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  • Government Establishes Future Response Fund to Support Youth and Growth Amid Economic Challenges
    Government Establishes Future Response Fund to Support Youth and Growth Amid Economic Challenges The government is set to establish a 'Future Response Fund' to focus on supporting youth and next-generation growth drivers, utilizing additional tax revenue generated from the recent semiconductor market boom.According to the Ministry of Finance's '2026 Second Half Economic Growth Strategy' announced on July 14, the government confirmed the creation of the Future Response Fund to effectively utilize excess tax revenue from corporate taxes due to strong semiconductor exports.The fund will target four key areas: enhancing youth independence and capabilities, expanding next-generation growth drivers, promoting balanced regional development, and innovating future-oriented education. Plans include strengthening support for youth housing and asset formation, as well as allocating significant budgets to national strategic technologies such as artificial intelligence (AI), biotechnology, and quantum technology.To proactively address potential economic downturns in the second half of the year, the government will intensively manage the execution of both central and local government finances, as well as education budgets.Notably, the government has significantly increased public investment and policy financing. The public investment target for this year has been raised from the previously planned 70 trillion won to 72 trillion won, aiming for an overachievement. This adjustment is part of a strategy to accelerate large-scale social overhead capital (SOC) projects and energy infrastructure expansion to support the private construction and manufacturing sectors.Policy financing will also be expanded to the largest level in history, increasing from the initially planned 633.7 trillion won to approximately 638.4 trillion won.Measures to alleviate inflation concerns have also been included. To provide tangible benefits to consumers, the government plans to issue discount vouchers for agricultural, livestock, and fishery products at a monthly level of 20 billion won. Additionally, a quota tariff will be applied to 49 essential food items that are highly dependent on imports and closely related to the livelihoods of ordinary citizens.In response to the ongoing high exchange rates that burden small and medium-sized enterprises (SMEs) importing raw materials, the government will swiftly provide 14.9 trillion won in emergency management funds to SMEs. Furthermore, the scope of support for 'exchange rate fluctuation insurance' will be expanded to alleviate concerns among small export and import businesses.The financial safety net for small business owners and self-employed individuals facing challenges due to persistently high interest rates will also be enhanced. The total supply of the 'Small Business Hope Dream Loan,' a key funding source for small business owners, will be doubled from the previous 1.5 trillion won to 3 trillion won.Additionally, the government will significantly expand the eligibility and scope of support for high-interest refinancing loans for small business owners who have borrowed at rates exceeding 7% from secondary financial institutions.Finally, to prevent risk factors from spreading throughout the macroeconomy, the government will strengthen inter-agency cooperation. A 'Comprehensive Market Monitoring Meeting' will be regularly held to comprehensively review macroeconomic trends, as well as developments in the financial and foreign exchange markets, and the real estate market linked to household debt.* This article has been translated by AI. 2026-07-14 11:44:00
  • Government Plans to Create 200,000 Jobs for Youth Amid AI Employment Challenges
    Government Plans to Create 200,000 Jobs for Youth Amid AI Employment Challenges The government is preparing a basic plan for employment stability in response to the employment shocks caused by the spread of artificial intelligence (AI). The initiative aims to minimize job disruptions during industrial transitions by expanding AI talent development and enhancing asset and housing support for young people.According to the '2026 Second Half Economic Growth Strategy' released on July 14, the government plans to establish an employment information hub for industrial transition to quickly assess trends and develop a Korean-style AI Exposure Index (K-AIOE) to analyze the impact of AI on various job roles.The government will also accelerate the training of AI and digital talent. The scale of advanced and digital vocational training will increase from 49,000 to 54,000 participants, and 41 KDT AI campuses will be operated to cultivate AI engineers.Support for small and medium-sized enterprises (SMEs) in AI transition will also be expanded. AI training coaches will provide tailored training based on company assessments, and an AI training diffusion center will support comprehensive education. Four physical AI testbeds will be established and gradually opened to local SMEs.The government will designate regions expected to be adversely affected by industrial transition as 'Just Transition Special Zones' to provide comprehensive support for businesses and small enterprises, worker retraining and reemployment, and the development of new industries. For companies facing temporary shutdowns, the requirements for receiving employment retention support funds will be relaxed, and a fast-track for hiring incentives will be introduced.Youth job initiatives will be actively pursued. The government plans to train over 200,000 young professionals by 2030, focusing on mega projects and advanced industries, and will provide support for employment and entrepreneurship.Kang Gi-ryong, Deputy Minister of Finance and Economy, stated, "Foundations for job creation in promising industries are being established, including three major mega projects. Based on this, we are preparing plans across various ministries to create 200,000 jobs, including for young job seekers, and we also plan to expand public sector employment."Support for youth asset formation will also be enhanced. A 'youth-type ISA' will be launched in the first half of next year, offering a 10% income deduction on contributions for young people with an annual salary of 75 million won or less, along with tax exemptions on interest and dividend income and increased contribution limits.Housing support will be strengthened as well. The government aims to supply over 400,000 public rental housing units for young people by 2030, with 60,000 of these being universally preferred public rental units located near transit hubs. The income threshold for the deposit return guarantee support program for young renters will also be relaxed to 50 million won annually.Support for newlyweds will be expanded. The government plans to improve income requirements for housing loans such as the Didirim, Beotimok, and Bogumjari loans in the second half of this year and will introduce special allocations for newborns in households with children under two years old to broaden their opportunities for housing applications.* This article has been translated by AI. 2026-07-14 11:44:00
  • Government to Announce Second Phase of Public Institution Relocation Plan
    Government to Announce Second Phase of Public Institution Relocation Plan The government is prioritizing regional growth as a key focus of its economic policy for the second half of the year, with plans to announce a detailed roadmap for the 'second phase of public institution relocation' within this timeframe. Additionally, it will provide significant support to businesses linked to the 5 poles 3 special growth engine through the enactment of the Mega Special Zone Act.According to the '2026 Economic Growth Strategy for the Second Half of the Year' released on July 14, the government plans to unveil the second phase of the public institution relocation plan this year and begin the relocation process next year, focusing on leading institutions. The plan aims to minimize the number of institutions remaining in the capital region while considering the principles of concentrated placement linked to the 5 poles 3 special growth strategy.To build the 5 poles 3 special growth engine, a key initiative of the Lee Jae-myung administration, the government will identify and select major industrial hubs by the third quarter of this year. Selected industries will receive comprehensive support through a three-pillar package that includes investment incentives (financial, fiscal, and regulatory), industrial ecosystem support (regulatory and technological), and business activity foundations (talent and infrastructure).The government also plans to enact the Mega Special Zone Act within the year, which will provide extensive regulatory exemptions and package support for investment companies linked to the 5 poles 3 special growth engine. The strategy includes plans for new designations of regulatory-free special zones that connect two or more local governments.Furthermore, over 40% of the total amount of the National Growth Fund will be invested in local areas to enhance funding and attract investment for regional economies.In addition to financial support, measures will be implemented to attract private capital and talent to local areas through tax benefits. Companies investing in growth engine sectors will receive substantial investment incentives, while workers in those regions will benefit from a 'local preferential tax package' aimed at improving income stability and living conditions.Next year, the number of local preferential projects will be significantly increased from the seven currently in place, and a local preferential index will be developed to strengthen the growth foundation of regions. To achieve this, the government plans to identify local preferential projects by the end of the second half of this year.The government will also lower barriers for local companies in the public procurement market. Through a reorganization of the national contract system led by the Public Procurement Service, companies located in areas experiencing population decline will receive preferential points in price evaluations. Finally, the government aims to complete improvements to related systems, such as promoting a policy for the prioritized purchase of products from local small and medium-sized enterprises, by the end of the second half of the year.Lee Hyung-il, First Deputy Minister of Finance, stated, 'We will do our utmost to ensure that regional growth can be a pillar for the rebound of potential growth rates. By the third quarter, we will select growth engines for the 5 poles 3 special regions and enact the Mega Special Zone Act to provide extensive support for investment companies linked to these engines within the year.'* This article has been translated by AI. 2026-07-14 11:44:00
  • Government Plans to Shift Supply Chains to Domestic Production Amid Economic Security Concerns
    Government Plans to Shift Supply Chains to Domestic Production Amid Economic Security Concerns Amid increasing supply chain uncertainties due to the Middle East conflict, the government is encouraging domestic production of economically secure items. The strategy focuses on expanding tax deductions for domestically produced items of high importance and increasing stockpiling and overseas investments for items that are difficult to produce locally. For items with a high dependency on specific countries, the government will fully support the costs of alternative imports with low-interest loans.On July 14, the government unveiled its "2026 Second Half Economic Growth Strategy" during a Cabinet meeting. The plan categorizes supply chain responses into four levels: items that can be produced domestically, items that are difficult to produce but can be stockpiled, items that cannot be produced or stockpiled domestically, and items that cannot be produced or stockpiled either domestically or internationally.For economically secure items that can be produced domestically, a tax deduction will be introduced. This deduction will be based on the production and sales volume of strategically important items, calculated by multiplying an appropriate unit price by the quantity produced, which will then be deducted from corporate or income taxes.Separate support measures are being considered for companies that cannot benefit from tax incentives due to initial production losses. Domestic production subsidies for high-risk economically secure items, which are less cost-competitive than foreign products but essential for supply chain stability, will continue until the first half of next year.The government also plans to expand the recycling and reprocessing of critical minerals. To increase the recycling rate of critical minerals from the current 7% to 20% by 2030, efforts will be made to promote the independence of the urban mining industry. Standards will be improved to prioritize the separation and recovery of waste parts containing critical minerals during the recycling of electric vehicles and electronic products, and permanent magnets will be recognized as recyclable resources. A pilot project supporting the mass recycling of rare earth elements will also be launched with a budget of 8.08 billion won.For essential goods that are difficult to produce domestically, the government will pursue both new stockpiling and the expansion of existing stockpiles. Research will begin on new stockpiling methods for urea used in fertilizers, and the necessity and operational methods for stockpiling naphtha will be reviewed. The total stockpile of major crude oil types will be expanded in line with economic scale, and the stockpile targets for six non-ferrous metals will be reassessed by August to establish a stockpiling plan for 2027-2031.Stockpiling infrastructure will also be enhanced. A dedicated stockpiling facility for critical minerals will be established by 2028 at the Saemangeum National Industrial Complex, consisting of six general warehouses and four specialized warehouses. Additionally, the government plans to expand oil stockpiling facilities to hold over 20 million barrels and increase international joint stockpiling with major oil-producing countries like Saudi Arabia and the United Arab Emirates.For items like vehicle urea that require inventory circulation, a new stockpiling model will be piloted next month, allowing companies that agree to annual usage amounts to purchase government-held stock. In the event of a supply chain crisis, government stockpiles will be prioritized for these contracted companies.For items that cannot be produced or stockpiled domestically, the government will secure overseas production capabilities. Starting in 2027, investments in overseas supply chains for urea and critical minerals will be increased, and support will be provided for overseas resource development, processing, and securing long-term supply negotiation rights through sovereign wealth funds, policy funds, and development finance.For items with over 80% dependency on specific countries, the government will provide low-interest loans for alternative import costs through a supply chain stabilization fund. The support limit will be increased from 80-90% to 100%, with a preferential interest rate of up to 2.3 percentage points. The government is also considering revising the oil import tax refund system to develop refining technology for medium and heavy crude oil from non-Middle Eastern sources and to compensate for additional freight costs incurred.* This article has been translated by AI. 2026-07-14 11:40:00
  • South Korea Targets Economic Growth with Major Investments in Semiconductors and AI
    South Korea Targets Economic Growth with Major Investments in Semiconductors and AI The South Korean government has designated semiconductors, artificial intelligence (AI) data centers, and physical AI as its "three mega-projects" to boost potential economic growth. The plan aims to enhance semiconductor production capacity in the Seoul metropolitan area while establishing production, packaging, and power semiconductor hubs in the southwestern, central, and southeastern regions to spread growth nationwide.On July 14, the government unveiled its "2026 Economic Growth Strategy" during a Cabinet meeting. The strategy aims to achieve a potential growth rate of 3%, rank among the top four in exports, and reach a national income of $50,000, referred to as the "3-4-5 Vision," by fostering globally competitive industries.To start, the government plans to expedite the completion of semiconductor fabs in Yongin and Pyeongtaek, aiming to double the country's memory semiconductor production capacity within five years. The construction timelines for SK Hynix's general industrial complex and Samsung Electronics' national industrial complex, currently projected to take 12 and 7 years respectively, will be significantly shortened. By 2031, the government will invest 900 billion won to establish a "Trinity Fab" for testing advanced semiconductor materials, components, and equipment.A total investment of 800 trillion won will be allocated to establish four new semiconductor fabs in the southwestern region, which will be developed as a second semiconductor production hub with rapid supply of power and water. Additionally, a high-tech packaging demonstration center will be built by 2030, focusing on local universities and research institutions such as Gwangju Institute of Science and Technology (GIST), Chonnam National University, and Korea Energy Engineering University.In the central region, 156 trillion won will be invested to develop a high-tech packaging hub, including the construction of high-bandwidth memory (HBM) fabs. In Busan, 40 billion won will be invested by 2028 to establish a public fab for 8-inch silicon carbide (SiC) power semiconductors, while Gumi will see the creation of a testing bed and evaluation center for semiconductor materials and components.Research and development (R&D) in semiconductors will be strengthened, with support for next-generation high-performance, low-power memory, neural processing units (NPU) for data centers, next-generation compound semiconductors, and advanced packaging technologies. The government aims to accelerate the training of 100,000 semiconductor professionals by expanding specialized universities and academies. A special account for enhancing semiconductor industry competitiveness will be established, with 1.7 trillion won allocated through a national growth fund.In the AI sector, a total of 550 trillion won will be invested, including attracting investment for the construction of an 8.4 GW data center. Projects such as SK's Ulsan data center, additional regional initiatives, GS's Donghae data center, and Naver's Sejong data center are set to begin construction by the first half of 2028, with phased operations starting in 2029.The government will also secure approximately 50,000 GPUs through government procurement, the sixth supercomputer, and a national AI computing center. A GPU allocation plan for 2027 will be proactively prepared in the second half of this year, alongside the commencement of the national AI computing center and the operation of the sixth supercomputer.In the physical AI sector, the government will focus on developing seven leading areas, including AI factories, robotics, automotive, shipping, home appliances, drones, and semiconductors. The goal is to develop AI robots specialized for ten industries by 2028 and distribute them to 1,000 sites annually. The government plans to address challenges in the mega-project implementation process, including power supply, land, and permits, through a special committee on enhancing semiconductor industry competitiveness and an innovation support team led by the President.To accelerate AI transformation (AX), the government aims to secure a proprietary AI model that ranks among the top 10 globally and develop a world-class AI model. In the second half of this year, user-friendly AI applications, such as chatbots, will be launched for the public, along with the development of a security-focused proprietary foundation model to address security threats.* This article has been translated by AI. 2026-07-14 11:40:00
  • Government to Revise Real Estate Taxes and Expand New Town Supply
    Government to Revise Real Estate Taxes and Expand New Town Supply The government is set to gather public input on revising real estate transaction and holding taxes. It will also implement measures to expand housing supply and stabilize living conditions for citizens by easing regulations on redevelopment and reconstruction.According to the '2026 Second Half Economic Growth Strategy' released on July 14, the government plans to collect public opinions on real estate taxes before formulating reasonable improvement measures.The corporate land tax system will also be revised. The government aims to rationalize the classification criteria for land taxation and normalize the tax burden at the holding and transfer stages, while expanding rental supply in industrial complexes to encourage productive land use. Additionally, it will mandate the disposal of unused agricultural land.Yoo Byeong-hee, Director of the Economic Policy Bureau at the Ministry of Finance, stated, "We will gather diverse opinions through a national debate on real estate taxes and develop reasonable improvement measures."The government is accelerating efforts to increase housing supply. In the second half of this year, it plans to begin construction on a total of 12,000 homes in the third new towns, including 6,800 in Namyangju Wangsil and 1,100 in Incheon Gyeyang.The construction schedule for major public sites, such as Taereung and Seongnam, will be moved up from 2030 to 2029. The government will also expedite follow-up procedures, including preliminary site investigations and relocation plans.To increase the pace of land supply, the government will pursue institutional improvements. This includes parallel procedures for district designation and planning, shortening consultation periods with relevant agencies, and starting basic land compensation surveys early before district designation.Financial support and regulatory easing for revitalizing redevelopment and reconstruction projects are also under consideration. The approval rate for remodeling project plans will be lowered from the current 75% to 70%.Public rental policies will also be revised. The government aims to enhance the quality of public rental housing and increase supply for young people, while establishing a public purchase rental REIT to acquire existing homes for rental supply.Measures to protect jeonse deposits will be implemented. The security deposits of tenants will be managed by the Monthly Rent Stabilization Fund, and landlords will receive monthly rental income through a trust program.Jo Man-hee, Director of the Tax Policy Division at the Ministry of Finance, noted, "There are both calls for easing and strengthening holding and transaction taxes, so we plan to reflect public opinions through discussions before making a decision."* This article has been translated by AI. 2026-07-14 11:40:00
  • South Korea Raises Economic Growth Forecast to 3% Amid Semiconductor Boom
    South Korea Raises Economic Growth Forecast to 3% Amid Semiconductor Boom The South Korean government has significantly raised its economic growth forecast for this year from 2.0% to 3.0%. This adjustment is attributed to a semiconductor boom driven by artificial intelligence (AI), strong export performance, and the effects of a supplementary budget related to the ongoing conflict in the Middle East, which have helped cushion the economic impact of the war.On July 14, during a Cabinet meeting chaired by President Lee Jae-myung at the Blue House, the government presented its economic growth strategy for the second half of 2026.The strategy aims to achieve a 'great leap forward for an irreplaceable South Korea,' with goals including a potential growth rate of 3%, becoming a top-four exporter, and reaching a per capita income of $50,000, referred to as the '345 Vision.'Lee Hyung-il, the first vice minister of the Ministry of Economy and Finance, stated, "This year, the real growth rate is expected to reach 3% for the first time in five years," adding that the nominal growth rate is projected to hit 12.3%, the highest level in 30 years, indicating a visible virtuous cycle of growth and finance.If the government’s forecast holds true, South Korea will achieve a 3.0% growth rate for the first time since 2021. However, it is important to note that the 2021 figure was significantly influenced by a rebound effect following the COVID-19 pandemic, making this the first 3% growth rate since 2017 when excluding that year.Semiconductor-Driven Growth Rate; Employment and Inflation ConcernsThe upward revision of the growth rate is primarily attributed to the semiconductor boom. The surge in global AI demand has led to a dramatic increase in semiconductor prices and exports, positively impacting the growth trajectory of the South Korean economy. The government forecasts a 40.0% increase in customs exports and a current account surplus of $290 billion, significantly exceeding the initial estimate of $135 billion.Yoo Byung-hee, director of the Economic Policy Bureau at the Ministry of Economy and Finance, projected that the improvement in trade conditions due to soaring semiconductor prices will result in a 12.3% growth rate for nominal GDP this year, the highest level since 1996. As a result, the government anticipates that the gross national income (GNI) per capita will approach $40,000, and the national debt ratio will decrease to the 40% range, lower than previously expected.Despite the growth forecast, the recovery in employment is expected to be limited. The government has revised its estimate for job creation this year down from 160,000 to 150,000. This adjustment reflects the limited employment impact of growth centered around the semiconductor sector and the poor employment performance recorded in April and May.The consumer price inflation forecast has also been raised from 2.1% to 2.6%, reflecting increased volatility in oil prices due to the Middle East conflict and rising petroleum costs. The government plans to manage inflationary pressures through policies such as price caps, reductions in fuel taxes, and discounts on agricultural and fishery products.Three Mega Projects to Boost Potential Growth Rate; Spreading Benefits to Regions and YouthThe strategy to achieve these economic outcomes is structured around three main areas. The first focuses on macroeconomic stability and energy independence in the aftermath of the Middle East conflict. The second aims to boost potential growth rates through three mega projects, and the third addresses polarization and structural reforms.The government has identified the need to respond to the 'three high risks' of high inflation, high exchange rates, and high interest rates as a key strategy following the Middle East conflict. An integrated response system will be established to monitor macroeconomic conditions, financial and foreign exchange markets, and the real estate sector, while maintaining an active fiscal policy.In the fiscal sector, the government plans to establish a future response fund that will focus additional tax revenues expected from the semiconductor boom on youth, next-generation growth drivers, regional development, and education.To strengthen supply chains, the government will introduce domestic production tax credits for items that can be produced locally and expand stockpiling for items that are difficult to produce domestically. For items that cannot be produced or stockpiled, overseas production capabilities will be secured through foreign investment funds, and for those that are still challenging, diversification of import sources will be pursued.Lee emphasized, "If domestic production is possible, the government will provide maximum support; if not, we will respond through stockpiling, overseas bases, and diversification of import sources."The key to boosting potential growth rates lies in three mega projects: semiconductors, AI data centers, and physical AI. The government plans to enhance growth drivers through expanding semiconductor production capacity, supporting next-generation power semiconductors, establishing a global AI hub, and backing seven leading sectors in physical AI. This approach aims to ensure that the semiconductor boom translates into large-scale investments rather than being a temporary cycle.To prevent the benefits of the semiconductor boom from being concentrated in specific industries and the capital region, the government has also proposed a separate focus on regional-led growth. In the third quarter, growth engines for five major regions will be selected, and plans for the relocation of secondary public institutions to regional areas will be announced in the second half of the year.To lay the groundwork for regional growth, the government will expand regional preferential fiscal projects and introduce a three-part package of tax incentives for businesses and workers. This includes tax exemptions for relocation support funds provided by companies to employees and income tax reductions for workers at small and medium-sized enterprises in non-capital regions.In addressing structural issues, the government has identified overcoming K-shaped polarization as a core task. It plans to respond to industrial and employment restructuring due to the AI transition, aiming to train over 200,000 young professionals and create more than 200,000 jobs for youth.To support asset formation for young people, the government will launch a youth-specific Individual Savings Account (ISA) and supply over 400,000 public rental housing units for the youth. Measures to alleviate marriage penalties, such as improving income requirements for newlywed housing loans, are also included.Support for small and medium-sized enterprises will focus on promoting growth. To address the issue of rapidly diminishing tax benefits as small businesses transition to mid-sized enterprises, a gradual phase-out range will be established. The evaluation system for small business support programs will also be restructured to focus on growth-oriented companies.In the area of structural reform, plans include transitioning to productive finance, internationalizing the Korean won, enacting a national asset basic law, re-evaluating tax expenditures, reforming education fiscal grants, and restructuring the functions of public institutions. The government aims to implement measures to separate real estate from finance through improvements in loan and guarantee systems related to real estate. 2026-07-14 11:40:00
  • Simmons N32 Motion Bed Enters South Koreas First 5-Star Hotel
    Simmons' N32 Motion Bed Enters South Korea's First 5-Star Hotel Simmons' premium mattress brand N32 announced on July 14 that it has supplied its electric bed, the N32 Motion Bed, to the five-star hotel Banyan Tree Club & Spa Seoul. This marks the first time a motion bed has been officially installed in a major luxury hotel in South Korea, rather than as a temporary feature.The N32 Motion Bed is designed with five segmented plates that allow for precise angle adjustments based on the user's posture and sleep environment. It includes a safety sensor that activates safety mode if any obstruction is detected, and a safety cover to prevent children from accessing the device. Additionally, it features Bluetooth connectivity, A/C charging ports, and a memory function for storing preferred positions.Alongside the N32 Motion Bed, the N32 Foam Mattress and the Queensmiller Organic Vegan Pillow are also available. The N32 Foam Mattress combines breathable materials with natural plant-based fabrics to minimize skin irritation, while its high-elasticity foam provides stable support. The Queensmiller Organic Vegan Pillow offers a comfortable sleep environment with its Sensofill filling, special stitching techniques, and Sanprocare functional processing.Previously, N32 supplied its pet mattress, the N32 Chocomi, to the premium five-star hotel Signiel Busan.A representative from Banyan Tree Seoul stated, "Recent guests are increasingly seeking not just accommodation but also a restful and restorative experience, leading hotels to focus on creating comfortable sleep environments and related programs."* This article has been translated by AI. 2026-07-14 11:32:00
  • Truston Asset Management Calls for Review of Taekwang Industrys Value Enhancement Plan
    Truston Asset Management Calls for Review of Taekwang Industry's Value Enhancement Plan Truston Asset Management, the second-largest shareholder of Taekwang Industry, has sent an open letter to the company's management and independent board, demanding a comprehensive review of its value enhancement plan. The firm is urging an increase in the dividend payout ratio to 40% by 2030 and a stock split of at least 5-for-1. Truston also indicated that it would consider convening an extraordinary general meeting and legal action if its demands are not met.On July 14, Truston Asset Management announced that it had sent the open letter requesting a review of the "2026 Value Enhancement Plan" to Taekwang's management and independent board. The firm has requested written responses within 30 days and plans to determine its next steps based on the replies received.Truston Asset Management first questioned whether the independent board's oversight function had been effectively exercised. It publicly requested clarification on whether the independent board had raised any objections or made adjustments during the drafting process of the value enhancement plan disclosed on June 30, and whether there had been sufficient discussions regarding the management's "debt-free management principle" from a financial leverage perspective."The role of the independent board should not merely be to approve management's proposals," Truston stated, adding that the board must provide written proof that the oversight and monitoring promised during the June 18 board meeting were actually implemented.The firm also directly challenged the dividend policy. Truston argued that the undervaluation of Taekwang Industry is not due to market conditions or profitability, but rather a long-standing low shareholder return policy. It noted that Taekwang's return on equity (ROE) stands at 2.1%, higher than the industry average of 1.8%, yet even during its most profitable year in 2021, the price-to-book ratio (PBR) did not exceed 0.5.Furthermore, Truston pointed out that the average dividend payout ratio of the three listed companies in the Taekwang Group over the past decade is only 1.3%, while the payout ratio for unlisted affiliates owned by the controlling family is as high as 33%, criticizing this as a "double standard." The firm is demanding a roadmap to gradually increase the dividend payout ratio from 10% this year to the KOSPI average of 40% by 2030.Truston also urged a stock split of at least 5-for-1 to improve liquidity. It highlighted that the actual number of circulating shares of Taekwang Industry is about 230,000, which is only 1% of the KOSPI average, and the average daily trading turnover is below 0.2%, just one-fifth of the KOSPI average of 1.15%. Truston asserted that the company's belief that liquidity issues are unrelated to intrinsic value undermines the purpose of being listed and called for a stock split or bonus shares.Truston criticized the company's plan to use its treasury shares (24.4%) as funding for mergers and acquisitions (M&A). It argued that utilizing treasury shares in a situation where the PBR is at 0.22 dilutes the value of existing shareholders' stakes.In particular, Truston pointed out that the company has invested a total of 301.2 billion won in real estate-related projects over the past two years, including the purchase of the Dosan Park building (20 billion won), the headquarters of Heungkuk Life Insurance (51.2 billion won), and the Courtyard Marriott Namdaemun (50 billion won), as well as a loan to a real estate development company owned by the major shareholder's children (180 billion won). Truston criticized the decision to use 250 billion won worth of treasury shares for M&A instead of returning value to shareholders as contradictory.Truston Asset Management stated, "We will decide on our next steps after reviewing the responses from management and the independent board. If the issues are not resolved, we will consider all possible options, including convening an extraordinary general meeting and legal review regarding the fulfillment of directors' duties."* This article has been translated by AI. 2026-07-14 11:28:00
  • KF-16 fighters to fly nonstop to Australia for Pitch Black exercise
    KF-16 fighters to fly nonstop to Australia for Pitch Black exercise SEOUL, July 14 (AJP) - South Korea’s Air Force will take part in Pitch Black 2026, a multinational air combat exercise hosted by the Royal Australian Air Force, at Darwin Air Base from Friday to Aug. 7, the Air Force said Tuesday. The exercise will bring together about 110 aircraft from 16 countries, including F-35A stealth fighters from the United States, Japan and Australia, Rafale fighters from India and Typhoon fighters from Spain and Germany. South Korea will send six KF-16 fighter jets from the 20th and 38th Fighter Wings, along with about 100 personnel, to conduct combined air operations with participating countries. Three KC-330 multirole aerial refueling and transport aircraft and three C-130 transport aircraft will support the deployment of fighter jets, troops and equipment. The KF-16 formation will depart from Seosan Air Base on Wednesday and fly about 5,900 kilometers to Australia over roughly seven and a half hours with aerial refueling support from the KC-330, without making a stopover. During the exercise, South Korean fighters will carry out various combined air operations with participating forces, including air interdiction, defensive counterair missions and aerial refueling. “Training with air forces from various countries will be a valuable opportunity to strengthen our combined operational capabilities and interoperability,” said Col. Ha Jung-mi, commander of the 20th Fighter Wing’s air operations group and head of the South Korean training contingent. 2026-07-14 11:24:08