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  • Namyang Dairy to Include Rain Safety Tips on 1.4 Million Milk Cartons
    Namyang Dairy to Include Rain Safety Tips on 1.4 Million Milk Cartons Namyang Dairy announced on July 7 that it will conduct the "We Lend You Milk Cartons" campaign in collaboration with the Ministry of the Interior and Safety until August. Starting this month, 1.4 million cartons of its 900ml "Premium Morning Milk" will be released sequentially, featuring safety guidelines for heavy rain preparedness.This initiative is part of the Ministry's efforts to prevent natural disasters during the summer. By utilizing the sides of milk cartons, the campaign aims to inform consumers about essential safety measures, such as cleaning rainwater drains, regularly checking weather updates, and confirming evacuation sites, thereby promoting a culture of safety during the monsoon season. According to the Korea Meteorological Administration, this year's monsoon began on June 30 in Jeju and the southern regions, and on July 1 in the central region.Namyang Dairy has been running the "We Lend You Milk Cartons" campaign since 2019, using product packaging as a public communication platform. The company has collaborated with various organizations, including the Ministry of the Interior and Safety, the National Police Agency, the Ministry of Health and Welfare, and the Korean Epilepsy Association, to convey messages on crime prevention, deepfake sexual crime prevention, support for young caregivers, and raising awareness about epilepsy.Shin Il-cheol, director of the Natural Disaster Response Division at the Ministry of the Interior and Safety, expressed hope that this campaign will help the public familiarize themselves with safety guidelines for the monsoon season and foster a culture of safety.Jang Jong-jin, head of the brand team at Namyang Dairy, stated, "We will continue to collaborate with public institutions through the 'We Lend You Milk Cartons' campaign to engage in public interest activities that benefit consumers."Meanwhile, Namyang Dairy has adopted the slogan "Healthy Companionship for All Generations" for its corporate social responsibility initiatives, supporting vulnerable groups such as infants, single-parent families, young caregivers, and the elderly. Recently, the company launched a workplace campaign to support pregnant employees in collaboration with the Population Health and Welfare Association, and it has expanded its social contribution activities, including the production of special formula for children with rare diseases and the implementation of notched milk cartons for visually impaired individuals.* This article has been translated by AI. 2026-07-07 12:48:00
  • Kiturami Ranks First in National Customer Satisfaction for Gas Boilers
    Kiturami Ranks First in National Customer Satisfaction for Gas Boilers Kiturami has been recognized for its product and service competitiveness as it announced on July 7 that it ranked first in the gas boiler category of the 2026 National Customer Satisfaction Index (NCSI) survey conducted by the Korea Productivity Center (KPC).The NCSI, developed jointly by the KPC and the University of Michigan in 1998, is a customer satisfaction evaluation metric. It quantifies overall satisfaction based on customer evaluations of expectations and experiences with products and services across 353 companies in 94 industries.Kiturami achieved the highest score in the gas boiler industry with an NCSI overall score of 79 points, receiving top marks from customers in key evaluation categories such as product and service quality, complaint rates, and loyalty.The company enhances customer convenience through its home boiler rental service, 'Ddasum Care,' which systematically manages the entire process from purchase and installation to regular inspections and after-sales service.Additionally, to ensure that online customers can confidently select products, Kiturami operates an 'official online certified sales outlet' system. The 'Kiturami Boiler KakaoTalk Channel,' with 780,000 subscribers, handles about 30% of the total annual call center service requests.Kiturami's home boilers were also ranked first for ten consecutive years in the '2026 Brand Customer Loyalty Awards' announced in April by Brand Key, a leading U.S. brand evaluation agency, in collaboration with the Korea Consumer Forum.A Kiturami representative stated, 'Our achievement of being ranked first in national customer satisfaction is the result of our continuous efforts to improve not only product performance but also the quality of service that customers actually experience.'* This article has been translated by AI. 2026-07-07 12:44:00
  • Korean households stock and fund buying nears $40 bn in Q1, nearly matching foreign sales
    Korean households' stock and fund buying nears $40 bn in Q1, nearly matching foreign sales SEOUL, July 07 (AJP) - South Korean households’ purchases of equity securities and investment fund shares nearly doubled to 61.4 trillion won ($40 billion) from 34 trillion won in the first quarter, the latest data underscoring the stock craze that gripped the country as investors watched the benchmark KOSPI surge in the first half. Foreign investors sold nearly the same amount, offloading a net 62.1 trillion won worth of Korean equities and investment funds, more than seven times the 8.5 trillion won sold in the previous quarter, Bank of Korea data showed Tuesday. The BOK said the domestic sector posted net lending of 84.3 trillion won ($55.1 billion) in the January-March period, up from 51.9 trillion won in the previous quarter. Households and nonprofit institutions serving households remained the largest net-lending sector, with net lending rising to 79.2 trillion won from 67 trillion won. Their financial asset transactions climbed to 96.3 trillion won from 84.3 trillion won, driven by the surge in purchases of equity securities and investment fund shares. The central bank said much of the increase in household deposits came from investor cash parked at securities firms rather than ordinary bank deposits. Deposits at financial institutions rose to 29.4 trillion won from 12.8 trillion won even as bank deposits declined, suggesting households shifted money into brokerage accounts, stocks and funds. Households continued to sell bonds, with net disposals of 7.4 trillion won in the first quarter after selling a net 10.4 trillion won in the previous quarter. Equity securities and investment fund shares accounted for 28.8 percent of household financial assets at the end of March. The overseas sector moved in the opposite direction. Its net borrowing widened to 84.3 trillion won from 51.9 trillion won as nonresidents stepped up sales of Korean equities. Financial asset transactions by the overseas sector swung to a net disposal of 20.9 trillion won from a net acquisition of 46.4 trillion won. Nonresidents sold a net 62.1 trillion won of Korean stocks and investment funds, compared with net sales of 8.5 trillion won in the fourth quarter. Appetite for foreign equities remained strong. Koreans' overseas stock investment totaled 40.3 trillion won, down from 61.5 trillion won in the previous quarter but still large, while overseas direct investment increased to 28.9 trillion won from 18.1 trillion won. The pattern helps explain the unusual combination of a soaring KOSPI and a weak won. Household money moved toward stocks, funds and brokerage accounts, while foreign selling and residents' overseas investment sustained demand for dollars. Nonfinancial corporations also shifted into a larger net lending position. Their net lending rose to 20.8 trillion won from just 100 billion won in the fourth quarter as financial asset transactions increased to 137 trillion won from 58.4 trillion won. Corporate borrowing from financial institutions rose to 32.2 trillion won from 10.6 trillion won. Direct financing, however, swung to a net repayment of 7.9 trillion won from net borrowing of 21.4 trillion won, while corporate bond financing shifted to a net repayment of 11.8 trillion won from net issuance of 15.9 trillion won. The general government's net borrowing widened to 23.3 trillion won from 19 trillion won. Government bond issuance surged to 49.7 trillion won from 3 trillion won, helping explain recent upward pressure on long-term Korean bond yields amid concerns over heavy debt supply. At the end of the first quarter, the domestic nonfinancial sector held financial assets of 14.77 quadrillion won against financial liabilities of 8.335 quadrillion won, leaving net financial assets of 6.435 quadrillion won. The ratio of financial assets to financial liabilities for households and nonprofit institutions rose to 2.60 from 2.54 at the end of the previous quarter. Separately, the BOK said the household debt-to-GDP ratio fell to 85.3 percent in the first quarter as nominal GDP grew 4 percent while household debt increased 0.6 percent. The central bank cautioned, however, that the decline should be assessed together with the continued rise in household debt and the renewed pickup in borrowing seen in the second quarter. 2026-07-07 12:37:59
  • Paiks DABANG Rebrands as It Prepares for International Expansion
    Paik's DABANG Rebrands as It Prepares for International Expansion Dabong Korea's coffee brand Paik's DABANG has revamped its brand identity (BI) and is set to expand into international markets, starting with Japan.On July 7, Paik's DABANG announced the launch of its new BI, which replaces the previous Korean-centric logo with the English brand name 'Paik's DABANG.' The new design emphasizes the English name to help overseas consumers and local partners recognize the brand more intuitively while retaining the term 'DABANG' to reflect its Korean coffee culture identity.The logo features a 'P' design inspired by coffee beans, utilizing a curved font and bright colors to maintain the friendly image of the original Paik's DABANG.Alongside the BI overhaul, Paik's DABANG is also expanding into international markets. The first store will open in Tokyo in August, with plans to add a second location in Japan later this year. The brand is also considering entry into major markets such as China, Taiwan, and the United States.A representative from Paik's DABANG stated, "In preparing for international expansion, we aimed to establish a unified brand image in the global market through the BI revamp. We have been reviewing various options with a professional design firm since last year and finalized the plan by incorporating feedback from employees and franchise owners."The new BI will be gradually implemented across all franchise locations with support from the headquarters, aiming to minimize the cost burden on franchise owners during the sign replacement process. This year marks the 20th anniversary of the brand's launch, and Paik's DABANG will also introduce new menu items and customer engagement events.A spokesperson for Dabong Korea remarked, "This BI revamp is part of our brand refinement for global market entry, and we are preparing to showcase the Paik's DABANG brand in various markets, starting with Japan, followed by China, Taiwan, and the U.S."Currently, Dabong Korea operates over 150 stores across 16 countries worldwide.* This article has been translated by AI. 2026-07-07 12:32:00
  • South Korean Prime Minister: New Cybersecurity Law Aims to Minimize Illegal Activities
    South Korean Prime Minister: New Cybersecurity Law Aims to Minimize Illegal Activities South Korean Prime Minister Han Seung-soo stated on July 7 that the government will ensure freedom of expression for legitimate criticism and diverse opinions while firmly addressing clear false information and illegal activities under the newly implemented Cybersecurity Law. Han made these remarks during a State Council meeting held at the Government Seoul Complex. He noted that online platforms serve as spaces for communication and public discourse, playing a crucial role in the advancement of democracy. However, he acknowledged that as the online realm expands, the negative effects of illegal activities, such as the spread of false and manipulated information, are also increasing. He explained that the purpose of the recent amendment is to minimize these adverse effects. Han urged relevant agencies, including the Ministry of Science and ICT, to ensure the smooth implementation of the amendment and requested that they clearly explain the specific changes to the public with relatable examples. Additionally, he emphasized the need for the government to remain vigilant to minimize damage from heavy rain, stating that the primary goal of disaster response is the safety and lives of citizens. He stressed that no citizen should lose their life due to such disasters and urged relevant departments, including the Ministry of the Interior and Safety and the Ministry of Environment, to work closely with local governments to thoroughly inspect and reinforce areas vulnerable to flooding, such as underground roads, semi-basement homes, and landslide-prone regions. Han also mentioned that reports on the progress and challenges related to the eradication of technology theft from small and medium-sized enterprises (SMEs) will be presented. He noted that addressing technology theft is a critical task he received as the Minister of SMEs and Startups during a State Council meeting with the President. He described technology theft as a serious crime that undermines the innovative spirit of SMEs. According to investigation results, there were 474 cases of technology theft in 2024, with an average loss of 2.3 billion won per case. He explained that the government plans to strengthen penalties for theft and restrictions on public bidding, as well as establish guidelines for assessing damages to ensure that affected companies receive adequate compensation.* This article has been translated by AI. 2026-07-07 12:12:00
  • South Korea to Invest $1.4 Billion in Physical AI Development in Gyeongnam and Jeonbuk
    South Korea to Invest $1.4 Billion in Physical AI Development in Gyeongnam and Jeonbuk The Ministry of Science and ICT will invest 1.4 trillion won (approximately $1.4 billion) over five years to secure leadership in next-generation physical artificial intelligence (AI) technology. The plan includes developing AI models for precise control of manufacturing processes and a platform for autonomous factory operations in Gyeongnam and Jeonbuk, respectively, to establish domestic physical AI technology. The Ministry and the National IT Industry Promotion Agency (NIPA) announced on July 7 that they are soliciting participation in the '2026 Gyeongnam and Jeonbuk AX (AI Transformation) Research and Development Project' until July 28. A total of 1.4131 trillion won will be invested in the project from 2026 to 2030, with 676.3 billion won allocated to Gyeongnam and 736.8 billion won to Jeonbuk. This initiative focuses on securing core physical AI technologies centered around manufacturing sites. Physical AI refers to technology that perceives and makes judgments about the real world, directly controlling robots and equipment. Since AI models developed in laboratories have limitations in real-world industrial applications, the plan includes collecting data directly from manufacturing sites and conducting demonstrations. The Ministry will promote the project with two main pillars: 'ultra-precise control' of manufacturing processes and 'integrated operation' that intelligently connects and operates the entire factory. Utilizing the industrial bases of Gyeongnam and Jeonbuk, specialized research and development and demonstrations will be conducted, linking them into a single physical AI platform. In Gyeongnam, a project will be launched to develop a 'human-AI collaborative physical intelligence action model (LAM) for global demonstration.' The goal is to secure ultra-precise control technology for manufacturing processes. The project will develop physics-informed neural network (PINN) technology that reflects physical laws such as thermodynamics and fluid dynamics in AI models, and will establish high-reliability fusion data and LAM based on actual manufacturing data to demonstrate a collaborative manufacturing model between humans and AI. In Jeonbuk, a project will be conducted to create a 'collaborative intelligence physical AI-based software platform ecosystem.' This includes developing an autonomous intelligent factory platform that integrates factory and logistics systems, as well as promoting standardization of AI autonomous factory operating systems and software. Additionally, a testbed and a joint research cluster involving industry, academia, and research will be established near the Jeonbuk Innovation City to provide a foundation for technology validation. The Ministry plans to link the two projects to implement a single physical AI platform that encompasses precise control of manufacturing processes and factory operations. This aims to reduce reliance on foreign manufacturing solutions and establish an 'intelligent advanced K-AI factory package' that integrates AI models, software, and equipment and robot control technologies, facilitating entry into the global market. Park Tae-wan, Director of the Information and Communication Industry Policy Bureau at the Ministry, stated, "This project marks the first step in concretizing physical AI, one of the three mega-projects promoted by the government. We aim to establish a K-physical AI-based manufacturing innovation model led by AI, from manufacturing processes to factory operations, to foster new export competitiveness." The government announced on June 29 that it would cultivate semiconductors, physical AI, and AI data centers as national strategic industries under the 'Korea's Great Leap 3 Mega Projects.' 2026-07-07 12:08:00
  • Tax Agency Uncovers $731 Million in Real Estate Tax Evasion
    Tax Agency Uncovers $731 Million in Real Estate Tax Evasion Numerous cases of real estate tax evasion have been uncovered, including instances where individuals transferred ownership of high-value apartments to friends or family members to qualify for tax exemptions on capital gains. Some individuals purchased luxury homes using funds received from parents or spouses without paying gift taxes, while others concealed business income to finance high-value apartment purchases.The National Tax Service (NTS) announced on July 7 that it has recovered a total of 31.8 billion won ($23.5 million) in taxes from 104 individuals suspected of real estate tax evasion involving high-value properties. The total amount of tax evasion identified is estimated at 73.1 billion won ($55 million).The NTS began simultaneous investigations on October 1 of last year, targeting individuals who acquired high-value properties in the Han River area, as well as foreign nationals and minors involved in suspicious real estate transactions. The investigations examined not only evasion of capital gains and gift taxes but also the sources of funds used for property acquisitions, including omitted business income and corporate fund misappropriation.A common method identified was the 'fake sale' scheme. Property owners with multiple homes would falsely transfer low-value properties to relatives or friends before selling high-value homes, thereby claiming the one-home capital gains tax exemption.For instance, an individual identified as A, who owned two homes, transferred a low-value apartment to a friend before selling a high-value apartment for approximately 2 billion won ($1.5 million), claiming the one-home tax exemption. However, investigations revealed that A continued to reside in the low-value apartment after the transfer and paid the buyer's acquisition and property taxes while also providing monthly payments. The NTS deemed this a mere formal transfer and denied the tax exemption, recovering 1 billion won ($750,000) in capital gains tax from A and reporting A's mother and the friend who lent their name to prosecutors for tax evasion.In another case, a woman sold a single-family home and transferred her apartment to her husband's friend, falsely reporting the transaction as tax-exempt. Evidence also emerged that the buyer manipulated financial documentation to make it appear as though they had purchased the apartment. The NTS recovered 600 million won ($450,000) in capital gains tax and reported the involved parties to prosecutors.In a separate case, a property owner transferred a multi-family housing building to a sibling before selling an apartment, falsely claiming the capital gains tax exemption. However, there were no records of financial transactions, and it was confirmed that the original owner continued to receive monthly rent after the transfer. The NTS recovered 400 million won ($300,000) in capital gains tax and issued a significant fine.During the investigation into the sources of funds for acquiring high-value apartments, cases of omitted business income and corporate fund misappropriation were also revealed. An individual in their 50s, identified as B, acquired multiple properties, including a planned redevelopment apartment in Gangnam, with funds generated from a slush fund created by underreporting sales at a livestock wholesale business operated by their spouse. The NTS recovered 3.1 billion won ($2.3 million) in corporate and gift taxes.Foreign-related tax evasion cases were also included in the investigation. A so-called 'black-haired foreigner' acquired two high-value homes in Mayongseong for speculative purposes without reporting funds received from a foreign spouse. The NTS recovered 400 million won ($300,000) in gift taxes.There were also cases where individuals received support for high monthly rents from parents without paying gift taxes. An unemployed individual in their 40s lived in a high-value apartment along the Han River, paying over 7 million won ($5,250) in monthly rent while continuing to invest in stocks worth tens of billions of won and incurring high living expenses. Investigations confirmed that this individual received over 2 billion won ($1.5 million) from their parents for rent, stock investments, and living expenses, leading to a recovery of 1.3 billion won ($975,000) in gift taxes.The NTS stated that in cases of tax evasion through fraudulent or other improper means, a 40% penalty for underreporting will be imposed. Six individuals confirmed to have committed tax evasion were reported to prosecutors, and four others received fines totaling 700 million won ($525,000).The NTS has notified local governments to impose fines and criminal penalties on 20 individuals found to have violated the real estate registration law through name trusts and other means.Looking ahead, the NTS plans to continue identifying tax evasion risks throughout the entire process of acquiring, holding, and transferring real estate. In particular, it will focus on verifying low valuations of gifted properties, payment of gift taxes, and low-value transfers among family members, especially in light of the potential increase in gift transactions following the reintroduction of higher tax rates for multiple homeowners.An NTS official stated, “Preventing real estate tax evasion is the starting point for establishing tax justice and restoring stability and trust in the housing market. We will respond firmly to real estate tax evasion under the principle that evasion will always be detected.”* This article has been translated by AI. 2026-07-07 12:08:00
  • Discussion on Bilingual Signage at Gwanghwamun; 200 Citizens to Participate
    Discussion on Bilingual Signage at Gwanghwamun; 200 Citizens to Participate A discussion will be held regarding the addition of a Korean sign alongside the existing Chinese characters at Gwanghwamun in Gyeongbokgung.The Ministry of the Interior and Safety and the Ministry of Culture, Sports and Tourism announced on July 17 that they will host a public forum titled 'Everyone's Discussion' on July 26 in Seoul, inviting citizens to participate in the dialogue about the 'Gwanghwamun Korean Signage.' 'Everyone's Discussion' is a public forum organized by the Ministry of the Interior and Safety to listen to citizens' voices and actively incorporate them into policy amid a complex and evolving policy environment.This forum aims to engage the public in a thorough discussion about the proposal to install a Korean sign alongside the existing Chinese characters, considering the historical and cultural significance of Gwanghwamun and the symbolism of the Korean language.Approximately 200 citizens, along with officials from relevant agencies and experts, will gather to engage in multifaceted discussions. The program will include expert presentations, panel discussions, and small group discussions where citizens can participate directly.The forum will seek to gather unfiltered public opinions on key issues, such as whether Gwanghwamun should be viewed as a national symbolic space that embodies modern values or preserved as a cultural heritage site.The event will take place from 10 a.m. to 6 p.m. on July 26 at Yonsei University's Baekyangnuri. Any South Korean citizen can apply to attend. Interested participants can register easily through the websites of the Ministry of the Interior and Safety and the Ministry of Culture, Sports and Tourism, or via the public online communication platform 'Communication Innovation 24' from July 7 to 14.Minister Yoon Ho-jung stated, 'Everyone's Discussion is a public forum introduced by the citizen-led government to ensure that policies closely related to citizens' lives reflect their vivid experiences and voices. I hope many citizens will take an interest and participate in this first forum to determine the future of the Gwanghwamun signage, a national symbolic space.'Minister Choi Hwi-young remarked, 'Gwanghwamun is both a cultural heritage and a national symbolic space, while the Korean language is a valuable asset that showcases South Korea's cultural pride. This year marks the 100th anniversary of 'Gagya Day,' the origin of Hangul Day, and I hope this forum will be a meaningful opportunity to hear broader public opinions and build consensus.'* This article has been translated by AI. 2026-07-07 12:08:00
  • Household Surplus Reaches 79 Trillion Won in Q1 Amid Stock Investment Shift
    Household Surplus Reaches 79 Trillion Won in Q1 Amid Stock Investment Shift In the first quarter of this year, South Korea's stock market outperformed major countries, leading to a shift of household funds into stock investments. Corporate surplus reached a record high, bolstered by a strong semiconductor market.Households have shown a trend of moving funds from bank deposits to stock investments, a phenomenon referred to as 'money move,' while the household debt-to-GDP ratio has dropped to the 85% range.According to the Bank of Korea's '2026 Q1 Fund Circulation (Preliminary)' statistics released on July 7, the net fund management amount for households (including individual businesses) and non-profit organizations in the first quarter was 79.2 trillion won, up from 67 trillion won in the previous quarter.Net fund management refers to the increase in surplus funds available to economic entities. For households, it is calculated by subtracting borrowed funds from the total amount managed, which includes deposits, insurance, pensions, funds, and stocks.The increase in household net fund management compared to the previous quarter is attributed to rising household income from year-end bonuses and an increase in surplus funds due to a decrease in new apartment supply.Fund management expanded primarily in equity securities and investment funds, with the total amount reaching 61.4 trillion won, a significant increase from 34 trillion won in the previous quarter. Deposits in financial institutions also rose from 12.8 trillion won to 29.4 trillion won.Household borrowing decreased slightly to 17.1 trillion won, down from 17.3 trillion won in the fourth quarter of last year.Non-residents shifted from net acquisition to net disposal of domestic stocks, primarily selling off shares. This is interpreted as profit-taking following the rise in stock prices.The net disposal of domestic issued stocks and investment fund shares by non-residents expanded significantly from -8.5 trillion won in the previous quarter to -62.1 trillion won.Meanwhile, the scale of domestic residents' acquisition of foreign stocks decreased from 61.5 trillion won to 40.3 trillion won.The financial asset to financial liability ratio for households and non-profit organizations rose to 2.60, up from 2.54 at the end of the previous quarter. Net financial assets increased by 183.5 trillion won to 3,950.2 trillion won compared to the end of the previous quarter.The net fund management amount for non-financial corporations reached 20.8 trillion won, a significant increase from 1 billion won in the previous quarter, marking the highest level since the statistics began in 2009.Kim Yong-hyun, head of the Bank of Korea's Fund Circulation Team, analyzed that non-financial corporations, as the main agents of production, typically face a shortage of funds for physical investments compared to financial investments. However, this quarter, a surge in operating profits due to a strong semiconductor market led to a significant increase in surplus funds for non-financial corporations.The household debt-to-GDP ratio fell by 2.9 percentage points to 85.3% compared to the end of the previous quarter. Kim noted that household debt increased by about 0.6% this quarter due to government regulations on household loans and stricter management by banks. He explained that the nominal GDP growth rate for the first quarter was about 4% compared to the previous quarter, contributing to the significant drop in the household debt ratio.He added, "The government has announced plans to manage the household debt ratio below 80%. If household debt is significantly controlled and nominal GDP rises by over 10% this year, the household debt ratio could decrease considerably."The net fund procurement amount from the external sector reached 84.3 trillion won, influenced by an increase in the current account surplus. This is the highest level since the statistics began in 2009, surpassing the previous record of 53.3 trillion won in the third quarter of last year.Kim stated, "The net procurement amount from the external sector was also influenced by the increase in international balance due to rising exports, significantly driven by semiconductor exports." 2026-07-07 12:08:00
  • Financial Supervisory Service Intensifies Efforts to Protect Consumers from Financial Risks
    Financial Supervisory Service Intensifies Efforts to Protect Consumers from Financial Risks The Financial Supervisory Service (FSS) is enhancing oversight in areas of growing concern for financial consumers, including excessive debt investment, insurance payout leaks, and information breaches due to the spread of artificial intelligence (AI).On July 6, the FSS held its third Consumer Risk Response Council, where it discussed key risk factors affecting financial consumer protection and strategies to address them.Amid increasing volatility in the stock market, the FSS noted a rapid rise in stock-related loans, such as margin loans and stock loans, which heightens the risk of consumer losses from excessive leverage. The balance of margin loans surged from 27.3 trillion won at the end of last year to 37.3 trillion won by the end of last month, with significant increases in forced sales of margin trades.In response, financial institutions will be required to clearly explain the structure and risks of leveraged investments to consumers and to prevent practices that effectively encourage excessive debt investment. The FSS will also continuously monitor the aggressive marketing strategies of asset management companies.In the insurance sector, the FSS identified the actions of third parties, such as medical institutions, that could lead to increased insurance premiums due to payout issues. To manage the 'third-party risk' associated with excessive medical treatments or cost inflation, the FSS plans to implement comprehensive guidelines for managing third-party risks related to insurance payouts, covering all stages from product design to sales and post-payment management.Additionally, the FSS is focusing on the so-called 'payback' practices, where some nursing hospitals refund part of the out-of-pocket expenses to cancer patients. If evidence of insurance fraud is found during investigations, the FSS plans to refer cases for prosecution and strengthen cooperation with relevant agencies, including the Ministry of Health and Welfare and the National Health Insurance Service.The FSS also expressed concerns about potential consumer harm from information theft and hacking incidents due to the expanded use of AI. It pointed out that the concentration of large amounts of personal credit information in big data platforms adopted by financial institutions for AI research and customer analysis could lead to misuse if control mechanisms fail.Furthermore, the FSS is pursuing reforms to protect consumers from illegal financial practices. It will conduct joint inspections of registered lending companies that charge high interest rates by illegally using vehicles as collateral and will strengthen internal controls regarding the trading of personal data by insurance agencies and unfair replacement sales.Lee Chan-jin, the head of the FSS, stated, "In a highly volatile market, financial institutions must fulfill their responsibilities as risk managers for customer assets. We will swiftly respond to consumer harm factors, including third-party risks inherent in insurance products, illegal financial practices, and AI-based financial incidents, in cooperation with relevant agencies."* This article has been translated by AI. 2026-07-07 12:04:00