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  • Samsung and SK Hynix Enter Shareholder Return Competition Amid AI Boom
    Samsung and SK Hynix Enter Shareholder Return Competition Amid AI Boom Samsung Electronics and SK Hynix are entering a competition for shareholder returns, fueled by a cash influx from the booming artificial intelligence (AI) memory market. SK Hynix kicked off the rivalry by announcing a 40 trillion won stock buyback and cancellation. Samsung Electronics is also expected to finalize its next shareholder return policy this month, raising interest in how it will allocate cash generated from AI semiconductors between investments and shareholder returns.According to industry sources, SK Hynix's board of directors approved the 40 trillion won stock buyback and cancellation on August 19. The buyback will target approximately 24.07 million shares, representing about 3.3% of the total issued shares. The company plans to acquire these shares over the next three months and then cancel them, marking the largest stock buyback and cancellation in the history of South Korean listed companies.SK Hynix has also raised its shareholder return target. The company will now return over 50% of its cumulative free cash flow (FCF) from 2025 to 2027, up from the previous target of 50%. It plans to conduct both stock buybacks and cash dividends, and is considering expanding dividends to include special dividends.The backdrop for SK Hynix's increased return capacity is the AI memory boom, which led to an operating profit of 60.54 trillion won in the second quarter. By the end of the second quarter, its net cash had risen to approximately 69 trillion won. Analysts expect significant increases in FCF for this year and next. Samsung Securities noted that the stock buyback signals a reduction in the number of issued shares while demonstrating management's confidence in sustained profitability.Attention is also focused on Samsung Electronics. The company currently operates a policy that returns 50% of its FCF from 2024 to 2026 to shareholders, with annual regular dividends amounting to about 9.8 trillion won. The market speculates that Samsung may finalize additional shareholder return measures, including special cash dividends, at its board meeting later this month.SK Hynix's announcement of a massive 40 trillion won buyback has heightened expectations for Samsung's response. Given the improved cash generation from the AI memory boom, analysts believe the market will demand returns exceeding the company's existing policy. Following SK Hynix's announcement, Samsung's stock rose by 9.49%, while SK Hynix's shares surged by over 12%, indicating that shareholder return expectations are influencing the stock valuations of both companies.However, the capital allocation conditions for the two companies differ. Samsung operates in multiple sectors, including memory, foundry, and mobile, which require substantial investments. SK Hynix also needs to invest heavily in expanding its AI memory production capacity, including the Yongin cluster and Cheongju expansion. Analysts emphasize that how both companies allocate their cash flow in the future will be more critical than the absolute amount of cash they have on hand.The market is also paying attention to the possibility that this competition will not be limited to a one-time stock buyback. SK Hynix has committed to returning over 50% of its FCF for three years, and Samsung Electronics may reflect the cash increase from the AI boom in its upcoming policy. The AI semiconductor boom is reshaping not only capital investments but also the capital allocation and shareholder return policies of major semiconductor companies.A business insider stated, "The AI memory boom has elevated the cash generation capabilities of Samsung Electronics and SK Hynix to unprecedented levels. Balancing ongoing investments while returning a portion of the increased cash to shareholders will be a crucial factor in the future valuation of both companies."* This article has been translated by AI. 2026-08-21 15:20:00
  • Early-August exports hit record high as chip shipments stay strong
    Early-August exports hit record high as chip shipments stay strong SEOUL, August 21 (AJP) - South Korea's exports surged 56 percent from a year earlier to a record high for August in the first 20 days of this month, as semiconductor shipments nearly tripled and again drove the country's export growth, according to preliminary data released by the Korea Customs Service (KCS) on Friday. Exports totaled $55.21 billion from Aug. 1 to 20, the highest ever for the period, while imports rose 19.0 percent to $41.23 billion, resulting in a trade surplus of $13.98 billion. The increase came despite fewer working days, with 14 days during the period compared with 14.5 days a year earlier. Average daily exports climbed 61.5 percent to $3.94 billion from $2.44 billion. Semiconductor exports jumped 198.8 percent to $26.03 billion, accounting for 47.2 percent of the country's total outbound shipments, up 22.5 percentage points from a year earlier. The chip tally was the highest ever for the first 20 days of this month and surpassed the previous record of about $25.5 billion set during the same period in June. The latest figures show how heavily South Korea's record export performance continues to rely on semiconductor shipments. AJP analyzed customs data and found that, excluding semiconductors, exports rose about 9.3 percent from a year earlier, far below the 56.0 percent increase in overall shipments. Other technology-related products also posted strong gains, with exports of computer peripherals surging 242.1 percent and petroleum products rising 56.4 percent. But not all major industries saw growth, as passenger-car exports fell 45.1 percent, ship exports dropped 60.5 percent and auto-parts shipments declined 19.9 percent. By destination, exports to China more than doubled, rising 118.6 percent to $15.26 billion, while shipments to the U.S. increased 59.4 percent to $7.98 billion. Exports to Viet Nam climbed 67.4 percent to $5.83 billion and shipments to Hong Kong surged 245.5 percent to $3.63 billion. Exports to the European Union, by contrast, fell 3.2 percent. China, the U.S. and Viet Nam together accounted for 52.6 percent of South Korea's exports during the period. Imports of semiconductors rose 59.4 percent, while purchases of semiconductor manufacturing equipment jumped 89.3 percent. Crude-oil imports rose 17 percent, while gas imports fell 17.1 percent, leaving combined imports of crude oil, gas and coal 11.1 percent higher than a year earlier. Cumulative exports so far this year totaled $650.27 billion, up 51 percent from a year earlier, while imports rose 18.3 percent to $468.54 billion, resulting in a trade surplus of $181.74 billion. Meanwhile, the KCS cautioned that the figures are preliminary and cover only the first 20 days of the month, so comparisons may be affected by differences in the number of working days. 2026-08-21 15:15:09
  • Korean Party Faces Backlash After Disciplining Lawmakers
    Korean Party Faces Backlash After Disciplining Lawmakers The People Power Party's Central Ethics Committee has faced ongoing backlash as it imposed a suspension of party membership on four lawmakers, including Jo Kyung-tae, Kwon Young-jin, Seo Beom-soo, and Jin Jong-oh. Critics, particularly from the non-mainstream faction, have raised concerns that the disciplinary actions are aimed at eliminating political rivals who have called for the resignation of party leader Jang Dong-hyuk. Senior party members have also expressed their worries.Jin, who has been suspended for two years, held a press conference at the National Assembly, demanding that the Ethics Committee disclose when, where, and how he allegedly supported independent candidate Han Dong-hoon. He stated, "If they cannot provide this information, the Ethics Committee will have to admit it has become a mere follower of Chairman Jang." He hinted at the possibility of legal action regarding various aspects of the committee's proceedings.Kwon Young-jin, who received a 1.5-year suspension, expressed his concerns on CBS Radio, questioning whether the actions were politically motivated to eliminate dissenting voices. He remarked, "Isn't this a warning that if you challenge me, you won't receive nominations next time?"The 'Alternatives and Future' group, which includes some of the disciplined lawmakers, issued a statement urging Chairman Jang and the leadership to make wise decisions. They warned that severe disciplinary measures could lead to division within the party, stating, "When politics wields a sword, it can inflict wounds on the very fabric of society."Among veteran lawmakers, there were also significant concerns. Five-term lawmaker Yoon Sang-hyun took to Facebook, urging a reconsideration of the harsh penalties, emphasizing that what is needed now is not exclusion but unity. He called for a return to the core principles of politics, focusing on the people's livelihood and governance.Five-term lawmaker Na Kyung-won noted that the timing and severity of the Ethics Committee's actions do not benefit the leadership. She pointed out that while punishing one person can serve as a warning to many, punishing many can harm the community. Na expressed hope that the remaining procedures, including the Supreme Council's decisions and re-examinations, would be adjusted in a way that benefits the party. Four-term lawmaker Kim Tae-ho also addressed Chairman Jang, stating, "While the party constitution grants you the position, your representation comes from the people and party members. You can silence criticism with discipline, but you cannot discipline public sentiment."Meanwhile, independent lawmaker Han Dong-hoon criticized the disciplinary actions as a form of political maneuvering that aids the Democratic Party amid its crises. He remarked, "This disciplinary politics for personal gain is helping the beleaguered Lee Jae-myung administration by diverting attention from its issues."As for the three lawmakers, excluding Seo, who face suspensions of 1.5 years or more, if the penalties are confirmed, their chances of receiving nominations from the People Power Party in the next general election will be virtually impossible. Kwon and Seo have stated they will not take legal action for now, while Jo and Jin have not clarified their positions. 2026-08-21 15:12:00
  • Samsung Expected to Overtake Apple as Smartphone Market Leader This Year
    Samsung Expected to Overtake Apple as Smartphone Market Leader This Year Samsung Electronics is projected to reclaim its position as the leading smartphone manufacturer this year, four years after losing the title to Apple.On August 21, Bloomberg reported, citing data from global market research firm Counterpoint Research, that global smartphone shipments are expected to decline by 14.3% this year due to a shortage of memory supply and subsequent price increases. However, Samsung is anticipated to achieve a remarkable 0.8% increase in shipments compared to last year, thanks to its advanced supply chain and mature distribution network. This could allow Samsung to regain the top spot in the smartphone market, which it has ceded to Apple for three consecutive years since 2023.Indeed, Samsung's Galaxy Z Fold 8 series pre-sales, which ran until August 3, reached 1.44 million units, marking the highest pre-order volume for Samsung smartphones despite the price hikes.Yang Wang, a senior researcher at Counterpoint Research, stated, "Samsung's return to the top of the smartphone market is due to its internal component production capabilities, extensive product portfolio, and strong relationships with carriers and retailers." In contrast, Apple, like Samsung, has maintained significant sales support despite price increases, but its outlook for this year appears more conservative. Apple is expected to officially unveil Siri AI, which incorporates artificial intelligence features, and a foldable iPhone this fall, but the likelihood of a major upgrade boom is considered low. Yang noted, "While foldable phones and on-device AI will support product differentiation and premiumization, they are unlikely to create a supercycle that significantly boosts shipments." Additionally, aside from Samsung, Huawei, which has built its own hardware supply chain despite U.S. sanctions, is expected to continue its significant growth. However, Chinese smartphone manufacturers like Oppo, Vivo, and Honor, which focus on low-cost models, are projected to see their shipments decline by as much as 34% this year, according to Counterpoint Research. Yang remarked, "Major Chinese smartphone manufacturers are expected to face considerable pressure in terms of shipments, and the ongoing downturn in the market is likely to accelerate industry consolidation, which remains Counterpoint's baseline scenario." Counterpoint Research forecasts that global smartphone shipments will continue to decline until 2027, before entering a recovery phase starting in the following year.* This article has been translated by AI. 2026-08-21 15:08:00
  • South Korea Grants Long-Term Residency to Sri Lankan Workers Who Rescued Air Force Pilots
    South Korea Grants Long-Term Residency to Sri Lankan Workers Who Rescued Air Force Pilots The Ministry of Justice has granted long-term residency status to two Sri Lankan workers for their role in rescuing Air Force pilots whose lives were in danger after a crash.On August 21, the Ministry announced that it recognized the special contributions of the two Sri Lankan nationals who rescued the pilots of an Air Force fighter jet that crashed in the West Sea in August 2022. They were awarded the Skilled Worker Visa (E-7-4) to allow them to reside in South Korea more securely.The workers entered South Korea in April 2022 under the Employment Permit System (E-9). On August 12 of the same year, while working near Hwaseong, Gyeonggi Province, they discovered the pilots after their jet crashed due to an engine fire and assisted in their rescue alongside the vessel's captain. Their efforts were recognized with a letter of appreciation from the Chief of Staff of the Air Force during the World Day for Cultural Diversity on May 20.In light of their significant contribution to the national interest by rescuing the endangered pilots, the Ministry of Justice's Immigration and Foreign Policy Bureau decided to grant these foreign workers the long-term residency status as skilled workers (E-7-4).Minister of Justice Jeong Seong-ho stated, "Recognizing the dedication of foreigners who save lives enhances trust in our society. We will continue to support foreigners who make special contributions to our community, ensuring they can live stably in South Korea."* This article has been translated by AI. 2026-08-21 15:08:00
  • Jipyung Law Firm Supports Successful 12th South Korea International Arbitration and Corporate Crime Summit
    Jipyung Law Firm Supports Successful 12th South Korea International Arbitration and Corporate Crime Summit Jipyung Law Firm announced on August 21 that it participated as a main sponsor in the 12th South Korea International Arbitration and Corporate Crime Summit, hosted by Legal Plus, a global legal event organization, on August 20.This year’s summit, marking its 12th edition, covered a wide range of pressing issues in international disputes, including interim relief measures in cross-border disputes, M&A and joint venture-related conflicts, construction and energy sector disputes, and technology disputes surrounding digital assets and artificial intelligence (AI). Legal and dispute resolution experts from both domestic and international backgrounds, as well as in-house counsel and representatives from arbitration and mediation institutions, attended to share insights on the latest trends and practical responses in international disputes.The opening remarks were delivered by Kim Jin-hee, a foreign attorney and head of the international dispute team at Jipyung. She addressed the new roles and challenges that the rapidly changing legal environment demands from legal professionals, emphasizing the importance of adapting to these changes.The summit featured six thematic presentations and five panel discussions, with over 20 speakers and discussants participating. Jeon So-min, a foreign attorney from Jipyung’s international dispute team, took part in the first panel discussion, while Kim Jin-hee moderated the second panel.In the first panel discussion on 'Interim Relief Measures in Cross-Border Disputes,' Jeon So-min highlighted various interim relief measures applicable in international arbitration and litigation, discussing key issues to consider during the enforcement process. She stressed the need for strategic responses at the initial stages, taking into account the legal systems and enforceability in different countries, and shared insights on effective rights preservation strategies.The second panel discussion, focused on 'Mediation and Hybrid ADR Models,' was led by Kim Jin-hee. She guided the discussion on the practical challenges faced by mediation in the legal environments of Korea and Asia, the unique value of mediation, and the conditions necessary for successful mediation processes, as well as the competencies required from attorneys.Kim facilitated the exchange of views among panelists on the practical implications of utilizing mediation and concluded the session with a Q&A segment, engaging with attendees.Kim Jin-hee remarked, "As the landscape of international disputes becomes increasingly complex with the emergence of new types of conflicts, this summit was significant in that domestic and international experts shared their experiences and perspectives to seek practical solutions. I hope this summit helps companies proactively assess various dispute possibilities and develop more effective response strategies."* This article has been translated by AI. 2026-08-21 15:00:00
  • Anyang Mayor Choi Dae-ho Calls for Increased Awareness of Unpaid Vehicle Taxes
    Anyang Mayor Choi Dae-ho Calls for Increased Awareness of Unpaid Vehicle Taxes Anyang Mayor Choi Dae-ho emphasized the importance of raising awareness about unpaid vehicle taxes, stating, "I hope this crackdown will foster a culture of voluntary payment among those with outstanding debts." On this day, Mayor Choi announced a joint operation with Gyeonggi Province, designating a day for a comprehensive crackdown on unpaid vehicle license plates. The mayor is launching a rigorous enforcement campaign targeting vehicles with unpaid car-related fines. This operation aims to actively collect overdue payments while ensuring fairness for diligent taxpayers and establishing a just tax system. In particular, Mayor Choi plans to focus on fair administration and citizen-centered field operations, balancing enforcement with consideration for citizens facing economic hardships. He revealed that the crackdown will utilize vehicles equipped with license plate confiscation systems and specialized equipment, concentrating efforts in areas with high vehicle concentrations, such as apartment complexes, large supermarkets, and public parking lots. Targeted vehicles include those with two or more unpaid car taxes or fines, those with overdue amounts exceeding 300,000 won, and vehicles under operation suspension. For other unpaid vehicles, the mayor stated that a notice will be affixed to encourage voluntary payment. Confiscated license plates will be returned after confirming the payment status and whether the vehicle is under an operation suspension order. For vehicles that do not retrieve their license plates within a specified period, the city will pursue active collection measures, including public auction. Citizens have expressed support for the need to ensure fairness between diligent taxpayers and those with unpaid debts, while also calling for careful administration considering the economic downturn and living conditions. In particular, drivers of cargo and delivery vehicles, which are essential for their livelihoods, argue that enforcement should take into account the reasons for unpaid taxes and their economic situations. In response, Mayor Choi plans to encourage payment agreements and installment plans for those in financial distress, balancing collection efforts with the protection of citizens' livelihoods. Citizens also hope that this crackdown will not only identify unpaid taxpayers but also ensure fairness for diligent taxpayers and provide opportunities for those facing economic difficulties to recover. Mayor Choi urged citizens to check their payment status in advance to avoid the disadvantages of license plate confiscation and to voluntarily settle their debts. Additionally, Mayor Choi Dae-ho stated, "We will continue to establish a fair tax system through ongoing crackdowns and collection measures." * This article has been translated by AI. 2026-08-21 15:00:00
  • Lotte Wellfood Apologizes for Ammonia Leak at Yeongdeungpo Plant, Promises Safety Measures
    Lotte Wellfood Apologizes for Ammonia Leak at Yeongdeungpo Plant, Promises Safety Measures Lotte Wellfood officially apologized on August 21 for an ammonia leak incident that occurred at its Yeongdeungpo plant in Seoul and announced plans to implement preventive measures. In a statement, Lotte Wellfood expressed, "We sincerely apologize for causing great concern to nearby residents and customers due to the gas leak incident at the Yeongdeungpo plant." The company added, "We will cooperate sincerely and transparently with the investigation by relevant authorities and will conduct thorough safety inspections of the facility along with preventive measures against recurrence." Earlier that day, at approximately 5:30 a.m., ammonia gas leaked from the Lotte Wellfood Yeongdeungpo plant near Seonyudo Station in Yangpyeong-dong 5-ga, prompting a response from the fire department. About 40 employees present at the plant evacuated safely, and no injuries were reported. The Yeongdeungpo plant, which was completed in 1969, is a major production facility for Lotte Wellfood, currently manufacturing gum, candy, chocolate, and ice cream. Lotte Wellfood stated, "We reported the incident to emergency services immediately, and by 5:52 a.m., the main gas valve was successfully shut off by the responding fire department." The company further noted, "Subsequent measurements of residual gas concentrations in the plant and surrounding areas by fire, district office, and environmental authorities confirmed 'non-detection,' safely concluding the emergency situation." This information was also communicated to local residents through safety alerts from the district office. Lotte Wellfood emphasized, "We prioritize safety as our top value and have been conducting regular safety inspections and emergency response training for our employees. We will thoroughly review our safety management system in light of this incident and promptly implement necessary corrective actions to prevent recurrence."* This article has been translated by AI. 2026-08-21 15:00:00
  • Private Mid-Rate Loans Excluded from Household Loan Limits Starting August
    Private Mid-Rate Loans Excluded from Household Loan Limits Starting August The financial authorities have decided to exclude the increase in private mid-rate loans from the household loan limits of savings banks, credit finance companies, and mutual finance companies starting this month. This measure aims to encourage funding for low- and mid-credit borrowers while alleviating the burden of total loan management for the second financial sector.According to the financial sector on the 21st, the Financial Supervisory Service convened household loan managers from the National Agricultural Cooperative Federation, the National Credit Union Federation, the National Federation of Fisheries Cooperatives, the National Forestry Cooperative Federation, the Korea Savings Bank Association, and the Korea Credit Finance Association to communicate this policy.The financial authorities will manage the household loan increase targets for each financial institution by dividing them into their own loan share, policy finance, and reserves for additional loan demand.Among mid-rate loans, the Saitdol loan falls under the category of policy mid-rate loans. Policy financial products like the Haet-sal Loan and Saitdol loans are managed separately as part of the total policy finance, and thus have already been excluded from the household loan limits for each financial institution.In contrast, privately supplied mid-rate loans were previously included in the household loan limits, with only a portion of the increase excluded from total loan management. Savings banks had 80% of the increase excluded, while credit finance companies had 40%. However, starting this month, the exclusion rate will be expanded to 100% for all second financial sector institutions, including mutual finance.A financial authority official stated, "There has been much concern as the existing incentives did not lead to the expected increase in mid-rate loans."As a result, any increase in private mid-rate loans by the second financial sector from this month onward will not be reflected in the household loan limits for each financial institution. Since the increase in mid-rate loans will be excluded from the total, financial institutions will have more capacity to offer other household loans, such as general credit loans, within their limits.However, even if the capacity for total loan management increases, the actual scale of loan supply is expected to vary based on each financial institution's deposits, funding costs, soundness, and capital conditions.This measure follows the government's comprehensive real estate finance plan announced on August 13, which raised the household loan growth management target for the entire financial sector from 1.5% to 3.0% for this year. It is estimated that an additional loan capacity of about 30 trillion won will be created across the financial sector, but authorities plan to guide this supply towards actual demand and low-income financing rather than distributing it uniformly among financial institutions.The existing management policy will remain in place for general mortgage and credit loans. Additional total loan limits for each financial institution will be allocated based on compliance with household loan targets in the first half of the year and the lending situation by sector. The specific allocation amounts have not yet been determined.Authorities will also apply total loan management incentives to group loans, which are characterized by strong actual demand. From this month onward, the increases in moving expenses, interim payments, and final payments for group loans will be fully excluded from the household loan limits for each financial institution.There will not be a separate limit set for group loans; instead, the increase will be deducted from the total loan management results for each financial institution, meaning the actual supply scale will depend on future demand and the individual conditions of each financial institution.Meanwhile, total loan management incentives for mid-rate loans in the banking sector will be discussed separately from those in the second financial sector. Since the existing methods for reflecting total loans differ between banks and the second financial sector, specific measures regarding the subjects and exclusion rates will be determined after consultations with the banking sector.* This article has been translated by AI. 2026-08-21 14:56:00
  • Renault Korea Reaches Tentative Agreement on Wage Negotiations
    Renault Korea Reaches Tentative Agreement on Wage Negotiations Renault Korea announced on August 21 that it reached a tentative agreement during the 15th round of negotiations for the 2026 wage and collective bargaining agreement with its representative union on August 20.After 16 hours of negotiations, both sides agreed to work together to overcome the company's challenging management situation.Negotiations began on April 27, and over the past four months, a total of 15 rounds of main and practical negotiations have taken place.The tentative labor agreement will be finalized at a general meeting of employees scheduled for August 26, following an explanatory session for union members.If approved at the general meeting, Renault Korea will become the third domestic automaker to finalize a labor agreement, following GM Korea and KGM.* This article has been translated by AI. 2026-08-21 14:56:00