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U.S. Senate Passes Bill to Restrict Vehicle Sales from Adversarial Nations The U.S. Senate is moving to tighten regulations on the entry of Chinese automotive companies into the American market.On July 22, the Senate Commerce Committee passed the "2026 Connected Vehicle Security Act," co-sponsored by Republican Senator Bernie Moreno of Ohio and Democratic Senator Elissa Slotkin of Michigan, according to Reuters and other sources.The bill prohibits the import, manufacture, and sale of connected vehicles and related software and hardware linked to adversarial nations, including China, Russia, Iran, and North Korea. Specifically, it bans the sale of vehicles produced by companies where entities from adversarial nations hold more than 15% of shares, voting rights, or board seats.If enacted, companies with significant Chinese investment, such as Polestar, an electric vehicle manufacturer owned by Geely Automobile Group, are expected to be the first affected. Polestar may face sales restrictions in the U.S. starting with its 2027 model year.Volvo, which is majority-owned by Geely, has reportedly been granted permission to continue operations in the U.S. but must demonstrate that all its models comply with the new regulations.Concerns have also been raised that Mercedes-Benz, which has about 20% of its shares held by Chinese investors, could fall under these regulations. Although the Chinese investment is largely passive and unrelated to management control, applying the bill's ownership criteria could lead to a ban on vehicle sales in the U.S.Senator Ted Cruz, a Republican from Texas, warned that if the bill is implemented without amendments, it could result in the unexpected outcome of Mercedes-Benz being forced out of the U.S. market.In response, Senator Moreno explained that Mercedes-Benz would be granted a grace period until 2030 to comply with the regulations and could seek exemptions if necessary.* This article has been translated by AI. 2026-07-23 15:00:00
Rising Interest Rates Chill Small Business Investment Sentiment As high interest rates and economic sluggishness persist, small business investment sentiment is cooling. Companies are increasingly postponing capital investments due to rising funding burdens and declining sales and orders. According to the financial sector on July 23, the balance of asset-backed loans from the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) stood at 785.6 billion won at the end of the first quarter of this year, a decrease of 11.2% from 885 billion won in the same period last year. This marks a continuous decline since reaching 1.043 trillion won in the fourth quarter of 2023. In contrast, other types of secured loans, such as those backed by real estate, securities, and deposits, have recently shown an upward trend. Asset-backed loans are financial products that allow businesses to borrow funds using machinery, equipment, raw materials, and inventory as collateral. These loans are primarily utilized by small businesses that lack sufficient real estate to secure funding for production facilities or operational capital. The decline in asset-backed loans is seen by the financial sector as a signal of reduced demand for facility funding among small businesses. Typically, an increase in capital investment leads to a rise in loans secured by machinery and equipment. However, recent economic uncertainties and high financing costs have led more companies to delay their investment plans. Business sentiment remains bleak. According to the Korea Federation of Small and Medium Enterprises, the Small Business Health Index (SBHI) for July fell by 1.4 points to 78.2. A reading below the baseline of 100 indicates that more businesses view the economic outlook negatively than positively. Small businesses cite poor sales, rising raw material prices, and intensified competition as their main operational challenges. Additionally, the ongoing monetary tightening has increased funding costs, further diminishing their capacity to invest in new facilities. In fact, the growth rate of small business sales last year was 3.1%, down 1.1 percentage points from the previous year. Although the interest coverage ratio showed slight improvement, it remains in negative territory, indicating that many businesses are unable to cover interest expenses with their operating income. With weakened profitability, struggling companies are forced to prioritize using their cash flow to cover existing loan interest and operating expenses. This reduces their ability to acquire new equipment or expand production capacity, leading to a further decline in demand for asset-backed loans. A banking sector official stated, “In a situation where sales and new orders are sluggish, businesses see little need to expand production facilities. The combination of high interest rates, domestic sluggishness, and exchange rate pressures is causing more small businesses to delay importing equipment from abroad.” 2026-07-23 15:00:00
Hyundai Motor's Q2 operating profit falls 21% despite record sales SEOUL, July 23 (AJP) — Hyundai Motor, South Korea's largest automaker, suffered 20-percent dip in second-quarter operating profit even as quarterly revenue hit a record high, as weaker sales volume, higher costs, and an unfavorable product mix outweighed favorable currency effects. Operating profit for the April-June period came in at 2.851 trillion won, down 20.8 percent from a year earlier and slightly below market consensus, though up 13.4 percent from the first quarter. The operating margin narrowed to 5.8 percent from 7.5 percent a year earlier but improved from 5.5 percent in the first quarter. The year-on-year decline was driven mainly by weaker sales volume, which cut operating profit by 542 billion won, and the combined effect of product mix and incentives, which reduced it by a further 570 billion won. Favorable currency effects partially offset the pressure, adding 238 billion won, while the financial services division contributed an additional 106 billion won. The U.S. dollar rose around 3 percent against a year-ago period to average around 1,500 won in the second quarter. Revenue totaled 49.215 trillion won, a record for a single quarter, up 1.9 percent from a year earlier and 7.1 percent from the previous quarter. Currency effects added 2.571 trillion won to revenue, while lower sales volume and an unfavorable mix subtracted 2.246 trillion won and 1.101 trillion won, respectively. Net income fell 11.1 percent from a year earlier to 2.888 trillion won, though it rose 11.7 percent from the first quarter. Profit before tax declined 16.9 percent on-year to 3.646 trillion won. Global wholesale shipments fell 6.9 percent from a year earlier to 992,000 vehicles, while retail sales dropped 4.2 percent to 999,000 units, as steep declines in China weighed on an otherwise mixed regional performance. In the United States, Hyundai's largest market, wholesale shipments rose 0.9 percent to 265,000 vehicles even as industry-wide demand was nearly flat. Its market share increased 0.2 percentage point from a year earlier, remaining above 6 percent for a fifth consecutive quarter. European wholesale volume fell 10.9 percent to 144,000 vehicles amid intensifying competition, geopolitical risks and major model launches scheduled for the second half, including the Tucson and Ioniq 3. Domestic wholesale sales dropped 16.4 percent to 158,000 vehicles amid a parts-supply disruption. Sales in China tumbled 36.9 percent to 19,000 vehicles, while wholesale volume in India rose 5.4 percent to 139,000 vehicles. Hybrid vehicles accounted for a record 18.9 percent of Hyundai's global wholesale volume during the quarter, with the hybrid share of U.S. sales reaching an all-time high of 26.2 percent. 2026-07-23 14:57:40
U.S.-Saudi Nuclear Agreement Signals Shift in Nuclear Policy The United States is showing signs of a shift in its nuclear policy. On July 22, the Trump administration signed a civilian nuclear agreement with Saudi Arabia. While specific details remain undisclosed, reports indicate that the agreement allows for uranium enrichment and the reprocessing of spent nuclear fuel under certain conditions, including participation from U.S. companies. Historically, the U.S. has maintained a conservative stance on allowing uranium enrichment and nuclear fuel reprocessing, citing the need to uphold the Nuclear Non-Proliferation Treaty (NPT). This marks a departure from principles the U.S. has previously established.The context is clear. As the U.S. struggles to find a breakthrough in its conflict with Iran, it seeks to contain Iran's influence while also countering the growing power of China and Russia. By securing a nuclear agreement with Saudi Arabia, the U.S. aims to solidify its strategic alliance with the kingdom. The decision to proceed with the agreement, despite concerns over nuclear proliferation in the Middle East and Saudi Arabia's pursuit of regional dominance, suggests that the U.S. is prioritizing strategic interests over non-proliferation principles.This development has significant implications for South Korea. If the U.S. can adjust its nuclear policy based on strategic interests, South Korea, which has maintained a strong alliance with the U.S. for over 70 years, should also be able to engage more actively in discussions regarding uranium enrichment and nuclear fuel reprocessing. Moreover, with China identified as the U.S.'s primary strategic competitor, South Korea, a key ally in the Indo-Pacific strategy, stands at the forefront of efforts to counter China. If the U.S. can enter into a nuclear agreement with Saudi Arabia to contain Iran, there is no reason it cannot advance nuclear cooperation with South Korea.South Korea has faithfully adhered to the NPT and has undergone the most stringent inspections by the International Atomic Energy Agency (IAEA). It also possesses world-class technology in nuclear power construction and operation. The successful completion of the Barakah nuclear power plant in the United Arab Emirates and recognition of its competitiveness in European markets, such as the Czech Republic, highlight its capabilities. However, the authority over uranium enrichment and reprocessing, which are critical to the nuclear fuel cycle, remains constrained by the U.S.-South Korea nuclear agreement. This limitation on managing nuclear fuel independently while exporting nuclear power plants poses clear challenges to the competitiveness of the nuclear industry and energy security. Most importantly, the issue of spent nuclear fuel is a national challenge that can no longer be postponed. Domestic storage facilities for spent nuclear fuel are nearing capacity, and the problem will only worsen as the nuclear power expansion policy continues.This year, President Lee Jae-myung and French President Emmanuel Macron identified nuclear energy as a core area of strategic cooperation during their summit. They agreed to expand collaboration across the nuclear sector, including next-generation reactors and nuclear fuel. Cooperation with France, which possesses some of the world's leading nuclear technology, could enhance the competitiveness of South Korea's nuclear industry. However, if the constraints of the U.S.-South Korea nuclear agreement remain in place, practical applications will inevitably be limited.In this context, President Lee's visit to the U.S. starting July 24 could mark a significant turning point. Notably, President Trump opened the door to new possibilities for nuclear cooperation by allowing South Korea to build nuclear-powered submarines last year. Therefore, it is essential to discuss the potential for further development of the U.S.-South Korea nuclear agreement, including rights for uranium enrichment and nuclear fuel reprocessing, during this visit.The nuclear agreement with Saudi Arabia has demonstrated that the U.S. can adjust its existing principles when strategic needs arise. Thus, the same standards should apply to South Korea, a key ally in Asia. It is hoped that this visit to the U.S. will serve as a turning point in enhancing South Korea's nuclear capabilities. 2026-07-23 14:56:00
Seoul Land Prices Rose 2.32% in First Half of 2026, Double the National Average In the first half of 2026, land prices in Seoul saw the largest increase in the country, as the overall national land price growth slightly expanded. The volume of land transactions also increased compared to the second half of last year, indicating a modest recovery in market activity.According to a report released on July 23 by the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Agency, national land prices rose by 1.22% in the first half of this year. This marks an increase of 0.03 percentage points from the 1.19% recorded in the second half of last year and a 0.17 percentage point rise from the 1.05% seen in the first half of last year.In terms of quarterly performance, the national land price change rate for the second quarter of this year was 0.63%, up 0.05 percentage points from 0.58% in the first quarter. Compared to the same period last year, which saw a 0.55% increase, this represents a growth of 0.08 percentage points.Regionally, there remains a disparity between the metropolitan area and other regions. Land prices in the metropolitan area increased from 1.66% in the second half of last year to 1.69% in the first half of this year, while prices in other regions remained stable at 0.38%.By city, Seoul's land prices surged by 2.32%, significantly exceeding the national average and marking the highest increase among the 17 cities and provinces. Following Seoul were Daejeon at 0.80%, Incheon at 0.67%, and Busan at 0.61%.Within Seoul, the Gangnam area and key business and development zones showed particularly strong price increases. Among the districts, Gangnam-gu recorded the highest rise at 2.99%, followed by Yongsan-gu at 2.88% and Seongdong-gu at 2.69%. Out of 255 cities, counties, and districts nationwide, 37 exceeded the national average increase.In terms of land use, commercial areas saw the highest increase at 1.50%. Residential areas rose by 1.44%, industrial areas by 1.07%, and green spaces by 0.74%. For land usage, commercial land increased by 1.42%, while residential land rose by 1.38%.Land transactions also saw an uptick. In the first half of this year, the total number of land transactions, including those for building sites, reached 945,084, covering an area of 574.2 square kilometers. This represents a 2.2% increase from the second half of last year and a 4.2% increase from the first half of last year.Excluding transactions for building sites, the pure land transaction volume was 298,071. This is a 1.5% increase compared to the second half of last year, but a 3.3% decrease from the first half of last year.By city, Sejong saw the largest increase in total land transactions at 42.2%, followed by Jeonbuk at 10.8%. Among the 17 cities and provinces, 10 experienced an increase in transaction volume, while 7 saw a decline. In terms of pure land transactions, Sejong increased by 30.4%, and Seoul by 17.5%, with 6 cities showing growth while 11 experienced declines.By land use, transactions in agricultural and forestry areas increased by 26.9%, the largest growth. In terms of land type, rice paddy transactions rose by 19.9%, while industrial land transactions increased by 5.2%. Conversely, unspecified land types saw a decrease of 21.8%, forest land by 9.4%, and other buildings by 12.1%.* This article has been translated by AI. 2026-07-23 14:52:00
Bodyfriend Sees Surge in 2030 Generation Customers with 94% Increase in 20s Contracts Bodyfriend has reported a significant increase in customers from the 2030 generation in its first-half sales results.On July 23, Bodyfriend announced that the total number of contracts increased by 16.2% compared to the same period last year. The rise in rental contracts among customers in their 20s (+93.7%) and 30s (+4.3%) has driven overall performance, building on existing demand from middle-aged and older consumers.Notably, both the number of rental contracts and revenue from customers in their 20s surged by 82.8%. A representative from Bodyfriend stated, "This reflects the younger generation's trend of self-investment and their high acceptance of the latest technologies such as artificial intelligence (AI) and robotics."The best-selling product across all age groups was the medical device 'Medical Pharaoh,' followed by healthcare robots like 'Falcon N,' which together accounted for about 75% of total sales. Among customers in their 20s, the proportion of entry-level models like the 'Falcon' series, which had been dominant until last year, has shifted. In the first half of this year, they contracted the medical device 'Medical Pharaoh' (15%) more than 'Falcon N' (14%), indicating a broader range of product choices.Additionally, Bodyfriend ranked first among healthcare brands in the '2026 Q2 Top 100 Brands in Korea' survey conducted by Brandstock.A Bodyfriend official commented, "The new features of Bodyfriend's AI healthcare robots and medical devices have lowered the age entry barriers for the brand. In the second half of the year, we will focus on expanding our customer base, including the younger demographic, through upgraded new products that actively respond to new technologies."* This article has been translated by AI. 2026-07-23 14:52:00
KIBO Signs MOU with HUG and KAMCO to Enhance AI Audit Capabilities The Korea Technology Finance Corporation (KIBO) announced on July 23 that it has signed a memorandum of understanding (MOU) with the Housing and Urban Guarantee Corporation (HUG) and the Korea Asset Management Corporation (KAMCO) to enhance expertise in artificial intelligence (AI) auditing and support active administration.This agreement aims to strengthen cooperation among public institutions in response to the rapidly changing audit environment due to advancements in digital technology. It also seeks to promote the use of AI-based auditing techniques and foster a culture of proactive administration.Under the MOU, the institutions will collaborate in several areas, including: sharing examples of AI-based auditing techniques, operating a working group to enhance AI auditing capabilities, providing mutual consultation to activate support systems for proactive administration, exchanging audit personnel for mutual support in specialized fields, and sharing key audit cases and examples of system improvements.The institutions aim to further develop a preventive audit system utilizing AI technology, enhancing audit expertise and efficiency to strengthen the foundation for supporting active administration.Previously, KIBO co-hosted an AI ethics seminar with KAMCO on July 8, aimed at fostering a responsible AI culture in collaboration with Busan citizens and local public institutions.Yoo Cheol-geun, KIBO's Chief Auditor, stated, "This agreement is significant as it establishes a collaborative framework in the field of AI-based digital auditing beyond individual exchanges between institutions. KIBO will continue to work with relevant organizations to share expertise and experience, ensuring that the culture of proactive administration is firmly established in the field while fulfilling its core auditing role."* This article has been translated by AI. 2026-07-23 14:52:00
Warning Signs of Economic Tightening: 35% of Companies Struggle as Delinquency Rates Hit 11-Year High Interest rate hikes are intended to cool an overheating economy, but they often first impact the most vulnerable sectors. Since the tightening phase began in 2022, an increasing number of companies have struggled to manage interest payments, while self-employed individuals face rising delinquency risks. With the Bank of Korea resuming tightening for the first time in three and a half years, concerns are growing that the scars from the previous tightening cycle may be repeated.According to the Bank of Korea and other sources, indicators of distress among businesses and self-employed individuals have shown a marked deterioration since the last period of rising interest rates. A notable example is the increase in so-called 'zombie companies.' The Bank of Korea's '2022 Corporate Management Analysis' report indicates that 35% of companies have an interest coverage ratio below 100%, meaning they cannot cover interest expenses with operating profits.The rise in interest rates has increased financial burdens, compounded by sluggish domestic demand and a slowdown in exports, significantly weakening corporate profitability. Small and medium-sized enterprises (SMEs) are particularly vulnerable, facing greater impacts from interest rate fluctuations compared to larger corporations.The situation for self-employed individuals is similarly dire. In 2023, the delinquency rate for personal business loans reached 0.66%, the highest since relevant statistics began in 2017. The combination of accumulated debt from the COVID-19 pandemic and high borrowing costs has sharply increased repayment burdens.Compounding the issue is the fact that the previous tightening cycle's wounds have not yet healed, and interest rates began to rise again in 2026. As economic slowdown and weak domestic demand persist, increased interest burdens could further erode the repayment capacity of vulnerable companies.As of the end of May this year, the delinquency rate for SME loans at domestic banks was 1.00%, the highest level since May 2015 (1.11%). The delinquency rate for loans to small corporations also reached 1.11%, the highest since May 2017. This indicates that the problems that began during the last tightening cycle are not being resolved but are instead accumulating.There are growing concerns that rising delinquency rates could lead to a vicious cycle, raising the barriers for bank loans. According to the Bank of Korea's 'Financial Institution Lending Behavior Survey,' banks expect credit risks for SMEs to increase. As credit risks rise, banks tend to tighten loan assessments and adopt a more conservative approach to lending.There is also a trend of bank funding flowing more toward large corporations than SMEs. As of the end of last month, the outstanding balance of SME loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) was 682.72 trillion won, a decrease of 1.7368 trillion won (0.3%) from the previous month. In contrast, loans to large corporations increased by 4.9285 trillion won (2.7%) to 190.36 trillion won during the same period.As cash flow worsens for SMEs due to declining sales and increased interest burdens, higher loan thresholds could lead to a greater risk of delinquency turning into insolvency. Companies with weaker financial capabilities are the first to feel the impact of rising interest rates and reduced lending.A financial industry official stated, “What is more concerning than the interest rate hike itself is that the distress has already accumulated. If additional tightening continues without fully addressing the aftereffects of the previous cycle, the credit risks for SMEs and self-employed individuals could rise more rapidly than expected.” 2026-07-23 14:52:00
Shinhan Asset Management's Kim Jung-hyun: Semiconductor Leadership Continues in H2 Kim Jung-hyun, head of the ETF business group at Shinhan Asset Management, predicts that the leadership of artificial intelligence (AI) semiconductors in the stock market will continue in the second half of the year. However, he advises that due to expected increased volatility, investors should consider balanced investments using income-generating assets such as high-dividend and financial stocks. In an interview with Aju Economy on July 22, Kim stated, "The leadership of semiconductors will persist in the second half, and it is necessary to maintain a certain level of investment in semiconductors while balancing the portfolio." Regarding the recent concerns about a peak in semiconductor stocks, he assessed that the issue is more about the pace of growth rather than the direction. Kim explained, "The current debate is ultimately about the slope of growth, questioning whether the anticipated growth rate is slightly declining, but it is difficult to deny the upward trend itself." He also believes that the changes brought by AI will extend beyond semiconductors. "AI cannot be viewed as just one theme," he said, forecasting that the world will continue to change through AI for at least the next 5 to 10 years. He noted that the transformation is spreading from semiconductors to infrastructure, power, software, and more, anticipating further investment opportunities in various fields. "While Market Concentration Cannot Be Prevented, I Must Control My Portfolio's Focus" Kim expects that market volatility in the second half of the year will be greater than in the first half. He cited the adjustment of market expectations regarding the growth rate and fair value of semiconductors as a reason for potential fluctuations in stock prices. He specifically warned about the excessive concentration of investment funds in semiconductors. "Excessive concentration always leads to side effects," he emphasized, adding, "While I cannot control market concentration, I can manage the focus of my portfolio." For the second half of the investment strategy, he suggested maintaining a certain level of semiconductor exposure while also including income-generating assets like high-dividend stocks and financial holdings. He explained that utilizing assets expected to benefit from dividends and shareholder returns can enhance the defensive strength of the portfolio. In line with this strategy, Shinhan Asset Management is preparing products that focus on both growth themes and income-generating assets. The firm plans to introduce defensive income ETFs that can be utilized by retirement pension investors while also discovering growth themes related to AI. Kim stated, "It is important to make efforts to reduce the volatility of my portfolio under high volatility, and our goal is to quickly provide products that investors can utilize." "ETF Market Growth Continues... Product Differentiation is Key to Competitiveness" Kim also anticipates continued growth in the domestic exchange-traded fund (ETF) market. This growth is attributed to the expansion of non-face-to-face investment platforms and the increase in self-directed investors managing their retirement pensions and individual retirement accounts (IRAs). He noted, "Among existing financial investment products, ETFs are the most efficient means," highlighting their low costs, ease of trading, and the variety of products available. Since launching the SOL ETF in 2021, Shinhan Asset Management has focused on discovering differentiated products. Following the introduction of Korea's first monthly dividend ETF in 2022, the firm has continued to roll out ETFs that differentiate themselves from existing products in sectors such as semiconductors, secondary batteries, and shipbuilding. Kim remarked, "SOL was initiated with the belief that we should provide solutions to investors, and it is important to continuously introduce products that are not available in the market to create a unique identity for SOL." He identified product differentiation as a key challenge for the domestic ETF market to achieve further growth. He pointed out that competition among asset management firms has become heated relative to the market size, leading to the repeated launch of similar products imitating popular offerings and a race to lower fees. Kim stated, "When someone creates a creative and innovative product, similar products emerge immediately, leading to a fee competition that is prevalent. It is crucial to establish a differentiated competitive edge unique to Korea rather than merely following the quantitative scale of the U.S. ETF market."* This article has been translated by AI. 2026-07-23 14:48:00
HD Hyundai Site Solutions Develops Low-Temperature Curing Paint, Reducing Carbon Emissions by 53% HD Hyundai Site Solutions, the intermediate holding company of HD Hyundai's construction machinery division, has developed a low-temperature curing paint that can significantly reduce carbon emissions during the painting process.On July 23, HD Hyundai Site Solutions announced that its new low-temperature curing paint can lower carbon emissions from construction machinery painting processes by approximately 53%. This reduction is equivalent to planting about 104,000 pine trees annually.Traditional paints required high temperatures of 80-100℃ to cure on component surfaces. The newly developed paint can cure at temperatures of 50-60℃, thereby reducing the thermal energy needed for the drying process.To achieve this, HD Hyundai Site Solutions replaced the resin component from acrylic polyurethane to a faster-reacting polyaspartic series.The company is currently testing the new paint on production lines and plans to expand its application to domestic sites, including its Ulsan campus, Incheon, and Gunsan.Once implemented in actual production, the company estimates that the use of liquefied natural gas (LNG) for increasing drying temperatures will decrease by about 320,000㎥ annually, resulting in a reduction of approximately 689 tons of carbon emissions. The new paint also emits about 69% fewer volatile organic compounds (VOCs) compared to traditional paints.Previously, HD Hyundai Site Solutions developed special paints with low VOC emissions for use in HD construction machinery's production lines in China and domestic electrification products. The company is also transitioning its production processes at domestic and international sites to be powered by renewable energy.An official from HD Hyundai Site Solutions stated, "If the new paint is applied to mass production, it will be a first in the industry. We aim to enhance energy efficiency in manufacturing processes and reduce greenhouse gas emissions to achieve our carbon neutrality goal by 2050."Meanwhile, HD Hyundai Site Solutions recently completed a modernization project at its Ulsan industrial vehicle plant, establishing a production base capable of manufacturing 24,000 industrial vehicles annually.* This article has been translated by AI. 2026-07-23 14:48:00