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  • Weight Loss Drug Sparks New Trends in Aesthetic Treatments
    Weight Loss Drug Sparks New Trends in Aesthetic Treatments "I lost 15 kg with Mounjaro, but my face looks so aged that I came for volume fillers and Ultherapy." On August 31, at a dermatology clinic in Apgujeong, Gangnam, 31-year-old office worker Kim expressed her concerns after successfully losing 15 kg in just over two months. Although she aims to lose another 5 kg to reach her target weight, she is contemplating pausing her diet due to her rapidly aging appearance. Kim noted, "My friends said, 'Lifting care is essential after rapid weight loss,' and I spent over 800,000 won on Mounjaro alone. If I add volume fillers and Ultherapy, it will exceed 1 million won," she said. The head of consultations at the clinic reported an increase in patients like Kim, who seek lifting treatments after losing weight with GLP-1 obesity medications. He explained, "While there has always been steady demand for lifting due to the youth trend, consultations for post-diet concerns have surged in the past one to two years." ◆ Increased Demand for Lifting and Body Treatments Among Successful Dieters Mounjaro and Wegovy, both GLP-1 obesity treatments, have transformed the global weight loss landscape. While these drugs make weight loss easier through strong appetite suppression, another trend is emerging: many individuals who successfully lose weight are now investing heavily in lifting treatments to refine their facial and body contours. Rapid weight loss can lead to a decrease in facial fat, accentuating nasolabial folds and deep cheekbones, which can create a tired and aged appearance. For those with significant skin sagging, non-surgical treatments like ultrasound and radiofrequency lifting are common, but severe cases may require facelift surgery. A 40-year-old woman, Lee, shared, "I lost 12 kg in three months, but my cheeks have hollowed out, making my nasolabial folds more pronounced, and my face looks like a total mess." She added, "I first had a thread lift and am considering a facelift later." There is also a noticeable trend among successful dieters to manage their body lines. An analysis by 365mc of liposuction data from five medical institutions in Seoul and Incheon over the past three years revealed that the total number of liposuction procedures has actually increased since the domestic launch of GLP-1 treatments. Notably, demand for specific areas has changed. While procedures for the abdomen and thighs have decreased, the number of arm liposuction surgeries surged to 10,487 in 2023, a 31% increase from the previous year, making it the most performed procedure, surpassing abdominal liposuction. Kim Ha-jin, chairman of the 365mc representative council, stated, "GLP-1 treatments are effective for overall weight loss, but they have limitations in improving specific areas of fat distribution and body lines due to genetic factors. Even after weight loss, areas like the arms often show little change." ◆ "An Era of Easy Weight Loss"... Aesthetic Market Booms, Gyms Close The popularity of GLP-1 weight loss drugs is seen as a catalyst for reshaping the aesthetic market. Patients using GLP-1 treatments often report issues like decreased skin elasticity, worsening skin quality, and loss of facial volume, leading to an increase in combined protocols involving HA fillers, biostimulators, and energy-based devices. There is also a growing demand for fat-dissolving injections, lifting, body contouring, and regenerative treatments in South Korea. The aesthetic market is expected to thrive, leveraging the GLP-1 trend as a new growth driver. According to a global market research firm, the aesthetic market was valued at approximately $92.55 billion last year and is projected to grow at an annual rate of 8.11%, reaching about $186.52 billion by 2034. In contrast, gyms, which were once popular for weight loss and body management, are facing a crisis. An analysis of licensing data from the Ministry of the Interior and Safety revealed that 481 gyms closed from January to August this year, a 42.7% increase from 337 closures during the same period last year. This figure more than doubled compared to 211 closures in the same period of 2022. Lee Eun-hee, a professor of consumer studies at Inha University, commented, "As GLP-1 obesity treatments become mainstream, the appeal of going to the gym has diminished with the prospect of losing weight with just one injection. It is essential to create spaces and cultures where exercise can be enjoyed, integrating treatment and physical activity." 2026-09-01 18:08:20
  • Genesis Pauses U.S. Electrification Strategy Amid 77% Drop in EV Sales
    Genesis Pauses U.S. Electrification Strategy Amid 77% Drop in EV Sales Hyundai Motor Company has paused its electrification strategy for Genesis in the United States. Following a significant drop in electric vehicle (EV) sales due to a restructuring of its EV lineup and declining local demand, the company is lowering prices to restore its sales base. While internal combustion engine vehicles continue to drive growth, the upcoming new models may provide an opportunity for recovery.According to data from Cox Automotive's Kelley Blue Book (KBB) on August 31, Genesis sold only 560 EVs in the U.S. market during the first half of this year, a staggering 77.1% decrease from 2,450 units sold during the same period last year.Sales figures for individual models also saw sharp declines. The GV60 sold 485 units in the first half of this year, less than half of last year's 1,192 units. The GV70 electrified model plummeted from 1,181 units to just 71, a 94% drop, while the G80 electrified model, which has been discontinued in North America, sold only 4 units.The reasons for the steep decline in EV sales are multifaceted. Analysts attribute the drop to a combination of reduced local market demand and a restructuring of Genesis's electrification strategy. The overall U.S. EV market shrank from 607,653 units in the first half of last year to 462,892 units this year, a 23.8% decrease.Additionally, a temporary supply gap due to the restructuring of Genesis's U.S. sales lineup and production base has contributed to the decline. Hyundai halted production of the GV70 electrified model at its Alabama plant in June of last year and has since been supplying a new model from its Ulsan plant. The G80 electrified model was withdrawn from the North American market in August of last year, further reducing the local EV lineup. This explains why Genesis's EV sales performance has inevitably slowed.To recover its EV sales base, Hyundai has opted for a price reduction strategy. The starting price for the 2027 model GV60 is set at $46,250, which is 11.9% lower than the 2026 model's price of $52,525. The 2027 GV70 electrified model is priced at $58,500, approximately 9% cheaper than the previous year.Alongside price reductions, the company is also expanding its electrification portfolio with new models. The flagship electric SUV, the GV90, is set to enter the U.S. market next year. Additionally, the brand's first hybrid electric vehicle (HEV), the GV80 HEV, will be unveiled this month, broadening the electrification options. The speed at which these new models establish themselves in the market will likely determine the success of Genesis's electrification strategy moving forward. 2026-09-01 18:08:10
  • Lotte Rental Joins SK Rent-a-Car in Private Equity Ownership Amid Market Competition
    Lotte Rental Joins SK Rent-a-Car in Private Equity Ownership Amid Market Competition The Korea Fair Trade Commission (KFTC) has approved the merger of Lotte Rental with Texas Pacific Group (TPG), signaling an intensification of competition in South Korea's rental car market. With Lotte Rental and SK Rent-a-Car, both considered major players, moving away from their parent companies to embrace private equity ownership, analysts suggest that the competitive landscape is shifting from synergy among corporate affiliates to rivalry in the capital markets.According to industry sources, the KFTC determined that the acquisition of Lotte Rental shares by Lexicon Korea Holdings, a TPG affiliate, would not restrict competition. TPG operates private equity investments in South Korea and is involved in the infant nutrition business through its local subsidiary, HB F&B. The KFTC concluded that TPG's business operations do not overlap with Lotte Rental's core vehicle rental services, categorizing the transaction as a non-restrictive merger.Previously, Hotel Lotte and Busan Lotte Hotel had signed a stock purchase agreement to sell 61.2% of Lotte Rental to TPG at a price of 59,000 won per share, totaling approximately 1.31 trillion won. Following this, TPG filed for the merger with the KFTC in accordance with fair trade laws.Last year, Lotte had attempted to sell its stake in Lotte Rental to Affinity Equity Partners, but the deal fell through due to concerns over market monopolization raised by the KFTC. As a result, both SK Rent-a-Car and Lotte Rental have transitioned to private equity ownership.The recent interest from private equity firms in the rental car market is attributed to the potential for stable cash flow. The rental car business is less sensitive to economic fluctuations and can secure consistent revenue and cash flow from corporate clients over set periods, making it an attractive investment.Additionally, the residual value of used cars is guaranteed, allowing for further revenue generation through sales or exports. TPG, for instance, has a portfolio that includes mobility-related businesses such as Uber and Kakao Mobility.Currently, the domestic rental car market is dominated by Lotte Rental and SK Rent-a-Car. As of the end of last year, there were 1.296 million registered rental cars, with Lotte Rental leading at 255,553 vehicles (19.7% market share), followed by SK Rent-a-Car with 195,008 vehicles (15%), and Hyundai Capital with 157,607 vehicles (12.2%).With a market share gap of around 5 percentage points between Lotte Rental and SK Rent-a-Car, industry experts anticipate that the acquisition by private equity will further intensify competition in the rental car market. To enhance corporate value, both companies will need to increase their market share quickly, which could lead to aggressive price competition. This is particularly likely in Jeju, where the market share difference is around 1 percentage point.An industry insider noted, "With the owners of the top two rental car companies shifting to private equity, the competition is transitioning from 'inter-corporate rivalry' to a 'profitability competition dominated by private equity.' Unlike the corporate culture that considers group synergy, brand value, and long-term strategies, private equity firms prioritize returns on investment, making metrics like EBITDA and dividends increasingly important."Concerns have also been raised that the intensifying competition could destabilize the existing rental car ecosystem. The rental car business is capital-intensive, involving significant financial costs, depreciation, insurance, and maintenance. If the industry engages in prolonged price wars, the financial burden on private equity firms could increase, potentially leading to a collapse in the residual value of used cars.One rental industry representative warned, "If private equity firms adopt a strategy of sacrificing prices to rapidly expand market share, the entire industry could devolve into a chicken game. In such a scenario, all ecosystems related to automobiles, finance, used car distribution, and vehicle maintenance could collapse."* This article has been translated by AI. 2026-09-01 18:08:10
  • Banks Ease Lending Restrictions as Hana Bank Resumes Mortgage and Jeonse Loan Applications
    Banks Ease Lending Restrictions as Hana Bank Resumes Mortgage and Jeonse Loan Applications Hana Bank has resumed accepting applications for mortgage loans and jeonse loans through loan agents. This move is seen as a response to financial authorities expanding the household loan growth target for banks, indicating a relaxation of lending regulations.According to the financial sector, Hana Bank began accepting applications for the November execution of mortgage and jeonse loans through loan agents starting today. This follows a ten-day suspension of such applications, which was halted on August 21. Loan agents are sales channels that enter into contracts with banks to provide loan consultations and accept applications.The increase in the household debt growth target appears to have led to some easing of related regulations. Earlier this month, Hana Bank implemented measures to manage household loan growth, including halting new applications for non-face-to-face mortgage loans, capping overdraft limits at 50 million won, and stopping new variable-rate mortgage loans.Shinhan Bank has also decided to resume accepting loan applications through agents, which had been suspended for the purpose of managing total loan amounts. This decision aligns with the financial authorities' recent adjustments to the household debt growth target.Previously, financial authorities announced plans to double the household debt growth target for this year from 1.5% to 3.0%. As a result, the overall household loan growth target for the five major banks is expected to increase by approximately 2.64 trillion won this year.* This article has been translated by AI. 2026-09-01 18:08:00
  • Three National Universities Selected for Creating 10 Seoul National Universities Initiative
    Three National Universities Selected for 'Creating 10 Seoul National Universities' Initiative Three national universities—Pusan National University, Chonnam National University, and Chungnam National University—have been selected as key institutions for the South Korean government's 'Creating 10 Seoul National Universities' initiative. These universities will receive substantial funding of 70 billion won each this year and approximately 80 billion won annually starting next year, over the next five years, to play a pivotal role in nurturing talent linked to regional strategic industries.Significant Funding SupportOn September 1, the Education Ministry held a briefing at the Government Seoul Building, announcing the selection of the three universities for the 2026 'Creating 10 Seoul National Universities' package support. The initiative aims to develop national universities as hubs for regional growth and platforms for collaboration between academia and industry.The selected universities will receive exceptional benefits. The package includes support for a brand college and convergence research institute in the five strategic industries and artificial intelligence (AI) sector, with generous funding from undergraduate to graduate levels.Specifically, the package budget amounts to 600 billion won, which includes 400 billion won for the brand college and convergence research institute in the growth engine sector, 100 billion won for fostering AI specialists at the AI hub university, and an additional 100 billion won for shared university support with regional institutions. When combined with the basic funding of 100 billion won allocated to all national universities, each university will receive about 700 billion won this year.Lee Joo-hee, an official from the Education Ministry, stated during the briefing, "Next year, with the addition of the advanced shared university project, the selected universities are expected to receive around 800 billion won each, marking an increase of about 100 billion won compared to the previous year."Why These Three Universities?The working committee, composed of the Education Ministry and nine other government agencies, evaluated whether each university presented specific and feasible innovation plans linked to regional industries.Pusan National University outlined a vision to lead the AI transformation in the manufacturing and marine industries, which are strengths of the southeastern region. The university plans to establish an innovative manufacturing convergence college and create contract programs with companies like LG Electronics and Hanwha, aiming to develop a top 100 global college. Its proposal for the largest AI university in the country also received high marks.Chonnam National University proposed the establishment of an advanced convergence college specializing in the semiconductor and future energy sectors in the southwestern region. The plan to expand the Amkor semiconductor packaging joint research model with companies like Samsung and Korea Electric Power Corporation, along with a well-structured strategy for the newly established Gwangju-Jeonnam Special City, was effective in securing its selection.Chungnam National University presented an ambitious vision to create the NEXUS College of Science and Technology, collaborating with the Korea Advanced Institute of Science and Technology (KAIST) and government-funded research institutions in the Daedeok Special Zone. The university's plan to establish a joint AI research institute with Naver Cloud, linked to the central region's mega-projects, was praised for its feasibility and potential impact.Education Minister's Commitment to Regional GrowthGiven the scale of investment, the Education Ministry will implement rigorous performance management. A separate performance management committee will evaluate the establishment of organizations in the first year, program operation outcomes in the second and third years, and ultimately assess graduate employment rates and regional residency rates to determine financial support adjustments. Additionally, the ministry plans to discuss potential additional funding for other national universities based on the progress and readiness of future mega-projects.Education Minister Cho Kyoo-jin emphasized, "Without addressing the crisis of concentration in the metropolitan area and regional extinction, sustainable development and future competitiveness cannot be guaranteed. The three selected universities must quickly demonstrate a successful model where local talent can receive top-tier education and grow without leaving their regions."* This article has been translated by AI. 2026-09-01 18:04:20
  • Industry Tax Reforms: Semiconductor Gains, AI Data Centers Struggle
    Industry Tax Reforms: Semiconductor Gains, AI Data Centers Struggle The government has introduced a 'Domestic Production Tax Credit' (Korean-style IRA) as part of this year's tax reform plan, but the impact varies significantly across industries. While advanced manufacturing sectors like semiconductors and batteries anticipate profit improvements, the AI data center (AIDC) and finished car industries face mixed prospects depending on the scope of the reforms.According to government and industry sources, the semiconductor sector is expected to be the primary beneficiary of the tax reform. Tax incentives, which previously focused on facility investments and research and development (R&D), have been significantly expanded to directly reduce corporate taxes based on 'product shipment and sales performance' after factory operations begin. Samsung Electronics and SK Hynix are investing hundreds of trillions of won in expanding production infrastructure at key sites, including the Yongin semiconductor cluster and facilities in Pyeongtaek and Cheongju. They are projected to secure long-term corporate tax reductions for at least 10 years starting next year, easing the burden of large-scale investments and improving cash flow.The secondary battery industry is also expected to see tangible benefits. As production and sales volumes increase, the tax credit will grow, reducing the operational burden for domestic plants of the three major battery companies: LG Energy Solution, Samsung SDI, and SK On. With key production bases located outside the capital region, such as in Ochang, Ulsan, Cheonan, and Seosan, they will also benefit from a preferential tax credit rate of up to 1.5 times. However, the exclusion of a direct refund system means that unprofitable companies may struggle to take immediate advantage of these benefits.In contrast, the AI data center sector, a core component of the AI industry, is unlikely to feel the effects of the tax reductions from this reform. The tax credits are primarily focused on manufacturing hardware, such as AI robot components, while the substantial costs associated with building and operating data centers are excluded from the credit categories. As a result, the limited direct benefits for IT and cloud companies are seen as inadequate given the massive capital investments required.The finished car industry faces a more complex situation regarding the tax benefits. The initial expectation that 'electric vehicle finished products' would be included in the domestic production tax credit has not materialized, significantly reducing direct tax support for the finished car sector. However, the government has adjusted the limits for corporate deductions on passenger vehicles, reducing the cap for internal combustion engine vehicles to 7 million won while increasing it to 10 million won for electric and hydrogen vehicles.This year's tax reform plan has been tailored to provide targeted support for advanced and strategic industries, leaving domestic industries such as retail, logistics, and general services in a policy shadow. The expansion of tax credits is limited to items classified as 'national strategic technologies' under the Special Tax Treatment Control Act, sidelining the voices of traditional industries that have continuously called for relief from energy and labor costs.Meanwhile, Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol stated on August 3, "We will actively support domestic production of strategically important items for economic security and green transition, and guide market funds into productive sectors of the industrial ecosystem."* This article has been translated by AI. 2026-09-01 18:04:20
  • Surge in Forced Stock Sales Reaches 4.8 Trillion Won Amid Market Volatility
    Surge in Forced Stock Sales Reaches 4.8 Trillion Won Amid Market Volatility As of July this year, the scale of forced sales by individual investors, known as 'debt investment,' has exceeded 4.8 trillion won. This figure is nearly double the total amount of forced sales recorded last year. This surge indicates a significant number of investors who borrowed funds to invest in stocks through margin trading and credit loans have faced forced liquidation due to insufficient collateral. If the trend continues, the total forced sales by the end of this year are expected to reach an all-time high. Experts warn that the risks associated with leveraged investments have escalated amid extreme market volatility.On September 1, data submitted by the office of lawmaker Kang Jun-hyun from the Democratic Party revealed that from January to July this year, the total amount of forced sales resulting from margin trading, credit transactions, and collateral loans reached 4.819 trillion won. This is close to double the annual forced sales figure of 2.4642 trillion won recorded last year. In just seven months, this amount has surpassed the highest annual total in the past five years, which was 3.904 trillion won in 2021.Forced sales occur when investors borrow funds from securities firms or purchase stocks on margin and are unable to maintain the required collateral ratio due to falling stock prices, leading the firms to liquidate the investors' stocks.By type, forced sales from margin trading accounted for more than half of the total, amounting to 2.9281 trillion won, which is more than double last year's annual figure of 1.4152 trillion won. Forced sales from credit transactions and collateral loans also totaled 1.8909 trillion won, significantly exceeding last year's annual total of 1.0491 trillion won.Many accounts have been liquidated with total losses. From January to July this year, 6,170 accounts were liquidated with total losses, amounting to 31.2 billion won, more than double last year's total liquidation amount of 15.3 billion won.The sharp increase in forced sales is attributed to heightened market volatility this year. The KOSPI index has fluctuated by an average of 2.9% daily, nearly three times higher than last year's average of 1%.Lawmaker Kang Jun-hyun stated, "The surge in forced sales is a warning signal that the risks associated with leveraged investments are increasing. Financial authorities should not view this solely as a personal responsibility of investors but should also examine whether there are factors encouraging excessive debt-driven investments and ensure that securities firms' credit provision and risk management systems are functioning properly."* This article has been translated by AI. 2026-09-01 18:04:10
  • Margin Calls Surge as 94% of Investors Face Forced Liquidation
    Margin Calls Surge as 94% of Investors Face Forced Liquidation The domestic stock market experienced a steep upward trajectory until reaching an all-time high in June. This surge led to a rise in leveraged investments, known as '빚투' (debt investment). While the situation would have been manageable had stock prices continued to rise, the reality is that no stock can keep climbing indefinitely. Those who engaged in leveraged investments at peak prices are now facing forced liquidations in a declining market.On September 1, data submitted by the office of lawmaker Kang Jun-hyun from the Democratic Party revealed the severity of leveraged investments this year. In just seven months, the total amount of forced liquidations approached last year's annual total, indicating that leveraged investments have surpassed a critical threshold. The extreme market volatility has led to a significant number of margin calls, which typically result in forced liquidations. This means that many individual investors have been compelled to liquidate their holdings without the opportunity to benefit from any stock rebounds.Forced Liquidation Occurs with Insufficient CollateralAccording to the data from Kang Jun-hyun's office, from January to July this year, there were a total of 688,894 accounts that faced margin calls due to insufficient collateral. During this period, the total collateral shortfall reached 5.126 trillion won, which is 1.8 times higher than last year's annual figure of 2.8665 trillion won.While the number of accounts facing margin calls this year is lower than last year's total of 767,173, the amount of collateral shortfall in just seven months has significantly exceeded last year's total. This increase in collateral shortfall is attributed to heightened market volatility, which has led to larger shortfalls that individual investors must cover.Moreover, the ratio of margin calls that resulted in forced liquidations has also risen sharply this year. The percentage of actual forced liquidations compared to the total margin call amount from margin trading and collateral loans stands at 94.01%. The total amount of forced liquidations this year has reached 4.819 trillion won.This figure represents an increase of 8.04 percentage points from last year's rate of 85.97%. In contrast, the rates for the previous four years ranged from 40% to 50%, indicating that this year, nearly all instances of collateral shortfall have led to forced liquidations.Most Margin Calls Affect Investors in Their 50s; 40s Face Highest LossesBy age group, investors in their 50s experienced the highest number of margin calls. In the first half of this year, there were 125,558 accounts in this age group facing margin calls due to insufficient collateral. This was followed by 98,426 accounts in their 60s and 89,333 accounts in their 40s.The total collateral shortfall was also highest among those in their 50s, amounting to 819.9 billion won. Investors in their 40s faced a shortfall of 615.8 billion won, while those in their 60s had a shortfall of 585.1 billion won. The number of accounts that were completely liquidated, resulting in total loss of principal, was highest among investors in their 40s, with 1,682 accounts. This was followed by 1,426 accounts in their 50s and 1,345 accounts in their 30s. The total liquidation amount was also highest for those in their 40s, reaching 11.2 billion won.The trend of older investors facing losses is also notable. The number of accounts liquidated with total loss of principal among those in their 60s increased from 169 in the first half of last year to 553 in the same period this year, more than tripling. Similarly, the number of accounts liquidated among those aged 70 and above rose from 43 to 155 during the same timeframe.Kang Jun-hyun stated, “The significant forced liquidations among investors in their 50s is a warning sign that should be closely monitored. This age group is typically preparing for retirement and managing their retirement funds, so the impact of substantial leveraged investment losses on household finances can be significant.” He added, “Given that the risk profiles vary by age and investment size, financial authorities must analyze these trends carefully and ensure that there are no vulnerabilities in investor protection.”High-Value Liquidations Nearly TripleThere has also been a rapid increase in forced liquidations among high-value investors. In the first half of this year, there were 4,270 accounts with forced liquidations exceeding 100 million won, nearly tripling from 1,458 accounts in the first half of last year. Compared to the second half of last year, which had 1,858 accounts, this represents more than double the amount.A similar trend is observed in credit transactions and collateral securities loans. The number of accounts with forced liquidations exceeding 100 million won rose from 538 in the first half of last year to 1,541 in the first half of this year, also nearly tripling. Compared to the 501 accounts in the second half of last year, the increase is even more pronounced.Kang Jun-hyun emphasized, “The fact that the number of accounts with forced liquidations exceeding 100 million won has nearly tripled in a year indicates that the risks associated with high-leverage investments are growing. It is crucial to ensure that investors are fully aware of the risks associated with margin and credit trading, and that brokerage firms are effectively managing and communicating these risks.”* This article has been translated by AI. 2026-09-01 18:04:10
  • South Korea Expands Tax Benefits for Manufacturing Under New Policy
    South Korea Expands Tax Benefits for Manufacturing Under New Policy The South Korean government is broadening its tax support for businesses from focusing solely on 'investment' to include 'production.' Industries such as semiconductors and batteries will benefit from the 'domestic production tax credit' (Korean version of the IRA), which offers tax reductions based on domestic production levels. However, sectors like AI data centers, electric vehicles, and vaccines have been excluded, raising concerns about gaps in support.According to industry sources, the government finalized a revision to the Tax Exemption and Reduction Control Act during a cabinet meeting. The new policy targets six sectors: solar energy, wind energy, batteries, semiconductors, key materials, and AI robot components. Starting in 2027, eligible items will have their corporate taxes reduced based on the quantity produced and sold domestically, multiplied by a standard deduction amount for each category.While the previous integrated investment tax credit provided reductions based on the amount invested in factories and equipment, the new system requires actual production and sales to qualify for benefits. Companies cannot apply both credits to the same production facility, necessitating a careful evaluation of initial investment costs, future production volumes, and operational periods to choose the most advantageous program. A regional coefficient of up to 1.5 times will also apply to production outside the capital region.Industries with large-scale production bases in South Korea, such as semiconductors and batteries, are expected to benefit significantly. In contrast, electric vehicle manufacturers and AI data centers have been left out. The automotive industry has been advocating for tax incentives for electric vehicle production to counter the influx of Chinese electric vehicles and U.S. pressure for local production. The biotechnology sector has also requested that vaccine production be classified as a matter of economic security and be eligible for the production tax credit.The exclusion of AI data centers highlights the limitations of the new policy. Currently, data centers are not classified as a standalone industry in the Korean Standard Industrial Classification, falling under 'hosting and related services,' which complicates the basis for support.Compared to the U.S. IRA, there are differences in the support mechanisms. The U.S. advanced manufacturing production tax credit allows for cashing out tax credits if certain conditions are met, while South Korea does not offer direct refunds or third-party transfers. Companies that incur losses due to significant upfront investments may find it challenging to realize immediate tax benefits even as production increases.The government's expansion of tax support to include production is seen as a step forward in the competition to attract domestic manufacturing bases. However, the actual impact will depend on which industries and products are recognized as 'domestic production.' Ongoing discussions in the National Assembly and subsequent implementation processes are likely to see continued demands for the inclusion of excluded sectors such as AI data centers, electric vehicles, and vaccines.Oh Moon-sung, a professor of tax studies at Hanyang University, stated, "Support should focus on specific items that confirm the vulnerability of domestic production bases, supply chain risks, and the potential to induce additional production, while also considering the scale of existing industry-specific tax support when determining eligibility and deduction amounts."* This article has been translated by AI. 2026-09-01 18:04:10
  • Surge in Forced Sales Linked to Stock Loans Exceeds Last Years Total
    Surge in Forced Sales Linked to Stock Loans Exceeds Last Year's Total Personal investors borrowing funds to purchase stocks through financial companies linked to securities firms, known as stock loans, have seen a significant increase in forced sales. This surge is attributed to the volatile stock market this year, which has led to a decline in collateral value, resulting in many investors being unable to manage their borrowed funds and having their stocks forcibly sold. The total amount of forced sales related to stock loans in the first seven months of this year has already surpassed three times the total for the entire previous year.According to data received on September 1 from the office of Democratic Party lawmaker Kang Jun-hyun, the total amount of forced sales related to stock loans from January to July this year reached 483.9 billion won, which is 3.4 times higher than last year's total of 142.2 billion won.The number of accounts involved in forced sales also increased to 4,271, up 2.6 times from 1,634 accounts last year. In just seven months, this figure has significantly exceeded the total for the entire previous year.In the past five years, the total amount of forced sales related to stock loans was 345.1 billion won in 2021, 356.2 billion won in 2022, and decreased to 151.2 billion won in 2023. It rose again to 229.4 billion won in 2024 but fell to 142.2 billion won in 2025. This year, the total for the first seven months has already surpassed the annual totals for the past five years.The balance of stock loans is also on the rise. It decreased from 3.3 trillion won at the end of 2021 to 1.1 trillion won at the end of 2024, but rebounded to 1.4 trillion won by the end of 2025, and as of July 31 this year, it has increased to 1.5 trillion won.Stock loans are a type of linked credit product that allows investors to borrow funds to purchase stocks through financial companies associated with securities firms. When stock prices fall, the value of the collateral decreases, and if investors cannot provide additional collateral, it leads to forced sales. With the recent increase in leverage investments among individual investors coinciding with market volatility, the reality of 'debt investment bills' has emerged in the stock loan sector.Kang Jun-hyun stated, "Since stock loans are structured to link securities accounts with loans, the risk of investor losses can rapidly increase during periods of market volatility. Given that forced sales are rising much faster than the increase in loan balances, it is necessary to examine whether the management of stock loan lending and collateral is being conducted appropriately." He emphasized the need for financial authorities to accurately assess the overall scale of the stock loan market and the status of forced sales, ensuring there are no blind spots in management and oversight.* This article has been translated by AI. 2026-09-01 18:04:00