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  • Proposed Overhaul of Property Tax System May Shift Focus to Property Value
    Proposed Overhaul of Property Tax System May Shift Focus to Property Value The government is expected to announce a tax reform plan by the end of this month, which may shift the property tax system from being based on the number of homes owned to focusing on the value of those properties. The aim is to enhance tax equity by ensuring that individuals with similar asset values pay comparable taxes, regardless of the number of homes they own. However, there are concerns that this could exacerbate the trend of concentrating wealth in high-value properties, known as the 'one good house' phenomenon.According to relevant authorities, the government plans to unveil a tax reform proposal that includes strengthening property taxes as early as the end of this month.The current property tax system consists of local property taxes and the national comprehensive real estate tax (known as 종부세). The 종부세 applies different tax rates and deductions based on the number of homes owned. This has led to situations where individuals owning a single high-value property face different tax burdens compared to those owning multiple lower-value properties, despite having the same total assessed value. Critics argue that the current system's reliance on the number of homes owned creates inequities in tax burdens.During a public discussion on real estate tax reform held on July 16, the idea of transitioning the 종부세 assessment criteria from the number of homes to property value was proposed as a viable alternative. It was noted that owning one high-value property in the metropolitan area has become more tax advantageous than owning several lower-value properties in rural areas, which has fueled the preference for the 'one good house' strategy.Academics generally agree on the need to strengthen property taxes while lowering transaction taxes such as acquisition and capital gains taxes. They argue that South Korea's tax burden on property ownership is relatively low compared to the high burden on transactions, indicating a need to balance these two aspects.However, there are concerns that a sudden increase in tax burdens could delay the sale of properties by multiple homeowners or lead to higher rental prices as the increased tax costs are passed on to tenants. Therefore, experts suggest that any reforms should be implemented gradually to minimize market disruption.Shifting the tax basis to property value could also change how market participants allocate their assets. While the disadvantages associated with the number of homes owned would decrease, a simplified tax system based on total property value could ease the tax burden for those owning multiple lower-value properties in rural areas. Conversely, if concentrating assets in a single high-value property becomes more advantageous, the preference for the 'one good house' strategy may be reinforced in a different form.Experts agree that the key issue in this tax reform is not merely about increasing tax revenue but rather determining the criteria for taxation. The success of the proposed reforms will hinge on whether it can achieve both tax equity and market stability.* This article has been translated by AI. 2026-07-20 20:04:00
  • Five Candidates for Democratic Party Leadership Rally Support Ahead of Preliminary Elections
    Five Candidates for Democratic Party Leadership Rally Support Ahead of Preliminary Elections Five candidates vying for leadership of the Democratic Party appealed for support ahead of the preliminary elections starting on July 21. The party will select three candidates to advance to the final round.During a joint speech event held at the party's headquarters in Yeouido on July 20, Song Young-gil referenced his past experience with a corruption scandal involving the distribution of money envelopes during a previous party convention. He stated, "I left the party to avoid burdening it. I did not want to cause trouble for President Lee Jae-myung, so I refused a pardon and ultimately returned after being acquitted."He emphasized his key campaign slogan, 'No 2030, No 2030,' asserting, "Without the support of the youth, there will be no victory in the 2030 presidential election. I promise to create new opportunities for young people."Former Prime Minister Kim Min-seok focused his attacks on rival Jung Cheong-rae, questioning, "Do you want to see headlines about the 'Myeong-Cheong War' for the next two years like we did last year?" He added, "We must end the Myeong-Cheong War. A party leader who causes conflict between the party and the government through self-serving politics cannot lead us."Kim also criticized Jung, asking, "Why suddenly talk about the weak and mention collective violence? Are you comparing the Democratic Party to gangster politics just to run for party leader again?" He urged party members to help restore a winning Democratic Party, calling for 100% participation in voting to break the factional divide and protect the party, government, and president.Jung Cheong-rae stated, "I will achieve internal unification and work towards alliances with broader democratic progressive forces. I will continue the reforms that are the identity of the Democratic Party. Together with party members, I will push for the complete abolition of the investigative powers of the prosecution, having already crossed the nine-tenths mark in prosecutorial reform."He also pledged to uphold the one-person, one-vote system and protect party members' right to know by live-streaming general meetings of party members. "If we can live-stream cabinet meetings, why not ours?" he asked.Ko Min-jung asserted, "The politics of the Democratic Party must be renewed. To achieve this, we must change first." He specifically called for an end to lineage debates and urged, "Let’s not leave President Lee to struggle alone."Kim Bo-mi, former chair of the Gangjin County Council, warned, "The generation that still fights with Molotov cocktails and stones cannot be the owners of the Democratic Party. If the 686 generation continues to dominate, the party will fail as it moves to the 786 and 886 generations."* This article has been translated by AI. 2026-07-20 20:00:00
  • Fire at Coupang warehouse in Incheon burns into third day
    Fire at Coupang warehouse in Incheon burns into third day SEOUL, July 20 (AJP) - A fire at a Coupang logistics center in Incheon had burned for more than 51 hours as of Monday, with flames spreading to all four sides of the building. Local authorities have ordered an evacuation near the site as a precaution, though fire officials have pushed back on earlier media reports that firefighters were given an emergency escape order over building collapse fears. The fire broke out around 6:54 a.m. Friday on the sixth floor of Coupang's Fulfillment Center 32 in Seoknam-dong, Seohae-gu, an eight-story warehouse with roughly 299,000 square meters of floor space, according to Incheon Fire Headquarters. It later spread to the seventh floor and, as of Monday, was burning throughout the building. Fire authorities issued a Level 1 alert at 9:15 a.m. Friday, raised it to Level 2 by 12:25 p.m., and declared a National Fire Mobilization Order at 3:15 p.m., drawing personnel and equipment from Seoul, Gyeonggi, Chungcheongbuk, Chungcheongnam and Gangwon. As of Monday morning, 812 firefighters and 231 pieces of equipment remained at the scene. At a briefing on July 19, Incheon Seobu Fire Station disaster response chief Jeon Jae-in said dense, high-temperature smoke from flammable goods stacked on the warehouse's three-tiered racking has severely limited visibility and access for crews. Regarding earlier reports that firefighters had been issued an emergency evacuation order due to collapse risk, fire chief Heo said those accounts were "overstated," explaining that the instruction was a routine pull-back as the fire intensified, not an emergency escape situation. Kwak Dong-sam, head of the Korean Institute of Structural Engineers, said at the same briefing that there was no current risk of the building collapsing. Separately, citing precautionary safety concerns, Seohae-gu ordered an evacuation late Sunday within a 116-meter radius of the warehouse's ramp area, covering nearby businesses but not residential areas. Some 178 residents also voluntarily moved to shelters at two elementary schools, and a nearby elementary school and 14 daycare centers suspended classes Monday. About 121 employees evacuated the warehouse on their own when the fire broke out; no mass casualties have been reported. One firefighter was hospitalized after inhaling smoke. President Lee Jae-myung was briefed on the fire and ordered officials to focus resources on extinguishing it and preventing further damage. Coupang Fulfillment Services CEO Jeong Jong-cheol issued a public apology on Friday. 2026-07-20 19:37:20
  • Severe Rainfall Expected in Central Regions, Up to 120mm in Seoul and Gangwon
    Severe Rainfall Expected in Central Regions, Up to 120mm in Seoul and Gangwon On Tuesday, July 21, strong rain accompanied by gusty winds and thunderstorms is expected to hit central regions of South Korea. The Seoul metropolitan area and Gangwon Province are forecasted to receive over 120mm of rain, while southern regions will continue to experience hot weather.According to the Korea Meteorological Administration, the Seoul metropolitan area and the five western islands will see rainfall between 30 to 80mm, with some areas experiencing heavy downpours exceeding 120mm.In the inland and mountainous areas of Gangwon, 30 to 80mm of rain is also expected, with the central and northern inland regions anticipating over 120mm.In the Chungcheong region, including Daejeon, Sejong, South Chungcheong, and North Chungcheong, rainfall of 30 to 80mm is expected, with northern South Chungcheong's western coast possibly receiving over 100mm.In North Jeolla, Gwangju, South Jeolla, Daegu, North Gyeongsang, and western inland areas of South Gyeongsang, rainfall will range from 5 to 40mm, while Jeju Island is expected to see around 5mm.Areas experiencing rain may face intense downpours accompanied by gusty winds and thunderstorms, raising concerns about river flooding, lowland inundation, and landslides.Hot weather will persist in southern regions, with morning lows expected between 22 to 26 degrees Celsius and daytime highs ranging from 26 to 37 degrees Celsius. The highest temperatures are forecasted to reach 29 degrees in Seoul, 28 degrees in Incheon, 27 degrees in Chuncheon, 31 degrees in Daejeon, 32 degrees in Jeonju and Gwangju, 34 degrees in Daegu and Ulsan, and 33 degrees in Jeju.Thunderstorms and gusty winds are also expected over the Yellow Sea and East Sea, necessitating caution against maritime safety incidents. Wave heights are predicted to be between 0.5 to 1.5 meters in the East and South Seas, and 0.5 to 1.0 meters in the Yellow Sea, with offshore wave heights also expected to be between 0.5 to 1.5 meters across all seas.* This article has been translated by AI. 2026-07-20 18:36:00
  • Korea Investment Trust CEO Calls for Halt to Single-Stock Leverage Investments
    Korea Investment Trust CEO Calls for Halt to Single-Stock Leverage Investments Baek Jae-kyu, CEO of Korea Investment Trust Management, urged investors to stop investing in single-stock leverage products. On July 20, Baek expressed his concerns on Facebook, stating, "As the head of a firm managing individual stock leverage exchange-traded funds (ETFs), I apologize for saying this." He noted, "No one could have predicted such high volatility. I expect to face criticism for saying this now, but I hope you will consider halting your investments." Baek emphasized, "The conclusion of this message is to avoid investing in individual stock leverage and inverse double ETFs." He further explained, "Even if the underlying asset returns to its original price over time, the ETF price may not recover. Especially with the current high volatility of the underlying asset, the structure leads to daily losses." Baek included a chart showing the price trends of SK Hynix's underlying asset and the corresponding leverage and inverse ETFs. He clarified, "The table below is based on actual cases and focuses on the ETFs with the highest trading volume and assets under management (AUM)." According to the data, SK Hynix's stock price fell from 2,243,000 won on May 27 to 1,842,000 won on July 16, a decline of 17.9%. During the same period, the largest single-stock leverage ETF for SK Hynix recorded a loss of 47.5%. While the theoretical loss based on the stock's decline would be 35.8%, the actual loss exceeded this by 11.7 percentage points. In the case of the single-stock inverse ETF for SK Hynix, it theoretically should have recorded a 35.8% gain due to the stock's decline, but it actually incurred a loss of 31.1%. The discrepancy between the theoretical return and actual performance was 66.9 percentage points. Korea Investment Trust Management operates the 'ACE Samsung Electronics Single-Stock Leverage' and 'ACE SK Hynix Single-Stock Leverage' products.* This article has been translated by AI. 2026-07-20 18:32:00
  • Financial Supervisory Service Tightens Regulations on Capital Increases, Pressuring Listed Companies
    Financial Supervisory Service Tightens Regulations on Capital Increases, Pressuring Listed Companies The Financial Supervisory Service (FSS) is actively requiring corrections to securities registration statements for capital increases that may harm the rights of common shareholders, raising the bar for fundraising among listed companies. The number of correction requests made by the FSS this year has increased by nearly 50% compared to the same period last year. While companies are seeking funds to improve their financial structures and expand their businesses due to stricter delisting requirements, financial authorities are scrutinizing the purposes of fund usage and shareholder protection measures more rigorously.According to the FSS's electronic disclosure system, a total of 265 listed companies, including 50 on the KOSPI and 215 on the KOSDAQ, announced capital increase decisions this year. This marks a 44.0% increase from 184 companies during the same period last year. However, the amount raised through capital increases from January to May this year was 1.814 trillion won, a 27.7% decrease from 2.508 trillion won in the same period last year. Although companies are pushing for capital increases, the stringent review process by financial authorities has led to a decline in actual fundraising outcomes.A notable example is Hanwool Semiconductor, which submitted its fourth correction to its securities registration statement on July 16, reducing the scale of its capital increase. The number of shares offered was cut from 4.7 million to 3.8 million, and the fundraising amount was lowered from 22.8655 billion won to 19.076 billion won. The allocation ratio of new shares to existing shares was also adjusted from 0.7049 to 0.5643. This reduction was made following repeated correction requests from financial authorities, which prompted the company to revise its board resolution.ToolGen also submitted its third correction report on the same day. After receiving two correction requests from the FSS on June 1 and July 2, the company enhanced its communication procedures with shareholders in this report. It publicly announced its plan to hold an investor relations (IR) meeting on July 1 and included details of a face-to-face briefing held on July 9 at the Korea Financial Investment Education Institute.Since last year, financial authorities have prioritized the review of capital increases that may harm shareholder rights, intensifying their scrutiny. They are not only requiring simple disclosure corrections but are also comprehensively examining the basis for discount rate calculations, fund usage plans, potential conflicts of interest with major shareholders, and the necessity of third-party allocations.This year, the most notable cases involved Hanwha Solutions and EcoPro BM. Hanwha Solutions attempted a 2.4 trillion won capital increase on March 26 to improve its financial structure but received two correction requests from the FSS. After modifying its securities registration statement three times, it ultimately reduced the capital increase to 1.7 trillion won and passed the review.EcoPro BM also decided on a shareholder allocation capital increase of approximately 1.2 trillion won on June 30 but received its first correction request from the FSS on July 14. The company explained that the funds were for growth investments, including a nickel refining project in Indonesia and a factory investment in Hungary, but financial authorities demanded clarifications on the necessity of the investments, fund usage plans, and measures to protect common shareholders. As of July 20, the company has not submitted a correction report.While the industry agrees with the policy direction of strengthening shareholder protection, there are concerns that the burden of fundraising for companies is increasing. A financial investment industry official stated, "It is becoming increasingly difficult for listed companies to raise funds through various methods such as capital increases, convertible bonds (CB), and bonds with warrants (BW). The heightened scrutiny is raising the perceived costs of maintaining a listing, which may weaken the incentive to remain publicly traded." 2026-07-20 18:24:00
  • Kakao Mobility Faces Revenue Decline Amid New Regulations
    Kakao Mobility Faces Revenue Decline Amid New Regulations Kakao's upcoming second-quarter earnings report is drawing attention as it is expected to reflect a decline in mobility business revenue. This drop follows the implementation of a law in May that prohibits franchise fees from idle taxi operations, impacting Kakao Mobility's earnings while the company seeks to expand into new business areas.According to industry sources, the revised Passenger Transport Business Act took effect on May 11, preventing platform franchise operators from collecting fees on fares generated from idle taxi operations. Previously, franchise taxis like Kakao T Blue paid a certain fee to the platform even when picking up passengers off the street, but this fee is no longer applicable under the new law.Kakao Mobility is included in the 'Other Platform' segment of Kakao's consolidated financial results. In the first quarter of this year, revenue from this segment was approximately 50.9 billion won, a 30% increase compared to the same period last year, but a decrease from the previous quarter's 52.8 billion won. Analysts believe that the second-quarter results will provide the first insights into how the ban on idle taxi fees has affected the profitability of the mobility business.Market estimates suggest that idle taxi operations accounted for 15% to 20% of the previous franchise fees, amounting to about 30 billion won annually.A Kakao Mobility official stated, "Some financial impact is inevitable due to changes in the revenue structure of the franchise business. We plan to diversify our business portfolio to ensure the platform's sustainability."Experts analyze that this regulation could change the revenue structure of the domestic mobility platform industry beyond just affecting specific companies. Kim Dong-young, a researcher at the Korea Development Institute (KDI), noted, "The ban on idle taxi fees will be a significant blow to platforms. More importantly, if even the dominant player in the taxi platform market struggles to generate stable profits, it may weaken the incentive for new entrants to join the market." He added, "If market competition decreases, there is also a possibility that service innovation will be stifled."Concerns have been raised that if drivers prefer idle taxi operations, which do not incur fees, over platform calls, waiting times for platform calls could increase. This could lead to a further decline in platform calls following the revenue drop.Kakao Mobility is accelerating efforts to reduce its reliance on the taxi business. In its first-quarter earnings announcement, the company explained that it is expanding its operations beyond the taxi platform to include parking and last-mile logistics. Recently, it has also been nurturing new businesses such as physical AI. However, these new revenue sources have yet to be reflected in its financial results, making the search for new income streams urgent.An industry insider remarked, "For domestic taxi platforms, franchise fees from drivers have been a key revenue source, but with the elimination of idle taxi fees, it has become difficult to maintain the existing business structure. Finding new revenue sources beyond taxis has become unavoidable."* This article has been translated by AI. 2026-07-20 18:16:00
  • 2026 FIFA North America World Cup Ends with Record Attendance and Revenue
    2026 FIFA North America World Cup Ends with Record Attendance and Revenue The 2026 FIFA North America World Cup concluded, leaving an unprecedented economic impact. Analysts attribute this success to the robust capital of the North American market combined with a meticulously calculated commercialization strategy.The tournament's explosive economic effect is evident in the official attendance figures. A total of 6,810,966 fans attended the 104 matches held across 16 cities in the United States, Canada, and Mexico. This figure is nearly double the 3.4 million attendees at the previous 2022 Qatar World Cup. The average attendance per match was 65,490, with an overall occupancy rate of 99.7%.The tournament also broke a 32-year-old attendance record. The previous record of 3,587,538 set during the 1994 U.S. World Cup was surpassed early in the group stage, which saw 3,605,357 attendees. The final match between Spain and Argentina drew a full house of 80,663 spectators.Domestic broadcast ratings reached all-time highs. The Round of 16 match between the U.S. and Belgium attracted approximately 42 million viewers across English and Spanish broadcasts, setting a new record for a single soccer match in U.S. history. Notably, viewership peaked at 36.8 to 36.9 million between 9:15 and 9:30 PM Eastern Time, easily surpassing the previous record of 26.78 million for the Argentina-France final at the 2022 Qatar World Cup.The expansion of the tournament also resulted in record compensation for participating countries. The total prize pool for this tournament was $727 million, a 65% increase from the $440 million awarded in Qatar. Spain, the tournament champion, received a historic $50 million prize, the highest in World Cup history. Including the $10 million for reaching the finals and additional support funds, Spain secured a total of $61.5 to $62.5 million. The Spanish Football Association plans to distribute 45% of the prize money, amounting to $22.95 million, to the players, resulting in approximately $880,000 per player.Runner-up Argentina received $33 million, third-place England $29 million, and fourth-place France $27 million. South Korea, eliminated in the group stage, earned a total of $21.5 million from participation fees and performance bonuses.Behind the explosive success lies a thorough commercial strategy. The three co-hosting countries utilized existing NFL and MLS stadiums, significantly reducing infrastructure costs.In ticket sales, the tournament introduced a dynamic pricing model, commonly used in U.S. professional sports, to maximize revenue. Hospitality packages targeting VIP and corporate clients saw some tickets priced as high as $6,730. The minimum ticket price for the final match was $4,185, seven times higher than the previous tournament. FIFA expects to generate over $3 billion in revenue from ticket sales and packages, charging a 15% transaction fee through its official resale platform.Broadcast rights and sponsorship revenues also surged. FIFA anticipates $3.9 billion from broadcast rights and $2.8 billion from global corporate sponsorships. App and website traffic saw explosive growth compared to previous tournaments.Notably, the introduction of hydration breaks, providing approximately three minutes of pause in each half, has been praised for offering broadcasters and advertisers a new 'golden slot.' According to the Financial Times, Fox Sports, which secured English broadcast rights for $485 million, is estimated to have earned about $250 million from advertising during these breaks, recovering more than half of its broadcast rights fee.The global sports betting market also benefited significantly. According to the BBC, Macquarie, a global investment bank, estimates that total betting amounts for this tournament could reach $50 billion, averaging $5 billion per match, due to the increased number of games. Flutter Entertainment also anticipates double the betting volume compared to the previous tournament, driven by growth in the U.S. and Brazilian markets.Outside the stadium, merchandise marketing generated record economic effects. FIFA sold pieces of grass from the New York-New Jersey stadium where the final was held, packaged with gold-embossed tickets for $3,000, projecting sales revenue of about $11.2 million from the grass alone.For the first time in World Cup history, a 'championship ring' marketing strategy was introduced, borrowing from North American sports traditions. A total of 2,026 rings were produced, with 1,996 available for official sale to fans, excluding the 30 awarded to the winning team. According to The Times, the selling price is estimated to range from $10,000 to $150,000.FIFA's total revenue from this tournament is projected to reach at least $13 billion, significantly surpassing the $7.6 billion from the Qatar tournament and more than double the total revenue from the 2024 Paris Olympics, estimated at around €4.49 billion ($7.75 billion).According to major foreign media outlets, Marion Laboure, a senior strategist at Deutsche Bank Research, stated, "There is no doubt that FIFA is the biggest winner of this tournament."Having confirmed a massive revenue model, FIFA is reportedly considering expanding the number of participating countries to 64, targeting the vast markets of China and India. 2026-07-20 18:16:00
  • Big Pharma Targets Rare Disease Market Amid Patent Expirations
    Big Pharma Targets Rare Disease Market Amid Patent Expirations Global competition for investments in rare disease treatments is intensifying. As major blockbuster drugs approach patent expiration, big pharmaceutical companies are seeking new growth opportunities by exploring external pipelines. The rare disease sector, characterized by a small patient population but significant unmet demand, has emerged as a promising alternative.According to industry reports, the global market for rare disease treatments is projected to reach $187 billion by 2024. In South Korea, improvements in regulations and expanded collaborative development are expected to invigorate the market further.While the overall patient population for rare disease treatments may be small, the clear diagnostic criteria and distinct patient groups allow for efficient clinical trial designs. Additionally, the limited availability of alternative treatments makes pricing strategies easier to establish. For global pharmaceutical companies facing revenue gaps due to patent expirations, the rare disease sector offers a dual opportunity for profitability and differentiation.Global transactions are also on the rise. Biogen recently acquired Apellis Pharmaceuticals for approximately $5.6 billion to enhance its rare disease portfolio. Apellis holds treatments for rare kidney diseases, including 'Empaveli,' and a therapy for geographic atrophy, 'Syfovre.'Vertex Pharmaceuticals has also invested around $10 billion to acquire Crinetics Pharmaceuticals, a company specializing in rare endocrine diseases. This acquisition provides Vertex with access to 'Palsofia,' an FDA-approved oral treatment for acromegaly, and a candidate for congenital adrenal hyperplasia, 'Atumelanant.'The domestic rare drug market in South Korea is still in its early stages and heavily reliant on imports. According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the domestic production of rare drugs is estimated at 263 billion won, while imports amount to about 405 billion won as of 2024.As a result, companies are opting for strategies that involve role-sharing and collaborative development rather than large-scale mergers and acquisitions. Given the market's relatively small size, it is more effective for companies with strengths in different stages of development to collaborate, enhancing the likelihood of commercialization.Government policies are also supporting market expansion. Earlier this year, a joint government announcement outlined measures to strengthen support for rare and severe intractable diseases, reducing the time for drug registration from 330 days to 150 days. This expedited registration process is expected to increase investment and development incentives in the rare disease sector.Domestic companies are achieving notable development milestones. Yuhan Corporation's candidate treatment for Gaucher disease, 'Y35995H,' has received rare disease designation from both the U.S. FDA and the European Medicines Agency (EMA). GC Pharma and bio-venture Nobel Pharma are jointly developing 'GC1130A,' a treatment for Type A Sanfilippo syndrome, which has secured rare disease designations from the FDA and EMA. Additionally, GC Pharma and Hanmi Pharmaceutical are collaborating on a Fabry disease treatment, 'LA-GLA,' which has also received FDA rare disease designation.The Pharmaceutical and Bio-Pharma Manufacturers Association stated, "As interest in rare drugs continues to grow within the pharmaceutical and bio sectors, related pipelines are steadily increasing. With the rising proportion of biopharmaceuticals, companies are actively engaging in development, leading to the accumulation of innovative research and development capabilities in South Korea." They further emphasized the need for comprehensive and systematic support, including regulatory improvements, financial assistance, and enhanced clinical infrastructure, to ensure that domestic companies can translate their development capabilities into actual products and market entry.* This article has been translated by AI. 2026-07-20 18:12:00
  • SK Hynix Union Reacts Strongly to Chairman Chois Comments on Bonus System
    SK Hynix Union Reacts Strongly to Chairman Choi's Comments on Bonus System SK Hynix's labor and management are facing intense conflict during this year's wage and collective bargaining negotiations, following Chairman Choi Tae-won’s suggestion of possible changes to the bonus system. Amid the union's opposition to the company's proposal to pay bonuses in company stock, Choi's comments have raised concerns among employees, who fear this may be a pretext to reduce the existing bonus structure.On July 20, members of the SK Hynix labor union expressed their frustrations in anonymous communication channels and community forums, sharing Choi's remarks. They criticized management for using government policies as an excuse for insincere negotiations, stating, "Now they are publicly pressuring us to change the bonus system itself."One union member pointed out, "They only mention 'stakeholder interests' when they want to cut bonuses. Employees have worked hard overnight to achieve results, and now they want to take away fair compensation."Previously, during a recent meeting at the Jeju Forum hosted by the Korea Chamber of Commerce and Industry, Choi acknowledged the controversy surrounding SK Hynix's bonuses, saying, "I believe there are positive impacts, but if the happiness of our members infringes on stakeholder interests, we need to address that issue." This marks the first time Choi has officially mentioned the possibility of revising the bonus system.Another union member echoed these sentiments in a community post, stating, "How can we talk about changing bonuses when we are already receiving less than Samsung Electronics? This is exactly why unions exist," urging a strong response against management.Industry observers believe Choi's comments could introduce new variables into the ongoing collective bargaining negotiations at SK Hynix. With the mention of potential changes to the bonus system alongside the stock payment proposal, the union's resistance against management is expected to intensify.The union held its third round of negotiations on July 14 but failed to bridge the gap over the bonus payment method. During the talks, management reportedly proposed a plan to pay bonuses in company stock, similar to Samsung Electronics' approach.Currently, employees can choose to receive up to 50% of their bonuses in company stock, but only if they opt for it. Those who hold the stock for more than a year receive an additional cash payment equivalent to 15% of the stock purchase price.However, management has indicated that starting next year, they plan to implement a system mandating that 50% of bonuses be paid in company stock. This would include restrictions on selling the stock for a certain period, aiming to encourage long-term employment while enhancing shareholder value and responsible management.In response, the union has firmly rejected this proposal, viewing it as a significant retreat in cash compensation. They believe it falls far short of the compensation levels they initially expected and could potentially reduce the actual amounts received.As the semiconductor market shows signs of recovery, concerns are growing that prolonged conflict over bonuses could disrupt business operations.An Gi-hyun, executive director of the Korea Semiconductor Industry Association, stated, "The longer the tug-of-war over bonuses continues, the more direct and indirect damage will spread not only to SK Hynix but also to the entire ecosystem of related materials and components. For the sake of strengthening the competitiveness of the domestic semiconductor industry, a swift resolution between labor and management is urgently needed."* This article has been translated by AI. 2026-07-20 18:12:00