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KGC Increases Production Ahead of Chuseok Holiday at Wonju Factory On August 27, a visit to the KGC's Wonju factory revealed a bustling production line. Dressed in sanitary caps and clean suits, the first sight was the machines operating continuously. Pouches of red ginseng moved fluidly along the conveyor belt, while robots with multiple arms swiftly picked them up and placed them into boxes.With Chuseok just over a month away, the Wonju factory was in full swing to meet holiday demand. KGC's sales during major gift seasons, including Chuseok, Seollal (Lunar New Year), and May's Family Month, account for more than half of its annual revenue. To ensure a steady supply, the factory's total production for this Chuseok season has increased by 18.3% compared to normal levels, with production of its flagship products, Everytime and Hong Sam Ton, rising by 49.3%. This translates to approximately 6.07 million more pouches produced compared to last year's Chuseok season.In response to the increased production, the factory's operating hours have also extended. Stick fillers run for 22 hours a day, excluding cleaning and maintenance. Some processes are now operating on a two or three-shift basis. KGC's Wonju factory manager, Choi Jae-hwan, stated, "When production plans increase, we switch processes from two shifts to three and run the machines at full capacity. Currently, the production line is operating at maximum efficiency."The Wonju factory, established in 2015, is a key production hub for KGC's stick and pouch products. Spanning 186,962 square meters with a total floor area of 75,548 square meters, it is the largest single-source red ginseng manufacturing facility in the world. The factory can produce up to 200 million pouches of products like Hong Sam Ton and 80 million sticks of Everytime annually, with around 83 different products, including Everytime, Hong Sam Ton, and Cheonnok Ton, manufactured on-site.The production process begins with the handling of fresh ginseng. After being harvested, the ginseng is sorted by size and grade, followed by a primary wash using water's rotational force. High-pressure water sprays from above and below remove any remaining soil and impurities. The cleaned ginseng is then steamed and air-dried to become red ginseng.KGC uses 100% contract-farmed ginseng. The soil is managed for about two years before planting, followed by six years of cultivation. Fresh ginseng is brought to the Wonju factory from late August to early November each year. As the peak processing period approaches, the washing and steaming processes were relatively quiet during the visit. However, moving to the filling and packaging area, the atmosphere shifted noticeably with the sounds of machines operating continuously.After drying, the red ginseng is cut into small pieces and extracted for about 72 hours, followed by cooling, centrifugation, and concentration to create red ginseng extract. This extract is then combined with other ingredients and sent to the filling line. As long film enters the machine, it is shaped into pouches, and the mixture is injected sequentially.In the inspection line, a vision inspection device scans each product for defects. Utilizing AI deep learning technology, the equipment detects leaks or visual abnormalities. Any problematic products are immediately removed from the production line.Products that pass inspection undergo weight verification and sterilization before heading to the Delta robot. With multiple slender arms, the robot swiftly picks pouches from the conveyor, placing ten at a time into designated areas. If the front robot misses a product, the back robot fills the gap. This process, which previously required about 20 workers, is now handled by a single Delta robot capable of packaging up to 42,500 pouches per hour. The entire Wonju factory can produce up to 1.3 million pouches daily, with very few visible workers on the floor compared to the machines.Once packaged, the boxes travel along the conveyor to the logistics warehouse, where product stacking and shipping are also automated. A factory representative noted, "Products are stacked up to the height of a ten-story apartment. By simply entering a number, the stacker crane moves to the designated location to retrieve and transport the products."Even with reduced human involvement in the automated processes, quality control remains stringent. The Wonju factory was the first in the health supplement industry to receive Smart HACCP certification in 2022 and obtained Smart GMP certification for automatic management of raw material weighing in 2024. Last year, it was recognized as a '2025 HACCP Excellent Business' by the Korea Food Safety Management Certification Agency.Choi emphasized, "The strengths of the Wonju factory lie in its quality control system, production facilities, and scale. We take pride in having world-class production equipment and capacity." 2026-09-01 06:04:00
Yair Netanyahu Returns to Israel from Florida Amid Iranian Threats Yair Netanyahu, the 35-year-old son of Israeli Prime Minister Benjamin Netanyahu, has returned to Israel from Florida due to threats against his safety from Iran, according to reports from AP and other foreign media on the 30th.Israel's domestic intelligence agency, Shin Bet, confirmed the threat against Yair in a statement. Shin Bet stated, "There was a tangible threat to Yair Netanyahu's safety, and after assessing the situation, we decided to evacuate him and his security team to Israel," as reported by the Jerusalem Post.The news of Yair's return was initially reported by the conservative U.S. outlet Newsmax. Citing sources, the outlet claimed that Iranian agents had already been dispatched to the Miami area where Yair resides, monitoring his residence and movements. It also reported that Yair left for Israel immediately without packing his belongings.The threat against Yair has also been acknowledged by Prime Minister Netanyahu himself. In an interview with Channel 14 last week, he stated that Iran was attempting to assassinate his son. However, he did not specify whether the target was his eldest son Yair or his younger son Avner.Yair, who moved to Miami in 2023, has been living abroad while Israel engages in conflicts with Gaza, Lebanon, and Iran. AP reported that Yair has occasionally acted as an unofficial advisor to his father, Prime Minister Netanyahu, and has stirred controversy with his statements on social media.On August 28, Yair posted on social media platform X that the Falkland Islands are Argentine territory. The Falklands, located near Argentina, have long been a point of contention between the U.K. and Argentina, leading to backlash in Britain. In response, Yair stated, "The number of casualties caused by British forces in Afghanistan and Iraq is greater than those in Gaza," adding that neither country had ever attacked or posed a direct threat to Britain.Yair also attracted attention this year by changing his name to 'Yonatan Hoon' on his Israeli tax return. According to local daily Haaretz, Yair filed his 2026 tax return under the name Yonatan Hoon, but his address and registration number remained the same as in the 2024 return. Yonatan is the name of Yair's uncle, and Hoon is his maternal grandfather's surname.The Times of Israel reported that the intention behind Yair Netanyahu's desire to be identified by a new name is unclear. However, he continues to use his birth name, Yair Netanyahu, on social media. His father, Prime Minister Netanyahu, also used the name Ben Nitai while working at MIT in the 1970s, which he explained was to make it easier for Americans to pronounce.Yair, who is active as a right-wing podcaster, has a strong presence on social media. In his podcast, he comments on Israeli politics and criticizes his father's political opponents as well as journalists who are critical of the government, according to Al Jazeera.* This article has been translated by AI. 2026-09-01 05:32:00
Yoon Bok, Head of the Military Arts Troupe, Says 'No' to No “During the height of COVID-19 in 2020, there was a shortage of masks. I often saw soldiers wearing regular masks for long periods, which caused them ear pain. I remember asking a company to donate 10 million protective masks,” said Yoon Bok, head of the Military Arts Troupe, during an interview at his office in Yongsan, Seoul.Yoon's smile was evident as he spoke about his children and his long-standing connection with the military, which began in 1989. Like his older brother, who entered the Army Academy, Yoon initially aspired to be a career soldier. However, after completing basic training, he was assigned to manage inmates in a prison, leaving him with a sense of regret.Reflecting on his journey, Yoon recalled, “After establishing a stable distribution business in Seoul, I started donating pork to a military unit in Inje, where a friend served as an MP. That’s how my path of giving began.” Initially, he found joy in simply providing delicious meat to soldiers and seeing their happy faces.“People around me thought I would stop after a few times, but word spread to other units, and I began receiving requests to visit them as well,” he said.In early 2015, while delivering supplies to various military units, Yoon received a request to organize a performance for one of the units. Despite having no experience in event planning, he didn’t hesitate, knowing it was for the soldiers. He reached out to a former elementary school senior who worked at KBS, which helped him secure performers and necessary equipment.“When the military requests something from me, I never say 'no.' I find a way to fulfill at least half of their request. This has built trust and goodwill over the years,” Yoon stated.In 2015, he established a nonprofit organization to provide systematic support. He organized performances and lectures, created a book café, and initiated 'Jajangmyeon Day' to provide meals for soldiers. His book concert, titled 'Reading Changes the Future,' became popular, allowing soldiers to share their thoughts with reading coaches during visits to their units.“I visit frontline units and remote bases at least 60 to 70 times a year. Last year alone, we supported over 80 units with the book café and conducted more than 120 lectures. Overall, I estimate I have been active in nearly 2,000 events,” he explained.Over the past 38 years, Yoon has donated over 10 billion won to the military. He contributed 1.5 billion won in 2024 and 1.2 to 1.3 billion won in 2025. In December of last year, he received a letter of appreciation from Defense Minister An Gyu-baek.His phone rang continuously during the interview, coordinating next week’s schedule. As the 'big brother' of the military, 80% of his social media friends are soldiers.“When evaluating organizations for business contracts, I hope there will be a qualitative assessment of how long they have supported the military, in addition to quantitative measures like revenue. Honestly, it’s a tough job. But the military feels like family to me. I will continue my work until I grow old and pass away,” he emphasized.A military official visiting the Military Arts Troupe office glanced at Yoon and murmured, “There really is no one like him.”* This article has been translated by AI. 2026-09-01 05:04:10
Dennis Hong: South Korea Must Forge Its Own Path in Physical AI Dennis Hong, a professor at UCLA and director of the RoMeLa research lab, outlined a distinct survival strategy for South Korea amid the escalating competition in 'Physical AI' led by the United States and China. He emphasized that South Korea cannot simply replicate the approaches of these two nations, which have strong ecosystems and capital in AI and hardware, respectively.In an interview with Aju Economy on August 29, Hong stated, "It will become increasingly difficult to simply categorize the U.S. as AI (software) and China as hardware." He highlighted the importance of iteration speed in Physical AI, which involves creating and deploying robots to gather data, learn, and improve. He noted that the key factor is not who creates the best design but who can evolve the technology the fastest.Hong identified South Korea's manufacturing base as a unique strength. He remarked, "South Korea has a solid foundation in semiconductors, automobiles, batteries, electronics, and precision manufacturing." He stressed that South Korea should not engage in a numbers game by trying to produce the same humanoids as the U.S. and China. Instead, the country should focus on integrating its globally competitive industries with Physical AI to excel in specific fields.He particularly pointed out the significance of 'on-site data' already possessed by major South Korean companies like Samsung, Hyundai, and LG. While generative AI relies on data sourced from the internet, the critical data for Physical AI is found in real-world applications. He stated, "Not every company needs to create a general-purpose humanoid. We should leverage the strengths of large corporations that already have products, factories, supply chains, and actual usage scenarios to identify tasks for robots, gather data, learn, and establish a cycle of improvement."However, he also mentioned the need to address 'social trust' as a challenge in combining manufacturing data with Physical AI. Concerns about job loss and data ownership disputes must be proactively resolved during the process of training AI with workers' skilled knowledge.Hong noted, "Workers may think, 'If I teach my skills to AI, will I lose my job?'" He emphasized the necessity for a framework to clarify data ownership, consent, and how the value generated from that data will be shared.Additionally, he cautioned against the exaggerated hype surrounding the technological advancements in Physical AI. He explained, "Achieving success in a pilot program is entirely different from deploying a system reliably in the field all day long." He added that predicting how many humanoids will be deployed in a few years is challenging in an environment where technological progress and hype coexist. He concluded, "The most significant change will be robots evolving from mere programmed machines to machines that learn and adapt. It is more important to demonstrate reliability and economic value in real-world applications."Known as the 'Leonardo da Vinci' of robotics, Hong shared his research philosophy of aiming for creative, innovative, yet warm robots. He stated, "The most important value of robots is not that they work cheaper than humans, but that they take on tasks that are dangerous for people." He explained that robots should replace humans in hazardous environments such as disasters, fires, nuclear accidents, and toxic settings. He added, "The warmth should come not from the robot's heart but from the heart of the person who creates it, and it is crucial to consider for whom and for what purpose the technology is being developed."* This article has been translated by AI. 2026-09-01 05:04:10
AI Adoption Grows Among Large Companies, Widening Gap with SMEs As generative artificial intelligence (AI) rapidly penetrates industrial sectors, a widening gap in AI utilization between large and small businesses has emerged. The shift of AI responsibilities from simple tasks to core functions such as software development, supply chain management, and marketing has made the cost burden of AI a pressing issue for companies. AI is evolving into a 'core talent' for businesses, accelerating the restructuring of management frameworks.According to a report released on August 31 by global consulting firm McKinsey & Company, titled 'The State of AI in 2026: On the Road to ROI,' 40% of companies with annual revenues exceeding $1 billion reported using at least one AI agent. This marks a 13 percentage point increase from last year’s 27%. In contrast, the utilization rate of AI agents among companies with revenues below $1 billion remained steady at 22%.McKinsey's analysis highlights a clear disparity in the pace of AI adoption between large corporations and small to medium-sized enterprises (SMEs). The stages of AI agent adoption also varied significantly by company size. Among firms with revenues over $1 billion, 40% are in the full-scale deployment phase, followed by 27% not yet adopting, 17% in pilot phases, and 16% in experimentation. For companies with revenues under $1 billion, the highest percentage, 41%, have not adopted AI, while 22% are in full-scale deployment, 19% in experimentation, and 18% in pilot phases. The most widely used tool is AI chatbots at 47%, followed by AI agents and software coding agents, each at around 20%.Forty-four percent of respondents indicated that AI has entered a full-scale expansion phase, a 6 percentage point increase from last year. However, the perceived impact of AI adoption varies significantly by company size. Among firms with revenues over $1 billion, 54% reported positive effects, exceeding the average by 10 percentage points, while SMEs reported only 33%, which is 11 percentage points below the average.By industry, the technology sector, including IT, knowledge management, and software engineering, had the highest utilization rate at 31%, followed by consumer goods and retail marketing at 15%, and advanced manufacturing sectors such as automotive, aerospace, and semiconductors at 14%. McKinsey noted, 'In the technology sector, coding; in consumer goods retail, marketing; and in advanced manufacturing, supply chain and production are the battlegrounds for AI deployment,' indicating that AI is being applied first to the most cost-intensive core functions.AI agents are also reshaping corporate IT budget allocation. A notable trend is the reduction in software purchasing costs through the use of coding agents. Survey results revealed that one in five companies is building software in-house instead of purchasing it. Consequently, 32% reported having never purchased one or more software products. By industry, the highest rates were in technology (41%), healthcare (39%), services (38%), and energy and materials (38%).Riven van der Beek, a senior partner at McKinsey & Company, stated, 'The rise of software coding agents is fostering a culture of in-house development, shifting the trend among large corporations that previously emphasized external partnerships for AI technology development. AI is transforming companies from consumers in the software market to producers, leading to more cautious IT budget execution.'The primary challenge for companies remains the cost burden of AI. The survey found that two out of ten companies reported that operational costs, including token fees, are limiting their AI utilization. Recently, AI agents have evolved into a cost structure that increases with model call volumes and data processing.Despite the cost burden, six out of ten companies indicated they plan to increase AI investments over the next year. Notably, companies that have achieved tangible results from AI—defined as those where AI has impacted EBIT by at least 5%—show a stronger intent to expand investments.However, Dan Tinkoff, a senior partner, cautioned, 'While 80% of respondents feel improvements from AI, only 37% have seen actual contributions to their EBIT. Companies need to build operational models that fundamentally redesign workflows based on AI.'* This article has been translated by AI. 2026-09-01 05:04:00
AI Adoption: Profitability Becomes Key to Sustainability Amid the accelerating adoption of artificial intelligence (AI), profitability has emerged as a crucial factor for sustainability. Improvements in AI productivity at the individual employee level have yet to translate into enhanced financial performance for companies. The burden of high operational costs, including expensive tokens, has made AI utilization strategies increasingly important for businesses.According to a report released on August 31 by global consulting firm McKinsey & Company, titled "The State of AI in 2026: On the Road to ROI," financial performance among companies using AI has not improved. Only 37% of respondents reported that AI contributed to their earnings before interest and taxes (EBIT), a figure consistent with last year. The report surveyed 1,719 employees from companies and institutions across 97 countries.McKinsey classified companies that increased EBIT by more than 5% through AI as "high-performing companies," but only 6% fell into this category. While more companies are adopting AI, improvements in financial performance have stagnated.Consequently, securing profitability has become the primary variable for AI adoption. One in five companies reported facing pressure from operational costs, including token expenses. The use of various AI tools, such as chatbots and software coding agents, is constrained by these costs.Although individual token prices are decreasing, the consumption and generation of tokens required for advanced reasoning and agent-based software development are rising more rapidly. Managing "tokenomics"—the balance of AI costs and ROI—has become a new challenge for companies.McKinsey pointed out that the key differentiator in profitability among companies lies in their approach to AI adoption. High-performing companies aim not only for cost reduction but also for growth and innovation. They tend to fundamentally redesign workflows rather than merely adding AI to existing tasks. In fact, three-quarters of high-performing companies reported that they have fundamentally restructured their processes as a result of AI utilization.Executive involvement and performance measurement systems also contribute to differences in profitability. High-performing companies are more likely to have top executives directly engaged in AI initiatives and processes in place to quantify the effects of AI adoption. McKinsey advises that organizations should focus on building operational capabilities that enable them to achieve consistent results, rather than simply increasing the number of AI tools and pilot projects.Ultimately, the focus of AI adoption is shifting from "how much is used" to "how effectively it generates revenue." McKinsey believes that companies that seek solutions by transforming their business rather than merely implementing AI tools are more likely to achieve sustained financial performance.* This article has been translated by AI. 2026-09-01 05:04:00
Robotics Expert Dennis Hong Discusses the Future of Humanoids and Art Professor Dennis Hong, a leading robotics expert at the University of California, Los Angeles (UCLA) and director of the renowned robotics and mechanisms laboratory RoMeLa, is known for turning imaginative futures into reality. Recently, he has gained attention as an experimental artist. Ahead of his keynote speech at the 2026 GGGF forum, themed "The Reality of AI Civilization Depends on Physical AI Competitiveness," taking place on September 2 at The Plaza Hotel in Seoul, Hong discussed various topics, including the existential shock brought on by ChatGPT, his philosophical journey into art, and practical solutions for South Korea to thrive amid the U.S.-China competition in physical AI. In an interview with Aju Economy on August 29, Hong remarked, "Many people were shocked by the emergence of OpenAI's ChatGPT, but as an engineer, the intensity of that shock was much greater for me. Over the past year and a half, I have seriously contemplated what makes humans truly human, and I have come to believe that art may be the only field that embodies this essence." He continued, "Unlike AI and robots, which possess perfect calculation and communication systems, human communication is inherently imperfect and inefficient. Singing, moving, or expressing complex emotions through poetry and literature are all imperfect ways of communication, but that is precisely what art is." With this realization, Hong began creating works using robotic technology and has gained recognition as an artist. He is set to travel to Austria for the prestigious Ars Electronica media art festival after participating in the Hong Kong and Shenzhen Biennales. In November, he will hold a solo exhibition in Shenzhen, and his works will soon be featured at the National Museum of Modern and Contemporary Art. Having introduced the world's leading bipedal humanoid, Artemis, Hong has boldly announced his retirement from humanoid development. He stated, "The role of academia is to explore 'new realms that do not yet exist.' The control technology for bipedal humanoids has been made open-source with Artemis, and it has quickly become commercialized, particularly in China and other countries." He added, "Currently, I am focusing on research related to 'robot hands' and 'flesh.'" * This article has been translated by AI. 2026-09-01 05:04:00
Private Museums Face Closure Amid Government Trust Issues Filling the Cultural Void Since 19911991 marked a turning point in South Korea's cultural infrastructure with the enactment of the Museum and Art Gallery Promotion Act. At that time, the first Minister of Culture, Lee O-young (1934–2022), proposed establishing 1,000 museums and galleries across the country within a decade. This vision inspired numerous private collectors, local leaders, and small business owners to build museums and galleries, effectively shouldering the cultural infrastructure that the state was expected to finance.Now, over 30 years later, the achievements are significant. According to the 2023 Private Museum Report by Larry's List, in collaboration with the University of Amsterdam's sociology department, South Korea ranks third globally in the number of privately established contemporary art museums, following Germany (60) and the United States (59), with 50 such institutions. In terms of cities, Seoul leads the world with 17 private art museums, surpassing Berlin (14), Beijing (11), and New York (10).Considering that 82% of private contemporary art museums worldwide were established after 2000, South Korea's private cultural infrastructure has achieved remarkable growth in a relatively short time. This goes beyond mere statistics; it demonstrates that Lee's vision was predicated on individual dedication rather than budgetary allocations, and this premise has effectively operated over the past three decades.K-Culture's Rise Supported by Private MuseumsBehind the dazzling emergence of K-Culture lies the dedication of private museums that have collected and preserved cultural heritage over decades, often at their own expense. The government has also encouraged these institutions to register formally under the Museum and Art Gallery Promotion Act and has consistently demanded they fulfill public functions.While the National Museum of Korea and the National Museum of Modern and Contemporary Art attract large annual visitor numbers, private museums collectively draw over 27 million visitors, exceeding the combined total of 24 million for the National Museum and the National Museum of Modern and Contemporary Art. Approximately 4,000 people are employed in private museums, contributing significantly to job creation. The number of collections in private museums rivals that of the National Museum of Korea, with a much greater variety. Importantly, these institutions have maintained principles of public service and non-profit status, fulfilling roles in cultural welfare and education outside of formal schooling.Government Support and Challenges for Private MuseumsThe government has provided various forms of support to private museums. The Ministry of Culture offers monthly subsidies of 1.6 million won for up to two curatorial and educational staff members, with museums contributing 400,000 won monthly. In 2020, a total of 54.69 billion won was allocated to support 287 personnel. Last year, 11 billion won was invested in museum promotion, an increase of 2.8 billion won from 2019. However, this amounts to only about 30 million won per museum annually, insufficient to cover even one to three months of facility management costs.It is crucial to note that these private cultural infrastructures are not merely the domain of conglomerates or large corporate foundations. While large museums established by corporations exist, most private museums are built by individual collectors, local artists, retired educators, and small business owners who have invested their life savings into creating small exhibition spaces. Many private museum founders have sold real estate in prime areas of Seoul to fund their museums in rural areas. For them, establishing a museum is not a means of wealth accumulation but a commitment to return their lifelong artistic passion and collections to the public.The founders of these museums often exhibit a lesser degree of ownership over their collections, reflecting a strong public consciousness. The challenges they face in becoming incorporated are not due to a desire to withhold their assets from society but stem from the financial burden of endowing the required assets for incorporation after having already invested in establishing and operating the museum. Cultural foundations aimed at exhibitions or performances have slightly lower requirements than scholarship foundations, but practically, they require endowments of 300 million to 700 million won to establish.While it is theoretically possible to endow the museum's building, land, and collection, the requirement to also endow a certain amount of cash or liquid assets poses a significant barrier to establishing a foundation. Additionally, transitioning to a public interest corporation entails administrative and legal burdens that small private museums find difficult to manage, effectively limiting this option to larger institutions with capital and administrative resources.Inheritance Tax Threatens Museum SustainabilityThe reluctance of private museum founders to incorporate stems not only from tax benefits but also from fears of losing control over their collections and facilities. Regulations limiting the number of board members to one-fifth of the total from the founder and their relatives conflict with the realities of small private museums. This restriction can lead to founders being outnumbered on the board, risking their influence and even the operational rights of their heirs. There have been instances where founding families were excluded from the board, further discouraging incorporation.The unique characteristics of private museums necessitate the establishment of separate governance standards. Moreover, the societal perception that equates these institutions with mere leisure activities for the wealthy must be corrected.Cultural Accessibility Lags Behind Growing DemandDespite the dedication of private museums, cultural accessibility in South Korea remains low on an international scale. A report from the Korea Research Institute for Human Settlements compared cultural accessibility in Seoul and Berlin using the Enhanced Two-Step Floating Catchment Area method. The results were stark: the median accessibility for libraries was 0.168 in Seoul compared to 0.216 in Berlin, while museum and gallery accessibility was 0.121 in Seoul versus 0.205 in Berlin, indicating a significant gap. For performance venues, Seoul scored 0.000, indicating almost no accessibility, while Berlin scored 0.088. The only area where Seoul excelled was in commercial cinemas (Seoul 0.078, Berlin 0.015).The regional imbalance is even more alarming. The Gini coefficient for performance venue accessibility in Seoul is 0.969, and for museums and galleries, it is 0.827, highlighting the extreme concentration of cultural facilities in the capital. This contradiction, where the number of private museums approaches a global standard yet citizens struggle to access these facilities, underscores the value of each existing private cultural institution.Inheritance Tax Undermines Museum Promotion LawThe grim reality behind the apparent prosperity of private museums is stark. After responding to government encouragement to open museums and protect artifacts for a lifetime, founders face a 'tax bomb' and the threat of closure when attempting to pass the museum to their children. While the government imposes regulations and obligations on these institutions as public assets, it treats them as private property under tax law, applying the full weight of taxation.Under the 1991 Inheritance Tax Act, private museums registered under the Museum Promotion Act were exempt from inheritance tax on real estate and collections. However, the 1996 revision of the Inheritance Tax and Gift Tax Act limited this exemption to museums operated by public interest corporations. Many private museum operators still believe they are exempt from inheritance tax on their buildings, land, and collections, due to assurances from the government, particularly from then-Minister Lee O-young. However, the tax reform was implemented unilaterally without sufficient consultation with private museums. Despite this, the museum community continues to trust the government's initial promises.Currently, the law stipulates that private museums established or inherited by individuals are not exempt from inheritance tax on buildings, land, or collections. The law's language clearly indicates that only museums operated by public interest corporations qualify for tax exemptions. This legal reality means that even if a private museum has been registered and has diligently exhibited and preserved culturally significant collections, it is treated as a mere storage facility for private property under tax law.As a result, the collections of many private museums are subject to heavy inheritance tax rates, reaching up to 50%, as their values are combined with other personal assets. The only legal way to avoid this tax bomb and maintain the museum's existence is for heirs to endow the entire museum's assets to establish a public interest corporation within the inheritance tax reporting period. Only after this transition can they claim the benefits of tax deferral under the Inheritance Tax Act and potentially seek exemptions for real estate used for public purposes.Asymmetry Between Collections and Real EstateEven if a private museum successfully transitions to a public interest corporation to meet the inheritance tax deferral requirements, it cannot fully escape the burden of inheritance tax. The Inheritance Tax Act only applies to movable assets, while the buildings and land housing these collections fall outside its scope. To exempt real estate from inheritance tax, a separate procedure must be followed to endow the ownership of the museum's building and land to the public interest corporation. This creates a paradox where artifacts may be preserved while the buildings housing them are not, leading to the issue of 'homeless collections.' Deferral merely postpones tax payment, while endowment relinquishes ownership, creating an imbalance.Thus, even private museums that have successfully transitioned to public interest corporations find themselves in a dual disadvantage. First, if they are not public interest corporations, they receive no tax benefits for either collections or buildings. Second, even if they become public interest corporations, the benefits differ between collections and real estate. While real estate endowed to a public interest corporation is exempt from inheritance tax, collections owned by heirs can only receive tax deferral if they are displayed in the museum.To receive tax deferral, heirs must provide collateral equivalent to the deferred tax amount, and while certain cultural heritage items are exempt from collateral requirements, museum collections do not enjoy such exceptions. Consequently, private museum founders must provide collateral in the form of real estate, stocks, or financial guarantees, highlighting the flaws in this system.However, if the ownership of the collections is transferred to a public interest corporation, complete exemption from inheritance tax is possible. The disparate treatment of collections and real estate reflects a gap in the tax law that fails to adequately support museums, placing the burden on founders and their heirs.The government has introduced the 'Family Business Inheritance Deduction' system to support the sustainability of small businesses. This aims to prevent the discontinuation of family businesses by reducing inheritance tax by hundreds of millions of won. However, in the 30 years since its introduction, the operation of 'libraries, museums, and art galleries' has never been included in the list of eligible sectors for tax deductions. The noble act of preserving national cultural heritage has been treated the same as general service industries or real estate leasing under tax law.In the past, the National Tax Service has firmly rejected tax deductions for private museum collections, arguing they are not business assets directly used in the family business. The government has imposed a uniform requirement that private museums transition to public interest corporations to receive tax deferrals, disregarding the diverse ecosystem of private museums.Government's Role in Cultural PreservationThe government has a responsibility to preserve, research, and exhibit cultural heritage. However, ordinary individuals, not conglomerates, have shouldered this responsibility for over 30 years, resulting in South Korea ranking among the top countries in the number of private museums. Yet, citizens' access to culture remains below that of advanced cities, and the infrastructure to meet growing cultural demand is still lacking. In this urgent situation, allowing existing private assets to be scattered due to a single tax provision is a clear dereliction of duty by the state.If the government has offloaded responsibility under the guise of 'registration,' it must also provide corresponding compensation under the banner of 'protection.' If the government does not expedite the implementation of reasonable systems that allow for tax deferrals or exemptions in exchange for maintaining cultural facilities, the private cultural foundation built over generations will quietly disintegrate.The conclusion is clear: tax deferrals for inheritance tax and benefits for donations hinge on whether the museum is incorporated and, more specifically, whether it has received individual designation from the Ministry of Economy and Finance. This structure implies that the government is essentially telling individuals not to register their museums unless they are willing to relinquish their assets through incorporation.The current system imposes heavy public responsibilities on registered private museums while offering no tax protections. This imbalance must be addressed to ensure the sustainability of private museums and the cultural heritage they preserve.* This article has been translated by AI. 2026-09-01 01:08:00
Gyeongbokgung's royal refreshments: A taste of Joseon “King Munjong’s Refreshment Set” is displayed during a rehearsal for the 2026 fall season of the “Gyeongbokgung Saenggwabang” program at Gyeongbokgung Palace in Jongno-gu, Seoul, Aug. 31, 2026. The program, scheduled to run from Sept. 2 to Oct. 26, will be held under the theme “The Story of the Brilliant Father and Son of the Joseon Royal Family.” Two new refreshment sets inspired by King Sejong and King Munjong will be presented during the fall season. AJP Yoo Na-hyun 2026-09-01 00:25:38
Gyeongbokgung's royal refreshments for 2026 “King Sejong’s Refreshment Set” is displayed during a rehearsal for the 2026 fall season of the “Gyeongbokgung Saenggwabang” program at Gyeongbokgung Palace in Jongno-gu, Seoul, Aug. 31, 2026. The program, scheduled to run from Sept. 2 to Oct. 26, will be held under the theme “The Story of the Brilliant Father and Son of the Joseon Royal Family.” Two new refreshment sets inspired by King Sejong and King Munjong will be presented during the fall season. AJP Yoo Na-hyun 2026-09-01 00:23:24