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Korea's property tax overhaul outline jolts Gangnam SEOUL, August 04 (AJP) - Gangnam's luxury apartment owners were left scrambling over whether to sell, move back into their homes or brace for sharply higher tax bills after the government unveiled a sweeping property tax overhaul that many residents described as bombshell. Within hours of Monday's announcement, real estate agents across Seoul's most expensive neighborhoods said phones began ringing from owners asking whether they should accelerate planned sales or abandon rental arrangements to qualify for more favorable tax treatment before the new rules take effect. The overhaul, unveiled as part of President Lee Jae Myung's 2026 tax revision package, seeks to shift the burden toward owners of ultra-expensive and non-owner-occupied homes while easing taxes for many owner-occupiers. "When you add everything together, wage income is taxed at as much as 49.5 percent. But even if someone earns capital gains of 10 billion won from real estate, they pay only a few hundred million won in tax," Lee said during a cabinet meeting on Tuesday, following the tax revision announcement on the previous day. The president argued that the tax code should better reflect taxpayers' actual ability to pay rather than continue giving preferential treatment to large gains from property. The announcement immediately exposed one of the country's deepest political and economic fault lines. Few issues influence household finances — or election outcomes — more than housing in Korea, where homes function not only as places to live but also as retirement savings, investment vehicles and symbols of social mobility. Physical assets account for nearly three-quarters of average household wealth, while Seoul apartment prices have climbed for 13 consecutive months, widening the divide between homeowners and aspiring buyers. The proposal reorganizes the comprehensive real estate holding tax around both property value and actual residency instead of simply counting how many homes a person owns. The tax exemption for a single owner-occupied home would rise from an officially assessed value of 1.2 billion won ($838,000) to 1.4 billion won, equivalent to roughly a 2 billion won market value. Taxes would generally decline for owner-occupiers with homes worth up to around 3 billion won, while owners of properties valued above roughly 4 billion to 5 billion won, multiple-home owners and nonresident owners would face heavier burdens. The government also plans to fundamentally overhaul capital gains tax deductions. Beginning in 2029, tax benefits for long-held homes will depend almost entirely on how long owners actually lived in the property, replacing decades of preferential treatment based largely on ownership period. The maximum deduction will also be capped at 1 billion won. Supporters say the distinction between a primary residence and an investment property is long overdue. "The direction is exactly right," said a 55-year-old manager at a midsized paper company in Seoul. "Housing should be a place to live, not an object of speculation." He said the package would reduce reasonable burdens on ordinary homeowners while asking owners of luxury and investment properties to contribute more. "It moves away from the outdated approach of looking only at how many homes somebody owns and toward a system that considers their actual ability to pay." A public corporation manager in his 40s living in Goyang also welcomed the proposal despite saying taxes on ultra-expensive homes felt distant from most people's lives. Democratic Party lawmakers echoed that view. Rep. Jin Seong-jun described the overhaul as an important step toward improving tax fairness, dismissing opposition claims of a "tax bomb" as familiar political rhetoric. Rep. Kim Nam-joon likewise called the proposal evidence of the administration's commitment to fair taxation. Jin nevertheless acknowledged taxation alone would not solve Seoul's housing problem."Ultimately, stabilizing housing prices requires large-scale supply measures," he said, noting that the government is expected to unveil additional housing supply policies soon. The strongest backlash came from Seoul's affluent southern districts, where many apartment owners purchased homes decades ago before redevelopment transformed them into some of Asia's most valuable residential properties. In Daechi-dong, home to luxury complexes such as Raemian Daechi Palace, agents said homeowners who had casually discussed selling earlier this year suddenly became far more serious after the announcement. "People who had been wondering whether to sell this year are now seriously considering it," one broker said. "Those already planning to sell are likely to move up their timetable, while others are deciding they may have to move back into their homes." Another Daechi agent said inquiries from prospective sellers began arriving almost immediately after the government released the proposal. Some landlords whose leases expire this year are now considering returning to live in their apartments themselves. Across west, Banpo in Seocheo, owners were asking not about selling but about residency requirements. "People who rented out their homes are asking whether moving back in would change how much comprehensive property tax they pay," one Banpo broker said. "They're trying to understand exactly when residency matters and how the new rules will apply." Among homeowners, the biggest anxiety centered on the proposed overhaul of capital gains taxes. A cardiothoracic surgeon in his 50s living in Banpo Xi said the scale of the changes had caught even experienced property owners by surprise. "The biggest shock is the capital gains tax," he said. "I recently looked at apartments in Apgujeong, and between one-third and nearly half were owned by people approaching 80." Many purchased their homes 30 or 40 years ago for less than 1 billion won, he said. Today, some are worth around 11 billion won. "For those people, the shock will be enormous," he said. "If they don't sell within the next year or two, some could end up paying an additional 1 billion to 2 billion won in taxes." He also estimated annual holding taxes on large apartments in Banpo or Apgujeong could reach 50 million to 60 million won — comparable to the after-tax annual income of many salaried workers. Not everyone opposed the overhaul on financial grounds alone. A lawyer in his 60s living in Yongsan called the proposal "a communist policy," arguing that higher taxes would discourage homeownership and restrict people's freedom to move. Others worried about unintended consequences for renters. A woman in her 20s working for a major corporation questioned why the government appeared to be discouraging multiple-home owners who provide rental housing. "Is this a signal that the government ultimately wants to eliminate the jeonse system?" she asked. "At a time when jeonse and monthly rents are already rising, discouraging multiple-home owners or owners of one nonresident property may not benefit ordinary citizens." Conservative People Power Party lawmaker Ahn Sang-hoon argued that landlords would eventually pass higher taxes on to tenants while housing demand would simply spill into neighboring districts, pushing prices higher elsewhere. The government has attempted to soften the transition by temporarily easing capital gains taxes on multiple-home owners through 2028 to encourage property sales. Opponents, however, argue that raising ownership costs while maintaining transaction-related burdens risks discouraging private rental supply instead. The debate therefore extends well beyond taxation. Supporters see the overhaul as a long-overdue effort to restore fairness by treating housing primarily as shelter rather than a vehicle for tax-advantaged wealth accumulation. Critics counter that it punishes long-term homeowners whose neighborhoods appreciated around them, could reduce rental supply and ultimately shift higher costs onto tenants. Whether the reforms cool Seoul's overheated housing market may depend less on tax policy itself than on whether the Lee administration can deliver enough new housing to ease the chronic shortage that has fueled soaring prices for years. 2026-08-04 19:25:20
Controversial Criminal Procedure Law Passes Cabinet Meeting Amid Political Divide As a revision of the Criminal Procedure Act, which includes the complete abolition of prosecutorial investigation rights and an expansion of grounds for court dismissals, passed the Cabinet meeting on August 4, the Democratic Party expressed its support. In contrast, the opposition People Power Party, which has opposed the revision, reacted sharply, suggesting that expectations for the new law to function effectively should be abandoned.Democratic Party spokesperson Park Hae-cheol stated in a written briefing, "This revision clarifies police responsibilities and strengthens cooperation and checks between agencies," adding that it is a reform of the criminal justice system aimed at better protecting the rights of crime victims.He acknowledged public concerns about potential gaps in investigations and victim protection, assuring that the Democratic Party and the government would take full responsibility for subsequent legislation and institutional improvements to address these worries.The Democratic Party plans to ensure that all cases involving seven major crimes against vulnerable groups will be forwarded through subsequent legislation. They also promised to review gaps in victim protection through an internal task force.Kim Seung-won, the ruling party's representative on the National Assembly's Legislation and Judiciary Committee, emphasized, "There have been numerous cases where innocent citizens suffered due to the abuse of investigative powers by a politically motivated prosecution. If we do not break this cycle of tragedy now, the consequences will extend to future generations."Conversely, People Power Party leader Jang Dong-hyuk pointed out in a meeting with reporters that President Lee Jae-myung had also expressed concerns about the abolition of supplementary investigation rights. He criticized the inclusion of a provision for dismissing charges that could absolve the president, stating, "The Democratic Party claims they will address issues, but the problems have already been revealed." He referenced the 'Jang Yoon-ki case' as a clear example and noted the emotional pleas of victims from the 'Busan kickback case.'Floor leader Jeong Jeom-sik also criticized the move on his Facebook, stating, "Discussing checks and controls on the police while abolishing supplementary investigation rights is a bizarre contradiction akin to trying to extinguish a fire while pouring gasoline." He added that all responsibility for a potential crime crisis following the abolition of these rights lies with President Lee and the Democratic Party, asserting, "The president has sacrificed public safety for his own post-retirement security, and he will pay the price for it."Additionally, chief spokesperson Park Chung-gwon raised concerns, calling it a "direct challenge to the public and judicial justice," while floor spokesperson Choi Eun-seok criticized the revision as a potential 'self-protection' measure aimed at the president's own trial, suggesting it raises suspicions of unconstitutional legislative maneuvering.* This article has been translated by AI. 2026-08-04 19:24:00
Celltrion Pharmaceutical Reports Record Operating Profit of 19.3 Billion Won in Q2 Celltrion Pharmaceutical achieved its highest-ever quarterly operating profit, driven by balanced growth in its chemical drugs, biosimilars, and contract manufacturing (CMO) businesses.On August 4, Celltrion announced in a preliminary earnings report that it recorded sales of 153.3 billion won and an operating profit of 19.3 billion won for the second quarter of this year. This represents a 16.8% increase in sales and a 24.4% increase in operating profit compared to the same period last year, marking a record for the quarter.The operating profit margin for the second quarter was 12.6%, up 0.8 percentage points from the previous year. The improvement in performance was attributed to stable sales of chemical drugs, an increase in prescriptions for biosimilars, and a rise in production volume of pre-filled syringes (PFS) due to global demand.For the first half of the year, cumulative sales reached 285.4 billion won, with an operating profit of 32.2 billion won, reflecting increases of 17.1% and 22.7%, respectively, compared to the same period last year. Net profit for the same period was 22.5 billion won, up 22.4%.The chemical business segment reported sales of 67.0 billion won. The liver treatment drug 'Godeks' saw a 10.1% increase in sales to 17.7 billion won due to expanded prescriptions. The diabetes medications 'Nesina' and 'Actos' continued to see steady prescriptions, while the hypertension and hyperlipidemia combination drug 'Amlojet' recorded sales of 8.6 billion won, benefiting from market expansion.The biosimilars segment generated sales of 36.6 billion won, a 12.5% increase from the previous year. The autoimmune disease treatment 'Remsima' saw a 19.2% increase in sales to 11.5 billion won, while the blood cancer treatment 'Truxima' recorded a 20.7% increase to 4.3 billion won.The autoimmune disease treatment 'Uplima' grew by 28.6% to 2.4 billion won, and the cancer drug 'Vegzelma' surged by 93.9% to 4.0 billion won. The allergy treatment 'Omniclo' saw a significant increase of 206.5% to 1.2 billion won, driven by new prescriptions in major hospitals, while autoimmune treatments 'Stekima' and 'Aptozma' each recorded sales of 400 million won.The contract manufacturing segment reported sales of 49.7 billion won, a 53.4% increase from the previous year. The production volume of PFS products increased due to global demand, leading to a 51.9% rise in related commercial production sales to 35.3 billion won. Sales from in-house products and other pharmaceutical services also increased.A Celltrion representative stated, "In the second quarter, the growth of major business segments continued evenly, leading to improvements in both sales and profitability. We will strengthen the sales competitiveness of our key products in the second half while maintaining production capabilities that can flexibly respond to market demand to ensure stable growth."Additionally, the company announced plans to invest a total of 2 trillion won to establish PFS production facilities in the Chungcheong region, as revealed at last month's government 'Chungcheong Region Advanced Industry Development Vision National Report Meeting.' Once this investment is completed, Celltrion's PFS production capacity will expand from the current 20 million syringes per year to 70 million syringes.* This article has been translated by AI. 2026-08-04 19:04:00
President Lee Praises Record Exports and Calls for Startup Revitalization President Lee Jae-myung praised the Ministry of SMEs on August 4, stating, "This year, exports in the first half reached an all-time high. Thank you for your hard work."During a report from the Ministry of SMEs held at the Blue House, President Lee emphasized, "The growth of small and medium enterprises, which are the roots and true backbone of the South Korean economy, is essential for everyone's growth."The export amount for small and medium enterprises in the first half of this year was $64 billion, an 11.6% increase compared to the same period last year, marking a record high.He also urged the normalization of the 'Startup for All' project, a key initiative of his administration, which has stalled following a data breach incident affecting 5,000 initial applicants since its launch in January.President Lee stated, "It is crucial to provide policy support so that small and medium enterprises can establish a sustainable growth foundation through manufacturing innovation, beyond mere protection." He added, "I hope the Startup for All project can be pursued steadfastly, allowing anyone with an idea to challenge entrepreneurship without fear of failure."He pointed out that the employment rates and job quality of good companies are declining, a trend that could worsen with the rise of artificial intelligence. He noted, "The demand for good jobs will continue to grow, and ultimately, we must break through through entrepreneurship. South Korea seems to need a major transformation into a startup-centric nation."President Lee also called for enhanced policy support to ensure that the benefits of large corporations' growth reach small and medium enterprises and small business owners. He urged the creation of a cooperative business ecosystem that allows the warmth of growth to reach small and medium enterprises, small business owners, and local markets, while also emphasizing the importance of revitalizing local economies and strengthening management and financial safety nets.* This article has been translated by AI. 2026-08-04 19:00:00
K-Battery Industry to Benefit from South Korea's Version of IRA The South Korean government is set to introduce a tax credit system, akin to the U.S. Inflation Reduction Act (IRA), that will reduce taxes based on the volume of secondary batteries produced and sold domestically. This new system, which focuses on actual production rather than investment amounts, is expected to alleviate operational burdens for battery manufacturers such as LG Energy Solution, Samsung SDI, and SK On.According to industry sources, the Ministry of Economy and Finance has included a domestic production tax credit in its "2026 Tax Reform Plan." This plan aims to provide income and corporate tax deductions for companies directly producing and selling in six key sectors: semiconductors, secondary batteries, solar power, wind power, essential materials, and AI & robotics components.The tax credit will be calculated by multiplying the production volume of eligible items by a standard deduction amount for each item. Unlike previous tax incentives that were based on investments in factories and production equipment, the domestic production tax credit supports the actual production and sales processes in established facilities.This initiative could incentivize higher operational rates at domestic factories. The three major battery companies have faced reduced operational rates at their domestic and international facilities due to adjustments in orders from electric vehicle manufacturers. With the new tax credit based on production volume, these companies could reduce the financial burden associated with operating their factories.Notably, the majority of South Korea's key battery production facilities are located outside the capital region, which raises the potential for the three battery companies to benefit significantly. The government plans to apply a standard deduction amount of 1x for facilities in the capital region, while non-capital areas will receive a preferential coefficient ranging from 1.1 to 1.5, depending on the region. LG Energy Solution operates in Ochang, Chungbuk; Samsung SDI in Ulsan and Cheonan, Chungnam; and SK On in Seosan, Chungnam.Previously, the three battery companies have received tax credits proportional to their North American production volumes through the Advanced Manufacturing Production Credit (AMPC) under the U.S. IRA. As the AMPC has served as a stabilizing factor for their performance, there have been calls for similar direct benefits at the production stage in South Korea.However, the battery industry expresses concerns that the actual scale of benefits can only be assessed once the implementation details are finalized. The specific items eligible for the tax credit have yet to be determined. The government plans to outline the eligible items, key processes, qualifying production costs, and standard deduction amounts through presidential decree. The standard deduction amount, which will influence the tax credits, is expected to be established by February next year.Industry insiders also express disappointment over the exclusion of direct refund mechanisms. Companies operating at a loss may find it difficult to fully benefit from the tax credits. The domestic production tax credit is structured as a deduction from corporate taxes owed, meaning that companies without taxable income due to operating losses will not receive immediate benefits. For battery companies facing profitability challenges amid the electric vehicle market downturn, achieving profitability is essential to realize the tax credit's advantages.One industry representative noted, "The inclusion of secondary batteries as eligible items is positive, but the absence of direct refunds and third-party transferability may limit the tangible benefits for companies, indicating a need for future enhancements to the implementation decree."* This article has been translated by AI. 2026-08-04 18:52:00
Nexters Reports 5.3 Billion Won Operating Loss, 8.1 Billion Won Net Profit Due to One Store Acquisition Nexters announced on August 4 that it recorded approximately 5.8 billion won in revenue and an operating loss of about 5.3 billion won for the second quarter, according to its consolidated financial statements under Korean International Financial Reporting Standards (K-IFRS). The company reported a net profit of approximately 8.1 billion won, reflecting a gain of 15.7 billion won from the acquisition of One Store.For the first half of the year, cumulative revenue reached 17.42 billion won, a 9.4% increase compared to the same period last year, while net profit turned positive at 5 billion won.Platform revenue has increased, attributed to Nexters' direct participation as a validator in network operations following the OneChain 2.0 upgrade in the second quarter. The company anticipates continued growth alongside network operations.In June, Nexters acquired an 89.03% stake in One Store for approximately 62.6 billion won and rebranded its ecosystem under the 'ONE' brand during the second quarter. The mainnet CROSS was renamed OneChain, the native token CROSS was changed to ONE, and the common transaction medium for the ecosystem was rebranded to ONEUSD.Through the acquisition of One Store, Nexters is accelerating the development of an AI and blockchain game platform. This month, it launched the 'AI Games' tab, allowing AI-generated games to be offered within the One Store ecosystem. Additionally, Nexters plans to integrate the embedded wallet 'ONEpocket' into the One Store app by mid-August. By the end of August, the global One Store will be launched as OneBuild in 124 countries, marking a significant step in its global store and game platform business.The addition of exclusive content is also being expedited. Starting this month, One Store has partnered with Tencent to introduce games such as 'Run or Die', 'Legend of the New World', and 'Oh! Yang is Here' on the mini-game platform OnePlay. These games have achieved top rankings in China. The company aims to enhance the competitiveness of game content through AI and blockchain games.Nexters is also transitioning into a game community platform. The participatory promotion ONEquest is being integrated into One Store, expanding beyond Telegram, wallets, and the web. The streamer platform ONEwave will also combine with both domestic and global versions of One Store to accelerate growth. As of July, the number of streamers active in the ONE ecosystem has reached 33,419, a twelvefold increase from 2,762 in January.Jang Hyun-guk, CEO of Nexters, stated, "The second quarter saw a significant increase in net profit due to the acquisition of One Store. Starting in the third quarter, we expect to see growth in revenue and improvements in operating profit."* This article has been translated by AI. 2026-08-04 18:48:00
Summer visitors flock to Sanasa valley for relief from the heat Summer visitors catch freshwater snails at Sanasa Valley in Yangpyeong, Gyeonggi Province, August 4, 2026. 2026-08-04 18:41:34
Summer visitors flock to Sanasa valley for relief from the heat Summer visitors enjoy water play at Sanasa Valley in Yangpyeong, Gyeonggi Province, August 4, 2026. 2026-08-04 18:40:39
OpenAI Hosts First Codex Game Development Hackathon in South Korea OpenAI is set to host a game development hackathon utilizing its coding agent, Codex. This event marks the first global gathering focused on game development using Codex, aiming to showcase the potential of AI-driven game development with South Korea's robust developer community and thriving gaming industry.The "OpenAI Game Builders Seoul" event will take place on the 31st in Seoul, supported by Com2us, under the theme "Build with Codex, Play on Hive."Codex is OpenAI's coding agent that assists in software development by writing, modifying, and testing code based on natural language instructions. Hive, developed by Com2us, is a game backend platform that integrates AI plugins for essential functions such as login, payment, user analytics, and security, facilitating game launch and operation.Participants will develop games using Codex and then integrate essential features for launch and operation through Com2us's Hive platform via the Codex plugin.From the applicants who submit game prototypes and development experiences using Codex, 40 teams will advance to the main event.The event will feature prominent local developers sharing their experiences in game development with Codex. Notably, Song Jae-kyung, a leading developer of the MMORPGs "Baram-ui Nara" and "Lineage," will participate throughout the event.The hackathon will operate in two tracks. Track 1, titled "Turning Ideas into Reality: Making Games with Codex," will include presentations where participants introduce games developed in advance with Codex. Track 2, the "5-Hour Challenge," will challenge participants to develop AAA-quality games using the latest version of Codex within a limited timeframe on the day of the event.Winners from Track 1, determined by popular vote, will receive a total of $50,000 in OpenAI API credits and a one-year subscription to ChatGPT Pro. Outstanding teams in Track 2 will also receive a one-year subscription to ChatGPT Pro. All participants in the main event will receive $100 in OpenAI API credits.Oliver Jay, OpenAI's Head of International Business, stated, "South Korea is an ideal place to explore the new possibilities at the intersection of gaming and AI, given its world-class game development capabilities and creative developer community. I hope this event allows seasoned developers who have led the Korean gaming industry to share their experiences and ideas with a new generation of developers, expanding the culture of game development with AI."He added, "We aim to support more developers in turning their ideas into actual games with Codex, discovering new creative and development possibilities that were previously difficult to pursue." 2026-08-04 18:40:00
Summer visitors flock to Sanasa valley for relief from the heat Summer visitors enjoy water play at Sanasa Valley in Yangpyeong, Gyeonggi Province, August 4, 2026. 2026-08-04 18:39:33