AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • BJ Cheolgu Admits to Gambling Debts, Colleagues Reveal Higher Amounts
    BJ Cheolgu Admits to Gambling Debts, Colleagues Reveal Higher Amounts First-generation internet broadcaster BJ Cheolgu has confessed to engaging in illegal gambling and borrowing money from loan sharks, announcing plans to turn himself in to the police. This revelation has prompted fellow BJs to make additional claims, suggesting that Cheolgu's actual debt may be significantly higher than he disclosed.On July 27, Cheolgu admitted during a live broadcast that he had been involved in illegal gambling since 2024 and had incurred approximately 6 billion won in value-added tax, leading to financial difficulties. He stated that he borrowed money from several BJs, including Kei, Jjapgu, and Inho, and expressed his intention to surrender to the authorities.In response, fellow BJs discussed the extent of Cheolgu's debts. Jjapgu recounted, "When I lent him money, I asked why he needed it. I wasn't sure if it was for taxes or if he was rolling over debts, but he mentioned the interest was extremely high." He added, "I initially lent him about 500 million won, but that amount grew to 1 billion and then 1.5 billion. In total, I've lent him around 3 billion won, and he still owes me about 1.5 billion." Jjapgu noted that Cheolgu had claimed he was earning 1 billion won a month from trading and promised to repay all his debts, which led Jjapgu to lend him more money.Another BJ, Ukhaneun Hyung, claimed that Cheolgu's debt had already been known in the broadcasting community. He stated, "I was aware that he owed 2.3 billion won to Kei and 2 billion won to Jjapgu, and including the 6 billion won in taxes, I estimated his total debt to be around 10 billion won plus additional amounts."In response, Kei remarked, "I apologize, but Cheolgu said he owed 2.3 billion won, but if you include the interest he mentioned, the total debt is actually 3.6 billion won." He explained that when factoring in high-interest loans, the actual burden is even greater.However, the claim of Cheolgu's debt exceeding 10 billion won has not been confirmed by him and remains based solely on the assertions of his fellow BJs.Meanwhile, Cheolgu has acknowledged his involvement in illegal gambling and loan sharking and has stated his intention to turn himself in to the police. Following his confession, the testimonies from fellow BJs have drawn attention to the actual scale of his debts and the flow of funds.* This article has been translated by AI. 2026-07-28 15:28:00
  • Financial Authorities to Hold National Consumer Protection Report Meeting in Second Half of 2026
    Financial Authorities to Hold National Consumer Protection Report Meeting in Second Half of 2026 Financial authorities will hold a national report meeting in the second half of this year to assess the implementation of the consumer protection roadmap. This meeting will evaluate the strengthened consumer protection system in the financial sector and the response to financial crimes, prompted by the recent improper sales of Hong Kong H-index linked securities (ELS). According to the financial sector on July 28, the authorities plan to conduct this consumer protection report meeting in the latter half of the year. The meeting aims to review the achievements of consumer protection policies initiated last year and to identify additional tasks. The authorities have been enhancing consumer protection management and supervision throughout the entire process of financial product design, sales, and dispute resolution. Although the Financial Consumer Protection Act was enacted in 2021, there has been a perception that consumer-centric management has not been properly established due to the short-term performance-oriented sales practices of financial companies and inadequate internal controls. The 2024 Hong Kong ELS incident also revealed the limitations of governance and internal controls in the financial sector regarding consumer protection. During this report meeting, the authorities plan to assess the overall implementation of policies and address the limitations that have emerged during the operational process. Discussions involving experts and financial company practitioners are also being considered. Follow-up tasks aimed at further internalizing consumer protection within the governance of financial companies are expected to be presented. The financial sector has been strengthening its consumer protection system in line with the authorities' policy direction. Major financial groups, including KB, Shinhan, Hana, Woori, and NH, have established internal control committees for consumer protection and created dedicated organizations and executives responsible for consumer protection. They have also introduced a performance evaluation system (KPI) that reflects consumer protection achievements. New guidelines have been developed to clarify the obligation to explain during the sales process of financial investment products. In this evaluation, the effectiveness of these measures in reducing financial incidents, complaints, and improper sales, as well as in improving internal controls for consumer protection, will be key criteria. The authorities will also review the performance in responding to financial crimes affecting people's livelihoods, in addition to the entire process of financial product sales. They have focused their policy efforts on eradicating illegal private lending, voice phishing, and insurance fraud. They are also working on introducing a 'no-fault compensation liability system' that would provide up to 50 million won in compensation to voice phishing victims, even if the financial company is not at fault, and temporarily freeze accounts involved in new phishing crimes. The banking sector has also established dedicated channels for telecommunication financial fraud at all branches and is operating an abnormal transaction detection system (FDS) and an AI-based voice phishing monitoring system (VMS) to prevent damage. In fact, the number of voice phishing incidents decreased from 2,086 in May of last year to 1,317 in April of this year. During the same period, the amount of damage also dropped from 107.3 billion won to 52.3 billion won. A financial sector official stated, "Consumer protection has been one of the top priorities of financial policy since the current government took office. This meeting will be an important opportunity to assess the achievements and limitations of the past year." 2026-07-28 15:25:00
  • Government Aims to Shorten 3rd New Town Development Timeline by 30 Months
    Government Aims to Shorten 3rd New Town Development Timeline by 30 Months The South Korean government is working to reduce the development timeline for public housing projects, including the 3rd New Town, by approximately 30 months. However, on-site reports indicate that the construction period for some apartment projects has increased by as much as 19 months. Challenges such as the demolition of existing structures, ground reinforcement, and cultural heritage investigations remain, putting the government's supply acceleration efforts to the test.According to the Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation (LH), the government is considering expanding integrated reviews and conducting land compensation, permits, and consultations with relevant agencies simultaneously to shorten the public land development period. President Lee Jae-myung previously instructed on July 23 during a national discussion on real estate policy to devise a plan to reduce the public land project timeline from the current 60 months to around 30 months.In the ongoing 3rd New Town projects, there have been instances where schedules have been extended due to site conditions. For example, the S-18 block in Namyangju's Wangsil district has seen its timeline pushed back from December 2027 to July 2029, a 19-month delay due to demolition impacts. The A-17 block has also been delayed by three months, moving from April 2029 to July of the same year.In the Goyang Changneung S-3 and S-4 blocks, timelines have been extended by 15 months, from December 2028 to March 2030. The supply scale for the S-3 block has decreased from 1,306 units to 1,282 units. In Incheon’s Gyeyang A-10 block, the project period has been extended by 12 months, from June 2028 to June 2029, due to ground reinforcement needs.In Hanam's Gyosan district, some schedules have been delayed due to archaeological investigations, while the A-12 block in Bucheon has seen construction costs rise by 40.8 billion won. Both the timeline and financial burdens of these projects are increasing.As earthwork, apartment construction, demolition, and road relocations are being carried out simultaneously, progress varies significantly within the same new town. According to LH's construction progress report, the first section of the Goyang Changneung development is 25.53% complete, while the second section, which started later, is only 3.04% complete. The construction of apartment buildings in major blocks shows progress levels between 26% and 30%.In Namyangju Wangsil, the first section of the development is 20% complete, while the third section is at 12.1%, and the second section is lagging at 3.2%. Demolition work is between 20% and 45% complete, and the relocation and undergrounding of National Route 47 is at 9.9%, indicating that significant preliminary work remains.The differences in progress rates are largely influenced by the timing of the start of construction and the type of work being done. It cannot be definitively concluded that delays in construction are solely due to the lower progress rates of later sections. However, coordinating the development of land and housing construction with demolition and relocation processes is seen as a key challenge, especially as occupancy timelines have already been postponed.Recently, the government launched a 'Comprehensive Government Land Development Innovation Team' involving the Ministry of Land, the Ministry of Finance, the Ministry of Climate, Energy and Environment, the Cultural Heritage Administration, and LH. The aim is to minimize bottlenecks at each site by conducting land compensation, permits, and environmental and cultural heritage investigations concurrently.The most significant variables are land compensation and resident relocation. If compensation negotiations are prolonged or evictions are delayed, the demolition of existing structures and infrastructure construction will also be postponed. Additional investigations and reinforcement work may be necessary if weak ground or buried cultural heritage is identified.Park Hapsu, an adjunct professor at Konkuk University’s Graduate School of Real Estate, stated, “The biggest reason for the delays in the 3rd New Town is the slow land compensation process. For a project involving 500 units, the actual construction period requires about 36 months, making it physically challenging to reduce the timeline from 60 months to 30 months.”Yang Ji-young, a specialist at Shinhan Premier Pathfinder, emphasized, “For the 3rd New Town to succeed, it is crucial to proactively expand infrastructure as much as the supply speed. Not only the transportation network but also jobs, education, and convenience facilities must be developed in line with the occupancy schedule to ensure that prospective residents can confidently choose their homes.”* This article has been translated by AI. 2026-07-28 15:23:00
  • Apple Reclaims Top Spot in Global Market Capitalization, Surpassing Nvidia
    Apple Reclaims Top Spot in Global Market Capitalization, Surpassing Nvidia Apple has reclaimed its position as the world's most valuable company, surpassing Nvidia for the first time in 15 months. Analysts suggest that Apple, previously criticized for lagging in artificial intelligence (AI) investments, has been reassessed positively as concerns grow over the massive capital expenditures of big tech companies.On July 27, Apple’s stock closed at $336.91, up 1.17% from the previous trading day, bringing its market capitalization to $4.948 trillion. In contrast, Nvidia's stock fell approximately 4.8% to $196.51, marking its largest single-day drop since June 5, with a market capitalization of $4.759 trillion, ceding the top spot to Apple.Apple lost its long-held title as the most valuable company to Microsoft in April 2022. Nvidia then overtook Microsoft about two months later, fueled by demand for AI semiconductors. Nvidia's market capitalization soared to $4 trillion in July 2022 and reached a record high of $5.7 trillion on May 14, 2023, but has since entered a downward trend.The recent shift in rankings is attributed not so much to a sudden surge in expectations for Apple’s AI capabilities, but rather to increasing caution regarding the substantial AI capital expenditures and the potential for recovering investments among major tech firms. Alphabet, Microsoft, Amazon, and Meta are projected to spend $724 billion on AI this year, with estimates rising to $950 billion next year. These companies are expanding bond issuances and capital increases to secure data centers and advanced semiconductors, but the timeline for realizing returns on these investments remains uncertain.Meanwhile, Apple, often labeled as the 'AI laggard' among major tech firms, has opted to reduce costs by leveraging Google’s AI models and cloud services instead of investing heavily in its own AI infrastructure. While previously criticized for its reluctance to invest in AI, Apple is now being viewed more favorably for maintaining financial health and capital efficiency.Jay Woods, chief market strategist at Freedom Capital Markets, told Yahoo Finance, "Apple was once criticized for not investing more in AI, but that has allowed it to avoid several pitfalls related to capital expenditures."Daniel Newman, CEO of Futurum Group, noted, "Investors see the volatility in AI-related stocks and view Apple as a sort of index holding. Apple is being regarded as a safe asset."Conversely, concerns are growing around Nvidia, the leading AI stock, regarding the sustainability of its investments and trading structures. According to Bloomberg, Nvidia has announced over $750 billion in AI-related deals with companies like SK Group and OpenAI, but there are fears that a circular trading structure could develop, where Nvidia invests in its clients or provides financing, leading those companies to purchase Nvidia semiconductors in return.Gary Tan, portfolio manager at Allspring Global Investments, stated, "Nvidia's investments and partnerships bolster confidence in long-term AI infrastructure expansion, but investors remain wary of the circular trading structure." 2026-07-28 15:17:00
  • Corruption Investigation Agency Proposes New Procedures Ahead of Major Crime Agency Launch
    Corruption Investigation Agency Proposes New Procedures Ahead of Major Crime Agency Launch As the launch of the Prosecutor's Office and the Serious Crimes Investigation Agency approaches in October, the Corruption Investigation Agency has submitted a proposal to the National Assembly advocating for the establishment of a new procedure for 'additional investigation requests' instead of relying on prosecutors' requests for supplementary investigations. The agency also suggested that senior officials from the Serious Crimes Investigation Agency be included in the scope of its investigations and called for reforms regarding the treatment and term limits of its investigators.On July 28, during a regular briefing held at the Government Complex in Gwacheon, the Corruption Investigation Agency announced that it submitted its proposed amendments to the Corruption Investigation Agency Act to the National Assembly's Legislative and Judiciary Committee on July 25.The proposed amendments include approximately 40 provisions related to investigation procedures, such as emergency arrests, detention periods, review of arrests and detentions, search and seizure, and summons requirements.The agency has previously expressed the need for special provisions regarding the scope and procedures of investigations conducted by its prosecutors under the Criminal Procedure Act. This time, it aims to explicitly state these provisions in the Corruption Investigation Agency Act to reduce interpretative disputes and practical confusion among investigative bodies.In particular, the agency emphasized the necessity of establishing a separate procedure for prosecutors to request additional investigations when they deem it necessary for cases initiated by the Corruption Investigation Agency.If a prosecutor sends an additional investigation request along with relevant documents and evidence to the Corruption Investigation Agency, the agency's investigators would then conduct the follow-up investigation.A spokesperson for the Corruption Investigation Agency explained, "The term 'supplementary investigation request' is used between prosecutors and judicial police officers, and applying it directly between prosecutors and Corruption Investigation Agency investigators is not systemically appropriate."The spokesperson added, "There has been confusion due to the lack of discussion on procedures for additional investigations after the Corruption Investigation Agency has requested prosecution. We propose to establish a procedure for additional investigation requests in the Corruption Investigation Agency Act to clarify the relationship between the Prosecutor's Office and the Corruption Investigation Agency and eliminate confusion."The agency also submitted its opinions on the revision of the Corruption Investigation Agency Act to the Office for Government Policy Coordination regarding the launch of the Serious Crimes Investigation Agency the previous day.Under the current Corruption Investigation Agency Act, senior officials from the Board of Audit and Inspection, the National Tax Service, and the Fair Trade Commission are included in the definition of high-ranking officials. However, there are no provisions regarding senior officials from the newly established Serious Crimes Investigation Agency.In response, the Corruption Investigation Agency argued that senior officials from the Serious Crimes Investigation Agency should also be included in the scope of high-ranking officials subject to its investigations.A representative from the agency stated, "As a newly established organization, there are currently no provisions regarding officials from the Serious Crimes Investigation Agency in the existing law. Like other major national agencies, senior officials from the Serious Crimes Investigation Agency should also be subject to investigations by the Corruption Investigation Agency."The agency also proposed changing relevant provisions to ensure that the treatment of its investigators is comparable to that of investigators from the Serious Crimes Investigation Agency, rather than those from the Prosecutor's Office.The current Corruption Investigation Agency Act stipulates that the treatment of its investigators should be equivalent to that of Prosecutor's Office officials. However, as investigative duties are being transferred to the Serious Crimes Investigation Agency under the separation of investigation and prosecution, the agency argues that the treatment system should be redesigned based on actual duties and authority.A representative from the agency remarked, "Currently, Corruption Investigation Agency investigators receive treatment equivalent to that of Prosecutor's Office officials, which is based on a system where prosecutors handle both investigation and prosecution. It is more appropriate to determine treatment based on the authority and responsibilities associated with the work performed rather than on status."The Corruption Investigation Agency also believes that the six-year term limit for its investigators should be abolished, arguing that it is unfair to impose term limits only on its investigators when there are no such restrictions for officials from other investigative agencies like the police or the Serious Crimes Investigation Agency.Meanwhile, the Corruption Investigation Agency stated that it is in the early stages of its investigation into allegations of perjury in relation to the shooting incident involving a public official in the West Sea, which included searches of the main office of the Korea Coast Guard and the Incheon Coast Guard on July 16. It noted that it has not conducted any recent summons investigations related to the alcohol bribery allegations involving Judge Ji Gwi-yeon. Regarding the controversy over personnel dispatch conflicts with the Special Investigation Team for the deceased Marine, the agency mentioned, "We have not made any specific additional requests."* This article has been translated by AI. 2026-07-28 15:15:00
  • Factional Conflicts Emerge in Democratic Party Amid Allegations of Shincheonji Involvement
    Factional Conflicts Emerge in Democratic Party Amid Allegations of Shincheonji Involvement As allegations of Shincheonji involvement surface, factional conflicts within the Democratic Party are intensifying. On the first day of voting for party leadership on July 28, lawmakers Song Young-gil and former leader Jeong Cheong-rae sought support in the Chungcheong region, while former Prime Minister Kim Min-seok focused his campaign in the Gyeongsang area. All three candidates aim to gain an early advantage in the race.On the morning of July 28, Song held a meeting with party members in Chungju and planned town hall meetings in Cheongju and Daejeon in the afternoon. He also scheduled a casual gathering with young voters in Daejeon. Emphasizing the slogan 'No 2030 election without the 2030 generation,' Song is focusing on appealing to younger voters by proposing solutions to housing issues and pledging to appoint two youth representatives to amplify their voices within the party.Jeong visited the grave of the late former Prime Minister Lee Hae-chan in Sejong City in the morning, accompanied by Kim Jeong-ok, Lee's wife and Jeong's campaign chair. Afterward, he met with Sejong Mayor Jo Sang-ho and engaged with party members in the area. In the afternoon, Jeong traveled to Jeonju to deliver a special lecture at the National Women's Vision Forum, aiming to sway voters in the Honam region. Jeong, hailing from Geumsan in Chungcheongnam-do, previously faced pushback from Song and Kim's camps when the primary schedule was set to begin in Chungcheong.Meanwhile, Kim remained in Gyeongsang, visiting the Geoje shipyard and the construction site of the new airport in Gadeokdo, Busan. He plans to target voters in Jinju as voting in the Gyeongsang region begins on July 29. This area is classified as a weak region for the party, receiving a 5% weighting in the voting process. While the one-person, one-vote system allows for broader representation of party members' opinions, it has also raised concerns about the potential neglect of certain regional voices, prompting the party's preparatory committee to devise improvements. Kim visited Chungcheong and Ulsan the previous day and is scheduled to meet with Daejeon Mayor Heo Tae-jeong and Chungcheongnam-do Governor Park Soo-hyun on July 29.The Democratic Party will kick off its primary elections in the Chungcheong region (Chungnam, Chungbuk, Daejeon, and Sejong) on August 1, followed by Ulsan, Busan, and Gyeongsang on August 2, Jeju and Incheon on August 8, Gangwon, Daegu, and Gyeongbuk on August 9, and finally Jeonnam, Gwangju, and Jeonbuk on August 15. The primary will conclude with the election of a new party leader at the Daejeon Convention Center on August 17, combining votes from party members and public opinion polls in a 70-30 ratio.However, the voting process in the Chungcheong region began at 9 a.m. but faced disruptions due to technical issues with online voting in Chungnam and Chungbuk, causing confusion among party members. The voting system was restored by around 10 a.m., and the party's election management committee announced that the voting time for party members in these regions would be extended by one hour.Amid these developments, allegations of Shincheonji involvement have heightened factional tensions within the party. Kim continues to raise concerns about these allegations, while Jeong has labeled them as false and threatened legal action. Kim maintains that his comments are aimed at addressing internal party issues rather than targeting any specific candidate.Disputes between the pro-Lee Jae-myung and pro-Jeong factions persist within the Supreme Council. The pro-Lee faction argues that their actions are necessary to uphold the constitutional principle of separation of church and state, while the pro-Jeong faction demands evidence and warns that Jeong should resign if the claims are proven false. 2026-07-28 15:03:00
  • HD Hyundai Electric Reports 2nd Quarter Operating Profit of 287 Billion Won, Up 37.3% Year-on-Year
    HD Hyundai Electric Reports 2nd Quarter Operating Profit of 287 Billion Won, Up 37.3% Year-on-Year HD Hyundai Electric announced on July 28 that it achieved sales of 1.14 trillion won and an operating profit of 287 billion won in the second quarter of this year. Sales increased by 26% compared to the same period last year, while operating profit rose by 37.3%. The operating profit margin was 25.1%, up 2.0 percentage points from the previous year and 0.2 percentage points from the previous quarter.The power equipment business saw a steady demand for global power grid replacements and an increase in overseas sales of high-voltage circuit breakers, resulting in a 10.7% year-on-year sales increase. Sales in the distribution equipment sector reached 231.2 billion won, a 20.2% increase from the previous year. The growth in sales across all product lines in the distribution sector was driven by increased supply for domestic semiconductor projects.HD Hyundai Electric explained, "The increase in operating profit was driven by improved profitability of power transformers in key overseas markets, including North America, as well as significant enhancements in profitability across all distribution equipment products, particularly those aimed at the domestic semiconductor sector."In the second quarter, the company recorded orders worth $1.44 billion, a 44.6% increase compared to the same period last year, bringing the cumulative orders for the first half of the year to $3.237 billion. The order backlog reached $8.49 billion, a 29.6% increase from the previous year, securing a stable growth foundation.A representative from HD Hyundai Electric stated, "In addition to the structural growth trend in the power equipment business, the significant improvement in profitability in the distribution equipment sector has led to solid performance. As power demand continues to expand, particularly in data centers, we expect to maintain stable growth in the second half of the year."Meanwhile, on July 6, HD Hyundai Electric raised its order target for 2026 to $5.185 billion, reflecting the growing demand in the North American power infrastructure and data center markets.* This article has been translated by AI. 2026-07-28 15:02:00
  • NVIDIA Invests $1 Billion in Naver, Seizing Opportunity for Technological Independence
    NVIDIA Invests $1 Billion in Naver, Seizing Opportunity for Technological Independence NVIDIA has become Naver's third-largest shareholder with a $1 billion investment. This move signifies more than just a supply contract; it highlights the global AI leader's choice of a key domestic IT partner.Naver plans to use the funds to expedite the establishment of an AI factory and accelerate its entry into the global sovereign AI market, particularly in Asia. On the surface, this appears to be a significant achievement for K-AI on the global stage.However, it is essential to confront the cold, hard reality. The market views this investment as a typical example of an 'AI bubble.' The structure involves NVIDIA, a global semiconductor giant, funding Naver, which in turn purchases NVIDIA's advanced graphics processing units (GPUs).This raises concerns about 'circular investment' or 'self-dealing.' In Silicon Valley, warnings have emerged regarding the accounting illusions created when big tech companies invest in AI startups or cloud firms, only for that funding to return to their own AI chip purchases. If GPU demand slows or AI profitability falls short of expectations, it could lead to a chain reaction of risks.It is unrealistic to paint an overly rosy future. NVIDIA aims to solidify its GPU ecosystem and enjoy long-term lock-in effects. This suggests that domestic companies like Naver may only serve as consumers or data center hubs.Nonetheless, opportunities coexist. The substantial capital and collaboration with massive infrastructure should be thoroughly leveraged to enhance our independent 'technological strength' and 'capabilities.'We must use the expanded GPU infrastructure as a foundation to significantly elevate South Korea's unique AI models and service capabilities. By building a sovereign AI ecosystem tailored to various industries such as finance, healthcare, gaming, and public services, we can secure practical 'technological sovereignty' that allows us to manage data independently and provide customized solutions optimized for different countries. Only then will we gain negotiating power with big tech.To overcome the limitations of AI hardware that heavily relies on foreign sources, we need to strengthen connections with next-generation technologies like domestic AI semiconductors (NPU) and processing-in-memory (PIM). In the medium to long term, we should collaborate with domestic semiconductor startups and major memory semiconductor firms to develop an integrated ecosystem of AI hardware and software that dramatically reduces power consumption and costs.We must also effectively manage research and development (R&D) collaborations and talent cultivation with global big tech. As NVIDIA plans to establish research hubs in partnership with domestic universities and research institutes, we should seize this opportunity to train a significant number of world-class AI talents and rapidly internalize advanced technological know-how.The ongoing bubble controversy and concerns over excessive investment in the AI market will persist. However, in the face of the undeniable trend of AI transformation, whether we will leap forward riding the wave of liquidity or be left with only the shell of technological dependence after the bubble bursts ultimately depends on our capabilities.It is time to clearly understand the dual nature of big tech's strategic investments and to strengthen our technological independence and global competitiveness, turning the risks associated with being at the center of the bubble into opportunities.* This article has been translated by AI. 2026-07-28 15:01:00
  • Mortgage Rates Hit Highest Level in Over Two Years
    Mortgage Rates Hit Highest Level in Over Two Years Mortgage rates at banks rose for the second consecutive month in June, reaching their highest level in two years and seven months. The increase in credit loan rates is also adding to household interest burdens. Analysts suggest that the trend of rising loan rates may accelerate in the second half of the year, considering that the recent rate hike by the Bank of Korea in July has not yet been reflected in these figures.According to the Bank of Korea's 'Weighted Average Interest Rate' statistics released on July 28, the weighted average mortgage rate for new loans at deposit banks was recorded at 4.36% in June, up 0.04 percentage points from April's 4.32%. This is the highest rate since November 2023, when it was 4.48%.Specifically, the fixed-rate mortgage interest rose to 4.53%, an increase of 0.09 percentage points from the previous month. This marks the ninth consecutive month of increases since October of last year, when it was 3.97%. The rise is attributed to increases in benchmark rates such as bank bonds and the government-backed mortgage rate. The average rate for five-year bank bonds (AAA, non-guaranteed) was 3.715% at the end of January but has been rising since surpassing 4% at the end of March. The variable-rate mortgage interest also increased by 0.04 percentage points to 4.27%.The increase in general credit loan rates was even more pronounced. The rate for general credit loans rose from 5.49% in May to 5.72% in June, a jump of 0.23 percentage points.The overall household loan rate increased to 4.50%, up 0.04 percentage points from the previous month, while the combined loan rate for households and businesses rose by 0.12 percentage points to 4.31%.As fixed-rate mortgage rates soar, the proportion of borrowers opting for fixed-rate loans has decreased. In June, the share of fixed-rate mortgages among new loans fell to 37.7%, a decrease of 3.9 percentage points in just one month. This marks the lowest level since February 2014, when it was 31.8%, and the share has been declining for eight months since November 2022, when it was 90.2%.The proportion of fixed-rate loans among all household loans also dropped from 24.6% to 22.7%, a decline of 1.9 percentage points. This is the smallest share in nearly four years, since July 2022, when it was 21.4%. In contrast, the share of variable-rate loans increased from 58.4% in May to 62.3% last month.Lee Hye-young, head of the Bank of Korea's Financial Statistics Team, stated, "As long as variable rates remain lower than fixed rates, many borrowers are choosing the lower option. However, with the recent rate hikes affecting short-term rates that influence variable rates, the gap may narrow, potentially leading to an increase in the share of fixed-rate selections over time."* This article has been translated by AI. 2026-07-28 14:56:00
  • Frozen Loan Market: Can I Get a Loan with Two Months Left for Payment?
    Frozen Loan Market: 'Can I Get a Loan with Two Months Left for Payment?' “Loans continue to be blocked, and I only have two months left for payment. Is there a consultant who can help me get a loan of up to 40 million won for a property valued at about 1 billion won?”As household loan regulations lead to banks exhausting their lending limits early each month, demand for 'loan consultants' is rising in online forums and real estate communities. This surge has also seen an increase in online operations by unregistered consultants, raising concerns about consumer protection.According to the financial sector on July 28, posts in real estate-related online communities frequently ask for help, such as “I want to maximize my mortgage loan limit” or “I’m looking for someone who can consult today.” As banks adjust their lending policies, including temporarily halting broker channels to manage total household loan limits, more people are seeking to confirm their loan eligibility through consultants before visiting bank branches.Multiple major banks estimate that loan brokers handle about 50-60% of real estate mortgage loans. Loan brokers are affiliated with companies that have contracts with banks and include consultants introduced through real estate agencies. They guide prospective homebuyers on loan products and receive a commission of about 0.2-0.5% of the loan amount once the loan is executed.Using a loan consultant does not guarantee preferential interest rates or additional limits. However, depending on the consultant's experience and knowledge, they can help borrowers find relatively favorable financial institutions by comparing income, credit scores, and loan-to-value ratios (LTV).A person identified as A, who secured a mortgage through a consultant referred by a real estate agency earlier this year, stated, “I was able to borrow a larger amount at a lower interest rate than when I checked the limits online. The consultant helped me find the right bank by considering my job, income, and credit score.”The issue arises as the demand for consultants increases due to stricter loan regulations, leading to many operating online without disclosing their registration numbers or affiliated companies. In one online post seeking loan consultants, over 30 comments were made, but only five included registration numbers or company affiliations.Under the current Financial Consumer Protection Act, loan brokers must be registered as financial product sales agents or intermediaries. They are required to provide relevant information, including registration numbers and affiliations, to allow consumers to verify their identities. However, online communities and platforms like KakaoTalk open chat rooms are difficult to manage and supervise, leading to concerns about regulatory gaps.A bank official noted, “Banks only accept loan documents through consultants affiliated with registered loan brokerage firms. Unregistered brokers do not have the right to handle customer information, and receiving or submitting documents on behalf of clients may be illegal.”* This article has been translated by AI. 2026-07-28 14:54:00