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Hyundai Motor Weighs Use of Chinese Parts Amid Cost-Cutting Efforts Hyundai Motor, facing sluggish domestic sales, is considering the use of Chinese parts to enhance its price competitiveness. The company is expanding its sourcing options overseas to reduce costs. However, it finds itself in a dilemma as U.S. regulations on Chinese parts tighten.According to industry sources, Hyundai has begun internal reviews regarding the additional use of Chinese parts to boost price competitiveness. This move is seen as a response to lower production costs and to counter the aggressive pricing strategies of Chinese automakers.Cost reduction is a constant challenge in the automotive industry. Lowering parts procurement costs, which account for about half of total sales, is essential for maintaining price competitiveness. Consumers increasingly prefer vehicles that offer high performance at reasonable prices.The starting price for the newly launched eighth-generation Avante gasoline model is 23.98 million won, an increase of 3.36 million won from the previous model. The top trim now exceeds 30 million won, prompting online reactions that the price of the 'people's car' has become excessively high.The rise in prices is attributed to the burden of production costs, including parts and raw materials. While Hyundai aims to secure price competitiveness by reducing parts procurement costs, the situation remains challenging. According to the Financial Supervisory Service, Hyundai's total sales for the first half of this year reached 95.1542 trillion won, with parts procurement amounting to 40.4013 trillion won, or 42.5% of total sales.The value of parts purchased from domestic suppliers was 20.3216 trillion won, down 14.8% from 23.862 trillion won during the same period last year. In contrast, the procurement of raw materials, including steel and paint, increased significantly from 2.2454 trillion won in the first half of last year to 3.0827 trillion won this year, a rise of 37.3%. Despite a 3.7% decrease in domestic production to 907,000 units, the increase in raw material procurement has heightened production cost pressures.In response, Hyundai has recently sought cost-reduction strategies from its primary domestic suppliers, with relatively cheaper Chinese parts emerging as one option. Industry estimates suggest that Chinese automotive parts are, on average, 30% cheaper than domestic alternatives.The South Korean automotive industry has a significant reliance on Chinese parts. According to a report released by the Bank of Korea last month, Chinese parts accounted for 47.2% of domestic automotive parts imports last year. Notably, 100% of automotive chassis imports were from China, along with 99% of body parts, 95% of air conditioning units, 91% of wheels, and 80% of airbags, indicating high dependency on Chinese supplies for certain components.However, Hyundai faces challenges in utilizing Chinese parts indiscriminately. The United States, one of its largest export markets, has intensified scrutiny over illegal transshipments of Chinese products, as highlighted in a report on 'massive transshipment fraud' that claims Chinese goods are being illegally exported to the U.S. via over 40 countries.Industry experts warn that if U.S. regulations on Chinese supply chains expand, costs could rise significantly for automotive parts that heavily rely on Chinese sources, such as electric motors and wiring harnesses. The imposition of tariffs on these items could lead to substantial additional costs for the domestic automotive industry.A Hyundai official stated, "We are keeping the option of China open as one of several choices, considering price competitiveness, quality, and supply stability. However, we are focusing on supply stability rather than relying on parts from a specific country in our strategy."* This article has been translated by AI. 2026-08-24 18:04:00 -
Big Tech Surrenders to Rising Memory Prices, Strengthening Samsung and SK Hynix Nvidia's decision to reflect rising memory prices in its AI server costs has highlighted the negotiating power of Samsung Electronics and SK Hynix. The surge in demand for HBM and server DRAM, driven by increased investment in AI data centers, is affecting the prices of finished products, including smartphones and PCs.According to industry sources, Nvidia recently informed major clients that it may raise the prices of AI server systems scheduled for shipment early next year by more than 15%. This increase will apply to next-generation AI platforms like 'Vera Rubin' and the current generation 'Grace Blackwell.' The actual price hike will vary depending on the memory configuration of each product. Bloomberg identified the rise in memory prices as a key factor behind this decision.AI servers are equipped not only with AI accelerators but also with large-capacity HBM and server DRAM. As investments in data centers surge, memory manufacturers are prioritizing production capacity for AI-related products. The expansion of HBM production is putting pressure on the supply of general-purpose DRAM, driving up overall memory prices.Nvidia's price increase is also impacting its clients. Major cloud service providers like Microsoft and Google are now shouldering the burden of rising Nvidia server prices. Even big tech companies building their own AI data centers are finding it difficult to avoid the impact of rising memory costs.The increase in memory costs is also affecting consumer devices. Apple has recently raised prices on some products, including Macs and iPads. Apple CEO Tim Cook stated that memory costs are rising and are expected to continue to increase in the future. Qualcomm is also reportedly considering passing on the burden of rising memory prices to its product prices.The potential for improved performance for Samsung Electronics and SK Hynix has increased due to these price hikes. If both HBM and server DRAM prices rise, the increase in AI data center investments will directly reflect in the revenues and profitability of memory manufacturers. As competition in AI semiconductors intensifies, the competition for securing memory is also expected to grow.However, memory manufacturers do not have pricing power across all products. China's CXMT is expanding its production of general-purpose DRAM. While Samsung and SK Hynix focus their production capacity on high-value memory for AI, CXMT's increase in supply of general products could slow the upward trend in general DRAM prices.Industry analysts suggest that the current strength in memory prices is linked to the investment structure in AI infrastructure, going beyond mere supply shortages. The competition for AI accelerator performance is leading to a race for HBM capacity, establishing memory as a key component that influences data center construction costs.An industry insider noted, "In AI servers, memory has become a core component that determines both performance and cost, rather than just supporting the GPU. For the time being, Samsung Electronics and SK Hynix are likely to maintain their pricing power in the high-value memory market, where supply is tight."* This article has been translated by AI. 2026-08-24 18:04:00
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Body Believed to Be Missing Woman Found in Jeju, Police Under Fire A body believed to be that of Jang Mi-ran, who went missing in Jeju, was discovered in a palm tree forest in Hanlim-eup, Jeju City, 101 days after her disappearance. This finding has sparked outrage over the police's official statements and the circumstances surrounding the case.On the 24th, Acting Police Chief Yoo Jae-sung reported to the National Assembly's Administrative Safety Committee that he received information from the Jeju police chief indicating the body was presumed to be a hanging death. He stated, "No evidence suggesting homicide has been found so far." Personal belongings, clothing, slippers, and a mobile phone belonging to Jang were found near the body, and a detailed examination by the National Forensic Service is underway.However, criticism has erupted on major online communities and social media as the police appear to be leaning towards a conclusion of suicide, leading many to doubt the investigation's integrity and raise the possibility of foul play. The discovery of clothing found separately from the body has intensified this distrust.One user questioned, "Who would commit suicide in such a manner? It makes no sense for a woman to enter a dark forest alone to take her own life. What could she possibly see? This is absurd." Another user added, "There’s no way a missing person would have entered that palm tree forest alone from a main road. The police's delayed initial response has likely destroyed any evidence of struggle or DNA that could have been collected. There is ample reason to suspect homicide, yet I doubt the investigation will be thorough."Criticism has also been directed at the police for their initial handling of the missing person report, which they closed without any follow-up. Users have expressed frustration, stating, "The police are only focused on covering their own failures," and "The fact that the body was left there all summer raises serious questions about how we can trust the police to conduct a proper search."Particularly, there are calls for caution against hastily concluding the case three months after the disappearance. One user remarked, "Is it even possible to find evidence of homicide after three months? This is not a place where an accidental fall would occur; it looks like a body was left there after a murder. Is it right to push this narrative of suicide so quickly?"Criticism continues regarding the police's failure to act promptly, which may have cost them the critical time needed for a successful search. "Even if it was a suicide, the phone was active for 14 hours after the missing report was filed," one user noted. "If they had started searching immediately, there would have been enough time to prevent this tragedy. This incident is clearly a matter for which the police must take responsibility."With the police's false conclusion and slow response, along with the announcement of a presumed suicide that contradicts common sense, public trust in police investigative capabilities and the justice system is unlikely to recover anytime soon.* This article has been translated by AI. 2026-08-24 17:56:00
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Busan Education Office Launches Committee to Address Digital Overdependence The Busan Education Office has established a collaborative body involving various organizations to proactively address issues of digital media overuse and dependence among youth, including smartphones, short-form videos, and online gaming.On August 14, the Busan Education Office held the inaugural meeting of the 'Committee for Preventing Overdependence and Over-Immersion in Intelligent Information Services,' officially commencing its activities, the office announced on August 24.The committee, chaired by the Deputy Superintendent of Education, consists of 15 members, including internal officials such as the Director of Education, the Director of Digital Future Education, and the Director of Student and Parent Support, as well as external experts.External members include representatives from the Parent Association Federation, Busan Smart Rest Center, Busan-Ulsan Gambling Problem Prevention and Healing Center, Busan branch of the Korea Media Foundation, the Film Rating Board, the Game Management Committee, and the Korea Press Foundation.The involvement of multiple organizations allows for a multifaceted approach, avoiding a narrow perspective.One-Stop Integrated Support from Early Detection to TreatmentThe education office has established a one-stop support system connecting schools and specialized institutions for 'early detection, diagnosis, counseling, and treatment.' The education office will serve as the control tower, while specialized institutions will handle actual diagnosis and treatment.The key players in early detection are homeroom teachers and parents. In elementary schools, homeroom teachers can identify signs of over-immersion by observing subtle changes in students' language habits during breaks. Following this, they will assess risk levels using diagnostic tools and counseling, and refer students to Wee Classes or youth counseling centers based on severity.If treatment is necessary, specialized institutions will step in. For gaming over-immersion, relevant healing institutions will be involved, while dependence on smartphones and social media will be addressed by the Busan Smart Rest Center. The recent surge in cyber gambling issues will be managed by the Busan-Ulsan Gambling Problem Prevention and Healing Center, providing tailored treatment.Currently, the self-reported surveys from students and parents have limitations in accurately assessing the scale of those at risk of overdependence. Therefore, the education office has prioritized building a proactive safety net rather than waiting for perfect statistical data.Ahn Ho-bin, a senior official in the Digital Future Education Division of the Busan Education Office, emphasized the committee's core purpose, stating, "Digital over-immersion should not be viewed merely as an individual deviation. If students are struggling, it is our fundamental direction to actively assist them in finding solutions."Ahn added, "Rather than focusing on precise criteria for overdependence or the number of at-risk individuals, it is essential to take proactive measures to help even a single child. Since schools and the education office alone cannot manage many aspects, it is crucial to foster a strong sense of community support involving families and local communities."The committee will serve as an advisory body to set policy directions rather than a deliberative body with a separate budget. This is the first time the issue of 'overdependence and over-immersion' has been isolated and specialized, previously addressed as one of several topics within an annual 400 million won information ethics education program.By uniting related institutions that previously collaborated individually and establishing a practical consultation channel, the education office plans to swiftly reflect the rapidly changing trends in intelligent information services into school policies.The education office stated, "As digital education expands, we have reflected the voices from the field that responses to dysfunction must also be strengthened."During the inaugural meeting, certificates were awarded, and a special workshop was held. Park Won-cheol, a chief judge at the Ulsan District Court who has handled numerous juvenile cases, led a lecture on 'Strategies for Preventing Digital Overdependence and Joint Response.' Judge Park highlighted the need for building a safety net involving families, schools, and communities while examining the realities of excessive media use among youth from a judicial and protective perspective.Kim Seok-jun, the Superintendent of the Busan Education Office, stated, "The issue of digital over-immersion is not merely an individual deviation; it is a contemporary challenge that requires a robust defense network built collaboratively by families, communities, and specialized institutions. We will actively support our students in Busan to grow as healthy digital citizens through a one-stop integrated system."* This article has been translated by AI. 2026-08-24 17:52:10
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The Rise of 'Screen Sellers': How Films Like 'Odyssey' Drive Book Sales The landscape of intellectual property (IP) expansion in popular culture is shifting. The traditional one-way flow of popular novels or webtoons being adapted into films is being reversed, as successful films in theaters and on streaming services are now leading the best-seller lists in bookstores, a phenomenon known as 'screen sellers.'This reverse expansion is clearly illustrated by the recent success of the film 'Odyssey.' According to the integrated ticketing system, 'Odyssey' attracted 1,321,189 viewers during its third weekend (August 21-23), maintaining the top spot at the box office for three consecutive weeks. The cumulative audience has surpassed 7 million, with a booking rate of 71.3% for the fourth week.This box office success has translated into increased sales for the original book. Kyobo Bookstore reported that sales of related books, including Homer's original 'Odyssey,' surged by approximately 600% compared to the same period last year. In the second week of August, the original book ranked high on the best-seller lists of both Yes24 and Kyobo Bookstore.Notably, this trend extends beyond just purchasing the original novel; it also encompasses interest in the work's universe and background. On the e-book platform Millie's Library, searches for 'Odyssey' increased by 3.3 times following the film's release, while searches for the broader term 'Greek and Roman mythology' rose by 3.6 times. Audiences are not stopping at the original story but are expanding their interest to the entire mythology that the narrative is based on.Similar trends have been observed in domestic films. When 'The King’s Affection' attracted 16.91 million viewers, sales of Lee Kwang-soo's novel 'The Tragic Life of King Danjong,' which covers the historical backdrop of the film, saw a significant increase. This reflects readers' demand to revisit the historical narrative presented on screen in written form.The screen seller phenomenon has been particularly strong in the complex and expansive science fiction genre. When 'Dune: Part Two' dominated the first half of 2024, sales of Frank Herbert's original 'Dune' collection, which was translated into Korean in 2001, surged more than 5.5 times in the first week of its release. Similarly, sales of Liu Cixin's novel 'The Three-Body Problem,' adapted into a Netflix series, increased by 8.7 times immediately after the show's release. The film adaptation of Andy Weir's 'Project Hail Mary' also saw a staggering 5,731.7% increase in sales on Yes24 compared to the previous year, reaching the top of the best-seller list. This pattern of audiences seeking out the original works to fill in the gaps left by the film's shorter runtime is becoming increasingly common.This phenomenon can even be observed before a film's release, starting from the production announcement stage. The original novel 'Mickey7' by Edward Ashton, directed by Bong Joon-ho, sold over 30,000 copies simply under the title 'Bong Joon-ho's New Work' when it was published in South Korea in 2022. Similarly, the series 'The Sympathizer,' directed by Park Chan-wook, saw its Pulitzer Prize-winning source material prominently displayed in bookstores even before airing. The upcoming Netflix adaptation of 'Pavane for a Dead Princess' has led to the re-release of the original work by author Park Min-kyu in a special hardcover edition, showcasing how the news of adaptations can drive publishers to reissue titles.Now, adaptations are not the end of the original work but rather a new beginning. The reverse trend of IP expansion driven by the screen is creating new momentum in the publishing industry, extending beyond theaters and streaming services. As the organic connection between visual media and text invigorates the market, the trend of audiences seeking to explore the deeper narratives in written form is expected to solidify as a lasting consumer behavior.* This article has been translated by AI. 2026-08-24 17:52:10
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Chief of Staff Kang Hoon-sik Calls for Fundamental Reforms to Combat Illegal Subleasing of Public Housing Kang Hoon-sik, the Chief of Staff to the President, emphasized on August 24 the need for fundamental reforms to eradicate illegal subleasing of public rental housing. He proposed the introduction of a reward system for reporting violations, enhanced field investigations, and stricter penalties for illegal activities.During a meeting with senior aides at the Blue House, Kang stated that public rental housing, designed to ensure housing stability for low-income and vulnerable groups, has become a target for some tenants seeking illegal profits.According to a written briefing by Deputy Spokesperson Ahn Gwi-ryeong, Kang pointed out that a case was uncovered where a public rental unit with a monthly rent of 180,000 won was illegally subleased for 600,000 won, resulting in unjust profits.He noted that the recurrence of subleasing issues, which have persisted for years, indicates that management blind spots still exist. Kang urged the Ministry of Land, Infrastructure and Transport and related agencies to devise measures that can fundamentally block attempts at illegal subleasing, including the introduction of a reward system, expanded field investigations, and enhanced penalties for violations.Kang also directed the establishment of a more precise inspection system to verify actual residency of tenants. He instructed collaboration with local governments and agencies providing essential services, such as the Korea Post, Korea Electric Power Corporation, and Korea Gas Corporation, to develop a system for checking actual residency.Additionally, regarding the recent casualties from heavy rainfall in the Geoje and Tongyeong areas of South Gyeongsang Province, Kang stressed the importance of focusing on swift recovery and stabilizing the lives of affected residents rather than engaging in disputes over whether the cause was a man-made slope collapse or a landslide.Kang pointed out that some hazardous areas, including the site of the apartment collapse, were not registered in the Korea Forest Service's digital landslide information system, urging relevant departments to promptly register slope information.He also called for a review and improvement of risk management systems to protect citizens' lives amid extreme weather, adhering to the principle that 'it is better to overreact than to underreact' in relation to incidents involving loss of life.Furthermore, Kang directed a strict response to secondary harm crimes targeting victims of social disasters and major crimes and their families. He evaluated the achievements of the National Police Agency, which established a 'Secondary Harm Crime Investigation Division' in July of last year, noting that it has investigated 272 cases, apprehended 112 individuals, and requested the deletion and blocking of 6,091 illegal posts. However, he pointed out that recent incidents of prank calls, malicious texts, and the spread of unverified information and mockery targeting the families of victims in a recent missing person case in Jeju continue.Kang stated, 'Derogatory remarks, mockery, the spread of false information, and blame-shifting directed at victims and their families are clear instances of secondary harm and serious crimes that inflict further pain on those who have already suffered significant trauma.' He urged the National Police Agency to establish comprehensive measures to eradicate such behaviors, including prompt investigations, enhanced criminal penalties, and expanded preventive education and outreach.* This article has been translated by AI. 2026-08-24 17:52:00
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Taiwan drone defense gaps emerge as US-Korea drills scale back SEOUL, August 24 (AJP) - As the United States and South Korea scaled back their largest summertime military exercise, defense experts in Taiwan were highlighting gaps exposed by their own drills, calling for stronger layered air defenses against drones and other low-altitude threats. Taiwan's assessment follows its annual Han Kuang exercise, held from Aug. 5 to 14 to test the island's ability to respond to a potential Chinese attack. Hsiao-Huang Shu, an associate research fellow at Taiwan's Institute for National Defense and Security Research, said this year's exercise showed improvements in both drone operations and counter-drone training but also exposed significant weaknesses. "Training involving both the use of drones and defense against them clearly increased during this year's Han Kuang exercise," Shu said, according to Taiwan's United Daily News. "Although the military has begun improving its defenses against drones, its active defense capability at low altitudes remains very limited, while its own use of drones is still at an early stage," he said. The assessment comes just days after South Korea and the United States cut short the command-post portion of their annual Ulchi Freedom Shield exercise following an order from U.S. President Donald Trump to substantially reduce the drills. UFS had originally been scheduled to run from Aug. 17 through 27 with about 18,000 South Korean troops participating. The exercise was designed to rehearse combined and all-domain operations against threats on the Korean Peninsula, with scenarios incorporating drone attacks, GPS disruption and cyberattacks, capabilities that U.S. officials said reflected lessons North Korea has gained from its involvement in the war in Ukraine. The allies had also planned 14 battalion-level or larger field exercises under the broader training program. Traditionally, the first part of UFS focuses primarily on defending against an enemy attack, while the second shifts toward counteroffensive operations. But after Trump's directive, the command-post exercise was shortened from 11 days to five and ended Aug. 21. The second-phase counterattack portion was dropped, leaving this year's command-post training concentrated largely on defensive operations. Only seven of the 14 planned combined field exercises remained on the original schedule. The other seven were removed from the UFS schedule and are expected to be rearranged through consultations between Seoul and Washington. South Korean military officials have not publicly identified each of the seven affected field drills, meaning it remains unclear which specific live-training scenarios were lost during UFS itself. The Pentagon said some associated live events were reduced, canceled or converted into simulations. Jyh-Shyang Sheu, another INDSR researcher, said Taiwan also appeared to lack sufficient mobile battlefield air defense equipment to counter drones and other low-altitude threats, calling the construction of a multi-layered integrated air defense system an urgent priority. Taiwan is already developing such a network under President Lai Ching-te's proposed T-Dome architecture, intended to integrate defenses against ballistic missiles, aircraft, long-range weapons and unmanned systems. Taiwan already operates U.S.-made Patriot missiles and locally developed Sky Bow systems for higher-altitude threats and is acquiring NASAMS to strengthen its medium-range defenses. Shorter-range weapons form another layer against low-flying aircraft and drones. 2026-08-24 17:49:17 -
Vietnamese Youth Face Employment Challenges Amid AI Automation Vietnamese youth are encountering obstacles as they enter the labor market. Traditionally, entry-level positions in administration, customer service, and support roles served as practical training grounds for new graduates. However, the rise of AI and automation is narrowing these pathways for young workers.According to local recruitment agencies on August 24, 2026, the number of mid-skilled jobs that have historically provided a stepping stone for young people is decreasing. Roles that were once easy for newcomers to secure, such as those in administration, service, sales, manufacturing, and some technical fields, are diminishing. Companies are increasingly favoring candidates who can deliver immediate results.A 20-something resident of Ho Chi Minh City, identified as A, has faced similar challenges. After graduating with a marketing degree last year, A sought positions as a marketing assistant, customer service representative, and business analysis aide, but most listings required prior experience and skills. Ultimately, A chose a real estate sales position with a base salary of 5 million dong (approximately $210) plus commission, but without social insurance. Over the past year, A's average monthly income has fallen short of 10 million dong. A expressed, “I want to grow in my field, but there are no entry-level jobs available.”The International Labour Organization's '2026 Global Youth Employment Trends' report also indicates a decline in jobs that have historically served as stepping stones for youth. The report estimates that 6.1% of jobs for individuals aged 15 to 29 are in sectors significantly impacted by AI-related changes. While administrative roles are decreasing, demand is rising in fields requiring higher technical and knowledge levels, such as science, healthcare, and engineering.Disappearing 'First Jobs': AI Taking Over Entry-Level TasksRecruitment firm Navigos Group predicts that within the next 3 to 5 years, roles such as data entry, basic administration, scripted customer service, cashiering, and some accounting tasks may be reduced. These positions have often been chosen by new graduates to gain their first work experience. Kao Le Thanh Loan, senior director at Manpower Vietnam, explained that past graduates typically engaged in data entry, document scanning, drafting, and departmental support to learn organizational and procedural skills. “Now, these tasks are being handled by AI or supported by AI,” he noted.Changes in workforce demand are evident in the business sector as well. Tan Le, CEO of the job community Job Bui, stated that companies that once required 20 to 30 employees for stable operations now maintain only 10 to 15, with core staff numbering fewer than 10. “Even with a reduced workforce, efficiency can remain the same or even improve,” he said.The customer service sector exemplifies this trend. Job Bui receives about 1,000 messages daily, with most inquiries handled by AI chatbots. The department operates with fewer than two staff members, focusing on quality control and complex issue resolution. Demand for personnel in this area has decreased by approximately 70%.However, youth hiring has not completely vanished. A Manpower Vietnam survey found that 57% of companies increased their youth hiring in the past year, while 22% maintained their previous levels. Demand is concentrated in engineering, AI model development, IT and data, and marketing. Loan remarked, “The issue is that companies need youth in different ways than before.”Divided Opinions on Solutions: Calls for Early Career Education and New PathwaysResponses from Vietnamese readers regarding youth employment challenges are mixed. One commenter stated, “This is an inevitable trend, and Vietnam is aligning with global changes.” They argued that high schools should prepare students for the labor market, while universities should focus on more specialized training.Another reader noted, “Those born after 2000 are finding it really hard to secure jobs,” adding, “If it’s tough for those of us born in the 90s, it’s even harder for you.” Another comment emphasized the need for earlier career guidance in the AI era, warning that if students aim for average studies to enter popular universities, they may end up in sales jobs earning only 7 million dong monthly after graduation.Experts identify AI proficiency and practical experience as new entry requirements. Nguyen Anh Thi, CEO of Sitare, stated that young people need not only subject knowledge but also the ability to use AI and self-learn. He believes that companies should act as 'extended classrooms' for students, allowing them to engage with equipment, technology, and real work situations during their studies.Internships are also evolving from mere graduation requirements to opportunities for learning real projects and practical tools. Tan Le explained that having 1 to 2 years of experience does not necessarily mean formal employment, as graduates can demonstrate their skills through internships, personal projects, and portfolios.He added, “Companies also need to change their hiring practices,” emphasizing that instead of rigidly requiring 1 to 2 years of experience, they should clearly outline the skills needed, creating opportunities for youth and preventing waste of human resources in the market.* This article has been translated by AI. 2026-08-24 17:48:00
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H.PIO stock bolstered by stock retire scheme SEOUL, August 24 (AJP) -South Korean health supplement maker H.PIO's shares rose Monday after the company announced plans to cancel all of its treasury shares. Its shares closed 2.64 percent higher at 2,135 won ($1.54) on the KOSDAQ. The KOSDAQ-listed company said its board approved the cancellation of 191,003 common shares, according to a regulatory filing Monday. The cancellation is scheduled for Sept. 11. The cancellation represents about 0.46 percent of its 41.29 million outstanding common shares. Once completed, the total will fall to about 41.10 million shares, the filing showed. The latest move follows a larger cancellation last September, when the company cancelled 796,011 shares worth about 9 billion won ($6.5 million). This year, it also paid out about 29 percent of its earnings to shareholders as dividends. The moves come as the health supplement maker reported solid earnings in the first half. Revenue rose 8.8 percent on year to 141.8 billion won, with operating profit reaching 7.2 billion won. Founded in 2012, H.PIO develops, manufactures and sells health supplements. Its main brand, Denps, offers products including probiotics and vitamins and draws on a Danish-inspired approach to health and wellness. The company expects solid performance to continue in the second half and plans to use cash generated from its operations for future investments and additional shareholder returns. AJP Takeaways • H.PIO shares closed 2.64 percent higher at 2,135 won on the KOSDAQ on Aug. 24, 2026, after the company announced plans to cancel all of its treasury shares. • H.PIO will cancel 191,003 common shares on Sept. 11, 2026, reducing its total common shares from about 41.29 million to 41.10 million. • H.PIO, founded in 2012, develops, manufactures and sells health supplements under brands including Denps, which offers products such as probiotics and vitamins. 2026-08-24 17:45:21 -
Samsung Electronics Shares Plunge 8.7% Despite Record Shareholder Return Announcement Samsung Electronics' stock price dropped more than 8% on August 24, despite announcing a record 110 trillion won ($82 billion) shareholder return plan on August 21. Investor reactions were lukewarm, contrasting sharply with SK Hynix, which saw its shares rise over 12% following a 40 trillion won buyback and cancellation announcement. Analysts suggest that the shareholder return fell short of market expectations, particularly due to the Financial Industry Structure Improvement Act, which prevented Samsung from detailing its stock buyback plans.According to the Korea Exchange, Samsung Electronics closed at 257,000 won, down 24,500 won (8.70%) from the previous trading day. Samsung's preferred shares also fell 8.55% to 189,300 won. Other Samsung affiliates, including Samsung Life (-13.09%) and Samsung C&T (-7.84%), also experienced significant declines.The sharp drop in Samsung's stock is unusual given the scale of its shareholder return plan. In comparison, SK Hynix's stock rose nearly 15% over two days following its announcement on August 19. During trading, SK Hynix shares peaked at 1,792,000 won but closed at 1,671,000 won, down 59,000 won (3.41%) due to late selling pressure.The differing stock performances of Samsung and SK Hynix stem from varying market evaluations of their shareholder return policies. SK Hynix's plan to buy back and cancel 40.43 trillion won worth of shares is seen as a clear enhancement of per-share value, as it will eliminate about 3.3% of its outstanding shares.In contrast, Samsung's announcement of a 90 trillion to 110 trillion won shareholder return plan for 2026 lacked specific details on stock buybacks. Approximately 30 trillion won will be distributed as cash dividends, while the execution method and scale for the remaining 60 trillion to 80 trillion won will be determined later.As a result, while the total amount is the largest in history, it did not meet market expectations. Choi Bo-young, a researcher at Kyobo Securities, noted, "The market has been focused on how the strong semiconductor industry and increased free cash flow will translate into additional returns. The lack of aggressive buybacks and cancellations means it cannot be seen as a 'surprise return.'" Kim Gi-baek, a researcher at Shinhan Investment Corp, added, "The market perceives that the shareholder return material has diminished as it did not exceed expectations."Concerns regarding the Financial Industry Structure Improvement Act have been cited as a reason for Samsung's inability to announce stock cancellations. If Samsung were to buy back and cancel its common shares, the ownership stakes of its financial affiliates, Samsung Life and Samsung Fire, could exceed the 10% limit set by the act. Currently, Samsung Life holds about 8.51% and Samsung Fire holds 1.49% of Samsung Electronics' common shares, totaling approximately 9.99%.DS Investment & Securities estimates that, considering these constraints, the remaining 70 trillion won of the shareholder return funds to be executed in January 2027 will likely see 10 trillion to 20 trillion won allocated for buybacks and cancellations, with the remaining 50 trillion to 60 trillion won likely going to dividends. Kim Soo-hyun, head of the research center at DS Investment & Securities, warned that if 100% of the shareholder return funds are allocated solely to dividends due to concerns over the dilution of control from block deals involving financial affiliates, the market's assessment of the quality of shareholder returns compared to SK Hynix could decline.However, some analysts believe that the sharp decline in Samsung's stock cannot be solely attributed to shareholder return issues. They suggest that broader market risk aversion and profit-taking in semiconductor stocks also played a role. Meanwhile, the KOSPI index fell by 215.99 points (3.12%) to close at 6,696.96, driven down by the decline in Samsung Group stocks. In contrast, the KOSDAQ index rose by 11.39 points (1.42%) to 813.33. Lee Kyung-min, a researcher at Daishin Securities, stated, "While weakness is evident in the semiconductor sector, a rotation into other sectors is occurring, indicating that the market's decline should be interpreted as an adjustment due to the drop in Samsung affiliates' stock prices rather than a general market downturn." 2026-08-24 17:44:00