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  • President Lee Questions $30 Million Threshold for Luxury Homes
    President Lee Questions $30 Million Threshold for Luxury Homes President Lee Jae-myung has raised the possibility of strengthening property taxes on luxury homes, making the definition of 'luxury housing' a key issue in the ongoing tax reform discussions. In Seoul, it has been reported that more than one in ten apartments are already valued over 3 billion won ($2.3 million), suggesting that the tax base could expand significantly depending on how the threshold is set.According to data obtained by Aju Economy from real estate firm R114, as of June 12, out of a total of 1,468,824 apartments in Seoul, 166,554 units, or 11.3%, are valued at over 3 billion won. This means that more than one in ten apartments in the city already exceeds this price point.In terms of price distribution, the largest segment is apartments priced below 1 billion won, totaling 565,291 units (38.5%). This is followed by 320,440 units (21.8%) priced between 1 billion and 1.5 billion won, and 223,354 units (15.2%) priced between 1.5 billion and 2 billion won. Additionally, there are 113,854 units (7.8%) priced between 2 billion and 2.5 billion won, 79,331 units (5.4%) between 2.5 billion and 3 billion won, and 166,554 units (11.3%) exceeding 3 billion won.In total, there are 359,739 apartments priced over 2 billion won, which accounts for 24.5% of the total. This indicates that one in four apartments in Seoul is already valued above this threshold.The average sale prices by price range are as follows: below 1 billion won is 661 million won, between 1 billion and 1.5 billion won is 1.2347 billion won, and between 1.5 billion and 2 billion won is 1.728 billion won. For apartments priced between 2 billion and 2.5 billion won, the average is 2.2197 billion won, between 2.5 billion and 3 billion won is 2.7378 billion won, and those exceeding 3 billion won average 4.5589 billion won.Earlier, during a Cabinet meeting on July 14, President Lee sought public input on the threshold for luxury housing, noting that '30 billion won' was the most frequently selected option. He remarked, 'Isn't that too harsh?' and added, 'If a house is valued at 3 billion won, its official price is only in the low tens of millions.' He further expressed surprise, stating, 'I thought it would be around 5 billion won.'Lee's comments suggest that if homes valued at 3 billion won are uniformly classified as luxury housing, the number of properties subject to taxation could increase significantly.Market analysts believe the government may set the luxury housing threshold between 4 billion and 5 billion won, although no specific criteria have been finalized yet. If established at this level, major new developments in Gangnam and high-end apartments along the Han River are expected to be prioritized for taxation.The government plans to begin a public discussion on tax reform today, followed by a national forum on July 23, with proposals for changes to luxury housing taxes expected to be included in a tax reform bill to be announced by the end of the month.Currently, the comprehensive real estate tax applies basic deductions and tax credits for seniors and long-term homeowners, but there have been ongoing concerns that lower-value multi-homeowners may bear a heavier tax burden. As a result, discussions are underway to manage luxury single-home properties under a separate tax bracket, but the scope of taxable properties will vary significantly depending on the threshold set.* This article has been translated by AI. 2026-07-16 10:16:00
  • Hyundai Rotem Develops Autonomous Driving Technology for Rail Vehicles
    Hyundai Rotem Develops Autonomous Driving Technology for Rail Vehicles Hyundai Rotem has begun enhancing autonomous driving technology for rail vehicles based on physical artificial intelligence (AI). The company is developing an automatic driving assistance system (ADAS) for trains, aiming to accelerate its entry into the global rail market.On July 16, Hyundai Rotem announced the development of a rail vehicle-specific ADAS. This system detects obstacles on the tracks and alerts the driver to potential hazards, helping to prevent collisions.Previously, Hyundai Rotem initiated the development of the rail vehicle ADAS while participating in a national project led by the Ministry of Trade, Industry and Energy in 2023, focusing on a hydrogen-powered tram demonstration.Using operational data from the Warsaw tram in Poland, the company has validated the technology and safety of the ADAS. Feedback from Poland has been incorporated to improve the user interface (UI) and warning systems. Hyundai Rotem aims to integrate the ADAS with control systems in the future.Rail vehicles require longer stopping distances and must anticipate various variables, including distant obstacles and environmental conditions.Hyundai Rotem plans to leverage its autonomous driving technology to capture export markets, particularly targeting the high-technology verification level in Taiwan for ADAS-equipped rail vehicles.A Hyundai Rotem official stated, "Through continuous investment in research and development, we aim to lead the global market with domestic physical AI technology and drive innovation in rail safety." Meanwhile, Hyundai Rotem is expanding its investments in future rail technologies, including hydrogen-powered trams and high-speed trains.* This article has been translated by AI. 2026-07-16 10:16:00
  • KOSPI Plummets Over 5%, Triggering Sell-side Circuit Breaker for 19th Time This Year
    KOSPI Plummets Over 5%, Triggering Sell-side Circuit Breaker for 19th Time This Year KOSPI dropped nearly 6% in early trading, prompting the activation of a sell-side circuit breaker in the stock market.On July 16, the Korea Exchange announced that the KOSPI 200 futures price fell more than 5% from the reference price for over a minute, leading to the circuit breaker activation at 9:10 a.m.The mini KOSPI 200 futures, which are the most recent contracts, dropped from a reference price of 1,165.32 points to 1,104.40 points at 9:10:26 a.m., marking a decline of 5.22%.As a result, from 9:10 a.m., the effectiveness of sell orders in program trading on the stock market was suspended for five minutes. At that time, program trading recorded a net sell of 188.3 billion won.This circuit breaker activation marks the 37th instance this year, with 19 sell-side and 18 buy-side activations recorded.Meanwhile, as of 10 a.m. on the same day, the KOSPI was down 432.32 points (5.93%) at 6,852.09.In the stock market, individual investors net bought 2 trillion won, while foreign and institutional investors net sold 1.08 trillion won and 1.01 trillion won, respectively, contributing to the index decline.Among the top market capitalization stocks, Samsung Electronics (-7.87%), SK Hynix (-10.76%), SK Square (-11.94%), Samsung Electro-Mechanics (-9.70%), and Hyundai Motor (-2.30%) all showed weakness.* This article has been translated by AI. 2026-07-16 10:12:00
  • Jensen Huangs Visit to Japan Highlights AI Opportunities
    Jensen Huang's Visit to Japan Highlights AI Opportunities Last May and June, Jensen Huang, CEO of NVIDIA, traveled extensively across Asia. He first visited China, then spent an extended period in Taiwan meeting with semiconductor supply chain companies, including TSMC. In early June, he traveled to South Korea to discuss AI collaboration with major firms like Samsung Electronics and SK Group. However, Japan was notably absent from his itinerary. This omission left Japan's industrial sector feeling slighted, with concerns that NVIDIA had chosen Taiwan and South Korea as key partners in the AI era while overlooking Japan. This led to discussions about 'Japan passing' amid fears that the country was falling behind in the generative AI and advanced semiconductor race. On July 15, just over a month after his visit to South Korea, Huang made a special trip to Japan. This marked his first official visit to the country in about nine months since October 2025. During this visit, he unveiled collaboration plans with Japanese companies, stating in Tokyo, "Physical AI presents a significant opportunity for Japan," and referred to it as the "beginning of AI in Japan." He emphasized the need for sovereign AI, arguing that a nation's intelligence should be nurtured and developed domestically. NVIDIA will provide GPU and AI development tools to Toyota's Woven City, utilizing its technology for traffic control systems, next-generation vehicles, and robotics in manufacturing. In collaboration with Kawasaki Heavy Industries, NVIDIA plans to establish an AI shipyard, creating a digital twin of the shipyard in a virtual space and deploying AI agents for design, material procurement, production, and quality control. NVIDIA's technology will also be involved in developing AI robots that can move around the workspace and weld large components. Mizuho Financial Group has partnered with NVIDIA to build its own AI computing infrastructure, aiming to utilize AI internally without exposing customer information and corporate secrets. The bank plans to transition many tasks traditionally handled by humans, such as document preparation, information gathering, and credit assessment, to AI. Japan's national physical AI company, Noetra, is also expected to utilize NVIDIA's latest semiconductors. Noetra was established with the support of SoftBank, NEC, Honda, and Sony Group, with 44 Japanese companies investing and the government providing up to 1 trillion yen in support. Huang's visit to Japan differed from his trips to China, Taiwan, and South Korea. In China, he focused on the vast market; in Taiwan, he assessed the semiconductor supply chain centered around TSMC; and in South Korea, he discussed memory semiconductors and AI infrastructure with Samsung and SK. In Japan, he addressed the future of manufacturing and the robotics industry, highlighting Toyota's automotive innovations, Kawasaki Heavy Industries' shipyard, and the physical AI project involving Japanese companies. During his visit, Huang recognized the potential for AI to drive advancements in automotive technology, robotics, and production processes in factories and shipyards. While Japan has fallen behind the U.S. and China in the generative AI competition, the integration of AI with real-world machinery presents a different scenario. Japan is home to major players like Toyota and Honda, as well as Fanuc, Yaskawa Electric, and Kawasaki Heavy Industries, which have long-standing competitive advantages in precision motors, gear reducers, sensors, industrial robots, and factory automation technologies. The data accumulated over decades in manufacturing is also a valuable asset. Physical AI is revitalizing these strengths. While generative AI focuses on creating text and images, physical AI operates real-world machines, enabling robots to work in factories, cars to drive autonomously, and AI to manage production processes in shipyards. Huang's visit included more than just industrial collaboration. On the evening of July 15, he attended a joint event in Akihabara, Tokyo, hosted by NVIDIA and the gaming company Sega. NVIDIA faced a management crisis in the mid-1990s, and it is believed that without Sega's investment at that time, the company might not have survived. A former Sega vice president who made that investment was also present at the event. Even after becoming the CEO of a global AI company, Huang has not forgotten the support he received from Japanese firms. This aspect of his visit underscores its significance, alongside the major collaboration announcements with Toyota and Kawasaki Heavy Industries. That night, he reportedly visited an izakaya in Kanda, Tokyo, where he attended a scheduled social gathering with Japanese business executives. During the day, he discussed physical AI and sovereign AI, and in the evening, he reaffirmed his long-standing relationship with Sega. His interactions with Japanese business leaders over drinks demonstrated that this visit was more than just a series of contract announcements. Japan is a market NVIDIA cannot afford to overlook. As AI semiconductors extend beyond data centers into automobiles, robotics, and factory equipment, the market potential expands significantly. Huang's emphasis on Japan's manufacturing capabilities reflects a calculated business judgment. Just weeks ago, Japan seemed to be the country missing from Huang's Asian tour. However, this visit has changed that perception. Japan was not overlooked; it occupies a distinct role on a separate stage compared to China, Taiwan, and South Korea. Although he visited last, Huang's unveiling of plans in Japan was substantial. It included Toyota's future city and automotive innovations, Kawasaki Heavy Industries' shipyard, and the physical AI project involving 44 Japanese companies. He also reaffirmed his long-standing connection with Sega. While Japan may lag in the generative AI competition, it is preparing for an era where AI drives robotics, factories, and automobiles. The core of Huang's significant announcements in Japan lies precisely here.* This article has been translated by AI. 2026-07-16 10:12:00
  • GS Shop Launches Subscription Service for AI Home Companion Robot Chemifriends
    GS Shop Launches Subscription Service for AI Home Companion Robot 'Chemifriends' GS Shop is entering the smart care appliance market with the launch of a rental subscription service for an AI home companion robot.On July 19, GS Shop will introduce the AI home companion robot 'Chemifriends,' developed by the domestic robotics company Robocare. Chemifriends utilizes AI autonomous driving technology to learn the layout of a home and move to desired locations upon user request.The compact robot measures 30 cm in height and weighs 4 kg, with a maximum operating time of three hours on a full charge. When the battery level drops below 10%, it autonomously returns to its charging station to recharge.Key features include daily management, AI conversation, cognitive training, and emergency calls. Users can set reminders for medication, meals, and hospital visits, while caregivers can monitor daily records through a dedicated application.The conversation feature incorporates ChatGPT and proprietary AI, allowing it to remember previous conversations and provide contextually relevant dialogue. If it detects a fall or an emergency call, it sends notifications to caregivers, who can remotely control the robot to check on the situation or communicate with the user.GS Shop plans to offer Chemifriends through a rental subscription model to reduce the initial purchase burden. The company also aims to expand its applications beyond senior care to support single-person households and children's education.Kim Jun-tae, MD of GS Shop's appliance team, stated, "We will continue to discover and introduce appliances tailored to our customers' diverse lifestyles."Meanwhile, GS Shop has recently implemented an integrated work portal, 'Xhub+,' which consolidates digital work tools and AI agents, expanding the use of AI in customer service and internal operations.* This article has been translated by AI. 2026-07-16 10:12:00
  • Bank of Korea Raises Key Interest Rate to 2.75%, First Tightening in 3.5 Years
    Bank of Korea Raises Key Interest Rate to 2.75%, First Tightening in 3.5 Years The Bank of Korea raised its key interest rate from 2.50% to 2.75% on July 16, marking the first tightening of monetary policy in three and a half years.The Monetary Policy Committee convened at the Bank's headquarters in Jung-gu, Seoul, and decided to increase the rate by 0.25 percentage points, the first hike since January 2023, when it moved from 3.25% to 3.50%.This decision is seen as a response to a combination of factors, including inflation, growth rates, and exchange rates. Governor Shin Hyun-song stated at a press conference following the May Monetary Policy Committee meeting that he believes it is necessary to raise the key interest rate at an appropriate time.In his speech commemorating the 76th anniversary of the Bank's founding on June 12, he emphasized the need to prioritize price stability and to raise rates without delay. Similar sentiments were expressed during a report to the National Assembly on July 9.Inflationary pressures have intensified due to the prolonged conflict in the Middle East, which began in late February. The consumer price index, reflecting the cost of living, rose from 1.8% in February to 3.4% in June, with monthly increases of 2.3% in March, 2.9% in April, and 3.3% in May.In a report on July 17 regarding the operation of its inflation target, the Bank projected that the consumer price inflation rate would be around 3% in the second half of the year. The forecast for consumer price inflation was revised upward from 2.0% to 2.7% in May, indicating expectations for further increases.Meanwhile, growth forecasts are improving. Major international investment banks project an average GDP growth rate of 3.0% for South Korea this year.The government, in its economic growth strategy announced on July 14, also set a GDP growth forecast of 3.0%, which is 0.4 percentage points higher than the Bank's May estimate of 2.6%. The Bank is expected to revise its growth forecast upward in its upcoming economic outlook report in August.High exchange rates continue to be a concern. The won-dollar exchange rate recently fell to the 1,480 won range due to factors such as the conversion of funds for SK Hynix's American Depositary Receipts and a reduction in foreign stock selling pressure, but it remains high compared to long-term averages.Household debt and housing prices, key considerations in monetary policy, have also contributed to the decision to raise rates. As of the end of last month, the balance of household loans from deposit banks, including policy mortgage loans, increased by 7.6 trillion won compared to the end of May, marking the largest increase in nearly two years.On July 9, the Bank reported to the National Assembly that housing prices in the metropolitan area continue to rise sharply, and the pressure for household debt growth is also increasing.* This article has been translated by AI. 2026-07-16 10:08:00
  • Samsung Electronics and SK Hynix Drop Amid U.S. Semiconductor Market Decline
    Samsung Electronics and SK Hynix Drop Amid U.S. Semiconductor Market Decline Samsung Electronics and SK Hynix are experiencing significant declines in early trading, with shares dropping 8% and 11%, respectively, following a sharp downturn in the U.S. semiconductor market.As of 9:40 a.m. on July 16, Samsung's stock was trading at 257,000 won, down 22,500 won (8.05%) from the previous trading day. At the same time, SK Hynix shares fell to 1,852,000 won, a decrease of 230,000 won (11.05%).The decline in the U.S. market, where the Philadelphia Semiconductor Index fell by 2.08%, has dampened investor sentiment. While major U.S. indices closed higher, buoyed by gains in big tech and financial stocks, semiconductor shares faced heavy profit-taking.Micron Technology saw a steep drop of 8.02%, while other semiconductor and AI infrastructure stocks, including AMD (-3.46%), Intel (-4.43%), Marvell Technology (-7.27%), Dell Technologies (-9.80%), Western Digital (-8.78%), and SanDisk (-8.13%), also experienced significant losses.Market analysts suggest that a report from Reuters indicating that AI cloud company CoreWeave is considering a hedging strategy in response to falling memory prices has raised concerns about a peak in memory market conditions. Additionally, delays in AI data center construction in some U.S. regions due to local opposition, along with the disappointing IPO pricing of China's largest DRAM manufacturer, CXMT, have further weakened investor confidence.* This article has been translated by AI. 2026-07-16 10:08:00
  • KOSPI slips below 7,000 again as Morgan Stanley sparks chip sell-off
    KOSPI slips below 7,000 again as Morgan Stanley sparks chip sell-off SEOUL, July 16 (AJP) - South Korean stocks swung sharply lower shortly after the market opened on Thursday, giving up much of the previous session's explosive gains as investors cashed in on the rally following another overnight sell-off in U.S. semiconductor shares. Fresh concerns over artificial intelligence (AI)-related infrastructure spending, sparked by a cautious report from U.S. investment bank Morgan Stanley, added to the pressure on technology stocks. Investor sentiment weakened further after the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.75 percent on Thursday, adding to the headwinds for equities. The benchmark KOSPI fell 4.91 percent to 6,926.65 in early trading, falling back below the 7,000 mark a day after soaring over 6 percent. The Korea Exchange activated the temporary curb on program sell orders at around 9:10 a.m. as the decline accelerated. The junior KOSDAQ also dropped 2.45 percent to 809.08, suggesting the extreme volatility gripping Seoul's stock market. The retreat followed a mixed session on Wall Street. Although last month's index for producer prices fell 0.3 percent from the previous month and annual producer inflation eased to 5.5 percent from 6 percent, reducing expectations of further Federal Reserve tightening, investors rotated out of semiconductor shares. Sentiment was further dented by a report from Morgan Stanley, which warned that rising electricity costs and tighter environmental regulations were leading to delays and cancellations of data-center projects, reviving concerns that the AI infrastructure investment boom could be losing momentum. The renewed worries weighed heavily on chip stocks. The Philadelphia Semiconductor Index fell 2.08 percent, and Micron Technology plunged 7.94 percent. Marvell Technology, Intel and AMD lost 7.27 percent, 4.43 percent and 3.46 percent, respectively. SK hynix ADR tumbled 9.00 percent as concerns emerged over potential delays in data-center construction, adding pressure to Korean chipmakers. The weakness quickly spilled over to Seoul's technology sector. Samsung Electronics and SK hynix came under renewed selling pressure as investors unwound positions following the previous session's sharp rally, with profit-taking spreading across semiconductor-related stocks. Samsung Electronics fell 5.72 percent to 263,500 won, while SK hynix slid 8.36 percent to 1,908,000 won. Samsung Electro-Mechanics dropped 7.86 percent, SK Square lost 9.41 percent and Samsung Electronics preferred shares declined 4.84 percent as selling spread across chip-related and Samsung affiliates. But not all sectors joined the selloff. Battery makers outperformed, with LG Energy Solution rising 2.84 percent, while financials also attracted buying as KB Financial gained 2.26 percent. Samsung Biologics edged up 0.43 percent among large-cap defensives. Auto-related stoks were mixed, with Hyundai Motor falling 2.19 percent while affiliate Kia was little changed, up 0.14 percent. Shipbuilders remained resilient as HD Hyundai Heavy Industries advanced 1.91 percent and Hanwha Aerospace gained 0.86 percent. Shinhan Financial also climbed 2.98 percent. KOSDAQ's heavyweights also retreated, with Alteogen slipping 1.73 percent to 283,500 won, EcoPro BM falling 2.15 percent to 118,300 won and EcoPro losing 3.12 percent to 83,700 won. Jusung Engineering dropped 7.30 percent, Rainbow Robotics declined 5.23 percent, Wonik IPS fell 8.48 percent, PSK lost 6.60 percent and Reno Industrial shed 5.01 percent soon after the open. The declines were partially offset by gains in select biotech names, with HLB rising 2.88 percent to 35,700 won and Kolon TissueGene advancing 2.70 percent to 80,000 won. Investors are also awaiting the government's review of single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK hynix. Officials are expected to discuss possible measures later in the day after President Lee Jae Myung called for a swift review, amid concerns that the products have amplified volatility in the Korean stock market. Attention is also shifting to TSMC's second-quarter earnings later in the day, which may set the tone for semiconductor stocks. 2026-07-16 10:07:17
  • Solar Power Competitive Bidding Announced for 1,000 MW with Lower Price Cap
    Solar Power Competitive Bidding Announced for 1,000 MW with Lower Price Cap The Ministry of Climate, Energy and Environment has announced the first competitive bidding for fixed-price contracts for solar power this year. This bidding marks the last year before the reform of the Renewable Portfolio Standard (RPS) system, with the government aiming to expand the adoption of renewable energy while simultaneously driving down prices through a transition to a long-term fixed-price contract market.On July 16, at 10 a.m., the ministry announced the first competitive bidding for fixed-price contracts for solar power for 2026 on the Korea Energy Agency's website. The bidding capacity is set at around 1,000 MW, similar to previous years. The bidding price cap has been set at 147.686 won per kWh, approximately 5% lower than last year's cap.The ministry explained that the bidding capacity was determined based on solar power deployment performance and bidding demand, while the price cap was adjusted considering trends in the domestic solar power levelized cost of energy (LCOE) and market conditions.Additionally, a preferential price will be applied to businesses using carbon verification modules. This system evaluates the carbon emissions generated during the production of solar modules and assigns grades. Using modules rated 1 or 2 will add a preferential price to the bidding selection price, with this year's preferential prices set at 16 won per kWh for grade 1 and 7 won per kWh for grade 2. Compared to last year, the grade 1 price has increased by 4 won, while the grade 2 price has decreased by 2 won.In May, the government outlined its policy direction to gradually lower the contract prices for solar power in its first basic plan for renewable energy. This indicates a commitment to induce economies of scale from the expansion of renewable energy and to initiate a decline in prices.This bidding represents the last RPS-based bidding for solar power operators before the system transition. While the lower price cap may intensify competition among operators, securing a long-term contract could provide revenue stability, suggesting continued interest in participation.The ministry and the Korea Energy Agency will hold an online briefing for operators on July 21, focusing on the changes in this announcement. Shin Jin-soo, the director of renewable energy policy at the ministry, stated, "The reform of the RPS system is key to promoting competition among operators through the long-term fixed-price contract market, ensuring stable long-term profits for selected projects, and facilitating the expansion of deployment and price reduction policies."* This article has been translated by AI. 2026-07-16 10:04:00
  • Han Byeong-do Urges Cooperation from Opposition Amid Boycott
    Han Byeong-do Urges Cooperation from Opposition Amid Boycott Han Byeong-do, the acting leader of the Democratic Party, warned on July 16 that if the People Power Party continues to boycott the National Assembly, it may lead to serious consequences. He also urged the opposition to cooperate in discussions regarding reforms to the Central Election Management Commission, including a recount and a special investigation law.During a policy coordination meeting held at the National Assembly, Han expressed regret that the Assembly, which should be working harder than ever, is currently stalled. He noted that the Democratic Party has urgently requested the convening of a plenary session three times, on July 2, July 9, and today.He added, "Due to the meaningless boycott by the People Power Party, we have been unable to introduce 59 pending bills related to public welfare, the special investigation law for the election commission, and follow-up legislation for three major mega projects."Han specifically criticized the People Power Party for claiming that the Democratic Party is engaging in threats and stalling tactics, reiterating his call for cooperation in forming the new Assembly.He stated, "The public is already aware of who is holding the National Assembly hostage and using public welfare as a bargaining chip. I urge you to return to the Assembly immediately, finalize the formation, and cooperate in processing public welfare bills."Han reiterated his warning, saying, "If the People Power Party continues to ignore public welfare, the Democratic Party will have no choice but to make a serious decision."Additionally, he pointed out that Jang Dong-hyuk, the leader of the People Power Party, is using the current shortage of ballots as a tool to extend his political life, urging for the swift processing of the recount and the special investigation into the election commission.Han remarked, "Jang is inciting baseless conspiracy theories about election fraud while calling for a recount. Now, the People Power Party is changing its stance, saying the special investigation should come first. It is common sense to proceed with the recount to clarify the facts as soon as possible. Stop the conspiracy theories and return to the Assembly to cooperate on the special investigation law, the recount, and election commission reforms."* This article has been translated by AI. 2026-07-16 10:04:00