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BNK Financial Group Offers 1.6 Trillion Won Special Loans to Local SMEs Ahead of Chuseok BNK Financial Group will provide special loans totaling 1.6 trillion won to support local small and medium-sized enterprises (SMEs) and small business owners facing financial difficulties ahead of the Chuseok holiday.On August 24, BNK Financial Group announced that it will offer the 'BNK 2026 Chuseok Special Loan' through BNK Busan Bank and BNK Gyeongnam Bank.This special loan program aims to alleviate the financial burden on local SMEs and small businesses struggling due to economic downturns, liquidity shortages, and declining sales. The initiative is designed to facilitate funding for businesses that experience increased working capital needs as the holiday approaches, thereby ensuring a smoother flow of funds in the local economy.The support period runs from today until October 26. Both Busan Bank and Gyeongnam Bank will each provide 800 billion won, totaling 1.6 trillion won. Each bank's contribution consists of 400 billion won in new funds and 400 billion won for extending existing loans.Eligible recipients include companies in the marine and fisheries industry, local startups, technologically advanced SMEs, businesses creating local jobs, SMEs engaged in strategic industries supported by local governments, and long-term trading SMEs.Each company can borrow up to 3 billion won, and to reduce financial costs, a maximum interest rate reduction of 1.0 percentage point will be offered.A BNK Financial Group official stated, "We hope this special loan will help ease the management burden on local SMEs and small businesses during a time of increased funding demand ahead of Chuseok. We will continue to fulfill our role as a representative financial group in the region to ensure timely financial support where it is needed."* This article has been translated by AI. 2026-08-24 16:40:00 -
Special Prosecutor's Investigation Concludes with 46 Cases Transferred The second comprehensive special investigation team, led by Special Prosecutor Kwon Chang-young, has concluded its 180-day investigation, resulting in the indictment of 58 individuals. However, opinions on the investigation's success are mixed. While the investigation clarified the criminal structure behind the allegations of the presidential residence relocation, key cases related to insurrection and obstruction of justice remain unresolved.On August 24, the special prosecutor's office reported that it had received a total of 152 cases during the investigation, processing 126 of them. Seven individuals were indicted while in custody, and 51 others, including one corporation, were indicted without detention. The remaining 46 cases and 150 suspects were transferred to the National Investigation Headquarters.The investigation into the presidential residence relocation, led by Special Prosecutor Jin Eul-jong, yielded the most significant results. The special prosecutor concluded that Kim Geon-hee proposed the construction to an unqualified company, 21Gram, and requested the selection of the company from Yoon Han-hong, a member of the National Assembly. Both individuals were indicted along with accomplices, including former presidential office management secretary Kim O-jin.As a result of Kim's requests, the construction costs increased from the initial budget of 1.4 billion won to 4.1 billion won. The investigation also confirmed that the presidential office directed the illegal diversion of the Ministry of the Interior and Safety's budget. This led to the indictment of former presidential chief of staff Kim Dae-ki and former administrative secretary Yoon Jae-soon. The investigation uncovered a structure involving the selection of the company, budget misappropriation, bribery, and the suppression of audits, including allegations of Dior clothing provided by 21Gram and the suppression of audits by Audit Committee member Yoo Byeong-ho.Despite extending the investigation period to 180 days through amendments to the special prosecutor law, the team was unable to resolve issues related to the 'Noh Sang-won notebook,' changes to the Seoul-Yangpyeong Expressway route, and allegations of suppressing investigations into Unification Church gambling.The notebook of former National Intelligence Service Director Noh Sang-won revealed plans to assassinate key figures using explosives and toxic substances, as well as preparations for detention facilities. The special prosecutor's office conducted on-site verifications in Yeonpyeong-do and Oeum-ri but transferred the case to the National Investigation Headquarters due to refusals to testify from key suspects and time constraints.In the case of the Seoul-Yangpyeong Expressway, the investigation into former Minister of Land, Infrastructure and Transport Won Hee-ryong included 11 searches, but the team could not determine whether there was any involvement from higher-ups. Similarly, the Unification Church case involved 12 searches and interviews with related individuals, but the investigation failed to clarify any involvement from police leadership.Allegations of the presidential office's interference in the Suwon District Prosecutor's Office's investigation into North Korean remittances were dismissed due to lack of jurisdiction. The special prosecutor's office reported that it had detected signs of interference from the presidential office, but the court rejected search warrants twice, stating that the targets were not under investigation, leading to failures in questioning key suspects.The repeated rejection of arrest warrants has also posed challenges. Arrest warrants for former Joint Chiefs of Staff Chairman Kim Myung-soo and former Ground Operations Command Chief Kang Ho-pil were dismissed due to insufficient evidence or legal disputes. The special prosecutor's office now faces the task of proving the charges in court after indicting these individuals without detention.Controversy has also arisen regarding the exercise of prosecutorial authority, with former Seoul City Council member Lee Jong-bae filing a complaint against Kwon Chang-young for applying charges of obstructing special public duties against National Assembly members Na Kyung-won, Kim Gi-hyeon, Yoon Sang-hyun, and Kwon Young-jin, arguing that such charges are difficult to substantiate. The People Power Party has labeled the indictments of the four members as "politically motivated" and plans to file a complaint.Internal disagreements surfaced during the process of dismissing insurrection charges due to lack of jurisdiction. Special Prosecutor Kwon Chang-young believed that unconstitutional military command actions are invalid, thus making insurrection charges applicable, while Deputy Special Prosecutor Kim Jung-min held the view that they do not apply based on existing precedents. The special prosecutor's office concluded that the insurrection special investigation team, led by Special Prosecutor Jo Eun-seok, had already indicted the same facts, resulting in a lack of separate jurisdiction.Questions remain regarding whether the materials obtained just before the investigation's conclusion, related to the "bypassing of martial law command structure," were adequately reviewed. According to reports from Aju Economy, informant Kim Hyun-seok underwent a four-hour video-recorded interrogation on August 22, during which he provided statements regarding the possibility of applying insurrection charges and submitted materials related to the movement of martial law troops.However, the special prosecutor in charge, Kim, stated that he had not received any reports regarding this investigation. With the insurrection charges concluded due to lack of jurisdiction, there has been no indication of whether the results of the report and materials were conveyed to the National Investigation Headquarters or the Ministry of National Defense.The composition of personnel for maintaining prosecutions has not yet been finalized. The special prosecutor's office conducted interviews with lawyers up to the day of the announcement and anticipates difficulties in filling the positions for dispatched prosecutors. There is a challenge in ensuring continuity in the transfer of records and maintaining prosecutions, as different personnel from the existing investigation team may take over the trial.Kwon Chang-young stated, "The initial evaluation of the special prosecutor's office will be made by the court, and ultimately, the public and history will judge it." While the investigation clarified the criminal structure in the presidential residence relocation case, it left unresolved investigations and legal controversies in other cases. The final tally of 58 indictments is expected to be determined in court. 2026-08-24 16:36:00
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Kookmin students win forest management AI contest SEOUL, August 24 (AJP) - A team of students from Kookmin University has won the top prize at South Korea's inaugural forest artificial intelligence contest by developing a tool that helps private landowners predict 30 years of revenue and carbon absorption. The web service, named MOFOM, addresses a longstanding challenge in South Korean forestry by democratizing access to fragmented government data. By simply entering a land parcel number, forest owners can instantly view economic and environmental projections across different management scenarios, turning dense academic models into a practical financial tool. The students took the grand prize in the service creation category at the first Forest Science AI Use Contest, hosted by the National Institute of Forest Science. The competition drew 259 participants from 41 universities and 33 institutions to find technological solutions for regional and national forest management. MOFOM integrates satellite imagery with government datasets, including national forest resource surveys, carbon absorption standards, and mountain weather records, to estimate timber volume and carbon content. It then generates six distinct management scenarios, ranging from immediate logging to long-term thinning and cultivation, calculating expected profits and carbon offset values for each path. To ensure accuracy and reduce the risk of artificial intelligence hallucinations, the system relies on hard-coded calculations for its numerical data. The embedded language model is restricted strictly to explaining the finalized numbers, a feature that earned the team high marks for technical completeness and practical viability during live demonstrations. Led by graduate student Choi Hee-do alongside undergraduates Na Jung-woo, Ha Su-beom, and Kim Min-seok, the team validated their model using actual land data and carbon offset project records from Boeun-gun, North Chungcheong Province. The students handled the entire development process, from satellite image analysis and economic calculations to web service deployment. "It took a lot of time to connect forest data scattered across various institutions into a single service, but it is meaningful that we were evaluated for implementing it in a form that can actually be used," Choi said. "I want to expand the model verified in Boeun nationwide and develop it into a service that forest owners can actually use." 2026-08-24 16:31:36 -
Sovereign AI race pulls world deeper into Nvidia's orbit SEOUL, August 24 (AJP) - When South Korea named the three teams last week that will carry its bid for a homegrown artificial intelligence model, the reward that mattered most was not cash or recognition. It was more Nvidia. The government said on Aug. 18 that SK Telecom, LG AI Research and startup Upstage had cleared the second round of its sovereign AI foundation model contest. For the next stage, each team will receive access to roughly 1,000 Nvidia B200 graphics processing units, up from about 768 in the first half, at a combined six-month leasing cost of around 120 billion won ($86.7 million). There is a revealing paradox in that arrangement. South Korea is spending public money to reduce its dependence on foreign artificial intelligence. To do so, it is deepening its dependence on the American company that supplies the computing infrastructure on which much of the world's AI already runs. Korea's predicament is increasingly a miniature of a global one. From Seoul to Riyadh and Abu Dhabi, governments are pouring money into sovereign AI in an effort to keep national data, models and critical digital capabilities under greater domestic control. Yet the harder countries race to establish AI sovereignty, the more infrastructure they are building around Nvidia. The result is turning the sovereign AI boom into something Nvidia could scarcely have designed better for itself. Governments around the world financing an expansion of the ecosystem in which it already occupies the center. Nvidia's dominance starts with chips. About 92 percent of sovereign AI large-language-model projects tracked by Counterpoint Research use Nvidia chips. The Center for a New American Security finds Nvidia GPUs in 52 percent of the sovereign AI infrastructure projects in its database. Roughly 70 percent of sovereign AI projects tracked by CNAS involve at least one foreign partner, and four-fifths of those include an American company. The financial numbers convey the scale. Nvidia reported $75.2 billion in data-center revenue for the quarter ended April 26, up 92 percent from a year earlier. But the more consequential question is no longer simply how many GPUs Nvidia can sell. It is how much of the architecture surrounding AI those GPUs can pull into Nvidia's orbit. That is what makes the sovereign AI race different from an ordinary semiconductor boom. A country buying thousands of Nvidia processors is not purchasing interchangeable pieces of silicon. Its researchers learn CUDA, Nvidia's software platform. Its data centers are increasingly designed around Nvidia networking and rack-scale architectures. Models are trained and optimized in that environment. Engineers, cloud providers and startups acquire skills built around it. The larger the installed base becomes, the higher the potential cost of moving away. Sovereign AI can therefore create a peculiar form of path dependence. Governments seeking greater technological autonomy may simultaneously build domestic AI ecosystems whose most difficult component to replace remains foreign. The paradox is sharpest where the money is deepest. Saudi Arabia and the United Arab Emirates have committed tens of billions of dollars to becoming major AI powers and have deliberately spread some of that spending among alternatives including AMD, Qualcomm and Groq. Saudi Arabia's Humain, for example, agreed with AMD on a multibillion-dollar infrastructure program partly as a way to avoid reliance on a single hardware vendor. Yet Nvidia remains at the center of the kingdom's most ambitious training infrastructure. Humain's Nvidia agreement calls for several hundred thousand of the company's advanced GPUs over five years, beginning with an 18,000-chip GB300 system. The UAE's Stargate project in Abu Dhabi similarly plans to use Nvidia's latest hardware for its initial buildout. The diversification does not mean an escape from Nvidia. What should draw greater attention is how aggressively Nvidia is widening the perimeter of that dependence. Its ambitions now reach above the chip into the model itself. The company struck a $6 billion licensing agreement with AI startup Poolside that gives Nvidia access to technology and engineering talent as it builds more powerful open-weight models, positioning itself against Chinese systems such as DeepSeek as well as the closed models developed by companies including OpenAI and Anthropic. It is also moving beneath the chip, into the financial machinery that determines which AI infrastructure gets built. Nvidia this month announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilizing more than $500 billion of third-party capital for AI infrastructure. The proposition is unusual. Nvidia wants lenders and infrastructure investors to treat compute itself as a long-lived, revenue-producing asset that can be financed, transferred between operators and redeployed for different workloads. Its argument rests in part on the breadth of the Nvidia ecosystem. Because GPUs supported by CUDA can serve many models and customers, the company argues, they retain economic usefulness beyond any single AI project. Technical dominance gives Nvidia GPUs a large base of potential users. A large base improves their perceived redeployability. Greater redeployability can make lenders more comfortable financing them. Cheaper or more abundant financing can then make Nvidia infrastructure easier to buy. The ecosystem reinforces the economics, and the economics reinforce the ecosystem. "If GPUs have broad use cases on the back of the CUDA ecosystem and a large installed base, financial institutions have room to rate their residual value and redeployability highly," said Kang Jae-koo, an analyst at Hana Securities. "If that translates into higher collateral value or lower capital costs than rivals, customers will come to prefer Nvidia by weighing not just GPU performance but the total financing cost of an entire AI factory," Kang said. Nvidia's advantage is no longer limited to chip performance. Cheaper financing across its ecosystem could deepen its lead over competitors. Korea offers an unusually revealing view of how far the orbit can extend. The clearest example came this month when LG Chairman Koo Kwang-mo and Nvidia Chief Executive Jensen Huang signed a strategic cooperation agreement at Nvidia's Santa Clara headquarters spanning humanoid robots, AI factories and mobility. LG brings manufacturing capability, actuators, sensors and batteries. Nvidia increasingly supplies the intelligence layer. The bipedal humanoid the companies plan to unveil in the first quarter of 2027 will use Nvidia's Isaac GR00T foundation model, Jetson Thor computing platform and Halos safety technology. "As our collaboration gains momentum, the tasks where the two companies can work together have become clearer in the field of AI factory, physical AI and mobility," Koo said. The significance goes beyond one robot. Nvidia's position in AI is spreading from systems that train language models into the machines, factories and vehicles that may eventually run them. Even companies created partly as alternatives to Nvidia are being caught by that gravitational pull. Huang recently met Rebellions co-founder and CEO Park Sung-hyun at Nvidia's headquarters, with the two companies in preliminary discussions that Bloomberg reported could range from technical cooperation or investment to a possible acquisition. No transaction has been agreed, and Rebellions has confirmed the meeting but not the substance of the talks. The symbolism is nevertheless striking. Rebellions has spent years positioning its inference processors as part of a Korean answer to Nvidia's dominance. Park has publicly described his ultimate ambition as taking market share from the American chip giant. Now even one of the companies built to challenge Nvidia may find strategic value in entering its orbit. None of this means sovereign AI is futile, or that countries must manufacture every layer of the AI stack themselves. Even with sufficient GPUs, countries lack equal access to frontier researchers, energy, data-center capacity, advanced networking and the capital required to keep upgrading systems as models become more compute-intensive. Complete technological self-sufficiency would therefore be prohibitively expensive for all but a handful of countries — and probably inefficient even for them. The more useful question is what a country must be able to control, substitute or keep operating when a critical foreign supplier becomes unavailable. The Chey Institute for Advanced Studies argued in a report released Sunday that sovereign AI should move beyond ownership of a domestic model toward what it calls "access sovereignty" and "operational sovereignty." A country, it argued, should retain reliable access to essential AI technology while possessing the ability to switch systems and maintain critical functions if a particular model or cloud service is cut off. That is a more realistic definition of sovereignty for an industry whose supply chain stretches across borders. It also points toward the actual challenge posed by Nvidia. Countries do not necessarily need to eliminate foreign technology to achieve AI sovereignty. They need enough alternatives, interoperability and domestic capability that using foreign technology does not leave essential national functions hostage to a single supplier. The sovereign AI race may therefore be entering a second stage. The first was about building national models. The next will be about deciding which parts of the AI stack nations must control themselves, which they can safely source abroad and how much concentration they are willing to tolerate in the layers they do not own. For now, that calculation keeps pointing toward Santa Clara. Every national model trained on Nvidia hardware, every AI factory designed around its platform and every robot built on its software enlarges an ecosystem that becomes progressively harder to leave. The world is racing for sovereign AI. So far, the race is pulling it deeper into Nvidia's orbit. 2026-08-24 16:30:11 -
Samsung forecast to reclaim No. 1 spot in global smartphone shipments SEOUL, August 24 (AJP) - Samsung Electronics is expected to reclaim the top spot in the global smartphone market this year as its shipments rise while those of archrival Apple decline, according to a report released by Counterpoint Research on Monday. The research firm forecast that Samsung's smartphone shipments will rise 0.8 percent from a year earlier, while Apple's are expected to fall 2.1 percent, putting Samsung back in the No. 1 spot after Apple took the lead last year. It cited Samsung's broad product portfolio and geographically diversified business as reasons for its positive outlook, as well as the handset maker's ability to source components internally and its extensive distribution networks, which could help it navigate growing supply chain uncertainties. But global smartphone shipments are projected to fall 14.3 percent this year as rising component costs and weaker consumer demand put pressure on the market, with shipments expected to decline another 1.4 percent next year before recovering in 2028. Higher prices for memory and chipsets are also raising manufacturing costs and could further weaken demand. The impact is expected to be greater on midrange and budget smartphones, where components make up a larger share of the retail price. Chinese smartphone makers could be hit particularly hard because they rely more heavily on these segments and price-sensitive markets. For this reason, shipments from major Chinese smartphone brands are expected to decline by 15 percent to 34 percent this year, while the premium segment is expected to remain relatively strong. As for Apple, new products expected to launch this fall including its first foldable iPhone could provide a boost. However, initial sales of the foldable model are expected to reach only several million units, which is unlikely to significantly lift its overall shipments. Apple may also face higher production costs for its upcoming iPhone 18 series as component prices rise. AJP Takeaways • Samsung Electronics is expected to reclaim the No. 1 spot in the global smartphone market this year, with shipments forecast to rise 0.8 percent. • Apple's smartphone shipments are projected to fall 2.1 percent, allowing Samsung to regain the lead after Apple topped the market last year. • Global smartphone shipments are expected to decline 14.3 percent this year as higher component costs and weaker consumer demand weigh on the market. • Chinese smartphone brands could face steeper declines of 15 percent to 34 percent, particularly in the midrange and budget segments. • Apple's first foldable iPhone could provide a boost this fall, but limited initial sales and higher component costs may constrain its overall performance. 2026-08-24 16:26:41 -
Top Four Insurers Improve Auto Insurance Loss Ratio Over Past Year The loss ratio for auto insurance among South Korea's top four non-life insurers dropped by nearly 6 percentage points last month compared to the same month last year. However, the loss ratio increased compared to the previous month, and the cumulative loss ratio for the year is higher than last year.According to the insurance industry on August 24, the average loss ratio for auto insurance among Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance was recorded at 86.2% last month. This is a decrease of 5.9 percentage points from 92.1% in July of last year, but an increase of 2.8 percentage points from 83.4% in June of this year.By company, Hyundai Marine & Fire Insurance had the highest loss ratio at 88.4%, followed by DB Insurance at 86.1%, KB Insurance at 85.8%, and Samsung Fire & Marine Insurance at 84.7%.All four companies improved their loss ratios compared to July of last year. KB Insurance saw a decrease of 7.4 percentage points, Samsung Fire & Marine Insurance decreased by 6.5 percentage points, DB Insurance dropped by 5.6 percentage points, and Hyundai Marine & Fire Insurance fell by 4.0 percentage points.However, the cumulative loss ratio for January to July this year averaged 84.8% across the four companies, which is an increase of 0.7 percentage points from 84.0% during the same period last year.In terms of cumulative loss ratios, DB Insurance had the highest at 85.2%. KB Insurance and Hyundai Marine & Fire Insurance both stood at 84.8%, while Samsung Fire & Marine Insurance was at 84.3%. Compared to the same period last year, DB Insurance increased by 2.0 percentage points, KB Insurance by 0.9 percentage points, and Hyundai Marine & Fire Insurance by 0.2 percentage points, while Samsung Fire & Marine Insurance saw a decrease of 0.1 percentage points.* This article has been translated by AI. 2026-08-24 16:24:00
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South Korean Prime Minister Takes Responsibility for Jeju Missing Person Case South Korean Prime Minister Han Seong-sook expressed her deep condolences for the late Jang Mi-ran on August 24, stating, "I feel an infinite responsibility for this incident."In a post on X (formerly Twitter), she emphasized, "Nothing is more precious than the lives and safety of our citizens," and assured that the government would make every effort to ensure a thorough and fair investigation into the missing person case.During a comprehensive policy inquiry at the National Assembly's Budget and Settlement Special Committee, she responded to a request from Democratic Party lawmaker Moon Dae-rim for improvements in the investigation process, saying, "I feel deeply saddened by the related incidents" and added that the government is reviewing the situation and will actively push for swift action.Moon pointed out that the case was undermined by a single official's false input, which rendered basic procedures like face-to-face verification and profiling system registration ineffective. He urged that the management should mandate double-checking by supervisors and ensure that any modifications or deletions in the missing person profiling system are automatically reported to higher authorities.Han acknowledged the significant public concern regarding the recent inadequate responses to missing person cases in Jeju and directed the National Police Agency to conduct a thorough nationwide investigation and reform the missing person investigation system.In her emergency directive, she instructed the police to carry out the ongoing nationwide investigation into missing persons meticulously and to take strict measures against any confirmed wrongful or illegal handling of cases.She also urged the police to identify institutional shortcomings through the investigation and to expedite system improvements, such as separating the responsibilities for case handling and closure.Furthermore, she directed the police to use this incident as an opportunity for deep reflection and reform, ensuring the integrity and fairness of investigations to quickly restore public trust.On the same day, the Jeju Police Agency reported that at approximately 10:46 a.m., a body believed to be that of Jang, who had been missing for over three months, was discovered near Hallim-eup in Jeju City.* This article has been translated by AI. 2026-08-24 16:24:00
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Korean Won Reflects Economic Fundamentals Amid Currency Fluctuations The won-dollar exchange rate has shifted from being heavily influenced by short-term supply and demand conditions to reflecting the fundamentals of the South Korean economy. Improved foreign investment in domestic stocks and increased dollar sales by export companies have contributed to a more stable foreign exchange market. These fundamental factors, including strong export performance and a current account surplus, are supporting the won's appreciation, raising the possibility of further declines in the exchange rate.On August 24, the exchange rate in the Seoul foreign exchange market reached 1,376.50 won against the U.S. dollar, a decrease of 10.0 won from the previous closing rate of 1,386.5 won on August 21. This marks the lowest level since the intraday low of 1,375.70 won on September 17 of last year. Just two months ago, the rate had soared to over 1,560 won per dollar.This year, the rise in the exchange rate has been driven more by short-term supply and demand factors than by fundamentals. Increased demand for dollars due to foreign net selling of domestic stocks has put pressure on the won, leading to its depreciation. In June, foreign net outflows from domestic stocks reached a record high of $32.37 billion.Recently, however, supply conditions have improved rapidly. Export companies have significantly increased their dollar sales. According to data submitted by the Bank of Korea to lawmaker Kim Nam-jun, the total amount of spot and forward dollar sales by non-financial private companies in the second quarter of this year was $263.59 billion, a 71.5% increase compared to the same period last year. The net selling amount, after subtracting purchases, was $109.65 billion, nearly quadrupling from a year ago. The net selling for the first half of the year also reached $186.9 billion, more than three times higher than the same period last year.Foreign capital flows are also supporting the won's strength. Recent foreign net buying of domestic stocks, along with solid export performance from August 1 to 20, has contributed to the appreciation of the won. Analysts suggest that strong exports and a current account surplus are increasing upward pressure on the won, supporting the decline in the exchange rate. Yoo Sang-dae, former deputy governor of the Bank of Korea, noted, "From late last year to early this year, short-term factors such as supply and demand and expectations had a greater impact on exchange rate determination than fundamentals, leading to a significant rise in the exchange rate. However, recently, the influence of supply and demand factors has diminished, while the impact of medium- to long-term factors such as interest rate differentials and current account surpluses is becoming more pronounced."In the short term, the exchange rate may fluctuate around the 1,400 won mark rather than continuing a one-sided decline. Below 1,400 won, demand for payments from importers and currency conversion needs from foreign investors may limit the pace of decline. External factors such as U.S. monetary policy, global dollar trends, and geopolitical risks could also increase exchange rate volatility.Choi Kyu-ho, a researcher at Hanwha Investment & Securities, stated, "For the time being, the won-dollar exchange rate is expected to face limited upward pressure around the 1,400 won mark. In the short term, it is more likely to fluctuate within the range of 1,370 to 1,430 won rather than decline unilaterally."* This article has been translated by AI. 2026-08-24 16:20:00
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EU Packaging Waste Regulation Takes Effect, Exporters Face Challenges The European Union's Packaging and Packaging Waste Regulation (PPWR) is now in full effect, increasing the compliance burden for domestic exporters. Companies must verify various aspects, from the applicability of the regulations to packaging materials, labeling, and registration under the Extended Producer Responsibility (EPR) system.According to industry sources, the Korea Trade-Investment Promotion Agency (KOTRA) reported that over 730 people registered for its 'EU PPWR Response Webinar' held on August 20. Actual attendance reached 501, with 210 pre-submitted questions, indicating that the PPWR is transforming product design and supply chain management for EU exporters beyond mere environmental regulation.The PPWR aims to reduce packaging and packaging waste and enhance recycling for products entering the EU market. Since its implementation on August 12, exporters must assess the materials and composition of their packaging and maintain relevant documentation. Requirements for packaging design that considers recyclability, the use of recycled plastic materials, and minimizing packaging will be phased in.One of the significant challenges for companies is determining the applicability of the regulations during the export process. KOTRA states that the classification of packaging materials is based on functionality rather than the product's material or industry. Packaging that serves sales, bundling, and transportation functions may be subject to regulation. Packaging used in e-commerce may also fall under transportation packaging, necessitating separate verification.Companies must also clarify the criteria for handling existing inventory. The determination of market release is based on the date of distribution in the EU, meaning products released before August 12 may be exempt from the regulations. However, products released after this date must comply with PPWR requirements, even if produced before the implementation date.Pre-approval is not required during customs clearance. However, companies must prepare technical documents and declarations of conformity before product release. Exporters must manage documentation carefully, as buyers or importers may request these materials in advance.Companies should also verify labeling methods in advance. The regulations do not require identifying information for tracking packaging materials to be directly marked on every individual package. If direct labeling is impractical, accompanying documents may be used.EPR compliance must be addressed on a country-by-country basis. There is no unified registration system at the EU level; instead, each member state operates separate portals and fee systems. Companies exporting to multiple countries must confirm EPR registration and related procedures for each sales country.The questions submitted during KOTRA's webinar focused on practical issues faced by exporters, including the preparation of technical documents and declarations of conformity, the scope of packaging, and evidence of heavy metal and PFAS testing. Inquiries also covered existing inventory management, the determination of economic operators' roles, and EPR registration and labeling requirements.Local EU companies have already begun to respond by expanding the use of recycled materials in packaging design and establishing reuse and recovery systems. However, concerns have been raised about the consistency of enforcement across countries as subordinate regulations are developed.KOTRA advises exporters to secure information on the materials, weight, and composition of packaging items in advance and to establish relevant documentation systems. The Korea Testing & Research Institute (KTR) and the Korea Construction & Living Environment Testing Institute (KCL) are also providing support for heavy metal and PFAS testing, as well as recyclability assessments and technical document compliance.Additionally, KOTRA plans to hold another PPWR response webinar on August 25 in collaboration with the National Institute of Technology and Standards and the TBT Comprehensive Support Center. Regulatory interpretations and corporate response materials based on the second FAQ released by the European Commission on August 3 will be provided through KOTRA's overseas market news.* This article has been translated by AI. 2026-08-24 16:16:10
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NH Savings Bank Launches Stability Loan for Low and Mid-Credit Borrowers NH Savings Bank announced the launch of the 'NH Mid-Interest Stability Loan' on August 24, aimed at providing financial support for low and mid-credit borrowers. The loan is available to Korean citizens aged 19 and older with a credit score in the bottom 50% at the time of application. Eligible applicants must have been employed for at least six months and have an annual income of at least 12 million won. Borrowers with existing credit loan balances that exceed their annual income can also apply. The maximum loan amount is 10 million won, with a repayment period of up to five years. Interest rates range from 5.5% to 15.27%, as of last month. Borrowers can choose between equal principal repayment and equal total repayment methods. Applications can be submitted through NH Savings Bank's mobile website and the 'NH FIC Bank' mobile application, eliminating the need to visit a branch. Following the earlier introduction of the 'NH Emergency Loan,' this new product expands NH Savings Bank's offerings for low and mid-credit borrowers. Kim Jang-seop, CEO of NH Savings Bank, stated, "We launched this product to help low and mid-credit customers secure stability funds at reasonable interest rates. We will continue to work on improving financial accessibility."* This article has been translated by AI. 2026-08-24 16:16:00