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  • Consumer Price Inflation Drops to 2.8% in July, Government Credits Price Cap Policy
    Consumer Price Inflation Drops to 2.8% in July, Government Credits Price Cap Policy Consumer prices rose 2.8% in July, marking a return to the 2% range for the first time in three months. The government estimates that the reduction in the maximum fuel price has lowered the inflation rate by approximately 0.3 percentage points.On August 4, the Ministry of Economy and Finance held the 72nd meeting of vice ministers on price issues, chaired by First Vice Minister Lee Hyung-il, to discuss July's consumer price trends, potential inflation risks, and strategies for addressing processed food prices.In July, consumer prices increased by 2.8% compared to the same month last year. This represents a decrease of 0.4 percentage points from June's 3.2%, marking a slowdown to the 2% range for the first time since April.Compared to the previous month, consumer prices fell by 0.2%, the first month-on-month decline in eight months.The decline in prices for agricultural, livestock, and marine products, as well as petroleum, contributed to the overall decrease. Agricultural and marine product prices fell by 0.7%, while petroleum prices dropped by 5.3%. Year-on-year, the increase in agricultural and marine products decreased from 3.2% in June to 0.9% in July, and petroleum prices fell from 24.7% to 15.5%.Vice Minister Lee stated, "In July, consumer prices fell month-on-month for the first time in eight months, and the year-on-year increase rate eased to the 2% range for the first time in three months. Thanks to policies such as the largest-ever discount support and the reduction of maximum prices, both agricultural and marine products and petroleum saw month-on-month decreases."The government believes that the seventh reduction in maximum fuel prices, implemented on June 27, has contributed to the slowdown in inflation. By lowering the maximum price by 150 won per liter, the July consumer price inflation rate was estimated to be reduced by about 0.3 percentage points.In contrast to the Eurozone, where the inflation rate rose from 2.8% in June to 2.9% in July due to rising energy prices, domestic prices showed a downward trend, according to the government.However, in August, the base effect from telecom costs is expected to push prices back up. Due to discounts on mobile phone bills implemented in August of last year, the increase in mobile phone charges this August is projected to raise the overall consumer price inflation rate by about 0.6 percentage points.Uncertainties from the Middle East conflict, extreme heat, and potential increases in food prices are also cited as upward pressures on inflation.Vice Minister Lee emphasized, "Despite the easing of the upward trend, the accumulated increases have kept prices at a high level, and the burden on households remains significant. Therefore, we must remain vigilant and make every effort to address these issues."The government will continue the maximum price system and on August 4 will select additional 'good gas stations.' It plans to secure crude oil imports and stockpiling capacity to stabilize the supply and prices of petroleum products.Discount events for all agricultural, livestock, and marine products will continue this month, while the government will promote the import of eggs and mackerel. If prices for mackerel, hairtail, and squid rise, the government plans to release purchased quantities at discounted rates. The supply trends of vegetables and farmed fish, which are sensitive to extreme heat and heavy rain, will also be closely monitored.The government is set to announce measures to stabilize prices of essential goods and alleviate the burden on vulnerable groups ahead of the Chuseok holiday next month. 2026-08-04 08:08:00
  • GC Green Cross Lowers Target Price by 16% Amid Revenue Delays, Expects Growth from Aliglo and Hunterase
    GC Green Cross Lowers Target Price by 16% Amid Revenue Delays, Expects Growth from Aliglo and Hunterase Korea Investment & Securities reported on August 4 that GC Green Cross experienced disappointing second-quarter results due to the deferral of revenue recognition for key products to the second half of the year. The firm maintained a 'buy' rating but lowered its target price by 16% to 160,000 won.Analysts Woo Hae-joo and Lee Da-young noted, "The consolidated revenue for the second quarter was 421.2 billion won, with an operating profit of 1.7 billion won, falling short of market expectations." They attributed this shortfall largely to the delayed revenue recognition for major products.In the blood products sector, some shipments' revenue recognition was pushed to the third quarter, leading to a decline in sales. The vaccine segment also faced challenges, as the production schedule for the flu vaccine was delayed, limiting the seasonal sales increase. Additionally, the immunoglobulin product Aliglo saw some revenue from global partner countries deferred to the fourth quarter, negatively impacting profitability.However, Korea Investment & Securities anticipates a significant improvement in performance starting in the second half of the year. They project annual revenue of 2.0054 trillion won and an operating profit of 70.5 billion won for the year.In particular, the third quarter is expected to reflect the deferred sales of the flu vaccine and Aliglo, along with the recognition of some advance payments from Eli Lilly's sale of its Curevo stake. The fourth quarter is projected to benefit from the global export expansion of Hunterase and the achievement of record quarterly sales for Aliglo.The analysts stated, "As the development of subcutaneous immunoglobulin (SCIG) formulations and investments in production facilities gain momentum, the long-term growth drivers will also strengthen," adding that the company's defensive characteristics as a pharmaceutical stock will become more pronounced compared to short-term performance volatility.* This article has been translated by AI. 2026-08-04 08:04:10
  • Death Toll from Venezuelan Earthquake Exceeds 6,000
    Death Toll from Venezuelan Earthquake Exceeds 6,000 The death toll from the earthquake that struck Venezuela has surpassed 6,000.On August 3, Jorge Rodriguez, the President of the National Assembly, reported via his Telegram that the current count of fatalities stands at 6,125.Additionally, over 61,000 people are receiving treatment in hospitals, and 16.5% of the debris caused by the earthquake has been cleared.A total of 6,433 buildings have been classified as high-risk, while 9,866 have been marked as restricted for habitation.According to Spain's EFE news agency, Venezuelan authorities have not accurately tracked the number of deaths and missing persons since July 24.The number of missing persons, reported as 157 on June 25, has not been officially updated, but civic organizations estimate that approximately 29,000 individuals are unaccounted for.As reported by AFP, more than 24,000 people are currently living in temporary shelters in the capital, Caracas, and La Guaira. The World Bank estimates the direct material damage from the earthquake at $19.6 billion, approximately 28.4 trillion won, and warns that reconstruction could take over a decade at the current pace.* This article has been translated by AI. 2026-08-04 08:04:00
  • Consumer Prices Rise 2.8% in July, Driven by Personal Services and Fuel Costs
    Consumer Prices Rise 2.8% in July, Driven by Personal Services and Fuel Costs Consumer prices increased by 2.8% in July, marking a return to the 2% range for the first time in three months, with significant rises in personal services coinciding with the vacation season. Fuel prices also continued to show double-digit increases.According to the National Data Agency's consumer price trends for July 2026, the consumer price index reached 119.77 (2020=100), reflecting a 2.8% increase compared to the same month last year. The consumer price increase rate had remained in the 2% range from January to April this year before rising to the 3% range in May and June.By category, diesel prices surged by 21.5%, while gasoline prices rose by 12.6%. Kerosene also saw a 20.5% increase. Industrial product prices climbed by 3.7%, contributing to the overall consumer price rise.Notably, personal services experienced a 3.5% increase year-on-year, with overseas group travel costs rising by 20.0% as the July vacation season began.Despite government discount initiatives, prices for livestock and seafood continued to rise. Domestic beef prices increased by 5.7%, imported beef by 8.7%, and mackerel by 7.0%.Additionally, prices for portable multimedia devices rose by 22.5%, and electric vehicles saw a 6.2% increase.The living cost index rose by 2.5% compared to the same month last year, while the fresh food index fell by 2.3%. The index excluding food and energy increased by 2.6% over the past year, and the index excluding agricultural products and fuel rose by 2.5%.* This article has been translated by AI. 2026-08-04 08:00:20
  • Stock Market Volatility Increases, But Dollar Supply Improves Leading to Lower Exchange Rates and Bond Yields
    Stock Market Volatility Increases, But Dollar Supply Improves Leading to Lower Exchange Rates and Bond Yields The KOSPI index has fluctuated between 9,000 and 5,000 for the first time in a month, reflecting increased volatility in the domestic stock market. However, in the foreign exchange and bond markets, improvements in dollar supply and a preference for safe assets have led to a simultaneous decline in exchange rates and yields.On August 3, the exchange rate of the Korean won against the U.S. dollar closed at 1,429.8 won in the Seoul foreign exchange market. The rate had surged to 1,559.2 won during trading on July 1, but has since dropped to the 1,420 range. Throughout July, the exchange rate fell by 125.4 won, marking the largest monthly decline since March 2009 during the global financial crisis. Notably, on July 30, the rate dipped to 1,418.0 won, the lowest level in nine months since October 20 of the previous year.The improvement in dollar supply, previously cited as a reason for the high exchange rate, has contributed to the strengthening of the won. Funds from SK Hynix's American Depositary Receipts (ADRs) have flowed in, and export companies have been selling dollars, further driving down the exchange rate.Foreign investors had been consistently selling in the domestic stock market. However, as stock prices surged in a short period, they began to rebalance their portfolios, increasing downward pressure on the won. Yet, from August 8 to 31, foreign investors turned to net buying, accumulating 6.1123 trillion won in the securities market, alleviating the downward pressure on the won.It is also believed that market interventions by the foreign exchange authorities of South Korea, the United States, and Japan supported the won's strength. On July 30, the won-dollar exchange rate fell sharply below 1,420 won, coinciding with a similar decline in the yen-dollar exchange rate, attributed to coordinated interventions by the three countries' authorities. Some analysts predict that the exchange rate could enter the 1,300 range in the second half of the year. Moon Da-woon, a researcher at Korea Investment & Securities, stated, "Demand for currency exchange for corporate tax prepayments and a slowdown in the U.S. economy are expected to lead to a trend of a weaker dollar." At the same time, bond yields have rapidly decreased. The perception of a peak in interest rates, coupled with a sharp drop in international oil prices and increased volatility in the stock market, has led to heightened demand for safe assets. According to the Korea Financial Investment Association, the yield on three-year government bonds rose to 3.959% on July 24 but has since declined, reaching 3.758% on July 31, a drop of 20.1 basis points (1 basis point = 0.01 percentage points). During the same period, the yield on ten-year government bonds fell from 4.447% to 4.261%, a decrease of 18.6 basis points.The market attributes this decline in yields to the resolution of some uncertainties following the Bank of Korea's expected interest rate hike. The perception that the central bank would not pursue further tightening after the rate increase had already been factored in, leading to an influx of bond buying.Looking ahead, short-term bonds are expected to have additional room for decline as the market has largely priced in interest rate hikes and domestic and external uncertainties in August. In contrast, long-term bonds may see limited declines due to robust economic trends, expansionary fiscal policies, and rising long-term U.S. Treasury yields. Kim Sung-soo, a researcher at Hanwha Investment & Securities, noted, "The yield on three-year government bonds is expected to decline again as the Monetary Policy Committee meeting at the end of this month approaches. For long-term bonds, given the solid growth, proactive fiscal measures, and rising global long-term interest rates, it is appropriate to keep the upper limit for ten-year government bonds at 4.70%."* This article has been translated by AI. 2026-08-04 08:00:00
  • Daishin Securities Lowers Hanseongs Target Price to 30,000 Won Amid Profitability Concerns
    Daishin Securities Lowers Hanseong's Target Price to 30,000 Won Amid Profitability Concerns Daishin Securities announced on August 4 that it has lowered its target price for Hanseong from 40,000 won to 30,000 won, citing a decline in gross profit margin during the inventory depletion process. However, it maintained a 'buy' rating based on the potential for consumer recovery by year-end. Yoo Jeong-hyun, a researcher at Daishin Securities, stated, "The second-quarter sales growth rate met market expectations," but noted, "Despite an increase in discount rates during the inventory depletion process, the additional sales growth effect was not significant." He predicted that the stock price is likely to remain stable until the third quarter due to a slowdown in domestic clothing consumption. Daishin Securities projected Hanseong's second-quarter sales to reach 363.2 billion won, a 7% increase compared to the same period last year, while operating profit is expected to rise 525% to 4.6 billion won. However, this operating profit falls below market expectations. Yoo commented, "With significant growth in department store channel consumption, offline sales increased by 8.7% year-on-year, and key brands recorded double-digit growth rates," indicating that overall growth was satisfactory. However, he added, "The gross profit margin fell by 0.9 percentage points year-on-year as inventory was cleared for newly launched imported brands from 2022 to 2023, and the profitability decline during the off-peak second quarter resulted in somewhat disappointing operating profit." He further noted, "For the time being, the growth rate of domestic clothing consumption is likely to remain in the mid-single digits, but considering the potential for consumer recovery and performance improvement by year-end, the recent stock price adjustment could present a buying opportunity." 2026-08-04 07:40:10
  • Dwindling Market Funds: 16 Trillion Won Vanished in a Month as Margin Loans Liquidated
    Dwindling Market Funds: 16 Trillion Won Vanished in a Month as Margin Loans Liquidated ◆Major News from Ajou Economy▷Seven out of ten domestic stocks lost value in July; what to expect in August?- As of the end of last month, investor deposits and margin loan balances have sharply decreased. Analysts suggest that the market's strength is rapidly weakening due to the exit of waiting funds and the liquidation of over 3 trillion won in margin loans overnight.- According to the Korea Financial Investment Association, as of July 31, investor deposits (excluding deposits for trading in derivatives) totaled 104.1354 trillion won. This marks a decrease of 15.9483 trillion won (13.3%) compared to early July (120.8367 trillion won). Compared to the record high of 139.6948 trillion won on June 4, nearly 35.5594 trillion won (25.5%) has evaporated in less than two months.- The liquidation of leveraged funds has also intensified. As of July 31, the total balance of margin trading loans was 28.935 trillion won, plummeting by 3.2181 trillion won (10%) in just one day from the previous day (32.1531 trillion won). The margin balance, which reached 37.7922 trillion won at the beginning of July, has fallen to the 20 trillion won range after 8.8572 trillion won was repaid over the month.- By market, as of July 31, 2.6681 trillion won in margin balances disappeared in the securities market in one day, while 550.1 billion won vanished in the KOSDAQ market. This was a result of forced sell-offs due to increased stock price volatility and a surge in stop-loss repayments to prevent further losses.- The high-risk trading indicator, margin trading receivables, recorded 1.6615 trillion won, with actual forced sell-off amounts reaching 122 billion won, indicating that the forced sell-off ratio was 7.1% of the receivables. ◆Key Reports▷U.S.: Most uncertainty factors fueling interest rate hikes have already been revealed - Demand for funds in the U.S. is outpacing supply, putting consistent upward pressure on interest rates in the long term.- The significantly increased demand for funds in the U.S. is driven not only by government fiscal spending but also by major tech companies raising capital for AI infrastructure.- Given that AI is a key front in the competition for dominance, it is unlikely that the Federal Reserve will intentionally choose to suppress this demand through tightening measures.- The U.S. is in a position of spending money on AI investments, and as large corporations increase their investments, the taxable profits subject to corporate tax decrease. Customs revenue is also likely to remain low for the time being.- Therefore, during monetary tightening, it will be difficult for fiscal policy to compensate for the burden, making actual interest rate hikes more cautious. ◆Major Announcements After Market Close (3rd)▷SK decided on an interim dividend of 1,500 won per share, totaling 82.6 billion won.▷Korea Credit Information, decided on a quarterly dividend of 250 won per common share, totaling 3.5 billion won.▷Hyundai FutureNet decided to acquire 1.18 million shares of its own common stock.▷Exem decided on a stock consolidation, increasing the par value from 100 won to 500 won.▷Celltrion applied for a change in the clinical trial plan for CT-P44 in Korea. ◆Fund Trends (as of July 31, excluding ETFs)Domestic equity funds: 55.7 billion wonOverseas equity funds: -14.6 billion won ◆Today's Schedule (Tuesday)Korea: Consumer Price Index (July)U.S.: Export-Import Statistics (June), Job Openings and Labor Turnover Survey (JOLTS) (June)* This article has been translated by AI. 2026-08-04 07:40:00
  • Choi Yena Reflects on Childhood Battle with Lymphoma
    Choi Yena Reflects on Childhood Battle with Lymphoma Singer Choi Yena revealed that she battled lymphoma during her childhood.On the August 3 episode of SBS's 'My Remaining Love,' young adults who have faced terminal diagnoses or have been on the brink of death shared their experiences while seeking love.Kim Sun-ho, who became a stage 4 cancer patient during his military service, said, "I couldn't tell my parents. They were already struggling, and I felt like I was becoming a burden to them." He added, "Given our family's difficult circumstances, I felt like I was adding to their load."Reacting to the participants' stories, Jung Yong-hwa commented, "It's such a time when you want to have fun and do so much, yet you are fighting against illness..."Choi Yena specifically shared, "I was also a childhood cancer patient with lymphoma. While I can relate to the participants' stories, it feels strange to hear them."She continued, "When I was sick as a child, I constantly saw my parents and family breaking down and feeling upset, which made me feel guilty. I thought, 'I must have done something wrong.' I empathized a lot with their experiences."Choi added, "My parents had to sell kimbap to cover my medical expenses. Even as a child, I remember that vividly," evoking sympathy from the audience.* This article has been translated by AI. 2026-08-04 07:40:00
  • Trump Pressures U.S. Oil Companies to Lower Gas Prices
    Trump Pressures U.S. Oil Companies to Lower Gas Prices President Donald Trump has pressured U.S. oil companies that have profited significantly from the Iran conflict to lower retail gasoline prices.On August 3, during a press briefing at the White House, Trump mentioned ExxonMobil and Chevron, stating, "They are making too much money. I don't like it." He added, "They should return some of the profits to the people," emphasizing that it would be beneficial to lower the prices consumers pay.Trump also directly called out Chevron CEO Mike Wirth on Truth Social, urging him to "immediately lower retail gasoline prices."As international oil prices and refining margins surged due to the Iran conflict, U.S. oil companies reported significant earnings improvements in the second quarter of this year.Chevron's net income reached $12.1 billion, nearly five times higher than the same period last year. ExxonMobil's net income also more than doubled to $14.5 billion.While oil companies' profits have soared, American consumers are facing increased gasoline costs. The average price for regular gasoline in the U.S. is about $4.10 per gallon, more than a 30% increase compared to before the U.S. and Israel began their attacks on Iran.Trump has argued that "once the war is over, international oil prices will plummet," insisting that any decrease in oil prices should be quickly reflected at the pump.In June, he directed the Department of Justice to investigate oil companies' pricing practices, stating that the decline in international oil prices was not being adequately reflected in gasoline prices.The oil industry has countered that the rise in gasoline prices is not due to individual companies' pricing decisions but rather stems from global oil supply and uncertainties surrounding the Strait of Hormuz.* This article has been translated by AI. 2026-08-04 06:44:00
  • The Bilbao Effect and the Noodle Effect
    The Bilbao Effect and the Noodle Effect The unseen roots beneath the ground can be up to 40 times larger than the visible trees above. This is why they are often referred to as the kingdom of roots. Architecture, as a culture, resembles a large tree that grows from this kingdom of roots. Thus, the vitality of well-established architectural heritage often lasts for thousands of years.- The Economic Impact of Architectural CultureMeasuring the economic impact of culture is inherently challenging. However, by examining its ripple effects, we can better understand its economic significance. The most visited places by tourists often symbolize the cities they inhabit. Consequently, many cities strive to create landmarks as part of high-quality, high-value marketing strategies.Successful landmarks elevate a city's prestige and foster civic pride, promoting community unity. When these landmarks attract international tourists, they significantly boost the local economy and enhance the city's competitiveness. Let’s explore the efforts made by other cities to achieve such effects.- Guggenheim Museum in BilbaoWith over 33,000 titanium panels that change colors like the flowing waters of the Nervión River, the Guggenheim Museum in Bilbao is a stunning example of architectural culture. After the decline of the steel industry left the area in ruins, the city negotiated to host the Guggenheim Museum under specific conditions: the city would provide support without interference, offer the land for free, cover all construction costs, and entrust the design and operation to the Guggenheim Foundation.This led to the selection of Frank Gehry, a master of deconstructivism known for his dynamic curves and freeform designs. The construction lasted seven years and cost €135 million, more than ten times the initial budget. This substantial investment was recouped within five years of opening, attracting one million visitors annually. The museum has since become a source of pride for the people of Bilbao, a symbol of Spain, and a global architectural heritage site, coining the term 'Bilbao effect' in economic discussions.- Metropol Parasol in SevilleThe Metropol Parasol, located in Plaza de la Encarnación in Seville, is the largest wooden structure in the world. This site, where cultural heritage from the old capital of Andalusia lies buried beneath, was once a traditional market. The challenge was to create a new multifunctional cultural space that included a plaza, restaurants, performance venues, and an observation deck overlooking the historic city.Through an international competition, the innovative design by Jürgen Mayer was selected. Despite facing technical issues, budget overruns, and a six-year construction period, it opened in April 2011 and has since become a prominent symbol of Seville, attracting the third-highest number of visitors in the city.As the sun sets and the vibrant night lights begin to dance, the Metropol Parasol showcases the architectural culture of the city, delighting visitors with its stunning display.- Noodle SoundscapeThomas Heatherwick, designer of the Vessel TKA in New York, which cost an estimated $200 million, has created the 'Soundscape' on Noodle Island, an aerial garden above the Han River in central Seoul. This design reflects the existing landscape of the island below and projects the flowing waters of the Han River, creating a fantastical world that allows visitors to experience the changing natural scenery of the seasons and time.From the elevated garden, visitors can enjoy panoramic views of Seoul, with the sounds and scents of life flowing into their hearts like a heavenly garden. As they stroll through the misty, unstructured garden, people from around the world will once again dance and sing along with Korea's cultural sensibilities. The cultural value of this site, which is set to become a new symbol of Seoul, is immeasurable, and we should ask those who come to visit.* This article has been translated by AI. 2026-08-04 05:04:00