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  • 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
  • Steel Industry Performance Mixed Amid Ongoing Downturn
    Steel Industry Performance Mixed Amid Ongoing Downturn The performance of South Korean steel companies in the second quarter of this year varied based on product composition and export ratios. While Dongkuk Steel and KG Steel improved their results through increased exports, Posco Holdings benefited from higher sales prices and volumes. In contrast, Hyundai Steel reported a decline in operating profit compared to the same period last year.According to industry sources on August 3, Hyundai Steel recorded consolidated sales of 6.1073 trillion won and an operating profit of 577 billion won in the second quarter. Although sales increased by 2.7% year-on-year, operating profit fell by 43.3%.The company's heavy reliance on the domestic market proved to be a disadvantage. Hyundai Steel has a significant share of construction-related products, including automotive steel plates and rebar, but the ongoing slump in the domestic construction sector has negatively impacted its performance. While sales volumes increased compared to the previous quarter, the burden of raw material costs and high exchange rates limited the ability to raise product prices sufficiently, restricting profit recovery.In contrast, Dongkuk Steel, KG Steel, and Posco Holdings reported improved results compared to the same period last year, driven by increased exports, higher sales volumes, and rising product prices.Dongkuk Steel achieved standalone sales of 995.5 billion won and an operating profit of 456 billion won in the second quarter, marking increases of 11.4% in sales and 52.3% in operating profit year-on-year.As the industry enters its seasonal peak, sales of construction steel products have risen, and production and sales of shipbuilding plates have also expanded. Continued demand for large infrastructure investments, including semiconductor plants and artificial intelligence (AI) data centers, along with increased overseas sales, contributed to improved profitability.KG Steel reported consolidated sales of 896.4 billion won and an operating profit of 431 billion won in the second quarter, reflecting year-on-year increases of 11.3% in sales and 16.9% in operating profit. The export ratio reached a record high of 53.1% in the second quarter. The depreciation of the won improved export profitability, offsetting the sluggish domestic steel demand.Posco Holdings also reported improved results compared to the same period last year, driven by increased steel sales prices and volumes. The company recorded consolidated sales of 19.259 trillion won and an operating profit of 8.19 trillion won in the second quarter, with operating profit surging by 34.9%.Performance varied among companies based on their reliance on the domestic market, product composition, and export ratios. Those that expanded overseas sales or secured demand from data centers, shipbuilding, and the energy sector fared relatively well.An industry insider noted, "The current steel industry is experiencing a 'recession-type surplus,' focusing on profitability defense through export expansion and cost reduction rather than a full-fledged rebound. We expect that large-scale infrastructure projects scheduled for the second half will support steel demand and gradually improve market conditions."* This article has been translated by AI. 2026-08-04 05:04:00
  • Trump Criticizes Irans Dual Approach Amid Talks Delay
    Trump Criticizes Iran's Dual Approach Amid Talks Delay As President Donald Trump anticipated a potential meeting with Iran, he postponed a large-scale airstrike while Iran's Foreign Minister Abbas Araghchi traveled to Iraq for a pilgrimage. During his trip, he continued phone conversations with mediating countries like Pakistan and Oman.On August 3, CNN reported that Trump expressed pessimism over the lack of a scheduled meeting between the U.S. and Iran, which he had previously announced. In a post on social media platform Truth Social, he criticized the Iranian leadership as "incredibly duplicitous," stating, "They have requested talks to the point of being called 'begging,' yet publicly and proudly claim they are negotiating only with Oman and not with the U.S." Trump emphasized, "Nothing will happen unless there is a deal or complete surrender," reiterating that Iran will never obtain nuclear weapons.Initially, Trump hinted during a meeting with reporters aboard Air Force One on August 2 that if an agreement regarding the Strait of Hormuz was reached, there could also be a nuclear agreement, suggesting negotiations would begin on August 3. He indicated that further discussions with Iran were planned.However, following these reports, Iran denied any negotiations, stating they were in talks with Oman to establish a temporary maritime route for vessels. According to Azerbaijan's Trend News Agency, Iranian Foreign Ministry spokesman Esmail Baghaei announced at a press conference on August 3 that there would be no meeting between the U.S. and Iran, and that Araghchi was visiting Iraq to attend the Arbaeen pilgrimage, while the rest of the negotiation team remained in Iran.During his visit to Iraq, Araghchi also held phone conversations with officials from Muslim-majority countries, including Pakistan and Oman. According to Iran's semi-official Mehr News Agency, Araghchi spoke with Pakistan's Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar on August 3, discussing issues related to peace and regional development. He also discussed regional development with Oman's Foreign Minister Sayyid Badr Albusaidi.There are speculations that China may play a mediating role in easing tensions and facilitating negotiations between the U.S. and Iran. However, spokesman Baghaei dismissed this notion during the August 3 press conference, stating, "China is a close friend and shares concerns about regional conflicts and instability with Iran," but emphasized that Pakistan is the mediator for U.S.-Iran negotiations, with Qatar assisting if necessary. He described China's role as similar to that of other countries in providing support.* This article has been translated by AI. 2026-08-04 05:04:00
  • President Lee Holds Marathon Meeting on Real Estate and Stock Market After Return from Trip
    President Lee Holds Marathon Meeting on Real Estate and Stock Market After Return from Trip President Lee Jae-myung convened a marathon meeting on real estate and the stock market immediately after returning from his trip to the United States and South America on August 3. The meeting lasted for 7 hours and 30 minutes.President Lee diagnosed the sluggish housing supply as having led to a 'supply cliff' and instructed his team to secure available housing units while mobilizing all administrative, financial, fiscal, and regulatory measures to accelerate supply.Chief Presidential Spokesperson Kang Yoo-jung stated in a written briefing that President Lee returned to the Blue House at 11:30 AM and immediately began the 'Recent Real Estate and Stock Market Review Meeting,' which ran from 3 PM to 10:30 PM.During the meeting, President Lee received reports on the current state of the real estate and stock markets from Prime Minister Han Seung-soo and relevant ministers and chairpersons. He posed practical and specific questions to the heads of relevant departments, sharing concerns about market conditions and urging them to actively devise possible solutions.The meeting focused on the ongoing housing supply shortage, particularly in the metropolitan area, and practical measures to expand supply.President Lee emphasized the importance of securing supply volumes and reducing the time it takes for actual occupancy, stating, "The continued sluggish housing supply since 2022 has led to a supply cliff situation."As a result, the government is expected to reassess available supply volumes, including public land and idle sites, and comprehensively review measures to shorten permits and improve project procedures, as well as financial and regulatory support. There will also be a focus on enhancing execution power to ensure that announced supply plans quickly lead to construction and occupancy.President Lee instructed Prime Minister Han and relevant ministers to conduct a comprehensive review of existing housing supply measures. He requested that they examine not only supply targets and project schedules but also the housing demand felt by actual users, urging them to implement realistic measures meticulously.The meeting also addressed not only real estate issues but also additional measures regarding single-stock leveraged exchange-traded funds (ETFs), which have been cited as factors in the recent stock market decline, as well as public sentiment regarding the government's announced real estate tax reform plan and specific reviews of additional financial and supply measures.However, the Blue House did not disclose specific discussions regarding the stock market situation or other issues.At the conclusion of the over seven-hour meeting, President Lee instructed, "Even if it is difficult, prepare additional reports and follow-up meetings related to finance and housing supply within 2-3 days." 2026-08-03 23:24:00
  • Korean Finance Minister Proposes Major Tax Reforms, Exempting Properties Under $15 Million
    Korean Finance Minister Proposes Major Tax Reforms, Exempting Properties Under $15 Million Koo Yun-cheol Proposes Major Tax Reforms, Exempting Properties Under $15 Million Koo Yun-cheol, the Deputy Prime Minister and Minister of Economy and Finance, appeared on KBS News9 to explain the key points of the 2026 tax reform plan. During the broadcast on August 3, Koo outlined the reform's objectives, stating, "The first goal is to support economic growth by introducing a new domestic production tax credit this year," which includes provisions for small modular reactors (SMRs) as part of national strategic technologies. He added that the comprehensive tax reform plan also encompasses real estate tax reform, rationalization of tax expenditures, and adjustments to the family business inheritance deduction. Regarding the real estate tax reform, Koo emphasized, "The most significant expected outcome is highlighting the residential aspect of housing as a place for people to live." To stimulate the sluggish housing market, Koo proposed incentives such as tax benefits for homeowners who sell properties they have lived in for over ten years. He also mentioned that landlords would receive benefits if they sell their properties within a certain period after the lease ends, aiming to increase the availability of homes on the market. On the threshold for increased tax burdens, set at a property value of 40 billion won (approximately $30 million), Koo noted, "Only about 0.4% of homes fall into the category of properties valued at over 40 billion won," indicating that the plan aims to normalize taxation starting from the 40 to 50 billion won range. Bithumb Aims for IPO by 2028, Promises Enhanced Transparency Cryptocurrency exchange Bithumb has announced plans to complete its initial public offering (IPO) by 2028, focusing on establishing a transparent governance structure. On August 3, Bithumb disclosed its IPO progress on its official website, stating that it aims to prove management transparency and maximize corporate value. According to the timeline, Bithumb will prioritize enhancing its internal control systems and preparing for the transition to Korean International Financial Reporting Standards (K-IFRS) by the end of this year. The company plans to apply for preliminary listing review next year and complete the IPO process in 2028. Key preparations for a successful IPO include establishing a risk management system comparable to regulated financial institutions, improving management transparency through business restructuring, fostering a transparent market environment through proactive information disclosure, and collaborating with external experts to facilitate the listing process. Additionally, Bithumb has committed to establishing a transparent governance structure, strengthening compliance management, enhancing investor protection measures, securing sustainable growth drivers, and implementing a global-level management system. Ceuta Faces Ongoing Tensions After Influx of 60,000 Immigrants, 72 Dead The Spanish enclave of Ceuta in North Africa is grappling with severe repercussions following an unprecedented influx of 60,000 immigrants. While the wave of migration has subsided, internal community tensions are escalating, alongside growing criticism of Morocco's handling of the situation. According to Yonhap News on August 3, Ceuta authorities have regained control of the city, and most Moroccan immigrants have returned home. However, tensions remain high throughout the urban area, with at least 72 reported deaths among those attempting to cross the border. The most evident fallout is the ideological conflict among residents. A local resident identifying as a supporter of the far-right Vox party stated, "We cannot open our doors to everyone," criticizing the left-leaning central government's immigration policies. Conversely, a group of leftist protesters gathered nearby, declaring, "The community's coldness towards those who desperately crossed the border is shameful." The situation for immigrants who crossed into Ceuta with hopes of reaching mainland Europe is dire. Many, misled by rumors on social media that the border was open, faced closed shops, police crackdowns, and hostility from some residents, shattering their hopes. Most have returned to Morocco, unable to endure hunger. Currently, fewer than 1,000 immigrants are estimated to remain in Ceuta, suffering from severe hunger due to strict security measures enforced by authorities. Japan's Kumamoto Hit by Earthquake and Heatwave, Government Pledges $182 Million Japan's Kumamoto Prefecture has been struck by a powerful 7.1 magnitude earthquake, resulting in 38 fatalities, compounded by an unprecedented heatwave exceeding 40 degrees Celsius (104 degrees Fahrenheit). As the suffering of evacuees intensifies, the Japanese government has promised significant budgetary support and administrative assistance. On August 3, local media reported that the maximum temperature in Kumamoto City reached 40.3 degrees Celsius, marking the first time temperatures have surpassed 40 degrees in the region. Following the earthquake on July 28, which has claimed 38 lives, the extreme heat has further complicated recovery efforts and the living conditions of evacuees. In response, Japanese Prime Minister Sanae Takaichi visited the affected area for the first time since the earthquake. She announced plans to allocate approximately 20 billion yen (about $182 million) for recovery efforts in Kumamoto. Additionally, Takaichi stated that the government would designate the situation as a "specific emergency disaster" to expedite various administrative procedures involved in the recovery process. A large ferry is scheduled to arrive at Yatsushiro Port in Kumamoto on August 4 to provide temporary housing and medical services for evacuees. Takaichi's inspection was conducted using a Japan Ground Self-Defense Force helicopter, allowing her to assess the damage at the Aeon Mall Kumamoto, which suffered explosions and collapses, as well as the Yatsushiro paper mill, where a chimney had fallen. Defense Minister Orders Special Discipline Check Amid Operational Failures In response to ongoing concerns about operational discipline in frontline units, the Ministry of National Defense has initiated a comprehensive review of military conduct. On August 3, according to Yonhap News, Defense Minister An Gyu-baek convened an emergency meeting of key military commanders at the Joint Chiefs of Staff Operations Command Center to implement a special discipline check across the armed forces. An criticized recent operational failures, directing the establishment of a "Joint Special Discipline Check Task Force" led by the Defense Ministry's inspector general to focus on operational discipline and reporting systems until the conclusion of the "Ulchi Freedom Shield" exercise. He emphasized that the core of unit operations should be based on current operations and practical training grounded in fundamentals and principles, urging the military to become a strong force that earns public trust and instills fear in adversaries, remaining resilient against any threats. This initiative follows recent controversies regarding unarmed sentry duty at frontline outposts and a mistaken identification incident involving a U.S. drone. Prior to the meeting, military authorities decided to suspend and investigate Major General Han Gi-seong, commander of the Army's 1st Corps, due to accountability issues. Additionally, military leaders at the meeting analyzed recent North Korean activities and meticulously reviewed military readiness. They also committed to ensuring disaster preparedness within the military, considering the ongoing extreme heat and taking proactive measures to prevent casualties.* This article has been translated by AI. 2026-08-03 21:48:20
  • Koo Yun-cheol: Exempt Properties Under 20 Billion Won from Comprehensive Real Estate Tax
    Koo Yun-cheol: Exempt Properties Under 20 Billion Won from Comprehensive Real Estate Tax Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, appeared on KBS News9 to explain the purpose and key details of the 2026 tax reform plan.During the broadcast on August 3, Koo stated that the reform aims to support economic growth by introducing a new domestic production tax credit this year, which includes aspects related to national strategic technologies such as small modular reactors (SMR). He added that the comprehensive tax reform plan also encompasses real estate tax reform, rationalization of tax expenditures, and adjustments to the family business inheritance deduction to ensure fair tax equity.Regarding the real estate tax reform, Koo emphasized that the most significant expected benefit is highlighting the residential aspect of housing as a place for people to live.To stimulate the stagnant transaction market, Koo proposed incentives such as capital gains tax benefits for homes sold after more than ten years of residence. He also mentioned that rental property owners would receive benefits if they sell their properties within a certain period after the rental period ends, aiming to increase the availability of housing on the market.On the threshold for increased tax burdens set at 4 billion won, Koo noted that homes valued at over 4 billion won account for only 0.4% of the total. He stated that the plan aims to normalize taxation starting from the 4 billion to 5 billion won range.In response to concerns from high-value property owners and single-home owners, Koo clarified that properties valued under 3 billion won would see tax reductions, and those under 2 billion won would be completely exempt from the comprehensive real estate tax. He explained that adjustments for properties up to 4 billion won, which represent only 1.1% of all homes, are minimal, while the normalization for properties over 4 billion won (0.4%) addresses the previously low tax burden compared to past home price increases.Addressing criticisms that tax regulations could worsen the rental market and harm genuine buyers, Koo assured that measures are being developed to alleviate difficulties for non-homeowners, young people, and newlyweds, including promoting housing supply and providing financial support.When asked about concerns over supply shortages, Koo stated that the government is working to maximize housing supply by reviewing the release of some greenbelt areas, as well as utilizing locations near subway lines and state-owned military facilities. He emphasized that a report to the public would be forthcoming.Meanwhile, in response to criticisms regarding the extension of the capital gains tax exemption for multiple homeowners, Koo explained that the government considered the opinions and realistic conditions of multiple homeowners while implementing a grace period in the context of raising taxes. He requested understanding that the adjustments reflect the voices of the citizens incorporated into the tax reform plan. 2026-08-03 21:44:00