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Samsung and SK Hynix Stock Drop Hits Retirement Funds The sharp decline in shares of semiconductor giants Samsung Electronics and SK Hynix has impacted retirement pension accounts. Investors who increased their stakes in these companies through bond mixed ETFs, classified as safe assets, have recorded losses exceeding 20% in July, raising concerns about the classification of safe assets in retirement pensions.According to the Korea Exchange on July 30, four bond mixed ETFs related to Samsung Electronics and SK Hynix, including 'KIWOOM Samsung Electronics & SK Hynix Bond Mixed 50' (-25.87%), '1Q K Semiconductor TOP2 Bond Mixed 50' (-25.44%), 'RISE Samsung Electronics SK Hynix Bond Mixed 50' (-25.00%), and 'KODEX Samsung Electronics SK Hynix Bond Mixed 50' (-24.86%), all fell by more than 20%. The decline in these ETFs is attributed to the respective drops in the stock prices of Samsung Electronics and SK Hynix, which fell by 38.22% and 50.11% this month.The situation was markedly different just a quarter ago. Investors flocked to bond mixed ETFs as a way to capitalize on the semiconductor boom, leading to a rapid influx of funds. The largest bond mixed ETF, 'RISE Samsung Electronics SK Hynix Bond Mixed 50,' recorded returns of 12.7% and 22.2% in April and May, respectively. Its total assets under management (AUM), which stood at approximately 32.1 billion won at its February launch, surged to over 1 trillion won by the end of April, reaching 3.465 trillion won by the end of May and 4.5574 trillion won by the end of June.The demand to maximize stock exposure while adhering to retirement pension regulations appears to have driven the popularity of these products. Retirement pensions limit the investment in risky assets like stocks to 70%. However, by utilizing bond mixed ETFs (which have less than 50% stock), investors can effectively increase their stock investment exposure within retirement accounts to as much as 85%.However, with recent market declines leading to significant losses in retirement accounts, questions have arisen about the appropriateness of classifying bond mixed ETFs, which include a limited number of stocks, as safe assets. An industry insider noted, "With the recent launch of single-stock leveraged ETFs, the volatility of Samsung Electronics and SK Hynix has increased, which inevitably affects retirement pension returns. Just because half of the portfolio is in bonds does not guarantee safety." Concerns have also been raised that the concentration of investments in a few stocks contradicts the long-term savings and diversification goals of retirement pensions.The Korea Financial Investment Association, which has been considering expanding the stock investment limit for retirement pensions, is monitoring the situation. Chairman Hwang Seong-yeop indicated during a press conference marking his 100th day in office in April that he would review whether the current 70% limit on risky asset investments restricts the choices available to participants.A representative from the association stated, "The pension market is showing signs of overheating around ETFs faster than expected, and we are continuously gathering opinions from our member firms to ensure market stability and investor protection."* This article has been translated by AI. 2026-07-30 17:36:00 -
KOSPI extends losses as chipmakers' strong earnings fail to lift sentiment SEOUL, July 30 (AJP) - South Korean stocks extended losses for a third straight session on Thursday, with the benchmark KOSPI hovering around 5,600 points despite strong foreign and institutional buying, as retail investors sold shares following this week's market rout. The index opened higher and appeared likely to climb back above 6,000 points, but fell in afternoon trading as concerns over semiconductor demand, renewed tensions in the Middle East and a weak overnight session on Wall Street weighed on investor sentiment. The government announced a set of new stricter rules to limit leveraged single-stock ETFs, but concerns about chip stocks and global risks remained the bigger focus for traders. Foreign investors purchased a net 1.33 trillion won ($960 million), while institutions bought a net 66.3 billion won, cushioning the market after Tuesday's panic-driven plunge. Retail investors, however, turned net sellers, unloading 1.42 trillion won after two consecutive sessions of bargain buying. Despite posting record quarterly earnings, Samsung Electronics failed to lift market sentiment. Its shares slipped 0.72 percent to 207,000 won, while SK hynix tumbled 5.64 percent. Defense stocks bucked the broader market after the U.S. resumed airstrikes against Iran for the first time in about a week. Hanwha Aerospace jumped 6.79 percent to 865,000 won, while Korea Aerospace Industries gained 2.72 percent. LG Energy Solution climbed 6.49 percent to 320,000 won, Samsung Biologics rose 3.25 percent to 1,527,000 won, HD Hyundai Heavy Industries advanced 3.23 percent to 448,000 won and KB Financial added 4.56 percent to 167,400 won. But SK Square fell 6.00 percent to 799,000 won and Samsung Electro-Mechanics slid 14.58 percent to 879,000 won. On the junior KOSDAQ, battery materials makers outperformed despite the broader weakness. EcoPro, a battery materials producer, rose 4.75 percent to 70,600 won, while affiliate EcoPro BM, a cathode materials maker, gained 4.21 percent to 96,500 won. Biopharmaceutical company Alteogen slipped 1.06 percent to 279,500 won, robotics developer Rainbow Robotics fell 9.14 percent to 373,000 won, semiconductor equipment maker Jusung Engineering tumbled 15.33 percent to 98,300 won, chip testing equipment maker Leeno Industrial dropped 5.15 percent to 55,200 won, biopharmaceutical company HLB fell 4.16 percent to 29,950 won, and chip equipment supplier Wonik IPS declined 8.29 percent to 76,300 won. But the South Korean currency strengthened with the dollar trading at 1,439.5 won from 1,446.7 won in the previous session. Analysts said recent market indicators suggest selling pressure from foreign investors may be beginning to ease. Since May, cumulative net short futures positions, which had swelled to nearly 22 trillion won, have been cut by more than half, while net selling in the cash market has also moderated. BNK Investment & Securities said the KOSPI has already reached its first technical downside target after plunging nearly 40 percent over the past month, raising the possibility of a technical rebound. However, it said any recovery could remain limited unless buying momentum strengthens after the index broke below its upward trendline. The brokerage attributed the recent selloff to global investors reducing exposure to technology stocks, continued foreign selling and fund outflows from semiconductor-focused equity funds after chip shares lost momentum in late June. Whether foreign buying continues will depend not only on corporate earnings and valuations but also on broader global risk sentiment including the risk of renewed unwinding in yen-funded carry trades. Sustained overseas inflows would be an early sign that selling pressure is fading and confidence is gradually returning to the market. Regional markets offered little additional direction, reflecting continued caution over the global economic outlook and spending on AI-related technologies. Japan's Nikkei 225 rebounded 0.71 percent on bargain hunting after recent losses, while Hong Kong's Hang Seng Index edged up 0.21 percent. China's Shanghai Composite slipped 0.62 percent as persistent concerns over the property sector and slowing domestic demand weighed on sentiment. Investors also looked to upcoming earnings from major U.S. technology companies for signs of whether heavy AI investment would continue to drive semiconductor demand. 2026-07-30 17:34:05 -
Military to inspect guard operations across Army corps after ammunition controversy SEOUL, July 30 (AJP) - South Korea’s military will inspect guard operations across all Army corps after controversy emerged over a front-line unit’s decision not to keep live ammunition loaded in crew-served weapons during border guard operations. According to the Joint Chiefs of Staff on Thursday, the Army’s Ground Operations Command will begin the inspection with I Corps and expand it to all subordinate corps. The review will look into whether other corps have changed guard operation guidelines at the discretion of their commanders, as I Corps did. It will also examine the operation of crew-served weapons and troop deployment at front-line guard posts and general outposts. A military official said the inspection will not be limited to I Corps, which was at the center of the controversy, but will cover all corps-level units. “We plan to check whether guard units are properly carrying out their functions, including the operation of crew-served weapons, and take necessary measures if needed,” the official said. The Ground Operations Command oversees six corps: five regional corps, including the Capital Corps and I, II, III and V Corps, as well as the VII Maneuver Corps. The controversy began after it was revealed that I Corps, which oversees the western front, had changed its guard operation guidelines in the first half of this year so that live ammunition would not be loaded into crew-served weapons, including K6 heavy machine guns and K4 automatic grenade launchers, at front-line guard posts and general outposts. In front-line units, South Korean troops are generally required to keep such weapons loaded with live ammunition. But I Corps reportedly changed the guideline at the corps commander’s discretion, keeping ammunition in ammunition boxes rather than loaded into the weapons. The measure was reportedly intended to prevent accidental discharges. However, critics have raised concerns that the change could weaken the military’s readiness to respond to emergencies in front-line areas near the border. The Joint Chiefs of Staff, which oversees military operations, had not been briefed on the change in I Corps’ guard operation guidelines. 2026-07-30 17:32:40 -
DL E&C Reports 26% Increase in Q2 Operating Profit, Surpasses 3 Trillion Won in New Orders DL E&C has significantly increased its operating profit and new orders in the second quarter of this year, driven by improved profitability in housing projects and expanded urban redevelopment contracts. The company is also pursuing a 55.5 billion won share buyback to enhance performance and shareholder return policies.On July 30, DL E&C announced its preliminary results for the second quarter, reporting consolidated sales of 1.8 trillion won, operating profit of 159.4 billion won, and new orders totaling 3.1189 trillion won.The operating profit rose 26% compared to the same period last year, thanks to stabilized cost rates in housing projects. Cumulative operating profit for the first half of the year increased by 53% year-on-year, while new orders surged approximately 224% during the same period.The company attributed its performance improvement to a selective order strategy focused on profitability and risk management, along with effective cost control. Notably, the stabilization of cost rates in the housing sector and a focus on profitability contributed to the profit increase.New orders saw a significant rise, reflecting contracts from urban redevelopment projects such as the Hanam 5 District and Mokdong 6 District. DL E&C plans to actively participate in key redevelopment projects in Seoul, including the Seongsu 2 District, in the second half of the year.The company is also diversifying its business portfolio, focusing on energy and data centers. In June, DL E&C secured a 550 billion won contract for the Dongjeju Combined Power Plant and is expanding its contracts in domestic combined power and pumped storage power infrastructure. The company aims to strengthen its position in the next-generation energy market, leveraging its experience in North American plants and small modular reactor (SMR) design capabilities.In the data center sector, DL E&C anticipates further order expansion. In the first half of the year, its subsidiary DL Construction secured a 126.8 billion won contract for an AI data center in Bucheon, and the company is pursuing large-scale data center projects in the Chungcheong and metropolitan areas in the second half.DL E&C has also maintained financial stability, reporting a net cash position of approximately 1.2 trillion won and a debt ratio of 86.4% as of the end of the second quarter. Since its split in 2021, the company has consistently generated positive operating cash flow and recently received an 'AA-' (stable) credit rating for corporate bonds and an 'A1' rating for commercial paper from a domestic credit rating agency.Additionally, DL E&C announced a share buyback trust agreement worth 55.5 billion won to enhance shareholder value. The contract period runs from July 31 to December 24.This share buyback is part of the company's shareholder return policy for 2024-2026, representing 15% of its consolidated net profit of 370.2 billion won last year. The company continues to allocate 10% of its consolidated net profit for cash dividends and 15% for share buybacks.A DL E&C official stated, "The results of our profitability-focused operations and thorough cost management are now being reflected in our performance, establishing a virtuous cycle of improved profits and cash generation. We will continue to enhance shareholder value alongside our performance improvements."Meanwhile, in the '2026 Construction Company Capability Evaluation' released by the Ministry of Land, Infrastructure and Transport on July 30, DL E&C ranked sixth with a construction capability evaluation amount of 9.352 trillion won, dropping two spots from the previous year.* This article has been translated by AI. 2026-07-30 17:32:20
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SH to Supply 3,421 Redevelopment Rental Units, Easing Access for Youth and Singles The Seoul Housing and Communities Corporation (SH) is recruiting tenants and prospective tenants for 3,421 redevelopment rental units. The organization has revised its scoring criteria to expand opportunities for low-income youth and single-person households, while also streamlining the application process. On July 30, SH announced on its website that it is seeking tenants and prospective tenants for a total of 3,421 units. This supply consists of 1,528 remaining units due to tenant departures and contract cancellations, along with 1,893 prospective tenant slots. The units available are small rental apartments with a floor area of 39 square meters or less, prioritized for former tenants displaced by redevelopment. Eligibility for general applications requires that applicants be members of a household without housing as of the announcement date, residing in Seoul. They must meet criteria including a monthly average income of 70% or less of the urban worker's income (50% for first priority, 70% for second priority), total assets of 345 million won or less, and a vehicle value of 45.42 million won or less. SH has also revised the selection criteria and application procedures. The new system removes age and household size from the scoring criteria, now only considering the number of contributions to the housing savings plan and the duration of residence in Seoul. Additionally, online document submission has been introduced to enhance application convenience. Applicants who have difficulty using the internet can still submit documents via registered mail. The organization expects that these improvements will increase opportunities for low-income youth and single-person households, who were previously at a disadvantage under the old scoring system. The time from application to occupancy is also expected to be reduced by about one month compared to previous recruitment announcements, alleviating waiting burdens. Applications will be accepted online and via mobile. Priority applications will be open from August 11 to 14, with secondary applications on August 20. However, if the number of priority applicants exceeds 200% of the available units, secondary applications will not be accepted. For elderly and disabled applicants who may have difficulty using the internet, in-person applications will be available at SH's headquarters on the second floor auditorium from August 12 to 14. Those who pass the document review will be announced on August 27, with final winners revealed on December 30. Occupancy is expected to begin in February 2027. Meanwhile, SH President Hwang Sang-ha visited the site of the Shinnae 4 water pipeline relocation project on July 29 to inspect safety management measures in preparation for the heatwave.* This article has been translated by AI. 2026-07-30 17:32:20
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Extreme Heat Continues Across South Korea on Last Day of July On the last day of July, South Korea is expected to experience extreme heat and tropical nights nationwide.According to the Korea Meteorological Administration, on July 31, the perceived temperature in most regions will soar to between 33 and 35 degrees Celsius due to the continuous influx of hot and humid air influenced by the North Pacific high-pressure system.Morning low temperatures are forecasted to range from 21 to 27 degrees Celsius, while daytime highs will reach between 31 and 38 degrees Celsius, exceeding the seasonal averages. Major cities are expected to see temperatures of 34 degrees in Seoul, 35 degrees in Gwangju, and 37 degrees in Daegu and Busan.In particular, Yangsan in South Gyeongsang Province is predicted to hit 39 degrees Celsius, indicating severe heat conditions.The heat is not expected to dissipate overnight, with tropical nights anticipated in various regions, including Seoul and Busan, where low temperatures will exceed 25 degrees Celsius.The sky will be partly cloudy in the central region, while the southern areas and Jeju Island will be mostly clear, allowing for strong sunlight.From early morning to the morning hours, fog with visibility of less than 1 kilometer is expected along the west coast and some inland areas, necessitating caution for commuters.As this period coincides with high tide, thorough preparations are needed to prevent flooding in low-lying coastal areas and to avoid safety accidents.* This article has been translated by AI. 2026-07-30 17:32:10
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Young Applicants Dominate Housing Lottery Despite Decline in Registrations This year, more than 350,000 people have left the housing lottery system, accelerating the trend of 'opting out' of lotteries. However, the proportion of applicants under 40 in the Seoul and Gyeonggi housing market has increased. Young homebuyers, facing rising home and rental prices along with loan regulations, are remaining in the lottery system despite financial burdens.According to an analysis of regional housing lottery applicant data by the Korea Real Estate Agency, a total of 264,067 applicants registered in the first half of this year (January to June) in Seoul and Gyeonggi. Among them, 164,929 were in their 30s or younger, and 68,044 were in their 40s, totaling 232,973 applicants. This means that approximately 88.2% of applicants in Seoul and Gyeonggi were under 40.The trend of younger applicants in the Seoul and Gyeonggi housing lottery market has become more pronounced over the past three years. The combined proportion of applicants in their 30s and 40s rose from 83.9% in 2024 to 85.9% last year, and now stands at 88.2% this year, marking a 4.23 percentage point increase over two years.In Seoul, the proportion of applicants under 40 increased from 85.5% in the first half of 2024 to 86.5% last year, and now to 88.4% this year. The number of applicants in this age group rose from 156,482 to 192,063, a 22.74% increase. Notably, the proportion of applicants in their 30s rose from 58.76% to 61.39%. In Gyeonggi Province, the proportion of applicants under 40 increased from 84.87% in the first half of last year to 87.18% this year, a 2.31 percentage point rise.Conversely, the overall base of lottery participants is rapidly declining. According to the Housing Lottery Home, as of the end of June, the total number of housing lottery accounts was 25,834,034, a decrease of 350,073 from the end of last year. The high selling prices and low chances of winning have weakened the incentive to maintain lottery accounts. However, the demand for housing lotteries in Seoul and Gyeonggi continues, particularly among those in their 30s and 40s, who face limited options in both the buying and rental markets due to stringent loan regulations.In fact, the capital required to purchase existing apartments has significantly increased due to mortgage regulations. KB Kookmin Bank has limited the maximum loan amount for home purchases to 300 million won as of the 10th of this month. Under government regulations, this is half of the 600 million won available for purchasing homes priced below 1.5 billion won in the metropolitan area and regulated regions. To buy an apartment in Seoul with an average sale price of 1.3594 billion won, nearly 1.1 billion won in personal capital is required.The lottery process typically takes several years from the payment of the down payment to move-in, allowing applicants to secure funding more gradually than purchasing existing homes outright. Special allocations for newlyweds and first-time buyers, along with some lottery options, provide opportunities for younger applicants with lower scores. As the barriers to purchasing existing homes rise due to loan restrictions and increasing rental burdens, many young applicants find it difficult to forgo the lottery, leading to a 'crying while eating mustard' situation where demand accumulates despite low chances of winning.However, the lottery cannot serve as a workaround for loan regulations. Applicants still face loan restrictions when securing mid-term and final payments after winning. If the loan limit at the time of move-in is lower than expected or if the selling price increases, the required personal capital may rise, leading to more cases of contract cancellations or difficulties in moving in.Experts warn that if restrictions on securing funds for both purchasing existing homes and final payments for new developments continue, the lottery may fail to fulfill its original purpose of providing a pathway to homeownership. This makes it difficult to interpret the concentration of applicants in their 30s and 40s as a straightforward recovery of the lottery market.Park Ji-min, head of the Wollyong Housing Lottery Research Institute, stated, "Due to loan regulations, purchasing a home priced at 1.5 billion won now requires about 900 million to 1 billion won in personal capital, significantly raising the barriers to buying existing homes. Coupled with anxiety over rising home prices, this has led to a concentration of financially capable buyers among the economically active 30s and 40s, particularly focusing on value-driven offerings in the metropolitan area."* This article has been translated by AI. 2026-07-30 17:32:10
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Death Toll Rises to 34 in Kumamoto Earthquake; 9,800 Seek Shelter The death toll from the earthquake in Kumamoto Prefecture, Japan, has risen to 34. Many fatalities have been confirmed at the Japan Pulp and Paper Yatsushiro factory and Aeon Mall Kumamoto, as rescue and search operations continue.Asahi Shimbun reported that Kumamoto Prefecture held a disaster response headquarters meeting on the afternoon of July 30, announcing that the number of casualties from the earthquake has reached 120. Among the deceased, 25 have been confirmed by local municipalities as having died due to the disaster. The death toll increased by 17 since the morning announcement.The major affected facilities include eight fatalities at the Japan Pulp and Paper Yatsushiro factory and seven at Aeon Mall Kumamoto in Kashima Town, Kumamoto Prefecture. There are also five individuals reported with serious injuries.At Aeon Mall Kumamoto, an explosion and building collapse occurred following the earthquake. Forty members of the Fukuoka Prefectural Police's first response team were deployed to the scene, where the ceiling and exterior walls had collapsed, creating a risk of secondary incidents while they searched for missing persons.According to reports, one rescue team member stated, "We operated under the belief that there must be someone inside waiting for rescue." The search began at approximately 10:30 PM on July 28, and by 4:30 PM the following day, they discovered a missing person in cardiac arrest.In a collapsed house in Yatsushiro City, a man was found trapped. Fire authorities reported that they used a crane to support the roof before removing debris to rescue the man, but he was later confirmed dead.Takaichi Sanae, Japan's Minister for Internal Affairs and Communications, announced plans to establish a local disaster response headquarters at the Kumamoto Prefectural Office. As of the afternoon of July 30, about 9,800 residents are taking shelter in approximately 420 evacuation centers.Minister Takaichi emphasized the importance of ensuring a safe environment for evacuees, noting the increased risk of heat-related illnesses due to ongoing high temperatures. "Supporting affected residents is a critical phase," she stated.The Self-Defense Forces are conducting rescue and relief operations with a total of 5,100 personnel, an increase of 500 from the previous day. They are also transporting drinking water and essential supplies using ships and other means.The earthquake struck Kumamoto Prefecture at 4:27 PM on July 28, registering a maximum intensity of 7.1.* This article has been translated by AI. 2026-07-30 17:32:00
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Japan quake puts Korea's AI ambitions on seismic alert SEOUL, July 30 (AJP) - Every powerful earthquake beneath the East Sea sends more than tremors across South Korea. As the country races to build the world's next artificial intelligence manufacturing hub — from semiconductor fabs to hyperscale data centers — seismic resilience is becoming an industrial necessity rather than simply a matter of public safety. The urgency was underscored this week after a powerful earthquake struck southwestern Japan, temporarily disrupting semiconductor production despite causing little direct damage to manufacturing facilities. The July 28 earthquake measured magnitude 7.1 on the Japan Meteorological Agency's scale and Mw 6.8 on the moment-magnitude scale. It reached Japan's highest seismic intensity of 7, leaving at least 17 people dead as of Thursday, while authorities continued examining whether another 28 deaths were linked to the disaster. The quake temporarily halted operations at Japan Advanced Semiconductor Manufacturing (JASM), Taiwan Semiconductor Manufacturing Co.'s manufacturing arm in Kumamoto. Employees were evacuated and later confirmed safe while the company inspected buildings and precision equipment before beginning a phased restart. Construction work at a second fabrication plant was also suspended because of continuing aftershocks. The disruption illustrated a growing reality for the semiconductor industry: modern chip production depends not only on intact buildings but also on ultra-sensitive manufacturing equipment that can be interrupted by even moderate ground vibrations. That lesson carries particular significance for South Korea. The government is accelerating plans to establish a new semiconductor manufacturing belt in the Honam region as part of its broader AI industrial strategy. In July, it selected the site of the Gwangju military air base as the preferred location for a national semiconductor cluster, citing its expansive publicly owned land and established transport and urban infrastructure. About 8.3 million square meters has since been designated as a candidate site for a national high-tech semiconductor industrial complex. The project is expected to attract hundreds of trillions of won in private investment over the coming decades as semiconductor manufacturing expands beyond the country's traditional southeastern production base. Together with new AI data centers and related power infrastructure, the region is poised to become one of South Korea's most important high-tech manufacturing corridors. The Japanese earthquake also reverberated across the Korean Peninsula. A magnitude-5.8 tremor was detected Wednesday night in parts of southern South Korea, including Gwangju, Yeosu and parts of South Gyeongsang Province. Instrumental intensity reached only Level II, meaning the shaking was felt by some people indoors but was too weak to cause damage. Scientists say the two events were not directly connected. Michael Manga, distinguished professor of Earth and Planetary Science at the University of California, Berkeley, said large earthquakes can trigger distant geological responses ranging from landslides to volcanic eruptions, but the Kumamoto earthquake was extremely unlikely to alter stresses beneath the Korean Peninsula. "Earthquakes do trigger distant responses, ranging from landslides to volcanic eruptions," Manga told AJP. "But given the distance and magnitude of the earthquake, the odds of any effects in Korea are very, very low." Even so, South Korea's own seismic history shows that the peninsula is not immune to damaging earthquakes. The magnitude-5.8 Gyeongju earthquake in September 2016 remains the strongest instrumentally recorded earthquake since nationwide observations began. A year later, a magnitude-5.4 earthquake struck Pohang, causing greater damage despite its smaller magnitude because it occurred beneath a densely populated city. Government investigations later concluded that fluid injection associated with an enhanced geothermal energy project had likely triggered the earthquake, demonstrating that human activity can also influence seismic hazards. The Honam region has also experienced notable seismic activity. A magnitude-4.8 earthquake struck Buan County in North Jeolla Province in June 2024, the largest instrumentally recorded earthquake in the province since nationwide monitoring began in 1978. Kim Seong-ryong, professor of Earth and Environmental Sciences at Korea University, said a magnitude-7 earthquake comparable to this week's Japanese event is not considered a realistic scenario for Honam. A magnitude-5.5 to 5.8 earthquake near Gwangju cannot be ruled out entirely, he said, but such events would likely occur only once every several thousand to tens of thousands of years, if at all. The seismic risk around Gwangju remains "far lower" than in southeastern regions such as Gyeongju and Busan's Gijang County, where several of South Korea's nuclear power plants are concentrated, Kim said. Lower hazard, however, does not mean zero risk. Unlike conventional manufacturing, semiconductor fabrication requires nanometer-scale precision. Even vibrations too small to damage factory buildings can interrupt lithography systems, halt production lines and require lengthy recalibration of equipment, as the temporary shutdown in Kumamoto demonstrated. Kim pointed to Samsung Electronics' semiconductor campus in Pyeongtaek, another region with relatively low seismic activity. The facility's ability to continue operating through minor tremors suggests that critical manufacturing equipment has been properly anchored and isolated from ground vibrations, he said. For future semiconductor clusters, that engineering approach will become increasingly important. Experts say earthquake resilience begins long before construction, with detailed geological surveys to identify hidden faults and assess local soil conditions. That must be followed by seismic structural design, vibration isolation for precision equipment, secure anchoring of manufacturing systems, and redundant electricity and water infrastructure capable of supporting continuous operations during emergencies. The scientific conclusion is therefore not that Honam is earthquake-proof. Rather, it appears to face lower seismic hazards than southeastern South Korea while still requiring rigorous engineering and site-specific risk assessment. As South Korea builds an AI economy increasingly dependent on uninterrupted semiconductor production and massive data centers, resilience is becoming a competitive advantage as much as a safety requirement. The lesson from Kumamoto is not that South Korea should hesitate to expand its semiconductor industry. It is that the next generation of AI factories will compete not only on cutting-edge technology and abundant electricity, but also on their ability to withstand increasingly complex natural risks. For a country investing hundreds of trillions of won in its AI future, earthquake preparedness is no longer merely an engineering consideration. It has become part of industrial strategy. 2026-07-30 17:31:58 -
11st Faces Backlash After Employee Death Amid Restructuring Efforts 11st, under the leadership of CEO Park Hyun-soo, has faced significant backlash following the death of an employee during its restructuring process. While the company has reduced its losses through repeated voluntary retirements and workforce reallocations, internal dissent regarding the restructuring procedures and management practices has intensified, putting Park's leadership to the test.According to the retail industry on July 30, 11st has implemented voluntary retirement programs for four consecutive years from 2023 to this year as part of its workforce efficiency efforts. Since Park took office in April 2022, there have been four rounds of voluntary retirements within just over a year. As of June 23, the company has been offering a voluntary retirement program and special leave system, with applications accepted until September. Some managerial positions are reportedly included in this month's voluntary retirement plan.Park, a finance and management expert who joined 11st as the head of management in 2018 while at SK Planet, has focused on improving profitability rather than expanding the company's size since taking over as CEO. His strategy has emphasized cost reduction, workforce cuts, and organizational efficiency.Financial results have shown some improvement. In the first quarter of this year, 11st reported sales of 93.1 billion won, an 18% decrease from the same period last year, but its net loss was reduced to 7.8 billion won.The controversy arose during the restructuring process when an employee assigned to a newly created integrated support task force (TF) died. This incident has sparked debates over the appropriateness of the personnel standards and procedures used.The deceased employee reportedly expressed feelings of injustice in an email sent to Park and HR executives, stating that while they understood the company's difficult management situation, they had not received adequate explanations for being selected for the TF despite having received excellent performance evaluations in recent years.After confirming the employee's death, Park visited the funeral home with HR representatives, but the family declined to accept condolences from 11st employees, leading to his departure.Internally, there is growing dissent regarding the lack of transparency surrounding the background, principles, and criteria for selecting individuals for the restructuring. Employees claim they were informed of decisions that had effectively already been made without satisfactory explanations.In response, the family sent a formal letter to 11st on July 27, requesting information about the existence of the integrated support TF, the criteria and procedures for selecting its members, and the deceased's work and evaluation history. The family stated, "There was a lack of sufficient meetings or inquiry procedures for members to understand, and the way decisions were communicated felt more like notifications of finalized matters." They added that the deceased had inquired about the reasons for the personnel change even while on leave, but the outcome remained unchanged.However, 11st maintains that it adequately explained the purpose of the restructuring and the appointment procedures in advance. A company representative stated, "We will continue to provide maximum support and effort," while also noting that the purpose of the restructuring was explained during town hall meetings and that the appointments were communicated through not only emails but also briefings and discussions.* This article has been translated by AI. 2026-07-30 17:28:00