AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • Trump: Agreement with Iran on Hormuz Strait Possible Within 48 Hours
    Trump: Agreement with Iran on Hormuz Strait Possible Within 48 Hours President Donald Trump stated that negotiations with Iran regarding the reopening of the Hormuz Strait are progressing smoothly, and a decision could be reached within 48 hours. Although direct talks between the U.S. and Iran have not occurred, mediators from Qatar, Oman, and Pakistan are facilitating discussions and sharing proposals, increasing the likelihood of a short-term agreement.On August 4, during a press conference in Los Angeles, Trump remarked, "The negotiations are going very well," adding, "We will know within 48 hours." In a prior interview with Fox News, he claimed that Iran is eager for an agreement to resolve tensions that escalated following U.S. and Israeli airstrikes on Iran on February 28. He emphasized, "What matters is action. Iran wants an agreement, and we will see what happens next."Trump also warned that military action could follow if negotiations fail. He stated, "The Strait will be opened very soon; otherwise, Iran will face a strong attack, and ultimately, the Strait will be opened."U.S. officials have echoed the potential for an early resolution regarding the Hormuz Strait negotiations. Treasury Secretary Scott Vance mentioned in an interview with CNBC, "We are negotiating with Iran," and indicated that an agreement could be reached as soon as today or tomorrow. He expressed confidence that free passage would be guaranteed, despite concerns about Iran imposing tolls on vessels.Secretary of State Marco Rubio also spoke to reporters at the State Department, noting, "There has been progress in negotiations, but we have not yet reached a final agreement," and expressed hope for a resolution soon.Rubio explained that the U.S. is involved in negotiations between Oman and Iran, aimed at ensuring more vessels can safely transit in the short term. In this context, Axios reported, citing regional and U.S. officials, that the U.S., Iran, and Oman are nearing a temporary agreement to reopen the Hormuz Strait, with an announcement expected as early as August 5.The proposed agreement includes provisions for Iran and Oman to guarantee safe passage for vessels transiting the Strait for 60 days, without imposing additional tolls, and considering an extension if necessary. Discussions are also underway to separate shipping lanes based on vessel direction, with ships entering the Persian Gulf using the northern route and those exiting using the southern route through Omani waters.Uncertainty Surrounds Direct U.S.-Iran NegotiationsHowever, Qatar, acting as a mediator, clarified that the U.S. and Iran have not yet engaged in direct negotiations. Majid Al-Ansari, a spokesperson for the Qatari Foreign Ministry, stated in Doha that no schedule for direct talks has been set, and mediators are conveying opinions and proposals to both sides.Al-Ansari noted that Qatar, along with Oman and Pakistan, is mediating between Washington and Tehran, emphasizing that the entire region is cooperating to avoid further escalation and find solutions. He added, "Our current focus is on preventing escalation, reopening the Hormuz Strait, and restoring diplomatic channels between the parties. The ongoing efforts on the ground are at a significantly advanced stage."The mediators are relaying potential agreement language and proposals to both the U.S. and Iran. Al-Ansari confirmed that while a finalized agreement has not been prepared, "language for a possible agreement has been drafted and is being circulated among the parties."According to Qatari sources, Iran has denied claims of negotiating with the U.S. and stated it is discussing the passage issue with Oman. Iranian Foreign Ministry spokesperson Esmail Baghaei told state-run IRIB that discussions are ongoing between the two coastal nations, focusing on establishing safe routes for vessels. He assessed that the talks have yielded positive results on both technical and political levels.Additionally, a source from the Islamic Revolutionary Guard Corps (IRGC) affiliated media, Sepah News, cited an anonymous official stating that the main reasons for delays in discussions with Oman regarding the Hormuz Strait are U.S. interference and Trump's threats. The official remarked, "As long as U.S. interference and military threats against Iran continue, agreements will be delayed," adding, "Iran will not reach any agreement under the shadow of threats."Last month, the U.S. and Iran attempted to finalize a memorandum of understanding to reopen the Hormuz Strait, but the agreement fell through. Since then, both sides have intermittently exchanged military strikes, further restricting vessel operations in the Strait.* This article has been translated by AI. 2026-08-05 15:28:00
  • AI Summit Seoul & Expo 2026 returns this month
    AI Summit Seoul & Expo 2026 returns this month SEOUL, August 05 (AJP) - South Korea's largest AI-focused exhibition and conference will return to Seoul later this month with a larger show floor and a sharper focus on how companies are putting artificial intelligence to work across industries, COEX said Wednesday. AI Summit Seoul & Expo 2026, or AISE 2026, will run from Aug. 19 to 21 at COEX in Samseong-dong, southern Seoul, jointly organized by COEX, DMK Global and the Korea International Trade Association (KITA). The exhibition will be held in COEX Hall B, while the accompanying conference will take place in the Grand Ballroom. This year's show floor will host 125 companies across 300 booths, a 150 percent increase from last year, according to the organizers. Exhibitors will present AI solutions spanning manufacturing, logistics, finance, health care, customer experience and workplace productivity, alongside infrastructure for developing and operating generative AI systems. The lineup reflects the industry's shift from generative AI to agentic AI and physical AI, or AI built into robots and other machines. Global participants include Seagate, Adobe, Oracle, HP and Genspark, alongside Korean AI companies. A hands-on "EX-Zone" will allow visitors to try AI technologies directly. Companies including shotAi and AI Taekwondo will offer demonstrations such as sports-motion analysis and AI-based taekwondo poomsae experiences. A separate humanoid robot zone will feature AgiBot, RealMan Robotics and Pudu Robotics. The conference will run alongside the expo on Aug. 19 and 20. KAIST professor Kim Dae-sik will speak on the shift "from AI to AGI" and how AI agents could reshape work and industry. Jack Chua, CEO of Valent Health and a former Meta executive, will discuss building startups in the AI era. Kim Jung-kyun, a director at Seagate Technology, will address the future of ultra-high-capacity storage beyond AI computing. On the final day, Korea Startup Forum will host a startup pitching session, while KITA will run an investor-relations pitching day. Other side programs include AI business-matching sessions and workshops on applying AI in the workplace. The expo will run from 10 a.m. to 6 p.m. from Aug. 19 to 20 and close at 4 p.m. (0700 GMT) on Aug. 21. AJP Takeaway: AI Summit Seoul & Expo 2026 will take place at COEX in southern Seoul from Aug. 19 to 21, bringing together 125 companies across 300 booths, a 150 percent increase from last year. The event will focus on industrial applications of generative AI, agentic AI and physical AI across manufacturing, logistics, finance, health care, customer service and workplace productivity. Global technology companies including Seagate, Adobe, Oracle, HP and Genspark will participate alongside Korean AI firms, while dedicated zones will feature humanoid robots and hands-on AI demonstrations. The accompanying conference on Aug. 19 and 20 will include sessions on artificial general intelligence, AI startups, workplace transformation and ultra-high-capacity data storage, with speakers from KAIST, Valent Health and Seagate Technology. Startup pitching, investor-relations sessions, business matching and workplace AI workshops will position AISE 2026 as both a technology showcase and a platform for commercial partnerships and investment. 2026-08-05 15:27:30
  • Chijijik: The Key to Securing Content Competitiveness After the World Cup
    Chijijik: The Key to Securing Content Competitiveness After the World Cup Naver's streaming platform, Chijijik, saw a surge in users during the 2026 FIFA World Cup, but has since returned to normal levels. The ability to retain users gained during the tournament through competitive content will be crucial for future growth.According to Mobile Index, Chijijik's daily active users (DAU) soared to a peak of 2,596,614 during the World Cup. From mid-June to mid-July, the average DAU was around 1.5 million, a significant increase compared to usual figures.However, following the conclusion of the tournament, the average DAU dropped to approximately 1.1 million from late July to early August, similar to the average of 1.02 to 1.12 million recorded in the first quarter of this year. This suggests that the World Cup effect was short-lived.Nonetheless, the World Cup's impact is not entirely gone. The DAU at the end of July was about 20% higher than the average of around 930,000 in July of last year, indicating that some users who experienced the service during the World Cup have remained, thus expanding the user base.Naver's experience in reliably broadcasting large-scale sports events has also become an asset. During the World Cup, Chijijik operated without server disruptions, even accommodating over 5 million simultaneous connections by enhancing its server infrastructure to handle high traffic.Naver is accelerating its content diversification efforts, with esports taking center stage. Chijijik is exclusively live-streaming all events of the global esports competition, the Esports World Cup (EWC), which began in July, attracting a cumulative audience of 16.84 million from July 1 to 19.The platform is also expanding its live performance content. The live broadcast of the '2026 World DJ Festival' garnered approximately 4.3 million views over two days, while the '2026 Songkran Music Festival' recorded around 8 million views over the same period, demonstrating strong user interest in music performances.Looking ahead, Naver plans to continue securing live content, including summer music festivals, year-end award ceremonies, and entertainment IP-based programming, aiming to broaden its platform beyond reliance on sports events.However, challenges remain. Many users on the App Store and Google Play have reported issues with buffering and playback quality. Some have also expressed discomfort with the banner-centric user interface (UI) and the repetitive ads encountered when switching between streamer channels. 2026-08-05 15:24:10
  • Japan to Tighten Permanent Residency Requirements for Foreigners
    Japan to Tighten Permanent Residency Requirements for Foreigners Japan is set to significantly tighten the requirements for foreigners seeking permanent residency. Applicants and their families must have a combined income exceeding the average for Japanese households, and expected pension benefits must reach the level of those who have contributed to the Employees' Pension Insurance for 30 years. The special application provisions for foreigners married to Japanese citizens or permanent residents will also be reduced. New criteria will be established to revoke residency status for those who intentionally fail to pay taxes or social insurance premiums.According to the Yomiuri Shimbun, the Immigration Services Agency of Japan released a draft revision to the residency approval requirements on August 4. After a public consultation period, the income requirements will take effect in October, while the other revisions are set to be implemented in April 2024.This reform is part of the Takaiichi administration's policy to raise barriers for foreigners regarding residency and access to social security systems. The Japanese government outlined its intention to review welfare eligibility and permanent residency requirements in a comprehensive foreign policy plan established in January.Under the proposed changes, to qualify for permanent residency, a household's income must exceed that of the average Japanese household of similar size. This requirement must be maintained consistently, not just temporarily. Income will be calculated based on the entire family unit, including those living abroad if they contribute to the applicant's livelihood.While specific criteria for determining average household income have yet to be established, it is expected that data from the Ministry of Internal Affairs and Communications' household surveys will be utilized. Last year, the average annual income for a two-person household in Japan was approximately 5.79 million yen (about $52,300), while a three-person household earned around 7.03 million yen (about $63,500).Future pension amounts will also be subject to scrutiny. Expected pension benefits must exceed the level received by individuals who have contributed to the Employees' Pension Insurance for 30 years. This measure comes in response to a growing number of cases where permanent residents have received welfare benefits after obtaining residency. Welfare in Japan is a public assistance program designed to support individuals facing financial difficulties.Opposition to Foreign Welfare SupportThe Asahi Shimbun reported that there is public opposition to providing welfare benefits to foreigners, which has influenced this reform. Efforts to strictly manage tax and social insurance payment compliance among foreigners began under the Ishiba administration and have accelerated under Takaiichi. Kim Onoda, the first Minister in charge of foreign policy, has been a leading advocate for these changes. Before taking office in 2021, he expressed on X (formerly Twitter) his stance for the abolition of welfare for foreigners, stating that "foreigners who cannot be self-sufficient should return to their home countries, and welfare is the responsibility of their country of nationality." According to government officials, Onoda has emphasized preventing foreigners from exploiting loopholes in the system to receive benefits.The Japanese government maintains that foreigners are not eligible for welfare under the law. However, humanitarian assistance is provided to special permanent residents and recognized refugees based on a 1954 notification from the former Ministry of Health and Welfare.In 2024, approximately 2.008 million individuals in Japan received welfare benefits, with around 65,000 of them being foreign heads of households, accounting for 3.24% of the total. This figure includes those whose spouses or children are Japanese citizens. However, the Japanese government does not comprehensively track welfare recipients by residency status. This will become possible after the introduction of the My Number system in June next year. A sample survey was conducted prior to this revision for this reason. The survey indicated an overall welfare recipient rate of 1.62%, with permanent residents at 1.96%.The Japanese government views the higher welfare recipient rate among approved permanent residents as problematic. As of the end of last year, approximately 4.125 million foreigners resided in Japan, with around 947,000 holding permanent residency, the largest group among residency statuses. This number has been increasing by more than 25,000 annually. A senior official from the Immigration Services Agency stated, "A significant decrease in new permanent residency approvals is expected."The special application provisions for spouses of Japanese citizens or permanent residents will also be reduced. Currently, applicants must generally have lived in Japan for at least 10 years, but spouses could apply after three years of marriage and one year of residency. According to the Nikkei, the new requirements will increase this to five years of marriage and three years of residency.New criteria for revoking residency status will also be established. Permanent residency may be revoked for intentionally failing to pay income tax, residence tax, or social insurance premiums. In the assessment of new residency applications, violations of laws or a lack of understanding of Japanese systems will be viewed unfavorably. The requirement that granting permanent residency must "actively and concretely align with Japan's national interests" will also be codified. The criteria for revocation and national interest requirements will take effect in April 2024.Critics have raised concerns about these changes. An activist supporting foreign residents in Osaka told the Asahi Shimbun, "Many jobs held by foreigners often pay lower wages, and there are many Japanese workers earning below-average incomes as well. I question the rationality of this system." The Asahi reported the case of a Filipino woman who has lived in Japan for over ten years and works as a full-time caregiver after divorcing a Japanese citizen. She intended to apply before the significant increase in residency application fees but found her annual income fell short of the new requirements at under 4 million yen. The activist expressed concern that these changes would not only discourage those already living in Japan but also deter potential workers from coming to Japan, negatively impacting the economy.* This article has been translated by AI. 2026-08-05 15:24:00
  • Global Smartphone Revenue Hits Record High Despite Declining Shipments
    Global Smartphone Revenue Hits Record High Despite Declining Shipments Global smartphone revenue reached an all-time high in the second quarter, driven by an increase in average selling prices (ASP) despite a decline in shipments. As smartphone manufacturers raise prices due to soaring memory costs in the AI era, the market is rapidly shifting from a focus on volume competition to value competition.Apple and Samsung continued their growth by expanding sales of premium products and maintaining cost competitiveness, while Chinese manufacturers, which rely heavily on mid-range products, faced the dual challenges of rising costs and declining demand.According to market research firm Counterpoint Research, global smartphone revenue in the second quarter of this year increased by 7% year-on-year to $109 billion, setting a record for the second quarter. Although shipments decreased during the same period, the ASP rose by 17% to $400, driving revenue growth. The ASP also reached its highest level for the second quarter.The market structure is changing rapidly. Analysts note that while expanding shipments used to be the key to growth, the focus has now shifted to increasing the share of premium products and raising prices. Ongoing memory supply shortages and rising component prices due to increased demand for AI servers have led smartphone manufacturers to reflect these cost pressures in their product pricing.“The global smartphone market has entered a phase where value growth is the key driver rather than shipment growth,” said Silpi Jain, a senior analyst at Counterpoint Research. “As the entry-level market shrinks and cost pressures increase, manufacturers are focusing on selling premium products and expanding the share of high-capacity models.” She added that installment and trade-in programs are enhancing access to premium products in emerging markets.Apple emerged as the biggest beneficiary, achieving a record revenue share of 49% in the second quarter. Its revenue increased by 22% year-on-year, with shipments and ASP rising by 13% and 8%, respectively.Strong sales of the iPhone 17 series drove these results, particularly the base model and the iPhone 17 Pro Max, which exceeded expectations, maintaining a sales structure centered on premium products. Unlike competitors who significantly raised prices due to rising memory costs, Apple successfully expanded its market share while keeping prices stable for its key models.Tarun Pathak, research director at Counterpoint Research, noted, “Apple was relatively less affected by memory supply issues and absorbed cost increases internally, maintaining its price competitiveness. Its performance was particularly strong in China, Europe, and emerging markets, and the price increases by Android manufacturers further highlighted its relative competitiveness.”Samsung also maintained a stable growth trajectory, ranking second with a 16% revenue share. Its revenue and shipments both increased by 9%, while the ASP remained stable compared to the previous year. Strong sales of the Galaxy A series drove shipment growth, and the success of the Galaxy S26 series supported premium product performance. The company also recorded double-digit growth in the Middle East, Africa, and North America, contributing to its improved performance.Notably, Samsung effectively absorbed the impact of rising costs due to its vertically integrated structure, which allows it to source key components like semiconductors and displays in-house. By selectively adjusting prices for certain product lines, it maintained a stable ASP while securing both shipment growth and profitability.In contrast, Chinese manufacturers faced declining performance due to cost pressures. Xiaomi experienced the largest drop in shipments among the top five brands, with a 26% decrease in shipments and a 17% decline in revenue, although its ASP rose by 13%. However, due to its high reliance on entry-level and mid-range products, it bore the brunt of rising memory costs, and the price increases led to a drop in demand, preventing the ASP increase from offsetting the decline in shipments.Oppo and Vivo faced similar challenges. Both companies saw their ASP rise by 9% and 13%, respectively, but their revenues fell by 10% and 11%. Vivo recorded the highest ASP increase among major players, but its significant market share in price-sensitive segments could not prevent a decline in sales. Industry observers note that both companies are focusing on restructuring their product portfolios toward premium offerings to improve profitability.This trend is expected to continue in the second half of the year. With ongoing memory supply shortages and rising component prices likely to persist, smartphone manufacturers are expected to continue raising prices and focusing on premium strategies. As supply constraints become a more significant factor than demand in the market, the decline in smartphone shipments may widen in the coming months, and the ASP is expected to continue its upward trend.* This article has been translated by AI. 2026-08-05 15:20:00
  • Government Considers Additional Greenbelt Releases Amid Housing Supply Delays
    Government Considers Additional Greenbelt Releases Amid Housing Supply Delays The South Korean government is revisiting the possibility of releasing portions of the greenbelt to expand housing supply. This comes as the major third new towns, which also involved significant greenbelt releases, have faced delays due to compensation, transportation plans, and permitting issues. Experts argue that accelerating existing projects should take precedence over additional releases.According to government and parliamentary sources, Deputy Prime Minister and Minister of Economy Koo Yun-cheol mentioned on August 3 the potential for partial greenbelt releases and the utilization of military facilities as part of housing supply expansion measures. Minister of Land, Infrastructure and Transport Kim Yun-deok also stated during a national real estate policy forum on July 27 that the government would consider partial greenbelt releases if necessary to supply housing.Discussions regarding this issue are ongoing within the government. The Ministry of Land has commissioned a study on regulatory improvements aimed at optimizing land use, including greenbelt areas, to better fit local conditions. Additionally, a bill has been proposed in the National Assembly to simplify the procedures for releasing greenbelt areas during the development of metropolitan area railway stations.The mention of greenbelt releases as a potential solution arises from the limited options for securing large-scale new housing sites in Seoul and the surrounding metropolitan area. Redevelopment and reconstruction projects are lengthy, and the government has been cautious about fully relaxing regulations due to concerns over supply gaps from the demolition of existing homes and rising housing prices.However, releasing greenbelt land does not guarantee immediate housing supply. Major third new towns, including Wangsuk in Namyangju, Gyosan in Hanam, Changneung in Goyang, Daejang in Bucheon, and Gyeyang in Incheon, have secured a foundation for approximately 193,000 housing units through greenbelt utilization, but they have encountered delays due to land compensation, resident consultations, transportation plans, and environmental impact assessments.The Gwangmyeong and Siheung projects exemplify the long-term nature of these developments. Designated as housing districts in 2010, the projects stalled, leading to the cancellation of their designation in 2015. They were reinitiated as public housing districts in 2021, with land compensation procedures only beginning in earnest this year. Incheon Gyeyang was the first among the third new towns to start its initial applications, but the first occupancy is not expected until the second half of this year.As a result, industry experts emphasize that speeding up existing public housing projects should be prioritized over additional greenbelt releases. While greenbelt areas can provide large-scale housing sites, they also face challenges such as environmental degradation, resident opposition, compensation issues, and lengthy project timelines.Conversely, some argue that strategic utilization of the greenbelt is essential for securing long-term housing supply. With available land in the metropolitan area decreasing, selective use of areas with high levels of degradation, as well as military facilities, railway sites, idle public land, and high-density development around transit stations, should be pursued alongside other supply methods.Kim Hyo-sun, a senior real estate expert at KB Kookmin Bank, stated, "Before considering additional releases, it is necessary to examine the causes of delays in existing projects, especially in light of the third new town cases. The greenbelt serves as a green corridor in the metropolitan area and a space for future generations, so it is crucial to consider climate change responses, connections with existing urban areas, and securing public interests in the process." 2026-08-05 15:20:00
  • Hyundai Department Store Reports 8.7% Drop in Q2 Operating Profit Despite Record Sales in Department Store Sector
    Hyundai Department Store Reports 8.7% Drop in Q2 Operating Profit Despite Record Sales in Department Store Sector Hyundai Department Store's consolidated operating profit for the second quarter decreased due to poor performance from its subsidiary, Zinus, which specializes in furniture and mattresses. However, the core business segments of department stores and duty-free shops reported strong results, bolstered by an increase in foreign tourists. On August 5, Hyundai Department Store announced that its consolidated operating profit for the second quarter was 79.3 billion won, an 8.7% decrease compared to the same period last year. Revenue fell by 1.1% to 1.0681 trillion won, while net profit rose by 11.6% to 60.8 billion won. Despite the overall decline in consolidated results, the department store sector achieved its highest performance ever. The department store's second-quarter net sales reached 643.8 billion won, a 9.1% increase from the previous year, marking the highest quarterly sales on record. Operating profit also surged by 58.6% to 110.1 billion won. For the first half of the year, net sales reached 1.2764 trillion won, an 8.3% increase, while operating profit rose by 47.7% to 246 billion won. Sales across key product categories, including luxury goods, watches, jewelry, and fashion, saw steady growth, driven by spending from foreign tourists. The company noted that foreign customers expanded their purchases to include not only high-end international brands but also domestic fashion and beauty products. In the first half of this year, foreign sales at The Hyundai Seoul increased by 134% compared to the same period last year, while the Trade Center store saw a 131% rise. Foreign customers now account for about 20% of total sales at these two locations. The nationalities of foreign customers visiting The Hyundai Seoul have also diversified. Initially dominated by tourists from China, Japan, and the United States, the customer base has recently expanded to include visitors from the United Arab Emirates and Kazakhstan. Approximately 180 countries have been represented among the store's clientele. A Hyundai Department Store official stated, "The spending by foreign customers is continuously expanding across all product categories, including overseas luxury brands as well as domestic fashion and beauty brands, and we expect this growth trend to continue in the second half of the year." The duty-free shop also continued its trend of improved performance. Hyundai Duty Free's second-quarter net sales reached 310.4 billion won, a 5.8% increase from the previous year. Operating profit turned around from a loss of 1.3 billion won in the second quarter of last year to a profit of 6.2 billion won this year, marking four consecutive quarters of profitability since the third quarter of last year. For the first half of the year, the duty-free shop's operating profit was 9.6 billion won, a turnaround from a loss of 3.2 billion won during the same period last year. The opening of the DF2 area at Incheon Airport in April, which expanded the product range from luxury goods and fashion to include cosmetics and alcohol, contributed to this improvement. A Hyundai Duty Free official commented, "The increase in foreign tourists and the new opening of the DF2 area at Incheon Airport have allowed us to achieve profitability in both the second quarter and the first half of the year, marking four consecutive quarters of profit since last year's third quarter. We expect the scale of profitability to continue to expand based on stable growth at the airport store and improved profitability at the downtown store." In contrast, Zinus faced challenges due to a slowdown in consumer spending in its primary market, the United States, and a decrease in orders from clients. The second-quarter net sales fell by 35.7% to 147.5 billion won, resulting in an operating loss of 26.7 billion won. A Hyundai Department Store official stated, "The decline in sales and operating profit was due to reduced demand for mattresses from clients as a result of weakened consumer spending in the U.S. However, client orders are gradually normalizing, and we are seeing an increase in new original design manufacturing (ODM) contracts."* This article has been translated by AI. 2026-08-05 15:16:20
  • Small Business Association Files Lawsuit Against Minimum Wage Increase
    Small Business Association Files Lawsuit Against Minimum Wage Increase The Small Business Association has initiated a legal challenge against the government's decision to set the minimum wage for 2027 at 10,700 won per hour, after the government rejected their request for a review.On August 5, the association announced that it had filed a lawsuit at the Seoul Administrative Court seeking to annul the minimum wage set by the Ministry of Employment and Labor on July 16.This marks the second time the association has taken legal action since the minimum wage saw a record increase of 16.4% in 2018. The plaintiffs criticized the recent decision for ignoring the financial capabilities of small business owners and for excluding differentiated application by industry, which they argue constitutes a significant abuse of discretion.Prior to filing the lawsuit, the association held a press conference in front of the Seoul Administrative Court in Yangjae-dong, condemning the Ministry of Employment and Labor's rejection of their appeal against the 2027 minimum wage, which was submitted on July 27.During the conference, the association urged the National Assembly and the government to implement comprehensive support measures for small businesses, including the abolition of the weekly holiday pay, biennial minimum wage determinations, and the revival of job stability funds.The plaintiffs plan to pursue a constitutional review alongside the administrative lawsuit.Meanwhile, on the same day, the Ministry of Employment and Labor confirmed the minimum wage for 2027 at 10,700 won per hour, an increase of 380 won (3.7%) from the current minimum wage of 10,320 won per hour.Song Chi-young, president of the Small Business Association, stated in a press release, "We filed a legitimate objection to the uniform increase proposed by the Minimum Wage Commission, but the Ministry of Employment and Labor mechanically dismissed it, ignoring the cries from the field. We strongly condemn the irresponsible desk-bound administration of the Ministry, especially in light of the record high number of 624,000 business closures in the first half of this year, the highest ever recorded for a half-year period."* This article has been translated by AI. 2026-08-05 15:16:10
  • Ruling Party Faces Internal Dissent Over Governments Stock Price Protection Plan
    Ruling Party Faces Internal Dissent Over Government's Stock Price Protection Plan The Democratic Party is expressing internal dissent regarding the government's tax reform plan aimed at preventing stock price manipulation, arguing that the proposed measures lack effectiveness. Meanwhile, the People Power Party continues its criticism of the government's tax reform proposal.On August 5, Democratic Party lawmaker Lee Hoon-ki held a press conference at the National Assembly to call for a comprehensive review of the Ministry of Finance's stock price protection law. He stated, "It is difficult to view this as an effective measure to prevent stock price manipulation." The stock price protection law aims to correct the practice of major shareholders keeping stock prices low to reduce tax burdens ahead of management succession.Lee urged the Ministry of Finance to move away from a selective post-review approach and to base taxation on the actual value of companies rather than their past stock prices or rankings within their industry. He called for a complete re-evaluation of the tax reform plan that presents criteria for avoiding stock price manipulation.He explained that his proposed legislation clarifies evaluation criteria in law and includes provisions for exceptions for companies in financial distress, adding safeguards against circumvention through subsidiaries. The bill includes measures such as: clarifying the evaluation floor as 'net asset value under tax law'; recognizing exceptions for genuinely distressed companies; gradual application to listed subsidiaries; abolishing the 20% premium evaluation for both listed and unlisted companies; and allowing major shareholders to pay taxes with listed stocks.Lee also noted that he is continuing the legislative intent of Democratic Party lawmaker Lee So-young, who was the first to propose the stock price protection law in the National Assembly, stating that taxation should be based on the objective value of companies while addressing excessive burdens and liquidity issues for taxpayers.On the previous day, Lee So-young criticized the Ministry of Finance's proposal, stating, "This government plan not only treats the National Assembly like fools but also betrays President Lee Jae-myung's sincere work directives."Earlier, the Ministry of Finance announced that it would estimate stocks of companies suspected of stock price manipulation based on criteria such as being in the bottom 25% (KOSPI) or 10% (KOSDAQ) of the price-to-book ratio (PBR) over 12 half-year periods, or if there have been actions negatively impacting company value, such as repeated listings or convertible bond issuances, or if the market value has dropped by more than 30% over the past three years.Meanwhile, the People Power Party continued its offensive regarding the tax reform plan. Spokesperson Park Chung-kwon criticized the proposal, stating, "The tax obsession that drove the entire nation into a real estate hell during the Moon Jae-in administration has resurfaced in an even harsher form under this government." He specifically called for an immediate halt to what he described as a sadistic tax experiment that exploits the suffering of the people and urged a complete review of punitive tax measures threatening the housing stability of ordinary citizens. 2026-08-05 15:16:00
  • Homeplus Secures $1.5 Billion in Emergency Funding, Reopening 67 Stores
    Homeplus Secures $1.5 Billion in Emergency Funding, Reopening 67 Stores Homeplus has secured 200 billion won (approximately $1.5 billion) in emergency funding and plans to gradually reopen starting August 7.The company announced on August 5 that the Seoul Bankruptcy Court approved a DIP loan of 200 billion won from Meritz Financial Group. Homeplus expects the funds to be available later today.Previously, on July 3, the Seoul Bankruptcy Court decided to terminate Homeplus's restructuring process due to insufficient operating funds. In response, Homeplus entered into a DIP loan agreement with Meritz Financial Group and filed an immediate appeal with the court.With a funding solution in place, the court reversed its decision to terminate the restructuring process and extended the deadline for the approval of the restructuring plan to September 4.As soon as the funds are received, Homeplus will finalize discussions with key partners, including suppliers and delivery companies, to resume operations at the 67 temporarily closed stores. The company plans to begin a soft opening on August 7, followed by operational checks and adjustments until August 12, with a formal opening scheduled for August 13.Homeplus has also conducted a workforce assessment for the reopening. On August 3, the company held meetings with employees at each store to confirm the return intentions of those on leave.However, many indirect employees responsible for parking, cart management, and cleaning have reportedly left during the closure, raising the possibility that existing staff may need to take on some of these responsibilities. 2026-08-05 15:16:00