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  • Korea targets Q1 rollout of abortion pill
    Korea targets Q1 rollout of abortion pill SEOUL, September 16 (AJP) -South Korea will allow abortion pills to be prescribed as early as the first quarter of next year, seven years after the Constitutional Court ruled the country's abortion ban incompatible with the Constitution. The medication would be approved for use within 63 days, or nine weeks, of pregnancy under a plan unveiled Wednesday by the Ministry of Gender Equality and Family, the Ministry of Health and Welfare and the Ministry of Food and Drug Safety. The drug is currently undergoing regulatory review, with authorities targeting distribution in the first quarter of 2027. Doctors would directly prescribe and dispense the medication at medical institutions during the first two years after its introduction. Authorities would then consider expanding access after reviewing side effects and other safety data. Whether the drug will be covered by national health insurance has yet to be decided. The move comes after years of delay following the Constitutional Court's 2019 decision, which left South Korea with a prolonged legislative gap over abortion. The government said bringing medication abortion into the formal medical system could help curb the black-market trade in abortion pills and reduce health risks from unverified drugs. “It is already used in more than 100 countries around the world, and I believe its safety has been established over roughly 30 years,” said Democratic Party (DP) Rep. Seo Young-seok, a pharmacist-turned-lawmaker and member of the National Assembly's Health and Welfare Committee. “I think this was an issue that kept being postponed because of the lack of social consensus," said Seo, a sponsor of related legislation. Another sponsor, DP Rep. Kim Yoon, a physician and fellow member of the committee, said, “I think it would be appropriate to first introduce the drug and then pursue the necessary legal revisions together in the National Assembly." AJP Takeaways - South Korea plans to introduce abortion medication, including mifepristone, as early as the first quarter of 2027. - DP lawmakers Seo Young-seok and Kim Yoon told AJP the drug’s safety is well established and urged swift introduction alongside legal revisions. - The government plans to initially limit prescription and dispensing to medical institutions while monitoring safety and access. 2026-09-16 13:15:47
  • 2026 College Scholastic Ability Test Results Show Graduates Outperform Current Students
    2026 College Scholastic Ability Test Results Show Graduates Outperform Current Students In the 2026 College Scholastic Ability Test (CSAT), graduates (N students) achieved average standard scores that were 13.3 points higher in Korean and 12.1 points higher in math than current students. The proportion of top grades (1st and 2nd levels) also showed that graduates significantly outperformed current students across all subjects, highlighting a clear advantage for N students. Additionally, students from private schools, all-boys schools, and urban areas exhibited a strong presence in the top scoring brackets, indicating persistent disparities based on student background and school environment.The Korea Institute for Curriculum and Evaluation announced these findings on September 16, based on an analysis of 493,896 total test-takers. The analysis of school background and regional differences was derived from the scores of 320,882 students from general high schools, specialized high schools, and autonomous high schools (including standard scores and grades in Korean, math, and English). N Students Show Dominance... Female Students Excel in Korean, Male Students in MathThe performance gap between graduates and current students was pronounced. Graduates scored an average of 109.4 in Korean and 108.6 in math, compared to current students who scored 96.1 in Korean and 96.5 in math, resulting in a difference of 13.3 points in Korean and 12.1 points in math. The gap in top grades was even wider.In terms of the top grade ratio, graduates achieved 8.0% in Korean and 8.7% in math, while current students recorded only 3.3% in Korean and 2.9% in math. In English, the top grade ratio for graduates (4.8%) was double that of current students (2.4%). The proportion of lower grades (8th and 9th levels) was lowest among graduates across all subjects. Students from the high school equivalency exam averaged 99.3 in Korean and 95.6 in math.Gender analysis revealed differing trends across subjects. Female students scored an average of 100.5 in Korean, surpassing male students who scored 99.5. In math, male students led with an average of 102.7, compared to female students at 97.0. The combined ratio of top grades showed that male students outperformed in both Korean (11.6% for males, 11.0% for females) and math (17.2% for males, 9.1% for females), while female students slightly led in English (17.6% for females, 17.3% for males). The proportion of lower grades was lower for female students in Korean and English, while male students had a lower rate in math.Private and All-Boys Schools Dominate Top GradesStudents from private schools outperformed those from public schools. The average standard scores for private schools were 99.4 in Korean and 99.6 in math, exceeding public schools' scores of 94.9 in Korean and 95.3 in math by 4.5 points and 4.3 points, respectively. The combined ratio of top grades also showed private schools leading with 10.8% in Korean, 12.6% in math, and 17.7% in English, compared to public schools' 6.7% in Korean, 8.0% in math, and 12.6% in English. The proportion of lower grades was also lower in all subjects for private schools.In comparing school types, all-boys schools showed a significant concentration of top scores. In Korean, girls' schools scored an average of 98.5, higher than all-boys schools at 97.5 and coeducational schools at 95.9. However, in math, all-boys schools led with an average of 101.1, far surpassing coeducational schools (95.9) and girls' schools (95.7).Notably, the combined ratio of top grades showed all-boys schools achieving 9.5% in Korean (4.1% in 1st grade, 5.4% in 2nd grade), 14.4% in math (5.0% in 1st grade, 9.4% in 2nd grade), and 15.6% in English (2.6% in 1st grade, 13.0% in 2nd grade), leading in all three subjects. Girls' schools had the lowest rates in the 8th and 9th grade categories for Korean and English, while all-boys schools had the lowest in math.Urban-Rural Disparities Persist... Seoul Leads in All CategoriesAnalysis by school location revealed a clear gap between urban and rural areas. The average standard score in Korean for urban areas was 98.9, while rural areas scored 93.1, a difference of 5.8 points. In math, urban areas scored 99.1, compared to 93.7 in rural areas, a gap of 5.4 points. The combined ratio of top grades also showed urban areas achieving 10.0% in Korean, 12.0% in math, and 17.4% in English, while rural areas remained at 6.0% in Korean, 6.5% in math, and 10.4% in English. The proportion of lower grades was lowest in urban areas across all subjects.In an analysis of the 17 provinces, Seoul's dominance was evident across all subjects. Seoul recorded the only average standard scores exceeding 100, with 102.4 in Korean and 102.3 in math, ranking first nationwide. The top grade ratios also showed Seoul leading with 6.0% in Korean, 6.3% in math, and 4.7% in English, the highest in the country. Following Seoul in average standard scores for Korean were Jeju (99.9), Sejong (98.4), and Daegu (98.2), while in math, Daegu and Sejong (both 98.4), Busan (98.2), and Jeju (98.1) followed Seoul.Among schools with more than 30 test-takers, Jeju had the smallest average score gap in both Korean (29.7 points) and math (33.2 points), indicating the least disparity among schools. In contrast, the largest gaps were found in Gyeonggi for Korean (55.4 points) and in Seoul for math (55.4 points).* This article has been translated by AI. 2026-09-16 13:08:00
  • Opposition Party Calls for Testimony from Major Securities Executives on ETF Issues
    Opposition Party Calls for Testimony from Major Securities Executives on ETF Issues The opposition People Power Party has requested testimony from senior officials of financial authorities and private securities firms during the upcoming National Assembly audit to hold them accountable for the 'single-stock leveraged exchange-traded fund (ETF) incident.' The party aims to elevate the issue of leveraged ETFs to the forefront of the audit, intensifying its criticism of the government and ruling party while building public support for a national investigation and special prosecution.According to a report by Aju Economy on September 16, members of the People Power Party on the Financial Committee have submitted requests for testimony from key figures, including Park Hyun-joo, chairman of Mirae Asset Group; Kim Sung-hwan, president of Korea Investment & Securities; and Bae Jae-kyu, CEO of Korea Investment Trust Management. The final decision on their testimony will be made through consultations between the party's representatives.The People Power Party plans to question the executives about the introduction of leveraged ETFs and whether the securities firms have made unjust profits. According to the financial investment industry, in January, Kim Yong-beom, then head of the Presidential Policy Office, held a closed meeting with representatives from five securities and asset management firms regarding the introduction of leveraged ETFs, with both Kim and Bae reportedly in attendance.If these individuals are ultimately selected as witnesses for the audit, it is likely that financial authorities' leaders, including Lee Ok-keun, chairman of the Financial Services Commission, and Lee Chan-jin, head of the Financial Supervisory Service, will also be called to testify. This could allow the People Power Party to escalate its offensive, gathering high-ranking public and private officials to hold them accountable for the hasty introduction of leveraged ETFs and to secure momentum for a national investigation and special prosecution. The party previously filed a complaint against former Policy Chief Kim Yong-beom, Chairman Lee, and Director Lee with the Corruption Investigation Office for High-ranking Officials on September 10.The Democratic Party is also anticipating the opposition's requests for testimony related to leveraged ETFs. A member of the Democratic Party on the Financial Committee told Aju Economy, "We expect the People Power Party to request testimony from individuals related to leveraged ETFs and real estate policies during the audit, and as the ruling party, we will strive to prevent unnecessary pressure on the government's national tasks." 2026-09-16 12:20:00
  • Yoon Suk Yeol Acquitted Again in Perjury Case Related to Han Duck-soo Trial
    Yoon Suk Yeol Acquitted Again in Perjury Case Related to Han Duck-soo Trial Yoon Suk Yeol, the former president, was acquitted again in an appeals court on charges of perjury related to his testimony in the trial of former Prime Minister Han Duck-soo, who is accused of insurrection.The Seoul High Court's Criminal Division 1, led by Judge Yoon Seong-sik, issued the not guilty verdict on September 16, maintaining the same decision as the first trial. The special prosecutor's team had sought a fine of 10 million won during the appeals court's closing arguments.The court ruled that Yoon's statement during the trial, claiming he had planned to hold a Cabinet meeting before Han's suggestion on the day martial law was declared, could not be definitively classified as false testimony. It stated, "It is difficult to believe that the defendant was unaware of the need for Cabinet deliberation when declaring martial law, given his position and experience." The court added that it was reasonable to assume he was trying to meet the minimum legal requirements for declaring martial law.The court also noted that documents to be presented were prepared before former Deputy Prime Minister Choi Sang-mok arrived at the scene, supporting Yoon's testimony.In November of last year, during the trial concerning Han's alleged insurrection-related duties, Yoon testified that he had intended to convene a Cabinet meeting before Han's suggestion. The special prosecutor's office argued that Yoon initially had no intention of holding a meeting and only gathered six Cabinet members after hearing Han's suggestion to meet the quorum. They charged him with perjury, claiming his assertion that he had prepared for the meeting from the start was a clear falsehood.The first trial court had ruled that Yoon's claim of having intended to convene a meeting from the outset was merely a subjective evaluation or opinion and not subject to perjury charges, leading to an acquittal. The appeals court upheld this judgment.Immediately following the verdict, Yoon's legal team expressed their satisfaction and criticized the special prosecutor's office. In an official statement, they thanked the appeals court for rejecting the special prosecutor's "delusions" and upholding the rule of law.They further asserted that the ruling clearly demonstrated there was no causal relationship between Han's suggestion and the Cabinet meeting, arguing that if the meeting was not due to Han's suggestion, then Han could not be charged with insurrection-related duties.Meanwhile, the special prosecutor's office plans to carefully review the appeals court's ruling before deciding whether to file a further appeal. 2026-09-16 12:16:00
  • Chun Ha-ram Questions Defense Minister Nominee Kang Shin-cheol on Special Housing Allocations
    Chun Ha-ram Questions Defense Minister Nominee Kang Shin-cheol on Special Housing Allocations During a confirmation hearing on September 16, Chun Ha-ram, a lawmaker from the Reform Party, questioned Kang Shin-cheol, the nominee for Defense Minister, about allegations regarding special housing allocations for his family, referring to them as "Kang Shin-cheol evictees." Kang responded that he had not heard of this term and believed he had received "just compensation" for the allocations.Chun criticized Kang for claiming he was unaware of the term "special housing allocation" during the hearing, presenting documentation showing that Kang's name was listed as an applicant for a special housing allocation in 2008. "Is it acceptable to start a confirmation hearing with lies and perjury?" Chun asked.Kang clarified that he did not apply directly but thought the process was being handled by the government through the SH Corporation. He stated, "I understood that compensation was being provided, but I was not aware that it was classified as a special housing allocation for evictees."Chun pointed out that not only Kang but also his father, brother, and aunt received special allocations, questioning how Kang could be unaware of this when his family received four allocations. Kang maintained that it was compensation for being expropriated and emphasized that his family suffered significant losses.Chun also raised suspicions that Kang may have changed his residency to qualify for the special allocation, noting that when Kang registered his move to Cheonwang-dong in 2008, his spouse and children were still living in Bundang.Kang acknowledged that his family was in Bundang at that time but insisted, "We were merely following the government's negotiation process." He added, "I have already apologized to the media for the mismanagement and negligence regarding our address registration."The controversy surrounding Kang's family's special housing allocations emerged after Chun raised related allegations.* This article has been translated by AI. 2026-09-16 12:12:00
  • Audit Reveals Presidential Office Pushed for Early Drilling in East Sea
    Audit Reveals Presidential Office Pushed for Early Drilling in East Sea 대통령실이 동해 심해 가스전의 시추 일정을 당시 대통령 임기 안으로 앞당기라고 요구한 것으로 감사원 감사 결과 드러났다. 한국석유공사는 유망성평가 결과를 충분히 검증하지 않은 상태에서 이른바 ‘대왕고래’ 사업의 시추를 추진하고, 국가계약법을 위반해 용역업체를 선정한 것으로 조사됐다. 감사원은 16일 이 같은 내용을 담은 ‘동해 심해 가스전 사업 관련 공익감사청구’ 감사 결과를 공개했다. 이번 감사는 산업통상부가 지난해 10월 유망성평가 업체 선정과 시추사업 결정·발표 과정 등에 대해 공익감사를 청구함에 따라 시작됐다. 감사 결과에 따르면 산업부는 지난 2023년 11월 동해 심해에 35억∼140억 배럴의 석유·가스가 존재할 가능성이 있지만, 실제 부존 여부를 알 수 없어 추가 분석과 검증이 필요하다고 대통령실에 보고했다. 산업부는 2024년 5월 대면 보고에서도 탐사 성공 가능성이 20% 이내로 상당히 불확실하다는 점과 대외 홍보를 자제해야 한다는 의견을 전달했다. 시추로 확인되지 않은 탐사자원량을 공개하면 과도한 기대를 부를 수 있다며 자원량 대신 면적을 발표하자는 의견도 냈다. 그러나 대통령실 내부 논의를 거쳐 산업부 장관의 대통령 직접 보고와 대국민 발표 방침이 결정됐다. 당시 윤석열 전 대통령은 2024년 6월 3일 국정브리핑을 통해 “포항 영일만 앞바다에 최대 140억 배럴의 석유·가스가 매장돼 있을 가능성이 높다”고 밝혔다. 감사원에 따르면 최대 140억 배럴은 7개 유망구조별로 자원이 해당 수치 이상 존재할 확률이 10%인 ‘P10’ 값을 단순 합산한 것으로, 실현 가능성이 매우 낮은 수치였다. 대통령실이 시추 일정 단축을 요구한 정황도 확인됐다. 산업부의 당초 계획은 2024년 말 대왕고래 구조를 먼저 시추한 뒤 2029년까지 4개 공을 추가 시추하는 것이었다. 하지만 대통령실은 2024년 9월 시추 일정을 당시 대통령 임기가 끝나는 2027년 5월 이전으로 앞당기라고 요구했다. 산업부 장관이 2028년 1분기까지 시추를 마치는 방안을 보고하면서, 정무적 판단이 필요하다고 설명하자 윤 전 대통령이 “정무적 판단은 내가 하는 것”이라고 질책하며 계획을 다시 수립하라고 지시했다고 감사원은 밝혔다. 이에 산업부 장관은 같은 해 10월 무리한 일정이라고 판단하면서도 대통령 지시에 따라 2026년까지 4개 공을 추가 시추하는 계획을 다시 보고했다. 유망성평가 업체 선정 과정에서는 국가계약법 위반이 확인됐다. 관련 용역 수행 경험이 있는 업체가 17곳에 달해 지명경쟁입찰 요건을 충족하지 못했지만, 석유공사는 별도의 시장조사 없이 1차 용역 때 4개, 2차 용역 때 3개 업체만 임의로 선정해 입찰에 참여시켰다. 석유공사는 용역책임자 경력 등 5개 기술평가 기준을 마련하고도 입찰 업체에 공개하지 않았다. 2차 용역 평가에서는 당초 기준에 없던 ‘용역책임자 수행능력’을 추가해 평가기준을 충족한 업체를 부적합 처리했다. 시추 타당성 검증도 충분하지 않았다. 석유공사는 해외자문단을 통해 용역업체의 분석 방법만 확인한 뒤 최종 용역 결과가 나오기 전인 2023년 10월 대왕고래 구조의 시추계획을 수립했다. 실제 시추 결과 가스포화도는 당초 예상한 50∼70%에 크게 못 미치는 6.3%에 그쳤다. 확인된 가스도 석유·천연가스 부존 가능성이 큰 열적기원 탄화수소 가스가 아니라 생물분해 바이오가스로 나타나는 등 용역 결과와 큰 차이를 보였다. 석유공사는 투자리스크위원회와 이사회의 심의·의결을 거치기 전 시추선 용선 입찰도 진행했다. 시추선 시장 상황을 분석해 작업 시기를 2025년 6∼7월로 조정했다면 용선료 43억원을 절감할 수 있었지만, 별도 분석 없이 2024년 4월 계약을 체결했다. 성과평가 과정에서도 오류와 이해충돌이 확인됐다. 동해 심해 가스전 담당 부서는 달성하지 못한 계량지표 2개를 달성한 것으로 제출해 A등급을 받았다. 해당 부서에서 근무했던 본부장은 자신의 성과급에 영향을 미칠 수 있는데도 신고와 회피 없이 이 부서의 비계량지표에 만점을 줬다. 감사원은 석유공사에 용역 입찰을 부당하게 처리한 관련자를 징계하고 성과평가 등급과 성과급을 조정하라고 요구했다. 산업부에는 주요 계약을 체결하기 전에 시추 대상 구조와 위치를 실질적으로 검증할 수 있도록 탐사시추 승인 요청 시기를 조정하는 방안을 마련하라고 통보했다. 한편 대왕고래는 윤석열 정부가 동해 심해에 최대 140억 배럴의 석유·가스가 매장됐을 가능성이 있다며 추진한 탐사사업이다. 석유공사는 2024년 12월부터 지난해 2월까지 첫 탐사정 시추에 나섰지만, 경제성을 확보할 수준의 가스는 확인하지 못했다.* This article has been translated by AI. 2026-09-16 12:08:00
  • Second Round of Youth Future Savings Applications Opens October 7
    Second Round of Youth Future Savings Applications Opens October 7 The second round of applications for the Youth Future Savings program will begin on October 7. Existing Youth Transition Account holders will have the opportunity to switch to the Youth Future Savings program.The Financial Services Commission and the Korea Inclusive Finance Agency announced on September 16 that the application period for the second round of the Youth Future Savings program will run from October 7 to 16, aimed at expanding asset formation opportunities for young people.On October 7, young people born in odd-numbered years can apply, while those born in even-numbered years can apply on October 8. From October 12 to 16, applications will be accepted regardless of birth year. The application review will take place from October 19 to November 13, and successful applicants can open accounts from November 16 to 27.The Youth Future Savings program allows individuals aged 19 to 34 to contribute between 1,000 won and 500,000 won monthly for three years, with the government matching a certain percentage of contributions and providing tax benefits on interest income. Eligible participants are those born between November 17, 1991, and November 27, 2007. The duration of military service can be excluded from the age calculation for up to six years.The income requirements remain the same as in the first round. Young people with a total salary of 75 million won or less, or small business owners with annual sales of 300 million won or less, and whose household income is at or below 200% of the median income are eligible. Among them, general income earners with a total salary of 60 million won or less can receive a government contribution of 6% of their contributions.Employees of small and medium-sized enterprises who meet certain criteria, as well as new hires, can apply under a preferential category. This category requires a total salary of 36 million won or less or annual sales of 100 million won or less, with a government contribution matching rate of 12%.Additionally, existing Youth Transition Account holders will have the opportunity to switch to the Youth Future Savings program. While dual enrollment in the Youth Transition Account and the Youth Future Savings program is not allowed, this second round of applications permits special early termination of the Youth Transition Account to enroll in the Youth Future Savings program.Meanwhile, the Financial Services Commission has submitted a 2027 government budget proposal to the National Assembly that includes expanding the eligibility for the Youth Future Savings program to all young people and increasing the preferential government contribution matching rate from 12% to 15%. For employees of local small businesses, the preferential matching rate could be raised to 25%.If the budget proposal is approved by the National Assembly, existing Youth Future Savings participants will also receive the increased preferential contributions retroactively. The expansion of eligibility will take effect starting with the 2027 recruitment after system adjustments.* This article has been translated by AI. 2026-09-16 12:04:20
  • Bank of Korea Revamps Foreign Asset Management Strategy for Domestic Firms
    Bank of Korea Revamps Foreign Asset Management Strategy for Domestic Firms The Bank of Korea is significantly overhauling its foreign asset management portfolio for domestic asset management firms, shifting from a focus on quantitative support to enhancing the operational capabilities and qualitative growth of these firms.In a plan announced on September 16, the Bank of Korea stated that due to a surge in private sector investments in overseas stocks, the need for policy support for passive overseas stock management has diminished. Consequently, the bank will reduce its allocation to overseas stock management while increasing its investment in overseas bonds. Notably, the existing U.S. aggregate bond strategy will be transitioned to a global aggregate bond strategy, which will broaden the investment targets and regions.Cho Seok-bang, head of the Foreign Asset Management Division at the Bank of Korea, remarked, "Domestic asset management firms have been overly focused on stocks, with no overseas stocks and only U.S. bonds domestically. We recognized this issue in the past and have been discussing adjustments internally since last year."Since beginning to entrust foreign assets to domestic asset management firms in 2012 with investments in Chinese stocks, the Bank of Korea has steadily expanded its entrusted sectors to include developed country stocks in 2019 and U.S. aggregate bonds in 2022. The entrusted amount has grown from $100 million in 2012 to $3.21 billion in 2025.The Bank of Korea assessed that, thanks to long-term funding support and the activation of private sector overseas stock investments, domestic firms have established overseas investment infrastructure and developed independent market resilience, achieving a significant level of the initial goal of creating a quantitative base. However, it noted that existing overseas stock management funds have been largely passive, closely following benchmarks, which limits the development of advanced operational capabilities.The core of the new global aggregate bond strategy involves managing bonds from approximately 28 countries and over 30,000 securities, requiring simultaneous management across multiple countries and various currency zones. This presents a higher level of operational complexity compared to the previous U.S. aggregate bond strategy, which focused on one country and around 10,000 securities. It demands advanced active management capabilities that go beyond simple interest rate forecasts, requiring comprehensive analysis of various factors such as central bank monetary policy, macroeconomic cycles, and exchange rate volatility.The Bank of Korea expects that the global aggregate bond strategy will enhance the systematic research and risk management capabilities of domestic asset management firms. Additionally, it will facilitate direct comparisons with large overseas asset management firms operating under the same strategy, making it easier to identify and address the shortcomings of domestic firms.As part of this overhaul, approximately $1 billion in overseas stock assets managed by domestic firms will be shifted to the global aggregate bond strategy. Kim Jeong-hoon, head of the entrusted management team at the Bank of Korea, stated, "Internally, we plan to work with about three firms to transfer around $1 billion from stocks to bonds. The final amount may vary during discussions with the firms involved."Notably, the management fees paid by the Bank of Korea for the global aggregate bond strategy will be more than double those for the existing passive stock strategy. The bank explained that this move is not merely a reduction in support for domestic asset management firms but a measure to maximize policy effectiveness using limited foreign assets.The Bank of Korea emphasized that this restructuring is not aimed at reducing the scale of entrusted foreign assets for domestic asset management firms. It maintains its existing goal of expanding the entrusted proportion to around 10% in the medium to long term. However, it did not specify a concrete timeline for achieving this, noting that conditions must be established to allocate the increase in foreign exchange reserves to entrusted assets.Kim added, "Transitioning from quantitative to qualitative does not mean we will not expand the quantitative scale. We aim to concentrate support in areas that are more complex and where private sector demand is relatively lacking to maximize policy effectiveness."The adjustment in the entrusted proportion for domestic asset management firms will occur within the overall asset allocation framework of the Bank of Korea's foreign assets, ensuring that the overall proportions of stocks and bonds remain unchanged.* This article has been translated by AI. 2026-09-16 12:04:20
  • 19 Major Construction Firms Increase Subcontractor Prices by 107.7 Billion Won
    19 Major Construction Firms Increase Subcontractor Prices by 107.7 Billion Won Nineteen major construction companies will raise the prices paid to subcontractors by a total of 107.7 billion won due to challenges posed by the Middle East conflict and rising raw material costs. This increase represents approximately 80% of the amount promised for this year, and regulatory authorities will monitor the implementation of the cooperation agreement through a public-private consultative body.The Fair Trade Commission held a meeting on September 16 at the Specialized Construction Hall in Dongjak-gu, Seoul, attended by representatives from the comprehensive and specialized construction sectors. This meeting was a follow-up to the 'Construction Industry Cooperation and Fair Trade Agreement' signed with the 19 major construction firms on May 28. The consultative body was established to share implementation results, best practices, and trends in the enforcement of subcontracting laws.The participating construction companies include Samsung C&T, Hyundai Engineering & Construction, Daewoo Engineering & Construction, DL E&C, and GS Engineering & Construction, among others. At the time of the agreement, they committed to raising the prices paid to subcontractors by a total of 134.3 billion won within the year due to increased burdens from the Middle East conflict.At the time of the agreement, an initial increase of 34 billion won was already implemented. Following that, an additional increase of 73.7 billion won was made, bringing the total increase to approximately 107.7 billion won, achieving an implementation rate of about 80% compared to the annual plan.Contracts linked to subcontractor payments have also been expanded. Among the 19 construction firms, 15 have signed additional linked contracts with 52 subcontractors. Some companies have also conducted training on linked payment systems for their partners.A dispute resolution mechanism for subcontracting is operated by 14 construction firms. Since the agreement was signed, a total of 14 disputes have been resolved using this mechanism.Examples of improved cost burdens and payment conditions on-site were also shared. Kyeryong Construction Industry added a clause to its project specifications stating that 'the primary contractor will bear all waste disposal costs' and implemented this change. POSCO E&C supported the labor costs of safety personnel for subcontractors. Jeil Construction reduced the payment period from the previous 60 days to 30 days.The agreement signed in May includes key provisions for timely cash payments for subcontractor fees, the elimination of unfair retention practices, rapid adjustments to payments due to changes in supply costs, and the expansion of linked payment systems.It also stipulates that subcontractors should not be required to contract at amounts lower than those submitted during bidding and eliminates clauses that unfairly transfer costs related to industrial safety and waste disposal. In cases where construction is disrupted due to war or supply chain instability, it allows for mutual discussions on extending deadlines and waiving penalties.The public-private consultative body will meet at least once a year to share the status of agreement implementation and trends in subcontracting law enforcement, as well as to discuss industry recommendations. The Fair Trade Commission plans to hold a meeting with 30 construction firms that signed a separate cooperation agreement on July 24 in November.The Fair Trade Commission stated, 'We will strive to ensure that the cooperation agreement is properly implemented through the public-private consultative body and will continue to communicate to bring about tangible changes on-site.'* This article has been translated by AI. 2026-09-16 12:04:20
  • Insurance Companies Solvency Ratio Declines for First Time in Five Quarters
    Insurance Companies' Solvency Ratio Declines for First Time in Five Quarters 보험사 건전성 지표인 지급여력비율(K-ICS)이 2분기 소폭 하락했다. 주가 상승으로 가용자본이 크게 늘었지만 주식위험액 증가로 요구자본도 함께 확대된 영향이다. 16일 금융감독원에 따르면 지난 6월 말 보험사의 경과조치 적용 후 지급여력비율은 215.2%로 전분기 대비 0.8%포인트(p) 하락했다. 지급여력비율은 보험사의 가용자본을 요구자본으로 나눈 재무건전성 지표다. 보험사가 예상치 못한 손실을 감당할 수 있는 자본을 얼마나 확보하고 있는지를 보여준다. 생명보험사는 206.8%로 전분기보다 0.7%p 하락한 반면 손해보험사는 230.9%로 1.2%p 상승했다. 대형 생보사 중에서는 삼성생명(208.2%)과 교보생명(200.8%)이 각각 1.8%p, 10.6%p 하락한 반면 한화생명(168%)은 5.9%p 상승했다. 대형 손보사에서는 DB손해보험(204.4%)과 메리츠화재(230.5%)가 각각 27.7%p, 10.2%p 떨어졌다. 반면 삼성화재(282.8%)는 12.7%p 늘었고 현대해상(209%)도 1.9%p 증가했다. 가용자본과 요구자본이 모두 큰 폭으로 증가하면서 지급여력비율은 전분기보다 소폭 하락한 것으로 분석된다. 가용자본은 380조원으로 전분기보다 69조1000억원(22.2%) 증가했다. 당기순이익 시현과 주가 상승에 따른 기타포괄손익누계액 증가 등이 영향을 미쳤다. 보험업계의 당기순이익은 4조5000억원 늘었고 주가 상승으로 기타포괄손익누계액은 61조2000억원 증가했다. 요구자본도 176조6000억원으로 전분기보다 32조6000억원(22.6%) 늘었다. 주가 상승으로 주식위험액이 35조2000억원 증가한 것이 주요 원인이다. 금감원은 최근 시장금리 상승 등 대외환경 변화에 대응해 보험사가 충분한 지급여력을 확보할 수 있도록 감독을 강화할 방침이다. 특히 자본구조가 취약한 보험사를 중심으로 자본의 질을 높이고 위험관리를 강화할 수 있도록 면밀히 모니터링할 계획이다.* This article has been translated by AI. 2026-09-16 12:04:10