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  • Corporate Earnings Show Improvement Across Sectors Driven by Semiconductor Boom
    Corporate Earnings Show Improvement Across Sectors Driven by Semiconductor Boom Corporate earnings improved in the second quarter of this year, extending beyond the semiconductor sector. While Samsung Electronics and SK Hynix significantly boosted overall performance, growth and profitability in manufacturing also showed improvement even without these companies. The semiconductor-driven economic upswing appears to be spreading across various industries, with non-manufacturing revenue growth accelerating and the construction sector returning to growth for the first time in eight quarters.According to the Bank of Korea, the overall revenue growth rate for companies in the second quarter was 26.7% when including Samsung Electronics and SK Hynix, but dropped to 12.0% when excluding them. The operating profit margin also fell from 16.9% to 6.2%. The strong performance of the semiconductor giants is interpreted as a key factor driving the highest profitability levels for companies overall.The impact of semiconductor companies was also significant in manufacturing. The revenue growth rate for manufacturing was 39.6% when including these two companies, but decreased to 14.0% when they were excluded. The operating profit margin dropped from 24.0% to 7.2%. However, even without Samsung Electronics and SK Hynix, revenue and profitability improved, indicating a continued recovery trend in the manufacturing sector. Notably, the revenue growth rate for manufacturing, excluding these two companies, was higher than that of non-manufacturing (9.7%).Lee Mi-joo, head of the corporate statistics team at the Bank of Korea, stated, "The operating profit margin for manufacturing, excluding Samsung Electronics and Hynix, is 7.2%. The gap between manufacturing and non-manufacturing is not that large, and both sectors are moving in a similar direction." She emphasized that even without these companies, growth and profitability are improving across the board.The recovery in non-manufacturing was also evident. The revenue growth rate for non-manufacturing rose from 3.7% in the previous quarter to 9.7%, an increase of 6.0 percentage points. The transportation sector improved from 8.1% to 13.6%, while retail saw an increase from 7.1% to 13.7%. The expansion of revenue growth in non-manufacturing indicates that the recovery that began in manufacturing is now spreading to the service sector.Particularly, the increase in retail revenue is attributed to the growth of semiconductor-related distribution and the recovery of private consumption. The revenue growth rate for retail surged from 7.1% in the previous quarter to 13.7%. Some semiconductor distribution companies showed remarkable growth, while department stores and other consumer-related businesses also experienced significant revenue increases. The effects of the semiconductor boom are spreading to the retail sector, alongside a recovery in consumption-related industries.The construction sector also showed signs of recovery. The revenue growth rate for construction improved from -4.0% in the previous quarter to 0.3%, marking a return to growth for the first time in eight quarters. This change reflects an increase in construction volume related to large-scale facility investments, such as semiconductor plants.However, the increase in revenue has not directly translated into improved profitability. The operating profit margin for non-manufacturing slightly decreased from 5.1% in the second quarter of last year to 5.0% this year. The operating profit margin for the transportation sector fell from 7.0% to 4.8%, and the electric and gas sector dropped from 5.0% to 3.9%. In contrast, the operating profit margin for construction improved from 3.9% to 6.2%.Business sentiment is improving. In August, the manufacturing corporate business sentiment index (CBSI) rose to 103.8, an increase of 0.6 points from the previous month. The outlook for the next month also increased by 2.0 points to 102.5. The non-manufacturing CBSI rose to 96.7, up 1.5 points from the previous month, with the outlook for the next month increasing by 3.9 points to 97.6. In non-manufacturing, improvements in revenue and financial conditions have been key factors boosting business sentiment.Lee noted, "The 9.7% revenue growth rate for non-manufacturing is not low. In manufacturing, excluding Samsung Electronics and SK Hynix, the gap in revenue growth rates compared to non-manufacturing has significantly narrowed."* This article has been translated by AI. 2026-09-10 07:28:00
  • Semiconductor Boom Drives Corporate Profit Margins to Record Highs
    Semiconductor Boom Drives Corporate Profit Margins to Record Highs In the second quarter of this year, the profitability of South Korean companies soared to its highest level since statistics began being compiled. The semiconductor boom, driven by increased investment in artificial intelligence (AI), significantly boosted the performance of the manufacturing sector, leading to a sharp upward trend in overall corporate sales and operating profits. Companies' financial health has also improved, indicating simultaneous growth and profitability.According to the Bank of Korea's report on the '2026 Q2 Corporate Management Analysis' released on September 9, the operating profit margin for all surveyed companies reached 16.9%. This marks an increase of 11.8 percentage points from 5.1% in the second quarter of last year, the highest level since the first quarter of 2015. Just one quarter after recording a historic high of 13.2% in Q1, this new figure sets another record.Growth has also seen significant improvement. The overall sales growth rate for companies rose to 26.7%, up 13.2 percentage points from 13.5% in the previous quarter. The sales growth rate for the manufacturing sector increased from 21.1% to 39.6%, while the non-manufacturing sector rose from 3.7% to 9.7%.The semiconductor boom has been a key driver of high growth in manufacturing. The operating profit margin for the manufacturing sector jumped from 5.1% in the second quarter of last year to 24.0% this year, an increase of 18.9 percentage points. This is also the highest level recorded since the statistics began being compiled.By industry, the machinery and electrical/electronic sectors saw the most significant improvement in profitability. The operating profit margin for this sector surged from 7.4% in the second quarter of last year to 43.0% this year. The operating profit margin for the electronics, video, and communication equipment sector rose to 51.3%. The sales growth rate for machinery and electrical/electronic increased from 52.1% to 88.5%, while the electronics, video, and communication equipment sector rose from 75.7% to 119.7%.As the semiconductor market remains strong, the increase in operating profits has outpaced sales growth, demonstrating the operating leverage effect. Due to the high fixed cost structure of the semiconductor industry, increased production and sales have led to a greater conversion of additional sales into profits.The petroleum and chemical sectors also saw improvements in profitability, with the operating profit margin rising from 2.5% last year to 9.5% this year. Analysts attribute this positive impact to improved refining margins amid the ongoing conflict in the Middle East.While the non-manufacturing sector experienced expanded sales growth, profitability slightly declined. The operating profit margin for non-manufacturing fell from 5.1% last year to 5.0%. In the service sector, the operating profit margin for transportation dropped from 7.0% to 4.8% due to rising costs from high oil prices and detours, while the electric and gas sector fell from 5.0% to 3.9%.By company size, large corporations showed notable performance improvements. The operating profit margin for large companies rose from 5.1% last year to 19.1% this year, an increase of 14.0 percentage points. In contrast, small and medium-sized enterprises saw a modest increase from 5.0% to 5.3%. The sales growth rate for large companies increased from 16.0% to 30.5%, while small and medium-sized enterprises rose from 2.4% to 10.2%.Overall financial stability has also improved. The debt ratio for all companies decreased from 87.0% in the previous quarter to 84.5%, and reliance on borrowed funds fell from 23.9% to 22.8%. The debt ratio for the manufacturing sector dropped from 68.0% to 65.7%, while the non-manufacturing sector decreased from 122.9% to 120.2%. Large companies' debt ratio also fell from 83.8% to 79.8%. However, the debt ratio for small and medium-sized enterprises increased from 103.0% to 112.1%, indicating disparities in financial conditions by company size.Looking ahead, there is interest in whether the performance improvements centered around semiconductors will continue in the second half of the year. Im Ji-u, head of the Bank of Korea's corporate statistics team, stated, "Based on strong demand for AI investment, the semiconductor market is expected to remain robust, and demand is likely to show signs of recovery, leading to continued improvements in overall indicators centered around semiconductor manufacturing." However, he cautioned that uncertainties related to the situation in the Middle East and U.S. tariff policies remain high, so trends should be monitored closely.* This article has been translated by AI. 2026-09-10 07:24:10
  • Body of Missing Crew Member Found After Busan Tugboat Capsize
    Body of Missing Crew Member Found After Busan Tugboat Capsize One of the six crew members missing after the capsizing of the tugboat TNS Catcher off the coast of Busan has been found dead, seven days after the incident.According to Yonhap News and the Coast Guard, a sanitation worker discovered the body on the beach in front of a restroom at Dogu Beach in Pohang, North Gyeongsang Province, at 8:48 a.m. on September 9.Upon receiving the report, the Coast Guard conducted digital forensics on a mobile phone and smartwatch found with the body, confirming that it belonged to the missing crew member, identified as A.A was the second engineer of the TNS Catcher, and it took more than 12 hours to confirm his identity.The Coast Guard stated, "Standard fingerprint analysis was insufficient for identification, and we confirmed the identity through a one-to-one detailed fingerprint comparison with the second engineer's prints."The TNS Catcher capsized on September 2 while towing a container ship, M, that had suffered engine failure approximately 9 kilometers east of Oryukdo, Busan.During the incident, one Indonesian crew member was rescued, while a Korean crew member was found unconscious and later died. At the time of the accident, six crew members were reported missing, leaving five still unaccounted for after A's body was recovered.The rescued Indonesian crew member reported seeing another crew member jump from the TNS Catcher during the incident, and the Coast Guard believes that individual was A.* This article has been translated by AI. 2026-09-10 07:08:00
  • Korean Business Association Calls for Tax Revisions to Support Advanced Industries
    Korean Business Association Calls for Tax Revisions to Support Advanced Industries The Korean Business Association (KBA) has urged the National Assembly to enhance tax support to promote domestic production and investment in advanced industries. The KBA proposed adding future cars, biotechnology, and small modular reactors (SMR) to the domestic production tax credit eligibility and maintaining the employment tax credit for large corporations, among a total of 51 suggested improvements.On September 9, the KBA announced that it had submitted its recommendations for the '2026 Tax Reform Plan' to the National Assembly. Key proposals include improving the eligibility and requirements for the domestic production tax credit, maintaining the application of the integrated employment tax credit for large corporations, expanding tax support for regions facing industrial crises and population decline, preserving customs duty exemptions for R&D materials, and extending the carryover period for tax credits related to R&D and investment.The government plans to establish a 'domestic production tax credit' to strengthen the domestic production base for green transition and economic security, selecting six key sectors: solar energy, wind energy, secondary batteries, semiconductors, essential materials, and AI robot components. The KBA has requested that future cars, biopharmaceuticals, vaccines, and SMRs also be included in the support categories.The KBA has called for a review of the proposal to exclude large corporations from the integrated employment tax credit, arguing that removing employment incentives for these companies could negatively impact the expansion of quality jobs.To secure competitiveness in R&D for advanced industries, the KBA also argued for maintaining or adjusting the customs duty exemption rate for research and development materials. Industries such as future cars and autonomous driving often rely on research and development components, pilot parts, and overseas prototypes for performance evaluation and quality verification before mass production. The elimination of customs duty exemptions could increase R&D costs and weaken cost competitiveness.Lee Sang-ho, head of the KBA's Economic Division, stated, 'It is necessary to rationally improve and supplement the eligibility and requirements during the regular National Assembly discussions so that companies can effectively utilize tax benefits to increase production, investment, and employment.'* This article has been translated by AI. 2026-09-10 06:04:00
  • President Lee Returns Home After State Visit to France
    President Lee Returns Home After State Visit to France President Lee Jae-myung returned to South Korea on September 9 after completing a five-day state visit to France. Accompanied by First Lady Kim Hye-kyung, President Lee boarded Air Force One at Orly International Airport in Paris and is expected to arrive back in Korea on September 10. Before departing, President Lee held a meeting with Yael Braun-Pivet, the Speaker of the French National Assembly, and attended a luncheon with expatriates, as well as a meeting with Mathias Cormann, the Secretary-General of the Organisation for Economic Co-operation and Development (OECD). During his meeting with Braun-Pivet, President Lee emphasized the importance of reflecting the will of the people in politics, especially in a time when democracy is under threat globally. At the expatriate luncheon, he explained the rationale behind his proactive diplomatic efforts since the beginning of his administration and pledged to incorporate the voices of overseas Koreans into national policy. He particularly noted, “My term is clearly limited by the constitution,” stressing the need to initiate diplomatic efforts early to fully leverage the benefits of economic and security cooperation. In the afternoon, he met with OECD Secretary-General Cormann, highlighting that this year marks the 30th anniversary of South Korea's membership in the OECD. He stated that as South Korea has transitioned from a recipient of aid to a donor country, it should contribute more to the international community. 2026-09-10 02:08:00
  • Lee Says His Term Is Clearly Limited by Constitution Amid Oppositions Re-election Claims
    Lee Says His Term Is Clearly Limited by Constitution Amid Opposition's Re-election Claims President Lee Jae-myung stated on September 9 that "my term is clearly limited by the Constitution." This remark is seen as a rebuttal to recent opposition claims that proposed constitutional amendments are aimed at enabling self-re-election.Lee made his comments during a luncheon for expatriates at a hotel in Paris, part of his state visit to France, while explaining the rationale behind his proactive approach to diplomacy since taking office.He emphasized, "Ultimately, we must start early to reap the benefits for a long time," adding that opportunities for utilizing good relationships become limited as time progresses.Lee highlighted that meetings between heads of state and diplomatic efforts provide South Korea, an open trading nation, with opportunities for trade, investment, and economic and security cooperation. He noted that countries he has visited have seen significant increases in export rates, along with enhanced private exchanges and cooperation among businesses, benefiting the expatriate community.His comments regarding constitutional amendments and re-election were not directly in response to questions but were part of a broader discussion on the importance of early diplomatic engagement to maximize outcomes. During a visit to Brazil in July, he made similar remarks, indicating that late visits abroad would limit the ability to leverage newly established cooperation.On the previous day, Kim Jeong-sik, the floor leader of the People Power Party, raised suspicions during a representative speech in the National Assembly, questioning whether Lee's mention of a two-term constitutional amendment was an attempt to delay judicial proceedings, noting that the president has not explicitly stated he would not seek re-election.Kim also referenced recent declines in approval ratings, asserting that a drop in support necessitates a change in national policy. He criticized the Lee administration for being out of touch, claiming it is "blindly pursuing its own path" regarding recent cabinet reshuffles, real estate policies, the abolition of investigative powers, and police reforms. He referred to a term coined by some opposition members, combining Lee's name with "pandemic," calling it a "jamdemic" and labeling it a national disaster.Lee also addressed the domestic political situation, stating, "South Korea is undergoing tremendous changes as of the night of December 3, 2024, and is experiencing revolutionary transformations."He explained that the French Revolution was a process of gathering the people's energy to create a new system and world, but warned that excessive momentum can lead to backlash.Lee stressed the need for restraint when energy is high, stating, "We must move in a desirable direction while minimizing pain and resistance with the consent of many people."He added, "We must not repeat the mistakes of the past," emphasizing the importance of caution.Earlier that day, during a meeting with Yael Braun-Pivet, the President of the French National Assembly, Lee underscored that reflecting the will of the people in politics is the essence of democracy. He noted that the French Revolution played a significant role in spreading the values of freedom, equality, and popular sovereignty, which have also been crucial in South Korea's journey toward a new era of popular sovereignty.* This article has been translated by AI. 2026-09-10 00:20:10
  • Gimhae Youth Festival to Kick Off on September 12 with 156 Local Goods Competitors
    Gimhae Youth Festival to Kick Off on September 12 with 156 Local Goods Competitors The city of Gimhae will host the '2026 Gimhae Youth Festival FEEL SO GOODS' from September 12 to 19, showcasing the innovative ideas and talents of local youth. This festival, held during Youth Week, will feature a local goods competition along with various cultural events for residents.A total budget of 1.05 billion won has been allocated for the event, combining funds from the Gyeongnam Province's 'Youth 365 Hot Place Creation Project' and the youth festival budget.On September 19, the main event will coincide with the '2026 Gimhae Local Goods Competition,' which has attracted 156 teams. The city will conduct evaluations on September 10 and 11 to select five teams, with the final results to be announced on September 14 on the Gimhae Bio Industry Promotion Agency's website.A prize pool of 10 million won has been set aside for the competition. Plans for actual sales following the competition have yet to be finalized.Gimhae City is considering supporting winners who wish to sell their products by facilitating their entry into tourist souvenir shops, with the offline store 'Gakgum Art Market' currently under discussion as a potential venue.In addition to the major events on September 12 and 19, programs utilizing the Youth Center will continue throughout the festival. The 'Stamp Challenge' will run from September 1 to 19, encouraging participants to complete missions at various locations. Other activities include a photo exhibition by local youth artists titled 'Film Log,' a youth workshop sharing entrepreneurship experiences called 'Road to Gyeongju,' tarot psychological counseling, mock interviews, generative AI training, and craft experiences.On September 12, the Changui Market in Mugye-dong will host 'Mugye-ro, World-ro Blue Marble,' featuring participation from both local and foreign youth. Events will include an e-sports (LOL) tournament, preliminary rounds for a busking competition, and a potluck party sharing global cuisine.The main event, 'Goods Festa,' will take place on September 19 from 10 a.m. to 9 p.m. at Surungwon and Bongridangil. During the Youth Day ceremony at 2 p.m., 14 individuals will be recognized for their contributions to youth policy development, and awards for the local goods competition will also be presented.The event will feature over 40 booths, including youth goods experiences and sales, as well as promotions from related organizations. A local goods showcase, brand pop-up stores, goods repair shops, food truck zones, and photo zones will also be available. Among the award-winning products, items reinterpreting Gaya culture and Gimhae's historical and tourism resources will be unveiled.Following the ceremony, a talk concert by illustrator Yumma, the finals of the local and foreign youth busking competition, and performances by local youth artists and university clubs will take place. A congratulatory performance by singer Kyung Seo-yeji is also scheduled.Gimhae Mayor Jeong Yeong-du expressed hope that the festival, filled with the ideas and talents of youth, will foster communication and empathy between young people and citizens. He emphasized the city's commitment to creating an environment where youth can explore possibilities and settle in the region.* This article has been translated by AI. 2026-09-10 00:08:00
  • President Lee Calls for Emphasis on Inclusive Growth Amid Economic Polarization
    President Lee Calls for Emphasis on Inclusive Growth Amid Economic Polarization President Lee Jae-myung identified economic polarization as a fundamental cause of conflict and the spread of extremism between nations and groups. He urged the Organization for Economic Cooperation and Development (OECD) to place greater emphasis on 'inclusive growth,' which focuses on fairly distributing opportunities and benefits of growth.On September 9, local time, President Lee met with OECD Secretary-General Mathias Cormann at a hotel in Paris to discuss global economic issues and ways to enhance cooperation between South Korea and the OECD.President Lee stated, "The OECD has provided significant research and direction on global economic and social policies, which has greatly benefited South Korea. It has been 30 years since we joined the OECD, and during that time, South Korea has transitioned from a recipient of aid to a donor country."He added, "Given the many changes in the global landscape, South Korea must also contribute significantly," and proposed ongoing discussions on areas of collaboration with the OECD.President Lee diagnosed that international relations have become increasingly unstable, with rising hostility and extremist thinking among people. He expressed concern that escalating tensions between nations could lead to war.He remarked, "While there are various causes for the intensification of conflicts between nations or among groups, at the core, economic polarization has a substantial impact."Furthermore, he expressed a strong interest in the theory of inclusive growth, which advocates for the fair distribution of growth opportunities and benefits as a path to sustainable growth. He requested that the OECD place more emphasis on policy and political efforts to alleviate polarization.He concluded by saying, "I hope the OECD will take a greater interest in South Korea and that we can continue to discuss how we can work together."In response, Secretary-General Cormann praised South Korea as a representative success story of the OECD, having transitioned from a recipient of development aid to a donor and a strong exporting nation.Cormann stated, "South Korea is an extraordinary success story among OECD member countries, having successfully transitioned from a recipient of development aid to a donor country, while also growing into a strong nation with excellent export competitiveness."Regarding the inclusive growth proposed by President Lee, he affirmed, "I fully agree on its importance, and the OECD will continue to focus on it." Cormann also highlighted the need for member countries to address declining productivity and the aging population and labor force, noting that the South Korean government is seeking innovative solutions to these challenges.* This article has been translated by AI. 2026-09-10 00:04:00
  • Gunpo Mayor Han Dae-hee Receives National Award for Climate Response Policies
    Gunpo Mayor Han Dae-hee Receives National Award for Climate Response Policies Han Dae-hee, the mayor of Gunpo, South Korea, is gaining attention for his achievements in energy transition and citizen-focused climate change response policies utilizing existing urban infrastructure. On the day of the award ceremony held at BEXCO in Busan, Mayor Han received the Minister of Land, Infrastructure and Transport Award in the climate change (energy transition) category at the '2026 Korea Urban Awards.' This recognition acknowledges Mayor Han's efforts to produce renewable energy using existing urban facilities and implement policies that address extreme weather conditions such as heatwaves and cold snaps. Mayor Han has installed solar power facilities with a total capacity of 1,329 kW at existing road structures, including the Dae-ya Underpass and Samsung Underpass, generating approximately 1,490 MWh of renewable energy annually. During the project, he secured 8.6 billion won in external funding through private investments and provincial government initiatives. Mayor Han explained that by utilizing existing infrastructure, he has reduced financial burdens while expanding the production base for renewable energy. He is also implementing citizen-focused policies to respond to extreme weather. Initiatives such as 'Gunpo Ice' for heatwave response and 'Gunpo Hot' for cold snap response are being operated to closely address climate change impacts on citizens' daily lives. Citizen A stated, "As summer heatwaves and winter cold snaps feel more severe than before, I hope there will be more policies that provide immediate assistance in our local areas." Another citizen, B, expressed, "I view positively the production of solar energy using existing facilities and the implementation of climate response projects that meet citizens' needs. I hope to see more initiatives that allow citizens to feel real change." Mayor Han Dae-hee emphasized, "This award is a recognition of our efforts to actively respond to climate change by utilizing the various resources and infrastructure of Gunpo. We will continue to implement policies that citizens can feel in terms of climate change response and sustainable urban development." Meanwhile, Mayor Han plans to continuously expand energy transition and climate response policies that directly impact citizens' lives by leveraging existing urban facilities.* This article has been translated by AI. 2026-09-09 22:40:00
  • President Lee Meets French National Assembly Speaker, Emphasizes Democracy
    President Lee Meets French National Assembly Speaker, Emphasizes Democracy President Lee Jae-myung emphasized the need for active parliamentary roles in advancing democracy and enhancing Korea-France relations during a meeting with Yael Bron-Pivet, the Speaker of the French National Assembly. Chief Presidential Spokesperson Kang Yu-jeong stated on September 9 that President Lee met with Speaker Bron-Pivet and requested the French Assembly's interest and cooperation. Speaker Bron-Pivet welcomed President Lee's visit to the National Assembly, noting that it signifies the President's special interest in the role of parliament in representing democracy. President Lee remarked, "In a global environment where democracy is under threat, reflecting the will of the people in politics is essential to democracy," adding that parliament plays a crucial role in this process. He also highlighted the influence of the French Revolution on the development of democracy in Korea, stating, "The French Revolution spread the values of liberty, equality, and popular sovereignty, significantly impacting Korea's transition to an era of popular sovereignty." President Lee explained that the fundamental values of democracy, such as freedom and equality, have provided a solid foundation for the continuous development of both countries' economies and advanced industries. He assessed that there is great potential for expanding cooperation between Korea and France in various fields, including trade, investment, advanced technology, and social policy. He stressed that for a new leap in bilateral relations, significant and deep cooperation between the two parliaments is necessary. Speaker Bron-Pivet expressed interest in the Korean government's policies for democratic development. President Lee introduced the institutional reforms Korea is pursuing to faithfully reflect the opinions of its citizens in policymaking. The two leaders also discussed ways to enhance cultural and human exchanges. They agreed on the need to activate exchanges and communication between the two parliaments to further develop Korea-France relations. Spokesperson Kang noted that this meeting serves as a catalyst to expand the cooperation between the two countries, which has been concretized through two summits this year, into the parliamentary level, ensuring that the outcomes translate into tangible cooperation felt by the citizens of both nations.* This article has been translated by AI. 2026-09-09 22:16:00