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  • Demand Shifts Amid Bank Loan Regulations; Shinhyup Limits Online Loans
    Demand Shifts Amid Bank Loan Regulations; Shinhyup Limits Online Loans As major banks tighten household loan management, borrowers struggling to secure funds are turning to other banks with more lending capacity. In response, some financial institutions are beginning to limit the sale of online loan products to manage demand.On July 26, Shinhyup Bank temporarily suspended new sign-ups for its 'Sh Dream Unsecured Loan' product through loan comparison platforms like Toss and Bank Salad. This online product, which offered up to 230 million won in unsecured loans and a maximum of 50 million won for overdraft accounts, was restricted due to anticipated high demand.A Shinhyup Bank official stated, "When applications for online products surge simultaneously through the app, it becomes difficult to manage the limits, so we have halted product exposure on loan comparison platforms. The limits set by household loan management regulations are gradually being exhausted."However, Shinhyup Bank continues to sell loans through its website and app with a daily handling limit. Additionally, some loan products, such as the 'Sh Easy e-Mortgage' with a maximum loan-to-value (LTV) ratio of 70% and the 'Hey Jeonse Fund Loan' available up to 500 million won, have also suspended online applications.This shift in demand to other financial institutions is attributed to major banks having exhausted a significant portion of their annual household loan growth targets while raising lending thresholds. According to the Bank of Korea's economic statistics system, the balance of housing-related loans from non-bank deposit-taking institutions, such as savings banks and mutual finance, increased by 10.5% (14.1 trillion won) to 148.1 trillion won at the end of May compared to the end of last year. The increase in household loans from insurance companies also rose slightly from 900 billion won in May to 1 trillion won in June.Seo Ji-yong, a professor at Sangmyung University, noted, "The decision by Shinhyup Bank to set limits on online loan products is a balloon effect caused by the tightening of loans at major banks, leading demand to shift to other financial institutions. As authorities expand total volume regulations to include mutual finance and savings banks, it is likely that we will see a 'soft' balloon effect where demand shifts rather than a 'strong' balloon effect where it concentrates in one place." 2026-07-26 16:04:00
  • Cortis Surpasses 1 Billion Streams on Spotify Ahead of Debut Anniversary
    Cortis Surpasses 1 Billion Streams on Spotify Ahead of Debut Anniversary The group Cortis has surpassed 1 billion streams on Spotify. As of July 24, Cortis achieved a total of 1,000,060,000 streams on the global audio and music streaming platform Spotify. This figure includes all tracks released to date, including their first two mini-albums and the song "Mention Me" from Sony Pictures Animation's 'GOAT.' After recording 900 million streams on Spotify on July 4, Cortis added another 100 million streams in less than a month. This marks the highest streaming count among boy groups that debuted in the last five years. The achievement is particularly significant given it comes from just two albums and 13 songs. Cortis's monthly listeners on Spotify have exceeded 12.7 million. The largest number of listeners comes from the United States, followed by Indonesia, South Korea, the Philippines, Brazil, and Japan. The title track of their second mini-album, "RedRed," is driving their popularity. Released on April 20, the song has accumulated 160 million streams in about three months. Even after concluding their broadcast activities, it maintains around 1.4 million streams per day. Previous tracks continue to enjoy steady popularity as well. The song "Go!" from their first mini-album has recorded 216 million streams, while "FaSHioN" has surpassed 198 million streams. Chart performance remains strong. "RedRed" has held the top spot on Spotify's 'Weekly Top Songs Korea' chart for 13 consecutive weeks. It has also reached 119th on the 'Top Songs Global' chart weekly and 161st daily, remaining on the chart for 13 weeks and 94 days, respectively. Cortis will continue their activities with offline performances. They are set to take the stage at the Lollapalooza Chicago music festival from July 31 to August 1. Following that, they will embark on their first tour, '2026 Cortis Tour: Put Your Phone Down,' starting in Toronto, Canada, on August 4, covering six cities in North America. They will also hold a concert to celebrate their first anniversary on August 22-23 at Korea University's Hwajeong Gymnasium in Seoul.* This article has been translated by AI. 2026-07-26 16:00:00
  • Developer Eleven Construction Returns to Profit Amid UN Base Project
    Developer Eleven Construction Returns to Profit Amid UN Base Project Eleven Construction, a leading domestic developer focused on the Yongsan UN Command site, has returned to profitability for the first time in three years. The company reported a consolidated net profit exceeding 180 billion won, driven by the performance of its key subsidiary, Yongsan Eleven. However, over 100 billion won in cash flowed out from operating activities. To translate this accounting rebound into real financial improvement, the company must recover funds from office-tel sales and residential rental deposits to reduce its 1.3 trillion won in project financing (PF).According to an audit report disclosed on the Financial Supervisory Service's electronic disclosure system on July 26, Eleven Construction recorded consolidated sales of 407.6 billion won and a net profit of 183.7 billion won last year, marking a return to profit after consecutive losses since 2022.The rebound in performance was largely attributed to Yongsan Eleven, a special purpose company (SPC) responsible for the UN Command site development. Yongsan Eleven recognized sales from office-tel sales last year, generating 216.1 billion won in revenue and a net profit of 133.2 billion won. A significant portion of the consolidated net profit stemmed from the Yongsan project.The net profit also reflected the recognition of deferred tax assets related to carryforward losses. As the potential for taxable income arises, corporate tax expenses decrease, leading to an increase in net profit. While operating profit improved, it is important to note that the entire increase in net profit cannot be viewed as a direct result of cash inflow from operations.Amid a sluggish real estate market and tightening in the PF sector, Eleven Construction has focused its efforts on the UN Command site development rather than expanding into new projects. The company's flagship project, 'The Parkside Seoul,' is a mixed-use development that includes residential units, office-tels, hotels, and commercial facilities on a 44,935 square meter site in Itaewon, Yongsan District, purchased from the Korea Land and Housing Corporation (LH) for 1.05 trillion won in 2017. Hyundai Engineering & Construction is overseeing the construction, which is expected to be completed in 2027.The first test of this strategy was the high-end office-tel 'The Parkside Suite,' which recorded an average subscription competition rate of 1.67 to 1 last year. However, the project's success will depend on the speed of actual contracts and the collection of sales proceeds. Timely receipt of down payments, interim payments, and final payments is crucial for smooth repayment of PF principal and interest and for subsequent construction costs.The company's next major focus is a residential project comprising 420 units. This high-end housing product, primarily featuring larger units, is set to be offered under a private rental scheme in September. The structure involves operating the units as rentals for a period before converting them to sales.By supplying the units as private rentals, the company can set prices according to market conditions and product appeal, avoiding the constraints of price ceilings. However, the immediate cash flow will depend more on the rental deposits collected from tenants than on the future conversion price. The timing of the residential supply and the influx of deposits coincides with the maturity of the PF, making the securing of rental demand a key variable for improving the financial structure.Despite the accounting profit, cash flow remains a concern. Last year, the consolidated cash flow from operating activities recorded a net outflow of 106.7 billion won, marking the third consecutive year of negative cash flow. This indicates that the funds invested in business expenses and construction costs exceeded the cash generated from operations.Inventory assets also exceed 2 trillion won. According to the audit report, unfinished housing amounts to 565.4 billion won, while land holdings total 1.2352 trillion won. Accounts receivable from sales also stand at 160.9 billion won, indicating a lag between recognized sales and actual cash inflow.Consolidated borrowings are approximately 1.7 trillion won, with a debt ratio around 200%. Funds borrowed from related parties have also increased to about 100 billion won. The main PF for the Yongsan development, amounting to 1.3 trillion won, is set to mature in 2027.The speed at which cash generated from the UN Command site is applied to reduce borrowings will significantly impact interest burdens and the capacity for new projects. Delays in collecting final payments from office-tel sales and rental deposits for the residential units could lead to increased financial costs during the maturity extension or refinancing process.Cash recovery is also needed from existing projects outside Yongsan. There are still unsold units and accounts receivable in the 'Parkrest Haenam' project in Jeonnam and the 'Gochon Central Xi' project in Gimpo, Gyeonggi Province. Even if substantial profits are recognized from Yongsan, the overall improvement in cash flow for the company may be limited if funds remain tied up in other projects.Through its focused approach to the UN Command site, Eleven Construction has succeeded in achieving a rebound on its income statement. However, with over 2 trillion won in inventory assets and 1 trillion won in PF remaining, the completion of its recovery will depend on the actual cash inflow rather than just sales and net profit.If the collection of office-tel sales proceeds and residential rental deposits leads to PF repayments and a reduction in borrowings, the UN Command site could remain a flagship project that rescued Eleven Construction from crisis. Conversely, delays in cash recovery could increase the company's exposure to risks tied to the timelines of a single project and the financial market conditions.* This article has been translated by AI. 2026-07-26 15:56:00
  • Trump Orders Halt to Airstrikes Against Iran After 13 Days
    Trump Orders Halt to Airstrikes Against Iran After 13 Days President Donald Trump has ordered U.S. forces to halt airstrikes against Iran, bringing to an end a 13-day campaign of attacks. This decision comes amid concerns about the depletion of missile stockpiles in the Middle East and progress in negotiations through Oman, raising questions about whether the recent military conflict will shift to a diplomatic phase.According to Axios, on July 24, Trump received a report on planned airstrikes from the military but chose not to approve them, instructing that no attacks be carried out. As a result, the airstrikes, which had been ongoing for 13 consecutive days, were stopped.In recent weeks, Trump had approved daily airstrike plans submitted by the military, with attacks typically occurring within hours of approval. While the military continues to prepare plans for resuming airstrikes and large-scale military operations, sources indicate that Trump has not yet given his approval for these actions.Concerns about the depletion of air defense missile stockpiles in the region also played a role in the decision to halt airstrikes. The New York Times reported that on July 24, General Dan Kane, Chairman of the Joint Chiefs of Staff, warned during a private meeting with Trump and his advisors that resuming large-scale military operations against Iran could deplete U.S. interceptors to dangerous levels.Just days prior, Pentagon officials and military commanders believed Trump was likely to approve the first phase of a multi-step bombing campaign against Iran. The Defense Department had also deployed additional military assets, including aerial refueling aircraft, to the Middle East. In an interview with Axios on July 23, Trump stated, "We are considering a larger attack than ever before" and added, "We are fully prepared." However, the military leadership's concerns about further depleting air defense assets, such as Patriot missiles, appear to have led Trump to postpone the bombing plans, according to the New York Times.This order to halt airstrikes came shortly after an Omani negotiating team arrived in Tehran to discuss the reopening of the Strait of Hormuz. A source familiar with the negotiations told Axios that there is a possibility of an agreement between Oman and Iran over the weekend. If an agreement is reached, Trump's acceptance of it could be a key factor in determining whether airstrikes will resume.Trump has also expressed a preference for negotiation over military action. Speaking to reporters on July 24, he said, "A wiser strategy is to negotiate with Iran," adding, "We are talking to them now." During a dinner with White House correspondents that same day, he noted, "I don’t think Iran is ready to negotiate right now, but they are willing to listen." Despite the halt in airstrikes, the U.S. maintains a full maritime blockade against Iran. U.S. Central Command (CENTCOM) announced via social media on July 25 that it had redirected the routes of 12 commercial vessels attempting to breach the blockade and neutralized two vessels that did not comply with orders, while boarding two others to verify compliance with the blockade. 2026-07-26 15:48:00
  • Ukraine Attacks Iranian Vessel in Caspian Sea, One Crew Member Killed
    Ukraine Attacks Iranian Vessel in Caspian Sea, One Crew Member Killed An Iranian vessel was attacked by Ukraine in the Caspian Sea, resulting in the death of one crew member and injuries to another.According to the Financial Times, the Iranian Foreign Ministry reported that an explosion occurred on the Iranian vessel due to the Ukrainian attack early on July 25.The Iranian Foreign Ministry stated, "Iran will not hesitate to defend itself," and called on European nations to hold Ukraine accountable if they are genuinely concerned about the escalation of conflict in the Middle East.Ukraine has also acknowledged attacking a vessel linked to Iran in the Caspian Sea. Ukrainian President Volodymyr Zelenskyy announced on X (formerly Twitter) that they targeted a ship used for transporting military cargo related to Iran and Russian warships.However, it has not been immediately confirmed whether the vessel mentioned by President Zelenskyy is the same one reported by the Iranian Foreign Ministry.Iranian Foreign Minister Abbas Araghchi condemned the attack during a phone call with Josep Borrell, the European Union's High Representative for Foreign Affairs and Security Policy, emphasizing the need for a strong response from the UN Security Council and the EU.This incident comes amid ongoing military confrontations between the U.S. and Iran. Despite a memorandum of understanding (MOU) with the U.S. being effectively rendered void, Iran reaffirmed its stance of not intervening in the Russia-Ukraine war.Ukraine has criticized Iran for supplying attack drones to Russia, alleging that Iran supports the war. Iran has denied these allegations or claimed that any transactions occurred before the outbreak of the war.* This article has been translated by AI. 2026-07-26 15:40:00
  • Yen Hits 40-Year Low as Won Strengthens Amid Diverging Trends
    Yen Hits 40-Year Low as Won Strengthens Amid Diverging Trends The value of the yen has fallen to its lowest level in nearly 40 years, while the won continues to strengthen, leading to a two-year low in the won-yen exchange rate. As the decoupling between the won and yen deepens, attention is focused on its impact on domestic companies' price competitiveness and the financial market.According to financial sources on July 24, the yen's exchange rate against the U.S. dollar was recorded at 163.785 yen, up 0.71 yen from the previous trading day as of 3:30 PM.On July 23, the yen reached as high as 163.986 yen during trading, marking its highest level since December 1986, a span of 39 years and 7 months. Considering that the yen-dollar exchange rate was around 75 yen in 2011, the yen's value has effectively halved in 15 years.Amid rising international oil prices due to geopolitical risks surrounding Iran, assessments indicate that the Japanese government's response has remained limited to verbal interventions, failing to curb the yen's decline. Concerns over deteriorating fiscal health due to the Takaiichi administration's expansionary fiscal policy have increased, and despite the Bank of Japan raising its policy interest rate to 1% last month, the gap with the U.S. benchmark rate (3.50-3.75%) remains significant, sustaining pressure on the yen.Kim Yu-mi, a researcher at Kiwoom Securities, explained, "Despite the Japanese authorities' caution regarding foreign exchange market interventions, expectations persist that the interest rate gap with the U.S. will remain for the time being, leading to a weaker yen against the dollar."In contrast, the won is showing strength. On July 24, the won-dollar exchange rate fell to 1,466.6 won, marking its lowest level in about two and a half months since May 7 (1,454.0 won) based on weekly closing prices.Typically, the won and yen move in the same direction, and until last month, both currencies exhibited weakness. However, this month, a clear decoupling phenomenon has emerged. In fact, the won has shown the strongest performance among the G20 currencies. From the beginning of this month until July 24, the won's value against the dollar has risen by 6.24%, the highest increase among major currencies.In South Korea, a significant inflow of dollars due to SK Hynix's American Depositary Receipt (ADR) listing is driving the won's strength. SK Hynix has been gradually converting approximately $26.5 billion raised from its Nasdaq listing and bringing it into the country, which has also led to an increase in dollar selling by domestic exporters.As the won strengthens and the yen weakens, the won-yen exchange rate fell to 889.83 won per 100 yen on July 24, the lowest level in two years since July 2024. This has raised concerns that the increase in demand for yen tech and travel to Japan could widen the service account deficit, potentially hindering domestic recovery.Looking ahead, fluctuations in the yen's value could have significant repercussions in international financial markets. If the yen continues to weaken, it may trigger a rise in Japanese government bond yields, impacting the global bond market.Park Sang-hyun, a researcher at iM Securities, stated, "While the super weak yen phenomenon may not immediately pose a threat to the financial market, increased volatility in the yen-dollar exchange rate could burden both the financial and asset markets. Further weakness in the yen could lead to rising Japanese government bond yields, which may also exert pressure on U.S. and global bond yields."He added, "Conversely, if the Japanese government intervenes directly to prevent the yen's decline, a rapid strengthening of the yen could alter global capital flows, increasing asset price volatility."* This article has been translated by AI. 2026-07-26 15:32:00
  • Ruling Party Criticizes Opposition Leader for Election Fraud Claims
    Ruling Party Criticizes Opposition Leader for Election Fraud Claims The Democratic Party criticized Jang Dong-hyuk, leader of the People Power Party, on July 26, stating that his claims of election fraud have gone too far. The party urged him to cease his allegations and cooperate in expediting a recount and the processing of the Special Investigation Act.Kim Seong-hwa, the party's floor spokesperson, stated in a written briefing that Jang had recently visited Daegu and publicly spread unfounded claims about the ability to manipulate voter turnout and vote counts. He also accused Jang of framing discussions about electronic voting for overseas citizens, proposed by President Lee Jae-myung, as part of a 'fraudulent election' narrative.Kim expressed disbelief that even members of the People Power Party are distancing themselves from the baseless conspiracy theories being propagated by their leader.He emphasized that while a thorough investigation and accountability for the Election Commission's false reporting of voter turnout and the shortage of ballots are warranted, there is a clear distinction between legitimate demands for transparency and Jang's unfounded claims that undermine democracy.Kim issued a stern warning to Jang, stating, 'If you genuinely wish to protect the public's voting rights, immediately stop your irresponsible rhetoric and cooperate with the National Assembly's schedule. The Democratic Party will do its utmost to clarify the full extent of the situation caused by the Election Commission's overall incompetence and negligence through a public recount and the processing of the Special Investigation Act by the end of July.' 2026-07-26 15:16:00
  • Song Young-gil: We Cannot Entrust the Party to Those Who Undermine Lee Jae-myung
    Song Young-gil: We Cannot Entrust the Party to Those Who Undermine Lee Jae-myung Song Young-gil, a candidate for the leadership of the Democratic Party of Korea, stated on July 26, "We cannot entrust the party to those who undermine President Lee Jae-myung." This remark appears to be a direct criticism of former party leader Jung Cheong-rae amid rising tensions within the party.In a Facebook post, Song emphasized, "Judicial reform and prosecutorial reform do not belong to any one candidate. They are promises made by all three candidates and a mandate from the party members. No matter who becomes the party leader, reforms will be carried out."He further asserted, "President Lee is a pillar of the Democratic Party. If that pillar collapses, the reforms and the administration will also fall apart, just like a roof that collapses when its support is gone."Additionally, he warned, "Reform that merely shouts slogans while shaking the president may receive applause from certain politicians, but it will ultimately lead to defeat in the general elections and a change of government."Song declared, "I have maintained my loyalty to the president until the end. Please protect President Lee, the pillar of our party. I will not be a leader who shakes the president but rather a leader who firmly supports that pillar to safeguard the party."Meanwhile, Song has consistently pointed out issues related to Jung Cheong-rae, who has been embroiled in allegations of conflict. In the upcoming party convention, Song, along with former Prime Minister Kim Min-seok, who is aligned with the pro-Lee faction, and Jung, who is associated with the pro-Cheong faction, are competing for the party leadership. Jung has been appealing for support, vowing to protect President Lee, while Song and Kim have publicly criticized him, escalating the conflict.* This article has been translated by AI. 2026-07-26 15:08:00
  • Top Five Financial Groups Report Record Earnings Amid Stock Market Rally
    Top Five Financial Groups Report Record Earnings Amid Stock Market Rally The top five financial groups in South Korea reported a record net profit of over 13 trillion won in the first half of the year, driven by a booming stock market that significantly boosted non-interest income from their securities affiliates. However, the competitiveness of non-bank affiliates emerged as a key factor in determining growth rates, leading to mixed results among the holding companies.According to the financial sector on July 26, the combined net profit of KB, Shinhan, Hana, Woori, and NH Financial in the first half of the year was 13.1183 trillion won, a 9.7% increase from the same period last year (11.9541 trillion won), marking the highest figure on record for a half-year period.By individual holding company, KB Financial led with a net profit of 3.8846 trillion won (+13.1%). It was followed by Shinhan Financial with 3.4427 trillion won (+13.3%), Hana Financial with 2.4029 trillion won (+4.4%), NH Financial with 1.7791 trillion won (+9.2%), and Woori Financial with 1.6090 trillion won (+3.7%). All but Woori Financial set new half-year records.A notable change in this year's first-half results was the increased significance of the non-bank sector. The combined non-interest income of the five financial groups reached a record 10.7776 trillion won, a 27.6% increase compared to the previous year. The surge in commission income from the capital markets during the stock market boom was a major driver of overall performance.The fortunes of the holding companies varied based on the performance of their non-bank affiliates. The results from the securities sector increasingly influenced the overall profit growth of the financial groups, with Hana and Woori Financial, which have relatively smaller securities affiliates, showing less improvement compared to KB and Shinhan Financial.KB Financial, which recorded the highest net profit in the first half, saw the contribution of its non-bank affiliates rise to 44%. KB Securities reported a net profit of 796.3 billion won, accounting for 21% of the group's total net profit.Shinhan Financial also benefited from Shinhan Investment Corp., which posted a net profit of 577.7 billion won, a 123% increase from the previous year. The contribution of the non-bank sector to Shinhan's profits rose to about 35%. NH Financial also saw its non-bank contribution increase to 39.7%, with NH Investment & Securities reporting a net profit of 965.2 billion won in the first half, allowing NH Financial to maintain its position as the fourth-largest financial group by net profit, surpassing Woori Financial.In contrast, Hana Financial and Woori Financial struggled to overcome the size disparity of their non-bank affiliates, resulting in relatively modest growth. Hana Securities reported a net profit of 273.1 billion won, a 155.7% increase, but its absolute size remained small compared to the leading groups. Woori Investment & Securities also saw a 47% increase in net profit, but it only reached 24.7 billion won.Analysts in the financial sector noted that the performance of non-bank affiliates has become increasingly crucial in determining the growth rates and profitability of the holding companies.A financial sector official stated, "Amid household loan regulations, the roles of securities and asset management non-bank affiliates are becoming more significant in group performance. The competitiveness of the capital markets will continue to be a key factor influencing the profitability of financial holding companies in the second half of the year." 2026-07-26 15:08:00
  • Retail Investors Bet 450 Billion Won on Leveraged ETFs Ahead of New Regulations
    Retail Investors Bet 450 Billion Won on Leveraged ETFs Ahead of New Regulations Personal investors have significantly increased their purchases of single stock leveraged exchange-traded funds (ETFs) ahead of new regulations from financial authorities. This surge in buying is interpreted as a response to the upcoming increase in the basic deposit requirement.According to the Korea Exchange and Koscom CHECK, on July 24, individual investors net purchased 453.8 billion won worth of 14 single stock leveraged ETFs related to Samsung Electronics and SK Hynix. They bought 103.8 billion won in Samsung Electronics-related products and 350 billion won in SK Hynix-related products.Excluding the first trading day after the announcement of supplementary measures on July 20, individual investors had net sold for three consecutive days from July 21 to 23. However, on July 24, they shifted back to net buying with a large-scale bargain purchase. Consequently, from July 20 to 24, they recorded a total net purchase of 115.6 billion won.Analysts suggest that this buying trend is largely driven by bargain hunting following significant price drops. On July 24, Samsung Electronics and SK Hynix saw their stock prices fall by 7% to 8%, leading to a 15% to 16% drop in major single stock leveraged products within a day. Most product prices have plummeted from their listing price of 20,000 won to around 11,000 to 12,000 won, effectively halving their value. With the basic deposit requirement set to increase from 10 million won to 30 million won starting July 31, there is also a perceived rush to increase holdings before the regulation takes effect.Financial authorities view single stock leveraged products as a significant factor contributing to market volatility, particularly surrounding Samsung Electronics and SK Hynix, and are moving to tighten regulations. Starting July 31, the basic deposit for single stock leveraged ETFs and ETNs will rise to 30 million won and will only be recognized in cash. Additionally, measures to strengthen liquidity provider (LP) management responsibilities and expand trading unit sizes will be implemented sequentially.Despite the impending regulations, market volatility remains high. According to the Korea Exchange, the average daily volatility of the KOSPI from July 1 to 24 was 6.23%, surpassing the previous monthly record of 6.11% set during the global financial crisis in October 2008. Last week, the average daily volatility was 4.98%, down from 6.75% the previous week, but still at a high level. The KOSPI and KOSDAQ markets experienced sidecar interventions four and three times, respectively, last week.Han Ji-young, a researcher at Kiwoom Securities, noted, "The measures do not include reductions in leverage ratios or restrictions on new product listings, so their impact may be limited. For the time being, market direction will likely be determined more by semiconductor industry conditions and corporate earnings than by supply and demand issues related to leverage." 2026-07-26 15:04:00