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Musinsa Beauty Opens First Standalone Store in Hongdae, Differentiating with Pharmacy Beauty Musinsa has opened its first standalone beauty store, introducing 'Pharmacy Beauty' to enhance its competitive edge by combining professional pharmacist consultations with beauty shopping.On September 10, Musinsa held a media tour in Hongdae, Mapo District, Seoul, unveiling the 'Musinsa Beauty Hongdae' store, which will officially open on September 11. This marks the first independent beauty store following the beauty zone at the 'Musinsa Megastore Seongsu' opened in April.The store is designed not just as a shopping space but as a destination for customers to discover new brands and products. Kim Yeon-jin, head of the Musinsa Beauty offline team, stated, "Our overarching strategy is 'Next Beauty,' with 'Discovery Channel' as the key concept."The Musinsa Beauty Hongdae store features an eye-catching pink exterior and spans a total area of 1,262 square meters (approximately 400 pyeong), with over 870 brands and more than 12,000 products available.The first floor is dedicated to a variety of makeup and fragrance brands, including a 'Brand Highlighting Zone' that showcases brands that are hard to find offline. This area features brands that have gained attention in the global market but are not easily accessible in South Korea.The second floor focuses on skincare, with products categorized into hair, body, men's, and dental care. This layout allows customers to compare and choose from various brands and products based on their skin concerns and preferences.The store's layout reflects Musinsa's unique differentiation strategy, with wider aisles to enhance customer flow and a branding space that allows for an immersive brand experience. About 70% of the approximately 600 beauty brands in the store are indie brands.Another distinguishing feature is the Pharmacy Beauty concept. The Beauty Onnuri Pharmacy on the basement level is a new pharmacy brand tailored to meet beauty and healthcare demands. Unlike typical beauty stores that sell dermatological cosmetics, this pharmacy occupies an entire floor, integrating beauty retail with pharmacy services.The Beauty Onnuri Pharmacy offers around 270 brands and over 2,000 products, staffed by multiple pharmacists who provide prescription filling and medication consultations. It maintains the core functions of a pharmacy while enhancing its beauty category and professional consultation services.Kim Yeon-jin explained, "The Beauty Onnuri Pharmacy is characterized by increasing the proportion of cosmetics to about 90%, aiming to create a space where customers can address all their beauty-related concerns in one visit through collaboration with the pharmacy."However, operations are strictly separated. The Beauty Onnuri Pharmacy will operate based on product curation and consultations by pharmacists, creating synergy between the store and pharmacy within the same space.Meanwhile, Musinsa plans to open its second standalone beauty store in Seongsu in November and will introduce a combined store with Musinsa Kicks in Jeju.* This article has been translated by AI. 2026-09-10 15:28:10 -
Will Bank Deposits Be Converted to CBDC? Debunking Social Media Rumors “Starting in September, money deposited in banks will automatically convert to CBDC.” “By signing up for the Youth Future Savings, you agree to the CBDC conversion.” Recently, such claims have been circulating on social media and online communities. Some have even suggested that individuals should move their salary and living expense accounts elsewhere or disconnect their accounts from open banking and mobile payment services. To clarify, there will be no automatic conversion of money deposited in banks to central bank digital currency (CBDC) starting in September. Additionally, the process of signing up for financial products like the Youth Future Savings does not involve unknowingly participating in a CBDC pilot project through terms and conditions or consent to provide personal information. Concerns surrounding CBDC have persisted since the Bank of Korea began real transaction testing. According to a petition submitted to the National Assembly on September 10, there have been eight petitions opposing the introduction of CBDC since the first real transaction test of Project Han River began in April of last year, accumulating approximately 420,000 signatures. Even during the announcement of Phase 2 of Project Han River in July and August, petitions calling for a cautious approach due to potential personal information exposure and insufficient public consultation continued to emerge. The controversy stems from the digital currency real transaction test, Project Han River, being pursued by the Bank of Korea and the banking sector. In Phase 1, the Bank of Korea issued an “institutional CBDC” for transactions between financial institutions, and banks tested whether they could issue “deposit tokens” based on this to facilitate actual payments and transactions. Phase 2 will expand the scope of the experiment. Nine banks, including KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK, Busan, Gyeongnam, and iM Bank, will participate to test not only payments but also peer-to-peer transfers and automatic deposit and withdrawal conversions. One expression that has fueled misunderstandings is “automatic deposit and withdrawal conversion.” It may sound like banks will arbitrarily tokenize customers' account funds, but the actual function is different. When a customer participating in the pilot project makes a payment or transfer using deposit tokens, if the balance in their token wallet is insufficient, only the necessary amount will be drawn from their linked deposit account and converted into deposit tokens. This does not mean that the entire balance of a salary or savings account will be automatically tokenized. The tokens used by consumers are not CBDC issued directly by the Bank of Korea but deposit tokens issued by the respective banks based on customer deposits. The claim that cash in an account will suddenly change to CBDC is fundamentally different. Claims related to the Youth Future Savings are also inaccurate. Signing up for policy financial products and participating in Project Han River are separate processes. Simply enrolling in the Youth Future Savings or receiving government support does not mean that the deposits in that account will be converted to CBDC or deposit tokens. Consent for providing personal and financial information during the financial product enrollment process is distinct from consent to participate in the digital currency pilot project. There will be no immediate changes to existing financial services. Customers not participating in Project Han River can continue to use their salary accounts, living expense accounts, savings, and loan accounts as they do now. There will be no changes to how salaries are deposited or how account balances are displayed. Merely linking accounts to open banking or mobile payment services like KakaoPay and Naver Pay does not mean participation in Project Han River. Existing account linking services and the deposit token pilot project are separate services. The banking sector believes that if deposit tokens become established as actual financial services, there could be changes in payment methods centered around account transfers, cards, and mobile payments. However, Phase 2 of Project Han River is not the formal introduction of CBDC but a pilot project to verify the payment and transfer functions of deposit tokens issued by banks based on institutional CBDC. Therefore, there is nothing immediate that consumers need to do. There is no reason to move accounts or forgo signing up for the Youth Future Savings due to concerns about CBDC, nor is there a need to disconnect accounts linked to open banking or mobile payments. 2026-09-10 15:24:00
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U.S. Companies Increasing Investments in China Amid Optimistic Business Outlook U.S. companies operating in China are showing a notable recovery in their business outlook, attributed to the U.S.-China trade truce and efforts to manage conflicts.The American Chamber of Commerce in Shanghai reported on September 10 that 58% of responding companies are optimistic about their business prospects in China over the next five years, a 17 percentage point increase from last year. This marks a significant rebound in confidence among U.S. businesses in China, which had reached a record low during the four years following the COVID-19 pandemic.Performance has also improved, with approximately 78% of companies reporting operating profits in China last year, the highest level since 2019. This increase in profitability is believed to have boosted companies' confidence in their operations in China.Notably, the primary business risk perceived by U.S. companies in China has shifted. The survey found that 68% of respondents identified competition with local Chinese firms as a major challenge, up 5 percentage points from last year. In contrast, 53% cited deteriorating U.S.-China relations as a key issue, a decrease of 13 percentage points. For the first time since 2022, competition within China has emerged as a more significant business challenge than U.S.-China tensions.Investment intentions have also improved, with 28% of companies reporting increased investments in China last year, the highest level in four years. Analysts suggest that uncertainties surrounding U.S. tariff policies toward China, as well as tariffs on other countries, have enhanced China's relative attractiveness for investment. Additionally, 39% of companies indicated they would redirect funds intended for investment in China to other markets, an 8 percentage point decrease from last year, marking the lowest level in recent years.Jeffrey Lehman, chairman of the American Chamber of Commerce in Shanghai, stated, "The recent stabilization of U.S.-China relations has led to positive changes. Both countries should leverage the current atmosphere of dialogue to establish a stable and transparent institutional framework."* This article has been translated by AI. 2026-09-10 15:24:00
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Hanwha Systems unveils space AI solution at Poland defense expo SEOUL, September 10 (AJP) - Hanwha Systems has unveiled an artificial intelligence-powered satellite imagery analysis solution overseas for the first time, as the South Korean defense company seeks to expand its presence in the global space and defense markets. The company said Thursday it introduced its "Space AI Solution" at MSPO 2026, a major defense exhibition held in Kielce, Poland, on Wednesday. During the launch event, Hanwha demonstrated the system analyzing imagery of Eastern Europe captured by satellites currently in operation, rather than using simulated data. The solution uses AI to analyze imagery transmitted from various satellites and extract key intelligence, automatically performing tasks such as object detection, pattern analysis and anomaly detection to support faster decision-making by commanders and other users. A key feature is its ability to integrate the entire process from satellite image collection and AI-based data fusion to providing information for commanders' decisions. The system can be used to track troop movements and routes, while in disasters it can analyze changes to buildings and terrain to rapidly assess damage before and after an event. The system supports both electro-optical, or EO, imagery and synthetic aperture radar, or SAR, data. SAR satellites can capture imagery regardless of weather or daylight, but their radar images are harder to interpret. Hanwha said its AI can identify aircraft, ships and vehicles within seconds and combine SAR data with higher-resolution EO imagery. The technology is designed to support Hanwha's SAR satellite lineup, including a 0.15-meter very low Earth orbit satellite under development, and can link satellite reconnaissance with weapons systems such as the K9 howitzer and Chunmoo multiple rocket launcher. "By combining EO and SAR imagery, the Space AI Solution turns satellite data into immediately usable reconnaissance and tactical intelligence," a Hanwha Systems official said. "We aim to expand this into an integrated space-to-ground infrastructure and strengthen our presence in the global defense and space markets." AJP Takeaways - Hanwha Systems unveiled its AI-powered satellite imagery analysis solution at MSPO 2026 in Poland. - The system combines EO and SAR imagery to detect objects, track movements and support faster military decision-making. - Hanwha plans to link the technology with SAR satellites and weapons systems such as the K9 howitzer and Chunmoo launcher. 2026-09-10 15:20:05 -
Justice Minister Nominee Kim Seung-won Investigated for Alleged Favoritism Kim Seung-won, the nominee for Minister of Justice, is under investigation for allegedly soliciting approval for a COVID-19 treatment from the pharmaceutical company Genensel. It has also come to light that he inquired about a treatment from Bukwang Pharmaceutical.According to documents released by Kim Tae-kyu of the People Power Party on September 10, Kim Seung-won, while serving as a member of the National Assembly, requested information from the Korea Food and Drug Administration (KFDA) on June 7, 2021, regarding the conditional approval process for Bukwang Pharmaceutical's 'Levovir,' which was being developed as a COVID-19 treatment.Originally developed as an antiviral drug for hepatitis B, Bukwang's Levovir received approval for Phase 2 clinical trials amid the COVID-19 pandemic. However, the company ultimately abandoned the development in September of the same year after failing to demonstrate sufficient therapeutic efficacy during the trials. Kim Seung-won made his inquiry while Bukwang was actively pursuing the treatment's development.Kim Seung-won continued to request information related to pharmaceuticals. Two months later, on August 17, 2021, he again contacted the KFDA for detailed information on the approval status, usage, and application methods of COVID-19 antibody treatments that were in use by the government at the time.Notably, an examination of the 35 requests made by Kim Seung-won to the KFDA from 2020 to this year revealed that inquiries related to pharmaceuticals were concentrated in 2021. Outside of that year, his major requests primarily concerned issues unrelated to drug approvals, such as health and safety enforcement statistics and operational status of government vehicles.In October of the same year, Kim Seung-won contacted then-KFDA Commissioner Kim Kang-rip at the request of broker Yang Mo, asking for expedited processing of Genensel's clinical trial approval for its COVID-19 treatment.Genensel submitted its application for Phase 2/3 trials on September 23, and Kim Seung-won reached out on October 12, during the KFDA's request for additional information. Following his contact, the KFDA quickly moved forward with the review process, instructing relevant officials to report on the progress. Genensel received final approval on October 26. The former commissioner reportedly stated during a prosecution investigation that it was unusual for a member of the National Assembly to specifically mention a particular company.There are differing interpretations regarding the approval timeline for Genensel. According to the KFDA's official standards (excluding the time for the company to provide additional information), the processing time was 11 days, which is similar to the overall average of 10.8 days at that time. However, when including the entire calendar days from submission to approval, Genensel's process took 33 days, significantly shorter than the average of 60 days.Kim Tae-kyu, who raised the allegations, stated, "If Kim Seung-won contacted the KFDA commissioner while the review was ongoing and approval followed shortly after, it raises suspicions. The bigger issue is that his interest was not limited to Genensel; he must clarify the background of his requests for approval processes and statuses of other COVID-19 treatments under his office's name."However, Kim Seung-won's team has previously issued a rebuttal regarding the allegations of favoritism toward Genensel.The personnel preparation team stated in a press release on September 5, "After reviewing data indicating therapeutic efficacy from overseas Phase 2 clinical trials, we simply conveyed a complaint to the KFDA commissioner to ensure that the clinical trial procedures for domestic treatments were not unjustly delayed. We were unaware that the Genensel representative had omitted or manipulated some animal test data, and there is no evidence that we were involved in that."Regarding the unusually rapid approval speed for the clinical trial plan, they added, "When considering only the actual data review period, it was not faster than average; in fact, it took longer."* This article has been translated by AI. 2026-09-10 15:20:00
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Uiwang Mayor Kim Seong-je urges focus on citizen safety and quality waterfront spaces Kim Seong-je, the mayor of Uiwang, Gyeonggi Province, visited the Anyangcheon local river maintenance project site to inspect the progress and safety management ahead of its completion next month. He reiterated his commitment to prioritizing citizen safety while transforming Anyangcheon into a prominent waterfront space for public use. On September 9, Mayor Kim toured the Uiwang section of Anyangcheon, examining key construction areas from the Owu Bridge to the Gocheon 4 Bridge, Gwangmyeong Bridge, and Gocheon Scenic Park. During the visit, he received updates from construction officials on the progress and management status, and personally checked the construction conditions and safety measures of river facilities in preparation for potential disasters such as heavy rainfall. Mayor Kim expressed particular interest in the river's flood control capabilities and the convenience for citizens, inspecting the development of key facilities such as parks, walking paths, and bike lanes. He urged, "Please ensure thorough safety management on-site until the end and meticulously oversee the planned construction to ensure it is completed without any issues." The Anyangcheon local river maintenance project has been underway since 2022, targeting a 3.13 km stretch from the Uiwang-Gunpo boundary to Wangok-dong in Uiwang. The main objectives include enhancing flood safety, maintaining river facilities, improving water quality, and creating waterfront spaces. This project aims to create a livable waterfront space where citizens can stay, walk, and enjoy, going beyond just ensuring river safety. Mayor Kim plans that once the project is completed in October, Anyangcheon will transform into a disaster prevention area that ensures citizen safety and a recreational space for walking and leisure, becoming a key waterfront axis for balanced urban development and improved quality of life in Uiwang. He remarked, "Anyangcheon is more than just a river; it is a valuable living space that adds relaxation and leisure to citizens' daily lives." He emphasized, "We will carefully develop waterfront spaces, including walking paths, bike lanes, and parks, to ensure citizens can use them more conveniently and comfortably."* This article has been translated by AI. 2026-09-10 15:20:00
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Nexon opens Mabinogi Mobile to outside AI agents SEOUL, September 10 (AJP) - Nexon will let its cross-platform role playing game "Mabinogi Mobile" players hand routine chores to outside AI agents such as Claude Code, while keeping trading, payments and character growth off-limits. The feature, called AI Connector, will first arrive as a beta on the role-playing game's PC version in an upcoming update, its operators said in a notice posted Wednesday. It is switched off by default and works only with AI tools players install themselves. Once connected, players can ask an agent about their currency, location or unfinished daily missions without opening a single menu. A request to collect 20 pieces of wool sends the character off to gather it, and the agent can also travel to a facility to craft items. "We believe this feature should not become a tool that plays the game in place of players," the operators said. Agents are barred from the in-game exchange, payments, the cash shop and guild management. The agents also cannot send one-on-one messages or discard items. Chat messages drafted by an agent go out only with the player's approval and carry an AI icon beside the character's name. Other players' character names, guild names and chat logs are withheld from AI tools, according to the notice. The operators described the feature as taking only its first step and said they would widen its scope cautiously after watching how players use it. Bringing the tools to mobile devices remains technically difficult for now, they added. AJP Takeaways - Nexon said on Sept. 9, 2026, that "Mabinogi Mobile" will add AI Connector, a beta feature linking the game's PC version to third-party agentic AI tools including Claude Code, Cursor and Gemini CLI. - Players can query game data and delegate gathering, processing and crafting, but the exchange, payments, guild management and character growth remain closed to AI agents. - AI usage fees are borne by players, an hourly presence check curbs idle play, and Nexon said it will expand the feature gradually after observing real-world use. 2026-09-10 15:18:57 -
BOK sees chip windfall spreading, inflation risks rising SEOUL, September 10 (AJP) - South Korea's exceptional chip windfall, already swelling corporate profits and public finances, is likely to reach households with a lag and can bolster not just consumption but also housing demand and inflation, the Bank of Korea (BOK) reiterated Thursday. The central bank said in its September Monetary Policy Report pointed to the first-half nominal gross domestic product that grew about 22 percent, the first increase above 20 percent since the early 1990s. Improved terms of trade contributed about 15 percentage points to the increase, compared with 3.8 percentage points from real growth and 3.1 percentage points from the domestic demand deflator. The improvement was largely driven by export prices, with DRAM and NAND flash memory prices rising three to five times from a year earlier. Prices of other IT products, chemicals and primary metals increased between 10 percent and 40 percent. The BOK said the current episode differs from previous periods of rapid nominal growth because rising export prices, rather than rapid real growth or domestic inflation, have been the dominant driver. Even during the 2015 - 2017 semiconductor upcycle, increases in export prices and the terms of trade were only about 20 percent and 50 percent, respectively, of the magnitude seen this time. The income gains are already visible in corporate earnings, investment and government revenue. Sales at IT companies, including semiconductor makers, jumped 76 percent in the first quarter, while their operating profit margin reached 42 percent. Facility investment increased more than 20 percent from a year earlier in both June and July. National tax revenue rose 17.4 percent from a year earlier to KRW 223 trillion ($165 billion) in the first half, with the central bank expecting stronger semiconductor earnings to lift corporate tax receipts further. The spillover to households, however, has been slower. Nominal wage growth eased to 2.1 percent in the second quarter from 3.4 percent in the first. The BOK said the sharp rise in nominal growth has yet to translate into a broad improvement in household income conditions. Deputy Governor Park Jongwoo said the BOK's baseline assessment was that the semiconductor windfall would spread through the broader economy with a lag rather than remain confined to chip companies and related workers. Park said the unusually large scale of the income gains meant the effects were likely to appear first in regions benefiting directly from the semiconductor boom before spreading through channels including tax revenue. A longer-than-expected transmission lag, however, could limit the impact. He pointed to nominal gross national income as an indication of the scale of the income shock. Its growth exceeded 17 percent from a year earlier in the first quarter and reached 26.4 percent in the second, he said. Increases of that magnitude were more reminiscent of Korea's high-growth era and were changing the underlying conditions for consumption, asset markets and monetary policy, Park said. The household effect could become more visible next year, with the BOK estimating that bonus payments by major semiconductor companies alone could raise overall nominal wage growth by about 3 percentage points. Stronger household income would support consumption and the domestic recovery but could also intensify demand-side inflation. The BOK estimated that when the output gap is positive, the effect of a demand shock on core inflation is two to three times greater than when the output gap is negative. The effect also lasts three to four quarters longer. The eventual inflation impact will depend on how much of the additional income flows into domestic consumption rather than savings or asset purchases, the central bank said. Choi Chang-ho, director general of the BOK's Monetary Policy Department, said the unusually wide gap between income and production indicators was one reason the central bank was paying greater attention to nominal growth. Nominal income and real growth generally move in similar directions, Choi said. Income not immediately reflected in real growth could eventually feed into domestic demand and inflation or flow into asset markets, worsening financial imbalances. Housing is one potential channel. The BOK said large semiconductor bonuses could increase home-buying demand in areas benefiting directly from the chip boom, adding upward pressure to housing prices in the Seoul metropolitan area. Bonus payments and expectations for expanded employee housing loans have already coincided with steep price gains in Hwaseong's Dongtan district and other areas described in the report as the country's "semiconductor belt." Rapid nominal GDP growth could mechanically lower Korea's household debt-to-GDP ratio, but improved purchasing power could simultaneously increase housing demand and leverage. The BOK estimated that the household debt ratio could fall toward the lower end of the 80-to-85-percent range this year if nominal GDP grows between 15 percent and 20 percent. Korea remained sixth-highest among 44 economies tracked by the Bank for International Settlements at the end of 2025. The BOK raised its benchmark rate by 25 basis points in both July and August to 3.00 percent as stronger growth, persistent inflation and financial-stability risks increasingly pointed toward tighter policy. Park said the consecutive increases should restrain inflation with a lag, while improving income conditions could work in the opposite direction by strengthening demand. It is too early to determine which effect will ultimately prove stronger, he said. The central bank said it will determine the timing and pace of additional rate increases while monitoring inflation, growth and financial-stability conditions. AJP Takeaways - South Korea's nominal GDP grew about 22 percent in the first half, driven largely by soaring semiconductor export prices and improved terms of trade. - Corporate earnings, investment and tax revenue are already benefiting, while the improvement in household income has emerged more slowly. - The BOK expects the semiconductor windfall to spread through the wider economy with a lag rather than remain confined to chip companies and related workers. 2026-09-10 15:17:24 -
Korean National Pension Fund Adjusts Holdings in Defense and Advanced Materials Stocks The National Pension Service, South Korea's largest institutional investor, has recently sold some of its shares in Hyundai Rotem and Doosan Enerbility, both of which saw significant stock price increases due to defense and nuclear power issues. In contrast, the fund has increased its holdings in HS Hyosung Advanced Materials and HJ Heavy Industries. While these companies are all part of advanced industries such as defense, aerospace, and carbon fiber, analysts suggest that the differing investment decisions reflect expectations for recovery in core business operations as the third-quarter earnings season approaches.According to the Financial Supervisory Service's electronic disclosure system, the National Pension acquired 45,328 shares of HS Hyosung Advanced Materials on August 20. This increased its stake in the company from 5.86% in January to 6.87% in just seven months. Additionally, the fund purchased 22,391 shares of HJ Heavy Industries in July, raising its ownership from 5% to 5.02%. This marks the first purchase of HJ Heavy Industries shares in eight years, following the sale of 1,085,314 shares in 2018. The recent stock prices of both companies have dropped by 26.1% and 25%, respectively, compared to the time of the National Pension's acquisition.Conversely, the National Pension sold 1,103,422 shares of Hyundai Rotem in the third quarter, reducing its stake from 8.08% as of January 31, 2024, to 7.07% in July. Hyundai Rotem's stock price surged by 333.9%, from 28,350 won at the end of January 2024 to 123,000 won recently.During the same period, the National Pension also reduced its investment in LG Chem. In July, it sold 707,035 shares, decreasing its stake from 8.64% to 7.64%. On July 29, it sold 1,503,546 shares of Doosan Enerbility, lowering its ownership from 7.86% to 7.63%. Since the National Pension acquired these shares in March 2025, LG Chem's stock has risen by 19.8%, while Doosan Enerbility's has increased by 250%.While all these sectors are classified as advanced industries, they differ slightly in focus. HS Hyosung Advanced Materials specializes in manufacturing aramid and carbon fibers, known as 'super fibers,' as future growth drivers. HJ Heavy Industries possesses expertise in constructing special vessels such as large transport ships and high-speed landing craft. As the aerospace, defense, future vehicle, and hydrogen storage sectors show potential for future value, the National Pension's investments reflect a strategy aligned with the recovery cycle of its core businesses in tires and shipbuilding.Hyundai Rotem, LG Chem, and Doosan Enerbility also share similarities in their focus on next-generation growth drivers in defense, secondary batteries, and nuclear power. However, despite their high growth potential, analysts predict that the weak performance of their core businesses in railways and petrochemicals may lead to disappointing earnings expectations in the second half of the year.A securities industry official stated, "It appears that the National Pension has shifted its focus from large-cap stocks that have seen price increases ahead of the third-quarter earnings season to smaller-cap stocks with significant potential for performance and order improvements."* This article has been translated by AI. 2026-09-10 15:16:00
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KOSDAQ delisting clock starts ticking as menswear brand exits SEOUL, September 10 (AJP) - South Korea's tougher new rules have led to the first KOSDAQ delisting, with men's apparel company Wonpung Mulsan set to leave the market after 29 years and several other micro-cap companies facing a similar fate. Wonpung Mulsan, one of the KOSDAQ's earliest-listed companies and once the South Korean licensee of French fashion brand Nina Ricci, failed to recover the minimum market capitalization of 20 billion won (US$14.5 million). Its shares plunged more than 40 percent on Wednesday, the first day of liquidation trading ahead of its delisting. Its stock was trading at 141 won at around 1:40 p.m. on Thursday, down 43.15 percent from the previous close, after plunging more than 40 percent the previous day, the first day of liquidation trading ahead of its delisting. The stock opened at 172 won and fell as low as 134 won during the session. Wonpung Mulsan will continue trading until Sept. 18 before being delisted from the junior stock market on Sept. 21. During the liquidation period, the usual daily price limits do not apply. Instead, trades are matched every 30 minutes between 9 a.m. and 3:30 p.m., rather than continuously throughout the trading session. The case marks the first delisting under a stricter market-capitalization requirement introduced in July, and it is unlikely to be the last. Under the revised rules, a KOSDAQ company is designated as an administrative issue if its market value remains below 20 billion won for 30 consecutive trading days. Once designated, it has a 90-session recovery period. During that window, its market capitalization must reach at least 20 billion won and remain there for 45 consecutive sessions. Failure to do so creates grounds for delisting. The company had been placed on the administrative list on July 3 but failed to restore its valuation before the deadline. Founded as a garment maker in 1972, the company was listed on the KOSDAQ in July 1997, a year after the junior stock market was launched. It brought Nina Ricci to South Korea in 1999 and currently operates menswear labels including Kinloch Anderson, a Scottish heritage fashion brand, and Kinloch by Kinloch Anderson, a more contemporary line under the same brand. Its core apparel business has deteriorated sharply since 2023. Revenue fell from 28.9 billion won in 2023 to 22.7 billion won in 2024 and 16.9 billion won last year, down 41.5 percent over two years. Operating losses widened from 1.9 billion won in 2023 to 4.7 billion won in 2024 and 7.2 billion won last year, pushing its operating loss margin to 42.5 percent. The company remained in the red in the first half of this year, posting 7.6 billion won in revenue and a 1.4 billion won operating loss. In March, Wonpung Mulsan's shareholders approved a two-for-one reverse stock split to help improve trading conditions. This raised the face value of each share from 500 won to 1,000 won. But the move only reduced the number of shares and raised the share price, leaving the company's total market value unchanged. As a result, it did little to help the company meet the listing requirement. The delisting will have a direct impact on thousands of minority shareholders. According to the company's half-year report, 5,687 minority investors held 59.23 percent of its outstanding shares as of May 4. That has fueled concern among retail investors online, with some questioning whether tighter delisting rules leave small shareholders bearing most of the losses despite having little control over a company's decline. "This just does not seem right. What are small shareholders supposed to do? If investors are simply left to absorb the losses, the system needs to be reconsidered," one commenter wrote. The concern is likely to extend beyond a single company as several other micro-cap stocks move closer to their own deadlines. KM Pharmaceutical, a maker of oral-care and personal-care products, was down 12.87 percent at 528 won as of 1:54 p.m. Silla SG, a food company focused on meat distribution and processed food products, fell 6.29 percent to 954 won. Gold&S, an education company that operates foreign-language learning and publishing businesses, dropped 17.38 percent to 713 won. Soosung Webtoon, which operates industrial equipment and webtoon-related businesses, plunged 28.35 percent to 273 won. A.F.W, a manufacturer of friction-welded parts used in electric vehicles and other automotive applications, tumbled 19.42 percent to 166 won. For several of them, meeting the requirement would demand a dramatic rebound in their share prices. Some would need to rise more than fivefold from current levels. A weaker broader market has also added to the pressure on smaller companies. The KOSDAQ was trading at 831.87 as of 1:56 p.m. Thursday, up 0.18 percent on the day but still well below 929.35 on July 1. Despite Thursday's rebound, the KOSDAQ remained about 10.5 percent below its July 1 level, making it harder for the smallest companies to restore their market value within the limited recovery period. Not every company facing removal, however, would necessarily disappear from the public market altogether. Companies that meet certain profitability and other financial criteria may instead transfer to the Korea New Exchange (KONEX), a smaller market for early-stage and small businesses, without going through the usual liquidation trading period. OSP, a pet food maker, SEJIN T.S, an LCD component manufacturer, and RYUK-IL C&S, a cover-glass maker, also appear to meet the basic financial requirements based on their latest financial statements. Under Korea Exchange (KRX) rules, companies may qualify for a transfer to KONEX if they are not in a state of capital impairment and have posted operating profits in at least two of the past three years. They may also qualify with one profitable year and equity of at least 20 billion won. AJP Takeaways - Wonpung Mulsan is set to be delisted from South Korea's KOSDAQ on Sept. 21, 2026, after failing to restore its market capitalization above the 20 billion won threshold. The company entered liquidation trading on Sept. 10, with its shares down 43.15 percent at 141 won as of 1:38 p.m. - The Korea Exchange's tougher KOSDAQ delisting rules are putting more micro-cap companies under pressure. Under the revised system, companies that remain below 20 billion won in market capitalization for 30 consecutive trading days receive a 90-session recovery period and must stay above the threshold for 45 consecutive sessions to avoid delisting. - Several small-cap companies including KM Pharmaceutical, Silla SG, Gold&S, Soosung Webtoon and A.F.W were trading sharply lower on Sept. 10, 2026, as investors assessed their ability to meet KOSDAQ listing requirements. Some companies that satisfy profitability and financial criteria may instead transfer to the Korea New Exchange, or KONEX, rather than leave the public market entirely. 2026-09-10 15:15:52