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Special Prosecutor to Summon Kim Geon-hee on July 19 Over Presidential Residence Allegations The second special prosecutor team, led by Kwon Chang-young, is investigating allegations related to the relocation of the presidential residence and plans to summon Kim Geon-hee for questioning on July 19.Special Prosecutor Kim Ji-mi held a regular briefing on July 13 at the special prosecutor's office in Gwacheon, stating, "We will summon Mrs. Kim on the morning of the 19th. We plan to investigate allegations that she was involved in the selection of contractors for the residence construction through former presidential secretary Kim O-jin."The special prosecutor's office is looking into claims that 21Gram provided Mrs. Kim with luxury items, including Dior clothing, and that she improperly used her status as the spouse of the president to help 21Gram, which lacks a general construction license, secure a contract for the residence construction.The investigation aims to confirm whether Mrs. Kim inappropriately influenced the contractor selection process for the presidential residence.Previously, on July 7, the special prosecutor's office investigated Yoo Kyung-ok, a former administrative officer in the presidential office and an employee of the company operated by Mrs. Kim, for alleged complicity in bribery under the Specific Crimes Aggravated Punishment Act.Meanwhile, the special prosecutor's office is conducting a comprehensive investigation into allegations related to Mrs. Kim. However, with the investigation deadline approaching on July 24, they plan to continue the investigation with the possibility of a third extension.Special Prosecutor Kim noted regarding the 'Yangpyeong Expressway route change allegations' that, "We summoned former Minister of Land, Infrastructure and Transport Won Hee-ryong last week, but he was unavailable for questioning."The allegations center on claims that the endpoint of the Yangpyeong Expressway was changed from Yangseo-myeon in Yangpyeong County to Gangsan-myeon, where land owned by Mrs. Kim's family is located, after the Yoon Suk-yeol administration took office. Following the emergence of these allegations, former Minister Won declared the project canceled.The special prosecutor's office believes that despite receiving legal advice indicating potential violations during the cancellation process, the Ministry of Land, Infrastructure and Transport issued a press release stating there were no legal issues, suggesting that former Minister Won did not follow proper procedures in canceling the project.In this regard, Special Prosecutor Kim stated, "We plan to investigate whether former Minister Won complied with legal procedures during the cancellation decision process and will consider issuing a summons in anticipation of an extension of the investigation period."Additionally, the special prosecutor's office is looking into allegations that Mrs. Kim attempted to cover up investigations related to stock manipulation involving Deutsche Motors. Last week, former presidential secretary Lee Won-mo and former Prosecutor General Shim Woo-jung were questioned, with reports indicating that Lee responded to all questions with, "I do not remember," while Shim denied the allegations.* This article has been translated by AI. 2026-07-13 15:28:00 -
Kolon Industries Signs MOU for Sale of Functional Materials Business Kolon Industries announced that it has signed a memorandum of understanding (MOU) with IMM PE, the preferred bidder for the sale of its functional materials and imaging materials businesses.Under the MOU, Kolon Industries will proceed with the transfer of shares related to its specialty business division, including OC (Overcoat), OLED encapsulation materials, and DFR (Dry Film) business. IMM PE has been granted exclusive negotiation rights, and the two parties will discuss the basic terms of the transaction before finalizing the contract. Industry estimates suggest the sale could be valued at around 200 billion won.OC is a material that smooths the surface of color filters in display panels, enhancing liquid crystal operation and panel reliability. OLED encapsulation materials protect the light-emitting layer of OLED panels from oxygen and moisture. DFR, a photosensitive film, is used in the formation of PCB electrical circuits.Kolon Industries aims to restructure its business portfolio and enhance corporate competitiveness through this divestiture. The proceeds from the sale will be utilized for improving financial structure and investing in new business ventures.A representative from Kolon Industries stated, "This business transfer is part of our long-term development plan to focus on core competencies. We will continue to nurture high-value core businesses such as mPPO and CPI while also seeking new growth drivers."Meanwhile, it has been reported that Kolon Industries' fashion division is also considering the sale of some businesses, including women's clothing brands, due to poor performance.* This article has been translated by AI. 2026-07-13 15:28:00
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Pearl Abyss' 'Crimson Desert' Achieves Long-Term Success Without Discounts Pearl Abyss' open-world game 'Crimson Desert' is emerging as a new example of long-term success in the domestic console gaming market. Following its global sales surpassing 6 million copies, the game continues to sell at full price without any discounts. 'Crimson Desert' is not only setting a new benchmark for global success in domestic PC and console games but is also becoming a key intellectual property (IP) driving Pearl Abyss' performance improvement.According to the gaming industry on July 13, 'Crimson Desert' has maintained its full-price sales on PC and console platforms. It has been 116 days since its global launch on March 20, and Pearl Abyss has not announced any plans for discounts.On its launch day, 'Crimson Desert' recorded sales of 2 million copies, followed by 3 million copies within four days, 4 million copies in 12 days, and 5 million copies in 26 days. On June 11, it reached a global cumulative sales figure of 6 million copies just 83 days after its release, marking the fastest sales pace among domestic console games.Typically, the gaming industry sees a slowdown in sales during the 2-3 months following a game's release. During this period, companies often implement discounts to attract new demand. However, 'Crimson Desert' has demonstrated sustained sales growth without lowering its price, proving both user demand and price competitiveness.Compared to other successful domestic PC and console games in the global market, 'Crimson Desert' has maintained a longer period of full-price sales. For instance, Neowiz's 'Lie of P' began its first discount about two months after its official release in September 2023. Similarly, Shift Up's 'Stella Blade' for PC started its first discount three months after its June 2025 release.Full-price sales contribute more to revenue than discounted sales based on the same sales volume. Having already sold 6 million copies at full price, 'Crimson Desert' has established a foundation to rebound sales through new users, even if discounts are introduced later.Industry analysts expect that the sales performance of 'Crimson Desert' will be fully reflected in the second quarter, allowing Pearl Abyss to continue its positive performance, including a return to operating profit. In the first quarter of this year, the success of 'Crimson Desert' led to a staggering 2,584.8% increase in operating profit compared to the same period last year, achieving the highest quarterly revenue in the company's history.Pearl Abyss plans to extend the success of 'Crimson Desert' through paid downloadable content (DLC), content updates, and discount events.A Pearl Abyss representative stated, “We currently have no plans for discount sales of 'Crimson Desert.' We are developing paid DLC and will continue regular updates to ensure long-term success.”* This article has been translated by AI. 2026-07-13 15:24:00
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Jung Cheong-rae Announces Bid for Democratic Party Leadership Jung Cheong-rae, a prominent candidate for the leadership of the Democratic Party, declared on July 13 that he will once again raise the banner of reform as he announces his candidacy for re-election. He appealed for support from party members, stating, "I will protect the success of the Lee administration and stand by President Lee until the end."During a press conference held at the National Assembly, Jung stated, "Over the past year, I have carried the banner of a strong reformist leader. I will once again become a powerful leader of the party," officially confirming his candidacy for the upcoming convention scheduled for August.Jung pledged to realize a party that prioritizes the rights of its members and to push for strong reforms if elected. He said, "The party belongs to its members. I will uphold their will and make the Democratic Party a stronger and more democratic organization. I will vigorously pursue uninterrupted and swift reforms, raising the banner of reform once again as a leader."He also declared his commitment to protecting President Lee throughout his term and dedicating himself to the re-election of the administration, reiterating his relationship with the president. "As I have done until now, I will stand by President Lee as a united team, speaking with one voice. I, Jung Cheong-rae, will be the one who remains loyal to President Lee, practicing the principle of putting the party before personal interests," he said, adding that he would do everything possible for stable governance and the re-election of the administration.Jung emphasized, "Above all, I have been the closest protector of President Lee. I have fought at the forefront against the suppression of opposition parties and the elimination of political rivals by the Yoon Seok-yeol administration. When the motion to arrest President Lee was passed, I resigned as floor leader to stabilize the party amid the chaos."He outlined several reform initiatives he completed during his previous term, including the resolution of insurrection, judicial reform, and the introduction of a one-person, one-vote system, while also expressing regret over not consulting party members regarding the merger with the Justice Party. "I regret not conducting a vote among all party members regarding the merger with the Justice Party," he said, adding that if he becomes the party leader, he will seek their opinions through a vote.Meanwhile, fellow party member Choi Min-hee, a key supporter of Jung, also expressed her intention to run for the Supreme Council, stating in a press release, "I will protect the Democratic Party and be a driving force for reform."* This article has been translated by AI. 2026-07-13 15:24:00
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Israel to Hold Elections on October 27, Testing Netanyahu's Long Tenure Israel will hold elections on October 27, putting Prime Minister Benjamin Netanyahu's long tenure to the test. Amid declining approval ratings due to the war in Gaza and tensions with Iran, this election is expected to be a pivotal moment for Netanyahu's political future.According to reports from AFP and others on July 12, the Knesset (Israel's parliament) announced that it will complete its current term by July 17 and hold elections on the legally permitted final date of October 27.The Knesset stated, "Since the current parliament will complete its term and the next election date is set by law, there is no need for a dissolution bill to shorten the parliamentary term."This election will be the first since 1988 to be held on schedule. Netanyahu's government, which took office in December 2022, is also expected to be the first to complete its term since 1973.Netanyahu has already announced his intention to run for re-election and expressed confidence in his victory. This will be his 12th time leading the Likud party into elections as Israel's longest-serving prime minister.However, this election is likely to serve as a de facto referendum on Netanyahu's leadership. AFP has assessed that it could be a decisive moment that shapes his political career.Netanyahu is expected to focus his election strategy on military operations against Iran and the Lebanese militant group Hezbollah. Last month, he stated, "I will form a broad national unity government that is neither right nor left," emphasizing security and national unity over ideological battles.Recent polls, however, are not favorable for Netanyahu. A survey conducted by the Hebrew University of Jerusalem showed his approval rating dropping from 40.5% in early March to 29.4% in June. Over 92% of respondents believe that Iran emerged victorious in the Middle Eastern conflict involving the U.S. and Israel.Netanyahu also faces criticism for security failures related to the surprise attack by the Palestinian militant group Hamas on October 7, 2023. The prolonged war in Gaza, plans for post-war governance, and ongoing corruption trials against Netanyahu are key issues in the election.The issue of military service obligations for ultra-Orthodox Jewish men could also influence the election outcome. Ultra-Orthodox parties have repeatedly warned of the possibility of withdrawing from the coalition if their supporters are not exempted from military service. In contrast, the Israel Defense Forces and many citizens argue that broad conscription is necessary due to a shortage of troops amid the ongoing conflict.According to polling data from The Economist, the Likud party is likely to remain the largest party, but it is projected that Netanyahu's current coalition, which includes far-right and ultra-Orthodox parties, will not secure a majority of the 120 seats in the Knesset.In the opposition, Gadi Eisenkot, leader of the Yashar party, and former Prime Minister Naftali Bennett are seen as major challengers to Netanyahu. Eisenkot, a former chief of staff of the IDF, participated in Netanyahu's wartime cabinet but resigned after criticizing the war strategy. After founding the Yashar party in 2025, he has gained support from both right-wing and centrist voters, showing an upward trend in polls.Bennett, who has expressed disappointment with Netanyahu, is targeting right-wing voters who do not wish to shift to centrist or leftist positions. He has allied with former Prime Minister Yair Lapid to consolidate the opposition. Lapid and former Defense Minister Avigdor Lieberman are also key figures in the opposition.Israeli voters do not vote directly for a prime minister but cast their ballots for party lists. After the elections, the president will consult with each party to grant the authority to form a government to the politician most likely to create a majority coalition.As a result, even if the Likud party secures the most seats in the election, Netanyahu's chances of continuing in office will depend on the outcomes of coalition negotiations following the election.* This article has been translated by AI. 2026-07-13 15:20:00
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Heat Wave and Tropical Nights: Tips for Coping with Extreme Summer Weather As heat wave and tropical night warnings continue across the country, the extreme weather has become a hot topic online.On July 13, various online communities saw a surge in posts related to 'weather' and 'heat wave.'Users expressed their frustrations, saying, "This is summer, the humidity is insane," "I didn’t step outside all weekend," "France has dropped back to 25 degrees, it’s so unfair," "The heat is one thing, but the humidity is really overwhelming," "I can hardly breathe," and "I thought I was going to lose it during my 20-minute walk to work." Some questioned, "Has it always been this hot in July?"The Korea Meteorological Administration (KMA) has issued heat wave warnings for most regions, including tropical night warnings for areas such as Seoul, Cheongju, Gwangju, Busan, and Jeju. A tropical night occurs when the minimum temperature remains above 25 degrees Celsius from 6 PM to 9 AM the following day.Experts warn that the risk of heat-related illnesses increases on days with high humidity, particularly for the elderly, children, and outdoor workers.To avoid heat exhaustion, it is crucial to stay hydrated. Drink small amounts of water frequently before feeling thirsty, and avoid prolonged outdoor activities during peak hours from 2 PM to 5 PM. When going outside, wearing a sunhat or light-colored, breathable clothing can help reduce body temperature.During tropical nights, maintaining a comfortable indoor temperature is essential. Set air conditioning to around 26-28 degrees Celsius and use fans to enhance cooling efficiency while avoiding excessive cooling. If using only a fan, it is advisable to open windows slightly to circulate air. It is recommended to use air conditioning to cool the entire room rather than directing the airflow directly at oneself.Taking a lukewarm shower or doing light stretching before bed can help lower body temperature. In the bedroom, using blackout curtains can reduce heat accumulated during the day, and opting for cooling or moisture-wicking bedding can aid in achieving restful sleep.However, drinking ice-cold water or very cold beverages in large quantities may provide temporary relief but can burden the stomach for some individuals. It is advisable to drink water at a moderate temperature frequently.* This article has been translated by AI. 2026-07-13 15:20:00
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Kiwoom Asset Management's Lee Kyung-jun: Embracing Volatility as the New Normal in ETF Investments The domestic exchange-traded fund (ETF) market is rapidly growing, with net assets surpassing 500 trillion won. As strategies become more diversified, ETFs have established themselves as a primary investment tool. However, recent increases in market volatility have left investors pondering how to respond strategically. Lee Kyung-jun, head of the ETF division at Kiwoom Asset Management, emphasized in a recent interview with Aju Economy that investment strategies must be restructured with the understanding that volatility is becoming a part of everyday life."Investing in AI is just beginning; there's no need to rush."Lee, an expert who has led the development of various monthly dividend products like covered calls in the domestic ETF market, has monitored the ETF landscape for over 20 years. He identified 'volatility as the new normal' as a key theme currently shaping the market."We should not wait for volatility to decrease," he stated, noting that in the age of artificial intelligence (AI), investors must accept volatility as a new investment environment. He explained that the AI industry is still in its early stages, meaning that winners and losers have yet to be determined, and the emergence of new technologies and revenue models will inevitably increase market volatility. He described this as 'growing pains' in the development process.Lee also clarified that volatility should not be interpreted as a negative signal for AI investments. Rather, he believes that as productivity innovations begin to take hold, there are ample long-term investment opportunities. "Currently, AI civilization investment is in its infancy," he said, adding, "There are still tremendous investment opportunities ahead. There is no need to rush to resolve everything at once.""Focus on CPUs as the future of AI investment; KOSPI is now semiconductor-centric."Lee predicts that the focus of AI investment will shift from graphics processing units (GPUs) and memory to central processing units (CPUs). He explained, "While GPUs handle parallel processing and memory stores data, the role of CPUs will become more critical in the era of agentic AI and physical AI, which solve real-world problems. It is time to pay attention to CPUs."He raised fundamental concerns about the structure of the domestic stock market, stating that the KOSPI is more akin to a semiconductor-themed ETF than a typical market index. "The KOSPI is not a well-diversified market; it is currently focused on the semiconductor AI theme," he noted, adding that it does not differ significantly from U.S. AI semiconductor-themed ETFs.Given the heavy concentration in specific industries, he stressed the importance of asset allocation. Lee advised, "It is necessary to reduce volatility by positioning U.S. stocks as core assets or utilizing mixed bond products. One must temper their ambitions to withstand volatility."This approach is reflected in the 'KIWOOM U.S. S&P 500 Momentum' ETF, which invests in the 100 stocks with relatively strong momentum among S&P 500 constituents. Lee assessed that a momentum strategy that is rebalanced every six months with excellent stocks will align well with the tendencies of domestic investors."Leverage ETFs distort capital flow; caution is needed."Regarding the recent controversy surrounding single-stock leveraged ETFs, Lee expressed the need for a more cautious approach. He stated, "It is difficult to conclude that leveraged ETFs have increased volatility; the cause of volatility lies in the structure of the Korean stock market, not in leveraged ETFs themselves."However, he acknowledged that there are clear side effects that distort capital flow. He explained, "The issue is not the price but the disruption of supply and demand. The phenomenon of capital moving into leveraged ETFs during market downturns, after selling other stocks, distorts capital flow."Lee also pointed out that leveraged ETFs should not be viewed as the same investment products as regular ETFs. He stated, "The core of ETFs is transparency, diversification, and trading convenience, but leverage lacks diversification. They are closer to trading tools. We should create dedicated accounts for leveraged ETFs and allow only investors who have received separate training to trade them. Management measures, such as setting investment limits and restricting transactions by minors, are necessary.""Long-term endurance is more important than reckless investing."Ultimately, Lee reiterated that in the age of AI, risk management will become more important than high returns. He remarked, "Creating products that increase risk is easy, but designing products that reduce risk while generating returns is much more challenging. It is the role of asset managers to incorporate complex financial theories into ETFs, allowing investors to comfortably engage in long-term investments."He also predicted that as the ETF market grows, the investment culture will mature. "Currently, trading-focused investors lead the market, but index-following and monthly dividend investors also consistently exist," he noted. "As time passes, investors will gradually shift towards long-term investment and asset allocation as they gain experience and learn from the market."Finally, he described the current market as a "riding the tiger situation," emphasizing the importance of long-term investment. Lee stated, "Rather than trying to get off the tiger or making reckless investments in pursuit of greater returns, it is crucial to accept volatility and adopt a long-term endurance strategy."He added, "Just as electronic devices perform best when used according to their manuals, investors should choose ETFs that align with their goals and preferences for a comfortable long-term investment. Understanding the structure and characteristics of products and utilizing them appropriately is of utmost importance." 2026-07-13 15:20:00
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Why Middle East conflict remains stuck after nearly five months SEOUL, July 13 (AJP) - About five months have passed, yet the end of the conflict in the Middle East remains nowhere in sight. Fighting has appeared close to stopping several times, only to break out again. Negotiations are underway, but renewed military clashes have left the prospects for a resolution increasingly uncertain. U.S. President Donald Trump continues to criticize Iran, calling it "scum," while Tehran has responded with increasingly hostile rhetoric. Even if an agreement is eventually reached after painstaking negotiations, peace may not follow immediately. Washington said over the weekend that it had launched additional strikes against Iran after accusing Tehran of threatening commercial vessels passing through the strait. Iran, in turn, has warned of retaliation and raised the possibility of restricting passage through Hormuz. Each side insists it is acting defensively. Repeated threats to close the Strait of Hormuz have added to uncertainty, with potential consequences for global energy markets and the broader economy. For much of the world, the strait is simply a narrow waterway on a map. But for the global economy, it is one of the most important arteries on Earth. Roughly a fifth of the world’s oil supply passes through the waterway between Iran and Oman. Any serious threat to its security immediately raises concerns far beyond the Middle East from higher fuel prices and inflation to disrupted supply chains and renewed volatility in financial markets. The latest escalation around Hormuz is a reminder that even when diplomacy appears close to a breakthrough, the deeper forces driving the conflict remain unresolved. A temporary ceasefire or interim agreement may pause the fighting, but it cannot erase decades of hostility and ideological rivalry that have made the region one of the world's most volatile. Disputes over nuclear capabilities, missile programs and maritime security, though important, are ultimately symptoms of a much deeper confrontation. The danger is not only escalation, but uncertainty itself. Markets can absorb disruptions when they are predictable. What really worries governments and businesses is the possibility of a sudden shock such as the closure of shipping routes, a spike in energy prices or attacks that force commercial vessels to avoid the region. For Asia, the stakes are especially high. Unlike the U.S., which has become a major energy producer, many Asian economies remain heavily dependent on imported energy. South Korea, Japan and other manufacturing powers rely on stable energy supplies from the Middle East to keep factories running and transportation systems moving. A prolonged crisis involving Hormuz would not simply affect oil prices at gas stations. It could raise production costs, weaken consumer confidence and add pressure to economies already facing slower growth and geopolitical uncertainty. South Korea faces a particularly delicate challenge. As one of the world’s largest energy importers, it has long relied on Middle Eastern crude oil. Although Seoul has diversified its energy sources and maintained strategic reserves, no country can fully shield itself from turmoil in a region that remains central to global energy flows. But the Hormuz crisis is about more than oil. At its core, the conflict reflects a struggle over the future balance of power in the Middle East. Iran's revolutionary government has for decades sought to expand its influence beyond its borders by supporting allied groups across the region. Israel sees that as a threat to its survival and has sought to weaken Iran's regional position. The U.S. has become deeply involved because of its alliance with Israel, its military presence in the Gulf, and its broader interest in keeping shipping routes open. This cycle has been hard to break because the conflict is not just about individual disputes. It is rather rooted in competing visions of regional order. Iran sees itself as a defender of resistance against outside influence and Israeli power. Its opponents see Tehran’s regional activities as efforts to expand its revolutionary ideology and destabilize neighboring countries Israel argues that Iran's military capabilities and allied groups pose an unacceptable security threat. Critics, however, argue that Israel's military responses have often fueled regional anger and made long-term peace more difficult. The tragedy is that both sides have reasons to keep fighting, while ordinary people and distant economies bear much of the cost. A lasting settlement will require more than deals on nuclear programs, missile development and shipping rules. Those issues matter, but the deeper problems must also be addressed. Iran would need to reduce its support for regional armed groups, while Israel would need to tackle the unresolved Palestinian issue that remains a major source of anger across the region. That may seem unrealistic in the current climate. Years of mistrust have hardened positions on all sides. But history shows that even conflicts once considered permanent can change when political leaders decide that the cost of confrontation has become greater than the benefits. The world should hope for such a shift, because Hormuz showed that regional conflicts rarely remain regional anymore. A crisis thousands of kilometers away can hit countries like South Korea and others across Asia, driving up inflation, disrupting industries, and affecting national security and everyday life. The strait may be narrow, but its consequences stretch across the globe. The future of that waterway will depend not only on military power, but also on whether diplomacy can finally address the deeper conflicts that continue to push the region toward the brink. 2026-07-13 15:17:13 -
Minister Park Hong-keun: 2027 Budget to Exceed 800 Trillion Won, Up Over 10% from This Year The government plans to allocate more than 800 trillion won for total expenditures next year. A new "future response fund" will also be established to utilize a significant increase in tax revenue for securing future growth engines, including artificial intelligence (AI) and industrial transformation.Park Hong-keun, Minister of the Office for Government Policy Coordination, reported on the "2027 budget proposal and medium-term fiscal management direction" during a national fiscal strategy meeting chaired by President Lee Jae-myung at the Blue House on July 13.Minister Park stated, "National tax revenue for 2027 is expected to reach at least 500 trillion won, significantly exceeding the initial forecast of 412 trillion won, marking the highest level ever."He added, "Next year's total expenditures will be structured at over 800 trillion won, which is more than a 10% increase from this year's original budget of 727.9 trillion won."Minister Park emphasized the need for bold fiscal investment to respond to structural changes such as AI and industrial transformation. He also unveiled plans for the future response fund, which aims to leverage the substantial increase in tax revenue for future investments.He explained, "The future response fund will serve as a new fiscal management platform that transcends the limitations of annual budgets and will provide a strategic investment foundation to support a rebound in potential growth rates. We will accumulate tax revenue increases that exceed long-term trends in the fund to secure stable investment resources."The government plans to use the future response fund to mitigate tax revenue volatility while focusing investments in four key areas: the youth generation, future growth engines, local regions, and talent development.* This article has been translated by AI. 2026-07-13 15:12:00
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Financial Holding Companies Differ from Samsung and SK Amid Delayed Governance Reforms Financial holding companies' governance reform plans have been postponed from the originally scheduled March announcement to the second half of the year. However, the government continues to emphasize the public nature of finance and the need for enhanced internal controls, suggesting that the overall reform direction remains intact.According to the financial sector on July 13, financial authorities were expected to announce improvements to the governance of financial holding companies in March. However, prolonged coordination with the presidential office has delayed the announcement without a specific timeline.The reform plan is expected to include criteria for CEO reappointments, strengthening board independence, and expanding clawback provisions. The focus appears to be on improving governance through best practices and guidelines rather than through legislative changes.As the announcement has been delayed by nearly four months, some speculate that the government's commitment to reform may have weakened. However, many in the financial sector interpret this as a process of fine-tuning specific criteria rather than a shift in policy direction.Kim Yong-beom, head of the policy office, recently stated at a forum, "While foreign ownership in financial holding companies exceeds 60%, they cannot be viewed in the same light as Samsung or SK."The foreign ownership rates in the four major financial holding companies—KB, Shinhan, Hana, and Woori—are mostly above 60%. This suggests a different governmental perspective on these sectors, as both Samsung Electronics and SK Group also have foreign ownership exceeding 50%. The government views high-tech industries like semiconductors as strategic sectors that need nurturing for national competitiveness, while finance, with its strong public nature, requires stricter management and accountability.Although Kim's remarks did not directly address governance reform, they reflect the government's view that financial holding companies should not be left solely to management autonomy but should also enhance public accountability and responsibility.This stance aligns with previous comments from President Yoon Suk Yeol, who stated during a cabinet meeting in May that "finance must play a public role of more than 50%" and urged the financial sector to focus on its social responsibilities in addition to profitability. In a report from the Financial Services Commission at the end of last year, it was criticized that "left unchecked, a corrupt inner circle emerges, allowing a few to exercise control at will."As a result, while the announcement of the reform plan has been delayed until the second half of the year, there is a strong likelihood that the focus on strengthening board oversight, internal controls, and executive accountability will remain.A financial sector official commented, "We must find a balance that enhances the public nature and responsibility of financial companies without excessively undermining management autonomy."* This article has been translated by AI. 2026-07-13 15:12:00