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  • Chip stock swings push Koreas FX turnover to record on hedging demand
    Chip stock swings push Korea's FX turnover to record on hedging demand SEOUL, July 31 (AJP) - The same forces driving wild swings in South Korea's semiconductor stocks are now reshaping the country's foreign-exchange market. As AI-fueled volatility draws record foreign participation in Seoul's equity market, demand for currency hedging has pushed daily foreign-exchange turnover to an all-time high, a trend highlighted Friday when unprecedented overseas buying of Korean shares generated heavy FX trading but only a muted immediate rally in the won. The average daily value of spot and foreign-exchange derivatives transactions reached a record $121.44 billion in the April-June quarter, up 18.3 percent from $102.65 billion in the previous quarter, according to the Bank of Korea. The figure surpassed the previous record set only three months earlier and marked the highest level since the central bank began compiling the quarterly data in 2008. "The increase reflected a rise in foreign investors' purchases and sales of Korean-listed stocks and bonds, along with increased demand to hedge against fluctuations in the won," a BOK official said. Friday's trading provided a vivid example of that relationship. Foreign investors poured more than 7 trillion won into KOSPI shares — the largest single-day net purchase on record — while buying another 1.7 trillion won on the KOSDAQ as Samsung Electronics and SK hynix staged historic rallies after stronger-than-expected earnings from Microsoft and Amazon revived confidence in global AI infrastructure spending. Despite the record equity inflows, the won's gains were comparatively restrained. As of 3:30 p.m., the dollar traded at 1,425.9 won, strengthening from around 1,434 won earlier in the session but failing to mirror the magnitude of the stock-market surge. Foreign purchases of equities do not immediately translate into demand for won because stock trades settle several days after execution, delaying the accompanying currency conversion, a BOK official said. Dealers also cited importer demand for dollars as the won strengthened earlier in the day, while a modest weakening of the Japanese yen after the Bank of Japan kept interest rates unchanged and a rebound in the U.S. dollar index toward the 100 level also weighed on the Korean currency. The BOK's data suggest that heightened stock-market volatility is increasingly spilling over into currency markets through greater hedging activity. Spot transactions led the increase, climbing 27.7 percent from the previous quarter to a daily average of $54.11 billion. Won-dollar spot trading rose 31.4 percent to $43.74 billion, accounting for most of the increase. Trading involving non-residents jumped 41.1 percent to $17.76 billion, significantly outpacing a 23.6 percent increase in interbank transactions and an 18.3 percent rise in trades with domestic customers. Foreign-exchange derivatives also remained active, with daily turnover rising 11.7 percent to $67.32 billion. Forward transactions climbed 21.6 percent to $23.03 billion, led by non-deliverable forwards (NDFs), whose turnover increased 21.2 percent to $18.84 billion. The rise in NDF trading indicates stronger demand among offshore investors and financial institutions to hedge or adjust exposure to the Korean won without exchanging the underlying currencies at settlement. Foreign-exchange swaps, the largest segment of Korea's derivatives market, increased 7.5 percent to $42.03 billion, while currency swaps edged down 2.1 percent to $1.89 billion. By institution, turnover at domestic banks rose 20.1 percent to $55.51 billion a day, while Korean branches of foreign banks handled $65.93 billion, up 16.8 percent from the previous quarter. The central bank noted that the figures measure the combined value of purchases and sales rather than net capital flows, meaning the record reflects heightened trading activity and hedging demand rather than the direction of cross-border capital movement. 2026-07-31 15:41:53
  • Kang Dong-won, Park Ji-hyun, and Eom Tae-goos Wild Thing Released on Netflix Today
    Kang Dong-won, Park Ji-hyun, and Eom Tae-goo's 'Wild Thing' Released on Netflix Today The film 'Wild Thing' is now available to audiences worldwide through Netflix.Netflix released 'Wild Thing' on July 31. The film is a comedy about a mixed-gender dance group called Triangle, which once dominated the music scene but disbanded overnight due to an unexpected incident. The story follows their reckless challenge to seize a chance at revival 20 years later.'Wild Thing' premiered in theaters in June, featuring a storyline centered around a 2000s mixed-gender dance group, Y2K-inspired music, and comedic performances by the cast.Kang Dong-won, Eom Tae-goo, and Park Ji-hyun star as members of Triangle. Oh Jung-se plays the ill-fated ballad singer Seong-gon. The characters, each with distinct personalities, contribute to the film's comedic elements.The music and performances in the film are also key highlights. Triangle's debut song 'Love is' and Seong-gon's confession song 'I Like You' were produced by a team specializing in K-pop.'Wild Thing' is a collaboration between About Film, the production company behind the hit film 'Extreme Job,' and director Son Jae-gon, known for 'Not a Bad Day.' The film is now streaming on Netflix.* This article has been translated by AI. 2026-07-31 15:40:00
  • Hanwha Aerospace Surpasses 1 Trillion Won in Quarterly Operating Profit
    Hanwha Aerospace Surpasses 1 Trillion Won in Quarterly Operating Profit Hanwha Aerospace has entered a new era with quarterly operating profit surpassing 1 trillion won, driven by major export projects in Poland and other countries. The impact of a fire at its Daejeon factory on its performance has been limited.On July 31, Hanwha Aerospace reported consolidated sales of 9.2929 trillion won and operating profit of 1.3655 trillion won for the second quarter of this year. This marks a 47.2% increase in sales and a 58.5% increase in operating profit compared to the same period last year.Notably, this is the first time the company has exceeded 1 trillion won in quarterly operating profit. The stable growth of its core ground defense sector, along with improved performance from subsidiaries Hanwha Ocean and Hanwha Systems, contributed to this achievement.The ground defense sector recorded sales of 2.0175 trillion won and operating profit of 533 billion won, reflecting increases of 19% and 2%, respectively, from the previous year. In South Korea, major production projects such as the wheeled anti-aircraft gun Cheonho and the Cheonmu multiple rocket launcher are progressing steadily, while exports to Poland, Egypt, and the Middle East are on track to meet expectations.The aerospace sector achieved sales of 760 billion won and operating profit of 37 billion won, with sales increasing by 17% year-on-year due to a rise in military orders, resulting in a return to profitability.A Hanwha Aerospace official stated, "This year, we plan to deliver 30 K9 self-propelled howitzers and over 40 Cheonmu multiple rocket launchers to Poland. We expect to maintain strong performance in the second half of the year with deliveries to Poland, Egypt, and Australia." Concerns regarding the impact of the Daejeon factory fire on performance were found to be limited. The official noted, "The incident at the Daejeon factory did not significantly affect our second-quarter results, but some sales were deferred due to the production halt. We are working to normalize production." The order backlog for ground defense stands at approximately 38.3 trillion won, reflecting additional exports of K9 self-propelled howitzers to Finland in April and a supply contract for Cheonmu multiple rocket launchers to Estonia in May. The new orders for the second quarter are estimated at 1.5 trillion won.Subsidiaries also reported strong performances, supporting the overall results of the group. Hanwha Ocean recorded sales of 5.4432 trillion won and operating profit of 736.1 billion won, driven by high-profit projects such as LNG carriers, marking increases of 65% in sales and 98% in operating profit compared to the previous year. Hanwha Systems achieved record results with sales of 1.1176 trillion won and operating profit of 103.7 billion won, bolstered by increased exports of defense products, including multifunction radars (MFR).On the same day, Hanwha Aerospace reiterated that its recent investment in Korea Aerospace Industries (KAI) is a strategic move to enhance synergies in the defense and aerospace sectors. As of July 24, Hanwha Group's stake in KAI has increased to 14.64%. However, the company clarified that there are no plans for additional share purchases to secure management control.The official stated, "Acquiring approximately 15% of KAI shares with Hanwha Systems is a strategic investment aimed at establishing a collaborative framework in key defense and aerospace sectors. We are not currently in discussions with other shareholders, such as the Export-Import Bank, regarding additional share acquisitions." * This article has been translated by AI. 2026-07-31 15:32:00
  • Rika AI Selected as Supplier for 2026 AI Voucher Support Program
    Rika AI Selected as Supplier for 2026 AI Voucher Support Program Rika AI, a developer of AI-based recruitment solutions, has been selected as a supplier for the 2026 AI Voucher Support Program, aiming to expand AI human resources (HR) services for businesses.The AI Voucher Support Program assists companies wishing to implement artificial intelligence technologies by enabling them to utilize verified AI solutions for business innovation and digital transformation. With this selection, Rika AI has established a foundation to provide a broader range of AI-driven recruitment and talent management services.Rika AI offers a solution that supports the entire recruitment process by integrating generative AI with its proprietary HR-specific technology. The solution includes various features such as job posting creation, applicant analysis, job suitability matching, cover letter analysis, interview support, and recruitment data analysis, all aimed at enhancing the efficiency of corporate hiring operations.The company explained that it is advancing technology that not only utilizes generative AI but also combines HR data analysis techniques with large language models (LLM) to automate repetitive hiring tasks and support decision-making for recruitment personnel.Through this initiative, Rika AI plans to provide customized AI services tailored to individual companies' hiring processes. Key support areas include suitability analysis between applicants and job postings, resume analysis, automation of recruitment personnel tasks, development of company-specific recruitment assistants, and in-house HR agent development.As competition for talent intensifies, the demand for AI-based HR solutions among companies is also on the rise. Rika AI aims to help businesses reduce the burden of initial implementation costs while applying generative AI to recruitment tasks, thereby improving both productivity and the quality of hiring.Shin Hee-jae, CEO of Rika AI, stated, "Generative AI is rapidly evolving from a simple work assistance tool to an AI agent that performs core business functions. With this selection as a supplier for the AI Voucher Program, we will continuously enhance our services so that more companies can experience the tangible benefits AI offers in recruitment."He added, "In the future, we will expand the application of AI beyond recruitment to various business areas such as personnel management and task automation, growing as a partner that supports companies in easily adopting and utilizing AI."* This article has been translated by AI. 2026-07-31 15:32:00
  • HMM Completes Sale of Mombasa to Panstar, Launching Arctic Route Trials
    HMM Completes Sale of Mombasa to Panstar, Launching Arctic Route Trials The final piece of the government's Arctic route trial has fallen into place. HMM has sold its container ship, the Mombasa, to Panstar, paving the way for the Arctic route trials to commence. However, it is reported that HMM faced significant challenges balancing profitability and operational needs during the sale process.According to a report by Aju Economy on July 31, Panstar Group and HMM finalized the sales contract for the 2,758 TEU container ship Mombasa and completed the necessary procedures. The ship is scheduled to be delivered by mid-August.After acquiring the vessel, Panstar plans to conduct necessary modifications for polar navigation and obtain the Polar Ship Certificate, with the aim of deploying the ship for Arctic route trials departing from Busan by the end of August.The Mombasa is an ice-class container ship capable of operating in the Arctic Ocean. Initially, Panstar considered acquiring a new ship from a Chinese shipyard, but due to scheduling issues, the company shifted its focus to securing a vessel from a domestic shipping company, ultimately negotiating the acquisition of the Mombasa from HMM.However, the path to this agreement was reportedly fraught with difficulties. The Mombasa was previously used in HMM's regular operations but was selected for the government's Arctic route trial, leading to its sale.As a result, HMM appears to have felt a significant burden in this transaction, which goes beyond a simple second-hand ship sale. Currently, the international market price for similar 2,700 TEU container ships is around $36 million. However, investment banking sources suggest that the unique nature of the Arctic route trial may have made it difficult to fully reflect market prices in this deal.Reactions within the shipping industry regarding the Arctic route project are mixed. The route, which passes through Russian ports, faces significant uncertainty due to U.S. and European sanctions against Russia, and the viability and profitability of the route have yet to be established.Consequently, major domestic shipping companies have been hesitant to participate in the Arctic route project. In fact, Panstar was the only company to apply for participation in the Arctic route trial project announced in April.One industry insider stated, "Shipping companies are understandably burdened by the uncertainties stemming from sanctions against Russia, especially given that the economic feasibility of the Arctic route has not been sufficiently validated. The results of this trial will serve as a crucial benchmark for future participation by domestic shipping companies."Meanwhile, this contract marks a significant step forward for the government's Arctic route initiative. The trial, scheduled for late August, will assess economic viability, safety, and cargo securing capabilities. The outcomes of this trial are expected to have a considerable impact on the future of the Arctic route project and the involvement of private shipping companies.Han Jong-gil, a professor in the Department of Global Logistics at Seongkyunkwan University, emphasized, "The success of the trial depends not just on the operation of the vessel itself, but on how effectively we can secure stable cargo and mitigate international sanction risks. For the government's Arctic route project to proceed smoothly, consultations with the United States are essential." 2026-07-31 15:28:10
  • Uiwang Mayor Kim Seong-je Announces Plans for Local Economic Growth
    Uiwang Mayor Kim Seong-je Announces Plans for Local Economic Growth Kim Seong-je, the mayor of Uiwang, emphasized on July 31 that the Uiwang Industrial Promotion Agency will serve as a vital hub for driving the growth of local businesses and revitalizing the regional economy. On this day, Mayor Kim announced that from July 31 to August 14, a survey targeting small and venture businesses in the area will be conducted to prepare effective support policies centered on business needs ahead of the agency's planned launch next year. This survey is part of Mayor Kim's initiative to create a business-friendly environment in Uiwang and to enhance local economic policies by incorporating the voices of businesses into administrative decisions, thereby clarifying the agency's role and direction. The survey will include representatives and employees of small and venture businesses located in Uiwang, allowing them to participate easily through an online questionnaire. The questionnaire consists of 24 questions across four areas: general business status, demand for support programs from the Uiwang Industrial Promotion Agency, operational challenges faced by businesses, and policy suggestions, with an estimated completion time of about five minutes. Mayor Kim plans to use the results of this survey to supplement the findings from a feasibility study conducted in 2022 regarding the establishment of the agency and to develop a tailored support system that reflects the changing industrial environment and the realistic needs of businesses. In particular, the survey results will serve as essential foundational data for establishing the agency's medium- to long-term operational direction, identifying support programs, and budgeting. Citizens of Uiwang are expressing optimism about the establishment of the Uiwang Industrial Promotion Agency. Residents have consistently highlighted the need for an organization dedicated to supporting local businesses and fostering startups and ventures, believing that the agency's establishment will inject new vitality into the local economy. Above all, citizens hope that the growth of local businesses will lead to increased job opportunities for young people and stimulate local consumption, expecting tangible economic benefits that go beyond mere business support. One resident stated, "For good businesses to thrive in the area, job creation and urban competitiveness must increase. I hope the Industrial Promotion Agency plays a practical role in connecting businesses with the administration." Mayor Kim added, "We will actively incorporate diverse opinions from the field to ensure that we become a tailored partner organization providing the support businesses truly need." Meanwhile, Mayor Kim plans to develop industry support policies centered on business needs based on this survey and to cultivate the Uiwang Industrial Promotion Agency as a key platform for driving the growth of local businesses and economic development.* This article has been translated by AI. 2026-07-31 15:24:00
  • MG Dasum Volunteer Group Improves Living Conditions for Seniors
    MG Dasum Volunteer Group Improves Living Conditions for Seniors The Saemaul Geumgo Central Association announced that the MG Dasum Volunteer Group visited households of lonely seniors to conduct housing improvement activities on July 31. This initiative was organized to support the enhancement of living conditions for vulnerable populations. The Saemaul Geumgo Central Association previously collaborated with the Hwajujeongwon Village Management Social Cooperative, selected for the 'MG Hope Sharing Social Solidarity Economy Organization Development Project' in June, to carry out housing cleaning activities for lonely seniors, marking this as the second joint volunteer effort. About 40 volunteers, including members of the MG Dasum Volunteer Group and volunteers from Jemulpo District, participated in the effort. The volunteers collected accumulated household waste and debris, and conducted cleaning and pest control to eliminate odors and prevent insect infestations. The MG Dasum Volunteer Group, established in May, serves as the representative volunteer group of Saemaul Geumgo, continuing its support and sharing activities for vulnerable community members. A representative from the Saemaul Geumgo Central Association stated, “As a financial institution that grows with the community, we will continue our sharing activities for neighbors in need. We will also keep an eye on the difficulties faced by our neighbors and practice sharing that fosters mutual growth with the community.”* This article has been translated by AI. 2026-07-31 15:20:00
  • Chinas 052D Destroyer Launches Hypersonic Missile, Heightening Threat to US Carriers
    China's 052D Destroyer Launches Hypersonic Missile, Heightening Threat to US Carriers China's 052D destroyer has demonstrated the capability to launch the hypersonic anti-ship missile YJ-20. Recent footage released by state broadcaster CCTV shows the 052D destroyer firing the YJ-20 from a vertical launch system (VLS). The missile ignited its engine in mid-air after leaving the VLS.The YJ-20, which made its debut during a military parade in Beijing last September, is China's latest hypersonic anti-ship missile. Military experts estimate its range at approximately 1,500 kilometers and its top speed at over Mach 5, classifying it as a 'carrier killer' capable of evasive maneuvers in its terminal phase.Previously, the YJ-20 was believed to be exclusively deployed on the larger 10,000-ton Type 055 destroyers. However, this marks the first time it has been shown to be operational on the 7,500-ton Type 052D destroyers. While only 10 Type 055 destroyers are currently in active service, more than 30 Type 052D destroyers have been commissioned, significantly increasing the number of vessels capable of launching the YJ-20. Additionally, the Type 052D destroyers are actively conducting training exercises in the Taiwan Strait and the South China Sea.Notably, if multiple Chinese destroyers are operating simultaneously, they could potentially strike an approaching US aircraft carrier with several YJ-20 missiles at once. Experts suggest that intercepting multiple hypersonic missiles simultaneously is nearly impossible.Chinese military expert Song Zhongping told Global Times, 'The YJ-20 has demonstrated a high level of standardization capability,' adding that it could become a standard weapon on various advanced warships in the future.* This article has been translated by AI. 2026-07-31 15:16:20
  • Japans Yen Struggles Despite Currency Intervention
    Japan's Yen Struggles Despite Currency Intervention The yen's exchange rate against the dollar rose above 160 yen again less than a day after Japan's foreign exchange authorities intervened in the market. The intervention on July 30 was a nearly flawless operation, executed in coordination with the United States while market vigilance had eased. However, investors are now more focused on how long the intervention can hold.In fact, when the yen surpassed 160 yen per dollar at the end of April, Japan's foreign exchange authorities spent approximately 11.73 trillion yen (about $105 billion) to bring the rate back below that threshold, but it soon fell back again. This suggests that the intervention is merely buying time rather than changing market trends.The primary reason for this situation is the interest rate differential. The gap between U.S. and Japanese interest rates exceeds 2.5 percentage points, and the U.S. Federal Reserve hinted at the possibility of further rate hikes following its recent Federal Open Market Committee meeting. As long as this interest rate differential remains, the trend of yen depreciation is unlikely to change.The problem is that yen depreciation is no longer a 'blessing' for the Japanese economy. Historically, Japan thrived as a manufacturing nation, exporting automobiles and electronics. A weaker yen would enhance the price competitiveness of Japanese products and improve corporate performance, making yen depreciation a positive factor for the economy.However, the situation has changed. Many Japanese companies have relocated significant portions of their production overseas, meaning that a weaker yen does not automatically lead to increased exports or domestic production as it once did. Meanwhile, Japan relies heavily on imports for energy and food, causing import prices to surge due to yen depreciation. This has increased household burdens and perpetuated a vicious cycle of domestic economic contraction.Japan is also struggling to fully benefit from the global artificial intelligence revolution. While the country has attracted TSMC and is nurturing Rapidus, declaring a 'semiconductor revival,' the leadership in advanced semiconductor production still lies with Taiwan, South Korea, and the United States, despite Japan's competitive edge in key equipment and materials. Changing the industrial structure in a short time, even with substantial subsidies, is challenging. This week, a powerful earthquake in Kumamoto, designated as a 'semiconductor hub,' has further compounded these challenges.Another significant issue is the delay in structural reforms. Low birth rates and an aging population are reducing the labor force and dragging down potential growth rates, while national debt has soared to more than double the gross domestic product (GDP), yet fiscal spending continues to rise. This week, Japanese Prime Minister Sanae Takaiichi announced a reduction in the food consumption tax starting in April next year, despite concerns over increasing debt. In this context, the Bank of Japan is also in a position where it cannot implement rapid interest rate hikes, as doing so could simultaneously increase the government's interest burden and shock the financial markets.Ultimately, the recent yen depreciation is not merely an exchange rate issue. It reflects a confluence of factors, including the slowdown in Japan's economic growth, changes in industrial competitiveness, demographic challenges, and the limitations of monetary policy. The Japanese government's recent downward revision of its growth forecast for this year from 1.3% to 0.9% starkly illustrates this economic dilemma. While currency intervention may temporarily slow the pace of exchange rate changes, it cannot reverse structural trends.South Korea should not view this as merely Japan's problem. Without structural reforms to enhance future industrial competitiveness and productivity, relying solely on currency intervention or short-term measures will not safeguard either the currency or the economy, as Japan's current situation suggests.* This article has been translated by AI. 2026-07-31 15:16:00
  • Hotel Shilla Reports 606% Surge in Q2 Operating Profit Driven by Business Improvements
    Hotel Shilla Reports 606% Surge in Q2 Operating Profit Driven by Business Improvements Hotel Shilla has significantly increased its operating profit for the second quarter of this year, thanks to a focus on profitability in its duty-free business and improvements in its hotel sector.The company reported a consolidated operating profit of 61.1 billion won for the second quarter, marking a 606% increase compared to the same period last year, as announced on July 31.During the same period, sales totaled 971.8 billion won, a 5.2% decrease from the previous year, attributed to the closure of the DF1 duty-free area at Incheon International Airport.Despite challenging business conditions, Hotel Shilla stated that it continues to maintain stable performance through a profitability-focused operational strategy.The duty-free (TR) segment faced ongoing unfavorable conditions, including high exchange rates and a global economic slowdown. However, the company emphasized its commitment to strengthening its operational foundation through profitability-focused management.In the hotel and leisure sector, the company noted improvements in both sales and profitability, driven by the peak season for the hotel industry and the opening of new hotels.A Hotel Shilla representative stated, "In the duty-free sector, we will actively respond to changes in the domestic and international environments and the duty-free market, while in the hotel and leisure sector, we will enhance brand competitiveness based on our three major brand system. We will also respond proactively to customer demand with differentiated products and services."* This article has been translated by AI. 2026-07-31 15:16:00