Aju Press - Asia News Hub

Journalist

Latest by

First Test Voyage of Arctic Shipping Route Begins from Busan A new challenge has begun in South Korea's shipping history. The Panstar Acro, the country's first container ship to test the Arctic shipping route, has departed from Busan New Port. This 2,758 TEU vessel will pass through the Bering Strait and enter the Northeast Passage, stopping in the United Kingdom, the Netherlands, and Poland before returning to Busan in early October. This marks the first time a container ship has navigated the Arctic route in a decade.The significance of this voyage extends beyond merely testing a new shipping lane. The Arctic route has the potential to reshape South Korea's shipping and logistics landscape. It could significantly reduce the distance and time required to reach Europe from Busan compared to the traditional route through the Suez Canal. If logistics costs can be lowered and transportation times shortened, this could provide a new competitive edge for South Korea's export-driven economy.The geopolitical implications are also substantial. As seen with the recent incidents in the Red Sea and the geopolitical instability in the Middle East, excessive reliance on specific shipping routes can disrupt entire supply chains. Adding the Arctic route as an option to the maritime logistics network concentrated around the Suez Canal and the Strait of Malacca could enhance supply chain stability. Busan Port stands to gain an opportunity to become a new logistics hub connecting Asia and Europe.However, the Arctic route will not open up simply based on expectations. The first consideration must be its economic viability. Even with a shorter sailing distance, additional costs arise from building ice-class vessels, insurance premiums, and securing specialized personnel. The operational period is limited by seasonal factors, and the route may change due to ice conditions and weather. It is essential to verify whether the reduction in distance directly translates to lower logistics costs through actual operational data.Safety is an even more critical concern. The Arctic Ocean is subject to severe weather changes, and rescue and support in case of accidents can be challenging. This is why personnel with polar navigation experience are involved in this voyage, and the government is maintaining a 24-hour communication system. To promote regular routes in the future, it will be necessary to establish stricter safety standards for vessels, provide weather and ice information, and enhance emergency response systems.Securing stable cargo is also crucial. Just because a ship can navigate does not mean a route will be established. Consistent cargo flow in both directions—from Busan to Europe and back—is necessary for a regular service. A cargo securing strategy involving domestic shipping companies, exporters, and logistics firms is essential.The government must not treat this voyage as a one-time event. It should accumulate data on sailing times, fuel costs, insurance premiums, cargo volumes, and weather changes to objectively analyze the economic viability of the Arctic route. Long-term preparations should also include developing dedicated vessels and specialized crews, as well as enhancing Busan Port's transshipment, maintenance, and supply capabilities.The departure of the Panstar Acro marks not the completion of a route but the opening of a door to possibilities. True success will not end with a safe return to Busan. The next challenge is to leverage the experiences gained from this voyage to enhance the competitiveness of South Korea's shipping industry and establish Busan as a hub for the Arctic shipping era. Careful preparations must begin now to ensure that the first shipping lane to the Arctic becomes a new economic route for South Korea.* This article has been translated by AI. 2026-08-23 16:32:00
Where is Troy Today? Exploring the Ancient City and Its Modern Connections After watching Christopher Nolan's film Odyssey, many viewers leave the theater with lingering questions. Why was Odysseus unable to return home for ten years? Where is Ithaca, the place he longed to return to? Did the Cyclopes, Sirens, Circe, and Calypso's island actually exist?However, before delving into these questions, there is a simpler yet intriguing one: "So, where is Troy today?"Many who read Homer's Iliad and Odyssey or watch the film may assume that Troy is located in Greece. This is because most of the key figures in the Trojan War, such as Agamemnon, Menelaus, Achilles, and Odysseus, are Greek heroes.Yet, Troy is not in present-day Greece.The ruins of Troy are located in Hisarlık, Çanakkale Province, in northwestern Turkey. This site is at the northwestern tip of Asia Minor, across the Aegean Sea from the Greek mainland. Even more surprising is Troy's location: according to UNESCO, the archaeological site is situated just about 4.8 kilometers from the southern entrance of the Dardanelles Strait.This single fact offers a new perspective on Troy's history. Why was Troy located there? Let's unfold a map.To the south lies the Aegean Sea. Heading north from the Aegean leads to the narrow and long Dardanelles Strait. Crossing this strait brings you to the Sea of Marmara, and beyond the Bosporus Strait lies the vast Black Sea.Aegean Sea → Dardanelles Strait → Sea of Marmara → Bosporus Strait → Black Sea.This route remains significant on today's world map, and it was even more crucial 3,000 years ago.Troy overlooked this vital passage.UNESCO also recognizes that for thousands of years, Troy served as a cultural bridge connecting Anatolia, the Balkans, the Aegean, and the Black Sea, facilitating migration, trade, and the exchange of knowledge. Evidence of human habitation in and around Troy spans approximately 8,000 years.Understanding Troy's geographical position allows us to see Homer's world in a different light.In mythology, the Trojan War began over a woman. Paris, a prince of Troy, took Helen, the wife of Spartan King Menelaus, back to Troy. Enraged, Menelaus and his brother Agamemnon united various Greek forces and launched an attack on Troy, leading to a ten-year war, as narrated in Homer's tales.However, looking at the map raises another question: Was it truly just for the beautiful Helen?Here, we must distinguish between history and myth. It has not been proven that the Trojan War occurred exactly as described by Homer. The assertion that the war started because of Helen, that Achilles and Hector actually fought, or that a massive wooden horse entered the city of Troy cannot be definitively established as historical fact.However, the existence of the city of Troy is an archaeological fact. It is also true that this city was located near a crucial maritime route of the time.Thus, if the actual historical conflict evolved into Homer's grand narrative, we might consider the interests surrounding trade, maritime routes, and power dynamics as potential underlying factors. Yet, declaring this as the true cause of the Trojan War would lead us to create another myth rather than history.Geography is key.In history, geography rarely lies. Three thousand years ago, a 'crossroads' meant wealth and power. Throughout human history, the rise and fall of great powers and cities have been linked to routes.There are land routes and sea routes. People and goods traverse these paths. Money flows with goods, and power follows money. Conflicts often arise where power collides.Troy was situated on such a route.To travel north from the Aegean world toward the Black Sea, one must pass through the narrow gateway of the Dardanelles. This is why the strategic importance of the Bosporus and Dardanelles remains significant today. Though thousands of years have passed, the sea and straits remain unchanged.Interestingly, just across the Dardanelles from Troy lies the Gallipoli Peninsula, a battleground of World War I. Despite nearly 3,000 years separating the era of Troy from the Gallipoli campaign, the geographical space over which people have fought has not significantly changed.Why is that?Because it is a crossroads. The best way to understand Troy may be to unfold a world map rather than read another mythological book.Now, in 2026, the world is searching for another island. After 3,000 years, Odyssey is reshaping the world map in a completely different way.On one side, people are looking to Turkey's Çanakkale and Hisarlık to find the true location of Troy. On the other side, they are heading to a small island in the Mediterranean to find Ithaca, the homeland of Odysseus in the film.This island is Favignana, located off the western coast of Sicily, Italy.Here, it is essential to distinguish between actual history and the film. The Ithaca that Homer's Odysseus sought to return to is connected to the modern Greek island of Ithaca in the Ionian Sea. However, Nolan filmed key scenes of Ithaca not on the actual Ithaca but on Favignana.Favignana is an island in the Egadi Islands, located off the coast of Trapani, Sicily. Due to its shape, it is also nicknamed the 'Butterfly Island.'Nolan transformed this location into Odysseus's homeland. The Castello di Santa Caterina, situated on the highest hill of Favignana, became the palace of Odysseus in the film. This site served as a significant backdrop for scenes featuring Penelope and Telemachus. The film crew shot not only in Favignana but also in the surrounding Egadi Islands and Aeolian Islands for various sea and island scenes.The choice of Favignana is intriguing.Production designer Ruth De Jong praised the island's high terrain, which offers views of the sea in all directions, allowing the boats used in filming to approach realistically. This was a space where actors could perform while feeling the actual wind and looking at the real sea, rather than in a computer-generated environment.This is a classic Nolan choice.The 'Odyssey effect' has arrived on the island, which has a resident population of about 3,000. According to Reuters, during the filming of Odyssey, around 500 local extras and crew were employed, with direct spending in the area estimated by local authorities to be between 1 million and 2 million euros. Following the film's release, investors from North America, the Middle East, and India have shown interest in high-end tourism ventures. Local authorities are also planning a permanent exhibition showcasing the film's production process, costumes, and equipment.Interestingly, the island's residents are already contemplating the next question.What will they do if too many people come?This reflects the power of 'screen tourism,' where a single film can create a global tourist destination. According to estimates cited by Reuters from the United Nations related to tourism, locations featured in popular films can experience significant increases in visitors. Favignana is beginning to connect the film's success to its tourism industry while also considering how to avoid overtourism.This is the new Odyssey of 2026.Three thousand years ago, Odysseus wandered the seas to return home. Three thousand years later, tourists from around the world are crossing the seas to trace Odysseus's footsteps.One film has created two maps. Therefore, after watching Odyssey, I encourage you to unfold two maps.The first map shows Troy in Turkey.Locate Çanakkale and Hisarlık, and trace the route to the Aegean Sea, then up to the Sea of Marmara, the Bosporus, and the Black Sea. You will begin to understand why Troy was situated there.The second map features Favignana in Italy.Find Sicily and look westward toward the sea off Trapani, where a small island appears. In the film, that island became Ithaca, the home Odysseus risked his life to return to, the place where Penelope waited, and where Telemachus grew up waiting for his father.One is a map of history, and the other is a map of film.One has drawn people for 3,000 years, while the other is beginning to attract global attention through a single film.Yet, the forces driving both places share a strangely similar trait: people move along paths.Three thousand years ago, people crossed the Aegean for trade and war. Today, people fly across the sea following films, stories, and culture. In the past, goods moved people; today, content moves people. Myths become literature, literature becomes film, and film creates tourism and economies.This may be the enduring power of Odyssey, which has survived for 3,000 years.Troy may be gone, but its place remains. Homer may have passed away, but his stories endure. The ship that Odysseus sailed may have vanished, but people still seek the seas he is believed to have traversed.And in the summer of 2026, Nolan's camera has once again turned the world's attention to that ancient tale.So, if asked where to travel first after watching Odyssey, I would suggest two places.If you want to learn about Troy, go to Çanakkale, Turkey.If you want to experience Nolan's Odyssey, head to Favignana, Italy.Between these two locations flows 3,000 years of myth, history, and human journeys. 2026-08-23 16:28:20
Toronto Celebrates BTS Weekend as Group Performs at Rogers Stadium Group BTS's visit to Canada has turned Toronto into a festive atmosphere.BTS is set to perform at Rogers Stadium in Toronto on August 22 and 23 as part of their 'BTS WORLD TOUR 'ARIRANG' IN TORONTO.' Both shows sold out quickly, marking the group's only performance in Canada during this world tour, drawing significant local and international attention.On August 21, the city of Toronto declared August 22 and 23 as 'BTS Weekend' in anticipation of the concerts. During this period, the iconic 'Toronto Sign' at Nathan Phillips Square will be illuminated in purple.Various initiatives across the city have welcomed BTS. On the same day, Toronto held an official ceremony to temporarily rename a section of Yonge Street in North York as 'BTS Boulevard.' This boulevard stretches from North York Boulevard to Finch Avenue and will remain in place until September 23.The newly installed signs feature the red color associated with BTS's fifth studio album, 'ARIRANG.' This project aims to promote the Korean community and culture in North York while boosting local tourism.The Toronto tourism industry is also focusing on BTS's visit. Destination Toronto, the city's official tourism marketing organization, has created 'The Ultimate BTS Weekend Guide.' This guide includes information on Koreatown, Korean cuisine, shopping, attractions, and transportation to Rogers Stadium, allowing fans visiting for the concert to experience various aspects of Toronto.Local media have highlighted the excitement surrounding the concerts. Canadian outlet CityNews reported on fans visiting BTS-related pop-ups and the unveiling of 'BTS Boulevard,' noting that fans from across Canada and abroad are converging on Toronto.To accommodate the large influx of visitors, transportation measures have been implemented. Toronto is expanding public transit services and on-site personnel in preparation for the busy weekend filled with major events, including the BTS concerts.BTS's performances in Toronto are evolving into a significant event that goes beyond a concert, linking city tourism, local businesses, and the promotion of Korean culture.* This article has been translated by AI. 2026-08-23 16:28:00
Kazakhs in Seoul vote in first Kurultai election SEOUL, August 23 (AJP) - The first voter reached the Kazakh embassy in Seoul at 7 a.m. Sunday, hours before most of the roughly 300 Kazakh nationals eligible to cast ballots in South Korea would make their way to the compound to help choose their country's new parliament. She was Azhar Karimzhanova, 23, a student at Korea University, according to Rakhymzhan Altynbay, an official at the embassy. By 1:30 p.m., Altynbay said, about 70 people had voted. That is roughly a quarter of the eligible electorate in the country, and they kept arriving through the morning. Some brought children. Some came with family. A few stopped to greet one another at the gate before going in. The Seoul station is one of 79 the Central Election Commission opened at Kazakh diplomatic missions in 61 countries. Voters abroad receive the same ballot as those at home, and there is no postal or online option. At stake are all 145 seats of the Kurultai, the single chamber that replaced the Senate and the Mazhilis when a new constitution took effect July 1. Seven parties are running 545 candidates in one nationwide district. Self-nomination is not allowed. Ulanbek Aueskhan came on his day off with his five-year-old son. He has lived in South Korea for more than 10 years, took his bachelor's degree through his doctorate here, and works as a researcher at Samsung Electronics. He said he brought the boy deliberately. "I wanted to show him," Aueskhan said. "Our country does this. He should see it while he is young, and experience it directly." Voting from abroad, he said, was a way of staying useful to a country he no longer lives in. "We are outside the country, but there is still a contribution to make," he said. "Even from Korea, we can support Kazakhstan." Asked what the new chamber would change, he pointed to the merger itself. "Until now there were the Senate and the Mazhilis," he said. "Now they are combining, so decisions can be made faster." Alisher Saduakas, 28, arrived with him. They are colleagues, both researchers at Samsung Electronics, and Saduakas lives in Suwon. He has been in South Korea for 10 years and had never voted in his life. "I had no plans to vote," he said. "Ulanbek said we should come and do it together. This is the first time, and it feels good." What changed, he said, was that he can now follow what is happening at home. "There was no Kurultai before, and things were complicated," Saduakas said. "Now I can see how it works on social media, what is moving in Kazakhstan. So I thought I could support it too." Kazakhstan's ambassador to South Korea, Asset Issenali, who presented his credentials on July 22, was at the embassy as voters came through. He said the country was in the middle of political and economic transformation, and that the new chamber would let it pass legislation to make economic reform more effective. "This will be a stepping stone," Issenali said. Polls close in Kazakhstan on Sunday evening. The commission has accredited 781 foreign and international observers, among them 39 long-term and 208 short-term monitors sent by the Organization for Security and Co-operation in Europe through its Office for Democratic Institutions and Human Rights. Aueskhan's son waited beside him while he marked his ballot. "From a young age, here, you have to show them," his father said. 2026-08-23 16:22:04
Government and Party Agree to Ease Tax Burden for Non-Resident Homeowners The government and the Democratic Party have agreed to ease the tax burden on non-resident homeowners and transfer authority for redevelopment and reconstruction projects involving fewer than 500 units to local leaders. This initiative aims to reduce market uncertainty stemming from tax reforms while accelerating housing supply in the metropolitan area by decentralizing approval powers. On August 23, the Democratic Party and the government held a high-level meeting at the Prime Minister's residence in Samcheong-dong, Seoul, to discuss real estate tax reform, housing supply strategies for the metropolitan area, and improvements to redevelopment and reconstruction systems. The Democratic Party expressed concerns over the government's proposal to strengthen the comprehensive real estate tax burden on non-resident homeowners and requested that the government not differentiate between resident and non-resident homeowners when imposing the tax. However, it remains unclear whether the government will accept this request. Park Sung-jun, the party's chief spokesperson, told reporters after the meeting, "The party strongly requested that the government not distinguish between resident and non-resident homeowners regarding the tax burden on single-homeowners." He added that both sides agreed on the need to broadly recognize non-resident homeowners who cannot reside in their properties due to unavoidable reasons such as work, children's education, or caring for parents. The government's proposal to lower the basic exemption for non-resident homeowners from 1.2 billion won to 900 million won was also discussed as a potential area for revision. The Democratic Party believes that the tax burden will naturally increase due to rising property values, and thus, reducing the basic exemption should be carefully considered. Park noted that since both sides agree on the need to alleviate the burden on non-resident homeowners, they expect to finalize supplementary measures before the Cabinet meeting on September 1 and the National Assembly submission on September 3. Kim Min-seok, the Democratic Party leader, emphasized during the meeting that "the real estate tax reform and housing supply measures for the metropolitan area are of great public interest," urging careful consideration of the cascading effects on the rental market. Kim also evaluated the proposal to convert the long-term capital gains tax special exemption into a long-term residency income deduction as a positive step toward strengthening a housing market order centered on actual residents. In terms of housing supply, the government plans to transfer authority for redevelopment and reconstruction projects involving fewer than 500 units to local leaders. Both the government and the party agreed on the need to distribute the currently centralized authority for small-scale redevelopment projects to local leaders to shorten approval periods and expedite projects that align with local conditions. They will also review institutional improvements, including amendments to enforcement regulations, and explore ways to expand private sector participation in redevelopment and reconstruction projects. Expanding housing supply for future generations, including young people and newlyweds, was also a key agenda item. The government and the party agreed to expedite approval processes to secure supply volumes early and reduce project durations, with plans to address necessary legislation during the regular National Assembly session. The government will continue discussions with Seoul City regarding housing supply. Minister of Land, Infrastructure and Transport Kim Yoon-deok and Seoul Mayor Oh Se-hoon are scheduled to meet this week to discuss housing supply plans in central Seoul, including Yongsan Park. Park noted, "There have been discussions regarding Yongsan Park, but it seems we are not at the stage to announce specific details yet," adding that a final decision has not been made. 2026-08-23 16:20:00
InnoBiz Conducts Training for East Timor Officials on Digital Transformation and Manufacturing Innovation On August 23, the Small and Medium Business Technology Innovation Association (InnoBiz) announced the completion of a training program for East Timorese officials aimed at enhancing their capabilities in industrial policy.This training is part of the Korea International Cooperation Agency (KOICA) global training project, which will be implemented over three years from 2026 to 2028.The inaugural session took place from August 9 to 22 at the KOICA training center in Seongnam, South Korea, with 17 participants, including Odete Belo, Director of the Manufacturing Industry Department of the East Timor Ministry of Commerce.The training covered five key topics: the role of small and medium enterprises in Korea's economic development, policies for fostering technology-driven SMEs, the policy environment for SMEs in the global and ASEAN context, digital transformation (DX), and startup support policies. Participants also visited the Seoul AI Summit & Expo, Tip Town, Incheon Startup Park, the Korea Institute of Industrial Technology's Manufacturing AI Research Center, and the Lotte Chilsung Beverage Anseong Plant.Based on the lectures and site visits, the participants developed an 'Action Plan for SME Development' tailored for East Timor. This plan will be submitted as a policy improvement task to the East Timor Ministry of Commerce and will be further refined in the second and third years of the training program.Antonio de Sa Benevides, the East Timorese Ambassador to South Korea, stated, "The application of Korea's SME policies and innovation ecosystem will be reflected in the formulation of East Timor's SME policies. I hope this training will lead to sustained cooperation between our two countries."Jeong Kwang-cheon, President of InnoBiz, remarked, "With East Timor's accession to ASEAN, the scope for regional economic cooperation is expanding. We aim to establish a foundation for cooperation between businesses in both countries by sharing Korea's SME policies and examples of fostering technology-driven enterprises." 2026-08-23 16:12:00
IAGIS Expands from Building Management to Urban Development IAGIS Asset Management is broadening its scope from being a "building management company" to a "city development company." As South Korea's largest real estate asset management firm, IAGIS is rapidly expanding its business areas and scale, from the IOTA Seoul project, which is reshaping the area around Seoul Station, to the Seoripul mixed-use development in Gangnam and data centers.As of the end of last year, IAGIS reported approximately 73.3 trillion won in assets under management (AUM). Among its 439 employees, over 330 are specialized in operations, investment, and development. The firm is evolving into the country's largest "management-type developer," moving beyond buying and selling individual buildings to directly managing land acquisition, development, operations, and sales.However, with the growth in business scale comes increased risk. Even the industry leader in project financing (PF) has not been able to avoid challenges in the multi-trillion won mixed-use development sector. The key project, IOTA Seoul 2, faced a bridge loan expiration and auction crisis, and the sale of management rights fell through last month.The question now is whether IAGIS can overcome the dual challenges of large-scale development projects and uncertainties in its governance structure, marking the next test for the domestic management-type developer model.Developing Seoul Station and Gangnam: Expanding the 73 Trillion Won PlatformAt the forefront of IAGIS's development strategy is the IOTA Seoul project, which aims to transform the area around Seoul Station. This initiative links the former Millennium Hilton Seoul site, Metro Building, and Seoul Lotte Tower to create a mixed-use space that includes offices, hotels, retail, and green areas. The project will feature an AI-based large office, the luxury Ritz-Carlton hotel, and a pedestrian pathway connecting Seoul Station to Namsan Park.Rather than merely constructing individual buildings, the plan seeks to fundamentally change the spatial structure of the area around Seoul Station by integrating work, commerce, accommodation, and green spaces. The company aims to emulate global mixed-use developments like Tokyo's Azabudai Hills and New York's Hudson Yards.IAGIS is attempting to differentiate its office designs from existing developments. The standard floor area for IOTA is 3,798 square meters, accommodating over 350 employees per floor. This strategy aims to attract large tenants, including major tech and financial firms, by addressing the limitations of traditional urban office layouts through a "large plate" design.In Gangnam, IAGIS is also scaling up its development efforts. The Seoripul mixed-use development, located on the former site of the National Intelligence Service, is a prime example. This project combines advanced tech offices with cultural and artistic facilities, such as performance venues and exhibition spaces, to extend the business district's reach from Teheran-ro to the Seocho area.The foundation for IAGIS's ambitious projects lies in its large-scale management platform. By segmenting its investment, funding, business development, and management operations, the company can oversee the entire project lifecycle, from land acquisition to financial structuring, design and construction management, tenant attraction, operations, and sales.Unlike traditional developers who rely on bridge loans and main PF after securing land, IAGIS's ability to integrate institutional LPs and real estate funds into the financial structure from the outset is a significant advantage of the management-type developer model.An IAGIS representative stated, "IAGIS possesses proven capabilities developed through successful projects like the Yeoksam Centerfield and Magok One Grove, as well as data centers in Hanam and Goyang. We are committed to responsible development that transforms not just buildings but urban ecosystems and establishes future industrial infrastructure securely."Next Focus: Data Centers with a 520MW Goal by 2031The development focus is rapidly shifting from offices to future industrial infrastructure.In 2019, IAGIS developed a 40MW data center in Hanam, managing the entire process from land acquisition to development and sale. Recently, it completed the Goyang Samsong data center, the largest of its kind in the northwest metropolitan area, with a capacity of 80MW.The company claims it is the only domestic asset management firm to have completed more than two hyperscale data centers. Currently, it is also developing new data centers in the metropolitan area and Busan, aiming to establish a total digital infrastructure portfolio of 520MW by 2031.Data centers can generate stable cash flow through long-term leases, but they also face high entry barriers, particularly in securing power and obtaining permits. According to CBRE data cited by the company, as of March, only 10 out of 522 applications for power system impact assessments in the metropolitan area had received final approval, resulting in an approval rate of just 1.9%. This background enhances the competitive edge of developers with prior construction experience and expertise in securing power.However, as development projects grow, challenges arise that cannot be resolved solely with 73 trillion won in AUM. A notable example is IOTA Seoul 2. Delays in transitioning to main PF led to a bridge loan expiration, and at one point, an auction process worth approximately 1.2 trillion won was initiated.IAGIS secured new major lenders, including Meritz Financial and NH Investment & Securities, and completed bridge loan refinancing in April, alleviating immediate concerns. However, this is not the final financial structure for the project; it is merely a temporary solution. The company still faces the task of transitioning to main PF to secure long-term project financing.The success or failure of IOTA will serve as a case study for whether IAGIS's management-type development model can function effectively in multi-trillion won projects. It also highlights that even companies managing large institutional funds cannot escape traditional PF risks related to construction costs, interest rates, and lender composition as project scales increase.Additionally, governance issues have compounded the situation. IAGIS had selected Hillhouse Investment as the preferred negotiator for the sale of management rights, but disagreements over price and transaction terms led Hillhouse to ultimately halt the acquisition process in July. The management rights sale has returned to square one.Earlier, in April, CEO Cho Gab-joo returned to the forefront of management after nearly five years. Restoring relationships with institutional investors and stabilizing the organization, which had been shaken by the prolonged management rights sale, are among the key challenges ahead. The firm relies on contributions from institutional LPs to create funds, which are then reinvested in real estate investments and development projects, making trust in management and major shareholders a crucial part of its funding competitiveness.Industry insiders note, "In the case of IAGIS, the growing complexity of conditions that need to be considered as a management-type developer is becoming evident. In the past, the focus was solely on securing quality assets and achieving high returns upon sale, but now, the ability to secure PF for multi-trillion won projects, along with trust from institutional LPs and management stability, is also required."* This article has been translated by AI. 2026-08-23 16:04:00
Banks Accelerate Downsizing and Real Estate Sales to Secure Capital Banks are rapidly downsizing as they adapt to the rise of digital banking. They are reducing the number of branches and restructuring their networks to focus on smaller outlets while selling off underutilized real estate to bolster their capital.According to the Financial Supervisory Service, as of the end of June, the total number of branches for KB Kookmin, Shinhan, Hana, and Woori banks was 2,702, an increase of 11 from 2,691 in June of last year. However, the number of branches for these four banks decreased from 2,252 in June 2022 to 2,201 in June 2023, a drop of 51 (2.3%), while the number of smaller outlets rose from 439 to 501, an increase of 62 (14.1%).Smaller outlets are facilities that handle relatively simple tasks, such as account openings, and are less costly to operate. By increasing the number of these smaller outlets, banks are managing to cope with regulatory pressures to maintain branch numbers.Banks are also accelerating the sale of their real estate holdings. Kookmin Bank initiated the sale of nine idle properties nationwide last month, including five in Seoul, such as the Yangpyeong Comprehensive Financial Center, as well as two in Gyeonggi Province, one in Daegu, and one in Daejeon.Shinhan Bank is also in the process of selling its Myeongdong 'Shinhan Expace' branch and a staff dormitory in Seongsu-dong, which have been in operation for about 40 years.Woori Financial Group has selected Gravity Asset Management as the preferred negotiator for the sale of the 'Woori Financial Digital Tower' in Myeongdong and is currently in negotiations. Woori Bank also put 14 branches, including the Galleria Palace branch in Jamsil, the Haeundae Centum Park branch in Busan, and the Suwon Financial Center, up for auction on August 11.The trend of banks reducing branches and selling valuable real estate is seen as a move to streamline unnecessary assets and enhance financial stability. Selling idle properties can reduce fixed costs such as maintenance and management fees while also improving the Common Equity Tier 1 (CET1) capital ratio through asset optimization.The growing importance of capital expansion, driven by increased shareholder returns, is also cited as a reason for banks to pursue efficiency. To support dividends and share buybacks, managing capital ratios is crucial, necessitating the disposal of underperforming assets to utilize limited capital effectively. Additionally, with lending regulations constraining profit growth, securing funds for productive finance has become increasingly important.A financial industry official stated, "As digital operations expand and the need for capital management grows, banks are moving towards operational efficiency. The trend of selling real estate to utilize capital and liquidity effectively is likely to continue."* This article has been translated by AI. 2026-08-23 16:04:00
Tax Breaks for Large Corporations Surge 82% in a Year, Small Businesses Lag at 4% Last year, tax breaks for major corporate groups surged by over 80% compared to the previous year. In contrast, the increase in tax breaks for small businesses was limited to just 4%, significantly raising the share of tax breaks allocated to large corporations.According to the '2025 Tax Expenditure Statement' received by Representative Lee Yang-soo of the People Power Party from the Ministry of Economy and Finance on August 23, tax breaks for inter-affiliated corporate groups amounted to 4.2685 trillion won, an 81.8% increase from 2.3476 trillion won the previous year.Inter-affiliated corporate groups are classified as those with total assets exceeding 0.5% of the country's GDP, typically referred to as 'major corporate groups.' As of this year, 47 groups have been designated.Of the total corporate tax breaks of 26.7612 trillion won, inter-affiliated groups accounted for 16.0%, a rise of 6.2 percentage points from the previous year. Tax expenditures are a system where the government reduces taxes for specific policy purposes, effectively resembling fiscal spending.In contrast, tax breaks for small businesses reached 18.8301 trillion won, reflecting a modest 4.3% increase from the previous year. Their share of total corporate tax breaks also declined from 75.1% to 70.4%.The significant increase in tax breaks for large corporations is attributed to the expansion of tax credits related to research and development (R&D) and facility investments. Last year, tax credits for research and human resource development amounted to 4.1476 trillion won, an increase of 1.1902 trillion won, while the integrated investment tax credit rose by 719.4 billion won to reach 2.4887 trillion won.The improvement in corporate performance in 2024 also contributed to the reflection of carryover deductions during last year's corporate tax filing process, along with the expansion of tax credit eligibility for new growth and core technologies, as well as national strategic technologies.Last year, the total amount of national tax breaks was 76.1084 trillion won, an increase of 5.5914 trillion won from the previous year. The national tax break rate was 15.9%, a decrease of 0.2 percentage points from the previous year, but still exceeded the legal limit of 15.5% by 0.4 percentage points.The largest category of tax breaks was 'special income deductions and special tax credits for insurance premiums,' totaling 7.253 trillion won. This was followed by pension insurance deductions (4.7581 trillion won), earned income tax credits (4.6367 trillion won), income deductions for credit card usage (4.3243 trillion won), and integrated employment tax credits (4.3035 trillion won).Meanwhile, the government projects this year's national tax breaks to reach 80.5277 trillion won, with a tax break rate of 16.1%. The Ministry of Economy and Finance recently announced a '2026 tax reform plan' that aims to streamline 115 out of 241 total tax expenditures, resulting in an estimated reduction effect of about 2.5 trillion won.* This article has been translated by AI. 2026-08-23 16:04:00
Korea's drinking culture loses its buzz as alcohol shipments hit 27-year low SEOUL, August 23 (AJP) - South Korea's alcohol shipments fell below 3 million kiloliters for the first time since the Asian financial crisis, as declining consumption and changing drinking habits continue to reshape a market long dominated by beer, soju and company gatherings. Domestic alcohol shipments totaled 2.988 million kiloliters last year, according to data from the National Tax Service's Tax Statistics Information Service, or TASIS. It marked the first time shipments fell below 3 million kiloliters since 1998, when the country was reeling from the Asian financial crisis and shipments stood at 2.922 million kiloliters. The latest figure represents a 21.5 percent decline from 3.804 million kiloliters in 2015. The contraction was particularly pronounced in Korea's two dominant alcohol categories. Beer shipments fell 7.2 percent from a year earlier to 1.519 million kiloliters, dropping below 1.6 million for the first time, while shipments of diluted soju fell below 800,000 kiloliters for the first time to 793,000 kiloliters. Takju, a category that includes the traditional Korean rice wine makgeolli, also declined for a fifth consecutive year to 318,000 kiloliters. The figures come as surveys point to a gradual shift in how Koreans consume alcohol. According to a 2025 alcohol industry survey by the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corp., consumers drank on an average 8.8 days per month, down from 9.0 days a year earlier. Average consumption per drinking day edged down to 6.6 glasses from 6.7. At the same time, drinking is increasingly moving away from traditional group occasions toward more individualized consumption. Convenience-store purchases were cited by 85.5 percent of respondents as a major alcohol trend, followed by drinking at home at 54.2 percent, drinking alone at 52.2 percent and seeking a wider variety of flavors at 49.1 percent. That shift is creating pockets of growth even as the overall market contracts. Fruit wine shipments recovered to 17,000 kiloliters last year, while general distilled spirits reached 4,000 kiloliters, their highest level since 2015. Brandy shipments rose to 31 kiloliters, the highest since 2017. The diverging trends suggest South Korea's alcohol market is not simply shrinking, but becoming more fragmented as consumers drink less frequently while showing greater interest in where, how and what they drink. AJP Takeaways: South Korean alcohol shipments fell to 2.988 million kiloliters last year, slipping below 3 million for the first time since 1998. Beer and diluted soju both fell through historic shipment thresholds, while overall alcohol shipments have dropped 21.5 percent from 2015. Consumption is shifting toward home and solo drinking and a wider variety of products, with some categories such as distilled spirits growing despite the broader market decline. 2026-08-23 15:37:07