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  • National Growth Fund to Increase Annual Size to 40 Trillion Won, Expanding Support for Low-Income Households
    National Growth Fund to Increase Annual Size to 40 Trillion Won, Expanding Support for Low-Income Households The Financial Services Commission plans to increase the annual size of the National Growth Fund from 30 trillion won to 40 trillion won. A dedicated asset management firm and fund focused on supporting technology companies will be established next year. To promote regional preferential finance, a 1 trillion won dedicated fund will be created. The commission will also actively encourage private financial institutions to launch inclusive finance-related products, while increasing the share of the second National Growth Fund allocated to low-income households from 20% to 50%.On July 15, the Financial Services Commission outlined these initiatives during a business report meeting held at the Blue House, focusing on the theme of 'An Irreplaceable South Korea Felt in Daily Life.'This meeting marked the first since December of the previous year, approximately seven months ago. The commission announced its plan to raise the annual operating size of the National Growth Fund to 40 trillion won this year, which will increase the total operating size over five years from 150 trillion won to 200 trillion won. New strategic industries, including aerospace, will be included in the support targets. The scale of direct equity investment support will increase from 3 trillion won to over 5 trillion won annually.To support the leap to a technology powerhouse, a separate asset management firm and fund will be established. The commission plans to create a specialized management firm, tentatively named 'Korea Strategic Technology Partners,' by 2027, with a maximum size of 10 trillion won to assist companies holding core technologies. An 880 billion won ultra-long-term technology investment fund will also be launched.Shin Jin-chang, the Secretary General, stated in a back briefing, "We will focus on investing in companies with core technologies that will lead the future and those that, while lagging behind foreign competitors, still possess competitiveness. We will concentrate support on 55 next-generation national strategic technologies to bolster our position as a leading industrial nation."The Financial Services Commission also aims to enhance regional preferential policies to ensure more funds flow into local economies. It plans to allocate 40% of the National Growth Fund to regional investments and establish a new 1 trillion won regional dedicated fund. Additional policy finance institutions, including the Korea Credit Guarantee Fund and the Korea Trade Insurance Corporation, will be included to increase financial supply to local areas. Furthermore, a new 1 trillion won 'Growth Engine Preferential Guarantee' will be established, raising the guarantee ratio to 90%.Shin explained, "We will refine the evaluation criteria for financial institutions to ensure that regional finance is effectively implemented."The commission will also revise the financial system for inclusive finance. Starting this year with the banking sector, a comprehensive evaluation system for inclusive finance and the appointment of chief officers for inclusive finance will be introduced across all sectors next year.Private financial institutions are encouraged to participate as well. Industrial Bank of Korea will offer products for low- to mid-credit borrowers at a single interest rate of 4.9%. NH Nonghyup Financial Group, which currently lacks a microfinance foundation, will be encouraged to expand specialized products. Additionally, a 'Sunshine Loan Special Guarantee Interest Payback' system will reduce interest rates for diligent repayers from 12.5% to 6.3%, while also addressing long-term delinquent debts and preventing illegal private lending.The total growth rate of household debt will be managed within 1.5% this year. The commission will strengthen income assessments when calculating the total debt repayment ratio (DSR) and promote additional capital reserves for high-risk home loans to reduce incentives for lending.Measures will also be put in place to regulate high-performance bonuses. Previously, if income increased by more than 20% compared to the previous year due to bonuses, the loan limit was calculated based on the average income of the last two years. However, the commission is considering extending this average income calculation to three years.The allocation of the second tranche of the National Growth Fund (600 billion won) for low-income households will be increased from 20% to 50% to support low-income youth. 2026-07-15 11:28:00
  • Samsung C&T Expands Smart Living Services with HJ Constructions Haemoro
    Samsung C&T Expands Smart Living Services with HJ Construction's Haemoro Samsung C&T's construction division is partnering with HJ Construction to expand smart living services based on the home platform 'HomeNick.' On July 14, Samsung C&T announced that it signed a business agreement at HJ Construction's headquarters in Seoul to provide the residential service app 'Haemoro by HomeNick.' Under this agreement, Samsung C&T will offer HomeNick-based services to residents of HJ Construction's new apartment brand 'Haemoro' that meet the application criteria. Haemoro by HomeNick provides features such as home IoT control, community facility reservations, notifications and management fee inquiries, vehicle management including parking location confirmation and visitor vehicle reservations, energy management, and convenience services. HJ Construction aims to enhance its competitiveness in the smart living technology market for large-scale maintenance projects and public-private housing contracts through the introduction of this smart home platform. The two companies will also continue to collaborate on smart living solutions, including AI parking services, integrated energy monitoring systems, and noise reduction between floors. Currently, HomeNick is being applied not only in Samsung C&T's Raemian complexes but also in apartments from other brands such as SK Eco Plant, Hanwha, Doosan Construction, HS Hwasung, Woomee Construction, and Hoban Construction, expanding its service ecosystem. Collaboration between construction companies on platforms can enhance the competitiveness of individual brands' living services while leading to the standardization of smart homes and the advancement of resident services. Kim Myung-seok, Vice President of Samsung C&T's Housing Product Marketing Division, stated, “By providing the Haemoro by HomeNick service to residents, we will contribute to creating a premium living space for HJ Construction.” Hwang Ui-ha, Executive Director of HJ Construction's Architectural Business Division, remarked, “This has provided an opportunity to present a higher level of smart living services tailored to the characteristics of each project site, and we will continue to innovate and collaborate in line with changing living trends and premium lifestyles.”* This article has been translated by AI. 2026-07-15 11:24:00
  • NCT 127 Renews Contract with SM Entertainment, Continuing 10-Year Journey
    NCT 127 Renews Contract with SM Entertainment, Continuing 10-Year Journey Group NCT 127 will continue its partnership with its current agency, SM Entertainment.On July 15, SM Entertainment announced, "Members Johnny, Taeyong, Yuta, Doyoung, Jaehyun, Jungwoo, and Haechan have all renewed their contracts as NCT 127, based on the strong teamwork they have built and the deep trust with our company."The agency added, "Since their debut on July 7, 2016, NCT 127 has established itself as a representative K-pop artist, thanks to the support and love from fans over the past 10 years. We would like to express our gratitude once again to the members and fans who have been on this journey with us."SM Entertainment also stated, "We will continue to fully support NCT 127's activities and be a strong partner for them."NCT 127 is the Seoul-based unit of NCT, which debuted in 2016. The group has expanded its fanbase both domestically and internationally with hits like 'Fire Truck,' 'Cherry Bomb,' 'Hero (英雄; Kick It),' and '2 Baddies.'With this contract renewal, NCT 127 will continue its group activities as it marks its 10th anniversary.* This article has been translated by AI. 2026-07-15 11:20:00
  • Unionized workers at GM Korea begin two-day partial strike over wage dispute
    Unionized workers at GM Korea begin two-day partial strike over wage dispute SEOUL, July 15 (AJP) - Unionized workers at GM Korea on Wednesday began a two-day partial strike after wage talks broke down. The workers, who have been refusing overtime and weekend work since earlier this week, are staging the strike on Wednesday and Thursday, with the morning and afternoon shifts stopping work for four hours each. It comes after more than a dozen rounds of wage talks including one held the previous day collapsed as the automaker's labor and management failed to narrow differences over pay, bonuses and future production plans. The union rejected the company's latest offer, which included a base-pay raise and a lump-sum payment, saying it fell short of its expectations. It is seeking a 149,600-won increase (about US$100) in monthly base pay and performance pay of about 30 million won for each worker. It also wants new vehicle models to be assigned to its plants, along with commitments to build future vehicles and next-generation engines domestically. In addition, the union is demanding that more than half of the company's retained earnings be invested in South Korea. Further talks between the two sides are expected, but the dispute is likely to continue as key differences remain unresolved. 2026-07-15 11:17:13
  • KOSPI Stabilizes Above 7300 as Foreign Investors Make 1.3 Trillion Won Net Purchase
    KOSPI Stabilizes Above 7300 as Foreign Investors Make 1.3 Trillion Won Net Purchase The KOSPI has stabilized above the 7300 mark, bolstered by significant net purchases from foreign investors.As of 11:09 a.m. on July 15, the KOSPI was up 475.72 points (6.94%) at 7332.55 compared to the previous trading day. In the stock market, foreign investors made a net purchase of 1.2873 trillion won, while institutional investors bought 128.8 billion won worth of shares. In contrast, individual investors sold a net 1.3966 trillion won, taking profits.Major stocks in the KOSPI index showed strong performance. SK Square surged by 17.90%, while SK Hynix rose by 10.93% and Samsung Electro-Mechanics increased by 12.22%. Other notable gainers included Samsung Electronics (5.89%), Samsung Electronics Preferred (5.98%), LG Energy Solution (5.28%), Samsung Life Insurance (5.68%), Hyundai Motor (2.71%), Samsung Biologics (2.92%), and KB Financial (1.67%).The KOSDAQ index also experienced gains, rising by 38.90 points (4.96%) to 822.88. In the KOSDAQ market, foreign and institutional investors made net purchases of 50 billion won and 37 billion won, respectively, while individual investors sold a net 89.1 billion won.Most of the top stocks in the KOSDAQ index showed upward trends, including EcoPro (8.22%), EcoPro BM (8.08%), Kolon TissueGene (8.09%), JUSUNG Engineering (10.59%), Wonik IPS (11.09%), Rainbow Robotics (6.87%), IO Tech (5.46%), and Rino Technology (5.34%). However, PSK saw a decline of 1.47%.* This article has been translated by AI. 2026-07-15 11:16:00
  • Koreas Ministry of Land to Ease Fire Safety Regulations for Semiconductor Plants
    Korea's Ministry of Land to Ease Fire Safety Regulations for Semiconductor Plants The Ministry of Land, Infrastructure and Transport is set to rationalize the fire compartment standards for piping spaces in semiconductor plants and establish quality recognition criteria for new building materials. Starting from July 15 until August 24, the ministry will announce legislative proposals for amendments to the 'Enforcement Decree of the Building Act' and the 'Regulations on Standards for Evacuation and Fire Safety Structures of Buildings.' The proposed amendments aim to reasonably improve building regulations by reflecting the conditions of industrial sites and the trends in new technology development, while also addressing shortcomings identified during the current system's operation. Specifically, the regulations will ease the obligation to install fire compartments between floors when piping spaces in semiconductor plants are separated from other areas and sprinklers are installed following expert review. Semiconductor plants often require the addition or relocation of piping due to changes in manufacturing processes. Previously, this necessitated the demolition and reconstruction of concrete fire compartments each time piping was modified, placing a significant burden on operations. The ministry believes that allowing the omission of floor fire compartments when equivalent fire safety performance, such as sprinklers, is ensured will reduce operational difficulties while maintaining fire safety. Additionally, the criteria for quality recognition of new building materials will be expanded. Previously, only fire-resistant structures were eligible for new product quality recognition, but the criteria will now also apply to fire doors, fire shutters, fire-resistant filling structures, and composite materials. The installation standards for composite fire shutters will also be clarified. When installing composite fire shutters that include fire doors, there will be no need to install additional fire doors, as the standards will be revised. The requirement to include the birth dates of manufacturers, distributors, and constructors in quality management forms will also be removed. Given the short replacement and expansion cycles of semiconductor production facilities, rationalizing regulations based on safety performance can impact the speed of investment in advanced industries and operational efficiency. Jeong Seung-soo, head of the Building Safety Division at the Ministry of Land, stated, “This amendment reflects changes in industrial sites and new technologies in a reasonable manner while ensuring fire safety in buildings. We will continue to prioritize public safety while actively incorporating the voices of the industrial sector.”* This article has been translated by AI. 2026-07-15 11:16:00
  • Hanwha Foreena Unveils Grand Flow Landscape Design for Community Entrance
    Hanwha Foreena Unveils 'Grand Flow' Landscape Design for Community Entrance Hanwha Construction has revealed its new landscape design, 'Grand Flow,' for the entrance of the Hanwha Foreena community. On July 15, Hanwha Construction announced the development of the 'Grand Flow' landscape design for the community entrance. This design aims to expand the existing perception of community entrances and provide a unique brand experience for residents and visitors. The core of Grand Flow is the clear distinction between the entrance and internal spaces. A design wall, approximately 3 meters high, is placed to block external noise and views, creating a grand sense of space as one enters the community. The external pathways of the design wall feature restrained planting to enhance openness, while the internal pathways are adorned with lush vegetation to offer a differentiated landscape experience. A dedicated drop-off area utilizing the design wall structure will also be established. This area will be independently designed to ensure convenience and safety for visitors and families with young children, even on rainy or snowy days. In front of the entrance road, a water feature linked to the design wall will be installed. This water feature will serve as a connection between the community's exterior and interior, allowing views of key spaces such as the central plaza and tea house as if framed in a picture. As competition among apartment brands extends beyond exteriors and community features to entrance and landscape experiences, the importance of space design that shapes first impressions is growing. Kim Min-seok, head of the architectural business division at Hanwha Construction, stated, “The community entrance is the starting point of the brand experience for residents and visitors. The Foreena Grand Flow will set a new standard for landscape design in multi-family housing.” Meanwhile, Grand Flow is set to be gradually implemented, starting with the 'Hanwha Foreena Gije Station,' which is scheduled for sale in the second half of this year.* This article has been translated by AI. 2026-07-15 11:16:00
  • Former Presidential Aide Faces Arrest Over Leak in Military Case
    Former Presidential Aide Faces Arrest Over Leak in Military Case Former presidential aide I Si-won appeared in court on July 15 for a hearing regarding an arrest warrant related to allegations of leaking confidential information about the Chae Sang-byeong case.Judge Lee Jong-rok of the Seoul Central District Court began the warrant hearing at 10:10 a.m. The court's decision is expected to be announced later in the afternoon.On July 10, the second special prosecutor's team, led by Kwon Chang-young, requested an arrest warrant for I Si-won on charges of leaking official secrets. This marks the first time the special prosecutor's office has sought to secure a suspect in connection with the Chae Sang-byeong case.Upon arriving at the court around 10 a.m., I responded to questions about whether he had informed the Marine Corps of a planned search by the Gyeongbuk Police Agency, saying, "I will provide a sincere explanation."Special Prosecutor Kim Chi-hun stated, "I believe the former aide meets all the criteria for the seriousness of the crime, potential evidence destruction, and flight risk, as well as concerns about reoffending and harm to witnesses."He added, "July 19 marks three years since Chae Sang-byeong's death, and we hope the court will issue the warrant so that his death will not be in vain."I Si-won is accused of notifying the Marine Corps about the planned search by the Gyeongbuk Police Agency related to the Chae Sang-byeong case in September 2023.At that time, the National Investigation Headquarters of the National Police Agency had communicated the search plan to an employee of the presidential office's public integrity office.The special prosecutor's office believes that I Si-won informed a National Security Office official about the search details, which were subsequently relayed to the Marine Corps through the Ministry of National Defense.* This article has been translated by AI. 2026-07-15 11:16:00
  • Chamber of Commerce: Minimum Wage Increase Burdens SMEs and Self-Employed, Policy Support Needed
    Chamber of Commerce: Minimum Wage Increase Burdens SMEs and Self-Employed, Policy Support Needed The Korea Chamber of Commerce and Industry (KCCI) stated that the minimum wage for next year has been set to increase by 3.7% to 10,700 won, emphasizing that this will significantly burden self-employed individuals and small and medium-sized enterprises (SMEs). On July 15, Choi Eun-rak, head of the KCCI's research division, commented on the 2027 minimum wage decision, saying, "The business community views this as a result of the Minimum Wage Commission's careful consideration of domestic and international economic conditions and the capacity of the field to absorb the increase." He added, "This increase will weigh heavily on the ground, and I hope discussions will begin on a decision-making process that reflects objective indicators and the payment capacity of the field to prevent conflicts surrounding minimum wage determinations from recurring each year." Meanwhile, it is estimated that 660,000 workers will be affected by the proposed minimum wage for 2027, based on the Employment Type Survey, while the Economic Activity Population Supplementary Survey estimates this number at 2,978,000. The monthly equivalent of next year's minimum wage, based on 209 hours, is 2,236,300 won.* This article has been translated by AI. 2026-07-15 11:12:00
  • Shadow of Free Education for 5-Year-Olds: The Reality of Monthly Support of 110,000 Won
    Shadow of Free Education for 5-Year-Olds: The Reality of Monthly Support of 110,000 Won The paradox of increasing education budgets amid declining student numbers is sparking controversy. Where is South Korea's education finance headed? A report from the National Assembly Budget Office, titled 'Analysis of the 2025 Fiscal Year Settlement by Committee (Education and Culture, Sports and Tourism Committees),' reveals the contradictions within the current education finance structure. Despite a decrease in the school-age population, the local education finance grants linked to domestic tax revenues are expanding, highlighting structural limitations and irregularities in the budget for free high school education. The complexities surrounding higher education innovations represented by ANCHOR and Glocal universities are vast. Aju Economy is conducting a three-part series to diagnose the crisis in early childhood, primary, secondary, and higher education finance and to seek reasonable resource reform alternatives for sustainable future education. <Editor’s Note>Shadow of free education for 5-year-olds: the reality of monthly support of 110,000 won"I expected the government to take responsibility, but the costs remain the same," lamented a parent sending their child to a private kindergarten in Seoul. The government's ambitious early childhood education and childcare policies aimed at addressing low birth rates are struggling to align with on-the-ground realities.A report released on July 10 by the National Assembly Budget Office captures the adverse effects of uniform budget execution that ignores regional disparities. Despite significant financial investment, the promise of free education has lost its luster, and the expansion of childcare infrastructure is stagnating.Uniform monthly support of 110,000 won for free education: 'Insufficient' in Seoul, 'Excessive' in regionsThe most contentious aspect is the 'Gradual Implementation of Free Education for Young Children' initiative. Launched in the second half of 2025 for 5-year-olds, this program allocated a total of 128.85 billion won from the reserve fund. The Ministry of Education set a uniform support rate of 20,000 won per month for public kindergartens, 110,000 won for private kindergartens, and 70,000 won for daycare centers, distributing these funds to local education offices. The aim was to cover the gap between the standard early childhood education cost (557,000 won) and existing government and education office support (448,000 won) for private kindergartens.However, the reality for private kindergartens across the country diverges from these calculations. Kindergarten fees are determined by the principal with the approval of the education superintendent, leading to significant regional variations. According to the Kindergarten Information System, shortly after the support was implemented in October 2025, the average educational cost for 5-year-olds in private kindergartens in Seoul was 111,619 won, while in Gyeonggi Province, it reached 133,668 won. This means that even with the 110,000 won support, parents still face additional costs of 11,000 to 33,668 won. The term 'free education' has become misleading.In contrast, regions like Ulsan, Gyeongnam, and Chungnam, where educational costs were already close to zero or very low, experienced a reversal where the support amount (110,000 won per month) exceeded the actual fees parents were paying. Thus, while parents in Seoul and Gyeonggi Province continue to bear significant costs, other provinces are facing serious 'regional asymmetry' with excessive budget allocations.As national funds arrive, local education offices close their wallets: 'Without differential support, there are limits'Even more perplexing is that in some areas, the initiative has led to reduced benefits. As national funds were distributed uniformly, some local education offices that had previously supported free education from their own resources cut their existing support budgets.According to the report, six education offices, including Incheon, Gwangju, Ulsan, Gangwon, Jeonbuk, and Gyeongnam, reduced their own free education support budgets. For instance, in Incheon, the total amount combining national support and local free education funds decreased from 662,000 won to 559,000 won, a reduction of 103,000 won. Ulsan and Jeonbuk also saw decreases of 75,000 won and 70,000 won, respectively.As the national government releases funds, local governments are finding ways to cut their budgets, and the burden falls squarely on parents.In response, the Ministry of Education stated, "The actual burden on parents varies by institution and region, so we set the support rates to alleviate the average burden. If the burden on parents is less than the support budget, the Ministry will ensure that the remaining amount is used for direct educational expenses for children."They added, "Differential application of national support considering the existing support levels of local governments could raise concerns about equity in free education support across regions."However, the Budget Office pointed out, "Despite the varying fees among private kindergartens, the Ministry of Education's uniform application of the same support rate has resulted in situations where parents still bear costs, while some local governments are reducing their own support funds. To realize free education through national budgets, it is necessary to apply differentiated support rates by region, given the differing burdens on parents across provinces."New towns face long waiting lists while childcare facility expansion stagnatesThe expansion of childcare infrastructure is also severely disconnected from reality. The government allocated 26.684 billion won for the 'Childcare Facility Expansion' initiative, which supports the establishment of public daycare centers favored by parents.While the number of births and daycare centers nationwide is declining, new towns, where newlyweds are concentrated, still face severe local supply-demand imbalances, with parents waiting in line dozens or even hundreds of times for daycare admission.Despite the urgent demand on the ground, the execution rate for the 2025 fiscal year childcare facility expansion project was only 42.0% (11.195 billion won). More than half of the budget remains unspent.Looking at the annual execution rates, they have hovered around 40%: 38.5% in 2022, 35.5% in 2023, and 35.6% in 2024. Even though the budget for 2025 was reduced by 36% compared to the previous year due to chronic under-execution, the execution rate still only reached 42.0%, showing little improvement.The Ministry of Education explained, "Despite the declining demand for childcare due to low birth rates, the demand for public daycare center expansion was overestimated. In some areas, the support rates for new construction or long-term lease projects were relatively high, leading to a lack of quantity, while the lower-cost remodeling projects for apartment complexes were favored, resulting in reduced execution scale."In this regard, the Budget Office emphasized the need to improve the execution rate of the public daycare center expansion project to address the shortage of facilities in areas with high numbers of young children. They analyzed that the failure to accurately assess urgent local demand and the habitual allocation of budgets have led to a situation where funds are not reaching the areas that need them, resulting in a form of budgetary sclerosis. 2026-07-15 11:12:00