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Why Are Home Prices Ignoring Government Regulations? According to data from the Seoul Real Estate Information Plaza, the average transaction price for apartments in Gangnam District has approached levels seen a year ago. This indicates that expectations for high prices in the Gangnam luxury market are reviving despite government regulations. High-end transactions, which had been suppressed for a time, are beginning to move again. Over the past year, the government has tightened lending, expanded regulated areas, and increased tax burdens on multiple homeowners. The message was clear: to stem the flow of money into real estate and curb speculative demand. Yet, the market has not remained subdued for long. Why are home prices not responding to government directives? Real estate prices tend to react to actual conditions before they respond to government announcements. Taxes can alter the flow of listings, while lending restrictions change the pathways of demand. The land transaction permission system can reduce transactions while simultaneously increasing the scarcity of preferred areas. The issue lies not in the government's will but in how policies actually function. The resumption of increased capital gains tax for multiple homeowners is a prime example. Before the tax hike, properties may be listed for tax-saving purposes. However, once the deadline passes, sellers often hold onto their properties. If the tax burden is significant, the incentive to hold rather than sell increases. Preventing transactions and lowering price expectations are not the same. When listings dry up, regulations can have the opposite effect, confirming scarcity rather than suppressing prices. Instability in the rental market also stimulates the sales market. As rental prices rise and listings decrease, genuine buyers weigh the uncertainty of future contracts against the government's promises of stability. The mindset may shift from “prices will drop if I wait” to “I need to buy before it’s too late.” A larger variable is supply. Even if the government talks about increasing supply, buyers focus on actual construction and occupancy rather than announcements. The number of permits is less important than when construction begins and when units will be available. If the supply timeline is uncertain, regulations are perceived as factors that increase scarcity rather than suppress prices. Lending restrictions are necessary. Managing household debt is a fundamental responsibility of the government. However, if the market is segmented by a single price point and fails to adequately distinguish between genuine demand and investment demand, regulations can create workarounds and distortions. It is essential to protect the housing ladder for first-time buyers while blocking speculative demand and circumvention of lending rules. Home prices respond more to market conditions than to government intentions. If taxes lock up listings, rental markets are unstable, and supply is uncertain, price expectations will rise again. What the government needs to do is not to issue stronger statements but to protect genuine buyers, curb speculative demand, and confirm supply plans through actual construction and occupancy. It is not slogans that drive home prices but credible policies that the market can trust.* This article has been translated by AI. 2026-06-17 15:32:00 -
Handmade placards highlight election concerns SEOUL, June 17 (AJP) - Handmade placards created by protesters line the roadside outside the Olympic Handball Gymnasium in Seoul's Olympic Park on June 17 during an ongoing blockade protest over ballot shortages reported during South Korea's June 3 local elections. AJP Yoo Na-hyun 2026-06-17 15:27:13 -
Seoul protester stands firm under flag umbrella SEOUL, June 17 (AJP) - A protester stands beneath an umbrella decorated with the South Korean and U.S. flags outside the Olympic Handball Gymnasium in Seoul's Olympic Park on June 17 during an ongoing blockade protest over ballot shortages reported during South Korea's June 3 local elections. AJP Yoo Na-hyun 2026-06-17 15:23:01 -
Tension in Securities Market as Jungang Group Begins Rehabilitation Process The securities industry is on edge following the initiation of rehabilitation proceedings for Jungang Group affiliates. Hanyang Securities is facing an exposure of 84 billion won, prompting major securities firms to assess their collateral and potential sell-down options. According to the financial investment industry on June 17, Hanyang Securities has the largest confirmed exposure among firms linked to Jungang Group. NICE Credit Rating estimated Hanyang Securities' book exposure related to Jungang Group at 84 billion won, which includes 54 billion won related to JTBC and 30 billion won related to JoongAng Ilbo. This amount represents a significant portion of the total exposure of 125.1 billion won across the securities sector related to Jungang Group. NICE Credit Rating noted that while the overall exposure is distributed across the financial sector, Hanyang Securities bears a relatively heavier burden compared to its assets and capital. However, Hanyang Securities has secured collateral for the related bonds, including accounts receivable, deposit return claims, and lease deposits, and is reportedly managing them through a trust structure. Aside from Hanyang Securities, Woori Investment Securities has an exposure of 25 billion won, while iM Securities has 5 billion won. Kiwoom Securities has not disclosed its related figures. NH Investment Securities holds some exposure but claims to have sufficient collateral. A representative from NH Investment stated, "While there are outstanding loans related to Jungang Group, we have secured collateral. We hold shares of Contentree Jungang as collateral, and their value significantly exceeds our exposure." They added that a substantial portion of the initial contract has been repaid, and the remaining amount is adequately secured, indicating that the actual exposure is lower than reported in the media. Shinhan Investment Securities has effectively eliminated its related risk exposure. A representative from Shinhan stated, "We sold all our holdings of JTBC bonds through institutions, and there are no amounts sold to individual investors." Mirae Asset Securities also confirmed that it has no history of selling JTBC bonds to individuals or institutions. KB Securities, Hana Securities, and Samsung Securities have been confirmed to have no direct exposure to Jungang Group. Korea Investment Securities did not participate in the creditor group and has no amounts sold to individual investors. Kyobo Securities is also reported to have no related exposure. An industry insider remarked, "It is essential to consider not just the size of the exposure but also the actual recovery potential and collateral structure. The speed of debt recovery and repayment rates during the rehabilitation process will be critical variables." 2026-06-17 15:20:00 -
South Korea Joins Italy's Mattei Plan for African Development President Lee Jae-myung's 10-day European tour, coinciding with the G7 summit, is nearing its conclusion. During the trip, President Lee met with leaders from Belgium, the European Union, Italy, the Vatican, and France to discuss expanding cooperation on various fronts, including international affairs, artificial intelligence, semiconductors, aerospace, defense, and culture. This visit is seen as a significant achievement in strengthening ties with Europe, which shares values of democracy and the rule of law. However, the implications of this trip extend beyond Europe. A key highlight is South Korea's decision to join Italy's Mattei Plan for African development. Launched by Italian Prime Minister Giorgia Meloni, the Mattei Plan aims to support Africa's economic growth through investments in energy, infrastructure, and other sectors, addressing Europe's refugee and resource security challenges. Currently, 18 African nations are participating in the Mattei Plan, establishing it as a major European initiative in Africa. Italy, positioned across the Mediterranean from Africa, serves as a primary gateway to the continent and has maintained long-standing historical and economic ties with African nations. For South Korea, which is geographically distant from Africa, collaboration with European countries could serve as a strategic pathway for entering the African market. Emilia Gatto, the Italian Ambassador to South Korea, emphasized in a January interview that cooperation between South Korea and Italy in Africa could yield significant synergies in critical minerals and supply chain collaboration. Notably, President Lee's decision to participate in the Mattei Plan follows his meeting with 20 African ministers who visited South Korea prior to his trip. This sequence of events suggests a strategic approach to enhancing South Korea's engagement in Africa. South Korea has lagged in the African competition, with China expanding its influence across the continent through large-scale loans and infrastructure investments since the early 2000s. Recently, China has accelerated economic cooperation by expanding tariff exemptions for its 53 diplomatic partners. Japan has also been strengthening its ties with Africa since the 1990s through the Tokyo International Conference on African Development (TICAD). In contrast, while South Korea is set to host its first Korea-Africa summit in 2024, internal and external challenges, including the 12/3 coup and regime changes, have sidelined its diplomatic efforts in Africa. Recent comments by Yeo Han-goo, head of the Trade Negotiation Bureau at the Ministry of Trade, Industry and Energy, highlight this reality. In an interview with local media during a visit to Morocco, he noted that South Korean products face tariffs of up to 30%, while European companies benefit from tariff-free access due to free trade agreements (FTAs), complicating efforts to use Morocco as an export hub to Europe. As such, there is a pressing need to strengthen South Korea's diplomatic efforts in Africa. Currently, no African nations have signed FTAs or Comprehensive Economic Partnership Agreements (CEPAs) with South Korea, necessitating a push to expand trade diplomacy and establish connections. North African countries like Morocco and Egypt, where CEPA negotiations are underway, should serve as initial footholds for gradually expanding trade networks with various nations. In an era of intensified U.S.-China strategic competition and competition for critical minerals, Africa, rich in essential resources, represents a strategic space that cannot be overlooked. Therefore, leveraging strengthened relations with Europe as a foundation for expanding diplomatic outreach to Africa is the most crucial task stemming from this trip.* This article has been translated by AI. 2026-06-17 15:16:00 -
FIFA Invites Influencer Inonyang to Mexico Match After Racism Incident Influencer Inonyang, whose real name is Yoon Su-jin, has been invited by FIFA to attend the group stage match between South Korea and Mexico at the North Central America World Cup after experiencing a racist incident. According to Yonhap News on June 17, FIFA announced that it has invited Inonyang to the second match of Group A, scheduled for June 19 in Guadalajara, Mexico, and that she has accepted the invitation. FIFA stated, "Since the match day coincides with 'World Day Against Hate Speech,' we plan to convey messages of respect and inclusion alongside Inonyang," emphasizing its strong condemnation of all forms of racism, hate, and discrimination. Inonyang was subjected to racist behavior by a Mexican man while watching the first group stage match between South Korea and the Czech Republic at Guadalajara Stadium on June 12. A video she shared showed a man making a 'slant-eye' gesture towards the camera, a gesture widely recognized as a racist act against Asians. The video quickly spread on social media, and the man was identified as Ulysses Fernando Bernal Miramontes, president of the Civil Engineering, Topography, and Geometry Association of Jalisco (CITGEJ). As the controversy grew, Miramontes posted a public apology video and subsequently resigned from his position as association president. FIFA confirmed that it has identified the individual responsible for the racist act and has blocked his World Cup ticket account, stating, "We have also verified the apology submitted by the individual." Meanwhile, the South Korean national team will face Mexico in their second group stage match at Guadalajara Stadium on June 19 at 10 a.m.* This article has been translated by AI. 2026-06-17 15:16:00 -
Korea Investment Trust Designated as Developer for Changwon's Namyang 1 Reconstruction Project Korea Investment Trust has been designated as the developer for the Namyang 1 reconstruction project in Changwon, marking a significant step forward for the initiative. The subsidiary of Korea Financial Group announced on June 17 that the designation of the maintenance district and the developer for the Namyang 1 reconstruction project has been officially completed. The Namyang 1 district involves the redevelopment of the Woosung Apartments in the Namyang-dong area of Seongsan-gu, Changwon. The existing complex, which consists of 750 units, is set to be transformed into a new residential complex with 967 units. The number of units may change during the permitting process. This project is the first instance of the Trust Special Case System being applied in Changwon. This system allows trust companies to propose both the designation of maintenance districts and developers simultaneously, streamlining procedures and accelerating project timelines compared to traditional maintenance projects. During the consent process in January, the Namyang 1 district secured over 70% approval from landowners in just 10 days, surpassing the legal requirement. Building on this support, Korea Investment Trust proposed the designation of the maintenance district to Changwon City in February, which completed the related announcement approximately four months later. Korea Investment Trust explained that despite being the first project in the region to apply the Trust Special Case System, the rapid establishment of the project foundation was made possible through active administrative support from Changwon City and smooth permitting procedures. Industry experts believe this case could serve as a model for the speed and effectiveness of trust-based redevelopment projects. The Namyang 1 district is located near Namyang Elementary School, making it a desirable area known as a "school zone" for families. The accessibility to local amenities, including Wonidaero and Gaumjeong Park, is also favorable, and the redevelopment is expected to enhance the residential environment and increase property values in the Namyang and Gaum-dong areas. Park Min-kyu, an executive in charge of redevelopment projects at Korea Investment Trust, stated, "The strong interest from landowners and the active cooperation from Changwon City have laid the groundwork for this project. We aim to develop it into a representative residential complex for the region based on our expertise and project management capabilities." Meanwhile, industry insiders note that as the demand for the renovation of aging apartments in Changwon accumulates, the swift progress of the Namyang 1 project could further increase interest in trust-based redevelopment projects in the area.* This article has been translated by AI. 2026-06-17 15:16:00 -
Ballot shortage sparks Olympic Park protest SEOUL, June 17 (AJP) - A protester prepares a handmade sign outside the Olympic Handball Gymnasium in Seoul's Olympic Park on June 17 during a blockade demonstration over ballot shortages reported during South Korea's June 3 local elections. AJP Yoo Na-hyun 2026-06-17 15:15:13 -
Protesters rally with alpaca in Seoul SEOUL, June 17 (AJP) - A protester walks with an alpaca during a blockade demonstration outside the Olympic Handball Gymnasium in Seoul's Olympic Park on June 17, where protesters have continued rallies over ballot shortages reported during South Korea's June 3 local elections. AJP Yoo Na-hyun 2026-06-17 15:12:27 -
South Korea's high power costs pose AI competitiveness concerns SEOUL, June 17 (AJP) - South Korea's electricity rates for data centers are higher than those in major countries, a recent report shows. While the country's overall power prices remain relatively low, industrial rates for large users including artificial intelligence (AI)-related data centers are higher than in countries such as China and the U.S. According to data released by the U.S. Energy Information Administration (EIA) on Tuesday, the average industrial rate applied to data centers in the U.S. was 8.62 cents per kilowatt-hour as of the end of 2025, nearly 40 percent lower than South Korea’s 182 won per kWh, meaning that operating the same data center for artificial intelligence (AI) in the U.S. would be far more cost-effective. Industrial electricity rates are applied to large, around-the-clock users such as factories and data centers, and are typically set below commercial and residential rates. In some U.S. states like Texas and North Dakota, industrial power prices fall below 7 cents per kWh. The gap is even wider for renewable energy power purchase agreements (PPAs) used by AI data centers. Average U.S. solar PPA prices were 6.45 cents per kWh in the first quarter, and average wind PPA prices were 7.94 cents. In South Korea, the average PPA price is about 13 cents per kWh or around 200 won, higher than the country's average industrial rate. Supposing a cluster of 1,000 Nvidia H100 chips, annual electricity costs in South Korea would total about 2.67 billion won, compared with about 2.02 billion won in the U.S. China remains cheaper in hub regions such as Gansu, Guizhou and Inner Mongolia, where electricity prices average about 5.2 cents per kWh, bringing annual costs down to roughly 1.21 billion won. Virginia and Oregon in the U.S. have begun applying separate rates for large loads of 25 megawatts or more. Japan subsidizes up to 50 percent of investment costs for data center facilities using decarbonized electricity, while Singapore and Ireland require a share of green energy as a condition for grid connection permits. But South Korea, which has declared its ambition to become an AI powerhouse, has no dedicated electricity rate for data centers. Relatively high operating costs for data centers could push up prices for AI services in South Korea, as electricity accounts for a large share of overall costs and providers using domestic data centers would have little choice but to set higher per-token prices "If electricity costs start to widen, domestic AI models will ultimately lose price competitiveness, which will work against them in the global AI market," said Yoon Sung-ro, a professor at Seoul National University. 2026-06-17 15:11:10