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  • Samsung Electronics Faces Internal Conflict Over Performance Bonuses
    Samsung Electronics Faces Internal Conflict Over Performance Bonuses Internal conflict surrounding Samsung Electronics' special management bonuses is escalating. As dissatisfaction grows over disparities in performance bonuses across divisions and the union's negotiation methods, tensions have spilled over into intra-union conflicts.Recently aired on KBS's 'Tracking 60 Minutes,' a segment titled 'Performance Bonus Class Society: Am I the Only One Getting Poorer?' highlighted the widening gap in bonuses between the DS (semiconductor) and DX (device experience) divisions since the introduction of the special management bonus system. The program examined the differences in compensation across divisions and the operational methods of the union, shedding light on the deepening internal strife.According to the broadcast, Samsung Electronics recently established a new special management bonus system in addition to existing performance bonuses as part of its wage and collective bargaining agreement. However, the DX division was excluded from this new system, leading to a significant disparity in bonuses between the DS and DX divisions.Some employees in the DS division stand to receive special bonuses worth tens of millions of won, while those in the DX division, having been excluded, face a compensation gap of hundreds of times. Employees in the DX division have expressed feelings of deprivation, noting that while their division supported the company's performance during past downturns in the semiconductor market, rewards have now been concentrated in the DS division during prosperous times. Outside the company, there is a perception of a 'Samsung bonus windfall,' yet many employees feel they are left out and must justify their situation.The conflict extends beyond divisions, affecting employees within the DS division as well. Some divisions outside the memory sector are considering a structure where performance penalties would apply in the event of future losses, raising concerns that researchers responsible for advanced technologies may receive less compensation than those in manufacturing and production roles.Criticism has also been directed at the union's operational methods. Previously, three unions collaborated in negotiations, but the newly formed super-union, which combines members from both the DX and DS divisions, has secured a majority and taken the lead in negotiations. This has led to claims that the DX division's demands were not adequately represented during the bargaining process.As a result, some employees from the DX division have protested against the bonus disparities, and the internal conflict at Samsung Electronics is evolving into a broader intra-union conflict.Online communities have seen ongoing criticism regarding the union's operational methods and the structure of bonus distribution.Netizens have reacted, stating, 'It's problematic that compensation varies so drastically between divisions in the same company,' 'The structure where the representative union negotiates primarily for a specific division is an issue,' 'In the past, the DX division supported the company, but now it feels like they are just being used,' and 'It's hard to understand why key researchers are not being properly compensated. The way the union leadership makes all the decisions needs to change.'* This article has been translated by AI. 2026-07-27 16:12:00
  • Fed Likely to Hold Interest Rates Steady Despite Surge in Oil Prices
    Fed Likely to Hold Interest Rates Steady Despite Surge in Oil Prices Despite a surge in international oil prices raising the possibility of an interest rate hike by the Federal Reserve, analysts suggest that the Federal Open Market Committee (FOMC) is likely to keep rates steady in July.According to Investing.com and TheStreet on July 26, the Fed will meet on July 28-29 to decide on interest rates. As of 4 p.m. Korean time on July 27, the CME FedWatch Tool, which tracks market expectations for Fed rate changes, indicated a 68.5% chance of maintaining the current rate, while a 0.25 percentage point increase was seen at 31.5%.Just a week ago, the likelihood of a rate freeze was nearly 90%. However, renewed military tensions surrounding Iran and rising oil prices quickly shifted expectations for a rate hike. Nonetheless, following the cessation of hostilities between the U.S. and Iran over the weekend, concerns about escalation have eased, and international oil prices have shown a significant decline.Citi forecasts that the Fed will maintain the current interest rate of 3.5-3.75% during this FOMC meeting, despite the rise in oil prices. They noted that core inflation in June was lower than expected and that employment growth has also slowed, suggesting a strong likelihood of a rate freeze.However, some committee members, including Cleveland Fed President Loretta Mester and Dallas Fed President Lorie Logan, are expected to advocate for a rate increase. Citi interprets that if more than three votes are cast in favor of a hike, it could signal a hawkish stance, but the decision to freeze rates is likely to be viewed as dovish in financial markets. In such a scenario, U.S. Treasury yields may decline, and the dollar could weaken.Additionally, Citi assessed that the slowdown in employment growth, the drop in labor force participation, and the core Consumer Price Index (CPI) for June, which is nearing pre-pandemic trends, indicate that the U.S. economy is not overheating.Goldman Sachs raised questions about the effectiveness of limited rate hikes rather than directly predicting the outcome of this meeting. David Mericle, Goldman Sachs' chief U.S. economist, stated that while one or two small rate increases could demonstrate the Fed's commitment to price stability, their actual impact on reducing inflation is likely to be minimal.He explained that much of the recent inflation is driven by supply shocks, such as tariffs and rising energy prices due to the conflict in Iran, rather than demand overheating, making it difficult to curb inflation with limited rate hikes.Goldman Sachs analyzed that the increases in tariffs, energy prices from the Iran conflict, and measurement errors related to artificial intelligence (AI) account for most of the excess over the 2% target in the core Personal Consumption Expenditures (PCE) price index. They estimate that these factors alone could explain the excess in the core CPI.Goldman Sachs noted, "A key lesson from recent years is that supply shocks have a significant impact on inflation, while changes in the labor market and idle resources within the economy have a relatively limited effect on prices. Therefore, it is challenging to lower inflation with only the limited rate hikes anticipated by the bond market."Markets are reflecting a cumulative probability of about 79% for at least one 0.25 percentage point increase before the September FOMC. However, Citi predicts that if employment and inflation indicators continue to weaken in the coming months, expectations for a rate hike will diminish, and the Fed may resume rate cuts as early as October.* This article has been translated by AI. 2026-07-27 16:08:00
  • GS25s High-Protein Kimbap Sales Reach 1.5 Million in Three Months
    GS25's High-Protein Kimbap Sales Reach 1.5 Million in Three Months Convenience store GS25 has reported that its high-protein kimbap has surpassed 1.5 million units in sales just three months after its launch.On July 27, GS25 announced that the cumulative sales of its tuna egg kimbap and egg mentaiko mayo kimbap have exceeded 1.5 million units since their introduction in April.Each of these products contains approximately 15 grams of protein, targeting consumers looking for a convenient meal option that also provides protein. During the same period, the sales of light tuna mayo triangle kimbap and low-sugar Jeonju bibimbap triangle kimbap also surpassed 1 million units.The popularity of healthy convenience foods has contributed to significant growth in related product sales. From April 28 to July 24, sales of GS25's kimbap and triangle kimbap increased by 25% compared to the same period last year.In response to this trend, GS25 is launching a third product in its high-protein kimbap series, the 'Cheese Pork Cutlet Kimbap.' This new offering features protein string cheese and thick pork cutlet, raising the protein content to 17 grams, making it the highest among GS25's kimbap products.An Jin-woong, MD of GS Retail's Fresh Food team, stated, "We will continue to expand our health-focused product line to attract new customers and grow the convenience food market."Additionally, GS25 has opened the industry's first 'Ichiban Kuji' specialized store in Busan. Ichiban Kuji is a 'no-loss lottery' where customers can purchase coupons to receive figures or goods based on popular intellectual properties (IP). GS25 plans to use this store as a testbed for introducing related content.* This article has been translated by AI. 2026-07-27 16:08:00
  • Dongkuk Steels Direct Employment of 971 Workers Boosts Competitiveness
    Dongkuk Steel's Direct Employment of 971 Workers Boosts Competitiveness As the steel industry grapples with labor disputes over the direct employment of subcontracted workers, Dongkuk Steel has established stable labor relations after directly hiring 971 employees from partner companies in 2023. This year, the company also achieved an early resolution of wage and collective bargaining agreements in March, marking a record 32 consecutive years of conflict-free negotiations.Dongkuk Steel attributes its unique labor relations to '72 years of communication and trust.' In an interview on July 22 at the Incheon plant, Jeong Yong-no, the director overseeing human resources and labor relations, stated, "The greatest competitive advantage of Dongkuk Steel is our labor relations. There is a shared understanding that the company must generate profits for the benefit of its members, and a culture of mutual concession has been maintained for a long time."In 2023, Dongkuk Steel Group became the first in the industry to directly employ 971 in-house subcontracted workers. At that time, there were concerns about potential labor disputes and resistance from existing employees during the organizational integration process.To minimize these concerns, the company operated a separate task force for six months prior to the direct employment, engaging in thorough discussions with the union to build consensus on the direction of the hiring initiative. The task force included labor representatives from each workplace to address anticipated issues, and company executives frequently met with the union to discuss the necessity of direct employment and strategies for securing the company's future competitiveness.After the direct employment, the focus shifted to organizational integration. The company implemented a 'Harmony Project' that included mentoring and lunch meetings between existing and newly hired employees to share organizational culture and enhance understanding of work conditions, benefits, and company policies.As a result, two years after the direct employment, Dongkuk Steel has achieved stable organizational integration, along with improvements in factory productivity and safety levels. Jeong noted, "Before direct employment, the primary contractor and subcontractors shared production processes, but now we operate as a single organization, facilitating much smoother communication. Productivity has increased, and the issue of outsourcing risks has improved, ultimately strengthening the company's competitiveness."He particularly highlighted significant changes in safety. Following direct employment, workers began actively participating in risk assessments and improvement activities, leading to investments in safety facilities for subcontracted processes that now meet the same standards as direct operations.In fact, Dongkuk Steel's accident rate decreased from 0.68% in 2023 to 0.58% in 2024, a reduction of about 14%. Although it rose slightly to 0.63% in 2025, it remains low compared to pre-direct employment levels.Jeong emphasized that Dongkuk Steel's investment in its workforce has driven these results. He stated, "The company's decision to directly employ workers was not merely a response to labor issues or the Serious Accident Punishment Act. While there was a short-term burden of labor costs, we believed that investing in people would ultimately lead to corporate competitiveness, and that belief has resulted in our current achievements."Looking ahead, Dongkuk Steel plans to continue its investment in people. Given the challenges of attracting young talent in the manufacturing sector, the company aims to enhance housing support and implement various programs, including internship opportunities linked to employment, to secure young talent.Jeong concluded, "To become a century-old company, people are ultimately the most important asset. We will continue to focus on creating an environment where employees can build stable families and work for a long time."* This article has been translated by AI. 2026-07-27 16:04:00
  • Banks Face Rising Costs in Developing Alternative Credit Assessments
    Banks Face Rising Costs in Developing Alternative Credit Assessments As financial authorities push for greater access to credit through alternative credit assessments, banks are facing increased costs. Each bank is responsible for developing and operating models that utilize non-financial data, raising concerns about the financial burden without clear standards or common infrastructure. According to the financial sector on July 27, major banks are developing their own alternative credit assessment models to evaluate the repayment ability of customers with limited financial transaction histories. Shinhan Bank has been using its 'Alternative Credit Assessment Model for Low-Income Individuals,' which incorporates automatic payment histories for living expenses and utility bills, since March for its low-income credit loan evaluations. KB Kookmin Bank is also applying financial and non-financial information, including payment histories for communication fees, in its 'KB First EASY Credit Loan' assessments. NH Nonghyup Financial Group plans to finalize its machine learning assessment strategy using alternative information by October. Alternative credit assessments evaluate borrowers' repayment capabilities using non-financial data such as payment histories for communication fees, utilities, rent, and taxes, aiming to improve loan access for young adults and those new to the workforce who may struggle to establish creditworthiness with traditional financial data. However, developing and operating these models incurs significant costs. While financial authorities emphasize the use of alternative credit assessments, the criteria and methods remain at the discretion of individual banks. Each institution must independently develop models and establish IT systems. Banking sources estimate that developing new assessment models or modifying existing ones can cost tens of millions of won. To enhance accuracy, banks need to acquire, process, and refine data from various institutions. They must also integrate this data with existing loan assessment systems and validate the appropriateness of the models. Acquiring data also incurs costs. To utilize information held by telecommunications, retail, and platform companies, banks must enter separate contracts and establish procedures for data protection and consent. Additionally, the lack of sufficient long-term data to verify the accuracy and risk of alternative credit assessments poses a challenge. Each time a new evaluation criterion is added, the model must undergo validation and IT integration, extending the development timeline. Including external consulting, testing, and system stabilization can take over a year, according to banking sources. The financial sector criticizes the current structure, where individual banks purchase similar data and repeatedly develop similar models, as inefficient. There is a need for at least minimal common standards regarding the scope of alternative information, data formats, and model validation methods. A financial sector representative stated, “While authorities provide direction, they leave the detailed standards and infrastructure development to the banks, which must bear the development and operational costs. It is essential to establish common guidelines for data utilization and model validation while ensuring banks' autonomy.” 2026-07-27 16:04:00
  • Shinsegae Department Store Wins Three Red Dot Design Awards for Second Consecutive Year
    Shinsegae Department Store Wins Three Red Dot Design Awards for Second Consecutive Year Shinsegae Department Store has received three prestigious awards at the Red Dot Design Award 2026 for its projects that creatively express Korean holiday culture, store spaces, and food content through design. On July 27, Shinsegae announced that its holiday campaign, main store rebranding project, and the wellness market 'Twelve' at House of Shinsegae Cheongdam each won an award in the brand and communication design category. The Red Dot Design Award is an international design competition organized by the Design Center North Rhine-Westphalia in Germany. It evaluates innovation, completeness, and brand communication across three categories: product design, design concepts, and brand communication design. The holiday campaign reinterprets traditional Korean themes, such as folk paintings and horse-drawn carriages, in a modern context. A consistent design framework was applied across offline stores, printed materials, and digital content to convey the emotions and stories of the holidays. The main store rebranding project visualized the transformation of the flagship store in Myeongdong, Seoul, and its distinct identities across different spaces. The brand system, which includes 'The Reserve,' 'The Heritage,' and 'The Estate,' was designed for intuitive customer understanding, with visual content reflecting the stories embedded in each architectural space. Twelve, located at House of Shinsegae Cheongdam, reinterprets food not merely as products for sale but as wellness-based lifestyle content. A unified visual system and brand identity were established across approximately 6,000 products, connecting items, packaging, and store spaces into a cohesive image. Shinsegae explained that this award stems from moving away from designing products and store interiors separately, instead linking space, content, and customer touchpoints into a singular brand experience. Last year, Shinsegae also won four Red Dot Design Awards for its Christmas campaign 'Joy Everywhere,' the media art 'Timeless Moment' on the main store's exterior, and projects like 'Pilgrimage to Jung-gu' and 'Musician's Suitcase.' 'Timeless Moment' transformed the main store's exterior into a media art space, connecting tradition and modernity through imagery inspired by mother-of-pearl. A Shinsegae representative stated, "We will continue to provide differentiated customer experiences through design and content, setting new standards in retail." * This article has been translated by AI. 2026-07-27 16:00:00
  • UN Commander: Armistice Agreement Contributed to Peace and Stability on the Korean Peninsula for 73 Years
    UN Commander: Armistice Agreement Contributed to Peace and Stability on the Korean Peninsula for 73 Years Javier Brunson, the US Forces Korea Commander and UN Commander, stated on the anniversary of the Korean War Armistice Agreement on July 27 that "the armistice agreement is not a peace treaty, but it has provided a framework that has contributed to maintaining peace and stability on the Korean Peninsula for the past 73 years." In a post on social media platform X, Brunson honored the 22 countries that sacrificed together to protect freedom and the security of South Korea, saying, "These veterans are a living bridge connecting the battlefields of yesterday to the peace we are safeguarding today." Brunson emphasized that their legacy reminds us that maintaining the armistice agreement requires strong commitment, unwavering vigilance, and reliable readiness, stating, "Nothing can replace preparedness." The Korean War, which began on June 25, 1950, was halted with the signing of the armistice agreement on July 27, 1953. The system agreed upon at the time, including the establishment of the Military Demarcation Line (MDL) and the creation of a demilitarized zone (DMZ) two kilometers north and south of the MDL, has been maintained to this day. South Korea designates this day as 'UN Armed Forces Day' to honor the contributions of the 22 UN member countries that participated in the Korean War, while North Korea commemorates it as 'Victory Day,' a national holiday.* This article has been translated by AI. 2026-07-27 15:56:00
  • Trump and Netanyahu to Meet on July 28 to Discuss Iran Conflict
    Trump and Netanyahu to Meet on July 28 to Discuss Iran Conflict As the United States and Iran have paused military hostilities after 13 days of conflict, President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are set to meet to discuss the future of the Iran war and potential responses. According to the Israeli Prime Minister's Office, Netanyahu will meet with Trump at the White House on July 28. This will be the first face-to-face meeting between the two leaders since the Iran war began in February. U.S. forces conducted attacks on Iranian military facilities and coastal infrastructure from July 11 to July 23. In retaliation, Iran targeted U.S. military bases in the Middle East with missiles and drones. On July 24, Trump did not approve additional airstrikes, and Iran stated it would refrain from retaliation while U.S. attacks were halted. However, neither side has agreed to a formal ceasefire. The U.S. and Iran are currently communicating through intermediaries, including Oman. The immediate focus of discussions is not the Iranian nuclear issue but rather ensuring the safe passage of vessels through the Hormuz Strait. Negotiations are exploring a framework where Iran would manage the passage of ships through the Strait without blocking or attacking commercial vessels. Normalizing traffic through the Strait could alleviate rising international oil prices and logistical disruptions. However, the U.S. maritime blockade against Iran remains in effect. U.S. forces are redirecting vessels traveling to and from Iranian ports and conducting inspections on some ships. While airstrikes have ceased, military tensions have not fully dissipated. Trump appears to prioritize resolving the Hormuz Strait issue before addressing Iran's nuclear program in subsequent negotiations. He has maintained that if talks fail, airstrikes could resume. Netanyahu holds a more hardline stance, asserting that the war can only end if Iran is weakened to the point where it cannot pursue its nuclear program or attempt to develop nuclear weapons. Nonetheless, he has not opposed diplomatic solutions. Netanyahu expressed support for Trump if he can halt Iran's nuclear program without large-scale military conflict, indicating he is more interested in hearing Trump's plans than presenting new information during their meeting. Both leaders agree on the necessity of preventing Iran from acquiring nuclear weapons. However, while Trump favors phased negotiations, Netanyahu insists on the complete elimination of Iran's nuclear capabilities, highlighting a divergence in their approaches. If negotiations break down, discussions may also address the scope of Israel's military involvement. Trump has indicated he is considering a larger-scale attack on Iran than what was planned at the onset of the war in February, stating that Israel could participate immediately if requested. Iran has warned that if the U.S. resumes airstrikes, the conflict could expand further. The Iranian military stated, "The battlefield has extended beyond the Hormuz Strait to the Bab-el-Mandeb Strait and U.S. military bases in the Gulf region," asserting that they are prepared for all scenarios.* This article has been translated by AI. 2026-07-27 15:52:00
  • Deutsche Motors Reports 8% Increase in First Half Operating Profit, Boosted by BYD Growth
    Deutsche Motors Reports 8% Increase in First Half Operating Profit, Boosted by BYD Growth Deutsche Motors announced on July 27 that it achieved sales of 710.9 billion won and an operating profit of 12.9 billion won in the second quarter of this year.While sales increased by 8.6% compared to the same period last year, operating profit saw a decline of 6%.However, for the first half of the year, cumulative sales reached 1.3483 trillion won, and operating profit was 23.4 billion won, marking increases of 9.4% and 7.8%, respectively, compared to the same period last year.A representative from Deutsche Motors stated, "In the second quarter, intensified competition among imported car brands and growing economic uncertainty have added to the challenges faced by the imported car industry. Nevertheless, we maintained solid profitability thanks to our proactively established multi-brand portfolio and improved performance from our subsidiaries."Notably, the rapid growth of BYD (DT Networks), which has been pursued as a new growth driver, effectively offset the slowdown in the internal combustion engine vehicle market.The BYD business, which began in earnest last year, has expanded its vehicle lineup, achieving sales of 144.9 billion won and an operating profit of 4.3 billion won in the first half of this year, successfully turning a profit. The company explained that it has become a key pillar in enhancing both the stability and growth of the overall business portfolio.The decision to end operations at British Auto, a subsidiary managing the Jaguar Land Rover business, at the end of June, which had been struggling with profitability due to business restructuring, also contributed to the improvement in performance.Kwon Hyuk-min, CEO of Deutsche Motors, stated, "We will complete a sustainable and stable business structure as soon as possible this year and do our utmost to secure profitability. We will also continue to implement policies to enhance shareholder value, including a stable dividend policy, to meet shareholder expectations."* This article has been translated by AI. 2026-07-27 15:52:00
  • Korea Exchange Drops Two Grades in Management Evaluation Due to IT Incident
    Korea Exchange Drops Two Grades in Management Evaluation Due to IT Incident The Korea Exchange received a B grade in the Financial Services Commission's management evaluation for the previous year, marking a two-grade drop from the prior year. Despite a significant increase in net profit last year, the occurrence of an IT incident is believed to have had a major impact on the evaluation.According to the financial investment industry on July 27, the Financial Services Commission recently assigned a B grade to the Korea Exchange for its 2025 management performance evaluation, while the Korea Securities Depository received an A grade.This is the first time the Korea Exchange has received a B grade since 2016. The exchange first achieved an S grade in the 2021 evaluation, maintained an A grade in 2022 and 2023, and regained an S grade in the 2024 evaluation. However, in this latest evaluation, it fell from an S grade to a B grade.The Financial Services Commission conducts annual management evaluations of its affiliated institutions, which are excluded from the Ministry of Economy and Finance's public institution management evaluation. The evaluations are categorized into six grades: S (excellent), A, B, C, D, and E, reflecting overall management performance, organizational operation, internal control, and key business outcomes. The results serve as a basis for employee performance bonuses and are used as reference material for the approval of the following year's budget.The drop in the exchange's grade is attributed to an IT incident that occurred last year. Although the exchange saw a 67% increase in consolidated net profit to 708.9 billion won due to a booming stock market, it reportedly received deductions for stability in market operations.On March 18 of last year, the Korea Exchange experienced a trading system failure, causing a rare disruption in stock trading on the KOSPI market from 11:37 a.m. to 11:44 a.m. After the system was restored, trading for Dongyang Steel Pipe was halted for about three hours due to order reception errors. The exchange suspended trading for the stock at 12:05 p.m. for market management reasons and resumed trading around 3 p.m.Meanwhile, the Korea Securities Depository has been reported to have received an A grade in this management evaluation, maintaining its excellent performance from the previous year and being recognized for its stable institutional operations. 2026-07-27 15:52:00