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Tax on Cryptocurrency Gains Over 2.5 Million Won to Begin Next Year Starting next year, individuals who earn a certain level of income from cryptocurrency investments will be subject to taxation. Ahead of the implementation of the long-delayed virtual asset tax, a discussion on the tax system is set to take place in the National Assembly.On September 3, the National Assembly announced that Democratic Party lawmaker Moon Jin-seok will host a "2027 Virtual Asset Tax System Review Forum" at 10 a.m. in the National Assembly's member office building in Yeouido, Seoul. The forum is organized by the Digital Asset Exchange Alliance (DAXA) and the Korean Tax Law Association.According to the current income tax law, the taxation of virtual assets will take effect on January 1, 2027. Income generated from the transfer or lending of virtual assets will be classified as other income and taxed separately.Taxes will not be levied on the total amount received from selling virtual assets. Instead, the taxable income will be calculated by subtracting the acquisition cost and transaction fees from the proceeds of the transfer or lending. After summing the annual profits and losses, a basic deduction of 2.5 million won will be applied. The remaining amount will be taxed at a rate of 20%, resulting in an effective tax rate of 22% when local income tax is included.For instance, if an individual generates 10 million won in income from virtual asset transactions after deducting necessary expenses, 7.5 million won will be subject to tax after the 2.5 million won deduction. This would result in a tax of 1.5 million won, plus an additional 150,000 won in local income tax, totaling 1.65 million won.Conversely, if annual income from virtual assets is below 2.5 million won, it falls within the basic deduction range, and no tax will be incurred. If multiple transactions occur, they will not be taxed individually; instead, the annual profits and losses will be aggregated. Tax filings must be completed during the comprehensive income tax reporting period in May of the following year. Therefore, the first tax filing for virtual asset income generated in 2027 will be due in May 2028.For virtual assets held before the end of this year, special provisions for determining acquisition costs will apply. For assets held before January 1, 2027, the greater of the actual acquisition cost or the market value as of December 31, 2026, will be recognized as the acquisition cost. This measure aims to prevent taxation on unrealized gains that occurred before the tax implementation.The government currently maintains its position to proceed with the tax as scheduled next year. Deputy Prime Minister and Minister of Economy and Finance Ko Yoon-cheol stated during a National Assembly meeting on July 29, "As of now, we are pushing forward with the tax implementation as planned for next year." He added, "We will implement it next year and make adjustments as necessary based on the experience gained."However, there are also proposals in the National Assembly to abolish or further delay the virtual asset tax. Lawmaker Song Eon-seok of the People Power Party introduced a bill in March to remove the taxation provisions on virtual asset income, which was submitted to the National Assembly's Finance and Economy Planning Committee in July. Additionally, lawmaker Jeong Seong-guk proposed a bill last month to postpone the tax implementation date from January 2027 to January 2030. As a result, whether the tax will be implemented as currently planned next year or adjusted during the National Assembly discussions remains a key issue.* This article has been translated by AI. 2026-09-03 08:16:00 -
KOSPI Stalls at 7,000 Points Amid Selling Pressure and Rising Rates ◆Aju Economy Major News▷'KOSPI Stalls at 7,000 Points' Amid Selling Pressure and Rising Rates- On September 2, the Korea Exchange reported that the KOSPI closed at 6,562.72 points, down 273.08 points (3.99%) from the previous trading day. After attempting to break the 7,000-point mark for two consecutive days, the index fell due to renewed clashes between the U.S. and Iran, which negatively impacted U.S. markets.- The KOSPI 200 Volatility Index (VKOSPI) recorded 43.37, a decline of about 46.3% compared to the first trading day of last month (80.78). The VKOSPI peaked at 82.05 on August 4 but has steadily decreased, falling into the 40s for the first time since mid-April by the end of last month.- Analysts attribute the KOSPI's underperformance to several factors. One key issue is the selling pressure from individual investors. According to Kiwoom Securities, the net buying amount from individual investors at the 7,000-point level is estimated to be around 87 trillion won.- This significant selling pressure is said to create a structure where selling volumes emerge to recover losses or principal whenever the index rises.- There are also concerns regarding foreign investors' buying capacity. As of September 1, foreign ownership in the KOSPI market reached 19.70%, marking a record high during the reporting period. Analysts interpret this as a sign of dwindling buying capacity.- Additionally, the rise in long-term U.S. Treasury yields is seen as a contributing factor, exerting downward pressure on the stock market.◆Major Reports▷Inflation as Gravity, Transmission as Centrifugal Force - With soaring commodity prices, low oil inventories, and an ongoing war, supply-side inflationary pressures continue. Long-term interest rates are also reflecting this, remaining high.- In September, measures for interest rate stabilization are expected, but KB Securities has suggested sectors resilient to inflation, such as energy and materials, in case the effects are weak.- A reference point is 2021, when oil prices rose from around $40 at the end of 2020 to $80 in 2021, leading to initial pressure on producer prices, which began to affect consumer prices in 2022.- Sectors that successfully defended profit margins by passing costs onto prices during that period included transportation, energy, chemicals, steel, batteries, machinery, and retail.- These sectors demonstrated resilience against supply shocks, particularly those that maintained profitability until oil prices surpassed $120 in 2022.◆Key Announcements After Market Close (September 2)▷Daemyung Energy: "Acquired additional shares of Gokseong Green Wind Power for 18.6 billion won"▷Duksan Neolux: "Acquired additional shares of Canopus Holdings for 71.5 billion won"▷U.S. asset management firm that purchased over 5% of Shinhan Financial: "Positive evaluation of value-up"◆Fund Trends (as of September 1, excluding ETFs)▷Domestic Equity: +270.9 billion won▷Overseas Equity: +157.5 billion won◆Today's Schedule (September 3)▷China: Racing Dog Services PMI (August)▷U.S.: ISM Services Index (August), Non-Farm Productivity, Unit Labor Costs (Q2)* This article has been translated by AI. 2026-09-03 08:08:10
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U.S. Commerce Secretary Warns of Tariffs on Semiconductor Imports U.S. Commerce Secretary Howard Lutnick hinted at the possibility of imposing tariffs on semiconductor products. His plan aims to encourage global companies to invest in U.S. semiconductor manufacturing by alleviating tariff burdens for those that build factories in the country.In an interview with CNBC following the G20 Innovation Ministers' meeting in Chapel Hill, North Carolina, on September 2, Lutnick stated that the tariff policy would be "targeted and measured."He explained, "If you produce in the U.S., you won’t pay tariffs, but if you don’t, you must be prepared to pay the price to access the greatest market in the world." Lutnick confirmed reports that the tariffs on semiconductors would be 'high-intensity' and linked to investments in U.S. semiconductor manufacturing, saying, "That is exactly right."He noted that this approach would be similar to the one used by the Trump administration in the pharmaceutical industry, which currently offers tariff reductions to companies that produce innovative drugs in the U.S. and implement Most-Favored-Nation pricing.The Trump administration began imposing a 25% tariff on certain advanced semiconductors in January, indicating the potential for expanding the scope of tariffs to include a broader range of semiconductor products.Earlier, Politico reported, citing sources, that the U.S. government is considering significantly expanding the range of products subject to semiconductor tariffs, potentially including laptops, gaming consoles, and data center servers that contain semiconductors.The report also mentioned that the government is exploring options to set tariff rates and import quotas by country and apply country-specific guidelines to major semiconductor manufacturers.Lutnick's comments are seen as a strategy to pressure global semiconductor manufacturers to invest in the U.S. He noted that approximately $1.2 trillion in investment commitments have already been made for semiconductor production in the U.S., citing investments from Taiwan's TSMC and U.S.-based Micron as examples of "how the Trump tariff policy is working."Lutnick also revealed that the Taiwanese government is expected to announce plans for an additional $20 billion to $30 billion investment in the U.S. next week. 2026-09-03 07:56:00
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Six Missing After Tugboat Capsizes Off Busan Search efforts for six crew members missing after a tugboat capsized off the coast of Busan have so far been unsuccessful, despite overnight operations by the coast guard.According to the Busan Coast Guard, search operations were conducted from 7 p.m. the previous day until 6 a.m. today, utilizing flares, but no missing persons were located.The area where the tugboat A capsized (25 km wide and 12 km long) was divided into 15 zones, with 19 vessels deployed, including 11 coast guard ships, four navy ships, and four from the Busan city and fire department.Approximately 270 flares were used during the nighttime search (30 from the coast guard and 240 from the air force). An unmanned underwater vehicle (ROV) from the navy's Gwangyang was also deployed for underwater searches.Three aircraft, including one from the coast guard and two from the air force, participated in the search.While the sea temperature is relatively high, strong winds and currents have complicated the search efforts.According to international maritime search and rescue guidelines, the maximum survival time for missing persons in maritime accidents is over 40 hours when the sea temperature is above 20 degrees Celsius. As of the previous afternoon, the sea temperature near Oryukdo was recorded at 25.1 degrees.The Busan Coast Guard reported that at approximately 1:29 p.m. today, the 286-ton tugboat A capsized about 9 km east of Oryukdo.When discovered, the A was overturned next to a container ship B, with part of its hull submerged.There were eight crew members on board, including six South Koreans and two Indonesians. One Indonesian crew member was rescued by a nearby merchant vessel, while one South Korean was found unconscious inside the A and was transported to a hospital, where he later died.* This article has been translated by AI. 2026-09-03 07:44:00
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Trump Highlights South Korea and Japan in Alaska LNG Project Discussion On September 2, President Donald Trump once again mentioned South Korea and Japan in relation to the Alaska liquefied natural gas (LNG) project.According to the Washington Times, Trump told reporters at the White House, "Many countries, including Japan and South Korea, are going to Alaska to load fuel and oil and to build pipelines, among other things."His comments came as he announced plans to visit Alaska to support Republican candidate Dan Sullivan, who is running for a third term in the U.S. Senate.Trump stated, "I will do everything I can to ensure a great senator is re-elected in Alaska. No one has helped Alaska more than Donald Trump. We have invested billions of dollars and created trillions in value." He then referenced South Korea and Japan's involvement in the Alaska project.Earlier, on January 20, Trump had also discussed the trade agreement between the U.S., South Korea, and Japan, mentioning the "Alaska pipeline project to export natural gas to Asia." The Alaska LNG project is one of Trump's key policy initiatives.At that time, Trump emphasized, "By reaching agreements with South Korea and Japan, we secured unprecedented levels of funding for this project." This was in reference to South Korea's commitment to invest $350 billion and Japan's $550 billion in the U.S. in exchange for reducing mutual tariffs from 25% to 15%. The Trump administration has suggested the possibility of utilizing South Korean and Japanese investments for this project.The project involves transporting natural gas produced in Alaska's North Slope region through a newly constructed pipeline of approximately 1,300 kilometers to Nikiski, a deep-water port near Anchorage, where it will be liquefied and supplied to demand centers in Asia and beyond. 2026-09-03 07:24:00
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Survivor of Capsized Tugboat in Busan Describes Escape An Indonesian crew member rescued from a capsized tugboat off the coast of Busan recounted the harrowing experience.On September 2, the crew member, identified as A, arrived at the Busan Maritime Police's dedicated dock. When asked by reporters about the incident, he said, "I was cooking, and I quickly left the kitchen to escape." A reportedly stayed on the stern of the vessel after it overturned.He was later spotted by a nearby cargo ship, which lowered a ladder for him to climb aboard and be rescued.A mentioned, "I feel fine, but I'm shaking," adding that only the second engineer followed him during the escape. He noted that while he was on the boat, the second engineer fell into the sea.Along with A, a 50-year-old South Korean man was found unconscious inside the tugboat and was transported to a hospital, where he later died.According to the Busan Maritime Police, the tugboat, identified as A, capsized around 1:29 p.m. approximately 9 kilometers east of Oryukdo.When discovered, the tugboat was overturned next to a container ship, with part of its hull submerged.There were a total of eight crew members on board, including six South Koreans and two Indonesians.* This article has been translated by AI. 2026-09-03 07:08:00
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U.S. Stocks Rebound as Treasury Yields Stabilize After Recent Surge The U.S. stock market closed higher on September 2, local time, as the recent surge in U.S. Treasury yields peaked during the day and then retreated, marking a rebound after four consecutive days of decline.On the New York Stock Exchange, the Dow Jones Industrial Average rose by 295.07 points (0.56%) to finish at 50,061.95. The S&P 500 gained 35.13 points (0.46%) to close at 7,666.60, while the Nasdaq Composite increased by 118.05 points (0.45%) to end at 26,217.82.Semiconductor stocks led the gains, with AI chip leader Nvidia rising 3.2%. Memory chip maker Micron Technology climbed 2.4%, and Qualcomm increased by 2.0%.The yield on the U.S. 10-year Treasury note reached a high of 4.818%, the highest level since November 2023, before gradually decreasing to around 4.78%. Analysts noted that the recent spike in Treasury yields appeared to be stabilizing, which helped improve investor sentiment.International oil prices continued to rise amid escalating military tensions between the U.S. and Iran, although the increase was more limited compared to recent surges. October West Texas Intermediate (WTI) crude futures settled at $91.01 per barrel, up 0.88% from the previous trading day. November Brent crude futures closed at $95.63, a 1.04% increase.The U.S. Department of Energy reported on August 31 that oil shipments through the Strait of Hormuz reached a record high of 17 million barrels since the outbreak of the Iran conflict, easing some concerns about supply chain disruptions.Jay Hatfield, CEO of Infrastructure Capital Advisors, told CNBC, "The rise in oil prices has peaked, which likely contributed to today's slight market rebound." He also predicted that the recent increase in oil prices may not last long, forecasting a decline in prices over the next six months as non-OPEC production increases and alternative oil transport routes are developed. 2026-09-03 06:52:00
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Trump: Iran Strikes Won't Last Long Amid November Elections President Donald Trump stated on September 2 that the recent military operations against Iran "won't last too long."According to Reuters, Trump made the remarks during a press briefing at the White House in response to questions about the duration of the renewed strikes against Iran. He said, "I don't know how much longer Iran can endure. But it doesn't matter how long it is." Trump emphasized, "We launched a strong attack on them last night. We destroyed all the new defensive and offensive equipment they were trying to establish along the Strait of Hormuz. We are ready to strike again whenever we want." He also claimed that Iran was attempting to deploy mines in the strait, which the U.S. destroyed, and that Iran was trying to restore radar and missile systems, which also became targets of U.S. attacks.The U.S. military conducted airstrikes against Iran on August 30, marking the first such action in nearly a month, followed by additional strikes on September 1. Iran has attempted retaliatory attacks against U.S. forces, escalating military tensions in the region.Amid these developments, there are efforts within the White House to prevent further escalation of the conflict with Iran ahead of the November midterm elections.On September 2, Reuters reported that the White House is pursuing a strategy to manage the conflict with Iran relatively "quietly" until the midterms. This approach is seen as a way to prevent the Iran conflict from becoming a liability for the Republican Party, which is fighting to maintain a narrow majority in both the House and Senate.Key advisors to Trump, including Vice President JD Vance and Secretary of State Marco Rubio, are reportedly focusing on strengthening economic sanctions and pressure against Iran rather than expanding military responses for the time being.However, there are concerns that if Iran continues intermittent attacks against the U.S. or its Gulf allies, the U.S. may face pressure to retaliate. This raises uncertainty about whether escalation can be contained until November. Notably, Trump has frequently changed his stance, leaving open the possibility of expanding military operations depending on the situation. 2026-09-03 06:24:00
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August Foreign Exchange Reserves Reach $442.3 Billion, Up $14.3 Billion Last month, South Korea's foreign exchange reserves increased for the third consecutive month, driven by a rise in foreign assets.According to the Bank of Korea on September 3, the country's foreign exchange reserves stood at $442.28 billion at the end of August, up $14.33 billion from the previous month’s $427.95 billion. This marks three months of continuous growth since June.A Bank of Korea official explained, "The significant increase was due to a rise in foreign currency deposits at financial institutions, along with gains in operational income and the dollar-equivalent value of foreign assets in other currencies."By asset type, securities rose by $7.07 billion to $387.07 billion. Deposits also increased by $7.17 billion to $30.3 billion.Special Drawing Rights (SDR) increased by $60 million to $15.77 billion, while the IMF position rose by $30 million to $4.34 billion. Gold remained unchanged at $47.9 billion, as it is reported at the purchase price.However, the Bank of Korea did not provide the usual monthly ranking of foreign exchange reserves by country. This marks the first time in 25 years and six months that the Bank has excluded this information since February 2001.In 2001, the Bank of Korea first included the names and amounts of the top 10 countries by foreign exchange reserves, and it has consistently published South Korea's ranking alongside the reserves of major countries until last month.The Bank of Korea official stated, "The numbers have no analytical value related to external soundness. There were concerns that excessive significance was being placed on the ranking, especially as it fluctuated significantly this year. We decided to exclude it." He added, "There were no meaningful changes in external soundness during the fluctuations in ranking." 2026-09-03 06:00:20
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U.S. Mint Releases Donald Trump Commemorative Dollar Coin A gold-colored dollar coin featuring the face of President Donald Trump went on sale at noon Eastern Time on September 2, according to CBS News. Although it is legal tender valued at one dollar (approximately 1,360 won), the selling price ranges from $1.55 (about 2,100 won) to $2.44 (about 3,300 won).According to the report, the coin's release was announced in July. The front of the coin features Trump's face along with the phrases 'Freedom,' 'We Trust in God,' and '1776–2026.' The reverse side displays the presidential seal, which includes an eagle holding an olive branch and a bundle of arrows, along with the number 250 to signify the 250th anniversary of the founding of the United States. It also includes the words 'United States of America' and 'One Dollar.' This design has been approved by the U.S. Commission of Fine Arts, as reported by the Associated Press.The U.S. Mint stated that this coin can be used as legal tender in everyday transactions, but it also emphasized its collectible value. The Mint described the coin as a 'special circulating dollar coin created to commemorate this historic national milestone, combining the characteristics of everyday American coinage with a once-in-a-generation commemorative design,' adding that it will be a modern and striking collectible.To enhance its collectible value, the Mint included a special coin marked 'July 4' in some bundles. The dollar coins are sold in packs of 25 for $61 (about 82,000 won) and packs of 100 for $154.50 (about 210,000 won). However, some bundles contain the special coin inscribed with 'July 4,' commemorating the 250th anniversary of American independence.While the coin is gold-colored, it is primarily made of copper, with 6% zinc, 3.5% manganese, and 2% nickel. It does not contain any gold.The Associated Press noted that the Trump administration has pursued various branding efforts for Trump during his second term, including naming the Kennedy Center after him and establishing a 'Peace Commission' aimed at ending the Gaza conflict. The report suggested that Trump is seeking to leave his mark on history and in the U.S. capital, Washington, D.C.Currently, orders for the coin are limited to one bundle per household. However, this restriction will be lifted at 2 p.m. Eastern Time on September 3.Immediately after the coin's release on September 2, the U.S. Mint's website experienced heavy traffic, causing delays, as reported by Newsweek. The magazine noted that the wait time to access the website initially reached 20 minutes and later extended to an hour.At 1:07 p.m. Eastern Time, a message on the U.S. Mint's website indicated that users would need to wait 29 minutes to access the site.* This article has been translated by AI. 2026-09-03 05:04:00