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Korean Air Faces Management Control Concerns as JAL Secures Stake Japan Airlines (JAL) has emerged as a new variable in the management control dynamics of Hanjin Group by acquiring a stake in Hanjin KAL, the holding company of Korean Air. With the gap between Cho Won-tae, chairman of Hanjin Group, and the second-largest shareholder, Hoban Group, narrowing to less than 1 percentage point, there is growing interest in whether JAL will exercise its shareholder rights.According to the airline industry on September 6, JAL entered into a strategic partnership with Korean Air on September 4 and acquired a portion of Hanjin KAL shares. While the specific shareholding percentage and acquisition amount have not been disclosed, it is estimated to be below 5% since no large-scale holding disclosure has been made.Market analysts suggest that JAL's stake acquisition could signify more than just a simple investment. Currently, Cho and related parties hold 20.57% of Hanjin KAL, while Hoban Group has secured 20.15%, leaving a narrow gap of just 0.42 percentage points.Cho's side has already secured a global ally in Delta Air Lines, which holds 14.90% of Hanjin KAL and has maintained a long-term strategic partnership with Korean Air, categorizing it as a friendly shareholder. With JAL now participating as a shareholder in Hanjin KAL, analysts believe it could bolster Cho's position in the event of an intensified management control competition.In contrast, Hoban Group has increased its stake in Hanjin KAL to 20.15% by acquiring an additional 1,132,900 shares through its affiliates in July. Although Hoban Group stated that its purpose for holding the shares was for 'simple investment,' the rapidly decreasing gap with Cho's side has led the market to closely monitor the potential for management control competition.As Hoban Construction aggressively expands its stake in Hanjin KAL, the company has also initiated measures to respond to the influence of voting rights. Hanjin KAL has amended its articles of incorporation to reduce the board size from 'at least 3 and no more than 11' to 'at least 3 and no more than 9.' This move is seen as a strategy to block Hoban's potential entry into the board and the expansion of its voting rights influence.* This article has been translated by AI. 2026-09-06 16:00:20 -
An Se-young Wins Third Consecutive Title at China Masters An Se-young (Samsung Life), the reigning "Queen of Badminton," achieved her third consecutive title at the 2026 Badminton World Federation (BWF) World Tour China Masters (Super 750) on September 6. The world No. 1 defeated Japan's world No. 9, Tomoka Miyazaki, in the women's singles final at the Shenzhen Arena, winning in straight games 2-0 (21-17, 21-6) in just 45 minutes.This victory marks An's third consecutive win at the China Masters, following her triumphs in 2024 and 2025. Notably, she has recorded a "perfect victory" in two consecutive tournaments, not dropping a single game since the World Championships concluded last month, showcasing her peak performance.Additionally, An maintained her dominance over Miyazaki, extending her head-to-head record to 8-0.The first game was tightly contested, with the score tied at 9-9. An seized the lead and capitalized on an opponent's error to score four consecutive points, ultimately winning the first game 21-17.In the second game, An intensified her attack, quickly scoring eight points in a row to widen the gap, finishing the match comfortably at 21-6.This season, An has been exceptional. Since her loss in the All England Open final in March, she has embarked on a 33-match winning streak, claiming victory in 10 tournaments, including team events. Her season record stands at 49 wins and 1 loss, maintaining a remarkable 98% win rate, surpassing her previous record of 94.8% (72 wins, 4 losses) set last year.Looking ahead, An's prospects for the upcoming 2026 Aichi-Nagoya Asian Games, starting on September 19, are promising. She aims to defend her women's singles title, having won both the singles and team events at the 2022 Hangzhou Asian Games. 2026-09-06 15:52:00
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Mayor Kim Sung-je of Uiwang City Praises Employee Development Efforts Mayor Kim Sung-je of Uiwang City praised the city’s efforts on September 6, stating, “Our continuous efforts to identify necessary training for employees in response to the changing administrative environment and to connect individual growth with organizational capability have led to positive evaluations.”On this day, Mayor Kim announced that Uiwang City was selected as the top institution in the '2025 Gyeonggi Province City and County Training Evaluation,' achieving this honor for four consecutive years.The Gyeonggi Province City and County Training Evaluation assesses the training operation results and best practices of 31 cities and counties in the province, aiming to discover excellent cases in public talent development and training.This year, the evaluation process included a preliminary written assessment, which selected the top 10 cities and counties, followed by a final ranking determined through presentations of best practices.Mayor Kim highlighted the 'Uiwang Three-Track Education' program, focused on 'work innovation, organizational integration, and employee growth,' as a best practice that received high praise.In the area of work innovation, training in generative AI and capacity-building for technical public officials enhanced practical skills to respond to the evolving administrative landscape. Additionally, in the organizational integration sector, initiatives like the 'All Employees Together Camp' and the newcomer training program 'Smart Uiwang Life' supported communication and adaptation among staff.In terms of employee growth, the program provided support through guest lectures and tailored competency development initiatives to foster self-directed growth.Notably, Mayor Kim achieved a record of four consecutive awards, following a commendation in 2022 and excellence awards in 2023 and 2024.This recognition reflects Mayor Kim's commitment to linking employee capabilities to organizational competitiveness, ultimately aiming to provide better administrative services to citizens.Citizens have also responded positively. One resident remarked, “As public officials enhance their capabilities, I believe the administrative services that citizens experience will also improve. I hope policies that strengthen training in new areas like AI and promote communication among employees continue.”Another citizen stated, “The result of four consecutive awards seems to reflect Uiwang City’s consistent efforts in public official training and organizational innovation. I hope the changes in administration through education can be felt by citizens.”Meanwhile, Mayor Kim Sung-je emphasized, “We will continue to actively support the enhancement of employees’ job competencies and self-directed growth to lead to better administrative services.”* This article has been translated by AI. 2026-09-06 15:44:00
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New System to Block Financial Transactions After Death Notification The government is set to implement a system that swiftly blocks financial transactions under the name of deceased individuals upon receipt of a death notification. This measure aims to prevent financial incidents involving identity theft and to protect the assets of bereaved families.On September 6, the Financial Services Commission, the Financial Supervisory Service, the Ministry of the Interior and Safety, and the Korea Credit Information Corporation announced that they will launch the 'Rapid Financial Transaction Blocking System for Deceased Individuals' on September 11, involving all financial institutions.Previously, financial companies received death information from the Ministry of the Interior and Safety through the Korea Credit Information Corporation once a month, which could take up to two months for companies to confirm a death and restrict transactions. Additionally, only some banks utilized this system.Under the new system, the Ministry of the Interior and Safety will provide death information to financial institutions daily instead of monthly. Financial companies will be able to block transactions under the deceased's name as soon as the death is confirmed.The scope of application will also expand from banks to include all 4,890 financial companies, such as insurance, credit card, securities, savings banks, and mutual finance. Most financial transactions, except for unavoidable ones like deposits, will be halted once a person is confirmed deceased.Bereaved families will not need to separately request transaction blocking from financial companies. The Korea Credit Information Corporation and financial companies will automatically proceed with the blocking process upon verifying the relevant information.A management system will also be established to prevent the misuse of death information for other purposes. It will be prohibited to use or provide death information to third parties for non-transactional purposes, and transaction histories will be recorded and managed electronically. The Financial Supervisory Service plans to continuously monitor information management and internal control practices.If bereaved families require urgent funds for medical or funeral expenses, they can utilize the banks' 'exception withdrawal' system.The government stated, "We expect this will help protect citizens' assets and prevent fraudulent financial transactions," adding that it will work closely with the Korea Credit Information Corporation and financial companies to minimize inconvenience for bereaved families.* This article has been translated by AI. 2026-09-06 15:44:00
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Government Lowers Credit Card Barriers Amid Rising Interest Rates The rising interest rates for loans to borrowers with low to moderate credit scores are increasing repayment burdens in the credit card industry. In this context, the government is reiterating its commitment to support low-credit borrowers in the second financial sector, prompting credit card companies to adjust interest rates and limits while considering their financial stability.According to the financial sector, President Lee Jae-myung stated in a post on X (formerly Twitter) on September 5 that "2,928,000 people's credit scores have improved, and 38,000 individuals can now use credit cards for the first time." He added, "We will continue to pave the way for recovery so that people do not falter in the face of difficulties."This statement underscores the government's determination to enhance financial accessibility for low-credit individuals. The Financial Supervisory Service has also decided to exclude loans to low-credit borrowers from the total household loan management targets starting in August, encouraging lending to this demographic.However, the interest rates that low-credit borrowers must bear are on the rise. According to the Korea Credit Finance Association, the average interest rate for borrowers with credit scores below 700 has increased for most companies compared to the first quarter. Shinhan Card saw the largest increase, with rates jumping from 10.66% in March to 11.57% in July, a rise of 0.91 percentage points.During the same period, Samsung Card's rates increased from 10.76% to 11.46%, a rise of 0.70 percentage points. Lotte Card and Hyundai Card also experienced increases of 0.47 and 0.37 percentage points, respectively. BC Card and KB Kookmin Card saw increases of 0.28 and 0.07 percentage points, while Hana Card's rate rose by 0.01 percentage points.Interest rates for ultra-low-credit borrowers, those with scores below 600, are also trending upward. Hana Card's rate surged from 10.47% to 12.18%, marking the largest increase at 1.71 percentage points. Samsung Card and Shinhan Card also saw increases of 0.52 and 0.49 percentage points, respectively.The rise in loan rates for low-credit borrowers is attributed to increased delinquency rates and bad debt costs amid economic downturns. If the trend of rising loan rates continues, the already heightened repayment burden may lead to further increases in delinquency rates.In fact, the delinquency burden for credit card companies is growing. As of the end of June, the total delinquency rate for eight major credit card companies was 1.54%, up 0.02 percentage points from the end of last year.Additionally, the rising cost of funding for credit card companies is a concern. The Bank of Korea has raised the benchmark interest rate twice this year, leading to increased borrowing costs for credit card loans. According to the Korea Financial Investment Association's Bond Information Center, the average rate for financial bonds (non-guaranteed, AA+, 3-year bonds) was 4.447% as of September 4, up 0.7 percentage points from four months ago.The credit card industry anticipates that it will have to bear funding burdens while adjusting interest rates for low to moderate credit borrowers. An industry insider stated, "With market interest rates at a high level, there will be challenges in funding for the time being, and we must balance our lending to low to moderate credit borrowers." 2026-09-06 15:40:00
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Surge in Insurance Loans Among Middle-Aged and Seniors Amid Stock Market Boom This year, the increase in insurance policy loans has been concentrated among individuals in their 50s and 60s. This trend is attributed to a growing demand for living expenses around retirement age, coupled with increased investment needs fueled by a booming stock market in the first half of the year.According to data submitted by Lee Jong-wook, a lawmaker from the People Power Party, to the Financial Supervisory Service, the total balance of insurance policy loans from major life insurance companies (Samsung, Hanwha, Kyobo) and non-life insurance companies (Samsung, Hyundai, DB, KB, Meritz) reached 47.9119 trillion won by the end of July, an increase of 1.7933 trillion won (3.9%) compared to the end of last year.Specifically, the balance of life insurance policy loans rose to 33.2042 trillion won, marking a 5.6% (1.7523 trillion won) increase, leading the overall growth. The balance for non-life insurance companies remained around 14 trillion won.By age group, the most significant increase was observed among those aged 60 and older. Their loan balance grew from 11.9377 trillion won at the end of last year to 13.1546 trillion won by the end of July, a rise of 10.2% (1.2169 trillion won). The balance for those in their 50s also increased by 4.5% (8520 billion won) to 19.6701 trillion won. In contrast, the balances for individuals in their 20s, 30s, and 40s decreased by 4.6%, 4.7%, and 1.3%, respectively.Insurance policy loans are a typical form of 'recession-type loans' that allow individuals to borrow against their surrender values without the need for income verification or credit checks. This makes them a popular option for policyholders in need of quick funds.Typically, insurance policy loans see a decrease in balance at the beginning of the year due to increased repayments, but this year has seen a continuous rise since the start of the year. Financial experts attribute this to heightened investment demand resulting from the stock market's strong performance, with the KOSPI index surpassing the 9,000 mark at its peak during the first half of the year.Notably, individuals in their 50s and 60s, who have paid premiums for a longer duration, are likely to have larger loan amounts available, contributing to the increase in insurance policy loans. Additionally, the demand for living expenses due to reduced income after retirement has also influenced the rise in loans among those aged 60 and older.Seo Ji-yong, a professor at Sangmyung University, stated, "Individuals in their 50s and 60s may have increasingly relied on insurance policy loans due to income gaps and urgent financial needs for living and medical expenses after retirement. It is crucial to provide support measures such as repayment counseling, as vulnerable borrowers may face issues like unpaid premiums or policy cancellations." 2026-09-06 15:36:20
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Banks Shift Hiring Focus from New Graduates to Experienced Veterans The hiring strategy in the banking sector is shifting from focusing on new graduates to seeking experienced 'veteran' workers. As banks reduce their workforce due to branch closures and digital transformation, the demand for reemploying retirees with field experience and expertise is rapidly increasing.According to the financial sector on September 6, major banks such as KB Kookmin, Woori, and NH Nonghyup have all begun their hiring processes for the second half of the year. KB Kookmin Bank plans to hire about 160 new employees, while Woori Bank will recruit in the double digits. NH Nonghyup Bank aims to hire 120 new employees at the fifth-grade level. Shinhan Bank and Hana Bank are also expected to announce their hiring plans later this month.However, the overall number of new hires is on the decline. The four major banks—KB Kookmin, Shinhan, Hana, and Woori—reduced their hiring from 1,880 in 2023 to 1,380 in 2024, and further down to 1,280 last year. In the first half of this year, they hired about 540 employees, a decrease of 55 from the 595 hired during the same period last year.It appears unlikely that hiring will significantly increase in the second half of the year. Woori Bank hired 195 employees in the second half of last year but is now projecting a two-digit hiring figure for this year. Even if they assume a maximum of 99 hires, that would be only half of last year's total.Shinhan Bank and Hana Bank have not yet finalized their hiring numbers, but with ongoing branch reductions, they are not expected to pursue large-scale recruitment of new employees as in the past.Banks are focusing more on selecting talent in specific areas rather than simply increasing headcount. Woori Bank has established a new global and specialized division for its second-half hiring. This includes recruiting individuals with overseas experience and language skills, as well as professionals with qualifications such as lawyers, certified public accountants, and tax accountants.Consequently, there is a proactive approach to rehiring 'retired veterans.' Banks are looking to reemploy experienced retirees to utilize them in sales, loan consulting and assessment, and risk management roles.According to data received by Kim Jae-seop's office from the Financial Supervisory Service, from 2020 to May of last year, the number of rehired retirees was 2,053 at KB Kookmin Bank, 1,461 at Shinhan Bank, 821 at Woori Bank, and 447 at Hana Bank. The five major banks, including NH Nonghyup, rehired 574 retired employees in just the first quarter of this year, surpassing half of last year's total rehiring figure of 1,057 within three months.The trend of rehiring is expected to continue in the second half of the year. KB Kookmin Bank is currently conducting a rolling recruitment for retired employees until November 11, with a hiring figure in the double digits.The increase in rehiring retirees is also driven by the ability to utilize skilled labor at relatively lower costs. Kim Sang-bong, a professor of economics at Hansung University, stated, "Rehiring after retirement allows banks to reduce labor costs while leveraging skilled personnel. Rehired workers have the advantage of high field experience and understanding of the job." 2026-09-06 15:36:00
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Korean Won Hits Lowest Exchange Rate in Over a Year The won-dollar exchange rate has fallen to its lowest level in over a year, drawing attention to future currency trends. Increased dollar sales by companies due to strong exports, combined with a strengthening yen, are putting upward pressure on the won. Market analysts predict that the exchange rate could drop further into the low 1300s in the short term.According to the Seoul foreign exchange market on September 6, the won reached the 1340s against the U.S. dollar during trading on September 4. As of 3:30 PM on that day, the exchange rate was 1350.4 won, marking the lowest level since June 30 of last year, when it was 1350.0 won.The exchange rate has shown a sharp decline recently, dropping nearly 20 won over four days from September 1 to 4. The steady supply of dollars from exporting companies, along with the yen's strength, has supported the won's appreciation.In particular, the supply of dollars from exporting companies is a key factor in the exchange rate's decline. Unlike in the past, when exporters typically sold dollars at the end of the month, they are now consistently releasing their dollar holdings into the market.From January to July this year, South Korea's current account surplus reached $223.1 billion, ranking second globally for the first half of the year. Analysts suggest that the ongoing record-high current account surplus, coupled with strong exports, is contributing to the steady influx of dollar sales from companies.The recent rise in the value of the Japanese yen is also seen as a factor supporting the won's strength. The Bank of Japan's (BOJ) potential for further interest rate hikes has led to a stronger yen. Given the correlation between the won and yen, the yen's strength may reduce upward pressure on the won-dollar exchange rate. Market observers are closely watching for the possibility of an additional rate hike by the BOJ this month.Until the first half of this year, the exchange rate had risen to the high 1500s due to strong demand for dollars. This was driven by domestic investors' increased foreign stock investments and foreign investors' profit-taking and portfolio rebalancing in the domestic stock market, which weakened dollar supply. However, the situation has changed recently. While strong exports have increased dollar supply from companies, dollar demand has weakened, leading to greater downward pressure on the exchange rate.Kwon Ah-min, a researcher at NH Investment & Securities, stated, "The recent surge in dollar supply from companies due to strong exports has led to a sharp decline in the exchange rate. We believe the short-term supply-demand balance has shifted in favor of supply."There are also forecasts that the exchange rate could drop further into the low 1300s. The continued strength of exports and South Korea entering a rate hike cycle are seen as supporting factors for the won's appreciation. However, given the recent rapid decline in the exchange rate, there may be a need for a slowdown in the pace of further decreases.Moon Da-woon, a researcher at Korea Investment & Securities, commented, "Considering the current macroeconomic situation in Korea, the low 1300s seems appropriate. Given domestic and external conditions, we expect the exchange rate to drop further to at least the low 1300s by the end of the year, but the pace will likely moderate. For now, we see a high likelihood that the exchange rate will stabilize in the mid to high 1300s after a slight further decline."* This article has been translated by AI. 2026-09-06 15:32:10
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Kang Shin-cheol Addresses Allegations of Fraudulent Apartment Application Kang Shin-cheol, the nominee for Minister of National Defense, addressed allegations of fraudulent apartment applications on September 6 in Seocho-gu, Seoul, stating that while he had been negligent in personal matters, the allegations are untrue.The preparation team for his confirmation hearing sent a message to the Ministry of National Defense press corps, asserting, "The address in question is where Kang was born and raised, and it is a single-family home he received through a proper gift in 1997." They added, "Kang and his family frequently visited and stayed at this location." They emphasized, "Due to the nature of his military career, he had to frequently rotate between remote postings every one to two years. The military residence was merely a 'temporary duty station,' while his owned home in Seoul was the only 'base of life' he could return to in the future." However, he acknowledged, "It is true that I did not carefully examine some administrative procedures, such as aligning my actual residence with my registered address or providing justification for legal exceptions under the Land Compensation Act during my relocations." He also stated, "Neglecting personal matters due to my focus on military duties was a mistake, but there was no intention of deceptive registration or illegality in the application process." Meanwhile, Cheon Ha-ram, acting representative of the Reform Party and a member of the National Defense Committee, held a press conference that day, alleging that Kang had lived in military apartments in Hwacheon County, Gangwon Province, while deceptively registering his address to secure demolition status for a home in Guro-gu, thus obtaining a 'special allocation for demolition residents' for the Seocho-gu apartment. With Kang's confirmation hearing scheduled for September 16, a political showdown between the ruling and opposition parties is anticipated. 2026-09-06 15:32:00
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Rising Home Prices Could Expand Property Tax Base Across Seoul by 2030 As home prices in Seoul continue to rise, a recent analysis suggests that by 2030, properties in non-Gangnam areas could also become subject to the comprehensive real estate tax. According to the analysis, based on the top five price districts in each district, 22 of Seoul's 25 districts, excluding Gangbuk, Geumcheon, and Dobong, are expected to see taxable properties emerge.On September 6, Rep. Shin Dong-wook of the People Power Party revealed a simulation model obtained from KB Kookmin Bank. The model indicates that if Seoul's apartment prices maintain an annual increase of 11%, the number of taxable properties will rise from 78 this year to 101 by 2030.The analysis focused on 125 apartment complexes with a standard size of 34 pyeong across the top five districts in Seoul's 25 autonomous districts.The findings show that even in districts like Gwanak, Nowon, and Jungnang, which currently do not pay the comprehensive real estate tax, taxable properties are expected to appear by 2030. Of the 47 currently exempt properties, 23 are projected to become taxable, including four in Gangseo, four in Gwanak, four in Eunpyeong, three in Seongbuk, two in Jongno, and one each in Nowon and Jungnang.If the upward trend in home prices continues, the comprehensive real estate tax will shift from being limited to high-end apartments in Gangnam to encompassing major complexes across most of Seoul.The number of taxable properties is expected to temporarily decrease following the tax reform, but will rise again as home prices accumulate. The number of non-residential taxable properties is projected to drop from 78 this year to 68 in 2027, before increasing to 82 in 2028, 94 in 2029, and 101 in 2030.The increase in tax burden is expected to be significant. The total tax amount for all 125 complexes is estimated to rise from 58.9 billion won this year to 526.2 billion won by 2030 under non-residential criteria, an increase of 8.9 times. Under residential criteria, it is expected to grow to 334.7 billion won, a 5.7-fold increase.On average, the comprehensive real estate tax per unit is projected to jump from 951,338 won this year to 8,428,401 won by 2030 under non-residential criteria, and to 5,549,778 won under residential criteria.Notably, the increase is particularly pronounced in non-Gangnam areas, where the total tax burden for major complexes in Eunpyeong, Guro, Seongbuk, Gangseo, Dongdaemun, Gwanak, Nowon, and Jungnang is expected to rise from approximately 720,000 won this year to about 40.58 million won by 2030 under non-residential criteria, a staggering 56.6-fold increase.Even if the rate of increase in home prices slows to 5.5% annually, which is half of the recent year's rate, the tax burden is still expected to grow. In this scenario, the number of taxable properties under non-residential criteria is projected to be 82 across 19 districts, with four new taxable properties all located in Gangseo.The total tax amount is estimated to reach 292.6 billion won under non-residential criteria by 2030, approximately five times this year's amount, and 171.9 billion won under residential criteria, a 2.9-fold increase.This simulation incorporates the government's tax reform proposals and amendments. Starting in 2027, the basic exemption will be set at 1.4 billion won for residential properties and 1.2 billion won for non-residential properties, with the fair market value ratio and tax burden cap set at 70% and 150%, respectively.* This article has been translated by AI. 2026-09-06 15:32:00