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  • IPO Market Declines Despite Record Trading Volumes in South Korea
    IPO Market Declines Despite Record Trading Volumes in South Korea The initial public offering (IPO) market in South Korea is cooling down. Despite record levels of trading volume in the domestic stock market, the returns on newly listed shares have decreased. Regulatory uncertainties, prolonged listing reviews, and delays in the submission of securities registration statements are expected to hinder the recovery of new listings this year.According to the financial investment industry on August 4, the cumulative IPO amount, excluding SPACs and REITs, reached 12.488 trillion won from January to July, a 48.6% decrease compared to the same period last year. The number of IPOs during this time was 21 (one on the KOSPI and 20 on the KOSDAQ), down 53.3% from 45 in the same period last year.Notably, the drought of IPOs on the KOSPI is particularly striking. This year, there has been only one new listing on the KOSPI, which was K-Bank in March. If the current trend continues, the annual total could be the lowest since 2022 (four listings) and 2023 (five listings). In 2022 and 2023, high interest rates dampened investor sentiment, leading to the postponement or withdrawal of several major listings.Returns on IPOs have also been disappointing. While the closing price on the first day of trading showed a 121.3% increase compared to the offering price, the returns dropped to 46.7% after one month, -7.0% after three months, and -31.4% after six months, indicating not only low returns but also high volatility.This situation contrasts sharply with the current stock market environment. The trading volume on the KOSPI has significantly increased compared to last year. In August, the average daily trading volume on the KOSPI is around 27.105 trillion won. Although it has decreased from the peak of 50 trillion won in May and June, it remains high compared to the average daily trading volumes from 2021 to 2025, which were 15.424 trillion won, 9.08 trillion won, 9.603 trillion won, 10.742 trillion won, and 12.4 trillion won, respectively.The KOSDAQ market reflects a similar trend. This year, the average daily trading volume on the KOSDAQ is 12.379 trillion won, the highest compared to the annual averages from 2021 to 2025, which were 11.861 trillion won, 6.901 trillion won, 10.25 trillion won, 8.394 trillion won, and 7.548 trillion won.Typically, during bullish market conditions, companies tend to pursue IPOs more aggressively due to increased investor demand and higher chances of successful offerings. However, this year has seen an unusual disconnect between rising trading volumes and the expansion of IPO supply.One of the main factors contributing to the contraction of the IPO market in the first half of this year is the dual listing guidelines announced in July. Choi Jong-kyung, a researcher at Heungkuk Securities, stated, "The delay in the announcement of the guidelines blocked the market's momentum for several months," adding, "It is unusual that there has been no new KOSPI listing for almost four months following K-Bank's IPO."Despite the announcement of the dual listing guidelines alleviating some uncertainties and an increase in companies applying for preliminary listing reviews in the second half of the year, industry experts remain skeptical about the recovery of the IPO market. The time taken from preliminary review to actual market entry has significantly increased compared to the past.In recent years, the listing review process at the Korea Exchange has become more stringent, typically taking over three months for approval. The preliminary review process has become more detailed in assessing corporate value and business viability, and for technology-based listings, additional procedures such as technology assessments and expert meetings have been added.Moreover, the Financial Supervisory Service is conducting a conservative review of securities registration statements, adding further delays. The level of scrutiny regarding the basis for offering price determination, selection of comparable companies, business outlook, and investment risks has increased, leading to more instances of companies receiving requests for corrections after submitting their registration statements.An industry insider noted, "In the past, the process from listing review application to actual listing could take as little as four months, but this year, it is expected to take between one to one and a half years. It has become common to plan schedules with the assumption that companies will receive correction requests for their registration statements at least once."* This article has been translated by AI. 2026-08-04 18:08:10
  • Gyeongnam Invests 21.8 Billion Won in Aviation Cluster, Generates 28.2 Billion Won in Revenue
    Gyeongnam Invests 21.8 Billion Won in Aviation Cluster, Generates 28.2 Billion Won in Revenue Gyeongnam Province has reported generating 28.25 billion won in commercial revenue from its second phase of the regional innovation cluster project, which involved an investment of 21.8 billion won. The project has achieved significant milestones in technology localization in the aviation sector, obtaining overseas certifications, and securing supply contracts.According to Gyeongnam Province on August 4, the initiative was centered around Jinju Innovation City and connected the cities of Sacheon, Hamann, and Goseong, with participation from 23 local companies. The research and development phase is set to run from 2023 to 2025, while non-R&D support and workforce training concluded in April of this year. The total project budget includes 13.9 billion won from the national government and 7.9 billion won from the provincial government.Key achievements reported by Gyeongnam include commercial revenue of 28.25 billion won and the creation of 142.8 new jobs. Additionally, the project facilitated 20 business attraction cases, trained 85 individuals, provided 99 instances of corporate support, and established 41 global collaborations.The commercial revenue figure is calculated based on the revenue reported by participating companies, adjusted for the project's contribution rate.The new job creation figure is expressed in decimal form to reflect the proportional contribution of the project to both full-time and contract employment.The 20 business attraction cases include not only headquarters relocations but also investment agreements, operational partnerships, and the establishment of factories and research centers.A Gyeongnam official explained, "Companies assess how much the project contributed to their revenue and submit the data accordingly. It can be challenging to completely separate direct sales generated from R&D projects from the companies' overall sales."Individual companies have also made strides in technology development. Samwoo Metal Industry Co., based in Changwon, registered a patent for a multifunctional surface treatment technology that enhances the corrosion resistance of aviation parts, along with related process and evaluation technologies.AeroCotec Co., located in Sacheon, has localized its ion deposition coating technology, which was previously heavily reliant on foreign sources, and obtained NADCAP certification for special processes in the aerospace industry.AeroCotec has secured a supply contract worth 4.6 billion won and hired nine new employees. Both companies have previously participated as suppliers in the aviation industry and have expanded their business scope into new processes and technologies through this project.Performance management for the project will be linked to future initiatives. A Gyeongnam official stated, "In R&D, there may be instances where not all goals are achieved during the technology development process. If the evaluation results are unsatisfactory, they will be reflected in the selection process for future projects."Starting this year, the project scope has expanded from Gyeongnam to the Southeast region. Regional initiatives are being pursued to connect Gyeongnam's aviation parts and materials industry with Busan's marine ICT and Ulsan's electric-driven mobility sectors.The 'Southeast Regional Innovation Cluster Development Project,' which began this year in collaboration with Busan and Ulsan, is still in its preliminary stages.While the goal is to integrate Gyeongnam's aviation parts, Busan's marine ICT, and Ulsan's electric-driven mobility, current efforts are limited to individual cooperation between the two provinces. There are no established common core outcomes or specific commercialization plans resulting from the integration of the three regions' industries.In response, a provincial official noted, "We are currently in discussions regarding common outcomes that the Busan-Ulsan-Gyeongnam region can jointly develop. We will strengthen evaluations, such as reflecting underperforming companies in the selection process for future projects."Lee Dong-hoon, head of the Aerospace Industry Division in Gyeongnam Province, stated, "We have supported the commercialization of companies' technology development achievements through the regional innovation cluster project. We will continue to enhance the competitiveness of the aviation parts and materials industry by reflecting the needs of businesses in our support efforts."* This article has been translated by AI. 2026-08-04 18:08:10
  • Boy band WayV promote upcoming album with US debut performance in New York
    Boy band WayV promote upcoming album with US debut performance in New York SEOUL, August 4 (AJP) - K-pop boy band WayV made their U.S. debut performance at SummerStage in New York's Central Park, using the outdoor set to preview choreography from their upcoming mini-album "Vision Wings" ahead of their release, their agency SM Entertainment said on Tuesday. The group performed at Central Park's Rumsey Playfield last Sunday as part of the free, annual SummerStage festival. The show also featured New York-based group THE EITHER and Chopstix as opening acts. WayV opened their set with "BIG BANDS," the English version of "Bad Alive" and the English version of "Phantom," before moving through tracks including "Nectar," "On My Youth," "Poppin' Love," "Give Me That" and "FREQUENCY." The group also leaned heavily on its English-language catalog, performing "Filthy Rich," "Love Talk," "Ice Tea" and "Low Low" for the New York audience. Members Kun and Xiaojun performed the English version of "Back To You," while Hendery and Yangyang took on the unit track "RODEO." The main preview came near the end of the show, when WayV revealed part of the choreography for "Vision Wings," the title track of its eighth mini-album. The performance incorporates martial arts-inspired movements, according to the agency. The seven-track album will include both Chinese- and English-language versions of the title song. It is scheduled for release through music platforms on Aug. 10. The release date is also listed by SMTOWN's official store. WayV members debuted in 2019 as the China-based unit of NCT and have built a multilingual catalog spanning Mandarin, Korean and English. SummerStage billed the show as a night of Chinese pop, highlighting the group's mix of hip-hop, dance and R&B. 2026-08-04 18:06:27
  • Government Focuses on Strengthening Regulations for Large Corporations
    Government Focuses on Strengthening Regulations for Large Corporations The Fair Trade Commission (FTC) is tightening regulations on large business groups in the second half of this year. The agency plans to amend laws to impose fines on the heads of conglomerates if they fail to include affiliated companies in their submissions for designation as large business groups. Additionally, the FTC will expand disclosure requirements related to corporate ESG (environmental, social, and governance) management.On August 4, the FTC announced its "2026 Second Half Major Work Plan" at the Blue House. The agency aims to establish a foundation for fair growth and reform monopolistic structures, focusing on four key tasks: establishing fair trade order in the livelihood sector, reducing power imbalances among economic entities, creating an innovative ecosystem in the digital market, and alleviating economic concentration among large business groups.To begin with, the FTC will improve the regulatory framework for large business groups in the second half of the year. It plans to significantly strengthen penalties for omitting affiliated companies in designation submissions. Fines of up to 10% of the total assets and sales of the omitted affiliates will be imposed on the heads of conglomerates, and the criteria for reporting serious and repeated omissions will also be tightened.The FTC will also enhance regulations related to self-dealing. Under the revised law, treasury stock will be excluded from the equity calculation for self-dealing regulations, and penalties will be applicable for omissions that occurred during unspecified periods. Appropriate fines will be imposed in proportion to the unjust profits gained by the heads of conglomerates through self-dealing.Reforms will also be made to improve ownership and governance structures. To strengthen ESG management among large business groups, the FTC will add disclosure items such as the results of minority shareholder rights exercises and the status of compliance program operations. The penalty rates for repeated violations of disclosure obligations will be increased to enhance the effectiveness of sanctions. Additionally, new evaluation indicators for large business groups will be developed.In the digital market, the FTC will focus on monitoring practices such as demanding best treatment from delivery apps, tying sales, and deceptive practices in online shopping. To this end, the agency will clarify types of legal violations and revise detailed criteria for applying laws in response to changes in the economic environment. Furthermore, it plans to investigate and rectify unfair advertising practices that mislead consumers regarding smartphone-related products and will conduct thorough checks on dark patterns in AI subscription services.To reduce power imbalances among economic entities, the FTC will remove barriers that hinder collective bargaining. Small and medium-sized enterprises and small business owners will be excluded from collusion regulations in collective negotiations, and the right to form associations for subcontractors and dealers will be explicitly stated. Unfair subcontracting practices in national infrastructure industries such as shipbuilding and plants will be closely monitored, and standard dealer contracts in the petroleum distribution sector will be revised to reflect current realities.Improvements will also be made to establish a fair trade order in the livelihood sector. The FTC plans to closely monitor collusion in the chemical, paint, and petroleum product sectors to prevent market disruption amid the chaotic international crude oil situation. Structural measures, including divestitures and business transfers, will be introduced to fundamentally resolve monopolistic structures in cases of abuse of dominant market positions.The FTC will also rationalize its enforcement system in the second half of the year. To eliminate concerns about abuse of power, it will operate a "prosecution review committee" for individual agencies following the reform of the exclusive prosecution system. Starting in October, the FTC plans to refer legal violations to the Serious Crimes Investigation Agency.Nam Dong-il, the FTC's vice chairman, stated, "In the second half of the year, we will work to alleviate economic concentration among large business groups and strengthen market monitoring through disclosure reforms," adding, "We are currently reviewing specific fines for profits gained through self-dealing."* This article has been translated by AI. 2026-08-04 18:04:20
  • Beauty Retail Landscape Shifts as Single-Brand Stores Decline
    Beauty Retail Landscape Shifts as Single-Brand Stores Decline The number of cosmetics retail stores in South Korea has decreased for 32 consecutive months, with the influence of companies like CJ Olive Young, Daiso, Musinsa, and Kurly growing. As consumers increasingly compare prices, ingredients, and reviews, single-brand road shops are being rapidly replaced by multi-brand stores and online platforms. According to data from the National Tax Service on August 4, the number of cosmetics retail stores nationwide fell to 34,232 in June, a decrease of 2,176 stores (6.0%) compared to the same month last year. This marks a continuous decline since October 2023, when the count was 39,158, totaling a loss of 4,926 stores (12.6%) during this period. The reduction in road shop brands is also notable, with the number of franchise stores for Amorepacific's beauty shop Aritaum dropping from 522 in 2022 to 372 in 2024, a decline of 28.7%. Similarly, the number of Innisfree franchise stores fell from 324 to 190, a decrease of 41.4%. In contrast, the online cosmetics market continues to grow. The National Data Agency reported that the online cosmetics transaction volume reached 4.1577 trillion won in the second quarter of this year, a 20.4% increase from the same period last year. In June, mobile transactions accounted for 1.0036 trillion won, representing 79.4% of total online cosmetics sales. Offline, Olive Young and Daiso are absorbing the demand for road shops. The number of Olive Young stores increased from 1,265 in 2021 to 1,381 last year. Although it slightly decreased to 1,367 by the end of June this year, this figure is still 8.1% higher than in 2021. The company is enhancing its influence as a cosmetics distribution platform by linking its nationwide stores and online mall, providing product rankings, reviews, same-day delivery, and in-store pickup services. Daiso is tapping into the demand for low-cost cosmetics with over 140 brands and more than 2,000 products priced under 5,000 won. The number of Daiso stores has grown from 1,390 in 2021 to 1,442 in 2022, 1,519 in 2023, and is projected to reach 1,576 in 2024, with estimates suggesting it will exceed 1,600 by 2025. Major cosmetics companies and indie brands are launching Daiso-exclusive small-sized products, establishing the store as a channel for consumers to test products without significant financial commitment. Musinsa and Kurly are also expanding their beauty businesses. The Musinsa Mega Store in Seongsu features over 500 brands, with the average daily transaction volume for these brands increasing by approximately 35%. Beauty Kurly's transaction volume in the first quarter of this year also rose by 20.2% compared to the same period last year. An industry insider noted, "The decline of road shops signifies not just a reduction in offline stores but a fundamental shift in how cosmetics are purchased. Sales are moving to multi-brand channels and online platforms, while standalone stores are evolving into spaces for brand experiences." 2026-08-04 18:04:10
  • Growing Obesity Drug Market: K-Bio Expands from Development to Production
    Growing Obesity Drug Market: K-Bio Expands from Development to Production The global obesity treatment market is rapidly expanding, prompting South Korea's pharmaceutical and biotech industries to accelerate investments in production infrastructure beyond just drug development. With the launch of domestically produced obesity medications on the horizon, efforts to secure production facilities and supply chains are intensifying, positioning the domestic bio industry as a new growth engine.According to a report by IQVIA on August 4, the global obesity treatment market is projected to reach up to $200 billion (approximately 286 trillion won) by 2030. Additionally, a report by Samil PwC forecasts that the market for glucagon-like peptide-1 (GLP-1) obesity and metabolic disease treatments will grow at an average annual rate of 20% until 2030. In response to this market expansion, global pharmaceutical companies are broadening their focus from drug development to include investments in active pharmaceutical ingredient production and supply chains.In South Korea, the first domestically produced GLP-1 obesity treatment is nearing launch. Hanmi Pharmaceutical plans to release its obesity treatment, epeglanatide, within the year, targeting sales of 100 billion won in its first year.The company confirmed significant weight loss effects in a Phase 3 clinical trial involving 448 adults based on clinical data from Koreans, with results showing meaningful outcomes at the 40-week mark. Unlike imported products such as Wegovy and Manjaro, epeglanatide will be produced directly at Hanmi's bio plant in Pyeongtaek. This domestic production system aims to ensure supply stability and price competitiveness.Earlier this year, Hanmi Pharmaceutical signed an exclusive distribution agreement with Mexican pharmaceutical company Sanfer, marking its entry into overseas markets. Industry experts believe that as a latecomer, price competitiveness and global marketing strategies will be crucial for establishing a foothold in the initial market.The expansion of the obesity treatment market is also attracting investments in production. Samsung Biologics recently decided to acquire the Swiss global peptide contract development and manufacturing organization (CDMO) Polypeptide Group for approximately 2.7 trillion won, marking the largest merger and acquisition in the history of South Korea's pharmaceutical and biotech industry. This acquisition will allow Samsung Biologics to expand its CDMO business, which previously focused on antibody drugs and antibody-drug conjugates (ADCs), to include peptide pharmaceuticals, a key raw material for GLP-1 treatments.SK Pharmtech, a CDMO subsidiary of SK, recently received approval for its new plant in Sejong. The company reportedly signed a supply contract for active pharmaceutical ingredients worth up to 2 trillion won with Eli Lilly over five years. This plan was formalized with an investment of approximately 376 billion won for the construction of the Sejong plant, which will focus on producing peptides needed for obesity and diabetes treatments.Global Market Insights has analyzed that pharmaceutical development companies are increasingly relying on specialized peptide CDMOs for technical expertise, commercial-scale production capabilities, and rapid market launches. As the development of oral peptides and next-generation GLP-1 treatments expands, investments in production capacity and peptide synthesis and purification infrastructure are also increasing.Jung Yoon-taek, head of the Pharmaceutical Industry Strategy Research Institute, stated, "Peptide-based obesity treatments are expanding to indications for other diseases, such as brain disorders, leading to increased demand. While securing blockbuster drugs was once a competitive advantage, in the obesity drug market, the production infrastructure capable of meeting global demand has become the key competitive edge."* This article has been translated by AI. 2026-08-04 18:04:10
  • Semiconductor Industry Pushes Back Against Partial Regulatory Relief
    Semiconductor Industry Pushes Back Against Partial Regulatory Relief The debate over exemptions to the 52-hour workweek regulation for semiconductor research and development (R&D) personnel is reigniting within the industry. As the government pushes for flexible work hour regulations primarily in non-capital special zones, industry stakeholders are expressing strong opposition, calling it a "half-hearted measure" that excludes key locations.According to political and industry sources, the government plans to submit the "Special Law on Designation and Management of Mega Special Zones" to the National Assembly as early as this month. This legislation follows the announcement of three mega projects worth 1,500 trillion won in June, aimed at fostering semiconductor clusters outside the capital and supporting regional balanced development.A key component of the proposal is the introduction of a "white-collar exemption" that would not apply the 52-hour workweek limit to the top 3% of income earners among researchers and managers in designated special zones. Additionally, the plan includes extending the settlement period for selective working hours from the current one month to a maximum of six months, aligning with periods requiring intense focus.However, the semiconductor industry's response has been lukewarm. Major hubs like Pyeongtaek and Icheon, home to Samsung Electronics and SK Hynix, as well as the upcoming Yongin cluster, are likely to be excluded due to their location in the capital region. With over 80% of the country's semiconductor R&D talent concentrated in these areas, critics argue that the effectiveness of the regulatory changes will be limited.An industry insider stated, "The outcome of the global AI semiconductor competition will be determined by advanced processes and next-generation high-bandwidth memory (HBM) R&D conducted at existing hubs. While regional balanced development is important, excluding core R&D locations will inevitably limit the country's semiconductor competitiveness."Recently, lawmaker Ko Dong-jin of the People Power Party proposed an amendment to the Semiconductor Special Law that would expand work hour exemptions to all semiconductor R&D personnel nationwide, regardless of location. This follows the removal of the 52-hour exemption clause during bipartisan negotiations in January. Ko emphasized, "Applying regulations differently based on work location undermines fair competition among companies and hinders timely technological development at the national level."The technological gap with global competitors is widening. Companies like NVIDIA and Qualcomm in the U.S. have established environments that allow high-salaried research personnel to focus on R&D without work hour restrictions. Taiwan's TSMC operates a 24-hour relay R&D system through its "Nighthawk" project.In contrast, domestic engineers face challenges maintaining workflow continuity due to the 52-hour regulation, especially during critical phases like tape-out or yield assurance.Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, remarked, "Semiconductor R&D is a race against time, requiring 24-hour equipment operation to achieve yield. If domestic researchers remain trapped by uniform regulations while global competitors focus their resources on unrestricted technological development, losing global technological leadership is only a matter of time."* This article has been translated by AI. 2026-08-04 18:04:00
  • Trumps Pressure on Iran Could Extend Shipping Costs for Samsung and LG
    Trump's Pressure on Iran Could Extend Shipping Costs for Samsung and LG President Donald Trump has intensified pressure on Iran regarding negotiations, raising concerns that Samsung Electronics and LG Electronics may face prolonged logistics costs in the second half of the year. LG Electronics had previously expected shipping costs to peak in the third quarter, with a decline anticipated in the fourth quarter. However, renewed tensions in the Middle East surrounding the Strait of Hormuz could lead to sustained surcharges and war risk insurance premiums.According to industry sources, Trump mentioned the possibility of negotiations with Iran during a White House briefing on August 3, calling it a "last chance to sign a good agreement." Reports indicate that he also referenced the potential for large-scale airstrikes, further pressuring Iran.Uncertainties remain regarding the full opening of the Strait of Hormuz and denuclearization talks. Iran has reportedly denied U.S. claims that formal negotiations are ongoing. No agreement has yet been reached to stabilize the Strait of Hormuz.The home appliance industry views the Middle East risks as a variable affecting logistics costs. Large products such as TVs, refrigerators, and washing machines rely more on maritime transport than air freight. If shipping routes are altered or insurance premiums rise, the transportation costs for finished products will increase accordingly.LG Electronics has already projected that its logistics costs in the second half of the year will be higher than in the first half. During a conference call on July 30, the company reported that the container shipping index has risen due to the combination of Middle Eastern conflicts and increased cargo volumes from China. They also noted that shipping companies have requested higher rates during the bidding process for the second half.LG expects shipping costs to peak in the third quarter, with a potential decline in the fourth quarter due to increased supply capacity, a slowdown in global cargo volumes, and the effects of renegotiations with shipping companies. However, this outlook is contingent on the Middle Eastern situation not deteriorating further.Industry observers are noting the increased uncertainty surrounding negotiations with Iran following Trump's comments. In a situation where the possibility of airstrikes has not been completely ruled out, shipping companies may find it difficult to lower costs for operations in high-risk areas. If war risk insurance premiums and emergency surcharges remain in place, LG's anticipated stabilization of shipping costs in the fourth quarter could be delayed.Samsung Electronics is also directly affected. The company has not disclosed the current additional shipping costs related to the Strait of Hormuz situation. However, due to the larger volume of products like TVs and home appliances, the reliance on maritime transport is significant. Rising shipping costs may first impact the cost burden of finished goods rather than its MX or DS divisions.Past incidents in the Red Sea have shown that logistics costs can become a significant variable in performance. In 2024, Samsung's annual logistics costs rose to 2.96 trillion won, a 71.9% increase from 1.72 trillion won the previous year. Similarly, LG's logistics costs increased from 2.66 trillion won to 3.11 trillion won, reflecting the impact of regional instability, rerouted shipping, and rising maritime freight rates.This time, the Strait of Hormuz is the variable. While it is primarily known as a route for oil transport, it also contributes to the overall risk premium in the maritime logistics market. If shipping companies reduce operations in high-risk areas or reroute, shipping capacity may become constrained. Increased insurance premiums and surcharges could also worsen the shipping contract conditions for electronics companies.Both Samsung and LG have been working to reduce logistics costs through long-term shipping contracts, renegotiations with shipping companies, and improving inland transport efficiency. LG also stated during the conference call that it aims to minimize the burden of rising logistics costs by improving basic freight conditions, enhancing inland transport structures, and optimizing warehouse operations.Meanwhile, the outcome of negotiations in the Middle East is expected to be a turning point for shipping trends in the third quarter. Although Trump has left the door open for negotiations by postponing airstrikes, analysts suggest that the risk premium in the maritime logistics market is unlikely to decrease easily until an agreement with Iran is confirmed.An industry insider remarked, "Home appliances are items with high sensitivity to logistics costs relative to product prices. If tensions in the Strait of Hormuz persist, shipping companies will find it difficult to lower rates, and manufacturers may face increased cost management burdens in the second half of the year."* This article has been translated by AI. 2026-08-04 18:04:00
  • Strengthened Industrial Technology Protection Law Insufficient to Prevent Key Technology Leaks
    Strengthened Industrial Technology Protection Law Insufficient to Prevent Key Technology Leaks Last year, the amendment to the Industrial Technology Protection Law increased penalties for the leakage of national core technologies. However, critics argue that it is still inadequate to prevent leaks of key technologies in advanced industries such as semiconductors and displays. As competition in artificial intelligence (AI) semiconductors intensifies, the issue of technology leakage has become critical, impacting both corporate competitiveness and national security. There are calls for legislative reforms, including raising penalties and expanding the scope of espionage laws.According to the National Assembly's information system, since the amendment to the Industrial Technology Protection Law took effect in July last year, two bills have been proposed to strengthen penalties for technology leakage crimes.In February, Kim Won-yi, a member of the Democratic Party, introduced a bill that proposes to increase both prison sentences and fines for crimes related to the leakage and infringement of national core and industrial technologies. The aim is to enhance the severity of penalties considering the social impact of technology leakage crimes.In June, Kim Nam-keun, also from the Democratic Party, proposed a bill to enhance the effectiveness of punitive damages. This bill aims to ensure that when technology leakage is recognized, damages are calculated at five times the actual loss, rather than the current maximum of five times the actual damages, thereby providing substantial relief and preventive effects for corporate losses.This reflects a growing concern that the current legal framework is insufficient to address the rapidly increasing problem of advanced technology leaks. Although the proposed amendments raise the maximum fine for technology leakage to 6.5 billion won (approximately $5.5 million), critics point out that the average sentences remain low, failing to achieve the intended deterrent effect. In a situation where a single advanced technology can determine the competitiveness of an industry worth trillions of won, a prison sentence of just a few years is unlikely to deter the rising tide of technology leaks.According to the Korea Employers Federation, the number of detected cases of key technology leaks abroad surged from nine in 2021 to 33 in 2025. Since 2020, the estimated economic damage to the country has reached 23 trillion won (approximately $19.3 billion).The urgency in the industry has increased, particularly as Chinese memory companies actively recruit talent from Samsung and SK Hynix, rapidly narrowing the technology gap. A notable example is Changxin Memory Technologies (CXMT), which recently became the top company by market capitalization on China's Nasdaq-style STAR Market. CXMT has reportedly recruited key technical personnel from Samsung Electronics and acquired technology from SK Hynix during its development process.Public sentiment also leans toward strengthening penalties. A recent survey conducted by the Korea Employers Federation found that 90.7% of respondents believe that penalties for those who leak core technologies abroad should be increased. Additionally, 92.5% of respondents indicated that the negative impact of core technology leaks on the economy is 'serious.'There are also concerns that South Korea's penalties for technology leakage crimes are relatively low compared to other major technology-holding countries. For instance, in April, a South Korean court sentenced a former Samsung Electronics employee to six years and four months in prison for leaking core semiconductor technology to CXMT. In contrast, in Taiwan, a case involving the leakage of TSMC's trade secrets and core blueprints resulted in a maximum sentence of ten years.Given the limitations of merely amending the Industrial Technology Protection Law, there are calls for a separate legal framework to address the leakage of national core technologies as a matter of economic security. Specifically, there are suggestions to expand the scope of espionage laws or to establish new legislation governing economic security crimes related to advanced technology leaks.Ha Sang-woo, a director at the Korea Employers Federation, stated, "As a majority of the public views the leakage of core technologies abroad not just as a corporate issue but as a threat to national competitiveness and economic security, prompt institutional improvements are necessary. We need a robust legal framework for penalties against the leakage of core technologies as part of our economic security response."* This article has been translated by AI. 2026-08-04 18:04:00
  • Lotte Hi-Mart Reports 2nd Quarter Operating Profit of 900 Million Won
    Lotte Hi-Mart Reports 2nd Quarter Operating Profit of 900 Million Won 롯데하이마트는 올해 2분기 매출이 5911억원으로 전년 동기 대비 0.5% 줄었다고 4일 공시했다. 다만 지난해 2분기 매출에 반영된 부가세 환급금 66억원을 제외하면 0.6% 신장한 것으로 나타났다.영업이익은 9억원으로 전년 동기 105억원보다 96억원 감소했다. 부가세 환급 수익 등 일회성 요인을 제외하면 영업이익 감소 폭은 29억원이다.월별 총매출액은 4월 6.2%, 5월 0.8% 각각 감소했지만, 6월에는 8.3% 증가하며 반등했다. 롯데하이마트는 이 같은 매출 개선 흐름을 바탕으로 하반기 성장세를 더욱 끌어올릴 계획이다.가전 관리 서비스인 '안심 케어 서비스'의 상반기 매출은 373억원으로 전년 동기 대비 44% 증가했다. 가전과 서비스를 함께 구매한 고객 비율인 연동 구매율도 2023년 15%에서 올해 상반기 52.5%로 높아졌다. IT·모바일 매출은 전년 동기 대비 1분기 15.3%, 2분기 13.7% 각각 증가했다.롯데하이마트는 IT·모바일 상품군을 강화해 고객 접점을 확대하고, 인공지능 전환(AX)을 통해 판매 역량과 점포 운영 효율을 높인다는 방침이다. 회사 관계자는 "적극적인 AX 추진으로 생산성 강화에 주력할 계획"이라며 "고객 행동 데이터 분석, 고객 상담 및 판매지원 시스템 고도화에 AI를 접목하는 등 점포 운영 효율성도 높일 것"이라고 설명했다.* This article has been translated by AI. 2026-08-04 18:00:00