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Low-Credit Borrowers Turn to Illegal Lending as Rejections Rise Low-credit borrowers are increasingly being pushed into illegal lending as they struggle to secure loans from banks and second-tier financial institutions. It is estimated that the amount of money shifted to illegal lending last year exceeded 1.5 trillion won.On July 28, the Korea Institute of Financial Services reported that a survey of 977 low-credit individuals who had experience with either licensed lenders or illegal financial services over the past three years found that 59.4% had been rejected when applying for loans from registered lenders. Among those rejected, 50.7% were unable to secure the necessary funds afterward.Of those who failed to obtain funding, 45.6% reported that they had lost motivation in life, with symptoms of depression worsening. Notably, 41.7% of respondents in their 20s indicated they had considered resorting to dishonest means to obtain money.The most common use of loan funds was for basic living expenses, reported by 41.0% of respondents, followed by repayment of existing debts at 26.1% and medical expenses at 10.1%. After being rejected for loans, 34.0% relied on help from family or friends, while 23.1% turned to borrowing from other financial institutions. The utilization rate of policy-based financial services was only 12.0%.There has also been an increase in cases where individuals unknowingly used illegal financial services. Among those who used illegal lending, 49.1% were unaware that they were dealing with illegal operators at the time of borrowing, more than double the 22.3% reported in 2023.The impact of illegal debt collection has also expanded. The percentage of individuals experiencing harassment from illegal debt collectors rose from 9.6% in 2023 to 17.5% last year, while those whose debt was disclosed to third parties increased from 3.2% to 14.0%.The institute estimates that between 59,000 and 119,000 low-credit individuals shifted to illegal lending last year, with the total amount involved ranging from 760 billion to 1.55 trillion won. This represents nearly double the estimates from 2024.* This article has been translated by AI. 2026-07-28 08:32:00 -
Market Preview: U.S. Semiconductor Stocks Decline, CXMT Listing Adds Pressure on KOSPI The KOSPI is expected to open lower on July 28, following a downturn in U.S. technology stocks. Concerns over intensified competition due to China's semiconductor technology development and the stock market listing of Changxin Memory Technologies (CXMT) may dampen investor sentiment, particularly in the domestic semiconductor sector.On July 27, the Dow Jones Industrial Average and the S&P 500 rose by 0.51% and 0.02%, respectively, while the Nasdaq Composite fell by 0.18%.Reports that China has begun developing deep ultraviolet (DUV) lithography equipment for semiconductor manufacturing have heightened global competition concerns. As a result, ASML's stock plummeted by 5.8%, and major semiconductor companies like NVIDIA (-4.99%) and Micron (-2.25%) also experienced declines. The Philadelphia Semiconductor Index dropped by 2.23%.The domestic market is anticipated to face downward pressure due to the weak performance of U.S. tech stocks overnight. Additionally, the listing of CXMT raises fears of increased competition in the memory semiconductor market, which has been dominated by Samsung Electronics, SK Hynix, and Micron.Han Ji-young, a researcher at Kiwoom Securities, noted, "Since July, semiconductor stocks have undergone significant corrections, leading to weakened investor sentiment, making them sensitive to news about China's DUV equipment production."As of 8:11 a.m., shares of Samsung Electronics were trading at 240,000 won, down 5.5% from the previous session, while SK Hynix fell 7.5% to 1,679,000 won.However, some analysts suggest that market volatility is gradually easing. One researcher stated, "As time goes on, the amplitude of volatility appears to be lessening, indicating that the KOSPI 200 volatility index is entering a phase of stabilization, which may signal that the domestic abnormal volatility is passing its peak."They also expressed concerns that the 465% surge in CXMT's stock price following its listing on the ChiNext board could weaken the supply-demand dynamics of domestic semiconductor stocks, but noted that CXMT is not yet a stock that foreign investors can freely trade under the Stock Connect program, suggesting limited potential for actual supply-demand exits.* This article has been translated by AI. 2026-07-28 08:24:00
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U.S. Tech Stocks Plunge, Investor Sentiment Dips as Bitcoin Falls to $63,000 The decline in U.S. tech stocks has dampened investor sentiment across risk assets, leading to a downturn in the cryptocurrency market. Although a drop in international oil prices has eased some geopolitical concerns, increased volatility in the U.S. stock market, particularly among semiconductor stocks like Nvidia, has intensified selling pressure on major cryptocurrencies such as Bitcoin.According to CoinMarketCap, Bitcoin was trading at $63,770 as of 8 a.m. on July 28, reflecting a 2.19% decrease from the previous day.The price of Ethereum also fell by 2.31% to $1,893. Binance Coin (BNB) and Solana recorded declines of 1.27% and 2.59%, trading at $566 and $74, respectively. Ripple (XRP) dropped 3.65% to $1.06.The weakness in the cryptocurrency market is attributed to the adjustment in U.S. tech stocks, which has spread to risk assets more broadly. Recently, Bitcoin has been influenced not only by interest rates and the direction of the dollar but also by trends in AI-related tech stocks.With Nvidia's stock falling nearly 5%, concerns about the AI investment frenzy have grown, leading to a decline in investor sentiment across risk assets. This has resulted in increased selling pressure in the cryptocurrency market.As of 8 a.m. on the same day, Bitcoin was trading at approximately 93,101,000 won ($63,731) on the domestic exchange Bithumb, marking a 1.32% decrease from the previous day. The 'Kimchi Premium' was recorded at -0.231%, indicating that the price of Bitcoin traded domestically is lower than that in international markets.* This article has been translated by AI. 2026-07-28 08:20:00
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BJ Cheolgu Admits to Illegal Gambling and Loan Practices, Sparks Controversy First-generation internet broadcaster BJ Cheolgu has confessed to engaging in overseas gambling and using illegal loans, announcing plans to surrender to the police. On July 27, Cheolgu revealed during a personal broadcast that he had been involved in overseas gambling since the year before last and had borrowed illegal loans from high-stakes gamblers. He also disclosed that he had borrowed large sums from fellow BJs, including Kay, Jjapgu, and Kim In-ho.Following this revelation, comments made by Kim In-ho in a video released on July 17 on the YouTube channel 'Beautiful Nerd' have come under scrutiny. In the video titled 'Kim In-ho, the Malicious Cyber Pimp Making 20 Billion Won a Year Using Innocent Women - ,' Kim In-ho recounted an incident where he was asked to lend money without naming the individual involved.Kim In-ho stated, 'If it were a large sum, I would consider it, but they asked for about 200 to 300 million won. While that is a significant amount, considering the person's reputation and other factors, if they are asking for that much, it gives an idea of their financial situation.' When the host, Kaysep, questioned, 'With their reputation and a large audience, they are asking for 200 to 300 million won?' fellow guest Poison responded, 'Baccarat, baccarat.'The video did not attract much attention at the time of its release, but speculation has arisen that the individual Kim In-ho referred to could be Cheolgu, following Cheolgu's recent admission of his involvement in overseas gambling and illegal loans.Online users have expressed sympathy for those who have not received their money, with comments such as, 'It's sad for those who didn't get their money back,' 'They've lost their senses to get to this point... This was also mentioned during his divorce from his wife,' and 'Will he serve time?' and 'Poor daughter.' 2026-07-28 08:20:00
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President Yoon Continues State Visit in Brazil, Shifts Focus to Economic Diplomacy President Yoon Suk Yeol, on a state visit to Brazil, moved from the capital Brasília to São Paulo on July 27 after completing his schedule in Brasília.The President and First Lady Kim Hye-kyung arrived at the Brasília Air Force Base runway at 7:42 PM local time. Yoon was dressed in a gray suit with a red, blue, and white tie, while Kim wore a pink two-piece outfit.The couple greeted officials including Tiago Posiú, the Brazilian Foreign Ministry's protocol chief, Susan Cleavenger, the Deputy Minister for Asia-Pacific, and Paulo Martins, the Director for Asia-Pacific, shaking hands as they exchanged pleasantries.Cleavenger expressed hope that Yoon would return, while Martins wished him a pleasant stay in Brasília. Yoon nodded with a smile in response.Posiú remarked at the foot of Air Force One, "It’s great to see you here again since February. I hope you have a comfortable journey." Yoon replied, "Thank you."Before boarding, the couple turned to wave goodbye to the officials and then boarded Air Force One.Earlier that day, Yoon held a 140-minute summit with Brazilian President Luiz Inácio Lula da Silva at the Palácio da Alvorada, declaring this year as the 'Year of Strategic Partnership Advancement' between Korea and Brazil. The two countries agreed to expand cooperation in key minerals, energy, defense, aerospace, and cultural and educational sectors, signing seven memorandums of understanding (MOUs).Yoon will continue his state visit in São Paulo, where he plans to visit the Metalworkers' Union office, where President Lula began his labor movement, to meet with labor representatives. He will also hold a luncheon with the local Korean community to encourage them and participate in a Korea-Brazil business roundtable to discuss ways to enhance investment and industrial cooperation between the two countries. 2026-07-28 08:16:00
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Homeplus to Resume Operations at 67 Stores Next Month Amid Recovery Efforts Homeplus, currently undergoing corporate rehabilitation, is expected to resume operations at its large stores around August 10. The company plans to restore its supply chain and logistics as soon as emergency operational funds (DIP) are received, aiming to reopen stores within a week of the funds' arrival.According to industry sources on July 28, Homeplus held discussions with its labor unions the previous day regarding the timeline for reopening and the use of operational funds. The company anticipates receiving 200 billion won in DIP from Meritz Financial Group between July 31 and August 3. Homeplus has reportedly set a goal to reopen stores within seven days of receiving the funds.If the funds arrive on July 31, the stores could reopen as early as August 7; if they arrive on August 3, the reopening may occur around August 10. Homeplus had suspended operations at 67 key stores nationwide since July 13 due to a depletion of operational funds.Preparations for reopening are already underway. The purchasing team at the headquarters is negotiating with suppliers of fresh and processed foods to resume product deliveries. They are also preparing to activate logistics centers and recruit delivery drivers.Before the suspension of operations, Homeplus reportedly secured about 30 billion won through a maximum 50% discount event. This funding was used to cover part of June's wages and utility bills. The incoming DIP funds will primarily be allocated to normalizing product supply and settling unpaid wages and severance for former employees.Additionally, discussions are ongoing regarding support measures for tenants and small business owners within the malls. Homeplus plans to consider reducing fees through discussions with its operational team.Meanwhile, the government has begun assessing the impact of the situation. Kang Gi-ryong, Deputy Minister of Finance, held a meeting on July 24 at the Government Seoul Building to review the damages and support measures for workers and partner companies. From July 3 to 23, a total of 1,935 consultations were recorded at the Ministry of Employment and Labor's one-stop counseling center.* This article has been translated by AI. 2026-07-28 08:16:00
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Shinhan Securities Raises Target Price for Celltrion as U.S. Biosimilar Sales Surge Shinhan Investment Corp. has maintained its "buy" rating on Celltrion and raised its target price to 290,000 won, citing the company's entry into a phase of increased profitability driven by the growth of high-margin biosimilar products in North America.Lee Ho-cheol, a researcher at Shinhan Investment, stated, "The U.S. launch of Omliclo (a Zolair biosimilar) in the second half of the year, the expansion of sales for Uplima (a Humira biosimilar) based on low wholesale acquisition cost (WAC), and collaboration with Pfizer on Jimpenetra (a Remicade biosimilar in SC formulation) will significantly boost new product growth."Celltrion's consolidated revenue for the second quarter reached 1.3937 trillion won, a 45.0% increase compared to the same period last year, while operating profit rose by 86.3% to 451.8 billion won, slightly exceeding market consensus. Global sales of new products amounted to 824.9 billion won, marking a 76.0% increase year-on-year, and accounting for 65% of total biosimilar product sales.Notably, sales of five high-revenue new products launched after 2025 surged by 368.5% compared to the previous year. Omliclo achieved a 21% market share in Europe within three quarters of its launch and is set to debut as the first Zolair biosimilar in the U.S. this fall. Uplima is expected to penetrate the U.S. market based on its low WAC.The researcher added, "A virtuous cycle structure is beginning, where the profitability of biosimilars supports new drug development, and we anticipate continued profit growth with a portfolio of 18 biosimilars by 2030." He also noted that the topline results of two ADCs in global Phase 1 clinical trials are expected to be released early next year, highlighting the growth potential in the new drug sector.* This article has been translated by AI. 2026-07-28 08:16:00
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Eugene Investment Adjusts LG Innotek's Target Price Amid Growth Prospects Eugene Investment & Securities forecasted on July 28 that LG Innotek will continue to see improved performance driven by growth in its optical solutions and semiconductor substrate businesses. However, reflecting the impact of lower valuations among peer companies, the firm adjusted its target price from 1,053,000 won to 900,000 won, a decrease of 14.5%. The investment rating remains 'buy.'Lee Joo-hyung, a researcher at Eugene Investment & Securities, stated, "Thanks to the high profitability defense capability of the optical solutions division and the rapid growth of the package solutions division focused on flip-chip ball grid array (FC-BGA) and FC-CSP, we are raising our annual net profit estimate for 2027 from 941.1 billion won to 1.0639 trillion won, an increase of 13.1%. However, we have lowered the target price to reflect the reduced valuations of comparable companies such as Nanya PCB, Unimicron, and Kinsus."LG Innotek's second-quarter results showed revenue of 5.5527 trillion won and operating profit of 245.8 billion won, marking increases of 40.5% and 2057%, respectively, compared to the same period last year, significantly exceeding market expectations.The strong performance is attributed to robust smartphone demand from major North American clients, even during the seasonal off-peak period, along with improvements in product mix. Additionally, the expansion of FC-BGA supply and increased demand for high-value substrates contributed to the package solutions division's performance.Looking ahead to the third quarter, growth is expected to continue, with projected revenue of 6.3019 trillion won and operating profit of 300.7 billion won, representing increases of 17.4% and 47.6%, respectively, year-on-year. The anticipated effects of new product launches from major North American clients, along with the adoption of variable aperture in flagship models and improvements in product mix, are expected to drive up the average selling price (ASP) of camera modules.The package solutions business is presented as a long-term growth driver. LG Innotek's Vietnam subsidiary announced in June plans for equipment investment centered on FC-BGA, with expectations of over 2 trillion won in additional investments over the next 2-3 years. The funding is anticipated to come from advance payments by North American IT companies.The researcher noted, "We understand that more than three IT companies based in North America are demanding volume guarantees through advance payments. The qualification testing for FC-BGA for new clients' PC central processing units (CPUs) is also progressing faster than previously expected, accelerating the business schedule."He added, "Currently focused on PCs, the FC-BGA business is expected to enter the server market by the third quarter of next year. We project that FC-BGA sales will more than triple by 2027 compared to this year, and the operating profit of the package solutions division will increase by 168% in 2028 compared to 2026."* This article has been translated by AI. 2026-07-28 08:04:00
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BJ Cheolgu Confesses to Illegal Gambling and Loan Sharking, Plans to Surrender to Police First-generation internet broadcaster BJ Cheolgu has confessed to engaging in overseas gambling and illegal loan sharking, announcing his intention to surrender to the police. During a broadcast, he revealed his substantial tax arrears amounting to billions of won and admitted to borrowing large sums from fellow broadcasters and acquaintances, shocking viewers.On July 27, Cheolgu addressed his audience directly through his internet broadcast.He stated, "I will go to the police station at 8 a.m. to surrender. I have been gambling since the year before last and have used loan sharks. I am very sorry."He continued, "At that time, I was spending over 1 billion won a week on gambling. I should have used my own money, but it became unmanageable, so I resorted to illegal loans from big spenders. I borrowed money and promised to pay back with interest the following week, which spiraled out of control."Cheolgu explained that his financial situation worsened due to tax issues.He said, "I had about 6 billion won in value-added tax. My accounts were seized, and I had no choice but to borrow money from various people to prevent this."He also mentioned receiving help from fellow broadcasters.Cheolgu noted, "K lent me 2.3 billion won, and I have repaid some of it. Jjapgu lent me 2 billion won, and Inho also offered to help."He referred to a contract with a listed company.Cheolgu explained, "Through the introduction of a big spender, I signed a contract with a listed company to borrow 2 billion won interest-free for one year. The money was supposed to arrive on July 24, but it never came."He stated that without receiving these funds, he was unable to settle payments for the female BJs participating in his broadcast content.Cheolgu said, "I ran around for three days trying to find money, but ultimately I could not. The delays in payments led to the situation becoming known externally."He added, "I did engage in illegal overseas gambling and used illegal loan sharks. I will surrender to the police and accept punishment. Even if I have to serve time, I will find a way to repay my debts," he reiterated, expressing his apologies.Following Cheolgu's statements, online reactions included comments such as, "This is a shocking confession," "This is the end of the borrowing cycle," "Deciding to surrender is not an easy choice," and "Illegal gambling and loan sharking must be held accountable." However, it should be noted that these claims are based on Cheolgu's own statements during his broadcast, and the specifics regarding overseas gambling and illegal loan usage will be confirmed through future police investigations.* This article has been translated by AI. 2026-07-28 08:00:00
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BJ Cheolgu Confesses to Illegal Gambling and Loan Sharking, Plans to Surrender to Police First-generation internet broadcaster BJ Cheolgu has confessed to engaging in overseas gambling and illegal loan sharking, announcing his intention to surrender to the police. During a broadcast, he revealed his substantial tax arrears amounting to billions of won and admitted to borrowing large sums from fellow broadcasters and acquaintances, shocking viewers.On July 27, Cheolgu addressed his audience directly through his internet broadcast.He stated, "I will go to the police station at 8 a.m. to surrender. I have been gambling since the year before last and have used loan sharks. I am very sorry."He continued, "At that time, I was spending over 1 billion won a week on gambling. I should have used my own money, but it became unmanageable, so I resorted to illegal loans from big lenders. I borrowed money and promised to pay back with interest the following week, which spiraled out of control."Cheolgu explained that his financial situation worsened due to tax issues.He said, "I had about 6 billion won in value-added tax. My accounts were seized, and I had no choice but to borrow money from various people to prevent this."He also mentioned receiving help from fellow broadcasters.Cheolgu noted, "K lent me 2.3 billion won, and I have repaid some of it. Jjapgu lent me 2 billion won, and Inho also offered to help."He referred to a contract with a listed company.Cheolgu explained, "Through an introduction from a big lender, I signed a contract with a listed company to borrow 2 billion won interest-free for one year. The money was supposed to arrive on July 24, but it ultimately did not."He stated that without receiving these funds, he was unable to settle payments for the female BJs participating in his broadcast content.Cheolgu said, "I ran around for three days trying to find money, but ultimately I could not. As the settlements were delayed, the situation became known to the public."He added, "I did engage in illegal overseas gambling and used illegal loans. I will surrender to the police and accept punishment. Even if I have to serve time, I will find a way to repay my debts."Following Cheolgu's statements, online reactions included comments such as, "This is a shocking confession," "This is the end of the borrowing cycle," "Deciding to surrender is not an easy choice," and "Illegal gambling and loan sharking must be held accountable."However, it should be noted that these statements are based on Cheolgu's own broadcast, and the specifics regarding overseas gambling and illegal loan usage will be confirmed through future police investigations.* This article has been translated by AI. 2026-07-28 08:00:00