AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • Jokuk Innovation Party Appoints Local Leaders Ahead of General Election
    Jokuk Innovation Party Appoints Local Leaders Ahead of General Election The Jokuk Innovation Party has appointed 11 local leaders, including Jokuk Innovation Policy Institute head, ahead of the upcoming general election. The head will take on the role of local leader for Pyeongtaek, a position he sought during the June by-elections.At a press conference held on the 13th at the National Assembly, Secretary-General Jeong Chun-sang, who chairs the party's Organizational Strengthening Special Committee, announced the list of local leaders, stating, "We have selected individuals who can responsibly lead the local committees and realize the values of a clear reform party."The newly appointed local leaders include: △Kim Jun-hyung, floor leader (Mapo, Seoul) △Jeong Chun-sang, Secretary-General (Gangseo, Seoul) △Park Byeong-eon, spokesperson (Seodaemun, Seoul) △Lee Gyu-won, strategic committee chair (Yeongdeungpo, Seoul) △Baek Seon-hee, lawmaker (Goyang, Gyeonggi) △Kang Gyeong-suk, lawmaker (Iksan, Jeonbuk) △Hwang Hyeon-seon, Supreme Council member (Jeonju, Jeonbuk) △Bae Su-jin, education training center head (Gwangsan, Jeonnam) △Cha Gyu-geun, Supreme Council member (Daegu, Suseong) △Im Myeong-hee, spokesperson (Gangneung, Gangwon). The local leaders, selected through the committee's review, will be finalized after being reported to the Supreme Council meeting on the 14th and receiving approval from the party affairs committee.Secretary-General Jeong emphasized, "We have chosen individuals who can identify various local issues and possess the vision and execution capabilities necessary for regional change and development. They are equipped to expand and strengthen local organizations and enhance the party's competitiveness in upcoming elections."He added, "The local leaders will become the permanent civil service corps in our neighborhoods, responding first to various local issues. They will convey the vibrant voices from the field into policy and establish strong roots of self-reliance in the community."Additionally, the Jokuk Innovation Party has designated the newly appointed local leaders as the 'first Bulsaejo local leaders.' This designation aims to ensure that the local leaders take the lead in conveying the party's commitment to fighting inequality to the public. The party plans to review additional regions that require strategic consideration and further evaluation before selecting and announcing a second group of Bulsaejo local leaders.* This article has been translated by AI. 2026-09-13 14:56:10
  • Saudi Arabia Faces Dilemma Amid Iranian and Houthi Aggression
    Saudi Arabia Faces Dilemma Amid Iranian and Houthi Aggression Saudi Arabia, the world's largest oil exporter, is caught in a dilemma regarding its security and oil exports. As Iranian and Iranian-aligned forces intensify their attacks, the kingdom finds it increasingly difficult to engage in full-scale military operations or negotiations. Furthermore, uncertainty surrounding military support from the Trump administration has narrowed Saudi Arabia's options, according to an AP report.Key oil transport route targeted, suspected Iranian-backed attackRecently, Saudi Arabia's oil transport network has faced multiple disruptions both on land and at sea. Reports indicate that on September 12, a drone attack targeted the Riyadh-Medina region, halting operations on the east-west pipeline that transports oil from the eastern oil fields to the Red Sea port of Yanbu.This approximately 1,200-kilometer pipeline is a crucial alternative route for transporting Saudi oil to the Red Sea without passing through the Strait of Hormuz. Saudi Arabia has been using this route to divert about 5 million barrels of oil daily in anticipation of a potential blockade of the Strait of Hormuz, which accounts for 4-5% of global oil supply.While the drone used in the attack is believed to have been launched from Iraq, the exact perpetrators remain unclear. AP has suggested that Iranian-backed militias operating in Iraq, possibly supported by Yemen's Houthi rebels, may have led the attack. However, the Saudi Foreign Ministry stated it would refrain from retaliatory strikes at the request of the Iraqi government.Houthis expand control over Bab-el-Mandeb Strait, increasing pressureSaudi Arabia's maritime transport routes are also under threat as the Iranian-aligned Houthi rebels rapidly expand their influence along the Red Sea coast. According to AP and AFP reports on September 11, the Houthis have taken control of the key port city of Mocha and, within a day, captured the strategic island of Perim in the Bab-el-Mandeb Strait.The Bab-el-Mandeb Strait is a vital maritime gateway at the entrance to the Red Sea. As the Houthis strengthen their grip in this area, Saudi Arabia's ability to export oil through the Red Sea is increasingly jeopardized. The alternative transport routes established to bypass the Strait of Hormuz are now being threatened on both land and sea.The International Energy Agency (IEA) reported on September 11 that Saudi oil supply has fallen to its lowest level in over 30 years, partly due to attacks on vessels passing through the Bab-el-Mandeb Strait by groups linked to the Houthis.Challenges of war and negotiation, U.S. military support uncertainThe challenge for Saudi Arabia is that expanding its military response to the Houthis into a full-scale war is not straightforward. If Saudi Arabia escalates its offensive, it risks a prolonged conflict and increased retaliatory attacks on its energy infrastructure by the Houthis.Since 2015, Saudi Arabia has led a coalition of Arab forces in the Yemeni civil war against the Houthi rebels but has achieved limited success on the ground. The conflict has resulted in approximately 150,000 deaths and left Yemen facing a famine crisis. Since a ceasefire in 2022, Saudi Arabia has focused on economic reforms and regional stability.Middle East expert Neil Quilliam told AP, "The pressure on Saudi Arabia to respond to the recent Houthi advances has increased, but every option carries significant costs and uncertain outcomes."Finding a diplomatic solution is also challenging. The Houthis are demanding that Saudi Arabia halt airstrikes and lift the blockade on Yemen as conditions for negotiations. Accepting these terms could enhance the Houthis' long-term influence, posing a dilemma for Saudi Arabia.U.S. support is also uncertain. Saudi Arabia and other Gulf states have relied on American security guarantees for decades, but assessments indicate that the willingness of the Trump administration to intervene has diminished compared to the past.According to Axios, Mohammed bin Salman, the de facto ruler of Saudi Arabia, called President Trump twice on September 10 to request attacks on the Houthis, but Trump declined. Instead, the U.S. agreed to provide Saudi Arabia with intelligence on potential targets against the Houthis.AP analysis suggests that the U.S. is currently focused on deploying large military forces around the Strait of Hormuz to pressure Iran and prevent attacks on vessels, limiting its capacity for another military operation in Yemen. Additionally, growing negative public sentiment regarding war in the U.S. ahead of the November midterm elections adds to the challenges. 2026-09-13 14:56:10
  • Hana Bank Expands Financial Cooperation with Uzbekistan, Plans Local Office
    Hana Bank Expands Financial Cooperation with Uzbekistan, Plans Local Office Hana Bank announced that it has signed a memorandum of understanding (MOU) with the Uzbekistan Ministry of Investment, Industry, and Trade to enhance mutual cooperation in investment and finance. The agreement was established to strengthen financial and economic cooperation between the two countries ahead of the upcoming '1st Korea-Central Asia Summit' scheduled for September 16 in Seoul. Under the MOU, both parties will explore financial cooperation opportunities in Uzbekistan and support Hana Bank's entry into the local market. They will also promote collaboration for the development and modernization of Uzbekistan's financial industry. Additionally, the two sides plan to support the expansion of investments and trade between their companies and continuously identify new cooperative projects in the financial sector. Hana Bank has designated Uzbekistan as a key hub for its expansion into Central Asia and is working on establishing a local representative office. Once established by the end of this year, the office will review opportunities in the Central Asian financial market and refine its local entry strategy. A Hana Bank official stated, “With this agreement, we aim to solidify our cooperative relationship with the Uzbekistan government and discover various projects that can contribute to the financial and economic development of both countries. We will expand Hana Bank's global network and financial capabilities in Central Asia, using Uzbekistan as our base.”* This article has been translated by AI. 2026-09-13 14:56:00
  • Samsung Securities Expands Global Network with BNY Asset Management MOU
    Samsung Securities Expands Global Network with BNY Asset Management MOU Samsung Securities announced on September 13 that it signed a comprehensive memorandum of understanding (MOU) with BNY, a global financial services group, in New York on September 10 (local time) to collaborate on global asset management and financial solutions.The agreement aims to enhance infrastructure in key traditional securities business areas, including stock brokerage, clearing services, securities collateral management, and securities financing.Additionally, the partnership will expand into new business areas such as AI and digital assets, broadening both companies' global networks and providing innovative solutions to clients.Founded in 1784, BNY is the oldest global financial services group in U.S. history, offering a range of services including asset custody, investment management, and capital market solutions across more than 100 markets worldwide.Katrinka Wallstrom, BNY's Chief Client Officer, stated, "This MOU will combine Samsung Securities' leadership in the Korean market with BNY's capabilities in the global market. We plan to collaborate to provide innovative solutions that meet the evolving needs of our clients by merging our strengths in various areas."Park Jong-moon, President of Samsung Securities, emphasized, "Through our collaboration with BNY, which has led the standards in the global financial market, we have expanded our coverage not only in traditional financial infrastructure but also in the digital finance sector. We will continue to offer differentiated financial solutions at a global level to domestic investors."During his trip to the U.S., Park also met with major global partners, including Morgan Stanley, to discuss expanding channels for overseas investment information for domestic institutions and individual investors, as well as introducing advanced financial services. 2026-09-13 14:56:00
  • Lee Chang-dongs Possible Love Wins Jury Prize at Venice Film Festival
    Lee Chang-dong's 'Possible Love' Wins Jury Prize at Venice Film Festival Korean cinema has returned to the Venice Film Festival podium after 14 years. Lee Chang-dong's latest film, 'Possible Love,' won the Jury Prize at the 83rd Venice International Film Festival. This marks the first time a Korean film has received this award, which is the second highest after the Golden Lion. The last time a Korean film won an award in the Venice competition was in 2012 with Kim Ki-duk's 'Pietà.' For Lee, this is his first award since winning Best Director for 'Oasis' in 2002, and it comes eight years after his last feature, 'Burning.'Notably, during the award ceremony, Lee emphasized the purpose behind his film. He stated that he created 'Possible Love' to explore what cinema can do in an era where labor is disappearing and human relationships are fraying. Instead of focusing solely on the joy of winning, he reflected on his motivations for filmmaking. The film, which intertwines the lives of a couple of laid-off workers and a documentary filmmaker couple, delves into the complexities of contemporary society and human desires.Korean cinema's strength on the global stage is evident in its ability to tackle pressing social issues. Films like 'Parasite' examined class divides, while 'Burning' explored the anxieties and anger of the younger generation. Rather than adhering to familiar box office formulas, these films have persistently probed uncomfortable aspects of Korean society, achieving international recognition. The success of these films cannot be attributed solely to high production costs or flashy visuals; it stems from creators' inquiries into what stories need to be told and why they matter now.Despite the accolades, challenges remain for the domestic film industry. Last year, box office revenue fell by 12.4% compared to the previous year, with attendance dropping by 13.8%, totaling 1.047 trillion won and 10.6 million viewers. However, the first half of this year showed a significant recovery, with revenue and attendance increasing by 41.9% and 34.2%, respectively. While this is a positive change, it is premature to conclude that the industry's fundamentals have shifted based on a few successful films. In tough market conditions, investments tend to gravitate toward proven materials, well-known actors, sequels, and franchises, often sidelining innovative projects that are harder to market.'Possible Love' is also significant as Lee's first film produced for Netflix. The landscape of film production and distribution is rapidly evolving, and the dichotomy between theaters and online streaming services is becoming outdated. What matters is not the platform but the stories that can reach audiences. The future competitiveness of Korean cinema hinges on how much room creators have to pursue their inquiries without being confined to commercial formulas.Both the government and the film industry should not merely celebrate this award as another triumph for K-content. The strength of the film industry cannot be measured by producing a few blockbusters. A nurturing environment is needed where commercial films, independent and art films, newcomers, and established directors can tell their stories in their own ways. The industry must address the structural issues that lead to the premature demise of promising projects simply because they lack immediate box office potential. Lee interpreted this award as a call to continue asking questions, a challenge that also applies to the Korean film industry. In an era where commercial formulas and algorithms dictate the success of content, can enduring films still be made? Venice has reaffirmed that the strength of Korean cinema lies in its ability to deeply examine its own society and persistently question its narratives. 2026-09-13 14:44:10
  • Youth Employment Crisis: Worst Since the Asian Financial Crisis
    Youth Employment Crisis: Worst Since the Asian Financial Crisis The employment market is showing signs of recovery, but a troubling reality lies behind the numbers. Young people in their 20s, who are most in need of jobs, are being rapidly pushed out of the labor market. From January to August this year, the average number of employed individuals in their 20s was 3.279 million, a decrease of 193,000 compared to the same period last year. This decline is the largest since the Asian financial crisis in 1998, marking a 28-year high. The rate of employment decline among those in their 20s has outpaced the decrease in their population during the same period, making it difficult to attribute the issue solely to a shrinking youth demographic.When compared to overall employment indicators, the problem becomes even clearer. In August, the total number of employed individuals reached 29.151 million, an increase of 184,000 from a year earlier. The employment rate for those aged 15 to 64 also hit a record high of 70.4% for August. However, the youth employment rate fell to 44.1%, down 1.0 percentage points from the previous year, with 143,000 fewer young people employed. While the overall job market remains stable, young people are not benefiting from this recovery.More concerning is the fact that the youth employment crisis is solidifying into a structural issue that goes beyond temporary economic downturns. Companies have changed their hiring practices, shifting from large-scale regular recruitment to more frequent and experienced hiring, which has narrowed opportunities for young people entering the labor market for the first time. From the companies' perspective, there is a greater incentive to prefer experienced candidates who can be immediately productive over new hires who require training and development.Changes in industrial structure are also unfavorable for young people. Continued employment struggles in manufacturing and construction, coupled with the rise of artificial intelligence (AI) and digital transformation, are altering entry-level jobs in office and information technology sectors. There is a growing risk that the very concept of 'entry-level' positions, which traditionally allowed individuals to gain experience and develop into skilled professionals, may diminish.Delays in securing first employment can have lasting impacts that extend beyond months or years. A late entry into the labor market results in lost opportunities to build experience and delays in wage growth. Without income, young people may postpone significant life events such as marriage, childbirth, and home ownership. This youth employment issue is linked to declining birth rates, sluggish domestic demand, and falling potential growth rates.The government has introduced measures to address youth employment, but the focus of these policies needs to be clearer. Simply increasing short-term jobs to boost employment numbers is insufficient. It is essential to broaden pathways for young people to enter the labor market, gain experience in private companies, and secure long-term employment. Efforts should be made to reduce the burden of hiring and training on companies, ensuring that internships and vocational training lead to actual employment. Policies connecting workforce development and hiring in growth industries such as AI, semiconductors, biotechnology, and energy are also necessary.Companies must also adapt. If all companies are only seeking experienced candidates, where will these candidates come from? Someone must provide young people with their first opportunity. Hiring new employees and nurturing talent should not be viewed solely as a cost but as an investment in future competitiveness. The government should not only appeal to companies to hire young people but also focus its policy efforts on creating an environment where businesses can invest and hire effectively.The record decline in youth employment, the largest since the Asian financial crisis, should not be taken lightly. While the employment shock of 1998 was a product of an economic crisis, the current situation is a complex structural issue intertwined with demographic changes, industrial transitions, and shifts in hiring practices. The most critical form of welfare for young people is ultimately employment, and youth jobs are vital for South Korea's future growth. The numbers that the government should focus on now are not the 184,000 increase in total employment but the 193,000 decrease in youth employment. Expanding pathways for young people to re-enter the labor market must become the top priority of current employment policies. 2026-09-13 14:44:10
  • AI Industry Faces Slowdown as Companies Adjust Development Pace
    AI Industry Faces Slowdown as Companies Adjust Development Pace The AI industry, which has been rapidly advancing, is now entering a phase of slowdown. Leading companies in the sector are voluntarily slowing their development pace, driven by internal crises triggered by researcher resignations and the recent disclosure of AI weaponization by state-linked organizations.On September 12, Dario Amodei, CEO of Anthropic, published a 4,000-word essay on the company’s website titled "We Must Pace the Frontier," stating that the speed of improving AI models must be reduced. He cited the unexpectedly rapid advancement of AI's self-improvement capabilities and a recent cyberattack involving OpenAI's AI agents as reasons for this necessary slowdown.◆ Three-Stage 'Pacing the Frontier' ProposalAmodei's proposal for pacing the frontier consists of three stages: granting third-party evaluators access to employee badges, workstations, and systems to establish an independent monitoring system; quickly developing a self-regulatory framework across the industry; and promoting global cooperation to coordinate the pace of AI development between democratic and authoritarian governments.However, Amodei acknowledged in his essay that verifying intergovernmental coordination is challenging. He clarified that the proposal is not about halting model training or technological progress but rather about 'controlling the speed.'Amodei's call for a slowdown was quickly echoed by competitors. Sam Altman, CEO of OpenAI, responded on X (formerly Twitter) just hours after the essay's release, stating, "Dario is right. We also need to participate in controlling the pace of AI development," and promised to implement similar safety measures. In an interview with Fortune on the same day, Altman mentioned that due to safety concerns, an initial public offering (IPO) this year would be premature. Elon Musk, CEO of Tesla and xAI, also expressed support, stating, "Dario is correct," indicating a consensus among leaders of top AI companies on the need for a slowdown.This shift in Amodei's stance is linked to the resignation of Jacob Coxon, a researcher who had been responsible for pre-training research at OpenAI and Anthropic for three years. He announced his resignation on September 8, claiming that both companies were recklessly racing toward self-improving superintelligence, gambling with lives. His resignation garnered over 90 million views within a day, causing a significant stir.Coxon later expressed concerns in media interviews, stating, "When under competitive pressure, there is no choice but to skip oversight procedures." Evan Hubinger, head of alignment stress testing at Anthropic, publicly supported Coxon's claims, estimating that AI has a greater than 10% chance of leading to human extinction within the next decade.Industry interpretations suggest that incidents such as the OpenAI AI agent breaching the Hugging Face system in July and the agent taking over a secret messaging board on the German developer wiki in May have fueled the push for a slowdown.◆ Growing Industry Concerns Since JulyThe momentum for this essay can be traced back to July 28, when over 1,300 employees from major AI companies, including OpenAI, Anthropic, Google DeepMind, and Meta, signed a statement requesting the U.S. government to establish international cooperation to address the risks of recursive self-improvement. This statement, titled "Pacing the Frontier," called for the development of technological and governance measures.Among the signatories were Amodei, OpenAI's chief scientist Jakub Pachocki, Google DeepMind co-founder Shane Legg, and Meta's chief scientist for the Superintelligence Lab, Shengjia Zhao, highlighting the involvement of key researchers from rival companies.Demis Hassabis, CEO of Google DeepMind, expressed in an interview, "If all companies and countries were to stop simultaneously, I would want to do the same," indicating his support for coordinated speed control. In contrast, Mark Zuckerberg, CEO of Meta, published an op-ed in The Wall Street Journal around the same time, emphasizing the need to expand AI accessibility, showcasing a clear divide within big tech regarding the pace of AI development.There are also critical perspectives on the slowdown discourse. Investor and podcast host Chamath Palihapitiya criticized Amodei's essay, suggesting it aims to stifle open-source initiatives and concentrate significant technological and economic power within Anthropic, raising suspicions that the call for 'safety' is a means to institutionally block competition from latecomers or the open-source community.◆ AI Weaponization Attempts by State-Linked OrganizationsOn September 11, a day before Amodei's essay, Anthropic released a 154-page report detailing the misuse of AI by state-linked organizations. The report revealed that a threat organization linked to Iran, named GTG-30005, utilized Claude to analyze publicly available military photos, satellite images, and data on the locations of naval vessels and aircraft to track the movements of U.S. Navy ships stationed in the Middle East and to focus on vulnerabilities in communication and control systems. Anthropic stated that it detected this activity in advance, suspending the accounts involved and cooperating with authorities.Additionally, a Yemen-based Houthi-linked organization (GTG-87001) attempted to develop software for ballistic missiles and hypersonic gliders with a range exceeding 2,000 kilometers using Claude. Chinese government-linked entities employed Claude to surveil Uyghur journalists in Syria and monitor Asian religious leaders, while Russian-linked groups reportedly attempted to build autonomous lethal drone swarms using data from the Ukraine front and to promote pro-Russian narratives in Africa.Anthropic noted that while safety measures blocked many requests, they could not prevent all misuse. The report also mentioned that a specific state-linked entity attempted to develop biological weapons using Claude but did not disclose the identity of the related country.* This article has been translated by AI. 2026-09-13 14:40:20
  • French and Canadian AI Companies Expand Presence in South Korea
    French and Canadian AI Companies Expand Presence in South Korea South Korea's artificial intelligence (AI) market is attracting attention from various countries, including France and Canada, as companies look to expand beyond the U.S. and China. Following Canadian AI firm Cohere, French AI company Mistral is also establishing a local presence and increasing its hiring efforts.According to industry sources, Mistral is actively pursuing entry into the South Korean market. In June, the company posted a job listing for a 'Senior AI Business Strategist' to work in Seoul and is currently hiring developers, including application scientists and machine learning full-stack engineers.Mistral, founded in 2023 by former employees of Google DeepMind and Meta, has been recognized as Europe's equivalent of OpenAI and is at the forefront of France's 'sovereign AI' movement.On September 8, Mistral announced it raised €3 billion (approximately 4.68 trillion won) in a Series D funding round that included participation from Samsung Electronics. This funding round has valued the company at over €21 billion (about 32.8 trillion won).Not to be outdone, Canadian firm Cohere announced last month that it has established a subsidiary in South Korea, aiming to use it as a foothold for the Asia-Pacific market. At that time, the company outlined plans to collaborate with local model developers and system integrators, currently partnering with LG CNS.Cohere was founded in 2019 by Aidan Gomez, a co-author of the influential 'Transformer' paper on generative AI technology. The company is focusing its business expansion on the enterprise AI market rather than consumer AI.The growing interest from global AI companies like Mistral and Cohere in the South Korean market is attributed to the country's high AI usage rates and rapidly increasing demand for enterprise AI solutions. According to a report from Microsoft's AI Economy Institute, the usage rate of generative AI in South Korea rose to 30.7% in the second half of last year, an increase of 4.8 percentage points from the first half, marking the largest rise among major countries.The Bank of Korea noted that the speed of AI adoption in the country is unusually rapid compared to previous digital technologies. Seo Do-hyung, a researcher at the Bank of Korea's Employment Research Team, stated, "The utilization rate of generative AI for work purposes among South Korean workers is 51.8%, which is more than double the 26.5% rate in the United States."Demand for enterprise AI is also on the rise. An analysis by the Korea Information Society Development Institute (KISDI) of 38,522 domestic business reports found that 53.7% of companies included AI-related content in their reports in 2024, surpassing non-AI firms.Seo Young-sun, a KISDI research fellow, commented, "The application of AI in domestic companies is rapidly shifting from technology development to practical business applications. Recently, the use of generative AI and AI hardware has increased, leading to more practical and efficient implementations of AI in businesses."Internationally, South Korea is viewed as a significant market for global AI companies. The U.S. Department of Commerce's International Trade Administration (ITA) noted in a digital economy analysis report published in June that South Korean large corporations' investments in AI are moving beyond initial experiments to ecosystem development. The expansion of AI adoption across various industries, including manufacturing, healthcare, and finance, is creating new business opportunities for foreign technology firms.* This article has been translated by AI. 2026-09-13 14:40:10
  • Cash Services and Revolving Credit Rise Amid Concerns Over Household Debt Quality
    Cash Services and Revolving Credit Rise Amid Concerns Over Household Debt Quality Cash services and revolving credit balances, essential for many households, continue to rise. As banks and credit card companies tighten household loan management, demand for short-term, high-interest products is increasing. Concerns are growing that the quality of household debt, which has reached 2,000 trillion won, may deteriorate as funding conditions worsen for low- and middle-income borrowers.According to the Korea Credit Finance Association on September 13, the combined card loan balance of nine major credit card companies, including Samsung, Shinhan, KB Kookmin, Hyundai, Lotte, Hana, Woori, BC, and NH Nonghyup, was 42.7957 trillion won at the end of July. This marks a decrease of 1.136 billion won from the end of June, when the balance was 42.9093 trillion won.Although card loan balances surged to an all-time high in May, they have decreased for two consecutive months in June and July. This decline is attributed to credit card companies reducing card loan marketing and adjusting limits, along with the effects of bad debt write-offs and sales at the end of the quarter.In contrast, cash service balances have increased significantly. The cash service balance for the nine card companies at the end of July was 7.0251 trillion won, up 240.9 billion won from the previous month’s 6.7842 trillion won. The revolving credit balance, which allows some card payments to be carried over to the next month, also rose by 43.9 billion won to 6.8759 trillion won.Personal credit loan balances in online peer-to-peer (P2P) lending are also growing rapidly. Middle- and low-credit borrowers, pushed out of bank loan channels, are seeking alternative funding sources. By the end of August, the P2P personal credit loan balance reached approximately 610 billion won, a 3.5-fold increase from 174 billion won in January. The total loan balance of 46 domestic P2P companies also rose by 41.1%, from 1.6072 trillion won at the end of last year to 2.2671 trillion won by the end of August.This trend is driven by stringent household loan management by financial authorities. With the loan growth target significantly lowered compared to last year, credit card companies have had to reduce card loan supply. As lending regulations tighten in the banking sector and card loan thresholds rise, some short-term funding demand is shifting to cash services and revolving credit.The concern is that as funding demand shifts to higher-cost short-term card financing, the quality of debt may worsen. Low- and middle-credit borrowers who repeatedly use high-interest short-term products may accumulate interest burdens, increasing the risk of delinquency.As of the end of July, the average interest rate for card loans among eight major credit card companies was 14.15% per year. The interest rates for revolving credit and cash services were higher, at 17.38% and 18.16%, respectively.With the Bank of Korea returning to a tightening stance, rising interest rates could further increase the burden on vulnerable borrowers.According to the Bank of Korea's 'Financial Stability Report for the First Half of the Year,' vulnerable borrowers, defined as those with multiple debts and low income or credit, accounted for 6.7% of all household borrowers at the end of the first quarter of this year, up from 6.4% in the third quarter of last year. The proportion of loans held by vulnerable borrowers also increased from 4.9% to 5.2% during the same period. The share of 'potentially vulnerable borrowers' reached 18.0% at the end of the first quarter.A financial industry official stated, 'As authorities include card loans in household loan management, some low- and middle-credit borrowers are shifting to cash services or revolving credit, which have higher interest rates than card loans. This increases the risk of loan defaults and the number of high-risk borrowers, highlighting the need for supplementary measures targeting vulnerable groups.' 2026-09-13 14:40:10
  • Highway Toll Evasion by Repeat Offenders Surges to 370,000 Vehicles
    Highway Toll Evasion by Repeat Offenders Surges to 370,000 Vehicles More than 370,000 vehicles were reported as repeat offenders for failing to pay highway tolls at least 20 times last year, marking an 80% increase over three years. Nearly half of all unpaid tolls originated from these habitual offenders.According to data submitted by the Korea Expressway Corporation to Jeong Jong-tae, a member of the National Assembly's Land, Infrastructure and Transport Committee, the number of vehicles that failed to pay tolls 20 or more times rose from 210,000 in 2022 to 374,000 last year, a 78.1% increase.The amount of unpaid tolls from repeat offenders also surged from 22.2 billion won to 42.9 billion won during the same period, a 93.2% increase.Last year, the total number of unpaid highway tolls reached 38.5 million. Of these, 17.4 million, or 45.1%, were attributed to vehicles that failed to pay tolls 20 or more times. This means that approximately 4.5 out of every 10 unpaid tolls came from repeat offenders.Some individual vehicles have been identified as having failed to pay tolls thousands of times. The vehicle with the highest number of unpaid tolls recorded 3,550 instances of non-payment since July 2022, amounting to 14.59 million won. After measures including vehicle and bank account seizures and criminal charges, 2,550 instances and 10.3 million won were recovered, but 1,000 instances and 4.29 million won remain unpaid.The second-highest offender has not paid tolls 3,168 times since August 2021, totaling 9.92 million won. This vehicle has also faced seizure and criminal charges.Overall, unpaid tolls are on the rise. The number of unpaid instances increased from 25.3 million in 2022 to 38.5 million last year, a 52.4% rise. The total amount of unpaid tolls also grew from 65.59 billion won to 99.44 billion won, a 51.6% increase.The Korea Expressway Corporation is actively pursuing notifications, collections, and enforced recovery of unpaid tolls, noting that the collection rate reaches about 94% after approximately five years. However, the increasing number of repeat offenders and the total amount of unpaid tolls have raised concerns about the need to address habitual non-payment early.With the expansion of Hi-Pass usage and the normalization of non-stop tolling, it is essential to quickly resolve simple errors in payments while increasing collection efforts for intentional repeat offenders from the outset.Jeong stated, "To ensure fairness for citizens who diligently pay their tolls, we must reduce the situation where hundreds or thousands of unpaid instances accumulate. We need to promptly address and resolve non-payments due to device errors or simple mistakes, while implementing effective collection measures for habitual evaders from the early stages."* This article has been translated by AI. 2026-09-13 14:40:00