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  • Court Orders Choi Tae-won to Pay 944 Billion Won to Noh So-young
    Court Orders Choi Tae-won to Pay 944 Billion Won to Noh So-young A South Korean court has ruled that Choi Tae-won, chairman of SK Group, must pay 944 billion won to Noh So-young, director of the Art Center Nabi. This ruling has raised expectations regarding the potential success fees for Noh's legal team.The Seoul High Court's Family Division, presided over by Judge Lee Seung-joo, announced on July 24 that Choi is obligated to pay Noh the specified amount as part of their property division case.Legal experts are closely watching the success fees for Noh's legal team, as they could range from 1% to 7% of the total amount due to the high value of the lawsuit.If the ruling is upheld by the Supreme Court, Noh's lawyers could receive between 1% (approximately 9.4 billion won) and 7% (around 66 billion won) as their success fee, although the exact amount will depend on the specific terms of their agreement. Currently, Noh's legal team is composed of the law firms Haegwang, Hannuri, and Onsesang.This ruling comes nearly nine years after Choi and Noh's marriage, which began in September 1998, ended in separation. In 2015, Choi publicly acknowledged the existence of an extramarital child.Noh filed for divorce mediation in July 2017, but the process failed, leading to formal litigation in February 2018. Noh subsequently filed a counterclaim in 2019, indicating her willingness to proceed with the divorce.In a previous ruling, the first court ordered Choi to pay Noh 100 million won in alimony and 665 million won in property division. The second court, however, recognized Noh's contributions to the growth of SK Group, which included a 30 billion won slush fund linked to former President Roh Tae-woo, and awarded her 200 million won in alimony and 1.38 trillion won in property division.However, in October of last year, the Supreme Court upheld the 200 million won alimony but ruled that the 30 billion won slush fund could not be considered illegal funds attributable to Noh's contributions, sending the case back to the Seoul High Court.The appellate court held its first hearing on January 9 and, after three months, attempted mediation. However, disagreements over key issues, including the division of SK shares, led to the failure of mediation, prompting the court to conclude the hearing and issue its ruling.If either party contests the ruling, they may appeal to the Supreme Court, indicating that further legal proceedings could follow.* This article has been translated by AI. 2026-07-24 18:28:00
  • Illegal Drugs Detected in Wastewater: 31 Substances Found, Including 8 Club Drugs in Yongsan
    Illegal Drugs Detected in Wastewater: 31 Substances Found, Including 8 Club Drugs in Yongsan Last year, 31 types of illegal drugs, including methamphetamine, synthetic cannabinoids, and ketamine, were detected in wastewater across the country. The Ministry of Food and Drug Safety expanded its analysis from a maximum of 22 substances to 243, revealing the use of new drugs and so-called 'club drugs' that had previously gone undetected.On July 24, the Ministry announced the results of the '2025 Illegal Drug Usage Survey.' The analysis was conducted on wastewater samples collected from 34 sewage treatment plants across 17 cities and provinces, as well as from densely populated areas such as Yongsan in Seoul, Incheon, Gwangju, and Jeonnam. The upper drainage basin refers to an intermediate collection area where wastewater from various regions converges before entering treatment plants.The survey found 31 types of illegal drugs, including methamphetamine, and 25 types of medical narcotics, such as zolpidem, in the wastewater samples. Among the illegal drugs, 28 were classified as controlled substances under the Narcotics Control Act, while three were temporary narcotics. Notably, synthetic cannabinoids accounted for the largest share, with 21 types detected.A significant aspect of this survey was the expanded scope of analysis. Since last year, the Ministry has increased the number of detectable drugs to 243 and broadened the survey methodology from focusing solely on sewage treatment plants to include upper drainage basins and specific densely populated areas. As a result, the number of detected illegal drugs rose sharply compared to the previous year, which recorded only seven types.Methamphetamine was found at all survey sites. The estimated daily usage per 1,000 residents at sewage treatment plants was 85 mg, which is lower than levels in the United States (2,109 mg), Australia (1,518 mg), and the Czech Republic (1,175 mg). However, when adjusted for population, it suggests that approximately one in every 10,000 people is using methamphetamine, indicating a widespread issue nationwide.By sampling location, 11 types of illegal drugs were confirmed at sewage treatment plants, 18 types in upper drainage basins, and eight types in densely populated areas. Notably, during the Halloween period last October, wastewater collected near entertainment venues in Yongsan revealed multiple club drugs, including cocaine, MDMA (ecstasy), and ketamine. These substances were not detected in general sewage treatment plants or upper drainage basins.Considering that only four types of drugs, including club drugs, were detected during weekend surveys in the same area, it suggests that drug usage patterns can vary significantly depending on specific times and locations. There is a possibility that drug distribution and usage surged during events attracting foreign visitors and young people.Based on the survey results, the Ministry plans to expand its monitoring scope. Next year, the number of upper drainage basin survey sites will increase from three to six, and the number of densely populated area surveys will rise from one to three. If illegal drugs are detected during the survey process, the Ministry will promptly provide information to law enforcement and local governments for enforcement actions.Additionally, substances suspected to be new drugs will undergo further analysis for rapid classification as temporary narcotics. A Ministry official stated, "Wastewater-based epidemiological surveys are a means to quickly identify regional drug usage trends," adding that they aim to enhance the utility of these findings for enforcement and policy development.* This article has been translated by AI. 2026-07-24 18:04:00
  • SK Groups Chey Tae-won and NVIDIAs Jensen Huang Discuss AI Semiconductor Collaboration in the U.S.
    SK Group's Chey Tae-won and NVIDIA's Jensen Huang Discuss AI Semiconductor Collaboration in the U.S. Chey Tae-won, chairman of SK Group, and Jensen Huang, CEO of NVIDIA, met in the United States to discuss collaboration in artificial intelligence semiconductors, data centers, and physical AI.NVIDIA announced on July 24 that the two leaders dined in Woodside, California, a day before the San Francisco AI Summit. Officials from SK hynix, SK Telecom, and NVIDIA also attended the meeting.The two sides reviewed their ongoing collaboration in AI semiconductors, including high-bandwidth memory (HBM), data center infrastructure, and robotics.SK hynix supplies HBM to NVIDIA. Last month, the companies agreed to jointly develop memory for NVIDIA platforms used in AI infrastructure, personal AI, and physical AI.SK Telecom is also working to build AI infrastructure to support physical AI and robotics services. This meeting increased the likelihood that the collaboration between SK and NVIDIA will expand from memory supply to AI infrastructure and services.* This article has been translated by AI. 2026-07-24 18:00:00
  • Extreme Heat Continues Across South Korea This Weekend
    Extreme Heat Continues Across South Korea This Weekend On Saturday, July 25, extreme heat and tropical nights will persist across most of South Korea, with rain expected primarily in the Seoul metropolitan area and Gangwon Province. Showers are also forecast for Chungcheong Province and Jeju Island.According to the Korea Meteorological Administration on July 24, heat advisories are in effect for most regions, with the perceived temperature rising to around 33 degrees Celsius. In particular, southern Gyeonggi Province, eastern Gangwon, and parts of Chungcheong, Jeolla, and Gyeongsang provinces, as well as Jeju Island, are expected to see perceived temperatures soar to around 35 degrees Celsius.In areas under a severe heat warning, such as the southern coastal region of North Gyeongsang Province (Gyeongju and Pohang), the maximum perceived temperature could reach 38 degrees Celsius, with actual temperatures exceeding 39 degrees Celsius, necessitating careful health management. Tropical nights, where temperatures do not drop below 25 degrees Celsius, are also expected in various locations nationwide.Rain and showers are anticipated in some areas. While rain is expected in the Seoul metropolitan area and Gangwon Province, many places may experience a lull in precipitation.Expected rainfall amounts are as follows: 10 to 60 mm in northern Gyeonggi, the western five islands, northern inland and mountainous areas of Gangwon; 5 to 40 mm in Seoul, Incheon, southern Gyeonggi, and central and southern inland and mountainous areas of Gangwon. In Chungcheong Province (5 to 40 mm) and Jeju Island (5 to 10 mm), showers accompanied by gusty winds and thunder are expected from morning to evening.Morning low temperatures are forecasted to range from 22 to 26 degrees Celsius, while daytime highs are expected to reach between 29 and 37 degrees Celsius.In major regions, morning low temperatures are predicted to be: 26 degrees in Seoul, 26 degrees in Incheon, 25 degrees in Suwon, 24 degrees in Chuncheon, 25 degrees in Gangneung, 24 degrees in Daejeon, 25 degrees in Daegu, 25 degrees in Busan, and 27 degrees in Jeju.Daytime high temperatures are expected to be: 32 degrees in Seoul, 30 degrees in Incheon, 30 degrees in Chuncheon, 35 degrees in Gangneung, 33 degrees in Cheongju, 32 degrees in Daejeon, 33 degrees in Jeonju, 34 degrees in Gwangju, 35 degrees in Daegu, 37 degrees in Pohang, 32 degrees in Busan, and 34 degrees in Jeju.Fine dust levels are expected to be at a 'good' level across all regions due to smooth atmospheric circulation.* This article has been translated by AI. 2026-07-24 18:00:00
  • CNN: Despite AI Boom, Chey Tae-won’s Ex-Wife Receives Limited Asset Division
    CNN: Despite AI Boom, Chey Tae-won’s Ex-Wife Receives Limited Asset Division Despite a surge in SK Hynix's corporate value due to the AI boom, this increase was not reflected in the asset division between Chey Tae-won, chairman of SK Group, and Noh So-young, director of the Art Center Nabi. CNN reported that the AI boom did not alter the outcome of what has been termed the 'divorce of the century.'On July 24, the Seoul High Court ruled that Chey must pay Noh 944 billion won (approximately $644 million) in asset division. This amount falls significantly short of what Noh had requested.The central issue in the lawsuit was the timing of the asset valuation. Noh's side argued that the valuation should be based on 2026, when the corporate value of SK Group had significantly increased due to the AI boom. SK Hynix, a subsidiary of SK Group, emerged as a major beneficiary of the soaring demand for AI semiconductors, leading to a substantial rise in the group's asset value.However, the court set the valuation date as 2024, when the appeal process concluded, prior to the fivefold increase in SK Hynix's stock price driven by AI investments. Consequently, the rise in corporate value attributed to AI was not included in the asset division.CNN explained that this ruling extends last year's Supreme Court decision, which rejected claims that former President Roh Tae-woo's financial support contributed to SK Group's growth, leading to the annulment of a previous asset division ruling of 1.38 trillion won. As a result, the Seoul High Court determined that Noh's share of the asset division would be one-third, while Chey would receive two-thirds.Chey and Noh were married in 1988 at the Blue House, a ceremony dubbed 'the wedding of the century.' However, Chey announced the end of their marriage in 2015 after revealing he had a child with another woman, leading to a protracted legal battle that has lasted over a decade and is often referred to as 'the divorce of the century.'CNN noted that when Chey disclosed the divorce in 2015, SK Hynix's stock was around 33,000 won, but the company surpassed a $1 trillion valuation in May due to explosive growth in AI semiconductor demand. Additionally, this month, it raised $26.5 billion, achieving the largest IPO by a foreign company in U.S. stock market history, highlighting the company's elevated status.Furthermore, CNN remarked, 'The AI boom has transformed the memory semiconductor industry into one of the hottest investment sectors globally,' and emphasized that this case illustrates that the substantial increase in corporate value generated by AI does not automatically influence all legal disputes.* This article has been translated by AI. 2026-07-24 17:44:00
  • Korean shipbuilders expand US partnerships in $150B cooperation push
    Korean shipbuilders expand US partnerships in $150B cooperation push SEOUL, July 24 (AJP) - South Korea’s three major shipbuilders are expanding partnerships with U.S. companies in naval ship design, smart shipyards, workforce training and supply chains, as Seoul moves to accelerate a $150 billion shipbuilding cooperation package with Washington. The moves follow the opening of the Korea-U.S. Shipbuilding Partnership Center in Washington, D.C., this week. The center is expected to serve as a key platform for Korea’s participation in efforts to rebuild the U.S. shipbuilding industry. Hanwha Ocean signed a professional services contract with Leidos Gibbs & Cox, a U.S. naval ship design firm, to jointly design a global strategic sealift vessel. The vessel is a dual-use ship designed for commercial logistics in peacetime and rapid transport of military supplies in a contingency. Hanwha Ocean also signed separate agreements on workforce training and supply chain development with U.S. partners. HD Korea Shipbuilding & Offshore Engineering signed a contract with Siemens Digital Industries Software to introduce a next-generation marine platform that connects ship design, production, supply chain management, quality control and maintenance through a single 3D data-based system. The company also plans to build a virtual shipyard and develop a “physical AI” shipyard where robots and autonomous production equipment carry out parts of the shipbuilding process. Samsung Heavy Industries received approval in principle from the American Bureau of Shipping for a 12,000-cubic-meter LNG bunkering vessel jointly developed with Conrad Shipyard. The company also agreed to cooperate with U.S. unmanned surface vessel startup Saronic Technologies on autonomous navigation, AI software and automated shipyard processes. Samsung Heavy Industries also signed an agreement with Vigor Marine Group to establish a training center for welding and painting workers and plans to work with U.S. universities on virtual training systems for shipbuilding workers. Industry officials expect Korea-U.S. shipbuilding cooperation to expand further as Korean shipbuilders combine their construction technologies and productivity with U.S. production bases. 2026-07-24 17:38:36
  • New Balance Halts Sales of T-Shirt Featuring Upside-Down Taeguk Pattern
    New Balance Halts Sales of T-Shirt Featuring Upside-Down Taeguk Pattern Eland World’s fashion brand New Balance has officially apologized and halted both online and offline sales of a T-shirt that misrepresented the Taeguk pattern after facing backlash. On July 24, New Balance issued a statement on its official website, saying, "We sincerely apologize for causing concern to many due to the Taeguk pattern design T-shirt we released. We immediately suspended all online and offline sales of the product upon recognizing the issue." The controversial item is part of New Balance's 'NB Seoul Collection' and is called the 'UNI NB Geon-Gon-Gam-Ri Exclusive Short-Sleeve T-Shirt.' It was designed to promote the appeal of Korea and Seoul to both domestic and international customers, including foreign tourists. New Balance emphasized, "There was no intention to convey any political or ideological message during the design and production process. We want to clarify that this product was not created to support or oppose any specific political stance or group." However, the company acknowledged, "Regardless of intent, we did not handle the national symbol carefully, and we take the disappointment and concerns of many seriously. We accept responsibility for not adequately considering the meaning of the design and the various interpretations it could evoke among customers." For consumers who have already purchased the product, the company announced it would provide full refunds regardless of the purchase method. Customers can contact their nearest New Balance store or the official website for prompt assistance. New Balance also promised to implement stricter review and verification processes during the planning and production stages when utilizing national symbols and elements with historical and cultural significance. The company stated it would reassess its internal design review system to prevent similar incidents from occurring in the future. Earlier, major online communities pointed out that the red and blue positions of the Taeguk pattern on the T-shirt appeared reversed compared to the standard Taeguk flag, and the Geon-Gon-Gam-Ri was depicted in a manner inconsistent with the official arrangement of the flag. Social media saw a surge of posts criticizing the product and calling for a boycott. Seok Kyung-deok, a professor at Sungshin Women's University, noted on social media, "New Balance is embroiled in controversy for depicting an 'incorrect Taeguk flag' on its T-shirt. Based on reports from netizens, it has been confirmed that the Taeguk pattern on the New Balance T-shirt was designed in reverse compared to the actual flag." He added, "During the North Central America World Cup, a Shake Shack in Abu Dhabi, UAE, faced backlash for providing World Cup merchandise featuring an incorrect Taeguk flag. It is unacceptable for a global company to continuously use a flawed Taeguk flag in its products." He concluded, "A true global company should first possess the basic manners of understanding the fundamental information about the countries in which it operates."* This article has been translated by AI. 2026-07-24 17:36:00
  • Japan to Cut Diabetes Drug Prices, Increasing Cosmetic Prescriptions?
    Japan to Cut Diabetes Drug Prices, Increasing Cosmetic Prescriptions? Japan will reduce the price of the diabetes medication 'Mounjaro' by 25% starting in August. While this will lessen the financial burden on diabetes patients, the Nihon Keizai Shimbun reports that prescriptions for Mounjaro for cosmetic and weight loss purposes may increase.Mounjaro, developed by Eli Lilly, is a treatment for type 2 diabetes that was approved in Japan in 2022. It mimics the action of the gut hormone incretin to suppress appetite and lower blood sugar levels. Its weight loss effects have led to increased use among young women for cosmetic purposes, representing an 'off-label use' of a drug approved for diabetes treatment.In Japan, such off-label prescriptions are recognized at the discretion of medical professionals. However, public health insurance does not cover these prescriptions, meaning patients must bear the full cost, similar to non-covered treatments in South Korea. The legal basis for direct regulation of off-label prescriptions by administrative authorities is also limited.Despite the existence of separate obesity treatments with the same active ingredient, Mounjaro is widely prescribed in cosmetic settings. Eli Lilly also sells an obesity treatment called 'Zepbound,' which contains the same active ingredient, but it is subject to specific conditions for prescription by medical institutions under the Ministry of Health, Labour and Welfare's optimal use guidelines. Mounjaro does not have such restrictions, and its wholesale price is lower than that of Zepbound.So, how much of the Mounjaro sold in Japan is prescribed for cosmetic and weight loss purposes? While exact figures are not publicly available, sales statistics provide a rough outline. According to the U.S. research firm IQVIA, Mounjaro's sales in Japan from October to December last year amounted to approximately 38.8 billion yen (about $345 million), making it the third highest-selling medical drug. This averages to about 13 billion yen per month. In contrast, estimates based on the National Database (NDB) of the Ministry of Health, Labour and Welfare, which only accounts for insurance-covered treatments, suggest a monthly sales figure of about 8.3 billion to 12.5 billion yen. The Nihon Keizai Shimbun estimates that the sales for off-label use could reach up to 5 billion yen per month when considering the differences in these statistics.The growth of Mounjaro's off-label market can be attributed to Japan's online medical consultation structure, which allows patients to complete consultations, prescriptions, and deliveries via smartphone without visiting medical institutions or undergoing in-person examinations. The process is convenient and cost-effective. The online medical service 'Diet Beauty' advertises Mounjaro prescriptions starting at 18,000 yen per month. For medical institutions, it is easier to enter the market by providing online prescriptions without significant capital investment. The beauty medical market in Japan is also rapidly expanding, with the Yano Research Institute reporting that its size has increased by about 1.6 times since 2020, reaching 631 billion yen in 2024.In response to the surge in Mounjaro sales, the Japanese government has decided to cut the drug's price by 25% starting in August. This decision follows the application of a 'sustainability special price adjustment' rule, which reduces prices when the sales of insured drugs exceed expectations. While this aims to alleviate the burden on diabetes patients and health insurance finances, it may have the opposite effect in the cosmetic off-label market.Concerns Over Price Reduction Side EffectsThe issue is that the effects of the price reduction will not be limited to insured treatments. Pharmaceuticals are supplied from manufacturers to wholesalers and then to medical institutions. Wholesalers do not distinguish whether Mounjaro is used for diabetes treatment under insurance or for cosmetic purposes in off-label use. If the price decreases, the purchase price for cosmetic clinics may also drop. Hiroaki Mamiya, an associate professor at Ritsumeikan University, warns that the price reduction intended to lower medical costs could inadvertently encourage the use of Mounjaro for cosmetic purposes in the off-label market. If clinics pass on the price drop to patients, accessibility will increase, and if they maintain existing prices, profitability will improve, incentivizing expanded prescriptions.In practice, there have already been reports of side effects. A gastroenterologist operating a clinic in Tokyo treated three young female patients who complained of bloating and nausea. Endoscopic examinations revealed that all three had food from the previous evening still in their stomachs. Mounjaro has a known effect of slowing gastrointestinal motility. The doctor believes that all three cases are related to Mounjaro use.The side effects are not trivial. Nausea and lethargy can occur, as well as severe side effects like acute pancreatitis. The effects of long-term use in healthy individuals, as opposed to diabetes patients, are still unknown. The doctor cautioned, 'Suppressing appetite with medication can lead to eating disorders.' The Ministry of Health, Labour and Welfare issued a notice on June 16 requesting medical institutions to ensure appropriate use.While the side effects themselves are concerning, another issue is who will bear the treatment costs. Patients prescribed Mounjaro through off-label use must pay the full price, but treatment for side effects may be covered by health insurance. While the price reduction may increase profits for cosmetic clinics, the costs of treating health complications could fall on public insurance, potentially creating a new burden from a measure intended to reduce medical expenses. The doctor pointed out, 'It is insufficient for the Ministry of Health, Labour and Welfare to merely issue a notice for appropriate use. Without specific sanctions against doctors who prescribe inappropriately, the trend of cosmetic prescriptions will not decrease.'South Korea's situation is different. The Ministry of Health and Welfare plans to include obesity treatments in the list of medications restricted to non-face-to-face prescriptions starting in December 2024, making it unlikely that Japan's online structure, which allows consultations, prescriptions, and deliveries to be completed online, will spread. However, the trend of increasing off-label prescriptions for cosmetic purposes is not unique to Japan. The paradox of policies aimed at lowering drug prices encouraging misuse and shifting the costs of side effect treatments to public insurance is not just a Japanese issue.* This article has been translated by AI. 2026-07-24 17:36:00
  • KOSPI leads Asian retreat on oil jitters, capping sidecar-ridden week
    KOSPI leads Asian retreat on oil jitters, capping sidecar-ridden week SEOUL, July 24 (AJP)— South Korean stocks suffered another sharp selloff Friday as surging oil prices driven by escalating Middle East tensions and mounting interest-rate concerns fueled broad risk aversion, sending both the KOSPI and KOSDAQ into sell-side sidecars for a fifth consecutive trading session. The benchmark KOSPI closed at 6,690.62, down 5.72 percent, and the junior KOSDAQ fell 5.32 percent, to 748.22, as foreign and institutional investors accelerated selling despite heavy buying by retail investors. The plunge followed another weak session on Wall Street overnight, where technology shares came under pressure and rising oil prices added to concerns over the global inflation outlook. Samsung Electronics and SK hynix bore the brunt of the selloff as foreign investors rapidly unwound positions in the two semiconductor heavyweights. Samsung Electronics tumbled 7.59 percent to 249,500 won, while SK hynix dropped 8.34 percent to 1,759,000 won. Foreign investors dumped a net 1.76 trillion won worth of SK hynix shares and 873 billion won of Samsung Electronics, while institutions also emerged as the largest sellers of both companies, offloading 867.3 billion won and 858.8 billion won, respectively. The SK Group was also in focus after the Seoul High Court largely upheld its revised divorce ruling ordering Chairman Chey Tae-won to pay former wife Roh Soh-yeong 944 billion won in the property settlement. SK Square fell 9.17 percent amid the broader market selloff. Selling spread across other large-cap technology and cyclical names. Samsung Electronics preferred shares lost 7.33 percent to 177,100 won, Samsung Electro-Mechanics fell 8.43 percent to 1,326,000 won, Hyundai Motor declined 7.18 percent to 401,000 won, and LG Energy Solution slipped 5.32 percent to 329,500 won. Financial shares also weakened, with Samsung Life Insurance falling 3.49 percent and KB Financial losing 2.72 percent, while Samsung C&T declined 5.00 percent. Among industrials, HD Hyundai Heavy Industries dropped 2.51 percent, and Kia slumped 12.88 percent, making it one of the day's biggest losers among blue chips. Defensive buying was limited. Samsung Biologics climbed 10.08 percent to 1,518,000 won, while Hanwha Aerospace gained 2.19 percent and Shinhan Financial edged up 0.58 percent. The weakness was equally pronounced on the junior KOSDAQ market. Among heavyweights, HLB was the lone gainer, rising 4.33 percent to 31,300 won. Biotechnology company Alteogen slipped 1.96 percent to 300,500 won, while battery materials makers EcoPro and EcoPro BM fell 7.35 percent and 8.38 percent, respectively. Drug developer LegoChem Biosciences tumbled 17.62 percent, semiconductor equipment makers Jusung Engineering and PSK dropped 13.97 percent and 8.34 percent, respectively, while semiconductor equipment supplier Wonik IPS lost 11.30 percent. Precision parts maker Leeno Industrial declined 7.71 percent and biotech firm ABL Bio edged down 2.56 percent. The Korean won, however, was broadly steady, with the dollar trading at 1,464.50 won, compared with 1,466.8 won in the previous session. The market rout came as investors grappled with a deteriorating macroeconomic outlook. Brent crude climbed back toward $100 a barrel and the yield on the benchmark U.S. 10-year Treasury note rose above 4.7 percent, reinforcing concerns that higher energy prices could keep inflation elevated and delay monetary easing. Adding to the cautious mood, Alphabet shares fell 6.89 percent after the company unveiled a sharply higher AI spending plan despite beating quarterly revenue estimates. The selloff was mirrored across regional markets. Japan's Nikkei 225 dropped 2.79 percent to 64,572.00, Hong Kong's Hang Seng Index declined 1.16 percent to 24,919.50 and China's Shanghai Composite fell 1.61 percent to 3,814.20. 2026-07-24 17:30:50
  • DYA Faces Challenges as Stock Price Falls Below 800 Won
    DYA Faces Challenges as Stock Price Falls Below 800 Won DY Associates (DYA) is facing scrutiny as its stock price has fallen significantly. The company, which supplies automotive seats to Hyundai and Kia, has seen its stock drop nearly 30% this year, bringing its market capitalization close to the threshold for maintaining its listing. In response, DYA is pursuing a stock consolidation and large-scale facility investments, but concerns among investors about maintaining its listing and boosting stock prices are growing.According to the Korea Exchange, DYA's stock closed at 773 won. This represents a 29.5% decline from its closing price of 1,096 won on the first trading day of the year, January 2. During the same period, its market capitalization shrank from 51.3 billion won to 36.2 billion won. If the stock price falls by about 17.1% from its current level, it will dip below the 30 billion won threshold required for listing maintenance on the KOSDAQ.The stock price has been on a downward trend this year. After dropping to 983 won on March 3, it has mostly traded below 1,000 won. On June 22, it fell to 718 won. Although it reached a high of 1,063 won on July 10, it subsequently dropped by 10.54% and 10.41% on July 13 and 14, respectively, returning to penny stock status.Last month, DYA decided to consolidate its shares to enhance stock value. On June 25, the company announced a plan to consolidate five common shares into one. Once the consolidation is complete, the par value per share will increase from 500 won to 2,500 won, reducing the number of shares from approximately 46.77 million to 9.35 million. The new shares are set to be listed on September 11. However, while the number of shares in circulation will decrease, the value of shareholders' equity and the company's market capitalization will remain unchanged. There is also a possibility that selling pressure could lead to a further decline in stock prices post-consolidation.In addition to the stock consolidation, DYA is making significant investments to boost its stock price and expand its business. In April, the company decided to invest 42.8 billion won, equivalent to 91.99% of its equity, to establish a new plant in Inju, Asan, South Chungcheong Province. In May, it committed 12.11 billion won to upgrade production facilities and establish a payment system at its Gwangju Plant No. 1, which represents about 26.03% of its equity.DYA also changed its name. Following a resolution at its regular shareholders' meeting in March, the company rebranded from Daeyu A-Tech to DYA. This marks the second name change since it transitioned from Daeyu DMC to Daeyu A-Tech in 2010. At that time, the company expressed its goal to become a global enterprise encompassing the entire future mobility ecosystem.However, financial structure remains a concern. As of the end of the first quarter, DYA's total liabilities stood at 376.5 billion won, more than seven times its total equity of 50 billion won, resulting in a debt ratio of 752.3%. Short-term liquidity is also weak, with current assets at 156 billion won against current liabilities of 326.1 billion won, yielding a current ratio of 47.8%. Cash and cash equivalents plummeted from 13.2 billion won at the end of last year to 2.3 billion won at the end of the first quarter, a decrease of 82.4%. With ongoing large-scale facility investments, securing funding and managing financial burdens are expected to be future challenges.Restoring market confidence is another critical task. The Korea Exchange designated DYA as an unfaithful disclosure company on February 6 due to a delayed announcement regarding a lawsuit and corrections. Although no penalty points were imposed at that time, a fine of 12 million won for disclosure violations was levied. However, since the accumulated penalty points remain at zero, the company is not immediately subject to management designation or delisting review due to disclosure violations.Investor anxiety is also rising. In online investment communities, there are calls for effective measures to raise stock prices rather than simply reducing the number of shares. Concerns have been raised about significant losses for long-term investors. As the company continues to struggle with poor stock performance and financial burdens, market attention is focused on whether it can restore confidence and revive investor sentiment.* This article has been translated by AI. 2026-07-24 17:20:00