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  • Market Volatility Drives Shift to Short-Term Bank Deposits
    Market Volatility Drives Shift to Short-Term Bank Deposits There is a noticeable trend of funds moving back into bank deposits, referred to as a 'reverse money move.' In particular, over 20 trillion won has flowed into short-term deposits with maturities of less than six months in just one month. This shift follows two consecutive interest rate hikes by the Bank of Korea and increased volatility in the stock market, leading consumers to prefer shorter maturities to better respond to market conditions.As of August 27, the total balance of time deposits at the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—was recorded at 1,000 trillion 964.7 billion won. This marks an increase of 16.2 trillion won from the end of July (984 trillion 939.9 billion won) and over 51 trillion won from the end of June (949 trillion 399.8 billion won). This is the first time the balance of time deposits at these banks has exceeded 1,000 trillion won.Notably, there has been a rapid influx of funds into short-term deposits with maturities of less than six months. As of the end of June, the balance of these deposits stood at 238 trillion 366.2 billion won, reflecting an increase of 20.9 trillion won from the previous month. This monthly increase is the largest since November 2022 (25.3 trillion won). In contrast, the balance of time deposits with maturities of three years or more decreased from 27.1 trillion won to 26.6 trillion won during the same period.Market analysts attribute this trend to a growing demand for shorter-term investments in response to the uncertain financial market. Consumers are opting for shorter maturities, allowing them to reassess interest rates and market conditions at each maturity date before deciding on reinvestment or other investment options.In fact, the speed of fund management has also increased. As of the end of June, the turnover rate of deposits at banks was 5.3 times, the highest level recorded this year. A higher turnover rate indicates that funds are remaining in accounts for shorter periods and that there is active movement of capital.The relatively low attractiveness of long-term deposit rates is also influencing this trend. Currently, the major banks offer interest rates for six-month deposits at around 3.00% to 3.05% per annum, while one-year deposits yield about 3.20% to 3.25%. In contrast, three-year deposits are yielding only 2.40% to 2.70%, making it less appealing to lock in funds for extended periods without the prospect of higher returns.A financial industry official stated, "As market volatility increases, there is a growing demand from customers seeking safe assets. Banks have little incentive to attract high-interest long-term deposits, so the trend of customers gravitating toward short-term products is likely to continue for the time being."* This article has been translated by AI. 2026-08-30 16:04:00
  • Interest Rates Rise to 3%: Securities Account Interest Rates Vary by Amount
    Interest Rates Rise to 3%: Securities Account Interest Rates Vary by Amount Despite the domestic base rate rising to 3%, the interest rates paid by securities firms on customer deposits remain significantly lower. For a deposit of 1 million won, Mirae Asset Securities offers the highest rate, while Samsung Securities leads for deposits of 100 million won. The difference in interest earned over a year can reach up to 650,000 won depending on the firm.According to the Korea Financial Investment Association on August 30, the interest rates on Korean won deposits vary widely among the top 10 securities firms based on their capital and the amount deposited. Following two consecutive rate hikes by the Bank of Korea on July 16 and August 27, the base rate increased from 2.50% to 3.00%. While some firms have adjusted their deposit interest rates, the levels applied differ significantly.Starting September 1, Mirae Asset Securities will apply an annual rate of 2.25% for deposits of 1 million won, the highest among competitors. This is followed by Kiwoom Securities at 2.00%, Hana Securities at 1.75%, Meritz Securities at 1.50%, Samsung Securities at 1.05%, KB Securities and Daishin Securities at 1.00%, and NH Investment & Securities at 0.80%. Korea Investment & Securities offers 0.70% for amounts over 500,000 won, while Shinhan Investment & Securities will apply 0.70% across all amounts starting September 7.If 1 million won is maintained for a year, the pre-tax interest earned from Mirae Asset Securities would be 22,500 won. Mirae Asset is increasing its rate for amounts under 1 million won from 2.00% to 2.25%, while maintaining 0.60% for amounts over 1 million won.As the deposit amount increases, the rankings change. Samsung Securities applies a flat annual rate of 1.05% regardless of the amount. For a deposit of 100 million won held for a year, the pre-tax interest would be 1,050,000 won, the highest among the ten firms.Korea Investment & Securities and Shinhan Investment & Securities offer 0.70% for 100 million won, yielding about 700,000 won, while Hana Securities provides 0.65%, resulting in approximately 650,000 won. Mirae Asset, Kiwoom, KB, and Daishin Securities apply 0.60% for amounts over 1 million won, yielding around 600,000 won. Meritz Securities uses a tiered rate, applying 1.50% for the first 1 million won and 0.60% for the excess, resulting in about 609,000 won. NH Investment & Securities applies 0.80% for up to 1 million won, but the rate for 100 million won is only 0.40%, leading to an annual difference of 650,000 won compared to Samsung Securities.Notably, there is a structure that applies relatively higher interest rates for smaller deposits. KB Securities raised its rate for amounts under 1 million won from 0.85% to 1.00% at the end of June, while lowering the rate for amounts over 1 million won from 0.85% to 0.60%. Kiwoom Securities also applies 2.00% for amounts under 1 million won and 0.60% for amounts over that.A representative from the securities industry stated, "As the base rate rises, investor interest in deposit interest rates may increase. It is essential to carefully examine the rates applied by each firm based on the deposit amount, as they vary significantly."* This article has been translated by AI. 2026-08-30 16:00:00
  • Monayongpyeong Wins 2026 Korea Consumer Trust Brand Award for Resorts
    Monayongpyeong Wins 2026 Korea Consumer Trust Brand Award for Resorts Monayongpyeong, a wellness resort, has been recognized as the resort with the highest consumer trust.On August 27, Monayongpyeong announced that it received the top award in the resort category at the '2026 Korea Consumer Trust Brand Awards' ceremony held at the Novotel Ambassador Seoul Dongdaemun Grand Ballroom.The 'Korea Consumer Trust Brand Awards' selects brands with high consumer trust in various categories based on consumer surveys and expert evaluations.Located in Pyeongchang, Gangwon Province, Monayongpyeong operates a range of leisure and wellness facilities, including hotels, condos, skiing, golf, a cable car, a water park, and an MTB park, all set against the pristine backdrop of Balwangsan, which stands at 1,458 meters above sea level. The resort has been expanding its competitiveness as a year-round destination.Recently, Monayongpyeong has actively enhanced its wellness offerings by utilizing the natural environment of Balwangsan. The resort provides programs that allow guests to experience recovery for both body and mind in nature, further establishing itself as a wellness resort.As part of this initiative, a newly renovated wellness center opened in July, significantly increasing indoor and outdoor offerings such as aqua bar, yoga meditation, jogging, pole walking, and healing walks. The resort has also organized specialized instructors for systematic program management.Additionally, seasonal content has been integrated with natural tourist resources, including the Balwangsan cable car and the Millennium Juniper Forest Trail, along with golf, dining, and cultural events. Monayongpyeong continues to expand its year-round offerings to provide guests with diverse experiences.Yoo In-seong, Executive Director of Monayongpyeong, who attended the awards ceremony, stated, "This award is a meaningful result achieved thanks to our customers who consistently visit and trust Monayongpyeong. We will continue to strengthen our competitiveness as a leading year-round resort in Korea by providing new relaxation and experiences based on the exceptional natural environment of Balwangsan and our unique infrastructure."* This article has been translated by AI. 2026-08-30 16:00:00
  • Rising Costs Force Gimbap Shops to Close Amid Economic Strain
    Rising Costs Force Gimbap Shops to Close Amid Economic Strain As food prices rise alongside wages, gimbap shops, a staple of affordable dining, are closing in increasing numbers. This trend is affecting not only small businesses but also brand-name outlets.According to the National Tax Service's Tax Statistics Portal (TASIS), the number of gimbap shops in South Korea was recorded at 47,863 as of June this year. This marks a continuous decline for 31 months since November 2023, when the number was 54,088. The figure has dropped from 49,913 in September of last year, falling below the 50,000 mark.Gimbap is known for being an inexpensive meal option that combines rice and various vegetables. However, over the past year, the price increase for gimbap has been particularly notable. The Korea Consumer Agency's price information portal reported that the average price of a gimbap roll in Seoul last month was 3,869 won, a 6.8% increase compared to the same month last year. In contrast, the price increases for other foods during the same period were much lower, with kalguksu rising by 3.6%, pork belly by 3.3%, naengmyeon by 2.2%, and jjajangmyeon by 2.1%.From December of last year, the price of gimbap rose from 3,723 won per roll in January to 3,800 won, and then to 3,838 won in June, reaching 3,869 won in July.Gimbap is a labor-intensive dish, meaning that increases in labor costs directly impact its price. The minimum wage rose from 10,030 won last year to 10,320 won this year, a 2.9% increase, with a further increase to 10,700 won expected next year.Additionally, the rising costs of raw materials have contributed to the increase in gimbap prices. Prices for key ingredients, such as seaweed and spinach, have surged due to what is being termed 'hitflation.'According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the average retail price for 10 sheets of dried seaweed has increased from 899 won in 2021 to 1,422 won this year.The trend of gimbap shop closures is not limited to local businesses. Franchise brands specializing in gimbap are also reducing their number of outlets. An analysis of the Fair Trade Commission's franchise business transaction disclosure documents and brand websites revealed that the number of stores for the popular franchise Gobong Min Gimbap has decreased from 591 in 2020 to 383 this year. The operating company, KBM, reported an operating loss of 440 million won in 2024, following a loss of 990 million won last year.Kim Gane, the second-largest gimbap franchise, has seen its number of stores drop from 459 in 2021 to just 335 this year, struggling with declining profitability. Other brands, including Yamsam Gimbap, Ssada Gimbap, and Bardakim Seonsaeng, are also experiencing a reduction in their outlets.As the financial situation worsens, many shop owners are considering closing their businesses. One owner of a gimbap shop in Jeju City stated, "I couldn't withstand the rising prices and ultimately decided to close. The cost of ingredients has increased so much that I determined it would be less of a loss to shut down than to continue operating." 2026-08-30 15:56:00
  • Chinese robotaxis to hit Seoul roads by 2028 under Pony.ai deal
    Chinese robotaxis to hit Seoul roads by 2028 under Pony.ai deal SEOUL, August 30 (AJP) - South Korean autonomous driving firm FutureLink has signed a strategic cooperation agreement with China's Pony.ai to bring 200 robotaxis onto the country's roads, aiming to launch a commercial driverless service in Seoul by around 2028. FutureLink announced the deal on Sunday, saying the two companies sealed it two days earlier at the Conrad Seoul hotel in Yeouido, the capital's main financial district. Pony.ai co-founder and Chief Executive James Peng attended the signing alongside FutureLink Chairman Nam Kyung-pil and Chief Executive Cha Doo-won. The agreement centers on deploying Pony.ai's seventh-generation robotaxis in South Korea as a commercial service. The partners plan to move from technology trials, run in Seoul's Gangnam autonomous driving pilot zone, into full service operation, and later intend to establish a joint venture. FutureLink, the autonomous driving subsidiary of KOSDAQ-listed PonyLink, has driven about 80,000 kilometers without an accident in Gangnam using modified Hyundai Kona EVs, localizing Pony.ai's technology for the Korean market. The company will handle domestic certification, market entry and service operation, while Pony.ai supplies its self-driving technology. The initial fleet of 200 vehicles will be built by China's BAIC Motor. Once certification is complete, the partners plan to expand the service from Seoul to other major cities. "Vehicle certification is the first step toward commercialization," Peng said. "After receiving certification, we plan to put fully driverless robotaxis on Korean roads." Peng added that Pony.ai also plans to deploy more than 4,000 autonomous vehicles across Europe and the Middle East. Addressing concerns over a Chinese firm entering the domestic market, FutureLink said data collected in South Korea would not be sent abroad, and framed the tie-up as a way to strengthen the local industry through technology cooperation. Nam said introducing Pony.ai's advanced technology and widening its localization could benefit not only FutureLink but South Korea's autonomous driving industry as a whole. AJP Takeaways • FutureLink, the autonomous driving unit of KOSDAQ-listed PonyLink, signed a strategic cooperation agreement with China's Pony.ai to operate 200 robotaxis in South Korea, with commercial service targeted in Seoul by around 2028. • The initial fleet, built by China's BAIC Motor, will use Pony.ai's seventh-generation robotaxis; FutureLink has driven about 80,000 kilometers without an accident in Seoul's Gangnam district localizing the technology. • FutureLink will handle domestic certification and operation while Pony.ai provides the self-driving technology, with the partners planning a joint venture and later expansion to other Korean cities. 2026-08-30 15:49:14
  • Choi Tae-won: South Korean and Japanese Youth Should Work Freely for Greater Opportunities
    Choi Tae-won: South Korean and Japanese Youth Should Work Freely for Greater Opportunities Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry and SK Group, proposed creating an environment where South Korean and Japanese youth can work freely across borders. He suggested that a 'South Korea-Japan economic community' could be a solution to the low birth rate issues facing both countries.On August 30, the Korea Chamber of Commerce and Industry held the first meeting of the South Korea-Japan Low Birth Rate Response Exchange Committee and a symposium on low birth rate responses at the Westin Hotel in Sendai, Japan, where they released the results of a 'South Korea-Japan Youth Awareness Survey.'In his opening remarks, Choi stated, "With birth rates in South Korea and Japan halved, demographic changes are not a distant prediction but a reality that businesses and communities are facing now. Both countries have limited time, so we must start with what we can do together to address the low birth rate issue immediately."The low birth rate poses challenges by reducing a nation's growth potential and increasing social costs, which could significantly diminish the future value of both countries.Choi identified the lack of stable employment and income as reasons why young people are hesitant to marry and have children. He argued that the business sector must create quality jobs and transform workplaces to support employees in raising children.He assessed that a South Korea-Japan economic community could create a larger market and help prevent rising social costs. Choi emphasized, "If we enable young people to work back and forth between South Korea and Japan, it will create opportunities for better jobs and higher incomes. There is a need for exchanges between the two countries to extend beyond tourism to local communities."Finally, Choi added, "We must actively utilize new tools like artificial intelligence (AI) to enhance the value created by each young person."* This article has been translated by AI. 2026-08-30 15:32:00
  • Sunchon National University Selected for New Medical School in Jeonnam
    Sunchon National University Selected for New Medical School in Jeonnam Gwangju City has announced that Sunchon National University will be the candidate for the establishment of a new national medical school.On August 28, applications were received from both Mokpo National University and Sunchon National University. A panel of judges selected by the Jeonnam Research Institute evaluated the proposals from the two universities, leading to this decision.The Ministry of Education had requested both Mokpo National University and Sunchon National University to submit plans for the establishment of a national medical school by August 20, with the understanding that a merger was a possibility.However, the two universities were unable to reach an agreement and submitted separate proposals.The Ministry of Education then requested Gwangju City to recommend one candidate university by August 30.Ultimately, Gwangju City selected Sunchon National University as the final candidate.* This article has been translated by AI. 2026-08-30 15:32:00
  • Minister Choi Hwi-young Promotes K-Trekking with French Hiking Group
    Minister Choi Hwi-young Promotes K-Trekking with French Hiking Group Choi Hwi-young, the Minister of Culture, Sports and Tourism, walked with members of a large French hiking organization to showcase the appeal of South Korea's mountain tourism.The ministry announced that on August 30, Minister Choi welcomed 11 members of the French 'Randonnée Association' at the Suyu branch of Bukhansan National Park in Seoul and introduced them to the attractions of mountain tourism.Also present at the event was mountaineer Um Hong-gil, who walked with the association members, exchanging cultural insights about hiking between the two countries.Founded in 1947, the Randonnée Association is a prominent hiking federation in France with 240,000 members. Approximately 40 members visited Korea through a marketing initiative by the Korea Tourism Organization, divided into three groups, each on an 11-day itinerary.They will experience major hiking and walking tourist sites across the country, starting with Bukhansan, followed by Andong's Hahoe Village, Gyeongju's Namsan, Busan's Geumjeongsan, Suncheon Bay, Jirisan, and a temple stay at Hwaeomsa.This visit serves as an opportunity to directly assess the outcomes of the 'K-Trekking Challenge' campaign, jointly promoted by the Korea Tourism Organization and the Korea National Park Service. The two organizations signed a memorandum of understanding in July, aiming to attract 3 million visitors to national parks by 2028.Foreign tourists visiting four national parks, including Bukhansan, Seoraksan, Odaesan, and Gyeongju, until November will receive free rentals of nine types of safety equipment, such as hiking boots, poles, and backpacks, through the global online travel agency CreateTrip, along with a commemorative gift (keychain).The ministry plans to develop mountain tourism as a high-value tourism content that encourages extended stays, linking it with local natural and cultural resources to boost regional consumer spending.“Korea has distinct four seasons, with beautiful and diverse mountains, along with rich historical and cultural resources, making it an attractive destination for walking tours,” said Kang Jeong-won, head of the ministry's tourism policy division. “We hope the visit of the Randonnée Association members will help promote Korea's walking tourism to the world.”* This article has been translated by AI. 2026-08-30 15:28:10
  • Small Business and Startup Sectors Welcome Lee So-youngs Nomination as Minister
    Small Business and Startup Sectors Welcome Lee So-young's Nomination as Minister The nomination of Lee So-young, a member of the Democratic Party, as the Minister of the Ministry of SMEs and Startups has been met with widespread approval from the small business, microenterprise, women entrepreneurs, and startup sectors. Various organizations urged the nominee to leverage her policy experience and expertise to enhance the competitiveness of small and venture businesses through effective communication with the field.The Korea Federation of SMEs issued a statement on the same day, noting, "Lee has worked to improve regulations for innovative companies through her involvement in the National Assembly's startup research group, 'Unicorn Farm.' We expect her to implement effective policies to address challenges such as artificial intelligence (AI), digital transformation, global market entry, and overcoming the polarization of K-shaped growth faced by small businesses."The federation added, "If appointed as minister, she should closely communicate with the small business sector to resolve various on-site challenges, and we will actively cooperate in this effort."The Korea Association for the Promotion of Small and Medium Enterprises (InnoBiz Association) expressed optimism, stating, "The selection of Lee, who has expertise in industrial fields and has been active in the National Assembly's Committee on Trade, Industry, Energy, and SMEs, will serve as a strong catalyst for revitalizing the manufacturing and technology innovation ecosystem."The microenterprise sector also expressed its support. The Small Business Association commented, "This nomination marks a resolution to the two-month vacancy in the ministerial position. We hope it will ensure continuity in small business policies and accelerate the resolution of pressing issues."They further urged, "We hope she actively addresses issues such as stabilizing microenterprise management, strengthening social safety nets, and creating a fair business environment, bringing new hope and vitality to the 7.9 million microenterprises."The venture and startup sectors also expressed high expectations for Lee's policy experience and execution capabilities. The Korea Venture Business Association stated in a release, "We hope that Lee's accumulated policy expertise will be translated into strong execution within the ministry, ensuring that venture and startup companies are not left behind in the technological transformation and can play a leading role in Korea's industrial innovation."The Korea Startup Forum added, "We ask that she become a strong partner in leading the transition to a 'national startup era' and the leap of the startup ecosystem. Given that startups are a key growth engine of our economy and central to the 'AI transformation,' we hope that supportive policies and an operational regulatory environment will be established swiftly."The Korea Venture Capital Association welcomed the nomination, stating, "Lee is the right person to lead support for the domestic venture ecosystem, as she listens to the voices from the field and deeply understands the challenges of the innovation ecosystem. We expect her to inject new energy into the venture investment market."The women entrepreneurs' sector praised the appointment as a demonstration of diversity across generations and genders. The Korea Women Entrepreneurs Association stated in a release, "The selection of a 1985-born female politician as the ministerial candidate overseeing small and medium enterprise policies is highly significant. This appointment reflects the Lee Jae-myung government's commitment to achieving diversity and inclusivity across generations and genders."They added, "We hope that Lee will listen to the voices of small businesses and microenterprises based on her accumulated expertise and policy experience, and actively promote policies for women entrepreneurs."* This article has been translated by AI. 2026-08-30 15:28:00
  • Profile of Kang Shin-cheol, Defense Minister Nominee
    Profile of Kang Shin-cheol, Defense Minister Nominee Kang Shin-cheol, the newly nominated Defense Minister candidate for the Lee Jae-myung administration, has garnered attention for his extensive background. Kang has held various military and security positions across the administrations of Lee Myung-bak, Park Geun-hye, Moon Jae-in, and Yoon Suk-yeol.On August 30, President Lee nominated Kang, who is currently the Ambassador to Saudi Arabia, among six other ministerial candidates, including the Minister of Economy and Finance.Kang Hoon-sik, the Chief of Staff to the President, described Kang as a four-star general with a strong background, having served as the Director of Operations at the Joint Chiefs of Staff. He emphasized that Kang is poised to strengthen South Korea's defense capabilities based on a solid U.S.-South Korea alliance and to promote defense innovation, including the integration of military academies.Born in Seoul in 1968, Kang graduated from Kyungsung High School and the 46th class of the Korea Military Academy, being commissioned as a second lieutenant in 1990. He has built his military career focusing on operations, strategy, and policy while serving in the Ministry of National Defense, the Joint Chiefs of Staff, and the U.S.-South Korea Combined Forces Command.Notably, Kang's career has spanned multiple administrations. He served as an administrative officer in the Blue House during the Lee Myung-bak administration from 2010 to 2011. Under the Park Geun-hye administration, he was a military advisor to then-Defense Minister Han Min-koo from 2016 to 2017.During the Moon Jae-in administration, Kang returned to the Blue House, serving as the Secretary for Defense Reform and the Secretary for Security and Defense Strategy from 2021 to 2022. He later advanced to the position of Deputy Commander of the Ground Operations Command and was promoted to major general.After the inauguration of Yoon Suk-yeol, Kang continued to hold key military positions, first as the Director of Operations at the Joint Chiefs of Staff and then as a four-star general, becoming the Deputy Commander of the U.S.-South Korea Combined Forces Command in 2023. He was the only individual promoted to four-star general from the ranks of major general during the Moon Jae-in administration.The Deputy Commander of the U.S.-South Korea Combined Forces Command is the highest position held by a South Korean military officer within the command. In this role, Kang directly addressed issues related to the U.S.-South Korea alliance and defense posture. He served as Deputy Commander until September of last year before retiring as a four-star general.Even after leaving military service, Kang continued his public career. The Lee Jae-myung administration appointed him as Ambassador to Saudi Arabia in January, where he has played a pivotal role in fostering defense cooperation.After approximately seven months as Ambassador to Saudi Arabia, Kang is now returning as a candidate for Defense Minister. If confirmed, he will be the second Defense Minister under the Lee Jae-myung administration. President Lee previously appointed Ahn Gyu-baek, a civilian and the first in over 60 years to hold the position, but has now chosen a four-star general with a military academy background for the successor role.* This article has been translated by AI. 2026-08-30 15:28:00