AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • AI Begins Protecting South Koreas Borders, Transforming Customs Administration
    AI Begins Protecting South Korea's Borders, Transforming Customs Administration Artificial intelligence (AI) has started to protect South Korea's borders. By taking a photo of the ingredient list of imported food and pharmaceuticals with a smartphone, AI can determine whether the items are harmful. This process, which previously took over five minutes, has been reduced to about five seconds. AI is also being used to detect reselling and tax evasion disguised as overseas direct purchases, as well as to track complex trade and foreign exchange crimes. At the center of this transformation is Lee Jong-wook, the Commissioner of the Korea Customs Service. The hallmark of Lee's AI policy is clear. It does not merely involve importing a massive AI system from outside. Instead, field officials, who have the best understanding of customs operations, identify problems and create solutions using AI. In short, it is an 'AI Transformation (AX) starting from the field.' The Korea Customs Service has been training hybrid talents with expertise in customs operations and big data and AI analysis since 2017. In 2026, it selected 50 AI analysts from customs offices nationwide to form the AX promotion team. During the first half of 2026, the 'Korea Customs Service AX Challenge' featured 22 cases led by field AI analysts, with eight advancing to the finals. The Customs Service has expanded its previous 'AI and Big Data Awards' to hold the AX Challenge twice a year starting this year. AI Government's Answers Are Found in the Field As the era of AI revolution unfolds, government agencies and public institutions are competing to adopt AI. However, simply establishing an AI system does not equate to innovation. Even if hundreds of millions are spent on creating an AI platform, it is meaningless if it is not used in the field. Conversely, if even a small AI program reduces the workload of officials and provides better services to the public, that is true AI innovation. This is the point that Lee Jong-wook emphasizes. He stated during the first half of 2026's Korea Customs Service AX Challenge, "To realize an AI government, each customs official at the citizen interface must be able to utilize technology to connect policy and field administration execution." Government AI innovation does not occur solely through directives from ministers or commissioners. Field officials must understand AI and apply it to their work. The essence of Lee's AI administration lies here. It may be quicker to teach customs experts AI than to teach AI experts about customs operations. AI Solves Tasks That Previously Took Five Minutes in Just Five Seconds The best example of the Korea Customs Service's AI innovation is the 'model that blocks illegal food and pharmaceuticals from abroad with a single photo.' The food and pharmaceuticals imported from overseas are directly related to public health. Customs officials must verify product names and ingredient lists to determine whether they are harmful. Previously, this verification took over five minutes. With AI, the situation has changed. By taking a photo of the product name and ingredient list with a smartphone, AI analyzes the information and checks in real-time whether the items are harmful. The task that once took over five minutes now takes about five seconds. This model was developed by Lee Byung-seok, a customs officer at Gwangju Customs, and won the grand prize at the first half of the 2026 Korea Customs Service AX Challenge. AI innovation does not necessarily have to be a massive project. It starts with identifying everyday inconveniences in the field and solving them with AI. If small innovations spread to thousands of officials and benefit millions of citizens, that is the AI transformation the government should pursue. AI Detects Trade and Foreign Exchange Crimes and Tax Evasion AI's role extends beyond reducing work hours. It is also utilized to detect increasingly sophisticated crimes. At Seoul Customs, an AI-based trade and foreign exchange crime tracking system has been developed. In Incheon Customs, a model was created to identify reselling and tax evasion by individuals who import goods as if for personal use and then sell them domestically, using AI address recognition. In the past, customs officials heavily relied on experience and intuition. However, there are limits to how much data and transactions a person can analyze individually. AI can quickly analyze vast amounts of data and identify anomalies and patterns that are difficult for humans to detect. By combining the experience of customs officials with AI's data analysis capabilities, a new border management system is being established. Why the Customs Service Focuses on '50 AI Analysts' What is most important in the AI transformation? Many people talk about technology, saying that GPUs, data centers, and large language models are necessary. While this is not incorrect, the real change in an organization ultimately comes from people. The Customs Service has recognized this. Since 2017, it has been training talents with expertise in customs operations and AI and big data analysis. In 2026, it selected 50 AI analysts from customs offices nationwide. These individuals are not just AI experts. They are hybrid talents who understand customs administration and can utilize AI. This has significant implications for organizational innovation. In the AI era, it is not necessary to make every official an AI developer. Instead, it is essential to cultivate key personnel who understand AI within each organization and solve field problems centered around them. If 50 AI analysts become 100 or 500, the way the Customs Service operates as a large government organization could change. Innovation from the Bottom Up, Not Top Down Another noteworthy aspect of the Customs Service's AX policy is the direction of innovation. Traditional government innovation is mostly top-down, where policies are created at the headquarters and directed to local organizations. However, the Customs Service's AX Challenge is different. It identifies problems in the field, creates solutions using AI, discovers best practices, and, once verified, spreads them throughout the organization. This is 'AI innovation rising from the bottom up.' The advantages of this approach are clear. By solving problems that field officials know best, the likelihood of practical application in actual work increases. Additionally, the experience of knowing that one's ideas can change the organization encourages voluntary AI utilization among officials. The Customs Service plans to continue discovering and sharing best practices with the public following the first half of the 2026 AX Challenge. The Role of the Customs Service Becomes More Important in the AI Era The global economy is rapidly digitalizing. E-commerce and overseas direct purchases are surging, and global supply chains are becoming increasingly complex. The methods of smuggling drugs and illegal goods are also becoming more sophisticated. The era of managing borders solely with human power is coming to an end. There is a need to analyze countless items, transactions, companies, and movements in real-time. This is why AI is necessary. The Customs Service possesses far more data than the public realizes. Export and import data, company information, logistics data, traveler information, and other vast amounts of data are accumulated during the customs administration process. When AI and data are combined, the Customs Service can evolve from merely being an agency that collects taxes and enforces illegal goods to an 'AI economic security agency' that predicts changes in global supply chains, supports corporate exports, and detects economic security risks in advance. Can Lee Jong-wook's Experiment Change the South Korean Government? The South Korean government employs countless officials who perform numerous repetitive tasks daily. They write reports, analyze complaints, search for data, and review various documents. How many of these tasks can be solved with AI? The Customs Service's experiment raises an important question. While it is necessary for the government to build a massive AI system, is it not more crucial for each official to utilize AI in their work? Recently, the Customs Service was awarded the 'Presidential Award for Contributions to AI Government Development' for recognizing the achievements of its AX promotion, which combines short-term tasks with long-term strategies. Lee Jong-wook's AI policy focuses on changes in the field rather than flashy slogans. It reduces tasks that took five minutes to five seconds, uncovers traces of crimes that humans might miss, and applies the ideas of field officials to actual administration. The national AI transformation does not only begin in grand places. It starts with solving small problems in the field using AI. This is why the Customs Service's experiment, led by Lee Jong-wook, is gaining attention. The South Korean government's AI transformation may find its answers, as Lee Jong-wook emphasizes, in the field closest to the citizens.* This article has been translated by AI. 2026-07-09 15:32:00
  • Korean Supreme Court Confirms Sentences for Unification Church Officials in Bribery Case
    Korean Supreme Court Confirms Sentences for Unification Church Officials in Bribery Case Jeon Sung-bae and Yoon Young-ho, key figures in the bribery allegations involving Kim Geon-hee, have had their prison sentences confirmed by the Supreme Court.The Supreme Court's third division, led by Justice Roh Kyung-pil, upheld a five-year prison sentence and a fine of 180.79 million won for Jeon, who was convicted of solicitation and bribery under the Act on the Aggravated Punishment of Specific Crimes. The court also maintained the lower court's ruling that found him not guilty of violating the Political Fund Act.Jeon was accused of receiving over 80 million won in gifts, including Chanel bags and a Graff diamond necklace, from Yoon between April and July 2022, in exchange for assistance with Unification Church issues. The special investigation team concluded that the church sought Kim's help regarding projects such as the Cambodian Mekong River Official Development Assistance (ODA) and the establishment of a UN office in Korea.He was also charged with receiving 30 million won from Yoon in exchange for a position as an advisor to the Unification Group, as well as over 200 million won in gifts related to tax investigations and business solicitations.The first trial sentenced Jeon to six years in prison, but the second trial reduced the sentence to five years, considering his partial admission of guilt and cooperation in providing evidence. The Supreme Court found no legal misinterpretation in the lower court's judgment regarding solicitation and intent.However, a charge of receiving 100 million won from Park Chang-wook, a Gyeongbuk provincial council member, in exchange for a nomination request ahead of the 2022 local elections was dismissed, as the court ruled that Jeon could not be considered a 'politically active person' under the Political Fund Act.Meanwhile, the Supreme Court also confirmed a one-and-a-half-year prison sentence for Yoon, who was charged with violating the Political Fund Act, the Anti-Graft Act, and embezzlement.Yoon was accused of delivering two Chanel bags, a Graff diamond necklace, and other gifts to Kim through Jeon while soliciting assistance with Unification Church matters. He was also charged with providing 100 million won in illegal political funds to Kwon Seong-dong in January 2022.While some embezzlement charges against Yoon were dismissed in the first trial, the second trial overturned that decision, ruling that using church funds to provide gifts to the spouse of the president for solicitation purposes constituted embezzlement. The Supreme Court upheld this ruling.Charges related to Yoon's alleged destruction of evidence regarding Han Hak-ja, the Unification Church leader, were dismissed as they were not subject to prosecution under the Special Prosecutor Act.With the Supreme Court recognizing the bribery and solicitation charges against the Unification Church officials, attention is now focused on the ongoing appeal involving Kim Geon-hee and Kwon Seong-dong.The case against Kim is currently being reviewed by the Supreme Court's second division, where she was sentenced to four years in prison, fined 50 million won, and ordered to forfeit 20.94 million won in the second trial, prompting her immediate appeal.Kwon is also appealing a two-year prison sentence for receiving 100 million won in illegal political funds from Yoon. The confirmation of Jeon and Yoon's convictions raises questions about whether the lower court's decisions will be upheld in their cases.* This article has been translated by AI. 2026-07-09 15:32:00
  • Chinas Producer Prices Surge to Four-Year High Driven by AI Investment
    China's Producer Prices Surge to Four-Year High Driven by AI Investment China's producer price index (PPI) rose 4.1% in June, marking the largest increase in four years. Despite a decline in international oil prices, increased investment in artificial intelligence (AI) has driven demand in advanced manufacturing, contributing to the rise in producer prices.According to the National Bureau of Statistics of China, the PPI for June was up 4.1% compared to the same month last year. This figure also exceeded last month's 3.9% increase, which was the highest in nearly four years, aligning with expectations from the Wall Street Journal.The continued rise in China's PPI for four consecutive months indicates a significant easing of the downward pressure on producer prices that had persisted for 41 months since October 2022.However, the PPI fell 0.3% from the previous month. The decline in international oil prices led to a 16% drop in crude oil extraction prices and a 3.1% decrease in refined petroleum product prices, both of which saw an expanded decline compared to the previous month.Despite the drop in oil prices, increased investment in AI data centers and power infrastructure has boosted demand for electrical equipment and machinery, leading to price increases in advanced manufacturing.Dong Lijuan, a senior statistician at the National Bureau of Statistics, stated, "As the trend of industrial upgrading continues, the application of AI and the use of new materials are expanding, and the push for green transition has led to price increases in some industries." Specifically, prices for advanced manufacturing items such as VR equipment (up 8.4%), wearable smart devices (up 3.4%), industrial computers and systems (up 3.3%), and industrial robots (up 0.5%) all rose.Shu Tianchen, a senior economist at the Economist Intelligence Unit, told CNBC, "With international oil prices generally declining, the potential for further increases in the PPI is limited. The high year-on-year growth rate reflects the low base effect from last year." He added that due to ongoing domestic weakness, "companies are unable to fully pass on cost increases to their clients." In fact, the consumer price index (CPI) for June rose 1.0% year-on-year, slowing from a 1.2% increase in May. The Wall Street Journal had predicted a 1.2% rise, similar to the previous month. Month-on-month, the CPI also fell 0.3%, a larger decline than the 0.1% drop in May. This slowdown was influenced by falling international oil and precious metal prices, as well as stable food prices.Due to a prolonged slump in the real estate market, consumer sentiment has weakened, leading to monthly CPI figures remaining in the 0% range or negative growth throughout last year. However, this year, rising energy prices and strong service and non-food prices have resulted in CPI growth rates in the 1% range.The widening gap between producer and consumer prices indicates that the recovery of the Chinese economy is heavily skewed towards supply. While AI and advanced manufacturing investments are driving up producer prices, sluggish domestic recovery means companies are unable to adequately reflect cost increases in product prices. If this trend continues, concerns arise over potential declines in manufacturing profitability.Although domestic recovery is slow, the economy is being supported by exports and advanced manufacturing, leading to expectations that the Chinese government will not introduce large-scale stimulus measures in the near term. The Chinese leadership is set to evaluate the economic performance for the first half of the year and outline economic policy directions for the second half at a meeting of the Central Political Bureau of the Communist Party of China later this month.Meanwhile, the International Monetary Fund (IMF) raised its forecast for China's economic growth from 4.4% to 4.6% on July 8, citing that "advanced technology manufacturing, export performance, and public infrastructure investment are driving economic growth." This adjustment suggests a higher likelihood of achieving the Chinese government's growth target of 4.5% to 5% for the year.* This article has been translated by AI. 2026-07-09 15:28:00
  • Speaker Cho Urges Parties to Normalize National Assembly Before Constitution Day
    Speaker Cho Urges Parties to Normalize National Assembly Before Constitution Day On July 9, Speaker of the National Assembly Cho Jeong-sik urged both ruling and opposition parties to finalize the formation of committees and agree on the agenda for the July session before Constitution Day on July 17.During a meeting with floor leaders and deputy floor leaders from both parties at the Speaker's office, Cho expressed concern that the National Assembly was failing to meet the public's expectations. After the meeting, Jang Hyeon-joo, the spokesperson for the Speaker's office, reported that Cho emphasized the need to complete the committee formation and reach an agreement on the July session agenda before the upcoming holiday.Additionally, Cho highlighted the urgency of processing various pending bills and livelihood-related legislation that were not addressed during the first half of the National Assembly. However, he did not request a commitment to hold a plenary session by the newly proposed deadline or ask the ruling party to refrain from implementing 'half-hearted' standing committees.Meanwhile, the Democratic Party elected chairpersons for 11 standing committees, including the Legislation and Judiciary Committee, during a plenary session on June 30 and is now gradually activating these committees. In response, the People Power Party has boycotted the committee schedules.* This article has been translated by AI. 2026-07-09 15:28:00
  • Small Business Agency Establishes Rapid Response System for Traditional Market Fire Prevention
    Small Business Agency Establishes Rapid Response System for Traditional Market Fire Prevention The Small Business Market Promotion Agency is establishing a collaborative system to quickly respond to fire prevention in traditional markets.On July 8, the agency signed a memorandum of understanding with the National Fire Agency to create and operate the 'Intelligent Dispatch System for Traditional Markets' aimed at fire prevention and rapid initial response, the agency announced on July 9.The 'Intelligent Dispatch System' involves creating an electronic map of spatial information, including roads and stores within traditional markets, and linking it to the 119 dispatch route guidance system. This allows fire trucks to be guided along the optimal route to the fire-affected store, ensuring a critical response time.Traditional markets often face challenges during emergencies due to multiple entry points, narrow passageways, and irregular store layouts, making it difficult for vehicles to access the scene quickly. Additionally, when information about the fire-affected store is unavailable, the guidance is limited to public parking lots or adjacent roads, restricting on-site response.Last June, the agency collaborated with the Jeonbuk Fire Department to introduce this system at Jeonju South Market, marking the first implementation of such a system nationwide. As a result, the time taken for on-site responses was significantly reduced, demonstrating improved initial fire response capabilities.With this agreement, both agencies plan to expand the system, building on the successes observed at Jeonju South Market to other traditional markets across the country.The agency will also continue various collaborative efforts, including joint campaigns for fire prevention in traditional markets, safety education and promotion, real-time information sharing during disasters, and establishing a joint inspection system between local fire departments and the agency's regional centers.Earlier, in May, the agency received the 'Contribution Award' at the 53rd anniversary ceremony of the Korea Fire Insurance Association for its efforts in conducting fire safety training for 'Traditional Market Safety Guardians' to enhance rapid on-site response capabilities during emergencies. The agency has also encouraged voluntary fire safety management activities through a '10-point fire safety self-activity' program involving merchants.In Tae-yeon, the agency's chairman, stated, "Given the structural characteristics of traditional markets, where stores are densely packed, fire prevention and initial suppression are of utmost importance. We will do our best to build a tighter safety net through close cooperation with the National Fire Agency, ensuring that merchants and the public can visit traditional markets with peace of mind."* This article has been translated by AI. 2026-07-09 15:24:00
  • Ruling Party Decides to Maintain Preferred Voting System Amid Controversy
    Ruling Party Decides to Maintain Preferred Voting System Amid Controversy The Democratic Party of Korea is facing controversy over fairness ahead of its national convention scheduled for August 17. Tensions have escalated between factions supporting Lee Jae-myung and Jung Cheong-rae regarding the primary schedule and the implementation of the preferred voting system.Lee Yeon-hee, a member of the party's convention preparation committee, spoke to reporters after the fourth meeting on July 9, stating, "The preferred voting system was decided by the committee and must be approved by the Supreme Council and the party's decision-making body. Currently, it is pending with the Supreme Council." She added, "There is a majority opinion within the committee that the preferred voting system does not violate party rules."Previously, Rep. Cho Seung-rae, who served as secretary-general during Jung Cheong-rae's leadership, expressed that the preferred voting system is against party regulations. Members aligned with Jung also share this view.With the committee's decision to effectively maintain the preferred voting system following the primary schedule, the controversy over fairness is expected to continue. The committee had decided to introduce the preferred voting system during its third meeting on July 7, but faced pushback from Jung's faction, leading to a re-evaluation.The preferred voting system allows voters to list their top three preferred candidates on a single ballot. If a candidate receives a majority of first-choice votes in the first round, they are declared the winner. If no candidate achieves a majority, votes are counted for subsequent choices. Some analysts suggest this method may favor the Lee faction.Additionally, the Democratic Party revealed the primary schedule during its first committee meeting on June 30, starting in the Chungcheong region, which is Jung Cheong-rae's hometown, and concluding in Daejeon, where the convention will be held, after passing through Ulsan, Busan, Gyeongnam, Jeju, Incheon, Gangwon, Daegu, Gyeongbuk, Jeonbuk, Jeonnam, Gwangju, Gyeonggi, and Seoul.This has drawn criticism from the Lee faction, who argue that starting in Jung's hometown is problematic, especially since the crucial Honam primary is scheduled later in the process.In response, Lee Yeon-hee stated after the second meeting on July 2, "This is a matter that has already been decided according to precedent and based on the majority of committee members' choices," affirming that the primary schedule will proceed as planned.Meanwhile, ahead of the convention, former Prime Minister Kim Min-seok, Rep. Song Young-gil, Rep. Ko Min-jeong, and former Gangjin County Council Chair Kim Bo-mi have declared their candidacies. Speculation is also growing regarding Jung Cheong-rae's imminent announcement to run. Rep. Kim Yong-min, who was previously mentioned as a potential candidate, has expressed his intention not to run, citing his commitment to judicial reform. 2026-07-09 15:24:00
  • Supreme Court Confirms 7-Year Sentence for Yoon Suk Yeol in Obstruction Case
    Supreme Court Confirms 7-Year Sentence for Yoon Suk Yeol in Obstruction Case Yoon Suk Yeol, the former president, has received a confirmed prison sentence of seven years for obstructing the execution of an arrest warrant by the Anti-Corruption and Civil Rights Commission (ACRC). This ruling marks the first Supreme Court decision related to Yoon since the declaration of martial law 583 days ago.On July 9, the Supreme Court's third division, led by Justice Lee Suk-yeon, upheld the lower court's sentence of seven years for charges including obstruction of special public duties and abuse of power.The Supreme Court stated, "The abuse of presidential authority constitutes a high-ranking public official crime, thus the ACRC has investigative authority." It affirmed the legality of the ACRC's investigation, noting, "There are no errors in the lower court's judgment regarding logic, experience, or misinterpretation of the law." However, Yoon did not appear in court as attendance was not mandatory for the ruling.Yoon was indicted last year for using presidential security personnel to obstruct the ACRC's execution of an arrest warrant at his residence in Hannam-dong after declaring martial law on December 3, 2024. He faces additional charges for infringing on the rights of nine cabinet members by convening only select officials for a cabinet meeting, creating a false declaration of martial law, and directing the dissemination of misleading press guidance to foreign media.The special prosecutor's team sought a ten-year sentence in both the first and second trials. The first trial acknowledged significant portions of the charges but sentenced Yoon to five years, while the second trial increased the sentence to seven years.Both the special prosecutor's office and Yoon's legal team appealed the lower court's decision, but the Supreme Court dismissed all appeals on this day.Following the confirmation of the seven-year sentence, the ACRC and Yoon's legal team issued contrasting statements.The ACRC remarked, "Despite various legal controversies surrounding the ACRC's investigative authority and procedures, the court has consistently ruled on these issues from the warrant issuance stage through the first and second trials to the Supreme Court, concluding the relevant matters." They view the ruling as a final judicial determination of their investigative procedures and authority.In contrast, Yoon's legal team expressed deep regret over the Supreme Court's handling of such a significant case without sufficient deliberation, emphasizing the constitutional principles of rule of law and warrant authority. They cited Article 84 of the Constitution, questioning whether 'compulsory investigation during the president's term' is permissible, a critical constitutional issue for the head of state. They criticized lower courts for avoiding a clear legal judgment on this matter and noted that the Supreme Court ignored this serious legal premise in dismissing the appeal.The legal team plans to challenge the constitutionality of the ruling through constitutional court procedures, asserting their commitment to conduct all processes diligently and responsibly within the bounds of law and the Constitution.* This article has been translated by AI. 2026-07-09 15:20:00
  • iM Financial Partners with Financial Supervisory Service to Train Young Talent
    iM Financial Partners with Financial Supervisory Service to Train Young Talent iM Financial Group announced the launch of the "4th Youth Talent Development Project - iM:POSSIBLE Challenger" competition on July 9 at the second headquarters of iM Bank.Sponsored by the Financial Supervisory Service, this competition is part of efforts to promote inclusive finance and ESG management. It began in 2022 and is now in its fourth year.The launch event was attended by key figures including Hwang Byeong-woo, Chairman of iM Financial, Kang Jeong-hoon, President of iM Bank, Lee Chan-jin, Head of the Financial Supervisory Service, and Yang Geum-hee, Vice Governor of Gyeongsangbuk-do, who encouraged the young challengers.The competition, aimed at university students and unemployed youth across the country, attracted over 200 teams and more than 370 participants. Teams will utilize artificial intelligence (AI) agents to develop functional financial services based on two themes: making finance more convenient through digital technology and creating sustainable finance for all through eco-friendliness, coexistence, and inclusivity.After specialized training and mentoring, the final award-winning teams will be selected during a two-day hackathon on September 1. The winning teams will receive cash prizes of 10 million won for the grand prize, 5 million won for the excellence award, 3 million won for the merit award, and 3 million won for encouragement awards, along with opportunities for overseas training.All awardees will receive preferential treatment when applying for positions at iM Financial Group affiliates. This year, a new "Special Award for Financial Consumer Protection" will also be presented to teams demonstrating outstanding consumer protection measures.Through this competition, iM Financial aims not only to contribute to society but also to secure future digital finance talent.* This article has been translated by AI. 2026-07-09 15:20:00
  • Minister Song Mi-ryeong Promotes K-Food in Mongolia, Emphasizing Health and Convenience
    Minister Song Mi-ryeong Promotes K-Food in Mongolia, Emphasizing Health and Convenience Minister of Agriculture, Food and Rural Affairs Song Mi-ryeong stated on July 9 that "Mongolia is a market with significant growth potential," adding that "K-Food can meet the health and convenience preferences of Mongolian consumers."According to the Ministry of Agriculture, Food and Rural Affairs, Minister Song hosted the 'K-Fresh' event in Ulaanbaatar, Mongolia, from July 8 for two days, engaging local consumers. The event included a tasting session for 'K-Convenience Store Meals' made with domestic ingredients, aimed at expanding K-Food exports.Mongolia has emerged as a promising market, with K-Food exports more than doubling over the past five years. In the first half of this year, exports increased by over 14% compared to the same period last year. While processed foods like ramen and snacks have traditionally been top export items, there is a recent trend toward diversifying into fresh produce such as strawberries and grapes, as well as meat products.The K-Fresh event took place on July 8, just before Mongolia's largest holiday, Naadam. Considering the high meat consumption in Mongolia, fresh agricultural and livestock products such as Korean beef, pork, chicken, and various vegetables were provided. For dessert, a watermelon punch was served.A local attendee, Arilma, remarked, "The combination of pork belly and ssamjang was very impressive, and I would like to purchase Korean meat and fresh produce more often as a result of today's event."On July 9, a tasting session was held at a Korean convenience store in Ulaanbaatar to celebrate the launch of 'K-Convenience Store Meals' using domestic rice and pork. This launch was a collaboration between the Korean Pork Promotion Council and a major Korean retail company operating in Mongolia, marking a new overseas distribution model for K-ingredients.Minister Song also visited the 'K-Fresh Zone,' a specialty store for Korean fresh agricultural and livestock products, to inspect the distribution of premium items such as fruits, vegetables, and meats. This store sells fresh products flown in from Korea weekly.Minister Song emphasized, "We will spare no effort in supporting the expansion of K-Food exports to Mongolia through the development of strategic items, certification, customs, logistics, distribution network development, and online and offline marketing."* This article has been translated by AI. 2026-07-09 15:20:00
  • Construction Companies Face Differentiated Funding Challenges Despite Stable Credit Ratings
    Construction Companies Face Differentiated Funding Challenges Despite Stable Credit Ratings The funding conditions for large construction companies are changing. While they have avoided a chain reaction of credit rating downgrades amid a deteriorating market, challenges such as delays in collecting construction receivables, the burden of refinancing project financing (PF) liabilities, and risks from unsold properties in local markets persist.According to credit rating agencies and investment banks on July 9, Daewoo Engineering & Construction is among the top 10 construction firms that have seen their credit ratings or outlooks downgraded. A representative from Daewoo stated, "The long-term credit rating outlook has been lowered due to previous performance deterioration, but if performance improves, the credit rating will follow suit."POSCO E&C is also identified as a company facing downward pressure on its credit rating. Although it maintains an A+ rating, its outlook is negative. Factors such as loss recognition, increased borrowing, and safety risk incidents are cited as monitoring points for the second half of the year.In contrast, DL E&C retained its AA- (stable) rating in the recent regular evaluation by NICE Credit Rating, attributed to its diversified business portfolio, improved cost rates in the housing sector, cash generation capacity, and financial stability.While credit rating downgrades have been avoided, attention must be paid to construction companies' cash flow and financial conditions in the second half of the year. Timely collection of construction payments, fluctuations in PF guarantee burdens, and the maturity of corporate bonds and short-term loans will serve as criteria for assessing creditworthiness.Korea Ratings recently noted in its regular evaluation of the construction industry that while cost rates have improved, financial burdens persist. Additional losses related to construction receivables, the improvement of cost rates for new construction projects, and the control of borrowing burdens remain key variables. Korea Credit Rating also highlighted the sluggishness in local housing and non-residential sales, sales risks, and the level of financial burden control as major factors to monitor in its outlook for the construction industry in the second half of the year.Examining the funding status of individual construction companies, Hyundai Engineering & Construction, based on its strong credit rating, received orders totaling 910 billion won in a bond demand forecast earlier this year, significantly exceeding the 170 billion won target, and is pursuing an increase in issuance up to 340 billion won. These bonds are issued in the form of green bonds.Recently, it also issued 500 billion won in private convertible bonds (CB), structured with a zero percent coupon and maturity interest rate. The funds raised will be used for operating capital in new energy projects, including offshore wind, solar power, small modular reactors (SMR), and large nuclear power plants.Lotte Engineering & Construction is leveraging asset-backed securities (ABS) based on asset credit rather than company credit to enhance cash flow. Following a similar issuance in May, it issued 300 billion won in ABS this month, backed by receivables from housing projects nearing completion and construction projects from group affiliates. This ABS received a AAA rating, allowing the company to secure funds at a lower cost than its own credit rating.The funding methods differ between companies that can directly issue corporate bonds and those that need to structure construction receivables to secure liquidity. The maintenance of credit ratings does not imply that the funding environment is the same for all construction companies.An industry insider remarked, "Just because construction companies' credit ratings have not significantly dropped does not mean the funding environment has improved. In the second half of the year, the differences in financial costs among construction companies may widen based on their responses to PF maturities, collection of construction receivables, and improvements in cash flow."* This article has been translated by AI. 2026-07-09 15:20:00