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  • 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
  • WHO Warns Against Fan Use in Extreme Heat, Sparking Online Debate
    WHO Warns Against Fan Use in Extreme Heat, Sparking Online Debate As record-breaking heat continues with temperatures hovering around 104 degrees Fahrenheit, the World Health Organization (WHO) has warned that using fans in high-temperature environments can actually increase the body's heat burden. Fans, typically seen as a go-to cooling device in summer, can circulate hot air when temperatures exceed a certain threshold.Recently, WHO advised in its report on 'Heat and Health' that fans should only be used when the surrounding air temperature is below 104 degrees Fahrenheit. Using a fan in conditions where the air temperature exceeds this limit can transfer hot air to the body, hindering the cooling process and potentially raising body temperature.The 104-degree threshold refers to the air temperature in the indoor or surrounding environment where the fan is operating, not the human body temperature. If the outdoor temperature reaches 104 degrees, using air conditioning to sufficiently cool indoor spaces can make using a fan beneficial for lowering perceived temperature.WHO's principles for coping with extreme heat include four main strategies: 'Avoiding the heat,' 'Keeping homes cool,' 'Cooling the body and staying hydrated,' and 'Protecting infants and children.'According to Yonhap News, it is advisable to avoid outdoor activities or strenuous physical exertion during the hottest parts of the day. If going outside is unavoidable, individuals should seek shade rather than direct sunlight. WHO explains that the temperature felt by a person in direct sunlight can be 10 to 15 degrees higher than the officially recorded temperature. Spending at least 2 to 3 hours in air-conditioned public facilities or cooling spaces is recommended, and caution should be exercised to avoid drowning when swimming alone.During the day, it is best to use windows and blinds to block direct sunlight from entering homes and to open windows at night when outside temperatures drop.Minimizing the use of electrical appliances is also advised, and fans should only be used when temperatures are below 104 degrees. At temperatures above this, fans can actually raise body temperature.Taking direct actions to lower body temperature is crucial. WHO recommends wearing loose, lightweight clothing, taking cool showers or baths, and using damp cloths or sprays to cool the skin.Regular hydration is essential. WHO advises drinking a cup of water every hour and consuming at least 2 to 3 liters of fluids daily.WHO emphasizes that children and pets should never be left alone in parked vehicles. The internal temperature of a parked car can rise rapidly, making it imperative to keep children and pets safe from direct sunlight during peak heat hours.Covering strollers with dry cloths should be avoided, as this can raise internal temperatures. Instead, using a thin, damp cloth and rewetting it as needed is recommended. A portable fan can enhance the cooling effect.According to the Korea Disease Control and Prevention Agency, from May 15 to August 3 of this year, there have been a total of 2,221 reported cases of heat-related illnesses, with 19 fatalities. The agency advises that symptoms such as headaches, dizziness, muscle cramps, fatigue, and altered consciousness should raise suspicion of heat-related illness. In response, some internet users expressed concerns, saying, 'I thought the hotter it gets, the stronger the fan should be,' and 'I'm worried about my parents who only use a fan without air conditioning,' while others noted, 'I need to check the indoor thermometer first.'Concerns about electricity bills and cooling disparities have also been raised. Users commented, 'What should those without air conditioning or in small rooms do if they turn off the fan?' and 'Instead of just emphasizing personal guidelines, we need to extend the operating hours of cooling centers,' and 'If extreme heat is a disaster, we should also discuss support for cooling costs for vulnerable populations.'On the other hand, some expressed that sensational headlines could create confusion. 'Just because the outdoor temperature is 104 degrees doesn't mean all homes should turn off their fans,' and 'Using a fan after lowering indoor temperatures with air conditioning is helpful,' were among the responses. Others noted, 'The warning that fans are dangerous should be clarified to mean not to rely solely on fans.'Particularly, some users pointed out that 'seeing only the statement that fans are dangerous at temperatures above 104 degrees could lead to abruptly turning off fans during a heatwave,' emphasizing the need to explain the context of usage, indoor temperature, humidity, and cooling methods.Ultimately, the core of the warning that 'fans become dangerous above 104 degrees' is not to instill fear of fans themselves. It serves as a reminder that in extreme heat, even familiar cooling methods may be ineffective, and a combination of strategies such as moving to cooler spaces, staying hydrated, and directly cooling the body should be employed.* This article has been translated by AI. 2026-08-05 15:12:10
  • Hyundai Steel Reaches Tentative Labor Agreement, Averting Strike Risk
    Hyundai Steel Reaches Tentative Labor Agreement, Averting Strike Risk Hyundai Steel has finalized its wage and collective bargaining agreement for the year. It is the first case among major affiliates of Hyundai Motor Group to have a tentative agreement approved by union members this year.According to industry sources, the Hyundai Steel labor union conducted a vote on the tentative agreement from 6 a.m. on August 3 until 3 p.m. on August 5. The counting took place at the Hyundai Steel branch in Chungnam.A total of 7,179 members participated in the vote. The results showed 4,064 votes in favor (56.61%) and 3,115 votes against (43.39%), leading to the approval of the tentative agreement. The agreement includes an 80,000 won increase in base salary, a performance bonus of 300% plus 5 million won, and a 300,000 won gift certificate.The union has previously requested that the company fulfill its commitments regarding investments in new facilities and address issues related to the withdrawal of wage lawsuits and employee promotions.The management expressed that reaching consensus between labor and management will help overcome the management crisis in the second half of the year and stated its commitment to continuously consider and improve employee morale.On August 3, Hyundai Steel reported disappointing earnings. For the second quarter of this year, the company recorded consolidated sales of 6.1073 trillion won and an operating profit of 577 billion won. While sales increased by 2.7% compared to the same period last year, operating profit fell by 43.3%. This decline is attributed to rising raw material costs, high exchange rates, and weak demand for rebar due to a downturn in the domestic construction market.There has been notable discontent regarding the tentative agreement. Some labor groups criticized the agreement as a 'hasty settlement,' pointing out that while Hyundai Steel's operating profit for 2025 is projected to increase by 37.4% compared to the previous year, the proposed performance bonus remains largely unchanged from last year. The projected operating profit for Hyundai Steel in 2025 is 219.2 billion won, a 37.4% increase from 2024.The labor and management have shown differences over wage increases and the size of performance bonuses during this year's negotiations. The union had secured legal dispute rights following a decision by the Central Labor Relations Commission to halt mediation and conducted a member vote.However, with the passage of the tentative agreement in the member vote, concerns about production disruptions have been alleviated. The labor and management's negotiations for this year will be finalized through subsequent procedures, including a signing ceremony. 2026-08-05 15:12:10
  • Do Real Estate Gains Face Lower Taxes Than Labor Income?
    Do Real Estate Gains Face Lower Taxes Than Labor Income? The real estate market is difficult to navigate. President Lee Jae-myung stated during a Cabinet meeting on August 4 that while labor income exceeding 1 billion won is taxed at a maximum rate of 49.5%, including local income tax, capital gains from real estate, even at 10 billion won, result in only a few million won in actual taxes. He noted that while it may be reasonable to reduce taxes on a primary residence that has appreciated in value, it is inequitable for investors who earn tens of billions from real estate to pay minimal taxes. The public perception is straightforward: earning 10 billion won through labor results in nearly half being paid in taxes, while earning the same amount through real estate incurs only a few million in taxes. This creates an impression that the tax system favors income from real estate over labor. In conclusion, this may apply to specific high-value long-term primary residences. However, it does not mean that anyone earning 10 billion won from investment properties pays only a few million in taxes. The President's comparison placed different properties and tax rates side by side. How have the numbers changed? A similar calculation to the President's figures was presented in March by the Citizens' Coalition for Economic Justice. They analyzed that if a person buys an apartment in Apgujeong for 250 million won and sells it for 1.27 billion won, the capital gain would be 1.02 billion won, but the estimated capital gains tax, excluding additional costs, would be about 760 million won, with local income tax assessed separately. In a separate case, they calculated that if a person earned 4.25 billion won in labor income over 15 years, the income tax would be about 1.2 billion won, while the capital gains tax on the same amount of apartment gains would be 240 million won. The Citizens' Coalition's example of 1.02 billion won assumes that a one-household, one-home owner has held and lived in the property for over 10 years, qualifying for a maximum 80% long-term holding exemption. The labor income comparison also assumed an annual income of 280 million won over 15 years. However, the headline prominently featured the high-value case of "1.02 billion won in gains with a capital gains tax of 760 million won." At the time, Jo Jeong-hun, the head of the Land and Housing Committee of the Citizens' Coalition, raised concerns during a national discussion on real estate policy hosted by the President, stating that the benefits for primary homeowners encourage concentration in the apartment market and suggested the need for reduction. He used strong language to describe the purchase of real estate, including primary residences, as "almost all speculation." While his comments targeted tax benefits for single-homeowners, they blurred the line between primary residences and investment properties. A more direct connection comes from Nam Gi-up, head of the Land + Freedom Research Institute. During the same discussion, he claimed that if a person realizes a capital gain of 1 billion won from a home held for 10 years, the average capital gains tax would be about 10 million won, while the tax on 1 billion won in labor income over 10 years would be 250 million won. The President immediately responded that he had previously followed Nam's claims during his time as a private citizen and as mayor of Seongnam. At the very least, the President confirmed that he referenced Nam's taxation claims in the past. However, this does not imply that he took the specific figure of "10 billion won" from Nam. Nam explained that the capital gains tax of 10 million won corresponds to an effective tax rate of 1%. However, it is difficult to verify the specific acquisition price and transfer conditions that led to this figure based solely on public statements. The calculation of 250 million won in tax on 1 billion won in labor income also lacks details on the annual distribution of income and deduction conditions. If these figures are from an expert influencing policy, the effective tax rate and the underlying tax calculation should be explained as well. The Citizens' Coalition's figure of 760 million won reflects the application of the one-household, one-home exemption and the maximum 80% long-term holding exemption. For high-value single homes, only the portion of the gain exceeding 1.2 billion won is taxable, while the portion below that is exempt. The comparison units are also not the same. The 49.5% labor income tax is the maximum marginal tax rate, including local income tax, while the 760 million won figure reflects the estimated tax amount after accounting for exemptions and deductions. However, it is also difficult to argue that this difference inflates the tax burden on labor income. The actual burden rate on labor income in the 10 billion won range also approaches the maximum tax rate. The key issue is not the form of the tax rate. The tax amount accumulated over 10 years for a long-term primary residence is presented as if it were the same as the tax on general investment properties. Is there a capital gains tax on stocks? If equity and asset income equity is the issue, real estate cannot be viewed in isolation. Shareholders of publicly traded companies who are not major shareholders under tax law do not pay capital gains tax on their gains. Under the current system, if an investor diversifies across multiple publicly traded stocks and does not meet the major shareholder criteria for each stock, it is possible to have a total capital gain of 10 billion won without incurring capital gains tax. Of course, there are taxes involved. A securities transaction tax applies to the sale price. This does not mean that the President should not mention real estate. However, to advocate for equity between labor and asset income, one cannot conclude solely based on real estate. Equity raises questions about the boundaries of exemptions. The exemptions and deductions granted to long-term primary residences serve the purpose of housing stability and facilitating smooth residential transitions. Similarly, excluding capital gains from publicly traded stocks for shareholders who are not major shareholders is justified by the policy goal of revitalizing the capital market. It cannot be immediately concluded that treating them differently from labor income is an unfair advantage. The issue lies not in the existence of exemptions and non-taxation but in their boundaries. Should the maximum 80% deduction apply without a cap to gains exceeding 1 billion won for the sake of protecting primary residences? Should the same principle apply to exclude high-value stock gains from taxation for the sake of revitalizing the capital market? These questions must be examined under the same principles. The President should be asking not why only a few million are collected from a 10 billion won real estate gain, but whether tax benefits with justifications for housing protection and capital market revitalization should apply equally to high-value asset gains. Does a 10 billion won capital gain from real estate always incur less tax than 10 billion won in labor income? No. This outcome is only possible when the special case of a high-value long-term primary residence applies; it does not reflect the tax situation for general investment properties. The President's concern about re-evaluating the boundaries of tax benefits for high-value asset gains is valid. However, his explanation presented the tax amount from a long-term primary residence as if it were applicable to investment properties. This approach does not lead to finding an answer to equity. Tax equity is not about matching the most dramatic numbers. It involves verifying whose income it is, under what conditions it was generated, and how far exemptions and non-taxation should be allowed for each asset under the same principles.* This article has been translated by AI. 2026-08-05 15:12:00
  • Timefolios Kim Nam-Ui: AI Investment is Just Beginning, Active ETFs are Chameleons
    Timefolio's Kim Nam-Ui: AI Investment is Just Beginning, Active ETFs are Chameleons Recent fluctuations in the domestic stock market (KOSPI) have been attributed to concerns over an artificial intelligence (AI) bubble. Amid fears that the AI boom is overvalued compared to its revenue-generating potential, semiconductor stocks have seen significant declines. Many investors are left wondering, 'Is the AI boom over?'Kim Nam-Ui, head of the ETF strategy division at Timefolio Asset Management, addressed this question in an interview with Aju Economy on August 4. He stated, "If you ask whether the AI boom is over, my answer is the opposite. It is not over; it is just beginning."Throughout the interview, Kim emphasized the importance of focusing on long-term trends rather than short-term market fads. He defined active ETFs as "the most passive investment." In times of high volatility, he suggested that investors should pay attention to active ETFs, which allow experts to adjust portfolios according to market changes while investors can concentrate on their daily lives. He likened active ETFs to chameleons that change color based on market conditions.AI Investment is Just Beginning; Active ETFs are ChameleonsKim predicted that AI will continue to be a key driver in the market for the second half of the year. However, he stressed that merely focusing on the semiconductor industry would not suffice to keep up with market changes.He explained, "The AI industry encompasses various sectors, including semiconductors, power, data centers, telecommunications, and optical communications. Market interest constantly shifts, so it is crucial to understand the trends within these specific industries."He added, "Memory semiconductors may gain attention, but at any moment, companies related to optical communications or data centers could become the market's focus. It is not easy for average investors to keep up with all these trends."This is why Kim believes the role of active ETFs is vital. Experts can adjust investment proportions according to market conditions, allowing investors to manage their assets from a long-term perspective.Kim stated, "Active ETFs are indeed the most passive investment. Investors should focus on their daily lives while asset managers respond to changing market environments."Young Investors Need a Philosophy in a Time When Salaries Can't Buy HomesHe noted that the investment culture in South Korea has significantly changed since the COVID-19 pandemic. In the past, individual stock picking was the norm, but now a culture of diversified investment using ETFs has taken hold.Kim remarked, "As the pension market grows and investment experience accumulates, investors' expectations have also risen. With the emergence of various products like bond funds, monthly dividends, and covered calls, the range of investment options has expanded."The rise of automated dollar-cost averaging services through mobile trading systems (MTS) has also contributed to the growth of the ETF market.He shared his thoughts on young investors, stating, "The current generation finds it challenging to buy homes solely on their salaries. It is natural for them to consider investing as a means of asset formation."However, he cautioned against excessive focus on specific stocks and leveraged products. He emphasized, "The key is to establish a personal investment philosophy and view the market from a long-term perspective."Timefolio's Differentiation Lies in a System, Not a Single ManagerKim identified Timefolio's greatest competitive advantage as its hedge fund-based management capabilities. Rather than relying on a single manager, the firm has established a multi-manager system where multiple experts collaborate on investment decisions.He stated, "Relying on one person's judgment can be risky. We minimize risks through a system where experts from various fields discuss and validate decisions together."Kim also expressed disappointment with the domestic ETF market, noting that the repetitive launch of similar products has diminished market diversity. He asserted, "Each asset management company must develop its unique characteristics and competitiveness for the market to grow healthily, and investor education and regulatory improvements must also be pursued."Regarding the market outlook for the second half of the year, he maintained a cautious stance. He advised, "Now is not the time to make drastic changes to portfolios. It is essential to maintain a balance between growth and defensive stocks while observing the market calmly." 2026-08-05 15:08:00
  • Baek In-kyu, Leader of Anti-Feminist Group, Found Dead at 36
    Baek In-kyu, Leader of Anti-Feminist Group, Found Dead at 36 Baek In-kyu, the leader of the anti-feminist group New Men's Alliance, has died at the age of 36.According to police, Baek was found dead around 8 a.m. in an apartment on Yeongjong Island in Incheon. He was reportedly living with his girlfriend, and no suicide note was discovered at the scene.Authorities currently see no signs of foul play and are investigating the exact circumstances surrounding his death.Baek led the New Men's Alliance, which advocates for men's rights and opposes feminism, and was active in YouTube broadcasts and rallies. He participated in protests against the impeachment of former President Yoon Suk-yeol.He was also under police investigation for drug-related charges. Baek was arrested on May 24, 2025, for allegedly using methamphetamine in a motel in Incheon.At that time, the court stated that the matter was serious but denied a warrant for his arrest, citing his stable residence and low risk of evidence tampering or flight. Following a detailed examination by the National Forensic Service, a positive drug test was confirmed, and police sent Baek to prosecutors in June 2025 on charges of violating drug laws.During police questioning, Baek reportedly admitted to using methamphetamine and stated that he purchased the drugs through Telegram.Police plan to confirm the circumstances of Baek's death through interviews with those close to him.※ If you or someone you know is struggling with depression or other difficult issues, you can receive 24-hour expert counseling through the suicide prevention hotline at 109 or via social media counseling at Madeline. 2026-08-05 15:08:00