the southwestern area, as 'RE100 special zones' to foster a renewable energy ecosystem and connect it to the national power grid. The plan aims to significantly ease regulations on direct power purchase agreements (PPAs) while expanding transmission infrastructure to create a nationwide eco-friendly power supply system.Previously, the Yongin semiconductor cluster faced challenges in securing renewable energy due to difficulties in land acquisition in the metropolitan area, a lack of transmission networks to bring in power from regions like Honam, and excessive PPA fees.With the special law, discussions on revising the cost structure for network usage fees and additional costs related to direct power purchase agreements (PPAs) are expected to gain momentum, allowing the Yongin fab to benefit from reduced power procurement costs. Notably, if the construction of the West Coast High Voltage Direct Current (HVDC) transmission network is expedited in conjunction with the RE100 special zone designation, it could accelerate the flow of large-scale offshore wind and solar power, previously constrained by transmission capacity issues, into the Yongin semiconductor lines with minimal power loss.Samsung and SK Hynix are closely monitoring the detailed implementation plans of this policy. There is a growing concern that even if they produce world-class semiconductors through next-generation high-bandwidth memory (HBM) or advanced process nodes, they could lose supply opportunities if they fail to meet carbon neutrality requirements. For instance, Apple has mandated carbon neutrality across its entire supply chain by 2030, while Microsoft and Google have set similar expectations for their partners to achieve 100% carbon-free and renewable energy usage by around 2030.Global competitors have already secured large-scale long-term power purchase agreements (PPAs) or rapidly increased their share of green power procurement, particularly in overseas operations. TSMC has signed a 20-year long-term PPA with Denmark's Ørsted to exclusively receive 920 megawatts (MW) of offshore wind power, demonstrating aggressive moves to secure green energy. Micron is also pursuing large-scale long-term PPAs to achieve RE100 in its U.S. operations and has been signing long-term green power purchase agreements in Taiwan and Southeast Asia.As uncertainties surrounding renewable energy procurement for the Yongin fab diminish, industry attention is focused on the potential impact on K-semiconductors' global carbon neutrality efforts.An industry insider stated, "If the RE100 special zone is established, the connection between the power grid and transmission infrastructure will be smoother, allowing not only designated cities but also national strategic industrial complexes like Yongin to somewhat mitigate energy risks. This will provide a foundation for meeting the carbon neutrality guidelines of global clients."* This article has been translated by AI. 2026-08-05 18:04:20
  • Impact of Falling Exchange Rates on Industries: Airlines and Batteries Benefit, Auto Sector Struggles
    Impact of Falling Exchange Rates on Industries: Airlines and Batteries Benefit, Auto Sector Struggles As exchange rates and international oil prices have recently declined, the industrial sector is experiencing mixed reactions. While the aviation, battery, and steel industries anticipate reduced operational costs and raw material expenses, the export-dependent automotive sector is concerned about declining profitability due to the diminishing effects of the exchange rate.According to industry sources, airlines are smiling for the first time in a while. With jet fuel prices, which account for about 30% of airline operating costs, stabilizing and the won-dollar exchange rate falling, operational burdens are expected to ease significantly.Airlines primarily settle major costs such as fuel, aircraft leasing, and maintenance in dollars, so a lower exchange rate enhances cost-saving effects. Additionally, as the exchange rate drops, the purchasing power of domestic travelers going abroad increases, raising expectations for improved passenger load factors.An airline official stated, "We faced a challenging period in May and June, to the point of entering emergency management, but the business environment has noticeably improved recently. We plan to enhance profitability by launching various promotions to match peak season demand."According to the Ministry of Land, Infrastructure and Transport, the average price of Singapore jet fuel (MOPS) used to calculate international fuel surcharges for August was $119.06 per barrel from June 16 to July 15, a decrease of $23.30 from the previous month. Consequently, the applicable stages for international fuel surcharges dropped to 14 stages, down from 33 stages in May. The exchange rate, which soared to the 1,560 won range in June, has now fallen to 1,424.50 won.The battery and steel industries are also welcoming the stabilization of the exchange rate. Given that they import most of their key raw materials in dollars, a lower exchange rate can lead to cost reductions. With the majority of raw materials imported, a stronger won is expected to further alleviate procurement burdens for the battery and steel sectors.According to the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIS), the price of lithium carbonate as of the fifth week of July was $20,772 per ton, down 0.9% from the previous week. Iron ore prices also stabilized at $97.07, a 1.7% decrease from the previous week. With the strengthening of the won, the procurement burdens for the battery and steel industries are likely to ease further.In contrast, the domestic automotive industry, which is highly reliant on exports, is facing profitability challenges due to the declining exchange rate. Automakers typically receive most of their overseas sales revenue in dollars, so when the value of the won rises, the conversion of dollar sales into won results in decreased revenue and operating profit.As the U.S. automotive tariff burden and global competition continue to intensify this year, a further weakening of the exchange rate's favorable effects could complicate profitability defense. Indeed, Hyundai Motor and Kia reported second-quarter operating profits of 2.85 trillion won and 2.63 trillion won, respectively, down 20.8% and 4.9% from the same period last year.An automotive industry official noted, "As automakers have a high export ratio, a rising won tends to lower profitability during the conversion of overseas sales revenue into won. However, the current exchange rate is within the expected range reflected in this year's business plan, so we believe we can defend profitability through product mix improvements and cost efficiencies." 2026-08-05 18:04:10
  • Samsung Electro-Mechanics Doubles Q2 Capital Investment Amid AI Demand
    Samsung Electro-Mechanics Doubles Q2 Capital Investment Amid AI Demand Samsung Electro-Mechanics is accelerating its production capacity for multilayer ceramic capacitors (MLCC) in response to increased investment in artificial intelligence (AI) infrastructure. The company is aggressively expanding its capital expenditure (CAPEX) due to a surge in demand for high-value MLCCs used in AI servers and data centers.According to Samsung Electro-Mechanics' financial performance report released on August 5, the company's capital investment for the second quarter reached 606.6 billion won, a 122.2% increase from 273.0 billion won during the same period last year. This figure also more than doubled compared to the first quarter's 263.3 billion won, marking the largest quarterly investment to date.This investment expansion is seen as a proactive measure to meet the rapidly growing demand for MLCCs, particularly for AI servers and data centers. MLCCs are essential passive components that stabilize current supply and eliminate unnecessary electrical signals (noise) in nearly all electronic devices, from smartphones to automobiles and servers. AI servers, in particular, require a significantly higher number of high-capacity and high-voltage MLCCs, making them a key beneficiary of the expanding AI infrastructure.The company is also broadening its revenue base by securing multiple long-term supply agreements (LTA). It has signed long-term contracts with over 10 clients, including global hyperscalers, and is in discussions for additional agreements. These long-term contracts often involve advance payments or guaranteed volumes, providing a foundation for proactive expansion of production facilities.Based on this, Samsung Electro-Mechanics is accelerating the expansion of its domestic and international production bases. Investments are underway to increase production capacity at key locations, including its Sejong facility, as well as in Vietnam and the Philippines. Recently, the company has expedited the operational timeline for its new MLCC factory in the Philippines to prepare for the supply of ultra-high-capacity MLCCs for AI accelerators.The company is also increasing its investment in package substrates. In line with the growing supply of flip-chip ball grid array (FC-BGA) for AI accelerators, it is enhancing production capacity both domestically and internationally while simultaneously developing next-generation packaging and high-spec substrate technologies. Previously, the company announced an 8 trillion won investment to establish a new semiconductor package substrate production line for AI servers at its Sejong facility.With recent price increases contributing to growth, the company anticipates a strong performance in the second half of the year. As the supply shortage of high-value MLCCs for AI infrastructure intensifies, it has raised prices for some MLCC products by up to 30% starting this month. The simultaneous increase in the proportion of AI server products and average selling prices (ASP) is expected to enhance profitability. The company has indicated that it expects to achieve record performance in the third quarter due to the anticipated worsening supply shortages of MLCCs and FC-BGAs.* This article has been translated by AI. 2026-08-05 18:04:10
  • Samsung Faces Mixed Impact from Currency Fluctuations Amid Semiconductor Demand
    Samsung Faces Mixed Impact from Currency Fluctuations Amid Semiconductor Demand Samsung Electronics is experiencing varied financial impacts across its business divisions due to the recent decline in the won-dollar exchange rate. While demand and price increases for memory used in artificial intelligence (AI) servers are offsetting currency losses in the semiconductor sector, the mobile and TV & home appliance divisions are facing potential revenue declines.As of recent reports, the won-dollar exchange rate is trading between 1,420 and 1,430 won. Although the easing of high exchange rate pressures has raised expectations for reduced costs across the industry, Samsung anticipates differing effects on its various business segments.In the semiconductor division, the drop in exchange rates is not entirely welcome, as it reduces the won-denominated profits from dollar sales. A Samsung representative noted, "In the first quarter, the rise in major currency exchange rates, including the dollar, had a positive effect on overall operating profit." However, the more direct influence on semiconductor performance comes from market conditions rather than exchange rates. In the second quarter, Samsung's semiconductor division reported an operating profit of 89.2 trillion won, driven by strong demand for server DRAM and enterprise SSDs due to increased investment in AI data centers, along with a rise in shipments of high-value products like high-bandwidth memory (HBM).Looking ahead to the second half of the year, forecasts suggest that demand and pricing in the semiconductor sector will largely offset the burdens of currency fluctuations. KB Securities predicts that memory prices will rise by at least 30% in the third quarter, with long-term supply contracts from AI server clients helping to stabilize prices.In contrast, the mobile division is struggling. Samsung's mobile business reported an operating loss of 700 billion won in the second quarter, largely due to soaring memory prices increasing smartphone production costs. While the decline in exchange rates may lower some import component costs, it also reduces the won-denominated value of overseas sales.The TV and home appliance sectors are similarly feeling the strain. Rising costs for panels, memory, logistics, and tariffs complicate profitability, and the drop in the won-dollar exchange rate poses an additional threat to revenue. Even though a stronger won may lower raw material and some component procurement costs, it does not alleviate the challenges of slowing sales and promotional expenses.Concerns about revenue contraction in the finished products (DX) division are expected to persist in the second half of the year due to the exchange rate decline. Improving the product mix is seen as crucial. The mobile division needs to expand sales of flagship and foldable models, while the TV and home appliance sectors must increase the share of premium products and AI-integrated appliances to improve performance.Kim Dong-won, head of research at KB Securities, recently stated in a report, "The memory supply shortage is expected to worsen until 2028," and projected that memory prices will rise by at least 30% in the third quarter.* This article has been translated by AI. 2026-08-05 18:04:10