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  • Chip stocks rebound to support KOSPI
    Chip stocks rebound to support KOSPI SEOUL, September 04 (AJP) -Seoul stocks opened sharply higher Friday as Samsung Electronics and SK hynix pulled out of a two-session slide after remarks from a U.S. Federal Reserve governor cut market-implied odds of an American rate hike this month to roughly a coin flip. The KOSPI, the benchmark index of the Korea Exchange, rose 90.59 points, or 1.4 percent, to 6,670.07 in early trade, while the KOSDAQ, the secondary board for smaller and technology-heavy companies, gained 2.3 percent to 808.31. Breadth was overwhelmingly positive, with 608 stocks advancing against 207 decliners. Foreign investors bought a net 112.1 billion won ($82.6 million), while institutions purchased a net 206.7 billion won. Individual investors sold a net 367.0 billion won. The upside came from Washington. Federal Reserve Governor Christopher Waller said he would be inclined to support holding rates steady if incoming inflation data brought no surprises, pushing down expectations for a rate increase at the Fed's Sept. 15-16 meeting. The probability of a September hike implied by futures fell to 50.4 percent from 63.2 percent a day earlier. Wall Street rallied on the shift. The Dow Jones Industrial Average closed 624.16 points, or 1.18 percent, higher, while the Nasdaq Composite gained 366.23 points, or 1.4 percent. Samsung Electronics rose 1.7 percent to 254,250 won. SK hynix, the leading supplier of high-bandwidth memory for the artificial intelligence server market, gained 2.4 percent to 1,634,000 won. SK Square, SK hynix's largest shareholder, added 1.1 percent to 992,000 won. Oil-sensitive trades also stood out. Refiners climbed as a war premium remained embedded in crude prices amid renewed U.S.-Iran hostilities. S-Oil surged 9.3 percent and GS Holdings gained 5.5 percent. Brent crude has traded around $95 a barrel this week. Airlines were the strongest sector on the main board, gaining 5.2 percent. Hanjin KAL, the holding company of Korean Air, jumped 7.8 percent. Among major decliners, Samsung C&T, the group's construction and trading arm, fell 4.6 percent to 355,000 won. Hyundai Motor rose 1.5 percent to 389,250 won, while Hanwha Aerospace gained 1.3 percent to 1,061,000 won. Elsewhere in Asia, Japan's Nikkei 225 was up 0.2 percent at 64,343.88. The won strengthened against the U.S. dollar, with Hana Bank quoting the currency at 1,356.70 won per dollar, up 1.80 won from the previous close. AJP Takeaways: º KOSPI rises 1.4% as Samsung Electronics and SK hynix rebound from two-session declines. º Fed Governor Christopher Waller's remarks cut September rate-hike odds to roughly 50%. º Foreign and institutional investors turn buyers; refiners and airlines lead broader gains. 2026-09-04 09:41:57
  • National Heritage Agencys 2027 Budget Set at 1.66 Trillion Won to Boost Tourism and Local Revitalization
    National Heritage Agency's 2027 Budget Set at 1.66 Trillion Won to Boost Tourism and Local Revitalization The National Heritage Agency has proposed a budget of 1.66 trillion won for 2027, an increase of 11.2% from the previous year. The budget aims to enhance investments in the preservation and safety management of national heritage while expanding tourism, local revitalization, and international exchanges utilizing these assets.According to the National Heritage Agency, the largest allocation of 691 billion won is designated for the restoration and maintenance of national heritage. Following this, 147.2 billion won is earmarked for the preservation and utilization of palaces and royal tombs, 131.2 billion won for the use of national heritage, 126.6 billion won for education, research, and exhibitions, 100.2 billion won for disaster response related to national heritage, and 62.7 billion won for world heritage and international exchanges.A notable new initiative is the 'Cultural Heritage Stay' program, which will invest 6.1 billion won to allow visitors to experience cultural heritage by staying in designated traditional houses. The plan includes upgrading accommodation facilities at ten designated houses and establishing a unified brand and service standards. Additionally, content will be developed to connect these stays with surrounding national heritage sites, aiming to create high-quality tourism destinations.The agency will also allocate 1.5 billion won for the 'Cultural Heritage Rest Project,' which aims to utilize historical sites and natural environments as relaxation spaces for the public. This project will create leisure areas in five locations across the country that integrate national heritage with nature.Other budget allocations include 1 billion won for the regeneration of heritage-based attractions, 1.7 billion won for promoting the 'K-Cultural Tourism Brand' utilizing historic trails, and 1 billion won for revitalizing traditional folk villages. An additional 1 billion won will be invested in establishing an intelligent disaster response system for national heritage using physical AI and robotics.The budget for the preservation and safety management of national heritage has also seen significant increases. The restoration budget has risen to 520.1 billion won, an increase of 84.8 billion won from the previous year. The budget for building preservation foundations has increased by 35.1 billion won to 170.9 billion won, and disaster safety management has risen by 3.7 billion won to 35.3 billion won. The budget for the establishment of a representative product hall at Gyeongbokgung Palace has been increased by 10.2 billion won to 11 billion won.Efforts will also be made to strengthen support for the relatively underfunded areas of natural and intangible heritage. This includes 3.3 billion won for the construction of the National Natural Heritage Center, 16 billion won for a branch of the National Intangible Heritage Center, and 16.6 billion won for the establishment of a Children's Intangible Heritage Center.Projects aimed at expanding access to national heritage opportunities, which are currently concentrated in the metropolitan area, will also be pursued. This includes 9.9 billion won for a national heritage visitation campaign, 20 billion won for the maintenance of historical and cultural zones, and 8.2 billion won for the development of historic cities. Additional funding includes 1.5 billion won for regional exhibitions of royal heritage and 7 billion won for national heritage education for socially vulnerable groups.International projects aimed at utilizing national heritage as a national brand resource will also be expanded, with 10.1 billion won allocated for the establishment of a UNESCO World Heritage International Interpretation Center and 9.1 billion won for cultural heritage development cooperation (ODA).The budget proposal will undergo review and approval by the National Assembly before being finalized. 2026-09-04 09:40:00
  • President Lee Invites Civil Society Representatives to Discuss Human Rights and Environment
    President Lee Invites Civil Society Representatives to Discuss Human Rights and Environment President Lee Jae-myung invited representatives from civil society to the Blue House on September 4 to gather their opinions on pressing issues related to human rights, the environment, agriculture and fisheries, peace, and historical matters. According to the Blue House, President Lee will preside over a meeting with civil society representatives this morning. The gathering aims to listen to the voices of civil society as the government enters its second year in office and to incorporate their feedback into policy-making. During the meeting, President Lee is expected to hear about the challenges faced by activists in various fields and their policy recommendations. Attendees from civil society include Lee Seung-hoon, chair of the Civil Society Organizations Coalition, and Joo Se-jun, policy chair of the Korean Progressive Alliance. The Blue House noted that the participants are primarily frontline practitioners rather than representatives or senior figures from their organizations.The meeting will also include the Chief of the Listening Integration Office and the Secretary for National Listening. Previously, in July of last year, President Lee met with civil society elders, including Father Ham Se-woong and Professor Emeritus Baek Nak-cheong of Seoul National University, to seek their advice on national unity, inter-Korean relations, and cultural policies. This upcoming meeting is interpreted as a shift towards direct communication with frontline practitioners.* This article has been translated by AI. 2026-09-04 09:36:00
  • Editorial: Relocate public institutions, but get the order right
    Editorial: Relocate public institutions, but get the order right Move, merge or disappear. Hundreds of South Korean public institutions and their employees still do not know which fate awaits them. The government on Thursday put roughly 350 public institutions based in the Seoul metropolitan area under review for relocation while separately unveiling a sweeping restructuring plan that would reduce the number of public entities and subsidiaries by 109 through mergers, consolidation and other changes. Yet which institution will move where — and when — will not be decided until the fourth quarter. Relocation is to begin in 2027. The government says it wants to minimize the number of institutions allowed to remain in the capital region and move quickly, even using rented buildings rather than waiting for permanent headquarters to be built. What remains missing is an equally clear institution-by-institution standard and, more importantly, the sequence in which restructuring and relocation will take place. That is not an argument for delaying relocation itself. Moving more public functions and quality jobs out of the overcrowded Seoul metropolitan area is necessary if South Korea is serious about correcting the country's increasingly lopsided economic geography. Nor should the government retreat simply because unions object, or compromise by parceling out a few institutions to every region. The government's stated goal of clustering institutions with related functions around existing innovation cities and linking them with local industries and universities is also sound. Properly executed, public institutions can serve as anchors for regional business ecosystems rather than isolated government compounds. The problem is that there is still too little in the "second" relocation to show how the government will avoid the shortcomings of the first. Linking public institutions with universities and local industries, improving living conditions and building self-sustaining regional hubs are not new promises. They were central ambitions of the first innovation-city program as well. That first relocation did produce results. Roughly 48,000 public-sector employees moved outside the capital region, innovation-city populations increased and regional hiring expanded. But the National Assembly Budget Office's latest assessment also shows what went wrong. The projects it examined were delayed by an average of 28.6 months from their original schedules and generated an additional 645.6 billion won ($465 million) in costs. The rate of employees relocating with their families reached only 71 percent, while actual occupancy of industry-academia-research cluster sites stood at just 56.6 percent. Buildings and employees moved, but families and businesses proved harder to transplant. For the next round of relocation, the government is adding another layer of complexity by combining relocation with wholesale institutional restructuring. Merging agencies with overlapping functions before clustering them around industries that fit a region could produce stronger institutions and more credible regional growth centers. But getting the order wrong could make the second relocation more disruptive than the first. If an institution is assigned to a city only to be merged or abolished soon afterward, headquarters and personnel may have to be reorganized again. A region that celebrates winning an institution could find that much of its function disappears after consolidation. Employees could be required to make life-changing decisions before even knowing what organization they will ultimately work for. The government has announced both reforms, but it has not sufficiently explained how the two will intersect. It should make clear whether functional restructuring comes first, whether relocation decisions will follow, or how the two processes will be coordinated before regional assignments are made. The uneven pace among institutions makes transparency still more important. Decisions on the Financial Services Commission, the Financial Supervisory Service and state-run financial institutions have effectively been pushed into the fourth quarter. The Korean Financial Industry Union is set to stage a general strike Friday, with opposition to unilateral relocation of financial institutions among its key demands alongside a 4.5-day workweek and higher wages. The union argues that finance depends unusually heavily on concentrations of skilled workers, regulators, companies and market networks and that forcibly moving headquarters could weaken policy-finance functions. Public-sector employees cannot reject a national relocation policy simply because moving is inconvenient, nor should the intensity of opposition from a particular organization determine how quickly government policy applies to it. But neither can the government answer legitimate concerns with little more than telling them to go because balanced development is important. The government must publish consistent criteria explaining why one institution should move and another should stay, how the special requirements of industries such as finance will be assessed, and how restructuring decisions will affect relocation. Otherwise, institutions with the strongest unions or political connections will inevitably appear to have more influence over the timetable. While the government spends the next several months studying the issue, regional governments will launch increasingly aggressive campaigns to attract institutions and agencies in Seoul will assemble arguments for remaining there. Employees and their families face a more personal calculation. They must make decisions about homes, children's schools, spouses' jobs and care for elderly parents without knowing whether their workplace will move, merge with another institution or cease to exist in its current form. The government has presented principles for the second relocation. What it has not yet presented are convincing remedies for the failures exposed by the first. Speed matters. So does determination. But speed without sequence risks creating precisely the delays, additional costs and resentment the government says it wants to avoid. If the fourth quarter produces little more than a table matching institutions with cities, the second relocation will amount to a larger and faster version of the first. Balanced development cannot be measured simply by how many headquarters leave Seoul. It will be judged by whether families stay, businesses follow, skilled workers remain and regional economies are stronger years after the moving trucks have gone. Before ordering hundreds of institutions onto the road, the government should show where it is taking them — and what it intends to build when they arrive. 2026-09-04 09:23:13
  • Western Business Leaders Pay Premiums for Tours of Chinese Factories
    Western Business Leaders Pay Premiums for Tours of Chinese Factories Western business leaders are increasingly visiting factories in China. A surge in foreign scientists and business executives seeking to tour Chinese factories has driven up participation fees and ticket prices, according to a commentary by the state-run Global Times on September 4. Citing a Reuters report, the Global Times noted that applications for a five-day factory tour program, with fees reaching as high as $15,000, have surged.The free tours of the Xiaomi Motors factory in Beijing are allocated through a lottery system, with resale tickets reportedly trading for as much as $300 (approximately 420,000 won) on second-hand platforms. The Global Times reported that the Beijing Xiaomi Motors factory produces a completed vehicle every 76 seconds, and since opening, it has welcomed over 250,000 visitors from more than 70 countries. There was even a case where 10,000 people applied for just 20 spots on the tour list.The Xi'an factory of Geely Automobile boasts a 100% automation rate in key processes such as pressing, welding, and painting, with a new car rolling off the line every minute. Demonstrations of humanoid robots in Hangzhou have become a staple in the itineraries of visiting heads of state. Organizers of the tours stated, "Companies from various countries are competing with Chinese firms in the global market and are participating in on-site visits to witness the realities of China."According to the Global Times, one tour organizer indicated that about half of the participants are from Southeast Asia, and since late 2025, several delegations from European companies have also begun to visit. In Shenzhen, the number of foreign tourists entering the city increased by 70% last year, and by August 4 of this year, over 5 million foreign entries and exits through the Shenzhen customs area had been recorded. An anonymous U.S. manufacturing consultant noted that on-site workers are largely unconcerned about the political climate, and American robotics companies continue to purchase Chinese components in large quantities.The Global Times reported that the number of foreign tourists visiting China reached 35.17 million in 2025, a 30.6% increase compared to the previous year, and bookings for "factory tour" travel packages this summer have surged more than ninefold compared to the same period last year. The Chinese government is also promoting industrial tourism. In May, seven ministries, including the Ministry of Culture and Tourism and the Ministry of Industry and Information Technology, jointly announced measures to support the development of industrial tourism. Currently, China allows visa-free entry for citizens from 50 countries.* This article has been translated by AI. 2026-09-04 09:20:00
  • Hyundai Capital Issues 350 Billion Won Green Bonds to Support Eco-Friendly Vehicles
    Hyundai Capital Issues 350 Billion Won Green Bonds to Support Eco-Friendly Vehicles Hyundai Capital has issued green bonds worth 350 billion won to expand financial support for eco-friendly vehicles, including electric and hydrogen cars.On September 4, Hyundai Capital announced the issuance of the green bonds in accordance with the K-Taxonomy guidelines. The K-Taxonomy is a classification system for green finance established by the government in 2022 to promote green finance in South Korea. With this issuance, Hyundai Capital's cumulative issuance of environmental, social, and governance (ESG) bonds in both domestic and international markets has reached 10.8 trillion won.The bonds consist of 250 billion won in 3-year bonds and 100 billion won in 5-year bonds. The issuance rates were set at 2 basis points (1 basis point = 0.01 percentage points) lower than the average rates from private bond rating agencies for the 3-year bonds and 1 basis point lower for the 5-year bonds.NH Investment & Securities and KB Securities served as the lead underwriters, with Kiwoom Securities, Korea Investment & Securities, iM Securities, and Mirae Asset Securities participating as joint underwriters.Hyundai Capital plans to use the funds raised from this bond issuance to support financing for eco-friendly vehicles, including electric and hydrogen cars. The company is increasing the proportion of green assets within its automotive finance portfolio in line with the Hyundai Motor Group's expansion of eco-friendly mobility.Lee Yong-seok, Chief Financial Officer of Hyundai Capital, stated, "As the number of customers purchasing eco-friendly vehicles, including electric cars, continues to rise, the proportion of green assets within our overall automotive finance portfolio is steadily increasing. We will continue to expand sustainable eco-friendly financial products and services."* This article has been translated by AI. 2026-09-04 09:16:10
  • Korea Investment & Securities Raises Target Price for Silicone Two
    Korea Investment & Securities Raises Target Price for Silicone Two Korea Investment & Securities announced on September 4 that it has raised its target price for Silicone Two from 60,000 won to 65,000 won, citing attractive valuations and strong performance expectations. The firm maintained its 'buy' rating.Kim Myung-joo, a researcher at Korea Investment & Securities, stated, "While there may be a healthy correction in the cosmetics sector in September, Silicone Two's attractive valuation makes it a safe investment within the sector." He added, "Although shipping costs have recently increased, the proportion of shipping costs relative to Silicone Two's revenue in the third quarter is expected to be similar to that of the second quarter, due to inventory accumulated in the second quarter, which may lead to a decrease in shipping volume for the third quarter."In the second quarter, the U.S. accounted for 19.2% of Silicone Two's total revenue. The company's gross profit margin (GPM) for the second quarter improved by 2 percentage points compared to the previous quarter, with over 1 percentage point attributed to the strong dollar and increased sales in the U.S.Sales of Silicone Two's cosmetics are expected to rise in Europe during the third quarter. Kim noted, "This year, the entry of Korean cosmetics into offline channels in Europe has begun in earnest," and added, "Demand for Korean cosmetics in the European market is likely to continue to rise steadily, with Silicone Two likely to secure new clients, including distribution channels under CVC Capital such as Douglas."However, exchange rates are seen as a variable. Kim stated, "Thanks to the steadily increasing number of clients, Silicone Two's performance is expected to remain solid in the second half of the year," but cautioned that a sustained strengthening of the won could negatively impact the company's results.* This article has been translated by AI. 2026-09-04 09:16:10
  • President Lee Directs Labor Ministry to Investigate Possible Illegal Activities by Construction Unions
    President Lee Directs Labor Ministry to Investigate Possible Illegal Activities by Construction Unions President Lee Jae-myung announced that he will instruct the Ministry of Employment and Labor to investigate possible illegal activities occurring at construction sites. On the morning of September 4, President Lee shared a post on his X (formerly Twitter) account, stating that construction companies are suffering due to illegal activities and work disruptions by construction unions, while the government has not responded adequately. He said, "We need to determine whether the activities occurring at construction sites fall within the legitimate exercise of labor rights or are illegal and unjust actions based on specific cases." He added, "I will ask the Minister of Labor to check for possible illegal activities at construction sites, and I would appreciate it if you could send any specific cases to the Minister's office." President Lee emphasized that the government aims to assess the situation without bias toward either labor or management. He stated, "Both the Minister of Labor and I come from labor backgrounds, but we will not unilaterally favor workers. Just as we appoint business leaders in industrial sectors, we are committed to finding a fair and reasonable balance in labor-management relations." Meanwhile, President Lee met the day before with Kim Dong-myung, Chairman of the Korean Confederation of Trade Unions, and Yang Kyung-soo, Chairman of the Korean Trade Union Confederation, to discuss labor issues, including mega-projects and social dialogue. 2026-09-04 09:16:10
  • KOSPI Rises Over 1% as U.S. Interest Rates Stabilize and Tech Stocks Gain
    KOSPI Rises Over 1% as U.S. Interest Rates Stabilize and Tech Stocks Gain The KOSPI opened with a rise of over 1% as U.S. long-term interest rates stabilized and the New York stock market showed strength. Both foreign and institutional investors are contributing to the index's increase.As of 9:08 a.m. on September 4, the KOSPI was trading at 6,667.50, up 88.02 points (1.34%) from the previous trading day. The index started at 6,654.36, up 74.88 points (1.14%), and has since expanded its gains.On the previous night, the New York stock market rose for the second consecutive day as concerns over a September interest rate hike by the U.S. Federal Reserve eased. On September 3 (local time), the Dow Jones Industrial Average increased by 1.18%, while the S&P 500 and Nasdaq rose by 1.06% and 1.40%, respectively.In the securities market, individual investors sold a net 473.8 billion won, while foreign and institutional investors bought a net 251 billion won and 210.1 billion won, respectively.Among the top market capitalization stocks, Samsung Electronics (1.90%), SK Hynix (2.44%), SK Square (1.53%), Samsung Electro-Mechanics (2.30%), Hyundai Motor (1.30%), and Samsung Biologics (0.07%) saw gains, while LG Energy Solution (-0.27%), KB Financial (-1.01%), and Samsung C&T (-3.76%) experienced declines.At the same time, the KOSDAQ index was trading at 804.65, up 14.44 points (1.83%) from the previous trading day. The index started at 802.32, up 12.11 points (1.53%), and has also increased its gains.In the KOSDAQ market, individual and institutional investors sold a net 47.6 billion won and 2.5 billion won, respectively, while foreign investors bought a net 54.3 billion won.Among the top KOSDAQ stocks, Alteogen (2.12%), EcoPro (0.98%), EcoPro BM (1.03%), Rainbow Robotics (5.04%), JUSUNG Engineering (2.50%), IOTech (5.50%), Wonik IPS (3.14%), Rino Industry (2.18%), and Simtech (1.02%) all showed upward trends.Market analysts noted the need to monitor macro variables such as the U.S. August employment report and movements in the yen. However, they also viewed the recent stabilization of U.S. interest rates and the attractive valuation of the domestic stock market as positive factors.Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic stock market is expected to open higher due to the dovish remarks from Fed Governor Waller, the decline in U.S. interest rates, and the strong performance of KOSPI 200 night futures. During the day, investors will likely focus on macro variables such as the U.S. August employment report and the direction of the yen, transitioning to a sector rotation market."She added, "As the surge in U.S. market interest rates stabilizes, it is important to consider the possibility that the domestic supply and demand base will normalize over time, leading to a sustained upward trajectory in market lows."* This article has been translated by AI. 2026-09-04 09:16:00
  • KB Financial Group Revamps 20-Year Golf Tournament with Golden Life Championship
    KB Financial Group Revamps 20-Year Golf Tournament with 'Golden Life Championship' KB Financial Group announced that it will host the '2026 KB Financial Golden Life Championship,' a major KLPGA Tour event, from September 10 to 13 at Blackstone Golf Club in Icheon. The total prize money is set at 1.5 billion won, with the winner receiving 270 million won. Originally established in 2006 as the 'KB Financial Star Championship,' the tournament will be rebranded as the 'KB Financial Golden Life Championship' starting this year. A total of 120 top domestic players are expected to participate in this year's event. KB Financial will operate the 'KB Golden Life Village' at the tournament venue, featuring eight subsidiaries including KB Kookmin Bank, KB Securities, KB Insurance, KB Kookmin Card, and KB Life Insurance. The village will offer a total care solution for seniors, covering everything from retirement preparation to post-retirement living. A 'Kids Water Zone' will also be set up for family attendees, featuring activities such as drone and bubble experiences, water gun games, and relaxation areas. Additionally, a community support program will be implemented. For every successful tee shot at the fifth hole, 2 million won will be accumulated, with a goal of raising up to 100 million won to support youth preparing for independence. At the 17th hole, 20 kilograms of rice from Icheon will be donated for each successful shot, aiming to provide a total of 3,000 kilograms to multicultural families. A KB Financial representative stated, “We aim to carry on the history and tradition of the tournament over the past 20 years while launching a new event that both players and spectators can enjoy together.”* This article has been translated by AI. 2026-09-04 09:16:00