Aju Press - Asia News Hub

Journalist

Latest by

Jeonju Mayor Jo Ji-hoon Pledges to Overcome Crisis and Fulfill Responsibilities Jo Ji-hoon, the mayor of Jeonju in North Jeolla Province, pledged to establish a communication-based administration grounded in citizen sovereignty to overcome crises and fulfill his responsibilities during his term in office.On July 30, Mayor Jo held a press conference marking his 30th day in office, where he announced the achievements of his administration and the future direction of governance under the slogan, 'A City Where We Become Special, Jeonju!'Mayor Jo highlighted various areas of progress, including the establishment of a citizen-centered communication administration, financial normalization, and the expansion of future new industry foundations, showcasing a brief but impactful period of change and innovation.He reflected, "The past month has been a time to lay the groundwork for a communication administration that honors the citizens' will to change Jeonju."Instead of a traditional inauguration ceremony, Mayor Jo began his duties with a policy briefing, implementing measures such as removing the speed gate barrier on the first floor and creating a 'citizen communication space' next to the mayor's office, aiming to foster an open administration accessible to all citizens.This initiative reflects Mayor Jo's strong commitment to lowering administrative barriers and prioritizing citizen voices in governance.Additionally, since taking office, he has visited disaster-prone areas, including the Jingi-dul drainage pump station and the Wolpyeong disaster risk improvement district, to assess disaster prevention systems and emphasize a shift to a field-centered administration that addresses safety threats promptly.In the past month, he has also accelerated efforts to secure future growth engines for revitalizing the local economy.Specifically, Mayor Jo began visiting AI and ICT companies and signed a memorandum of understanding with the Defense Acquisition Program Administration and North Jeolla Province to establish a 'Jeonbuk Jeonju Defense Industry Innovation Cluster,' laying the groundwork for entering the defense industry centered around the Jeonju carbon industrial complex.Mayor Jo identified 'financial recovery and normalization' as the top priority for his administration.He explained plans to quickly form a 'Financial Innovation Special Committee,' the first project he approved, and to collaborate with the city council to address the financial crisis.To this end, he is currently limiting the issuance of new local bonds and rigorously reviewing the appropriateness of financial investment projects while directly meeting with all 93 departments to receive detailed reports on major projects and current issues for in-depth discussions.Mayor Jo stated that he aims to implement proactive and active administration that breaks away from conventional practices to promote financial normalization. He added that despite challenging financial conditions, he will continue to work diligently on tasks for the development and prosperity of Jeonju.Previously, the transition committee for the mayor's office announced that Jeonju's general debt would reach 684.1 billion won, with managed debt, including rental-type private investment projects (BTL), totaling 698 billion won. The remaining local bond balance of 622.5 billion won at the end of this year is approximately 5.1 times the average of similar cities, which is 122.6 billion won.Mayor Jo emphasized, "I will ensure the completion of four core strategies: a city that respects citizens, an AI-specialized city, a city responsible for citizen care, and a top-five cultural industry city in Asia, all aimed at preserving and respecting the human dignity of all citizens under the slogan 'A City Where We Become Special, Jeonju.'" He added, "Jeonju will evolve into a platform city connecting 13 cities and counties in North Jeolla Province, embracing 5 million residents, and I will turn the framework of change established in the past month into concrete innovations and achievements."* This article has been translated by AI. 2026-07-30 13:56:00
President Lee's Approval Rating at 53%, 56% Disapprove of Real Estate Policy A recent public opinion survey revealed that 53% of respondents positively evaluate President Lee Jae-myung's governance. Conducted by Embrain Public, K-Stat Research, Korea Research, and Hankook Research from July 27 to 29 among 1,000 individuals aged 18 and older, the National Indicator Survey (NBS) showed a 2 percentage point decrease from the previous survey conducted two weeks ago. Negative evaluations rose to 37%, an increase of 3 percentage points. Regarding the government's real estate policy, 56% of respondents believe it is being handled poorly, marking a 9 percentage point increase since the last survey in January. Only 33% rated the policy positively, a decrease of 2 percentage points, while 11% withheld their opinions. Regionally, disapproval rates exceeded 60% in areas sensitive to real estate issues, including Seoul (60%), the metropolitan area (61%), and Daegu and North Gyeongsang Province (64%). In terms of party support, the Democratic Party garnered 40%, while the People Power Party received 21%. Compared to the previous survey, the Democratic Party's support increased by 2 percentage points, while the People Power Party's dropped by 1 percentage point. The Justice Party and the Reform Party each received 2%, the Progressive Party 1%, and other parties 1%. Additionally, 32% of respondents indicated they do not support any party. As for potential candidates for the Democratic Party's upcoming leadership election on August 17, Lee Jung-rae leads with 21%, followed by Kim Min-seok at 19% and Song Young-gil at 6%. Those who responded with 'none,' 'don't know,' or did not answer accounted for over half at 54%. The NBS survey was conducted via telephone interviews using virtual mobile numbers (100%). For more details, please refer to the Central Election Survey Deliberation Commission's website.* This article has been translated by AI. 2026-07-30 13:52:00
CJ CGV Shares Surge Over 10% Amid Investment Hopes CJ CGV shares surged more than 10% on July 30, driven by expectations that its subsidiary, CJ 4DPLEX, could secure significant investment from the National Growth Fund. The anticipation of a successful summer box office season also contributed to the stock's rise.As of 1:43 PM KST, CJ CGV shares were trading at 5,270 won, up 500 won (10.48%) from the previous trading day. The stock opened at 4,900 won and peaked at 5,550 won early in the session before pulling back slightly but maintaining strength in the 5,200 won range.The stock's rally is attributed to investor optimism regarding CJ 4DPLEX's efforts to attract external investments totaling 200 billion won. Reports indicate that the National Growth Fund is considering matching investments from the Advanced Strategic Industry Fund and private capital.However, the Financial Services Commission clarified that the 'CJ CGV new business' mentioned in reports is a project proposed by the financial sector seeking participation from the National Growth Fund, but it has not yet undergone detailed review.The competitive landscape of summer blockbusters is also bolstering investor sentiment. Director Na Hong-jin's film 'Hope' is expected to surpass 4 million viewers this weekend. Additionally, 'Spider-Man: Brand New Day,' starring Tom Holland, attracted 680,000 viewers on its opening day, heightening box office expectations.Furthermore, Christopher Nolan's new film 'Odyssey' is set to premiere on August 5.* This article has been translated by AI. 2026-07-30 13:52:00
U.S. Resumes Airstrikes on Iran, Boosting Defense Stocks in South Korea As the United States resumed airstrikes on Iran after a six-day pause, geopolitical tensions in the Middle East have escalated, leading to a surge in South Korean defense stocks.According to the Korea Exchange, as of 1:18 PM on July 30, Hanwha Aerospace was trading at 879,000 won, up 8.52% (69,000 won) from the previous trading day.At the same time, LIG Nex1 saw a 4.35% increase, reaching 647,000 won. SNT Dynamics and Korea Aerospace Industries rose by 7.76% and 1.96%, respectively, while Hyundai Rotem and Poongsan also experienced gains of 0.58% and 4.51% respectively.The rise in defense stocks is attributed to the renewed military tensions between the U.S. and Iran. Typically, when the risk of conflict in the Middle East increases, the potential for expanded defense budgets in various countries becomes more pronounced, improving investor sentiment towards defense-related stocks.The U.S. Central Command (CENTCOM), which oversees military operations against Iran, announced on July 29 via social media platform X (formerly Twitter) that airstrikes against Iran began at 8 PM Eastern Time that day.CENTCOM explained that this operation was a response to an attempted attack by Iran on U.S. forces stationed in the Middle East the previous day. Iran had launched multiple ballistic missiles toward a U.S. military base in Jordan, but U.S. forces reported successfully intercepting all of the missiles.* This article has been translated by AI. 2026-07-30 13:48:00
Fed holds rates despite three hike dissents, dovish signal: BOK SEOUL, July 30 (AJP) - The Federal Reserve held interest rates steady against three calls for a quarter-point increase, but markets nevertheless interpreted the decision as broadly dovish as Chair Kevin Warsh offered no clear trigger or timetable for further tightening, according to reports from the Bank of Korea’s overseas offices. The assessments were contained in the BOK Washington office’s review of the July Federal Open Market Committee meeting and the New York office’s report on financial-market reactions and views from major investment banks. The FOMC voted 9-3 to maintain the federal funds target range at 3.50 percent to 3.75 percent, with Dallas Fed President Lorie Logan, Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari favoring a 25-basis-point increase. The policy statement was virtually unchanged apart from a technical revision on the Fed’s policy of maintaining ample reserves, while the central bank said economic activity was expanding at a solid pace and inflation remained above its 2 percent target. Warsh rejected perceptions that more than five years of above-target inflation had led the Fed to tolerate a higher unofficial target, stressing that there was no softer alternative to its 2 percent goal. He said another rate increase could form part of the response if inflation remained elevated, but did not identify a specific threshold or timetable for further action. The BOK’s Washington office assessed that the principal disagreement within the FOMC concerned the timing of additional tightening and said policymakers were likely to continue discussing when another increase might become necessary. Warsh also defended the Fed’s reduced reliance on forward guidance, arguing that markets should form their own judgments from economic data rather than depend heavily on signals from policymakers. Market participants cited by the BOK’s New York office nevertheless viewed the meeting as broadly dovish because rates were held, the statement contained no substantive policy shift and Warsh did not provide a clear framework for responding to persistent inflation. Major investment banks cited in the report said the lack of a clearly identifiable reaction function, combined with reduced Fed communication, could increase uncertainty over the U.S. rate path and raise the term premium embedded in longer-dated Treasury yields. Treasury yields initially trimmed their gains, equities rose and the dollar weakened after the press conference, before those moves reversed as doubts over the Fed’s inflation-fighting credibility pushed longer-term yields higher and stocks lower. The 10-year break-even inflation rate rose 7 basis points and the two-year Treasury yield fell 1 basis point, while federal funds futures reduced the number of quarter-point increases priced in by September from one to 0.6 and by December from 1.7 to 1.3. The policy debate comes as strong U.S. productivity and corporate investment continue to support growth, with AI-related equipment and software spending rising at a pace approaching 20 percent from a year earlier even as the boom complicates the Fed’s assessment of whether higher chip prices signal broader inflation. 2026-07-30 13:46:07
Woori Bank Partners with Maybach to Target Ultra-High-Net-Worth Individuals Woori Bank announced on July 30 that it has signed a strategic memorandum of understanding (MOU) with HS Hyosung The Class, the official dealer of Mercedes-Benz, to jointly market to ultra-high-net-worth individuals.The agreement aims to enhance differentiated lifestyle services for ultra-high-net-worth clients by combining finance with premium mobility. This is significant as competition in asset management services has expanded beyond finance into the broader lifestyle sector.During the signing ceremony, a car docent program led by a professional curator and a premium financial seminar conducted by Woori Bank portfolio managers were held. The two companies plan to implement various joint marketing initiatives, including client invitation events and premium programs, to broaden their engagement with wealthy customers.Kim Sun, head of Woori Bank's Wealth Management (WM) Group, stated, "This is an example of demonstrating differentiated competitiveness that goes beyond financial services to encompass the client's entire lifestyle," adding that they aim to provide new value by combining professional asset management services with premium non-financial services.Meanwhile, Woori Bank's Two Chairs has been continuously expanding collaborations with premium brands, including a recent partnership with Shinsegae Department Store, to strengthen services that encompass both finance and lifestyle.* This article has been translated by AI. 2026-07-30 13:44:10
Korean Minister Proposes Greenbelt Release for Housing Supply Kim Yoon-deok, the Minister of Land, Infrastructure and Transport, stated that he is actively considering the option of partially releasing the greenbelt to supply housing if necessary. Although he has opposed the conversion of greenbelt land in principle, his perspective has changed since taking on the responsibility for housing supply. His commitment to addressing the housing supply shortage is commendable. However, the release of greenbelt land should not be used merely as a symbolic gesture to demonstrate supply intentions. More important than the decision to release land is the ability to construct homes on that land in a timely manner.The greenbelt in Seoul accounts for about a quarter of the city’s area as of 2024. While the total area is significant, much of it consists of mountainous and green spaces, limiting the amount of land suitable for large-scale development. The government mentioned the possibility of releasing the Seoul greenbelt in 2018 and 2020, but these plans were thwarted by opposition from the Seoul city government and controversies surrounding environmental and urban management issues. The Seoul city government has agreed to a limited release focused on areas with low conservation value to ensure housing supply for future generations, with the Seoripul district selected as a new development site. The key issue is not whether to release land, but rather which land to utilize and under what conditions.Above all, lessons from the 3rd New Town project must be heeded. Most of the key districts in the 3rd New Town were secured through large-scale greenbelt releases. The government transitioned areas with relatively low conservation value into large housing sites, but even the fastest area, Incheon Gyeyang, is not expected to see its first residents move in until December 2024, nearly eight years after the initial announcement. The 3rd New Town project illustrates that securing land through greenbelt release does not guarantee a swift supply.It is encouraging that the government is pushing to start construction on 18,200 housing units in the 3rd New Town this year. However, it is crucial to connect planned housing units to actual construction and occupancy. If compensation, relocation, permits, infrastructure, and transportation measures do not align, delays may occur at various stages, leading to bottlenecks later in the project. Transforming large-scale land designations and supply announcements into homes ready for occupancy is a completely different challenge.The already decided release of the Seoripul district will also serve as a test of the government's execution capabilities. The Ministry of Land aims to shorten the typical 56-month process from district designation to construction for 2,000 units in the Seoripul 2 district, targeting a start date in December 2028, more than two years earlier than usual. Even if additional releases are considered, the government must avoid repeating the delays seen in the 3rd New Town regarding compensation, permits, and infrastructure development. The greenbelt release is not an immediate solution to fill occupancy gaps. Without procedural streamlining, it may only add another long-term supply plan.If the greenbelt is to be utilized, the conditions must be clear. It should be limited to areas that have already been damaged or urbanized, with relatively low conservation value and sufficient proximity to workplaces and public transportation. Plans for securing public housing, preventing speculation, and recovering development profits should be presented alongside any release decisions. Randomly releasing outer green spaces could exacerbate urban sprawl and increase burdens on transportation and infrastructure.The government must provide not only new site proposals but also a concrete execution plan that encompasses existing projects. It should disclose compensation, land development, housing construction, and initial occupancy targets for each district, along with a timeline for each step and the expected reductions in duration. The 3rd New Town serves as a precedent that without execution capabilities, supply will be delayed even with greenbelt releases. If additional releases are considered, the government should first propose ways to normalize existing sites. What the government needs to prove is not the speed of presenting new sites, but its ability to resolve conflicts and build homes on time. Supply should be evaluated based on construction and occupancy, not merely on the area released or the announced quantities.* This article has been translated by AI. 2026-07-30 13:40:10
Federal Reserve Holds Interest Rates Steady Amid Market Turmoil The Federal Reserve has decided to keep its benchmark interest rate steady at 3.50% to 3.75%. While this decision was anticipated, the market reacted sharply. The yield on 30-year U.S. Treasury bonds surged to 5.2%, and stock prices plummeted. Long-term Treasury yields reached their highest levels since the financial crisis. In this decision, three of the twelve members of the Federal Open Market Committee advocated for a 0.25 percentage point increase. This indicates that there were significant calls for further tightening, considering inflation and international oil prices. However, Federal Reserve Chair Kevin Warsh, while opting to maintain the current rate, conveyed a hawkish message, stating, "We will not hesitate to act if necessary." His actions were dovish, but his words were hawkish. Warsh was appointed by President Donald Trump and took office in May. Trump has openly called for the Fed to lower interest rates to stimulate the economy and reduce the government's interest burden. Concerns have been raised since Warsh's nomination that he may prioritize the president's wishes over inflation and economic indicators. It is difficult to categorically label the decision to freeze interest rates as a mistake. While inflationary pressures have increased due to war and rising oil prices, the risk of economic slowdown cannot be ignored. The issue lies in the Fed's failure to gain the market's trust with its judgment and explanations. While expressing concern over inflation, the Fed opted for a freeze and did not clearly outline its future direction. This has led to suspicions that the Fed is delaying necessary actions due to political considerations rather than inflation concerns. This has led to interpretations that a so-called 'bond vigilante' movement is underway. Investors, believing that the government or central bank is ignoring inflation and fiscal soundness, are selling off Treasuries to send a warning to policymakers. The recent surge in Treasury yields is effectively a vote of no confidence in the Fed's decision to maintain rates. Market-driven tightening can be more severe than the Fed's rate hikes. When Treasury yields rise, mortgage rates, corporate loans, and corporate bond rates also increase. This raises the U.S. government's interest burden on its debt and dampens corporate investment and household consumption. The Fed has kept rates steady to stimulate the economy, but rising market rates could shock both the real economy and financial markets. A more serious issue is the erosion of trust in the Fed. Monetary policy involves not only actual interest rate adjustments but also managing market expectations. If the central bank is perceived to be swayed by politics, no matter how strong its statements are, the market will not believe them. When the power of words diminishes, the Fed may have to implement larger rate hikes later to restore trust, and the costs will be borne by the public and businesses. The Fed's misjudgment does not only affect the U.S. The rise in U.S. Treasury yields attracts global capital to the U.S., pushing up exchange rates and market rates in other countries. This can lead to capital outflows and currency depreciation in emerging markets, impacting bond and stock markets in South Korea as well. Warsh must prioritize responsibility for inflation, employment, and financial market stability over the wishes of the president who appointed him. If the situation calls for rate increases, he should raise them, and if a freeze is necessary, he must persuade the market with economic indicators and logic. Merely presenting a hawkish facade without taking action will not maintain trust. If politics holds the central bank's rates hostage, the market will demand higher rates as compensation.* This article has been translated by AI. 2026-07-30 13:40:10
Government to Limit Individual Investments in Single-Stock Leveraged ETFs The government has decided to impose individual investment limits on single-stock leveraged exchange-traded funds (ETFs). A proposal is being discussed to restrict total investment to within 20% of an individual's total assets. The minimum deposit requirement will also be raised from 10 million won to 30 million won, alongside measures to strengthen simulated trading and transaction costs, as well as adjustments to leverage in emergency situations. Although these measures are late, they are necessary.Single-stock leveraged ETFs aim to double the daily returns of specific stocks. While they can amplify gains when stock prices rise, they also double losses when prices fall. When significant funds flow into major stocks like Samsung Electronics and SK Hynix, the impact on individual stocks can ripple through the entire market. Despite this, authorities allowed the product to be launched in May without adequately considering the concentration and high volatility of the domestic stock market.The market capitalization of these ETFs ballooned from 4.4 trillion won at launch to 11.9 trillion won by mid-July. The combined weight of Samsung Electronics and SK Hynix in the KOSPI index also rose to 52%. Although the warning signs were clear, the authorities' response was limited to halting new listings and raising deposit requirements. It was only after the stock market experienced a sharp decline that they introduced individual total investment regulations.In this context, the remarks by Kim Yong-beom, head of the Presidential Policy Office, are disappointing. He stated that the recent market volatility is not solely due to single-stock leveraged products, noting that the high proportion of individual investors and their 'dynamic investment' behavior, along with the structure of derivative products, contribute to increased volatility. He added that the recent decline is not unique to South Korea, citing uncertainties in AI investment profitability and competition in the Chinese semiconductor industry as contributing factors.While it is true that there are multiple causes, it is not the responsibility of the authorities to emphasize this point first. Investors have merely traded products that the government allowed. The responsibility to foresee demand for high returns and potential concentration, and to establish safety measures, lies with the authorities. Failing to reflect on this and mentioning 'dynamic investors' can give the impression that the responsibility for systemic design is being shifted to individuals. What is needed now is not an assessment of investor behavior, but an examination of whether risk verification was sufficient and why mechanisms to prevent market shocks did not function.The government's decision to establish legal grounds for individual investment limits, excessive trading costs, simulated trading, and emergency market stabilization measures is a welcome, albeit belated, step. However, merely adding regulations each time a crisis occurs is insufficient. Continuous monitoring of trading volumes and the impact on the spot market is necessary, along with ongoing improvements to market stabilization measures to reduce excessive concentration and volatility.The responsibilities of securities firms and asset management companies in sales and explanations must also be strengthened. Marketing that highlights only short-term returns should be curtailed, and the risks of losses and long-term holding should be repeatedly communicated. While individual responsibility is important, it is unacceptable to shift the risks created by an imperfect system onto individuals.The dynamism of capital markets should not be blamed but rather recognized as a reality that the system must accommodate. Authorities should focus on correcting poorly designed systems rather than admonishing investors. Trust in the market is restored not by evading responsibility, but by acknowledging mistakes and implementing measures to prevent recurrence. 2026-07-30 13:40:10
K-Content's Impact: Expanding Foreign Tourism Beyond Major Cities This year, the number of foreign tourists visiting Seoul and Busan reached record highs. Seoul welcomed 8.23 million foreign visitors, a 21.3% increase from last year, while Busan saw a 43.9% rise to 2.42 million.Not only has the number of tourists increased, but their spending has surged even more dramatically. In the first half of the year, foreign visitors spent 5.6172 trillion won in Seoul, marking a 56.8% increase compared to the same period last year. In Busan, tourism spending also rose by 63% to 591.4 billion won. The higher growth rate in spending compared to the number of tourists indicates that South Korea's tourism sector is evolving into a high-value industry centered around shopping, healthcare, gourmet experiences, and cultural activities.The favorable exchange rate has made shopping in South Korea relatively cheaper for foreigners. However, attributing this success solely to currency fluctuations would be insufficient. The global spread of K-pop, K-dramas, K-food, and K-beauty over the past few years has fueled a desire among international visitors to experience South Korea firsthand. Tourists are increasingly seeking out filming locations from Korean dramas, visiting popular restaurants seen on social media, and trying out cosmetics and medical services. This has created a virtuous cycle where cultural content drives tourism and spending.In Seoul, shopping and healthcare/wellness accounted for over 70% of tourism spending. In Busan, the influx of foreign visitors during BTS concerts tripled the usual crowd, and card sales around concert venues doubled. This illustrates how K-content has become a driving force for local economies, transcending its role as a mere tourism product.Moreover, the travel patterns of tourists are changing. In Seoul, the traditional tourist routes centered around Myeongdong and Dongdaemun are expanding to include local cultural spaces like Hongdae and Seongsu. Similarly, in Busan, spending that was once concentrated in Haeundae is now spreading to areas like Busanjin-gu and Gijang-gun. Foreign tourists are now favoring experiences that allow them to engage with the daily lives and local cultures of Koreans, indicating a need for a shift in tourism policy.It is crucial to ensure that the record number of foreign tourists benefits not only major cities but also regional areas. While local regions boast competitive tourism resources such as stunning natural landscapes, historical and cultural heritage, traditional markets, gourmet food, and festivals, there is a lack of strategies to connect these into cohesive content. Simply repeating similar festivals or expanding facilities will not attract foreign visitors.Now is the time for a national strategy that combines K-content with local tourism. This could involve linking K-drama filming locations with regional festivals and developing experiential tourism products centered around local cuisine and traditional culture. Bundling K-beauty and medical tourism, K-food and local culinary tours, and K-pop performances with regional cultural festivals into comprehensive packages should also be actively considered. The goal should be to encourage foreign visitors to explore not just Seoul but also cities like Gangneung, Jeonju, Gyeongju, Yeosu, Andong, and Jeju.To achieve this, improvements in tourism infrastructure, including transportation, accommodation, multilingual guidance, and digital reservation systems, must be pursued. Expanding regional airports and international routes, enhancing inter-regional transportation networks, and creating foreigner-friendly payment and reservation environments are also essential. Good content alone will not naturally lead tourists to regional areas; accessibility and convenience must be supported to increase their length of stay and spending.The tourism industry is a representative domestic industry that creates jobs and consumption without the need for factories, similar to manufacturing. Each additional foreign tourist contributes to the growth of various sectors, including accommodation, food, shopping, transportation, culture, and healthcare. Especially in regions facing challenges due to population decline and sluggish domestic demand, tourism is one of the most effective means of revitalizing local economies. Creating a country where foreign tourists do not only visit Seoul but also stay, spend, and experience the charm of various regions across South Korea is the path to sustainable growth in the tourism industry and revitalizing local economies.* This article has been translated by AI. 2026-07-30 13:40:00