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  • KOSPI reverses early losses as chip gains offset
    KOSPI reverses early losses as chip gains offset SEOUL, September 01 (AJP) - South Korean stocks reversed early losses Tuesday morning, with the benchmark KOSPI edging higher as gains in Samsung Electronics and SK hynix offset renewed U.S.-Iran tensions, rising oil prices and pressure from higher U.S. Treasury yields. The KOSPI stood at 6,844.90 as of 10:30 a.m., up 0.4 percent from the previous session. The index had fallen as low as 6,732.47 after opening lower before rebounding to an intraday high of 6,857.35, a swing of nearly 125 points. The recovery came despite weak institutional flows. Foreign investors sold a net 139.3 billion won ($102 million) and institutions unloaded 526 billion won, while retail investors bought a net 308.2 billion won. Chipmakers led the rebound. SK hynix rose 1.9 percent to 1,706,000 won and Samsung Electronics gained 0.3 percent to 260,750 won, reversing early losses with support from the companies' recent share buybacks. Sentiment was also bolstered by fresh trade data. South Korea's semiconductor exports reached a record $46.65 billion in August, up 209 percent from a year earlier, according to the Ministry of Trade, Industry and Resources. Semiconductors accounted for 47.5 percent of the country's total exports of $98.25 billion, as strong demand for high-bandwidth memory and server DRAM continued amid expanding investment in artificial intelligence infrastructure. Battery and energy shares were also among the strongest performers. The oil and gas industry group rose 4.49 percent, the top-performing sector, while the secondary-battery production theme advanced 3.98 percent. SK Innovation jumped more than 8 percent after its battery unit, SK On, said it would supply 9 gigawatt-hours of lithium iron phosphate battery cells to U.S. energy storage system maker Neovolta Power between 2027 and 2031. LG Chem climbed 5.9 percent to 296,500 won and Samsung SDI rose 2.17 percent. Trading companies gained 3.08 percent, led by POSCO International, up 4.28 percent, and LX International, up 2.3 percent. Display shares added 2.36 percent, with LG Display rising 2.65 percent. Among other notable movers, BH surged 14.7 percent to 20,900 won and Kumho Electric gained 8.3 percent to 13,510 won, while LG Electronics dropped 4.9 percent to 206,000 won and LG Innotek slid 6.85 percent to 598,000 won. KOSDAQ falls as foreign, institutional selling weighs The smaller-cap KOSDAQ fell 1.18 percent to 824.48 as of 10:30 a.m., a much weaker showing than the KOSPI. The index traded between 819.74 and 833.52 during the morning session. Retail investors bought a net 270.7 billion won, but the purchases were outweighed by foreign and institutional selling. Foreign investors sold a net 148 billion won and institutions shed 113.8 billion won. Individual stocks showed sharp divergences. Daehan Fiber Optics fell 4.58 percent to 13,320 won, while nuclear-related Woori Technology dropped 8.1 percent to 10,660 won. Among theme stocks, Pionex surged 29.9 percent, while Hyundai Pharm jumped 15.67 percent. The divergence between the two indexes suggested buying remained concentrated in select large-cap semiconductor, battery and energy names rather than spreading broadly across the market. Oil climbs as won strengthens Oil prices extended gains as renewed fighting in the Middle East raised concerns about energy flows through the Strait of Hormuz. West Texas Intermediate crude rose 1.04 percent to $86.62 a barrel, while Brent crude gained 0.7 percent to $91.09. U.S. forces struck two Iranian rocket launchers on Larak Island, while Tehran responded with attacks targeting the United Arab Emirates and Jordan, marking a renewed escalation between Washington and Tehran. Oil shipments continued through the Strait of Hormuz, but risks remained elevated after a supertanker struck two naval mines and caught fire. Higher oil prices added another layer of pressure to global financial markets by raising inflation concerns at a time when investors were already pricing in the possibility of tighter U.S. monetary policy. The benchmark U.S. 10-year Treasury yield climbed above 4.75 percent after Federal Reserve Chair Kevin Warsh signaled that further tightening could be needed if inflation fails to move convincingly toward the Fed's 2 percent target. Wall Street also closed lower Monday, with the Dow Jones Industrial Average falling 0.70 percent, the S&P 500 losing 0.33 percent and the Nasdaq Composite slipping 0.12 percent. Despite pressure on global bonds and equities, the Korean won strengthened 0.2 percent to 1,371.7 won per dollar. Asian markets mixed Markets were mixed Tuesday morning. Japan's Nikkei 225 edged up 0.1 percent to 66,360.75, while China's Shanghai Composite was nearly flat, rising 0.02 percent to 3,987.05. Hong Kong underperformed, with the Hang Seng Index falling 0.8 percent to 25,354.5. The moves left the KOSPI outperforming most major regional indexes despite continued pressure from higher oil prices and U.S. bond yields. AJP Takeaways · The KOSPI reversed an early drop to rise 0.4 percent to 6,844.90, recovering from an intraday low of 6,732.47 as Samsung Electronics and SK hynix turned higher. · Foreign and institutional investors remained net sellers, while retail investors bought 308.2 billion won, suggesting the index rebound was not backed by broad institutional buying. · Semiconductor shares were supported by record August chip exports of $46.65 billion, while battery and energy stocks also gained on SK On's U.S. ESS battery deal. 2026-09-01 11:12:56
  • Margin debt swells back as investors rotat into KOSDAQ
    Margin debt swells back as investors rotat into KOSDAQ SEOUL, September 1 (AJP) - South Korean margin borrowing rose for a ninth straight trading day and returned to the levels of mid-July as investors migrated to KOSDAQ outperforming the main index since last month. Outstanding margin loans across the two markets stood at 33.34 trillion won ($24.36 billion) as of Aug. 28, up 8.96 billion won ($6.5 million) from a day earlier, according to the Korea Financial Investment Association (KOFIA). The increase was driven by KOSDAQ stocks, where margin borrowing jumped 101.71 billion won to 6.95 trillion won. By contrast, borrowing tied to KOSPI-listed shares fell 92.75 billion won to 26.39 trillion won. Margin financing allows investors to borrow money from brokerages to buy stocks. A higher balance therefore indicates that more borrowed money is being used for stock investments. That divergence was mirrored in the market on Aug. 28. The KOSPI lost 1.79 percent to 6,788.88, while the junior KOSDAQ edged up 0.09 percent to 838.41. The data showed borrowing increased for KOSDAQ stocks while declining for large-cap shares. Cash waiting on the sidelines also increased sharply. Investor deposits at brokerages rose by 3.10 trillion won from a day earlier to 99.81 trillion won as of Aug. 28. The deposits include cash set aside to buy stocks and money from recent stock sales that has not yet been withdrawn, meaning a substantial amount of cash remains available for investment. Riskier short-term trading indicators, meanwhile, eased. Unpaid stock purchases fell to 930.30 billion won as of Aug. 28. These trades occur when investors buy stocks without having enough cash in their accounts to cover the full purchase and fail to pay the remainder by the settlement deadline. Forced liquidations tied to such unpaid trades also fell sharply, to 4.80 billion won from 24.87 billion won a day earlier. The ratio of forced liquidations to unpaid settlement balances fell to 0.5 percent from 2.2 percent, according to KOFIA. The KOSPI has gained 3.4 percent to finish August at 6,820 from the previous month wherease the KOSDAQ soared 15.91 percent to 834.3. Korean shares recovered on Monday, with the KOSPI closing 0.46 percent higher at 6,820.02. The benchmark extended those gains slightly on Tuesday, rising 0.11 percent to 6,827.46 as of 10:23 a.m. AJP Takeaways • Margin borrowing rose for a ninth straight trading day to 33.34 trillion won as of Aug. 28. • Borrowing increased by 101.71 billion won on the KOSDAQ while falling by 92.75 billion won on the KOSPI. • Investor deposits approached 100 trillion won, while unpaid balances and forced liquidations declined. 2026-09-01 11:11:52
  • Russia and China Fail to Finalize Siberian Gas Project Agreement
    Russia and China Fail to Finalize Siberian Gas Project Agreement Russia has once again brought up a natural gas project with China, but no concrete agreement has emerged. Chinese President Xi Jinping and Russian President Vladimir Putin held a summit on August 31 in Bishkek, Kyrgyzstan. Ahead of the meeting, Russia emphasized the 'Siberian Power 2' project, which aims to export Russian natural gas to China.Yuri Ushakov, an aide to the Russian president on foreign policy, told reporters on August 28 that Putin and Xi would discuss the possibility of finalizing agreements related to the Siberian Power 2 project during their summit. The announcement of the project name just three days before the meeting led to speculation that a final deal might be reached. However, the joint statement following the summit did not mention the Siberian Power 2 project, resulting in another 'no deal' outcome following Putin's visit to China in May.The Siberian Power 2 project involves a 2,600-kilometer pipeline that will transport gas from Russia's Yamal region through Mongolia to China, with a target supply of up to 50 billion cubic meters of natural gas annually. Currently, through the existing Siberian Power 1 pipeline, Russia exports 38 billion cubic meters of natural gas to China each year.China and Russia have been collaborating on the Siberian Power 2 project since 2020. In September of last year, the two countries signed a legally binding memorandum of understanding regarding the construction of Siberian Power 2 and a 30-year gas supply agreement. However, they have yet to agree on the price for natural gas supply, which has stalled the project.The price proposals from both sides differ significantly. According to Russian media, Russia has proposed a price of $250 to $300 per 1,000 cubic meters, while China has offered $50, which is the domestic price for natural gas in Russia. The current price for natural gas that Russia supplies to China is estimated to be around $258.From a pricing perspective, Russia's offer appears relatively reasonable, while China's demand seems excessively low. However, the context changes the calculations. Following the war in Ukraine, Russia has lost its European market and is struggling to find buyers for the natural gas extracted from the Yamal gas field. The success of the Siberian Power 2 project is crucial for Russia to secure a long-term and stable cash flow.On the other hand, China has less urgency. It has secured multiple supply sources, including pipelines from Central Asia and Myanmar. As the world's largest importer of natural gas, China has diversified its supply options. Therefore, it does not feel compelled to rush into a contract at Russia's desired price. Instead, it may be advantageous for China to observe how much lower Russia can go in negotiations. Ultimately, China is maximizing its national interests while responding to Russia's desperation.China and Russia are strengthening their strategic cooperation against a U.S.-led international order. However, their strategic partnership and economic interests are separate issues. While China needs Russia, it is not obligated to purchase gas at the prices Russia demands. Although China's low price proposal may upset Russia, the latter cannot afford to sever ties with China for national interest reasons. Similarly, China requires Russia for its own interests but has no reason to rush negotiations on natural gas prices.* This article has been translated by AI. 2026-09-01 11:04:10
  • KOTRA Expands Communication with Employees to Innovate for $1 Trillion Export Era
    KOTRA Expands Communication with Employees to Innovate for $1 Trillion Export Era KOTRA is expanding its organizational operations to enhance communication between mid-level leaders in their 30s and 40s and younger employees. This initiative aims to connect export diversification, economic security, and AI-based service innovation with changes in internal organizational culture as the agency prepares for a $1 trillion export era.On August 31, KOTRA held a session titled 'Communication with Mid-Level Leaders' featuring over 60 leaders from their 30s and 40s, along with President Kang Kyung-sung. The discussion focused on 'The Path KOTRA Creates in the Era of $1 Trillion Exports,' addressing strategies for export diversification, economic security, and organizational innovation.Participants explored ways to increase export participation from small and medium-sized enterprises, emphasizing AI and regional growth. They also discussed improving safety and welfare for employees working in war and disaster zones.This year, KOTRA is actively applying AI to export support tasks, launching initiatives like 'Export Hope 1000' and the 'AI Trade Support Center' to expand overseas opportunities for local small businesses.'Communication' is an internal communication program introduced by President Kang after his appointment in November 2024. It has been conducted 80 times so far, targeting different groups, including headquarters staff, regional employees, and young interns. This year, the program plans to expand participation to include field workers and internal partners.Additionally, a reverse mentoring program began last month, where 22 employees, averaging 28 years old, serve as mentors to seven executives, including the president. They share insights on communication styles, trends, and AI usage relevant to the younger generation.KOTRA plans to operate the program through the end of the year, with seven mentoring groups rotating meetings with executives. The goal is to incorporate the perspectives and digital usage of younger employees into improvements in export support services.* This article has been translated by AI. 2026-09-01 11:04:00
  • South Korea Launches Battery Triangular Belt to Strengthen Supply Chain
    South Korea Launches Battery Triangular Belt to Strengthen Supply Chain The South Korean government is taking significant steps to establish a "battery triangular belt" that connects battery cell production in the Chungcheong region, key material production in the Yeongnam region, and raw material manufacturing in the Honam region. The initiative aims to enhance the domestic supply chain for all-solid-state and sodium batteries, as well as expand the infrastructure for recycling materials.On September 1, the Ministry of Trade, Industry and Energy held a meeting at the Sejong Marriott Hotel with local governments from Chungcheongbuk-do, Gyeongsangbuk-do, and Jeollabuk-do, along with relevant organizations, to discuss the construction of innovative infrastructure for the battery triangular belt. This project seeks to create a complete industrial ecosystem that connects raw materials, components, cells, and recycling within the country, thereby diversifying the supply chain and improving supply stability.The ministry has previously announced plans to invest approximately 180 billion won this year in the development of next-generation battery technologies, including all-solid-state batteries, and to expand battery demand in sectors such as energy storage systems (ESS), defense, and robotics.To address challenges faced by businesses and local governments, the government has conducted town hall meetings and established a battery triangular belt consultative body. During the recent meeting, participants reviewed the collected issues and discussed support measures tailored to the industrial conditions of each region.The Ministry of Trade, Industry and Energy and local governments are considering joint efforts to build infrastructure capable of evaluating the performance of all-solid-state batteries. They also plan to expand testing centers for the commercialization of sodium batteries and safety assessments for batteries using recycled materials.Additionally, they will collaboratively promote the establishment of power supply facilities within specialized national strategic industry complexes. Timely power infrastructure is crucial for battery production facilities, as delays in power network construction can hinder corporate investments and factory operations.The ministry will review new projects proposed by local governments in collaboration with relevant agencies to determine their feasibility. Projects requiring further evaluation will undergo planning revisions by December before being reassessed.Regular consultation channels with local governments will also be established to identify new projects that reflect regional industrial foundations and corporate demands, with the goal of nurturing the battery triangular belt as a key growth engine for each region.A ministry official stated, "The battery triangular belt is a significant task that goes beyond simply creating regional complexes; it aims to establish an organic battery supply chain at the national level. We will maximize the strengths of specialized complexes and concentrate national resources to ensure that support projects at each hub proceed without disruption."* This article has been translated by AI. 2026-09-01 11:04:00
  • SK Telecoms Air Surpasses 200,000 Members, Launches Unlimited Plan at $10 Monthly
    SK Telecom's 'Air' Surpasses 200,000 Members, Launches Unlimited Plan at $10 Monthly SK Telecom announced on September 1 that its self-service communication platform 'Air' has surpassed 200,000 members, prompting a promotional offer for free subscriptions to 'YouTube Premium Lite.' The promotion, which runs from September 1 to February 28, 2027, is available to new customers who sign up for the 'Air X' plan through the official Air app and website. These customers will receive a year of free YouTube Premium Lite after activation. Air X is an unlimited data plan priced at 58,000 won per month. New subscribers during the promotional period will also receive bonus pack points, which can be used for bill payments or to purchase from over 1,000 products in the Air app's point shop. Subscribers to Air X can pay their entire bill with points until December. With maximum benefits applied, customers can enjoy an unlimited data plan that includes YouTube Premium Lite for an effective monthly cost of around 10,000 won. SK Telecom has been enhancing the utility of points within the Air service. In June, the company expanded the limit for point payments, allowing customers to use points earned from advertising missions to cover their bills, even exceeding the previous limit of 5,000 won. Additionally, to ease the financial burden on customers, SK Telecom has significantly increased the point payment limit for Air from 5,000 won to 100% of the monthly fee for the Air X plan, while the other five plans allow for 50% payment with points. Following this change, the points used for bill payments in August surged more than fivefold compared to the previous month. SK Telecom is also running a promotion waiving the eSIM issuance fee for new Air plan subscribers until the end of the month. “Air was designed with a user-centric approach from the planning stage, and we have continuously expanded services and benefits based on customer feedback since its launch,” said Kwon Hyun-cheol, head of SK Telecom's Sales & Marketing Division. “We will continue to strive to be a communication brand that adds convenience and enjoyment to our customers' daily lives.”* This article has been translated by AI. 2026-09-01 11:04:00
  • Kim Jong-cheol Denies Allegations of Merger with Democratic Party
    Kim Jong-cheol Denies Allegations of Merger with Democratic Party Kim Jong-cheol, a former senior member of the Reform Party, dismissed allegations of a merger with the Democratic Party on September 1, calling it a "malicious frame" aimed at portraying former leader Lee Jun-seok as abandoning the party for personal gain.During his appearance on KBS Radio's 'Intensive Current Affairs,' Kim stated, "The merger rumors are merely the talk of gossipers or those looking to tarnish reputations; they are impossible and not worth considering." He emphasized that merging with the Democratic Party would dilute the Reform Party's criticisms of the current government, making it unfeasible.Regarding speculation about an alliance with the People Power Party, Kim acknowledged the need for the opposition to unite in criticizing the ruling party's mistakes but clarified, "We are not at a stage to discuss this concretely, nor have we done so."He also highlighted that there were no significant conflicts or disputes within the party following Lee's resignation, countering claims of disagreements over focusing on the southern Gyeonggi region in the upcoming general elections. "It is not true to say there were differing opinions without having discussions or creating an active forum," he asserted.Looking ahead, Kim believes the party must seek realistic solutions to overcome challenges as a third-party entity, stressing the need for introspection on how to strengthen itself before the upcoming elections.On the recent cabinet reshuffle by President Lee Jae-myung, he pointed out issues related to compensating those who ran in elections and raised concerns about the nominations of candidates for the Ministry of Gender Equality and Family and the Ministry of Justice. He remarked, "The biggest problem is that Lee Jae-myung has not given up on the dream of canceling his indictment."He predicted that the upcoming confirmation hearings would lead to significant confrontations, ultimately inflicting considerable damage on the administration, stating, "The intention behind the personnel changes will soon become apparent to the public."* This article has been translated by AI. 2026-09-01 11:00:20
  • Average Daily Wage in Construction Sector Reaches 282,737 Won, Lowest Growth Rate in a Decade
    Average Daily Wage in Construction Sector Reaches 282,737 Won, Lowest Growth Rate in a Decade The average daily wage growth rate in the construction sector has slowed to its lowest level in a decade. This decline is attributed to a downturn in the construction market and a decrease in employment.The Korea Construction Association announced on September 1 that the results of its "2026 Second Half Construction Wage Survey," conducted in May 2026, showed the average daily wage across 132 job categories is 282,737 won. This represents a 0.98% increase from the previous half-year and a 1.40% increase compared to the same period last year.The year-on-year growth rate of 1.40% is the lowest recorded in the past ten years. Wage growth in the construction sector has decreased for three consecutive years, falling from 6.71% in 2023 to 3.30% in 2024, 1.66% in 2025, and now 1.40% in 2026.The Korea Construction Association analyzed that the recent slowdown in wage growth is primarily due to reduced employment resulting from the sluggish construction market. The rate of change in construction output was recorded at -3.2% in 2024 and -15.7% in 2025, while the number of employed individuals in the construction sector in May of this year was 1.92 million, a 2.2% decrease compared to the same month last year.Among the 132 job categories surveyed, the average daily wage for the 91 general construction positions, which make up the largest share, was found to be 270,614 won. This is a 0.79% increase from the previous half-year and a 1.24% increase from the same period last year.This survey is designated as a statistical survey under the Statistics Act and can be applied to construction cost calculations starting September 1. The report on construction wage conditions can be accessed on the Korea Construction Association's website under the construction wage menu.While the slowdown in wage growth may alleviate some pressure from rising construction costs, the combination of a stagnant construction market and declining job opportunities suggests that the industry's overall sentiment remains heavy.* This article has been translated by AI. 2026-09-01 11:00:10
  • LG Uplus Partners with Arize AI to Enhance AI Agent Performance and Safety
    LG Uplus Partners with Arize AI to Enhance AI Agent Performance and Safety LG Uplus is collaborating with global AI operations management company Arize AI to establish a management system aimed at operating AI agents more accurately and safely. On September 1, LG Uplus announced that it has signed a strategic memorandum of understanding (MOU) with Arize AI to cooperate in the field of AI agent technology. This agreement comes as the use of AI in corporate work environments expands, necessitating a system to continuously monitor the performance and response quality of AI agents while managing errors and risks in advance. Arize AI specializes in measuring the performance of generative AI and AI agents and analyzing errors. The company provides AI service quality management solutions to clients across various industries, including telecommunications, finance, manufacturing, and retail. Through this partnership, the two companies will collaborate on assessing the performance and response quality of AI agents and analyzing and managing potential errors during operations. Specific areas of cooperation include the development of Korean language and voice-based AI evaluation technology, collaboration on safety mechanisms to prevent AI from generating inaccurate or inappropriate responses, and exploring joint business opportunities in the domestic B2B market. Based on this collaboration, LG Uplus plans to enhance its AI operations management capabilities and continuously review advanced AI service solutions for corporate clients. Lee Sang-yeop, CTO of LG Uplus, stated, "As AI becomes a core component of corporate work environments, performance, reliability, and operational stability are emerging as critical competitive advantages. Through our collaboration with Arize AI, we aim to strengthen our AI operations management capabilities and provide trustworthy AI services to our customers."* This article has been translated by AI. 2026-09-01 11:00:00
  • Shein Struggles on First Day of Hong Kong Stock Market Debut Amid Growth Concerns
    Shein Struggles on First Day of Hong Kong Stock Market Debut Amid Growth Concerns Chinese fast fashion giant Shein made a bold move by debuting on the Hong Kong stock market on September 1, despite a significant slowdown in its growth. The Wall Street Journal reported that while the company's valuation has dropped considerably from its peak, there are still opportunities for a rebound.One of Shein's key strengths is its vast supply chain centered in China, which has helped it generate over $40 billion in annual revenue, comparable to major global brands like Nike.Analysts suggest that Chinese supply chain companies are eager to collaborate with Shein. According to Singapore-based market research firm Momentum Works Intelligence, "Many suppliers and manufacturers in China prefer working with Shein over Temu due to timely payments and better treatment of suppliers." Temu, operated by Chinese e-commerce company Pinduoduo, competes with Shein in major markets like the U.S.With a substantial cash reserve of $15 billion, Shein is continuously pursuing new growth strategies. A notable example is its acquisition of the once-popular U.S. clothing brand Everlane earlier this year, indicating potential for further mergers and acquisitions in the global fashion industry.Sales in regions outside the U.S. and Europe, which face tariff barriers, still showed growth, increasing by 15% last year, compared to an overall revenue increase of 8% for the same period.Founded in China, Shein is now headquartered in Singapore and produces most of its clothing in China. Its low prices and rapid product turnover have made it popular among consumers in the U.S. and Europe.However, competition has intensified with the rise of Chinese online retailers like Temu and JD.com, and Shein has faced significant growth challenges due to trade barriers in the U.S. and Europe. The annual revenue growth rate, which reached 41% in 2023, has halved to 21% in the following year, and further slowed to 8% in 2025, with just a 1.1% increase in the first quarter of this year.Even if Shein manages to increase sales, there are concerns about declining profitability. The high proportion of online sales necessitates significant advertising spending to attract new customers, and the recent expansion into lower-margin product categories has added pressure on profitability. Currently, Shein's marketing expenses account for about 16% of its revenue, up from 11% three years ago.Last year, Shein's operating profit margin was only 4.1%, roughly half that of Swedish fashion retailer H&M and about one-fifth of the margin for Inditex, the parent company of Zara.The Wall Street Journal noted, "Shein has yet to clearly demonstrate a concrete growth strategy," adding that the company's plans for 'customer acquisition' and 'product expansion' are somewhat abstract, making it difficult for the market to accurately assess its future value.On its first day of trading in Hong Kong, Shein's stock opened below the offering price of HK$48.56. According to the Hong Kong Stock Exchange, Shein's shares fell more than 7% during morning trading, reflecting market concerns about the company's ability to secure new growth drivers amid intensifying competition.Meanwhile, Shein aims to raise approximately HK$13.6 billion by issuing 280 million shares through this IPO. This valuation places the company at around $27 billion, a significant drop from its peak valuation of $100 billion when it rapidly captured the global fast fashion market in 2022. 2026-09-01 11:00:00