AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • HD Hyundai Reports 262.2% Increase in Q2 Operating Profit
    HD Hyundai Reports 262.2% Increase in Q2 Operating Profit HD Hyundai announced on July 31 that it recorded consolidated sales of 22.4094 trillion won and an operating profit of 4.1246 trillion won for the second quarter. This represents a 30.2% increase in sales and a 262.2% increase in operating profit compared to the same period last year. The strong results were driven by solid performances across its key sectors, including shipbuilding, construction machinery, refining, and power equipment. For the first half of the year, the company achieved cumulative sales of 42.0113 trillion won and an operating profit of 6.9594 trillion won. Breaking down the second-quarter results by sector, HD Korea Shipbuilding & Marine Engineering saw its sales rise by 20.2% year-on-year to 8.9270 trillion won, with operating profit increasing by 72.5% to 1.6451 trillion won, thanks to improved productivity and higher sales of high-margin vessels. The company plans to maintain its competitive edge in the high-value eco-friendly ship market and enhance profitability through a selective order strategy. HD Hyundai Marine Solutions reported a 24.1% increase in sales to 580.4 billion won, with operating profit rising 17.6% to 97.6 billion won, driven by growth in its core businesses, including ship parts and services, eco-friendly retrofitting, and digital solutions. The company aims to strengthen its competitiveness in the high-value-added AM business and accelerate its entry into the market for power engines for data centers and floating data center retrofitting. In the construction machinery sector, HD Hyundai Site Solutions experienced a 17.9% increase in sales to 2.5235 trillion won and a 79.6% rise in operating profit to 272 billion won, fueled by improved global market conditions, increased sales of next-generation excavators, and expanded industrial and defense engine sales. The company plans to lay the groundwork for sustainable growth through portfolio diversification and the development of eco-friendly technologies, including unmanned and electrified products. HD Hyundai Oilbank reported sales of 9.4774 trillion won and an operating profit of 1.8241 trillion won amid external challenges such as prolonged geopolitical risks in the Middle East and increased volatility in international oil prices. The profitability of its lubricants and petrochemicals businesses improved, positively impacting overall performance. The company plans to continue introducing various alternative crude oils and flexible procurement strategies to ensure domestic energy supply stability in the second half of the year. HD Hyundai Electric saw its sales and operating profit increase by 26% and 37.3%, respectively, to 1.1418 trillion won and 287 billion won, supported by growth in its distribution sector and improved profitability in overseas markets. The company aims to establish a sustainable growth foundation by strengthening its existing power equipment business alongside its distribution and rotating equipment sectors. An HD Hyundai official stated, "In the second quarter, we achieved performance improvements across all business areas, solidifying our business structure. We will focus on securing profitability through the expansion of selective orders for high-value vessels, exploring new markets, and improving our product mix."* This article has been translated by AI. 2026-07-31 17:04:00
  • Top Five Financial Groups and Banks Designated as Systemically Important for 2027
    Top Five Financial Groups and Banks Designated as Systemically Important for 2027 The top five financial groups and their affiliated banks, including Shinhan, KB, Hana, Woori, and NH, have been designated as systemically important financial institutions for 2027. These institutions are required to maintain higher capital reserves than regular banks and prepare their own recovery plans for crisis situations.The Financial Services Commission announced on July 31 that it has selected the five major financial groups along with Shinhan Bank, KB Kookmin Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank as 'systemically important banks and bank holding companies' for 2027. The list remains unchanged from last year.Systemically important banks are defined as large institutions with significant interconnectedness to other financial entities, meaning that their failure could impact the entire financial market. Regulatory authorities evaluate domestic banks, foreign bank branches, and bank holding companies annually based on size, interconnectedness, and the difficulty of substituting them with other financial institutions.In addition to the five major financial groups and banks, the Industrial Bank of Korea and the Export-Import Bank of Korea also exceeded the selection criteria. However, these two banks were excluded from the final list due to government ownership and legal provisions for loss compensation.The ten selected institutions will be required to set aside an additional 1% in capital reserves next year. Consequently, the common equity tier 1 capital ratio must be maintained at a minimum of 9%, the total capital ratio at 12.5%, and the basic capital ratio at 10.5%.However, the Financial Services Commission noted that since the selection results are the same as last year and the capital ratios of these financial institutions exceeded the minimum requirements as of the end of 2025, the new capital burden is not expected to be significant.These financial institutions are also required to submit plans for self-recovery in the event of a crisis. They must submit their recovery plans, which include measures for capital enhancement and asset sales, to the Financial Supervisory Service within three months of receiving the designation notice.* This article has been translated by AI. 2026-07-31 17:00:00
  • Financial Authority Reduces Lotte Cards Business Suspension for Data Breach
    Financial Authority Reduces Lotte Card's Business Suspension for Data Breach The Financial Services Commission has imposed a 1.5-month business suspension on Lotte Card following a cyber breach that exposed the information of 2.97 million customers. This penalty is significantly lower than the 4.5-month suspension recommended by the Financial Supervisory Service, taking into account the potential impact on consumers.On July 31, the Financial Services Commission finalized the sanctions during a regular meeting.Investigations revealed that Lotte Card violated security obligations by failing to conduct necessary corrections in its online payment system, not encrypting personal identification numbers and passwords, and not installing antivirus software.The suspension will take effect from August 1 and last until September 15, totaling 1.5 months. This is a substantial reduction from the initially proposed 4.5-month suspension.Initially, there were expectations of a severe penalty for Lotte Card, especially since this is not the first incident; the company faced a three-month suspension in 2014 due to a similar data breach. The seriousness of the current breach was heightened by the fact that it resulted from external hacking rather than internal employee misconduct.However, Lotte Card's proactive response immediately following the incident and the absence of further secondary damage likely contributed to the reduced suspension period.A Financial Services Commission official stated, "The duration of the business suspension was determined by considering various factors, including fairness with previous sanctions, the company's recovery efforts, and the impact on the financial market and consumers."The official added, "It is undesirable for customers who are not at fault for the data breach to experience inconvenience due to the business suspension. Therefore, while new card services for new members will be halted, existing members will still be able to apply for and use card-related services."The fine has been confirmed at 5 billion won, as originally proposed. The disciplinary action against former CEO Jo Jwa-jin, which was also recommended by the Financial Supervisory Service, will be handled according to the Credit Finance Business Act, which allows the Financial Supervisory Service to impose certain sanctions on retired executives.To prevent future data breaches, the Financial Services Commission plans to introduce punitive fines for serious security incidents, which could be up to 3% of total revenue. It will also actively support the passage of amendments to the Electronic Financial Transactions Act, which includes strengthening the authority of Chief Information Security Officers (CISOs) to enhance security measures. 2026-07-31 17:00:00
  • Toss Payment and Remittance Firms to Enhance Risk Management Amid Regulatory Changes
    Toss Payment and Remittance Firms to Enhance Risk Management Amid Regulatory Changes Toss Group's payment and remittance electronic financial service providers will now be included in the group's internal control and risk management framework. This measure aims to eliminate regulatory gaps that previously excluded certain providers from oversight based on their industry classification. The Financial Services Commission announced on July 31 that it approved amendments to the 'Supervision Regulations for Financial Conglomerates' during its 14th regular meeting. On July 15, the commission designated eight groups, including Samsung, Hanwha, Mirae Asset, Kyobo, Hyundai Motor, DB, Daou Kiwoom, and Toss, as financial conglomerates for this year. Toss was the first among big tech financial groups to receive this designation. Being classified as a financial conglomerate means that the group must manage internal transactions, risk concentration, and the potential for financial distress across its affiliates. However, some electronic financial service providers had previously been excluded from oversight because they were not classified under the 'Finance and Insurance' category of the Korean Standard Industrial Classification. Electronic financial service providers offer services such as easy payments, remittances, prepaid card issuance, and online payment processing. Even if they belong to the same group and perform similar functions, regulatory discrepancies arose when their industry classifications differed, leading to some companies being exempt from internal control and risk management. The Financial Services Commission has amended the regulations to include electronic financial service providers not classified under finance and insurance as part of the affiliated financial companies within financial conglomerates. Consequently, risks arising from operational issues, such as system failures or data breaches, will now be managed at the group level to prevent spillover effects to other financial affiliates like banks and securities firms. The expansion of fintech and big tech companies into banking, securities, and insurance has increased interconnections among affiliates, further motivating this regulatory change.* This article has been translated by AI. 2026-07-31 16:52:00
  • Construction Company Change Stalled Again for Sangdaewon 2 District
    Construction Company Change Stalled Again for Sangdaewon 2 District The redevelopment project for Sangdaewon 2 District in Seongnam, Gyeonggi Province, has once again reached a crossroads regarding the selection of a construction company. The association's attempt to terminate its contract with DL E&C and switch to GS Construction has been halted by a court ruling that intervened in the annual general meeting. The association now faces the challenge of either renegotiating terms with DL E&C or enhancing procedures to pursue the change in construction companies, but either path is likely to prolong uncertainty regarding the construction schedule.The Suwon District Court's Seongnam branch determined that the temporary general meeting held on May 30 did not meet the necessary quorum requirements due to procedural flaws. Consequently, the court provisionally recognized DL E&C's status as the construction company and suspended the effectiveness of the contract termination notice and the resolutions from the temporary general meeting.The court's decision hinged on the quorum issue. While the association's minutes indicated that 1,137 members were present for the vote on the construction company selection, the court ruled that at least three members should be excluded due to early departures, actual absences, and representatives lacking proper authorization. This reduced the number of attendees to 1,134, falling short of the majority by one.Additionally, the court found that the association's acknowledgment of 51 retraction letters regarding the termination of the contract with DL E&C meant that the quorum was not met for general matters. Both the selection of a construction company and the termination of the existing contract faced issues at the meeting's establishment stage.However, this ruling did not assess the merits of the construction costs or project conditions proposed by DL E&C and GS Construction. The court did not determine responsibility for the disputes over construction costs, high-end brand applications, and finishing materials. It focused solely on the quorum issue, leading to a significant likelihood that the meeting's resolutions would be deemed invalid.As a result of this decision, DL E&C retains its legal status as the construction company for the time being. The subsequent contracting process based on the resolution to select GS Construction has also been halted. Nevertheless, the resolution of the construction company status does not revert the project conditions and construction schedule to their previous state.If the association wishes to continue with DL E&C, it must resolve existing conflicts regarding construction costs and the application of the high-end brand 'Acro.' The trust between the two parties has been damaged due to the association's attempts to terminate the contract twice, and it remains to be seen whether DL E&C will maintain the previously proposed construction conditions.Should the association continue to pursue a change in construction companies, it will need to restart the general meeting procedures. This includes verifying member identities, handling representative authorizations, and addressing the retraction of written resolutions, all of which were flagged by the court. With the court intervening in both the previous contract termination and the second resolution to change the construction company, trust issues regarding the association's leadership and meeting management may also arise.The association may consider appealing this provisional ruling. However, pursuing an appeal could prolong the legal uncertainty surrounding the construction company status. While awaiting the appeal's outcome, negotiations with DL E&C or the procedures for changing the construction company may face significant delays.The project timeline is also expected to be affected. The association will likely need to reassess the construction costs and start plans based on GS Construction's proposal. If it continues with DL E&C, it will have to renegotiate construction conditions, and if it pursues a change, it will need to go through the general meeting and subsequent contracting processes again.Without a confirmed construction company and project conditions, subsequent procedures such as financing, construction commencement, and member contribution calculations may be delayed. As the project duration extends, financial costs and project expenses may increase, leading to a greater burden on the members.While DL E&C retains its status as the construction company, the project timeline for Sangdaewon 2 District has not been restored to its previous state. Until the association reestablishes its relationship with DL E&C or pursues a change in construction companies through proper procedures, uncertainty regarding construction costs and the start date is expected to persist.Meanwhile, a representative from DL E&C stated, "This court decision has suspended the effectiveness of GS Construction's selection as the construction company and restored DL E&C's status. We will work towards normalizing the project by resolving the demolition issue of the Baptist Church and expediting the construction start."* This article has been translated by AI. 2026-07-31 16:48:00
  • Tesla Considers Selling China Operations Amid U.S.-China Competition; Musk Calls It Fake News
    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
    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 Seouls chip titans to daily limit
    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
    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
    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