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  • Gwangju to Develop Residential Complex Near Semiconductor Industrial Complex
    Gwangju to Develop Residential Complex Near Semiconductor Industrial Complex Gwangju is set to begin the development of a residential complex to support the semiconductor industrial complex in the Honam region.This initiative is a response to anticipated population growth.According to Gwangju officials, the residential complex will be located in the Sangmu Urban Convergence District, Sanjeong Public Housing District, and the Songjeong Station area.Gwangju estimates that with four semiconductor fabs expected to be operational by the 2030s, there will be a need for housing for 100,000 to 160,000 residents, based on an average of 2 to 3 people per household for each fab's direct and indirect job creation.The Sangmu Urban Convergence District will see an investment of 1.579 trillion won, focusing on a mixed-use development that integrates jobs, housing, and commercial and cultural spaces.This project will also include smart advanced specialized projects, medical and digital convergence projects, research and development innovations, and MICE (Meetings, Incentives, Conferences, and Exhibitions) and cultural convergence projects, with completion planned for 2031.In the Sanjeong Public Housing District, a total of 14,000 housing units (7,000 public rental units, 6,800 private sale units, and 200 single-family homes) are planned to be built by 2034.Once facing concerns over an oversupply of housing due to a declining population, the area is now experiencing a turning point with the establishment of the semiconductor industrial complex.In the KTX investment-leading area near Songjeong Station, the Korea Land and Housing Corporation (LH) will invest 594.3 billion won to develop a 550,158 square meter (approximately 170 acres) site around the station.The development will create a mixed-use residential and commercial complex with 3,200 housing units by 2032.Additionally, the site of the Kumho Tire Gwangju plant, covering 420,594 square meters (approximately 127 acres), is under discussion between Gwangju and Kumho regarding its development purpose and method.* This article has been translated by AI. 2026-09-07 14:52:00
  • Kwangjang and British Chamber of Commerce in Korea Successfully Host Defense Industry Briefing
    Kwangjang and British Chamber of Commerce in Korea Successfully Host Defense Industry Briefing Law firm Kwangjang, led by attorney Kim Sang-gon, announced on September 7 that it successfully co-hosted a defense industry briefing event with the British Chamber of Commerce in Korea (BCCK).The event took place on August 31 in the conference room on the first floor of Kwangjang's new building in Jung-gu, Seoul, and was also conducted online. It attracted key representatives from major defense companies in the UK and Europe, primarily from the BCCK's Defense Industry Committee.This briefing was part of a regular program organized by the BCCK's Defense Industry Committee. Kwangjang's defense industry team advisor, Kang Eun-ho, who previously served as the 11th Commissioner of the Defense Acquisition Program Administration, presented on 'Opportunities for UK-Korea Defense Cooperation.' Other attendees included Kwangjang defense attorneys Kim Hyuk-jung, Lee Jong-seok, Son Kwang-ik, and Lee In-soo.The event featured a Q&A session with representatives from major global defense companies based in the UK, such as Airbus Helicopters, Babcock International, BAE Systems, Leonardo, MBDA, Reflex Marine, and Rolls Royce, along with the British Embassy in Korea. This session fostered a consensus on specific and feasible defense cooperation plans.In line with the growth of the Korean defense market, represented by K-Defense, the event confirmed that UK defense companies can play a crucial role as collaborative partners in developing K-Defense exports, moving beyond being mere suppliers of individual defense items. Furthermore, participants shared a concrete vision for exploring new markets based on these collaboration possibilities.The event also reaffirmed the role and competitiveness of Kwangjang's defense industry team, which possesses expertise and extensive practical experience in supporting defense exports, as they work to expand business opportunities through partnerships with Korea.Following this event, Kwangjang and the BCCK plan to continue their collaboration and exchanges to encourage European defense companies, including those from the UK, to take a more active role as partners in Korea's defense sector.* This article has been translated by AI. 2026-09-07 14:48:00
  • Gimhae Aims to Launch Cruise Tourism Products Next Year
    Gimhae Aims to Launch Cruise Tourism Products Next Year Gimhae City is developing port tourism products to attract cruise passengers arriving at Busan and Masan ports.However, no contracts with travel agencies or product launches have been finalized yet, as the city is currently exploring possibilities with a goal of commercialization next year.On September 7, Gimhae City announced its participation in a fam tour organized by Gyeongnam Province and the Gyeongnam Tourism Foundation from September 3 to 4, aimed at cruise port tour specialists.The tour included representatives and staff from Aju Cruise, a company specializing in cruise port tours. Aju Cruise has partnerships with Costa Cruises, MSC Cruises, and Royal Caribbean, and recorded approximately 30,000 port tour participants last year.A Gimhae City tourism official stated, "Aju Cruise is examining tourist sites to expand its port tourism products from Busan to the Gyeongnam region. While no contracts have been signed yet, we hope to see Gimhae tourism products developed by next year."Participants in the fam tour visited Gimhae Gaya Theme Park on the afternoon of September 4, where they watched the art performance 'Painters of the Gaya Kingdom' and explored key facilities, including extreme activities.They also visited the Hanok Experience Center, the Royal Tomb of King Suro, the UNESCO World Heritage site of Daeseong-dong Ancient Tombs, and the National Gimhae Museum to survey Gimhae's historical and cultural tourism resources.Gimhae City provided professional cultural tourism guides and supported admission to the theme park, performance viewing, and promotional materials.During discussions with travel agencies, options for experiential products tailored to the age, interests, and travel preferences of cruise passengers were explored. Suggestions included combining traditional experiences such as tasting Jangguncha, making traditional knots, and enjoying Gaya music performances with existing tour courses.The city also explained its incentive program for attracting cruise passengers, which has been in operation since this year at the Hanok Experience Center. Based on feedback from the fam tour, the city plans to continue offering incentives next year and refine the specific support conditions.The tourism official noted, "We will have to see if this leads to actual contracts, as travel agencies need to visit the sites to verify the tourism resources before product development can proceed."This fam tour was not solely organized by Gimhae City; Gyeongnam Province and the Gyeongnam Tourism Foundation invited Aju Cruise, and future fam tours for other specialized travel agencies are expected to follow.Song Dul-soon, head of Gimhae City's tourism department, stated, "This has been an opportunity to promote the history of Gaya from 2000 and various experiential content to cruise passengers arriving at Busan and Masan ports. We will work with relevant agencies to ensure Gimhae becomes a viable cruise port tourism destination."* This article has been translated by AI. 2026-09-07 14:48:00
  • Yen-Dollar Exchange Rate at a Crossroads: Will the Five-Year Trend Change?
    Yen-Dollar Exchange Rate at a Crossroads: Will the Five-Year Trend Change? Last week, the U.S. Labor Department reported that non-farm payrolls increased by 162,000 in August, exceeding market expectations by more than three times. However, the yen-dollar exchange rate only rose by about 1 yen following the announcement. Typically, strong employment figures lead to expectations of U.S. interest rate hikes, resulting in a stronger dollar and a weaker yen. As the exchange rate's recovery from a sharp decline of over 5 yen from September 2 to 4 has been limited, some analysts suggest that the prolonged 'ultra-weak yen' phase may be at a turning point.On September 4, the U.S. Labor Department announced that non-farm employment rose by 162,000 from the previous month, significantly surpassing Dow Jones' forecast of 53,000. Additionally, the July figures, which had shown a decline, were revised upward. Based on movements in the U.S. short-term interest rate futures market, the CME FedWatch tool calculated the probability of a rate hike in September to be nearly 60%, up from about 50% the previous day.However, the exchange rate only moved from the low 155 yen range to the 156 yen range after the announcement. On the morning of September 7, the Tokyo foreign exchange market saw the dollar drop to as low as 155.80 yen, fluctuating in the high 155 yen range. The Nihon Keizai Shimbun reported that the limited rise in the yen-dollar exchange rate, despite stronger-than-expected employment figures, indicates a shift in market perception regarding the difficulty of profiting from selling yen.The yen-dollar exchange rate fell from the low 160 yen range per dollar on September 2 to the low 155 yen range by September 4. Following U.S. Treasury Secretary Scott Vessen's call for correction of the yen's undervaluation on August 30, Bank of Japan (BOJ) Governor Kazuo Ueda and committee member Hajime Takata made comments favoring interest rate hikes. As expectations grew that the BOJ would accelerate its rate hike pace, investors rushed to unwind their yen short positions. According to the Commodity Futures Trading Commission (CFTC), hedge funds held a net short position in yen of 102,188 contracts (approximately 1.2 trillion yen) just before the sharp decline, a 33% increase from the previous week. The Nihon Keizai Shimbun noted that large short positions in yen remain, making it likely that unwinding these positions could lead to a chain reaction of yen buying and dollar selling.Market attention is focused on whether this sharp decline is merely a temporary position unwinding or a trend reversal. Following the release of the U.S. employment figures, the trend reversal appears to be gaining traction. Hirofumi Suzuki, chief foreign exchange strategist at Mitsui Sumitomo Bank, stated, "Despite solid U.S. employment data, there is strong buying pressure anticipating yen appreciation."Focus on Breaking the 155 Yen BarrierThe next key indicator is the U.S. Consumer Price Index (CPI) for August, set to be released on September 11. Akira Moroga, chief market strategist at Aozora Bank, believes that if the CPI comes in lower than expected and the Federal Reserve decides to maintain its policy rate during the Federal Open Market Committee (FOMC) meeting until September 16, the yen-dollar exchange rate could drop to around 152 yen. Conversely, if the CPI is high but the rise in the yen-dollar exchange rate remains limited, there may be a broader reassessment of investment strategies betting on yen depreciation.However, some analysts caution that further declines in the exchange rate may not be easy. The U.S. Central Command announced on September 5 that it had attacked three Iranian oil tankers. As tensions in the Middle East rise, West Texas Intermediate (WTI) crude oil futures prices increased to around $92 per barrel on September 7. Expectations of a growing trade deficit for Japan, which relies heavily on energy imports, are contributing factors for yen selling and dollar buying.Currently, the market is closely watching the 155 yen level. The exchange rate has not fallen below 155 yen even after the Japanese government's yen-buying interventions in April and May and the joint U.S.-Japan intervention at the end of July. Keiichi Iguchi, chief strategist at Resona Holdings, predicts, "The point at which the rate falls below 155 yen will come soon." Moroga added that if U.S. CPI slows and rate hike expectations diminish, while the Japanese government more clearly supports the BOJ's rate hike stance, the rate could drop to 150 yen. Therefore, whether the trend of a weak yen that has raised the yen-dollar exchange rate by about 60 yen over the past five years will change is expected to be determined at the 155 yen level.* This article has been translated by AI. 2026-09-07 14:40:10
  • Pacific Law Firm Concludes Seminar on Key Issues in Pharmaceutical Patent Law
    Pacific Law Firm Concludes Seminar on Key Issues in Pharmaceutical Patent Law Law firm BKL announced on September 7 that it successfully concluded its seminar on 'Key Issues in Pharmaceutical Patent Law' held on September 4 at its headquarters in Jongno-gu, Seoul.The seminar, hosted by BKL's Intellectual Property (IP) group, attracted over 100 participants from corporate and academic sectors, reflecting significant interest in current pharmaceutical patent law issues.Key topics included the skinny label strategy and patent infringement issues related to medical use inventions, which have garnered attention in the generic industry. The seminar analyzed the U.S. Supreme Court's ruling in Hikma Pharmaceuticals USA Inc. v. Amarin Pharma, Inc., and discussed the implications of recent amendments to domestic patent law that include 'export' as an act of indirect infringement, particularly affecting companies exporting pharmaceutical intermediates.The first session featured BKL attorney Han Ye-in, a patent expert in the pharmaceutical and biotech fields, who presented on 'Skinny Labels and Medical Use Invention Infringement – Understanding the Hikma v. Amarin Ruling and Its Implications for Korea.' Han emphasized that the market entry strategies for generics through skinny labels should not be easily recognized as patent infringement.He stated, 'If the patent holder's medical use inventions are overly broadly protected, it could effectively block the market entry of generics, similar to substance patents. This concern is reflected in the recent U.S. Supreme Court ruling.' He also explained the latest trends in the legal principles surrounding medical use invention infringement and the skinny label strategy available for generics in Korea.Following the presentation, a discussion was moderated by BKL attorney Kwon Taek-soo. Professor Kim Dong-jun from Chungnam National University introduced case law from Germany and the Unified Patent Court (UPC), discussing legal frameworks to apply the indirect infringement principles from Hikma v. Amarin in Korea. Professor Lee Mi-jeong from Seoul National University suggested that, considering the realities of healthcare in Korea, the ability of generics to be sold without a doctor's prescription should also be factored into the assessment of medical use invention infringement.The second session featured Professor Kim Kyung-jin from Sungkyunkwan University, who presented on 'Legislative Proposals for Normalizing Legal Principles Related to Medical Use Inventions.' He argued for amendments to patent law that align with the nature of medical use inventions and legislative solutions to the issues of skinny label patent infringement and the liability of physicians and pharmacists.During the subsequent discussion, patent attorney Geum Sim-seong advised a cautious approach to avoid imposing excessive infringement prevention obligations on generic developers. BKL attorney Choi In-kyung emphasized the need for amendments considering the current state of medical use invention protection abroad and the legal stability, raising the necessity for further review of criteria for injunctions and damage calculations.The third session featured Jeong Cha-ho, head of the KTP Patent Law Research Institute, who presented on 'Interpretation and Legislative Issues Regarding Indirect Infringement of Patent Rights in Exporting Parts and Intermediate Products.' Jeong pointed out that the recent amendment to Article 127 of the Patent Act includes 'export' as an act of indirect infringement, raising concerns about the overly broad scope of indirect infringement. He stressed, 'Article 127 should be interpreted restrictively based on the premise that finished products are produced domestically, and ultimately, there is a need to re-amend this provision.'The third session was chaired by Shin Hye-eun from Chungbuk National University. BKL attorney Yeom Ho-jun stated, 'The addition of 'export' to the acts of patent implementation under patent law does not necessitate a change in the interpretation of the subject of implementation,' and argued for a strict interpretation of Article 127 in light of the principle of territoriality. He added, 'If interpreted beyond the dual domestic relevance requirement, it could lead to unprecedented excessive protection, placing a serious burden on companies exporting intermediate products, and it cannot be said that the dual domestic relevance requirement has been discarded based on the amendment's background.'Meanwhile, BKL's Pharmaceutical and Biotech IP team comprises experts in pharmacy, life sciences, chemistry, and engineering, as well as attorneys with backgrounds as patent court judges and Supreme Court research judges. They provide comprehensive legal services across the pharmaceutical and biotech sectors, including regulatory patent linkage, market entry strategies, patent disputes, and IP transactions such as licensing and co-development.* This article has been translated by AI. 2026-09-07 14:40:00
  • Oil Corporation Union Opposes Gas Corporation Merger, Citing Energy Security Risks
    Oil Corporation Union Opposes Gas Corporation Merger, Citing Energy Security Risks The labor union of the Korea National Oil Corporation has officially opposed the government's plan to merge the Korea National Oil Corporation and the Korea Gas Corporation, calling it a "hasty administrative action that threatens national energy security and the future of the corporations."According to industry sources, the oil corporation's union issued a statement on September 7, asserting that the government failed to adequately gather the opinions of employees from the public institutions involved while pushing for this significant decision directly related to national energy security. They claimed that the merger proposal not only lacks procedural legitimacy but could also negatively impact the national energy ecosystem.The union also raised concerns about the government's proposed "integrated energy strategy for the oil and gas sectors." They argued that the distinct business structures and roles in exploration, development, storage, import, and distribution of oil and gas mean that a physical merger without thorough review could undermine the expertise of each institution.Additionally, the union criticized the lack of consultation with members during the merger process. They emphasized that discussions with stakeholders should precede any decisions that affect the existence of the corporations and the employment and working conditions of their employees.The union called for responsible action from management, stating, "If they were unaware of the merger plans beforehand, it shows incompetence; if they were aware and did not respond, they must clarify the process and reasons behind it." They demanded that the president hold an immediate town hall meeting for all employees to disclose the progress of the merger and future response plans.The union concluded by stating, "We will continue to oppose the merger to protect national energy security, the expertise of the oil corporation, and the rights of our members to survive."* This article has been translated by AI. 2026-09-07 14:40:00
  • North Koreas new destroyer ready for combat
    North Korea's new destroyer ready for combat SEOUL, September 7 (AJP) - North Korea has put its new 5,000-ton warship into service in the East Sea, state media reported on Monday. According to the state-run Korean Central News Agency, a commissioning ceremony for the Kang Kon was held at the eastern port city of Wonsan on Sunday, with its leader Kim Jong-un in attendance along with his daughter Ju-ae. The newly-commissioned destroyer is part of a nuclear response system capable of launching "an annihilating retaliatory strike," KCNA quoted Kim as saying, although it did not specify whether the vessel would carry nuclear weapons. "We must establish more clearly a powerful and reliable nuclear war deterrent, to put into practice the diverse and effective operation of our nuclear combat systems and further strengthen our military activities for maritime defense and war deterrence," Kim said. He added that that the mere announcement of the vessel's commissioning would "send a clear signal to the enemies, and their anxieties will only deepen." The Kang Kon is the second destroyer after the Choe Hyon, which was commissioned into the West Sea in June, as Pyongyang steps up efforts to strengthen its naval capabilities. The vessel suffered an accident during its initial launch attempt in May last year, when its hull tilted, but was later restored and underwent a series of tests including the test-firing of strategic cruise missiles and other weapons in the East Sea in July. The commissioning came about 15 months after the vessel's launch and just ahead of the 78th anniversary of the North's founding on Sept. 9. It also came a day before South Korea's weeklong "Freedom Edge" trilateral exercise with Japan and the U.S. in international waters, aimed at improving their response to North Korean nuclear and missile threats. North Korea has criticized such joint drills as a rehearsal for war. Vowing to strengthen the country's "naval forces," Kim said he would once again demonstrate its ongoing "important plans" to the world "in about eight months," without providing details, prompting speculation that the plans could be related to North Korea's development of a nuclear-powered submarine. AJP Takeaways - North Korea has put its new 5,000-ton Kang Kon destroyer into service, expanding its naval presence in the East Sea as Pyongyang pushes to strengthen its maritime forces. - Kim Jong-un described the destroyer as part of North Korea's nuclear response system, while calling for the navy to become a nuclear-armed force. It remains unclear whether the vessel itself will carry nuclear weapons. - Kim hinted at further naval developments within about eight months, without giving details, prompting speculation that North Korea could reveal progress on a nuclear-powered submarine. 2026-09-07 14:37:57
  • China Halts Expansion of Battery Production Capacity Amid Supply Concerns
    China Halts Expansion of Battery Production Capacity Amid Supply Concerns China has put the brakes on the expansion of battery production capacity. Local governments across the country have effectively halted the acceptance of applications for new battery production facilities for electric vehicles and energy storage systems (ESS) since the second half of this year, according to a report from the Chinese media outlet Caixin on September 7. Additionally, relevant departments of the central government are currently reviewing the overall status of existing and planned battery production capacity, with a particular focus on ESS battery cells. This move is interpreted as a signal that the Chinese government is beginning to manage the oversupply issues in the lithium battery industry.In recent years, driven by expectations of growth in the electric vehicle and ESS markets, there has been a surge in the establishment of battery production facilities in China. However, as companies rushed to increase their production capacity to secure market share, overlapping investments and price competition intensified. The Chinese government is concerned not about the current supply shortage but about a potential oversupply that could emerge in one to two years. Since it takes considerable time to plan and operate battery plants, large-scale investments based on current demand could lead to production capacity exceeding actual market size in the future.Since the beginning of this year, the Chinese government has repeatedly pointed out the oversupply issues in the lithium battery sector. There is growing concern that if battery companies expand their production capacity based solely on current high demand, future supply could significantly outpace actual demand. However, China has not completely banned the expansion of ESS battery production. Projects that have already been reported or are under construction, as well as existing projects that have received approval, will continue as planned. Upgrades in technology, modifications to existing production lines, and the construction of overseas plants are also not restricted. The key aspect of this measure is to temporarily halt the expansion of new production capacity.After completing a comprehensive survey of industry production capacity, the Chinese government is expected to establish a monitoring and alert system for production capacity and may reopen the approval process for new factory construction.As China, which dominates the global ESS battery supply chain, adjusts its expansion pace, it is anticipated to impact the global market. In particular, the prices of ESS batteries, which have been declining due to aggressive expansions by Chinese companies, are expected to rise in the future.* This article has been translated by AI. 2026-09-07 14:36:00
  • Musinsa Beauty Launches Pharmacy Beauty in Collaboration with Onnuri Pharmacy
    Musinsa Beauty Launches 'Pharmacy Beauty' in Collaboration with Onnuri Pharmacy Musinsa Beauty has partnered with Onnuri Pharmacy to introduce 'Pharmacy Beauty.' This new retail model aims to integrate the expertise of pharmacies with beauty stores, offering high-performance cosmetics and inner beauty products.On September 7, Musinsa and Onnuri Pharmacy announced that they will unveil Pharmacy Beauty at the 'Musinsa Beauty Hongdae' store, set to open on the 11th in the Mapo District of Seoul. Pharmacy Beauty is a health and beauty platform that provides customer-tailored curation centered on high-performance cosmetics and inner beauty products, leveraging the expertise of pharmacies and pharmacists.The Musinsa Beauty Hongdae store will span approximately 400 pyeong, consisting of four floors from basement level one to three above ground. Onnuri Pharmacy will occupy the entire basement level one, covering 176 square meters (about 53 pyeong). The two companies established a partnership for Pharmacy Beauty collaboration in August.Onnuri Pharmacy is the largest pharmacy chain in South Korea, with a network of over 2,200 franchise locations. It offers wellness products, including pharmacy-exclusive cosmetics and high-performance health supplements.This partnership was initiated in response to the growing trend of consumers prioritizing product functionality and efficacy in the beauty market. The goal is to create a 'one-stop shopping' environment where customers can explore and purchase beauty products, including cosmetics, skincare, fragrances, and pharmacy-exclusive items, all in one location.Musinsa Beauty and Onnuri Pharmacy will collaborate from the product selection stage. They will jointly identify brands and products that meet customer demand from Onnuri Pharmacy's high-performance and inner beauty offerings, based on Musinsa Beauty's customer data and beauty trend analysis.Pharmacists will be on-site to assist customers in selecting products that address their skin concerns and goals. Additionally, there will be dedicated curation zones for hair and scalp care, as well as acne and trouble-specific consultations, providing specialized advice and product exploration services.Through this collaboration, Musinsa Beauty plans to respond to the diversifying demand for K-beauty. With domestic pharmacies becoming popular shopping destinations for foreign tourists seeking high-performance cosmetics, the company aims to expand its global customer reach in Hongdae, a hotspot for the 2030 generation and international visitors.A representative from Musinsa Beauty stated, "As more customers carefully consider product functionality and efficacy, the demand for a professional beauty shopping experience is also increasing. We will enhance our collaboration with Onnuri Pharmacy to provide a broader and more specialized K-beauty shopping experience in one space."Meanwhile, according to the Korea Tourism Organization, foreign tourists' card spending in South Korea reached 2.1222 trillion won in May. Notably, the consumption at pharmacies has surged by 206% compared to the same month last year, as more foreigners purchase regenerative creams and other products after beauty treatments.* This article has been translated by AI. 2026-09-07 14:32:00
  • Seoul Apartment Transactions Shift Away from Gangnam Districts
    Seoul Apartment Transactions Shift Away from Gangnam Districts Due to loan regulations and uncertainties in taxation, transactions for apartments in Seoul have declined, particularly in the Gangnam Districts (Gangnam, Seocho, and Songpa). More than 90% of apartment transactions in Seoul last month occurred outside these areas.On September 7, Ham Young-jin, head of the real estate research lab at Woori Bank, analyzed data from the Ministry of Land, Infrastructure and Transport, revealing that the number of apartment sales in Seoul totaled 2,322 as of the contract date on September 4.Apartment sales in Seoul increased from 5,373 in January to 8,659 in April and 8,962 in May. However, the numbers dropped to 5,289 in June and 5,800 in July, remaining in the 5,000 range for two consecutive months. While the deadline for reporting actual transactions remains until the end of this month, the recovery in transactions is expected to be limited.In April and May, there was a surge in transactions as sellers rushed to list properties before the end of the tax exemption for multiple homeowners on May 9. Following that, a combination of mortgage regulations, total household loan limits, the announcement of the August 3 tax reform plan, and two interest rate hikes led both buyers and sellers to adopt a wait-and-see approach.The decline in transactions has been particularly pronounced for high-priced homes. The proportion of transactions for properties priced between 900 million and 1.5 billion won fell from 31.8% in January to 26.6% in August, while those over 1.5 billion won decreased from 21.07% to 19.08%. In contrast, the share of transactions for properties priced between 300 million and 600 million won rose from 16.97% to 21.32%, and those below 300 million won increased from 3.39% to 5.12%.The share of apartment transactions in the Gangnam Districts dropped from 12.9% in January to 16.1% in May, reaching a yearly low of 9.1% in August. This decline is attributed to high-net-worth individuals also adopting a wait-and-see stance amid uncertainties regarding the tax reform plan.Conversely, mid- to low-priced areas such as Seongbuk and Jungnang experienced relatively smaller declines in transactions. As a result, the proportion of transactions outside the Gangnam Districts rose to 90.9%. The ongoing instability in rental prices and a shortage of listings, combined with lower property prices, have contributed to a greater capacity for utilizing loans in these areas.Ham stated, "Recently, the government announced a plan to raise the basic deduction for comprehensive real estate tax for non-resident homeowners from 900 million won to 1.2 billion won. However, with the final form of the tax reform plan yet to be confirmed and the possibility of further interest rate hikes, the gap in expected prices between buyers and sellers is unlikely to narrow. Therefore, a cooling and contraction in transactions is expected to continue for the time being."* This article has been translated by AI. 2026-09-07 14:24:20