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  • Lack of Standard Criteria for New Borrowers Complicates Loan Comparisons
    Lack of Standard Criteria for New Borrowers Complicates Loan Comparisons Differences in how banks classify new borrowers, known as 'new fileers,' have made it difficult to objectively compare loan performance. Financial authorities have not established common reporting standards, leading to varying definitions and scopes for new fileers across banks. According to data submitted by major banks to Kim Hyun-jung, a lawmaker from the Democratic Party, the number of new fileer loans at key banks has generally increased over the past year. KB Kookmin Bank reported an increase in new fileer loans from 13,718 in June 2022 to 14,182 in June 2023. Similarly, NH Nonghyup Bank's new fileer loans rose from 594,385 to 596,053 during the same period. K-Bank saw an increase from 14,339 to 17,208, while Toss Bank's loans grew from 7,722 to 10,691. The issue lies in the differing criteria banks use to classify new fileers. Without a common standard from financial authorities, each bank determines its own criteria for identifying eligible customers and reporting results. KB Kookmin Bank and NH Nonghyup Bank classify borrowers with no credit card usage in the past two years and no new loan history in the last three years as new fileers. In contrast, K-Bank considers customers who have held a credit card for less than a year as new fileers. Toss Bank uses a criterion of no card or loan activity in the past year or customers who have just started using these services within the last six months. Woori Bank classifies young individuals with low credit scores and no income history as new fileers. These differences in classification are reflected in the loan numbers. While NH Nonghyup Bank reported over 590,000 new fileer loans, KB Kookmin Bank and online banks reported around 10,000 each. Although differences in operational scale and customer demographics play a role, the varying definitions of new fileers among banks significantly impact these figures. As a result, it is challenging to determine which bank is more actively providing loans to customers with limited financial histories based solely on current statistics. Comparing loan numbers is not meaningful when the reporting criteria differ. Not all individuals with limited financial histories fall into vulnerable categories. Young professionals and individuals with sufficient income and assets who have not recently used credit or loans may also be classified as new fileers based on bank criteria. This complicates the assessment of new fileer loan numbers as indicators of support for financially vulnerable groups. While the financial sector argues that uniformity in credit evaluation and product management is not necessary, they emphasize the need for at least minimal common standards for performance comparison. Basic classification criteria, such as the duration of card and loan usage, credit information, age, and income, should be aligned to some extent. Without common standards, banks may broadly classify customers who are easier to lend to as new fileers or, conversely, may set overly narrow criteria. This could lead to an increase in loan numbers without clarity on which customers are actually receiving funds. The financial sector has been requesting that authorities establish a common definition and reporting standards for new fileers. However, financial authorities have been cautious, fearing that setting detailed criteria could infringe on banks' credit evaluation and operational autonomy or be perceived as another form of government intervention. A financial sector representative stated, “The differing definitions of new fileers among banks make it difficult to compare support performance based on current statistics. While credit evaluation and product management should remain with the banks, at a minimum, the same criteria should be applied when publicly disclosing performance.” 2026-07-27 15:44:00
  • SK hynix Q2 to show how much its all-in AI bet is paying off
    SK hynix Q2 to show how much its all-in AI bet is paying off SEOUL, July 27 (AJP) - China's rising chip darling and IPO blockbuster CXMT may be catching up fast, while local archrival Samsung Electronics bristles at the comparison. But in the AI memory race, this year still belongs to SK hynix. The headline numbers may no longer surprise investors when SK hynix reports second-quarter earnings on Wednesday, even though operating profit is expected to nearly double its previous quarterly record and exceed the company's entire profit for 2025. The earnings surge has become almost predictable. Demand for high-bandwidth memory (HBM), AI-oriented DRAM and enterprise solid-state drives continued to accelerate throughout the second quarter, as reflected in the strong results reported across the AI semiconductor supply chain. Yet SK hynix's success cannot be explained by HBM alone. While HBM has become the defining product of the AI era, analysts say the company made a broader strategic decision that fundamentally altered the economics of the memory industry: it redirected manufacturing capacity toward AI memory rather than expanding production evenly across all products. HBM requires substantially more wafer capacity, advanced packaging and production time than conventional DRAM. As SK hynix increasingly prioritized HBM, less production capacity remained for commodity memory. That decision rippled across the market. With supply of conventional DRAM tightening, prices strengthened even outside the AI segment. Instead of merely benefiting from booming HBM demand, SK hynix effectively tightened supply across the broader memory market, lifting profitability in both premium and commodity products. According to Mirae Asset Securities, continued expansion of HBM production is expected to further constrain conventional memory supply, supporting prices across the industry. The result has been a virtuous cycle. Higher HBM demand has boosted margins directly, while tighter supply has improved profitability in conventional DRAM. NAND has also joined the recovery as AI data-center construction fueled demand for enterprise SSDs, allowing SK hynix's two major memory businesses to recover simultaneously. Mirae Asset projects SK hynix's average DRAM selling price to rise 161.4 percent this year, while NAND prices are forecast to jump 222.2 percent. The brokerage expects operating margins to approach 77 percent and operating profit to continue climbing next year despite increased capital spending, supported by sustained AI infrastructure investment. Another powerful tailwind remains hyperscale AI infrastructure. The world's largest cloud providers continue to accelerate capital spending, reinforcing expectations that demand for premium memory will remain elevated. Mirae Asset estimates combined order backlogs among major hyperscalers reached roughly $2.1 trillion in the first quarter, with contracts scheduled for delivery within two years growing even faster than overall orders. SK hynix's close relationship with Nvidia has further strengthened its competitive position. The company remains the leading supplier of HBM for Nvidia's AI accelerators and last week expanded cooperation with the U.S. chip designer through joint development of next-generation HBM and AI infrastructure technologies. The move reinforced expectations for HBM4 demand as Nvidia prepares its Rubin platform. The AI strategy has also shaped investment decisions beyond DRAM. Earlier this month, SK hynix chose to retain its stake in Japanese NAND maker Kioxia rather than monetize the investment, signaling management's conviction that enterprise storage will become another core pillar of AI infrastructure alongside HBM. The comparison with Samsung Electronics and CXMT therefore misses a larger story. SK hynix did not simply build a lead in one premium product category. It made an early strategic bet that AI would redefine memory demand and reorganized its production capacity, capital spending and partnerships around that conviction. In doing so, it helped reshape pricing dynamics across the entire memory market. Investors are therefore likely to focus less on whether SK hynix delivers another record quarter than on whether management believes the AI-driven transformation of the memory industry still has room to run. Samsung Electronics and Micron are accelerating their next-generation HBM roadmaps, while CXMT's rapid ascent has revived concerns over Chinese competition in conventional memory. Yet analysts say the more important question is whether SK hynix can preserve the structural advantage created by its early AI strategy. For now, the company has demonstrated that the biggest winner in AI memory is not necessarily the company selling the most HBM, but the one that understood earliest how AI would reshape the economics of the entire memory industry. 2026-07-27 15:43:00
  • Former pitcher Park Chan-ho becomes 1st South Korean to acquire stake in MLB team
    Former pitcher Park Chan-ho becomes 1st South Korean to acquire stake in MLB team SEOUL, July 27 (AJP) - Former pitcher Park Chan-ho has become the first South Korean to acquire a stake in a Major League Baseball (MLB) team, leading a consortium that has signed a strategic partnership with the Athletics. During a press event in Seoul on Monday, Park said the consortium, dubbed "Team61", will invest $70 million in the Athletics, which left Oakland, Northern California, and are currently based in West Sacramento, California, before relocating to Las Vegas in 2028. Team61, named after Park's former jersey number, includes about 30 investors, including Korean-American actors Daniel Dae Kim and Ken Jeong. According to Park, the consortium has completed an initial $55 million investment and is awaiting MLB approval for the remaining $15 million. Once finalized, Team61 is expected to gain about a 3 percent stake in the team, marking the first time a South Korean-led group has invested in an MLB club. As part of the partnership, Park will also serve as senior adviser to Athletics principal owner John Fisher, providing guidance and strategies to expand the club's presence across Asia including South Korea. Park said the partnership could create more opportunities for South Korean players to reach MLB. Park, one of the most decorated South Korean pitchers, made history in 1994 as the first South Korean player in MLB when he joined the Los Angeles Dodgers. During his 17-year career with seven clubs, he recorded 124 wins, the most by a South Korean pitcher in MLB history. 2026-07-27 15:41:51
  • Debate on Distribution Law Resurfaces as Delivery Regulations Face Overhaul
    Debate on Distribution Law Resurfaces as Delivery Regulations Face Overhaul Discussions on amending the Distribution Industry Development Act, which has restricted large supermarkets for 14 years, are gaining momentum. With the formation of the 22nd National Assembly's second half and the government's efforts to gather opinions from the distribution sector, there are expectations for accelerated reform. However, strong opposition from small business owners concerned about local market impacts is anticipated during the legislative process. According to industry sources on July 27, the Ministry of Trade, Industry and Energy recently met with representatives from large supermarkets and the Korea Chain Store Association to discuss strategies for the development of the distribution industry. With the government seeking input, the industry believes discussions on amending the distribution law will gain traction. Large supermarkets have been constrained by operating hour restrictions. Under the current law, they cannot operate from midnight to 10 a.m. This limitation not only prevents them from opening during these hours but also hinders their ability to package and dispatch goods, effectively blocking their entry into the dawn delivery market. Meanwhile, consumer spending has shifted from offline to online. According to the Ministry of Trade, Industry and Energy, sales at large supermarkets fell by 5.1% in May compared to the same period last year. In contrast, online retailers like Coupang and Naver now account for nearly 60% of total sales among major distribution companies. Homeplus's entry into corporate rehabilitation due to financial difficulties has also bolstered calls for regulatory reform. Lawmakers have pointed out that the current regulations, which only target offline stores, do not reflect the changing market environment. In response, the Democratic Party has proposed allowing online deliveries on mandatory closure days and during restricted hours for large supermarkets, considering the increase in dawn delivery users. The People Power Party has suggested abolishing operating hour restrictions and removing the mandatory closure on public holidays twice a month, allowing for adjustments based on local conditions. While there are differences in the scope of regulatory relaxation, both parties agree on the need to amend the current law. A national research institute has also criticized the regulatory framework as outdated. The Korea Development Institute (KDI) stated in a report last month that the distribution law, designed primarily for large offline stores, has become increasingly disconnected from the current market, where online orders and dawn deliveries are commonplace. However, small business associations are pushing back, arguing that easing regulations would threaten the survival of local markets. The Korea Supermarket Cooperative Federation recently issued a statement claiming that relaxing operating hour restrictions for large supermarkets is a policy that ignores the needs of small supermarkets and local businesses. They warned that in the current environment of high inflation and interest rates, lifting regulations on large supermarkets would cause irreparable harm to small neighborhood businesses, emphasizing the need for protective measures for local markets first. Some voices are calling for a reassessment of the regulatory balance across all distribution channels, both online and offline. KDI researcher Lee Gong stated, "Discussions on legal amendments should ensure regulatory equity between online and offline channels to prevent undue burdens on one side. Furthermore, as Chinese e-commerce platforms like Temu and AliExpress establish dawn and same-day delivery logistics in South Korea, monitoring their impact on offline retailers' sales is crucial, and policies should be flexibly adapted accordingly." 2026-07-27 15:40:00
  • Ruling and Opposition Parties Clash Over Abolishing Prosecutorial Supplementary Investigation Rights
    Ruling and Opposition Parties Clash Over Abolishing Prosecutorial Supplementary Investigation Rights On July 27, the ruling and opposition parties engaged in a heated debate over a proposed amendment to the Criminal Procedure Act aimed at abolishing the supplementary investigation rights of prosecutors and the resignation of Minister of Justice Jung Sung-ho. The Democratic Party emphasized the swift processing of the bill to abolish supplementary investigation rights, which is a party stance, while the People Power Party criticized it, claiming it could mark the beginning of a lame-duck period for the Lee Jae-myung administration.The National Assembly's Legislative Judiciary Committee held a full meeting on the same day, presenting 50 bills for consideration. The People Power Party, having lifted its boycott of the National Assembly's schedule, attended the meeting for the first time and appointed Representative Park Hyung-soo as the opposition secretary.Both parties demanded the withdrawal of Minister Jung's resignation for different reasons. The Democratic Party called for the completion of prosecutorial reform, while the People Power Party stressed that he should fulfill his role as minister to prevent the abolition of supplementary investigation rights.Representative Park Ji-won of the Democratic Party stated, "The prosecutorial reform of the Lee Jae-myung administration has entered a successful phase, and it makes no sense to resign at this point. We need to ensure that the police can conduct supplementary investigations on vulnerable social groups through the Serious Crimes Investigation Agency. We should launch the Serious Crimes Investigation Agency and the Prosecution Service and move forward."Minister Jung remarked, "I believe that the major framework of prosecutorial reform is largely complete, and now new wine should be put into new bottles. Personally, my health is not very good. I have discussed this aspect extensively with close aides around the president."In response, Representative Yoon Sang-hyun of the People Power Party pointed out, "Isn't the resignation an expression of helplessness regarding the abolition of supplementary investigation rights? Passing the responsibility to the National Assembly is a dereliction of duty. He must persuade the National Assembly further." He added, "The abolition of supplementary investigation rights could mark the beginning of a lame-duck period for the Lee Jae-myung administration, and if the government hopes for success, it should engage in public discussions like the real estate forum and gather public opinion."Representative Kwak Gyu-taek also criticized Minister Jung, saying, "There are claims that the ruling party is trying to finalize the abolition of supplementary investigation rights without reasonable discussion due to the ruling party's convention. Isn't it the minister's responsibility to persuade the ruling party and advise the president to exercise the right to request reconsideration?"Regarding the abolition of supplementary investigation rights, Representative Kwak expressed concern, stating, "We must allow for exceptions where supplementary investigations can be conducted in specific cases to ensure that police investigations are carried out properly from the outset. If we only create a system that allows for requests for supplementary investigations, it will inevitably lead to delayed and inadequate police investigations."On the other hand, Representative Kim Yong-min of the Democratic Party criticized the proposed amendment to the Criminal Procedure Act, saying, "Even though the government and the National Assembly have established a position to abolish supplementary investigation rights, it seems that there is a separate proposal from the prosecution. Even if the government or the National Assembly sets a position, it does not follow it and calls the proposed bill a 'garbage law.' The only solution is not for prosecutors to conduct direct investigations and supplementary investigations; rather, it is more appropriate to approach it from the perspective of guaranteeing victims' rights."* This article has been translated by AI. 2026-07-27 15:36:00
  • Korea to Launch FANOMENON, a Major K-Culture Festival
    Korea to Launch 'FANOMENON,' a Major K-Culture Festival The South Korean government and the K-pop industry are collaborating to launch a major K-culture festival called 'FANOMENON.' The festival aims to combine K-pop concerts, fandom award ceremonies, and K-culture exhibitions and experiential events into a privately-led initiative. However, as of now, only the event's timing, location, and basic structure have been confirmed, leaving the lineup, budget, and methods for assessing fandom data as key factors for its success.On July 27, a press conference was held at the National Museum of Modern and Contemporary Art in Jongno, Seoul, to announce the '2027 FANOMENON Initiative.''FANOMENON' is a portmanteau of 'fan' and 'phenomenon,' reflecting the intention to view fans not merely as consumers but as active participants in the spread of K-culture.The Korean Wave Cultural Exchange Committee plans to hold FANOMENON from December 2 to December 12, 2027, at the Changdong Seoul Arena and Goyang KINTEX Exhibition Center 2. The festival is envisioned as a large-scale event combining K-pop-centered concerts, fandom award ceremonies, and exhibitions and experiential programs from K-culture companies, aiming to create a Korean version of 'Lollapalooza' or 'Coachella.'Choi Hwi-young, co-chair of the committee, stated, "FANOMENON is a large-scale K-culture festival that aggregates the cultural capabilities of various K-culture fields. Today, I want to outline the big direction and framework of the event."Park Jin-young, also a co-chair, emphasized that the core of FANOMENON is the 'fandom industry.' He explained, "It means a phenomenon created by fans. K-pop differs from other industries in that fans do not remain consumers but become partners in marketing and promoting artists."The event will be divided between the Changdong Seoul Arena and Goyang KINTEX Exhibition Center 2. The Changdong Seoul Arena, set to be completed in May 2027, will host headliner performances and the fandom award ceremony. The indoor arena, with a capacity of about 20,000, will feature artists with global fanbases and award the most active fandoms of the year.The fandom award ceremony aims to differentiate itself from existing artist-centered awards. The recipients will be the fandoms themselves, with artists or brands accepting awards on behalf of their fandoms.Park stated, "It will be based on meticulously researched data rather than voting. We will assess which artist's fandom was the most passionate and active this year to determine the awards."At Goyang KINTEX Exhibition Center 2, festival-style music performances and K-culture exhibitions and experiential events will take place. Companies from lifestyle sectors such as food, beauty, and fashion, as well as those connected to fandom-based industries like gaming, webtoons, film, drama, and animation, will participate.The committee anticipates over 520,000 attendees, including more than 200,000 international visitors, with an estimated economic impact of around 1 trillion won. The Ministry of Culture, Sports and Tourism explained that these figures are based on estimates from the Korea Culture and Tourism Institute, using BTS concert data as a reference. However, detailed plans commensurate with the event's scale are still largely in the planning stages. The budget, ticket prices, the ratio of government to private sector funding, sponsorship structures, and revenue distribution methods have yet to be finalized.Choi noted, "We are closely discussing what resources we will use and how to shape the event. FANOMENON will also involve paid ticketing and sponsorships, creating a revenue-generating structure."Park added, "It is nearly impossible to attract participation from private companies or artists without a profit motive. However, since the primary goal is a public interest initiative, we cannot solely follow capital principles."There are also practical concerns regarding the December timing, as it coincides with numerous domestic and international award ceremonies, tours, and broadcasting schedules. Park acknowledged, "December is indeed the busiest time, but it feels like a time to wrap up the year, and I believe expectations for fandom will be at their highest." He expressed confidence that after intense discussions with representatives and staff from the four major agencies, they felt assured that it could be accomplished despite the challenges.Choi raised concerns about profitability related to the size of the Seoul Arena, stating, "There are not many large-scale venues in South Korea, so it may be smaller than expected for top artists. This means sacrificing some scheduling and revenue to participate in a greater cause."The lineup has not yet been announced. Park mentioned that they are exploring the possibility of attracting top K-pop and international stars, but no specific artists have been confirmed. Choi added, "It is too early to announce the main lineup. We are working hard to bring in outstanding talents from both domestic and international scenes."Concerns have also been raised that the focus on the four major K-pop agencies may marginalize smaller agencies and emerging artists. In response, Park assured, "We will not exclude smaller agencies in favor of the four major ones. While headliners will likely be top artists, we plan to create opportunities for new singers, emerging agencies, and other entertainment and culture companies in various performances and events."The fairness and transparency of the fandom award ceremony are also critical issues. There are concerns that quantifying fandom's passion and activity could compromise its integrity and lead to greater fairness controversies than existing awards.Park acknowledged, "There are certainly side effects to measuring fandom's activities and passions to award them, but if we believe the positive effects outweigh the negatives, we should proceed." He emphasized that ensuring fair research, data collection, and analysis is paramount, stating, "If everyone recognizes that there is no room for manipulation by the organizers, there will be no pressure."However, the criteria for data assessment and the executing organization have yet to be determined. Park mentioned, "We are heavily researching how to improve the data, who will do it, and how. Since this is a government initiative, it should involve a bidding process to select a few companies."There are also variables regarding the event's infrastructure. The Seoul Arena, one of the main stages, is currently under construction. Choi stated, "We are monitoring the construction progress and believe there will be no significant issues, but we must seek alternatives if any problems arise."Concerns have also been raised about the potential perception of a 'government-led initiative' in the international community. Park clarified, "It is not true that government support is a major reason for K-pop or K-culture's global popularity. The K-pop companies on the front lines came up with the ideas and asked the government for assistance, not the other way around."Choi added, "The government does not have the capacity to elevate K-pop to this level globally. Its role is to ask those working hard in the field what needs to be done and support their answers."Ultimately, the success of FANOMENON hinges on whether it can transform the slogan of 'Korean version of Coachella' into a sustainable festival. Securing a world-class lineup, ensuring fairness in the fandom awards, maintaining transparency in budget and revenue structures, differentiating from existing K-culture events, and managing transportation, accommodation, and safety will all be put to the test.Choi concluded, "In the early stages, we are trying not to be overly ambitious. If we try to do everything from the start, it may become unmanageable. Our primary goal is to create a place that earns the trust of the global entertainment industry and makes people want to visit and participate."* This article has been translated by AI. 2026-07-27 15:32:00
  • Vietnam Aims for Developed Nation Status by 2045 with New Growth Model
    Vietnam Aims for Developed Nation Status by 2045 with New Growth Model Vietnam is accelerating its growth model reform with the goal of becoming a developed, high-income nation by 2045. Amid a global supply chain reshuffle, Vietnam has emerged as a key beneficiary of foreign direct investment (FDI) in Southeast Asia, shifting from a low-wage, quantity-focused strategy to a new development direction centered on productivity, science and technology, innovation, and skilled talent.According to the Vietnam Youth Newspaper on July 27, a resolution regarding the innovation of the development model was passed during the third meeting of the 14th Central Committee of the Communist Party of Vietnam held on July 24. This resolution is seen as a strategic shift aimed at elevating Vietnam to developed and high-income status by 2045. The core of the new growth model is to transition from a quantitative growth approach to a productivity-focused growth strategy. Vietnam aims to harness science and technology, creative innovation, digital transformation, and high-quality human resources as new driving forces while also improving infrastructure in transportation, energy, healthcare, and education.Tran Van Khai, deputy chairman of the National Assembly's Committee on Science, Technology, and Environment, described the innovation of the development model as a survival task for Vietnam. He noted that while past growth drivers remain relevant, they can no longer serve as the mainstay. In particular, he pointed out the limitations of relying on increased capital investment, credit expansion, land development, and low-wage labor in the new stage of development.In this context, Vietnam is also facing distinct opportunities in attracting FDI. The Youth Newspaper reported that international organizations and global institutions have recognized Vietnam as a champion in attracting FDI in Southeast Asia. The Diplomat, a foreign affairs magazine, analyzed that Vietnam is in a leading position among the major beneficiaries in Southeast Asia as the 'China Plus One' strategy spreads.Vietnam's strengths include its geographical proximity to China, competitive labor costs, and a broad network of free trade agreements. These factors have made Vietnam an attractive choice for global companies looking to diversify their supply chains, opting for it as a strategic production base rather than merely an assembly hub.Investment flows are also rapidly increasing. In the first half of this year, Vietnam's registered FDI amounted to $34.65 billion, a 61% increase compared to the same period last year. The disbursed amount reached $13.03 billion, marking the highest level in the past five years. Investment is shifting towards high-tech industries such as electronics, semiconductors, artificial intelligence, and data centers.International organizations are optimistic about Vietnam's trade and investment outlook. A report released by DHL Express and New York University's Stern School of Business forecasts that from 2026 to 2030, Vietnam's merchandise trade growth will rank fourth in the world, following China, India, and the United States. The World Bank and the International Monetary Fund also predict that Vietnam will maintain high growth in the region based on institutional reforms, infrastructure investment, and support for the private sector.Tran Anh Tung, head of the Department of Business Administration at Ho Chi Minh City University of Economics and Finance, assessed that Vietnam's rise in FDI is not a short-term phenomenon but the result of 20 years of accumulated integration capabilities and institutional reforms. He explained that Vietnam's proximity to southern China allows companies to implement the 'China Plus One' strategy with lower logistics costs, and access to several large markets through 17 free trade agreements.Bo Chi Thanh, director of the Brand and Competitive Strategy Research Institute, believes that Vietnam's appeal is no longer solely based on low wages or tax incentives. He analyzed that political stability, macroeconomic stability, international integration, and efforts in institutional reform are what enhance Vietnam's competitiveness. He stated, "Investors are now prioritizing countries with stable institutions, consistent policies, and high predictability rather than just low costs."From Quantitative to Qualitative GrowthHowever, there are calls for Vietnam's FDI strategy to shift from quantitative attraction to qualitative selection. Tran Anh Tung emphasized that rather than attracting more capital, Vietnam should focus on increasing localization rates, developing supporting industries, and training talent in semiconductors and AI. He stressed that Vietnam must not remain an assembly factory but become a supply chain hub that creates technology and products.Bo Chi Thanh stated, "FDI is a tool for upgrading the economy through technology transfer, the development of supporting industries, and the formation of production clusters." He added, "Vietnam needs to shift from counting the dollar amounts attracted to valuing the quality of capital flows, as the quality of FDI will determine future economic competitiveness, strategic self-reliance, and sustainable growth."The Central Committee's resolution on development model innovation aligns with this direction. Additionally, Nguyen Phu Trong, General Secretary of the Communist Party and President of Vietnam, noted during the third meeting of the Central Committee that "the biggest bottleneck remains in the execution phase," stating that the main causes must be addressed simultaneously from the root. The Central Committee also proposed that the measure of policies should be based on actual results, quality of life for citizens, job opportunities, happiness, and trust.Land and urban policies will also be adjusted as part of the new growth model. The Central Committee believes that land should be viewed as a development space connected to underground areas, upper spaces, economic corridors, and marine economic zones. Expanding the Transit-Oriented Development (TOD) model linking urban development and public transportation, strengthening local authority, and clarifying responsibilities were also highlighted as key tasks.Vietnam's challenge lies in connecting the influx of FDI to economic advancement. Simply benefiting from the reshuffling of supply chains is not enough; there is a growing demand for simultaneous promotion of advanced technology, skilled labor, institutional reforms, and infrastructure improvements.Meanwhile, Vietnam's new growth strategy focuses on leveraging the FDI boom as an opportunity to elevate its industrial structure rather than merely viewing it as capital inflow. The Central Committee's push for development model innovation and experts' calls for a qualitative shift in FDI indicate that Vietnam must transition from being a host for factories to becoming a hub for technology and innovation.* This article has been translated by AI. 2026-07-27 15:32:00
  • Job Market Disparities Persist Across Age Groups in South Korea
    Job Market Disparities Persist Across Age Groups in South Korea Disparities in the labor market based on education and region have been observed across all age groups, from youth to seniors. The youth demographic shows a concentration of stable jobs in the metropolitan area and among highly educated individuals, while middle-aged workers experience a decline in job quality after retirement, and seniors face inadequate institutional protections. The Korea Employment Information Service released a report on July 27, titled 'In-Depth Analysis of the Labor Market Using Employment Panels,' which utilized data from youth and aging employment panels to analyze labor market participation and job quality across different life stages. According to the report, a clear trend of concentration in the metropolitan area was evident in the youth labor market. More than half of the surveyed youth resided in the metropolitan area, where stable jobs were also concentrated. Those with a college degree had a higher employment rate and a lower rate of inactivity, while those with a high school diploma or less had relatively higher rates of inactivity and unstable employment. Although employment increased with age, disparities based on education and region remained unresolved. Overall, employment conditions for youth have improved. The proportion of employed youth in permanent positions rose from 64.9% in 2021 to 74.6% in 2023, while the share of temporary and daily workers decreased from 28.2% to 18.9% during the same period. However, these changes were not uniform across all groups. The proportion of permanent positions was relatively high among those in the metropolitan area and those with a college degree, while unstable employment was concentrated among those in non-metropolitan areas and those with a high school diploma or less. Thus, education and region emerged as key factors dividing the labor market. For middle-aged workers, the quality of employment significantly declined after leaving their primary jobs. Approximately 31% of respondents had already retired from their main jobs, and many of them re-entered the labor market through temporary, daily, or self-employed positions. Re-employment opportunities were often short-term, non-regular, and low-paying. Men primarily transitioned to self-employment, while women tended to concentrate in low-skilled service sectors such as caregiving, sales, and cleaning. Disparities based on education and region persisted. Social security levels also varied significantly by employment type. The enrollment rates for the National Pension among permanent workers were 73%, for employment insurance 72%, and for severance pay 83%. In contrast, the social insurance enrollment rate for temporary and daily workers remained below 30%. The Korea Employment Information Service diagnosed that re-employment positions often fall outside the protective framework of institutional support. Seniors demonstrated a strong desire to remain in the labor market. An analysis of 747 individuals aged 59 to 92 who participated in the Aging Research Panel from 2014 to 2022 revealed that 68.3%, or 510 individuals, currently held jobs. Over 90% of wage workers, self-employed individuals, and unpaid family workers expressed a desire to continue working. The Korea Employment Information Service interpreted that labor among seniors serves not only as a means of securing income but also as a way to maintain social relationships and identity. However, more than half of the employed seniors reported having no formal employment contracts, and the proportion of self-employed individuals without employees and unpaid family workers was also high, indicating that institutional protections remain weak. Kim Min-jeong, head of the Employment Statistics Survey Team at the Korea Employment Information Service, stated, "Structural disparities based on education and region persist in labor market participation and job quality from youth to seniors. Tailored employment policies that address regional disparities for youth, improve re-employment quality for middle-aged workers, and expand social security for seniors are essential." * This article has been translated by AI. 2026-07-27 15:32:00
  • Yoon Suk Yeol Receives Suspended Sentence in Election Law Case
    Yoon Suk Yeol Receives Suspended Sentence in Election Law Case Yoon Suk Yeol, the former president of South Korea, has been sentenced to 1 year and 6 months in prison, with a 3-year suspended sentence, for violating election laws during the 20th presidential election. If the sentence is upheld, the People Power Party will be required to return 39.7 billion won in election funds received during the campaign.According to Yonhap News Agency, the 21st Criminal Division of the Uijeongbu District Court, led by Judge Jo Soon-pyo, found Yoon guilty of making false statements during a discussion at the Kwanhun Club on December 14, 2021. He denied introducing lawyer Lee Mo, who is associated with the Supreme Prosecutors' Office, to former police chief Yoon Woo-jin.The court also ruled that Yoon was guilty of disseminating false information during an interview at the launch of the Buddhist Leaders Forum on January 17, 2022, where he claimed he was introduced to Jeon Seong-bae, a figure linked to the party, and stated that he had never met Kim Gun-hee, the first lady, with him.If Yoon's sentence is confirmed, the People Power Party will have to return the 39.7 billion won in election funds to the National Election Commission.* This article has been translated by AI. 2026-07-27 15:24:00
  • Labor and Small Business Groups Challenge Minimum Wage Increase
    Labor and Small Business Groups Challenge Minimum Wage Increase Labor and small business groups have both raised objections regarding next year's minimum wage. The labor sector is protesting the exclusion of special employment and platform workers from the protection scope, while small business owners argue that even a 3.7% increase is too burdensome.However, experts suggest that the likelihood of a review is low, as there has been no precedent for objections being accepted since the minimum wage system was implemented.On July 27, the Small Business Association held a press conference near the government complex in Sejong, expressing their intent to challenge the minimum wage decision for next year. The Korean Confederation of Trade Unions also held a press conference in front of the Seoul Regional Employment and Labor Office, marking the first objection since the union's challenge to the 2024 minimum wage three years ago.Earlier, the Minimum Wage Commission decided on July 14 to raise next year's minimum wage by 380 won (3.7%) to 10,700 won per hour. This translates to a monthly amount of 2,236,300 won based on 209 working hours, an increase of 79,420 won from this year.The labor sector's objection stems from the exclusion of minimum wage protections for contract workers. This year, the issue of whether to apply a separate minimum wage for contract workers was raised for the first time at the commission, but it was rejected.The Korean Confederation of Trade Unions argues that delivery riders, parcel delivery drivers, substitute drivers, private tutors, caregivers, and appliance installers, even without formal contracts, work under conditions similar to regular employees. A recent ruling by the Seoul High Court recognizing delivery riders controlled by platform applications as workers under labor law has also been cited as a basis for the objection.Goo Kyo-hyun, head of the Public Transport Workers' Union Riders' Union, stated, "The Minimum Wage Commission is responsible for determining minimum wages, not for deciding who qualifies as a legal worker. We need to revisit the minimum wage for contract workers in light of court rulings and international standards."On the other hand, the business sector claims that the planned increase in the minimum wage exceeds the payment capacity of small businesses. The 3.7% increase is the highest in four years.The Small Business Association estimates that the wage burden per worker will increase by approximately 953,000 won annually due to the minimum wage hike. They note that four out of ten small business owners report that their average monthly operating profit does not reach 2 million won, indicating a low acceptance rate in the field.Additionally, they point out that the total loan balance for self-employed individuals rose to 1,092.9 trillion won by the end of last year, with the delinquency rate nearly tripling to 12.14% over four years.Song Chi-young, president of the Small Business Association, said, "In the face of declining profits and economic downturns, this increase will hasten job cuts among small businesses. We urgently need a review to protect the survival rights of small business owners and prevent a crisis in employment."However, the consensus is that the chances of a review following the objections are slim. According to the Minimum Wage Act, representatives of workers and employers can file objections with the Minister of Labor within ten days of the minimum wage announcement.If the Minister finds the objection valid or recognizes that it is difficult to determine the minimum wage as proposed by the commission, they can request a review from the commission. The final minimum wage will be confirmed and announced by the 5th of the following month.Since the implementation of the minimum wage system in 1988, objections from labor and management groups have been frequent, but the Ministry of Labor has never accepted these objections for a review. There were no objections filed for the minimum wage set for 2025 or the 2026 minimum wage determined by last year's labor-management agreement.Notably, the issue of contract worker applicability raised by the Korean Confederation of Trade Unions was separately voted on and rejected by the commission. Furthermore, public interest representatives have recommended that the commission review the applicability of the system in the second half of this year. Therefore, the government is likely to pursue long-term system improvements in this area.* This article has been translated by AI. 2026-07-27 15:20:00