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Tesla Considers Selling China Operations Amid U.S.-China Competition; Musk Calls It 'Fake News' Elon Musk, CEO of Tesla, has hinted at the possibility of merging his aerospace company SpaceX with Tesla, while the Wall Street Journal reported on July 30 that he is considering selling Tesla's China operations amid U.S.-China competition. However, Musk has denied these claims, labeling them as 'fake news.'According to the report, Musk has directed Tesla's management in recent years to clearly separate the U.S. and China divisions. This restructuring aims to ensure that at least the U.S. operations can survive in the event of geopolitical conflicts arising from U.S.-China tensions.Sources indicate that Musk is particularly concerned about Tesla's reliance on lithium iron phosphate (LFP) battery cells from China and the potential disruption to Tesla's semiconductor supply chain, which depends on TSMC, if China were to invade Taiwan. Tesla began producing electric vehicles at its Gigafactory in Shanghai, the first wholly foreign-owned car factory in China, in 2019, and plans to complete its battery plant, the Megafactory, in 2024.Additionally, some executives have reportedly been instructed to prepare for the separation of the China division in anticipation of a merger with SpaceX. Tesla advisors are said to be considering various options for the China operations, including spin-off, sale, or closure.This is due to concerns that a merger between SpaceX, which has significant dealings with the U.S. government, and Tesla could raise alarms regarding Tesla's Chinese subsidiary amid U.S.-China competition. The Chinese government is also likely to be vigilant about the potential for Gigafactory expertise and supply chains to be utilized by the U.S. military. Sources suggest that China may demand measures to prevent the illegal transfer of rare earth materials from Tesla to SpaceX.In February, SpaceX merged with Musk's AI startup xAI, and he recently hinted at the possibility of a merger between SpaceX and Tesla. During a conference call following Tesla's earnings report last week, he stated, 'As you can see from the various collaborations between SpaceX and Tesla in multiple areas, the overlap between the two companies is increasing,' adding that any merger should go through the appropriate procedures.However, any separation of the China division would significantly impact Tesla and could affect its valuation in a merger with SpaceX, according to the Wall Street Journal. Despite the rise of local electric vehicle manufacturers, China remains Tesla's second-largest market after the U.S.Meanwhile, Musk has refuted the Wall Street Journal's report about separating Tesla's China operations, calling it 'fake news.' He stated on social media platform X, 'This topic has never been discussed,' asserting that it is 'completely fake news.' Following Musk's denial, Tesla's stock rose 3.53% in the U.S. market on July 30. 2026-07-31 16:48:00
Cortis teams with Juicy J for 'Motion' ahead of Lollapalooza debut SEOUL, July 31 (AJP) - K-pop rookie boy group Cortis has enlisted Academy Award-winning rapper Juicy J for its latest digital single, "Motion," as the rookie group prepares for its debut appearance at Lollapalooza Chicago this weekend. BigHit Music said Friday that the track was released at 1 p.m. KST. Drawing inspiration from the Memphis hip-hop sound that emerged in the U.S. South during the 1990s, "Motion" reinterprets the genre through the group's own musical identity. All members of Cortis participated in writing and composing the song, while Juicy J appears as a featured artist. A founding member of Three 6 Mafia, the Memphis rapper won an Academy Award for "It's Hard out Here for a Pimp" from the film Hustle & Flow and has collaborated with artists including Katy Perry, Megan Thee Stallion and Travis Scott. Cortis said the project grew out of a relationship established before its debut. "Working with Juicy J wasn't simply about bringing together two artists," the members said. "It was built on mutual respect and a shared understanding of each other's music, and it's a song we've wanted to share for a long time." Following its performance at Lollapalooza Chicago, Cortis will return to Seoul to celebrate the first anniversary of its debut with concerts at Korea University's Hwajeong Gymnasium on Aug. 22 and 23. 2026-07-31 16:45:52
Record foreign buying sends Seoul's chip titans to daily limit SEOUL, July 31 (AJP) — South Korea's stock market staged one of the most dramatic reversals in its history Friday as record foreign buying and twin near-30 percent surges in Samsung Electronics and SK hynix erased days of panic selling, signaling that global investors remain convinced the artificial-intelligence investment boom is far from over. Foreign investors snapped up a record 7.18 trillion won ($5.2 billion) worth of KOSPI shares, fueling the benchmark index's 17.91 percent rally to 6,595.45 and adding about 834 trillion won to the market's capitalization in a single session. The tech-heavy KOSDAQ jumped 11.63 percent to 719.76. Institutions added another 1.18 trillion won, while retail investors booked profits, selling a net 8.25 trillion won. The buying was overwhelmingly concentrated in semiconductors, with SK hynix attracting a record 3.6 trillion won in foreign purchases, after drawing nearly 5 trillion won earlier in the day. SK hynix soared 29.95 percent to 1,718,000 won, locking at the daily upper limit and marking its biggest one-day gain since Korea widened daily trading bands to 30 percent in 2015. Samsung Electronics surged 26.81 percent to 262,500 won, the largest single-day advance in the company's history. The rally spread rapidly across Korea's semiconductor ecosystem. Samsung Electro-Mechanics climbed 29.92 percent, while SK Square, SK hynix's largest shareholder, jumped 29.91 percent to its daily ceiling. Hanmi Semiconductor, Jusung Engineering and numerous chip-equipment makers also rallied sharply as investors poured money into companies tied to AI infrastructure. According to Korea Exchange data, the semiconductor and semiconductor-equipment sector surged 28.4 percent, the strongest performance among all industries. Electronics equipment advanced 26.7 percent, electrical equipment gained 21.2 percent, telecommunications equipment rose 15.0 percent, while display equipment and components climbed 11.8 percent. The catalyst arrived overnight from Wall Street. Microsoft reassured investors by maintaining plans to spend roughly $190 billion on AI infrastructure this year, saying Azure cloud demand continues to outstrip available computing capacity despite record investment. A day later, Amazon reinforced that message by lifting its planned 2026 capital expenditure to about $220 billion from $200 billion, after reporting its fastest Amazon Web Services growth in more than four years. Chief Executive Andy Jassy said demand for AI computing remains well ahead of available capacity and that much of the company's future cloud infrastructure has already been reserved. Together, the earnings reports effectively dispelled growing concerns that hyperscale AI investment was beginning to slow after months of unprecedented spending. The reversal was particularly striking because it came only days after one of the steepest selloffs Korean semiconductor stocks had experienced in years. Earlier this week, fears over China's rapidly expanding memory-chip industry, questions about whether hyperscalers would curb AI spending, and forced deleveraging tied to single-stock leveraged ETFs triggered a foreign exodus from Korean equities. SK hynix and Samsung Electronics together lost hundreds of trillions of won in market value as hedge funds unwound positions and leveraged products accelerated selling pressure. Friday suggested global investors had reached the opposite conclusion. Rather than viewing recent volatility as the start of an AI downturn, overseas funds treated the correction as a buying opportunity, returning to the companies they see as indispensable suppliers to the world's AI infrastructure expansion. The breadth of the rally also reflected confidence that AI spending extends well beyond memory chips. Continued investment in AI data centers is expected to support demand for high-bandwidth memory and conventional DRAM while driving fresh orders for advanced packaging, semiconductor manufacturing equipment, precision components and electronic materials throughout Korea's supply chain. More broadly, Friday's record inflows underscored how closely Seoul's fortunes have become tied to Wall Street's AI trade. Microsoft and Amazon's earnings immediately translated into the largest foreign buying spree in Korean stock-market history, highlighting Samsung Electronics and SK hynix's increasingly central position in the global AI supply chain. According to Rayliant Global Advisors, the 60-day correlation between the KOSPI and the Nasdaq 100 has climbed to roughly 0.50, the highest level since 2021, as Korean equities increasingly move in tandem with expectations for U.S. hyperscaler AI investment rather than traditional domestic economic drivers. The rally also highlighted a valuation paradox. Despite generating operating margins of around 70 percent at Samsung Electronics' semiconductor division and more than 76 percent at SK hynix, the two companies continue to trade at valuation multiples well below many global AI beneficiaries that produce only a fraction of their profits. Friday's spectacular rebound therefore represented more than a relief rally after a week of forced selling. It marked a renewed vote of confidence that the AI infrastructure build-out remains intact and reaffirmed South Korea's position at the heart of that investment cycle. For global investors, Seoul is increasingly no longer simply an export-driven market tied to China or consumer electronics. It has become one of the world's clearest proxies for the AI supercycle, where Wall Street's commitment to spend hundreds of billions of dollars on artificial intelligence can trigger record capital flows into Korean semiconductor stocks overnight. 2026-07-31 16:45:42
Construction Company Executives Arrested After Fatal Parking Garage Accident The labor authorities have arrested the CEO and site manager of a construction company involved in a fatal accident during the demolition of a mechanical parking facility in Gangnam, Seoul, which occurred in 2024.According to the Ministry of Employment and Labor on July 31, the Seoul Regional Employment and Labor Office arrested the CEO of the parking equipment construction company and the overall safety manager on July 25 on charges of violating the Serious Accident Punishment Act and the Occupational Safety and Health Act.This marks the first instance of an arrest in the Seoul area under the Serious Accident Punishment Act. This year alone, there have been four arrests related to violations of the law.In March 2024, during the demolition of the mechanical parking facility in Gangnam, a 15.7-meter opening was created as parking pallets and lift turntables were dismantled. An accident occurred when a worker was disassembling the lift gear, leading to a fall through the opening.The Seoul office launched a search of the headquarters of both the primary and subcontracting companies to clarify the specific causes and responsibilities related to the accident. After analyzing the evidence collected and the accident investigation report from the Korea Occupational Safety and Health Agency, they determined that sufficient grounds existed to support the charges against the executives.Concerns about evidence destruction and flight risk were significant, and the case was deemed serious due to the failure to implement basic safety measures that resulted in the fatality, prompting the request for arrest warrants.The Ministry stated, "In cases related to serious accidents, even if they do not involve large fatalities, we will actively utilize forced investigations such as searches and arrests when basic safety regulations are not followed, leading to repeated incidents of a similar nature."* This article has been translated by AI. 2026-07-31 16:44:00
Criminal Procedure Law Amendment Passes National Assembly Amid Filibuster The National Assembly passed an amendment to the Criminal Procedure Law on July 31, which eliminates the prosecution's supplementary investigation rights. The ruling coalition, including the Democratic Party, pushed through the legislation despite a filibuster by the opposition People Power Party.On this day, the amendment was approved with 175 votes in favor, 2 against, and 1 abstention out of 178 members present. This amendment is a follow-up to the Serious Crimes Investigation Agency and Prosecution Act, which is set to take effect on October 2. The key principle of the amendment is the complete separation of investigation and prosecution, which includes the total removal of direct investigative powers from prosecutors.Although the People Power Party initiated a filibuster starting the previous afternoon, it was concluded with a vote led by the ruling coalition, resulting in 183 votes to end the debate. A filibuster automatically ends if more than two-thirds of the members present vote in favor of its conclusion.Additionally, the National Assembly introduced an amendment to the National Assembly Act aimed at reducing the review period for fast-track legislation. The current maximum of 330 days would be shortened to 90 days. The Democratic Party argues that this amendment is necessary for the swift processing of legislation related to people's livelihoods, claiming that the fast-track process has devolved into a slow track.The People Power Party also conducted a filibuster against the National Assembly Act amendment. However, as the July session of the National Assembly is set to conclude at midnight, the filibuster will automatically end. The amendment is expected to be addressed in the first session of the August National Assembly. Lee Joo-hee, the Democratic Party's floor spokesperson, stated after a party meeting that they are aiming for the next session to be held on August 13. 2026-07-31 16:44:00
Former Employees of Law Firm Found Guilty of Insider Trading Two former employees of the law firm (Yoo) Kwangjang were sentenced to prison for trading stocks based on insider information obtained from unauthorized access to lawyers' emails. While some charges related to insider trading were dropped, resulting in reduced fines and restitution, the court emphasized the severity of their actions.On July 31, the Seoul High Court's Criminal Division 3, led by Judge Lee Seung-han, sentenced former employee A to three years in prison, a fine of 2.96 billion won (approximately $2.2 million), and restitution of about 983.56 million won (approximately $740,000). Co-defendant B received a three-year prison sentence, a fine of 1.58 billion won (approximately $1.2 million), and restitution of about 523.4 million won (approximately $400,000).A had initially been sentenced to three years and six months in prison, along with a fine of 6 billion won and restitution of 1.82 billion won in the first trial, but the appeals court reduced all penalties. B's prison sentence remained the same, but fines and restitution were also reduced. The court revoked their bail status during the appeal.The court stated, "The defendants' actions severely undermined the fairness, reliability, and soundness of the capital market, as well as public trust in law firms and legal services. Even if they obtained the information through their positions, they should have recognized that using it for personal gain was unacceptable, yet they committed the crimes without any remorse, indicating a serious moral failing."However, the court overturned some of the original findings. It ruled that the evidence for certain insider trading charges related to corporate tender offers was insufficient to establish guilt beyond a reasonable doubt. Additionally, it found that A's method of obtaining some insider information was not adequately proven, and it assessed the timing of B's acquisition of insider information differently than the lower court.As a result of these findings, the court adjusted the fines and restitution amounts to reflect the reduced scope of the unjust enrichment.A and B, who worked in the IT department of Kwangjang, were charged with unauthorized access to email accounts and document management systems of lawyers and secretaries from September 2021 to December 2023. They allegedly used insider information from consulting firms regarding tender offers, capital increases, and stock transfer contracts to trade stocks. Investigations revealed that A profited approximately 1 billion won (about $750,000) and B about 500 million won (about $375,000) by trading shares of five companies, utilizing family accounts and loan funds.In a related case, the same court also issued rulings on three individuals, including former employee C of MBK Partners' fund management company, MBK Special Situations (SS), for violations of capital markets law.C was sentenced to one year in prison, suspended for two years, and fined 30 million won (approximately $22,500) for using or sharing insider information obtained from tender offer preparation meetings and investment materials. The other two defendants, who traded stocks based on the information received, received sentences of six months and eight months, respectively, both suspended for one year, reflecting some reductions from the first trial. The court noted that C did not directly profit from the crime and that the recipients of the information did not actively seek the insider information.* This article has been translated by AI. 2026-07-31 16:40:00
Court Ruling Keeps DL E&C as Contractor for Sangdaewon 2 Redevelopment 1.9 trillion won ($1.5 billion) redevelopment project in Sangdaewon 2, Seongnam, will remain with DL E&C for the time being. The court determined that the extraordinary general meeting held on May 30 likely did not meet the requirements for direct attendance and quorum. Notably, the number of direct attendees needed for contractor selection fell short by just one.On July 31, the Seongnam branch of the Suwon District Court partially granted a request for a provisional injunction filed by DL E&C against the Sangdaewon 2 redevelopment association.The court's decision provisionally recognized DL E&C's status as the contractor for the Sangdaewon 2 project. It also suspended the association's notification to DL E&C regarding the termination of the construction contract and the resolutions made during the May 30 extraordinary general meeting. Consequently, the resolution to select GS Construction as the new contractor was also suspended.The key issue in the decision was whether the extraordinary general meeting that selected a new contractor met the legal and association bylaws regarding direct attendance and quorum.According to the Urban Redevelopment Act and the association's bylaws, a majority of all members must be present in person to select a contractor. Attendance by proxy is also considered valid if proper delegation procedures are followed.The total number of members in the Sangdaewon 2 association is 2,268, meaning at least 1,135 members needed to be present in person to proceed with the contractor selection. The minutes recorded that 1,137 members were present at the start of the meeting, just two above the legal threshold.However, the court found that at least three of those listed as attendees could not be considered valid participants. One member left the meeting after signing the attendance sheet and was later seen visiting a restaurant and bakery in Yangpyeong, as confirmed by CCTV footage. Another member, while listed as present, stated that they had sent a third party in their place.The third individual was a proxy who was not the representative member of the shared property. The court ruled that there was no evidence that the change of the representative member had been properly reported to the association, thus invalidating that proxy's attendance.Excluding these three, the number of valid attendees dropped to 1,134, just one short of the required minimum of 1,135. The court concluded that proceeding with the contractor selection without a majority present was unlawful.The association argued that additional members entered after the meeting commenced, ultimately meeting the majority requirement. However, the court maintained that a majority must be present at the start of the proceedings, and any subsequent increase in attendance could not rectify the procedural defect that occurred at the outset.The court also noted the poor management of attendee verification. Video footage showed several members leaving the venue before the meeting began, yet the association did not adequately track or manage those who left and re-entered. There were also instances where attendees were not required to remove masks, hats, or sunglasses, making it difficult to verify their identities.The court pointed out that representatives from DL E&C were only allowed into the venue about two hours after the meeting began, and even after entering, they found it challenging to monitor the verification and classification of withdrawal letters. As a result, the court deemed the attendance figures recorded in the minutes and meeting notes unreliable.In the general matters concerning the termination of the contract with DL E&C, the key issue was the status of the withdrawal letters. During the meeting, 904 withdrawal letters were submitted, but the association determined that only three were valid and not duplicates of existing letters.In contrast, DL E&C submitted 51 withdrawal letters that overlapped with the existing ones. The court concluded that if these letters were considered, the general matters would also fail to meet the quorum requirement. The possibility of additional valid withdrawal letters submitted on the day of the meeting could not be ruled out.The association contended that 38 of the 51 members who submitted withdrawal letters later submitted 're-withdrawal letters' on the day of the meeting, asserting that the original resolutions remained valid. However, the court found that the re-withdrawal letters did not clearly indicate a retraction of the prior withdrawal intentions, and the timing of their creation was also uncertain.The fact that all re-withdrawal letters were pre-printed with the date of the meeting, May 30, raised further concerns. The court suggested that the association might have collected the re-withdrawal letters at the same time as the original withdrawal letters, making it difficult to accept their validity at this stage.Ultimately, the court identified procedural defects in both the direct attendance and the handling of withdrawal letters, leading to a strong likelihood that the resolutions from the meeting would be deemed invalid.This ruling is expected to further delay the contractor selection process for the Sangdaewon 2 project. If the association appeals or if disputes over the contractor's status continue, the legal battles surrounding the 1.9 trillion won project and construction delays could persist for an extended period. 2026-07-31 16:36:10
Financial Supervisory Service to Inspect ETF Sales Practices at Major Banks The Financial Supervisory Service (FSS) will conduct on-site inspections of major banks to verify the appropriateness of commission charges and sales processes for exchange-traded fund (ETF) trust products.According to the financial sector on July 31, the FSS plans to examine the ETF trust sales practices of KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, and SC First Bank in August. The inspection will focus on whether banks provided adequate guidance on commission structures that align with customers' investment periods and trading tendencies, as well as whether they sufficiently explained the cost burdens involved.From January 2022 to May 2023, the sales volume of ETF trusts at six major banks reached 64 trillion won, with 1.03 million contracts. In May alone, the sales volume was 10.8 trillion won, an 8.8-fold increase compared to December of the previous year.The average holding period for ETFs was 42 days, with the same customers entering into contracts an average of 5.5 times. Notably, 94.6% of all transactions were sold within six months, yet 91.7% of contracts were subject to upfront commissions that are disadvantageous for short-term investors. Upfront commissions charge about 1% of the investment amount at the time of entry, making them more favorable than deferred commissions only if the investment period exceeds one year.Low target return rates were also identified as a factor contributing to frequent trading. Accounts with target returns below 5% accounted for 58.1%, while those below 3% made up 20.8%.During the same period, customer capital gains from sales totaled 2.91 trillion won, while banks collected 394.8 billion won in trust commissions. The FSS estimates that the combination of upfront commissions and low target returns resulted in banks receiving 7.2 times more in commissions than what would be appropriate for their customers.* This article has been translated by AI. 2026-07-31 16:36:00
Unionized workers at Kakao Bank stage first-ever strike amid wage dispute SEOUL, July 31 (AJP) - Unionized workers at KakaoBank launched a strike on Friday, marking the bank's first walkout since its establishment in 2017 as the country's first internet-only bank. More than 700 of KakaoBank's roughly 1,000 unionized workers took part in the strike by taking paid leave and staying off the job. No separate rally was held. The bank's labor union said it is discussing its next steps internally. The strike came after the union had been negotiating with management over wages since earlier this year but was unable to narrow differences over bonuses and annual pay raises. Details of the talks were not disclosed, but the two sides reportedly discussed annual pay raises of around 5 percent to 6 percent and failed to reach an agreement. Despite the strike, customers appeared to face little disruption as the bank operates entirely online, with no strike-related complaints reported so far. 2026-07-31 16:20:00
Samsung SDS and LG CNS Report Growth in AI and Cloud Demand Samsung SDS and LG CNS have reported positive results in their artificial intelligence (AI) and cloud businesses, driven by increasing demand for corporate AI transformation (AX). As the domestic system integration (SI) industry expands into AI data centers and graphics processing unit (GPU) services, external business targeting finance, public sectors, and manufacturing is also growing.According to industry sources on July 31, LG CNS recorded second-quarter revenue of 1.52 trillion won and operating profit of 127.9 billion won, marking a 4.2% increase in revenue compared to the same period last year. However, operating profit decreased by 9.2%, attributed to strategic investments for future growth and the postponement of some project contracts to the second half of the year.Samsung SDS reported provisional second-quarter revenue of 3.72 trillion won and operating profit of 231.8 billion won, reflecting growth in IT services and logistics, with increases of 5.9% and 0.7%, respectively, year-on-year.As demand for AI infrastructure and operational systems from businesses and public institutions rises, both companies are expanding their external business. The SI sector is evolving from system construction to providing AI computational resources and operating data centers. Samsung SDS is focusing on computational resource services and financial and public AX, while LG CNS is expanding its business around data center design, construction, and operation (DBO) as well as manufacturing and logistics AX.Samsung SDS is enhancing its competitive edge by focusing on an 'AI full stack' that encompasses AI infrastructure, AX, AI services, and AI platforms and solutions. The growth in IT services during the second quarter was primarily driven by cloud services, which saw a 5% increase in revenue to 1.76 trillion won.With rising demand for GPU services from Samsung Cloud Platform and public and external clients, revenue from cloud service provision increased by 24%. The expansion of AX in the financial sector and enterprise resource management in shipbuilding also contributed to a 17% growth in cloud management services. Notably, external cloud revenue surged by 75% compared to the previous year.In the first half of the year, LG CNS's AI and cloud revenue reached 1.67 trillion won, a 5.1% increase year-on-year. Major AI data center projects in Samseong and Jukjeon, along with AX in finance and public sectors and smart factory automation in manufacturing and logistics, contributed to this growth.LG CNS has been expanding its DBO business, which involves designing, constructing, and operating data centers. In the first half, it secured over 1 trillion won in large DBO contracts and introduced modular AI data centers that shorten construction periods. Smart factory projects previously secured in defense and shipbuilding sectors also converted into revenue during the first half.Both companies plan to continue expanding their AI infrastructure and AX businesses in the second half of the year. Samsung SDS aims to enhance its AI infrastructure services based on GPU and neural processing units (NPU), while LG CNS plans to broaden its scope in DBO and overseas AX projects.In July, Samsung SDS launched a subscription service based on its domestic NPU 'Renegade' from FuriosaAI, expanding its AI computational infrastructure offerings. In the long term, it aims to increase its current AI infrastructure capacity from 110 megawatts (MW) to 230 MW by 2029, and to over 800 MW by 2031, including its DBO business.LG CNS plans to complete its AI data center in Indonesia in the second half of the year to establish a reference for its overseas AI data center business, using it as a stepping stone for additional contracts. For its overseas AX business, it intends to expand manufacturing AX in North America and financial digital transformation projects in the Asia-Pacific and Japan regions.* This article has been translated by AI. 2026-07-31 16:20:00