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South Korea's Climate and Energy Minister Kim Sung-hwan Leads Integrated Policy Efforts South Korea's Minister of Climate, Energy and Environment, Kim Sung-hwan, is entering the second year of his tenure leading the climate and energy team. He is credited with establishing a policy foundation through the launch of the integrated climate ministry, which combines climate, environmental, and energy functions.In this second year, the implementation of policies is expected to face significant challenges. Key tasks include the establishment of the 12th Basic Plan for Electricity Supply and Demand, expansion of renewable energy, and ensuring the supply of electricity and water for semiconductor and artificial intelligence (AI) data centers.According to government sources, Kim was appointed as Minister of Environment on July 22, 2025, and became the first Minister of Climate, Energy and Environment following a government reorganization on October 1 of the same year. He led the establishment of a system that consolidates climate, environmental, and energy policies under one ministry and transferred the climate response fund organization from the Ministry of Economy and Finance to facilitate the ministry's launch.Since its inception, the ministry has focused on clarifying the direction of carbon neutrality policies. At the end of last year, it confirmed a national greenhouse gas reduction target (NDC) for 2035, aiming for a 53-61% reduction compared to 2018 levels, and proposed sector-specific reduction strategies, including the expansion of paid emissions allowances in the power sector.In the energy sector, the ministry set a goal of deploying 100 GW of renewable energy by 2030 and plans to establish a 'Korean Green Transition (K-GX) Strategy' within the year. Efforts are also underway to build energy highways and expand renewable energy systems.To support three major mega-projects, including semiconductor and AI data centers, the ministry is accelerating the construction of transmission lines and substations and is working to expand the power grid in a timely manner. Various measures are being considered to secure industrial water, including the construction of new dams, raising existing dams, utilizing surplus water resources, and supplying recycled wastewater.The government is pursuing an energy mix that considers both the expansion of renewable energy and stable power supply. The 12th Basic Plan for Electricity Supply and Demand will include consultations with experts and public discussions regarding the introduction of new nuclear power plants and small modular reactors (SMRs).Discussions on restructuring the functions of public power companies have also begun. The ministry has initiated talks to redefine the roles of the five major power companies in line with energy transition goals and plans to establish a restructuring plan by the end of the year.However, there are several challenges to address in the implementation of these policies. It is essential to resolve issues related to community acceptance of transmission network construction and system saturation, and to ensure timely supply of power and industrial water in line with the operational schedules of semiconductor national advanced industrial complexes and AI data centers. The 12th Basic Plan must also determine the appropriate balance between nuclear power and renewable energy, while addressing the need for realistic electricity and water rates and improving the financial structure of Korea Electric Power Corporation.In a recent interview with Aju Economy, Minister Kim emphasized, "Environment, industry, and energy are no longer opposing concepts but fields that must progress together," and stated, "We will achieve tangible results in green transition based on the consistency of climate and energy policies."* This article has been translated by AI. 2026-07-21 18:48:00 -
Interest Rate Hikes Raise Concerns for Vulnerable Borrowers 한국은행이 기준금리 인상 기조로 전환한 데 이어 하반기 추가 금리 인상 가능성까지 높아지면서 저소득·저신용 차주를 중심으로 이자 부담이 확대될 것이라는 우려가 커지고 있다. 코로나19 이후 취약 부문의 부실이 충분히 해소되지 않은 상황에서 대출금리 상승이 이어지면 상환 부담이 한층 커질 수 있다는 분석이다.According to the Bank of Korea, the delinquency rate for household loans rose to 1.00% in the first quarter of this year, up from 0.92% in the fourth quarter of last year. While the overall delinquency rate remains within long-term averages, the central bank has noted signs of deteriorating financial health among vulnerable borrowers.The proportion of vulnerable borrowers, defined as low-income and low-credit households and self-employed individuals, increased from 6.4% at the end of the third quarter of last year to 6.7% at the end of the first quarter of this year. These borrowers, who typically have low income and credit scores and often hold debts from multiple financial institutions, are expected to be most affected by rising interest rates.Market analysts believe there is a high likelihood that the Bank of Korea will raise the benchmark interest rate at least once more this year. As the benchmark rate increases, it will eventually be reflected in loan rates, further increasing the repayment burden for vulnerable borrowers.In fact, rising interest rates directly lead to increased interest burdens for borrowers. According to data submitted by the Bank of Korea to lawmaker Lee Jong-wook of the People Power Party, a 0.25 percentage point increase in mortgage rates is estimated to raise the annual interest burden for all borrowers by approximately 1.8 trillion won. This translates to an additional burden of about 296,000 won per borrower annually. If further rate hikes occur, the interest burden could increase even more.The burden on vulnerable groups is already evident in statistics. According to the National Data Agency's household trend survey, the average monthly interest cost for all households in the first quarter of this year was 136,515 won, a 6.6% increase from the same period last year. In contrast, the interest costs for the lowest income 20% of households rose by 23.9% during the same period, more than three times the overall average increase. This indicates that the impact of rising interest rates is disproportionately affecting low-income households.Experts warn that if the tightening of monetary policy continues for an extended period, the repayment capacity of vulnerable borrowers could deteriorate rapidly. If income growth does not keep pace with rising interest burdens, delinquencies may increase, which could also pose risks to the financial sector's stability.Kim Sang-bong, a professor of economics at Hansung University, stated, "Market interest rates are already at a high level. If the benchmark rate is raised two more times, the repayment burden for vulnerable borrowers could increase sharply."* This article has been translated by AI. 2026-07-21 18:48:00
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Construction of Samsung's P5 fab presses on despite poor weather SEOUL, July 21 (AJP) - Construction of the P5 semiconductor fabrication plant continues at Samsung Electronics' Pyeongtaek campus in Pyeongtaek, Gyeonggi Province, on July 21, 2026. 2026-07-21 18:28:29 -
Increasing Role of Special Envoys in South Korea's Evolving Diplomacy As competition intensifies among nations over semiconductor and battery supply chains, defense exports, nuclear energy, artificial intelligence, and critical minerals, the nature of diplomacy is rapidly changing. While traditional diplomacy focused on managing inter-state relations and formal negotiations, today’s overseas missions have evolved into complex forward bases that support market entry for domestic companies, identify supply chain disruptions, back large contracts, and ensure the safety of citizens abroad during wars and disasters.The Ministry of Foreign Affairs has long operated meetings for economic security officers at overseas missions, emphasizing collaboration with local businesses and relevant organizations to resolve corporate challenges. In this context, Aju Economy examines the current status of domestic and international envoys to highlight the roles and significance of overseas missions. The increasing appointment of special envoys for specific diplomatic tasks is attributed to the changing dynamics of diplomacy. There is a growing trend of appointing private sector experts as special envoys abroad.According to Aju Economy's comprehensive reporting on July 21, diplomatic authorities are currently employing a strategy to secure key missions in areas such as defense, beauty and cosmetics, food, and nuclear energy. They are also focusing on enhancing the economic diplomacy function of overseas missions by transforming them into forward bases for exports and contracts.The Ministry of Foreign Affairs itself emphasized in a report last December that it would innovate the roles of overseas missions. It plans to designate specialized missions in areas such as cultural public diplomacy, export contracts, science and technology, and development cooperation. Earlier, in 2024, the ministry announced its goal to enhance expertise and expand openness by increasing the recruitment of diverse external personnel from various sectors. This has led to a rise in the deployment of special envoys tailored to the specific missions of each overseas mission.In this regard, Kim Jun-hyung, acting representative of the Justice Innovation Party and former head of the National Diplomatic Academy, explained in a conversation with Aju Economy, "In the past, when there were few summits, ambassadors played a larger role as professional diplomats representing the country in direct contacts. However, nowadays, direct summits are more common, expanding the public diplomatic character of these roles."As national leaders communicate directly to make significant policy decisions, it becomes strategically viable to send individuals who symbolize the country or possess strong local networks and infrastructure as heads of missions. However, he argues that even in such cases, appointments should be reasonable, with strong connections to the local area or recognized expertise.Lee Shin-hwa, a professor of political science and diplomacy at Korea University, positively assessed that special envoys who share the president's national philosophy can effectively and swiftly advance key diplomatic policies in the field.Professor Lee stated, "While traditional diplomats perform well, in specific areas such as defense, culture, and economics, the expertise and personal connections of private sector or other government professionals may surpass those of diplomats. The special envoy system is significant in terms of accommodating external expertise and breaking down the Ministry of Foreign Affairs' 'pure blood' mentality."However, some express concerns that the special envoy system may be misused for patronage appointments, deviating from its intended purpose. Additionally, there are recommendations to simultaneously enhance the capabilities of diplomats while expanding the special envoy program to increase the pool of talent available for overseas missions. Given the ongoing global 'trade war,' the importance of diplomacy is growing, necessitating the development of diverse candidates for envoy positions.Kim Gun, a lawmaker from the People Power Party and a former diplomat, agrees on the need for strategic judgment in sending experts as special envoys but expressed concern, stating, "There is widespread public skepticism about whether some special envoys can effectively conduct diplomacy."In this context, Kim recently proposed a 'prevention of parachute appointments for envoys' law. He explained in a conversation with Aju Economy, "The aim is to submit materials related to the selection criteria and procedures for special envoys to the standing committee and to verify appointments of special envoys to important missions through a confirmation hearing in the National Assembly."Professor Lee also pointed out that appointing special envoys through patronage or alignment with specific codes could be problematic. He emphasized, "We cannot overlook the importance of experience on the diplomatic stage and the corresponding international networks. Non-experts or envoys who lack proficiency in English may struggle to respond effectively to economic security crises amid complex international circumstances."He added, "Discussions should also focus on revitalizing the Ministry of Foreign Affairs so that capable diplomats can utilize their expertise. If we only rely on external expertise, the Ministry of Foreign Affairs, which is becoming increasingly important, may inevitably diminish." 2026-07-21 18:28:00
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Construction of Samsung's P5 fab presses on despite poor weather SEOUL, July 21 (AJP) - Construction of the P5 semiconductor fabrication plant continues at Samsung Electronics' Pyeongtaek campus in Pyeongtaek, Gyeonggi Province, on July 21, 2026. 2026-07-21 18:27:28 -
Construction of Samsung's P5 fab presses on despite poor weather SEOUL, July 21 (AJP) - Construction of the P5 semiconductor fabrication plant continues at Samsung Electronics' Pyeongtaek campus in Pyeongtaek, Gyeonggi Province, on July 21, 2026. 2026-07-21 18:26:08 -
Construction of Samsung's P5 fab presses on despite poor weather SEOUL, July 21 (AJP) - Construction of the P5 semiconductor fabrication plant continues at Samsung Electronics' Pyeongtaek campus in Pyeongtaek, Gyeonggi Province, on July 21, 2026. 2026-07-21 18:24:59 -
Weather Forecast: Continued Rain Across the Country with Heat in the South and Jeju On Wednesday, July 22, monsoon rains are expected to continue across most of the country. Strong rain accompanied by gusty winds and thunderstorms will primarily affect the central region, while the southern areas and Jeju Island will experience daytime highs reaching up to 37 degrees Celsius.According to the Korea Meteorological Administration on July 21, Seoul, Incheon, Gyeonggi Province, and the inland and mountainous areas of Gangwon will see rainfall between 20 to 60mm. The five islands in the Yellow Sea are expected to receive 5 to 20mm, while the eastern coast of Gangwon will also see 5 to 20mm of rain.In North Jeolla Province, rainfall will range from 5 to 40mm, while Gwangju and South Jeolla Province will see 5 to 30mm. Northern inland areas of North Gyeongsang Province are expected to receive 20 to 60mm of rain. Daegu, northern Gyeongsang, and western inland areas of South Gyeongsang will see 5 to 40mm, and Jeju Island is expected to receive around 5mm.While rain will continue in most regions, many areas in the southern part of the country will experience a lull in precipitation. The capital region may also see a brief pause in rain until early morning.Following recent heavy rainfall, strong rain is also expected in North Korea, which may lead to rising water levels and increased flow rates in rivers and streams such as the Imjin, Han, and Bukhan rivers in northern Gyeonggi and northern Gangwon provinces.Valleys and rivers may experience sudden surges in water levels, and there is a risk of isolation in riverside walking paths and underpasses. Residents should be cautious of flooding in low-lying areas, river overflow, landslides, rockfalls, and the inundation of agricultural land.The morning low temperatures are forecasted to be between 22 to 26 degrees Celsius, with daytime highs ranging from 29 to 37 degrees. Overall, the country is expected to be mostly cloudy.The southern regions and Jeju Island will experience heat, with heat advisories in effect for parts of the Chungcheong region, southern areas, and Jeju. The perceived temperature in most regions is expected to rise around 31 degrees.* This article has been translated by AI. 2026-07-21 18:12:00
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Credit Card Companies Suspend Payments to Homeplus Amid Store Closures 일부 카드사들이 영업을 중단한 홈플러스에 가맹점 대금 지급을 보류하고 있는 것으로 알려졌다. '티메프'(티몬+위메프) 사태처럼 향후 신용카드 할부 결제로 피해를 입은 소비자 환불 요청을 카드사가 부담해야 하는 경우를 막기 위해 미리 대금을 확보해두려는 취지로 풀이된다. 21일 금융권에 따르면 현재 대부분의 카드사들은 홈플러스가 전국 점포 영업을 중단한 지난 13일 이후 홈플러스에 대금 지급을 보류하고 있다. 일부 카드사들은 결제 취소 분에 한해서만 부분적으로 지급 보류하고 있는 것으로 전해졌다. 현행 시스템에 따르면 카드사는 고객이 결제하면 카드사가 먼저 가맹점에 대금을 주고 추후 고객으로부터 대금을 받는 시스템이다. 결제가 취소되면 카드사가 일단 고객에게 환불대금을 처리해주고 가맹점으로부터 취소분을 받아야 한다. 그러나 현재 홈플러스 상황을 고려할 때 추후 대금을 못 받을 가능성을 감안해 미리 리스크 차단에 나선 것으로 보인다. 예를 들어 가전제품 등을 주문했는데 영업중단으로 배송을 못 받은 경우, 사용기한이 남은 문화센터 이용권을 환불하려는 경우 등이 있을 수 있다. 실제로 가맹점 표준약관에 따르면 카드사가 가맹점에 대금 지급을 보류할 수 있는 사유에는 '가맹점이 채무자 회생 및 파산에 관한 법률의 회생신청, 파산신청 또는 어음교환소의 거래정지처분 및 이에 준하는 경영상 변동이 발생'한 경우가 명시돼 있다. 업계 관계자는 "향후 점포 영업 재개 상황 등을 모니터링하고 있다"고 말했다. * This article has been translated by AI. 2026-07-21 18:08:00
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Hyundai Targets Africa's 1.4 Billion Population Amid Middle East Uncertainty Hyundai Motor Group is focusing on the African market, which boasts significant growth potential. With a population of 1.4 billion, the continent has an automobile penetration rate of less than 1%, indicating it is still in the early stages of market development. The company aims to strengthen its position in a market dominated by Japan and China through expanded local production and enhanced partnerships.According to industry sources, Hyundai is considering Ghana as a key production hub in West Africa. Since 2022, Hyundai has operated a semi-knocked down (CKD) plant in Tema, Ghana's largest port city, and is exploring plans to establish additional production facilities. Recently, Euisun Chung, chairman of Hyundai Motor Group, visited the Manhyia Palace in Kumasi, Ghana, to discuss business expansion in the region with the Asantehene, the king of the Ashanti Kingdom.With a rapidly growing young economic population, Africa is expected to see increased demand for finished vehicles in the coming years. By 2030, the continent's population is projected to reach 2 billion, with an estimated 500 million middle-class individuals capable of purchasing new cars, according to global automotive industry forecasts. The Ghanaian government is also providing various incentives to foreign companies that establish automotive production facilities in the country as part of its Automotive Industry Development Policy (GADP) introduced in 2019.Hyundai is also expanding its production in North Africa. The company is establishing a CKD plant in Algeria, focusing on small hatchbacks and SUVs, with mass production targeted for 2027. Once operational, the Algerian facility is expected to meet North African demand and provide a foundation for exports to neighboring countries.Last year, Hyundai's global sales reached 4,108,605 units, with the Middle East and Africa accounting for about 8% of that total. However, the region has seen an annual growth rate exceeding 5%, and Hyundai anticipates that the abundance of key minerals such as cobalt, lithium, platinum, and rare earth elements will play a crucial role in future electrification supply chains. Sung Kim, head of Hyundai Motor Group's strategic planning division, stated, "We see Africa as the next stage for global growth."Industry analysts emphasize that Africa, composed of 54 countries and thousands of ethnic groups, requires the establishment of ongoing relationships and trust within communities for successful business development. An industry insider noted, "Hyundai's strategy for entering Africa is a comprehensive package that goes beyond mere new car sales, encompassing market, resources, supply chains, production, technology, and talent development. It represents an evolved approach aimed at simultaneously seizing the initial automotive ecosystem and future mobility in Africa, building on the localization success achieved in the Middle East."* This article has been translated by AI. 2026-07-21 18:04:00