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Upcoming National Assembly Audit Highlights Issues in Retail Sector As the National Assembly audit approaches next month, the retail and food industries are closely watching developments in the legislature. This year, significant issues have arisen in the retail sector, including a clash between Coupang and the Fair Trade Commission (FTC), the Homeplus situation, price collusion on food raw materials, and industrial accidents. Additionally, controversies surrounding Starbucks Korea's marketing and regulatory changes regarding early morning deliveries at large supermarkets are expected to lead to numerous summonses in various committees.According to industry sources on September 16, the National Assembly audit will take place from October 6 to 27. While the list of witnesses and reference persons for each committee has not yet been finalized, companies are monitoring the situation closely.Coupang is viewed as the focal point of this year's audit. The FTC conducted an on-site investigation last month over allegations of violations of the Large-Scale Retail Business Act, but Coupang refused to cooperate, claiming there was no proper prior notification. This has led to ongoing disputes over the FTC's investigation procedures and authority, with concerns about data breaches and safety incidents at logistics centers also likely to be raised.The Homeplus situation is another major issue. The Seoul Bankruptcy Court approved a rehabilitation plan on October 2, averting immediate liquidation, but challenges remain regarding debt repayment and business normalization. The management responsibility of major shareholder MBK Partners and the protection of stakeholders, including partner companies and store owners, which were heavily scrutinized during last year's audit, may also resurface as contentious points.In the food industry, the issue of price collusion on raw materials is drawing attention. The FTC imposed a total fine of 671 billion won on seven flour manufacturing and sales companies for colluding on prices and quantities over six years. Additionally, four companies, including Daesang, Samyang Foods, and CJ CheilJedang, were fined 747.6 billion won for colluding on starch and starch syrup prices. Including previous fines for sugar collusion, the total fines for food raw material collusion this year have exceeded 1.8 trillion won. Given that flour and starch are used in various processed foods such as bread, snacks, and beverages, the issues of food prices and fair trade are likely to be discussed during the audit amid rising inflation.At Shinsegae Group, the controversy surrounding Starbucks Korea's 'Tank Day' remains unresolved. Following a promotional wording controversy in May, management changes and internal process overhauls were implemented, but a police investigation is ongoing. The decision-making process leading to the creation and public release of the marketing wording and the internal verification system may be points of contention.Industrial accidents are also a pressing concern for the food industry. This year, companies such as Maeil Dairies, Our Home, and Samlip have experienced worker fatalities and safety incidents at manufacturing sites, raising questions about the causes of these accidents, the primary contractor's safety management responsibilities, and measures to prevent recurrence. In particular, for workplaces where similar accidents have repeatedly occurred, the effectiveness of the company's safety management system is expected to be scrutinized.Additionally, discussions are underway in the National Assembly regarding lifting restrictions on late-night operations for large supermarkets' online orders and deliveries to allow early morning deliveries. As the retail market rapidly shifts toward online platforms, there is a clash between the retail industry's call for regulatory adjustments and the opposing view advocating for the protection of local businesses and workers, suggesting that related discussions will continue during the audit.An anonymous source from the food industry stated, "The witness list has not yet been finalized, so we have not entered the stage of formal responses. However, given the numerous pressing issues this year, we are watching the National Assembly's movements with concern." 2026-09-16 18:32:00
Seo Beom-soo Withdraws Appeal and Files Court Injunction Against Party Disciplinary Action Seo Beom-soo, a member of the People Power Party, withdrew his appeal against a 10-month suspension of party membership imposed by the party's Central Ethics Committee on September 16 and shifted to legal action. He criticized the disciplinary action as a means of "purging political rivals." On the same day, Seo submitted an application for an injunction to suspend the disciplinary action at the Seoul Southern District Court in Yangcheon-gu, along with a lawsuit seeking to confirm the nullification of the disciplinary action itself.After submitting the documents related to the injunction and the lawsuit, he told reporters, "Compared to the conclusion reached just two days after the disciplinary hearing, the appeal process is taking too long," adding, "This is an attempt to undermine the legally prescribed remedial procedures."Seo also pointed out procedural flaws in the party's disciplinary process, stating, "The Ethics Committee did not disclose the list of committee members, depriving me of the right to avoid certain members," and noted that the committee only sent the list after he filed the appeal.He further claimed that the disciplinary action was a political attack, saying, "On the day the disciplinary committee met, the victim of the Busan incident personally appeared before the Ethics Committee to plead for leniency," and asserted, "Despite the victim's wishes, the disciplinary action is being pushed forward for political purposes." Seo expressed concern that this could be seen as a purge of political rivals within the party, stating, "It is hard not to think this is a way to eliminate political opponents. Similar incidents within the party received public criticism, yet some faced swift disciplinary procedures while others did not even have proceedings initiated."Seo's legal response follows that of fellow party member Jin Jong-o, who also faced a two-year suspension of party membership but did not file an appeal and instead applied for an injunction on September 6.Meanwhile, the Ethics Committee reviewed Seo's appeal against the 10-month suspension on September 14 but did not reach a conclusion. The committee plans to discuss the matter again on September 30. Seo was reported to the Ethics Committee for making inappropriate remarks at a discussion attended by Kim Jin-joo (pseudonym), the victim of the Busan incident, on August 20.* This article has been translated by AI. 2026-09-16 18:28:00
Broadcasting and Media Commission Requests Police Investigation into Illegal Tracking Services The Broadcasting and Media Commission (BMC) has requested a police investigation into companies suspected of illegally providing portable tracking devices that have been misused in serious crimes such as stalking. The BMC stated that it referred three companies to the police for allegedly offering services that collect and utilize location information without proper registration as a location information business or notification as a location-based service provider, in violation of the 'Act on the Protection and Use of Location Information.'Under the relevant law, operating a location information business without registration can result in up to five years in prison or fines of up to 50 million won, while operating a location-based service without notification can lead to up to three years in prison or fines of up to 30 million won.Previously, the BMC conducted a survey of 49 companies that sell tracking devices, which are popular on major online shopping platforms.The BMC plans to continue monitoring compliance with relevant laws regarding the registration of location information businesses, notification of location-based services, and the implementation of location information protection measures.Kim Jong-cheol, chairman of the BMC, stated, "We will strengthen oversight to ensure that location information is not leaked or misused by unregistered and unreported businesses, creating a safe usage environment. We will also respond strictly by referring any violations to investigative authorities for further action."* This article has been translated by AI. 2026-09-16 18:16:00
Cockpit seniority remains final stumbling block to Asiana-KAL merger SEOUL, September 16 (AJP) - The integration of Asiana Airlines under Korean Air's wing is on course for liftoff as a single national full-service carrier in December — except for one major piece of unfinished business in the cockpit. Asiana flight numbers are set to begin switching from the OZ code to Korean Air's KE code in November, while the long-delayed mileage integration plan has cleared its final regulatory hurdle. The two airlines, however, have yet to resolve one of the most sensitive personnel issues in the merger - combining pilot seniority lists built under markedly different recruitment and promotion systems. The dispute has already spilled into the streets, with Korean Air pilots holding rallies this week as their union presses the company to negotiate the rules for integrating seniority. Unlike promotions in many workplaces, pilot advancement depends heavily on position in a seniority queue. Each pilot is assigned a place on a seniority list that helps determine when he or she can enter training for a captain upgrade or move into a higher internal rank. Pilots higher on the list generally receive those opportunities earlier, while those further down must wait. Because advancement affects both career progression and pay, being pushed back even several months on a combined list can have consequences lasting years. New data provided to AJP by the Korean Air Pilots Union (KAPU) shows how differently the two airlines constructed those lists. The Korean Air data covers 1,371 pilots who have received or are awaiting regular employee numbers, including 702 with military flying backgrounds, 82 with previous low-cost carrier experience and 587 from other civilian flying backgrounds. Among them, 74 civilian-background pilots had yet to receive regular employee numbers, according to the data. A separate KAPU dataset covers 488 Asiana pilots, including 184 from military backgrounds and 304 from civilian backgrounds. One of the clearest differences lies in how the two carriers treated military and civilian experience. At Asiana, military-background pilots were historically placed roughly four years ahead of civilian-background pilots in the seniority structure, according to union data. The gap was far wider than at Korean Air, where the difference was about 10 months, making the treatment of military and civilian experience one of the most contentious issues in combining the lists. Under Asiana's system, a military-background pilot who received an employee number in 2016 could rank at roughly the same level as a civilian-background pilot from 2012. That four-year gap becomes sensitive in the merger because preserving Asiana's existing internal order could place some military-background Asiana pilots ahead of Korean Air pilots on the combined list, potentially delaying the latter's future captain upgrades. “The biggest problem is that the company won’t even discuss seniority integration as part of collective bargaining. We have our own proposals, but the company simply says it is a management issue and refuses to put it on the table,” said Park Sang-mo, KAPU’s vice chairman for external affairs. Park said pilot groups typically take the lead in negotiating how seniority lists should be combined rather than leaving management to determine the ranking unilaterally. The dispute is further complicated by how the seniority queue is determined. For Korean Air pilots, a regular employee number effectively sets their place in the seniority queue, but that number can differ from the employee number assigned when they first join the airline. Asiana pilots, meanwhile, are assigned their regular employee numbers upon joining. This creates another point of contention over whether seniority should be based on the initial joining date or the date the regular employee number was issued. “Normally, the pilot unions work out an integrated seniority list and bring it to the company,” Park said. “That is how the process is supposed to work, but in our case, the company came up with its own formula and simply presented it to us.” Park said the union has raised the issue in negotiations for about a year, but the company has continued to reject seniority integration itself as a bargaining item. KAPU also argues that the proposed approach could disadvantage some Korean Air pilots with previous civilian flying experience because their seniority would be calculated from the date they received a regular employee number rather than the date they first joined the airline. They say some Korean Air pilots could be placed about 10 months lower on the combined list than if their original entry dates were recognized. The issue is particularly sensitive because the two carriers historically recruited civilian pilots under different requirements. Korean Air required civilian applicants to have roughly 1,000 hours of flying experience, while Asiana's threshold was significantly lower, at around 300 hours. Korean Air says its merger formula would still leave its civilian-background pilots ahead in the promotion queue. The airline says the gap between military- and civilian-background pilots is about nine months at Korean Air, compared with roughly four years at Asiana. On that basis, Korean Air says its civilian pilots would remain about three years and three months ahead on average after the lists are combined. The effects are not uniform on the Asiana side either. An Asiana senior captain with four years in the rank, for example, could have expected to advance to the next captain grade in January 2028 under Asiana's existing timetable. Under the post-merger Korean Air schedule, that transition would instead come in September 2028, about nine months later. Until then, the pilot would see little immediate pay benefit from the merger. The example illustrates why individual pilots can view the same integration formula differently depending on their current rank and position in the promotion cycle. Some may benefit relatively quickly from Korean Air's pay structure, while others could wait longer for their next promotion. Choi Do-sung, chairman of the Asiana Pilots Union (APU), was reluctant to comment in detail on the dispute between Korean Air and its pilots, saying he did not want to add to tensions ahead of the merger. “Given that we are the airline being absorbed, we think the company’s plan is reasonable overall and does not create any major problems for pilots,” Choi said. APU does not plan separate collective action over the seniority integration. “The company explained it to both airlines and notified us without any negotiations or agreement over the seniority issue,” Park said. “That is the essence of the problem.” The two carriers are scheduled to formally merge on Dec. 17. “Pilots work as two people together in the cockpit,” Park said. “If they are carrying unresolved dissatisfaction with each other, how can there be genuine integration?” Korean Air says its proposal is designed to preserve each airline’s existing seniority structure while minimizing disruption for pilots on both sides. AJP Takeaways - Pilot seniority remains unresolved ahead of the Korean Air-Asiana merger. - Military-civilian ranking gaps differ sharply between the two airlines. - KAPU wants negotiations, while APU broadly accepts the company’s plan. 2026-09-16 18:15:47
Kazakh minister honors independence hero Hong Beom-do SEOUL, September 16 (AJP) - Kazakhstan's culture minister burned incense on Wednesday at the grave of Hong Beom-do, the Korean independence commander who died in exile in Kazakhstan. The visit came a day after he signed an agreement with South Korea to preserve sites linked to the Korean independence movement. Arman Kyrykbayev, Kazakhstan's Minister of Culture and Information, signed the memorandum of understanding on Sept. 15 with Kwon Oh-eul, South Korea's Minister of Patriots and Veterans Affairs. The signing took place at Cheong Wa Dae in Seoul, with President Lee Jae Myung and Kazakh President Kassym-Jomart Tokayev looking on. At their summit the same day, Lee told President Tokayev that the return of Hong's remains in 2021 had deepened trust between the two countries. Kyrykbayev is in South Korea as part of President Tokayev's state visit. On arriving at Daejeon National Cemetery, about 160 kilometers south of Seoul, he went first to the Memorial Tower and burned incense. He then moved to Hong's grave in the cemetery's third section for independence patriots and burned incense there as well. At the grave, Na Chi-man, Deputy Minister for Patriots and Veterans Culture Policy at the Ministry of Patriots and Veterans Affairs, thanked Kazakhstan for its role in bringing Hong home. He said the ministry would keep caring for the grave and would also look after the Hong Beom-do Memorial Park in Kyzylorda, the Kazakh city where Hong had been buried. Na called Hong "a symbol of friendship between Kazakhstan and the Republic of Korea." "May the spirits of the ancestors be pleased," Kyrykbayev replied. He said Hong's heroic deeds should serve as an example of patriotism for "all the youth of the Korean people, and not only Koreans, but youth of other nations as well." He described the visit as part of President Tokayev's official program. "Within this framework, of course, we pay homage to such sacred figures," he said, and wished on behalf of President Tokayev and the Kazakh people that "the friendship and brotherhood between our two countries continue to flourish." Kyrykbayev spoke to AJP in Kazakh that Hong had fought for his homeland's freedom and later came to Kyzylorda along with many other Koreans, living and working there until his death. "On one hand, it is paying tribute to the past," he said of the return of Hong's remains. "On the other hand, it signifies how both Koreans and we Kazakhs love our history, our people, and our homeland." He then cited a Kazakh saying that calls for honoring the past. "Great historical figures like him will continue to further strengthen the friendship between our two countries," he said. Hong is one of the most revered figures in South Korea's struggle against Japanese colonial rule, which lasted from 1910 to 1945. In Kazakhstan, he became a symbol of identity for a Korean community that Soviet authorities had uprooted and sent to Central Asia. He was born into a poor family in 1868, in Pyongyang, by his own account, and lost both parents as a child. He joined the army in Pyongyang as a young man and later made his living as a hunter in the mountains of northern Korea. In September 1907, Japan issued a law to confiscate guns held by civilians, including hunting rifles. That November, Hong gathered fellow hunters into a militia and began attacking Japanese troops in guerrilla raids across the northern provinces. The fight cost him his family. Japanese authorities seized his wife to pressure him into surrendering, and she died in prison after torture. His eldest son was later killed in battle. After Japan annexed Korea in 1910, Hong moved his base to Manchuria and the Russian Far East. In June 1920, as commander of the Korean Independence Army, he led an ambush against a Japanese battalion at Fengwudong, known in Korean as Bongo-dong, in northeastern China. It was the first large-scale victory by Korean independence forces. That October, his troops fought alongside Kim Jwa-jin's units in the Battle of Qingshanli, another defeat for the Japanese army. Hong later settled in the Soviet Far East, where he led Korean farming communities, and joined the Soviet Communist Party in 1927. In 1937, Soviet leader Joseph Stalin ordered the forced relocation of 171,781 ethnic Koreans from the Far East to Central Asia. Hong, then 69, was among them and was sent to Kazakhstan. In Kyzylorda, he worked as a guard at the Korean Theater and later at a rice mill. He died there on Oct. 25, 1943, at age 75, two years before Korea won its independence. The deported Koreans and their descendants in the former Soviet Union call themselves Koryo-saram. For about 40 years, the Korean community in Kyzylorda tended Hong's grave and kept it as a place to honor him. After Kazakhstan gained independence in 1991, both South Korea and North Korea sought his remains. Pyongyang argued that he belonged in his birthplace. Seoul pressed the case at the presidential level, and Kazakhstan agreed. The remains arrived at Seoul Air Base on Aug. 15, 2021, South Korea's Liberation Day, escorted by six fighter jets. Two days later, Hong was posthumously awarded the Republic of Korea Medal, the highest grade of the Order of Merit for National Foundation, at a ceremony President Tokayev attended. President Tokayev also handed over Hong's death certificate and his letter of resignation from the Korean Theater. In November 2023, South Korea's veterans ministry opened a memorial park on the site of Hong's former grave in Kyzylorda. Hong was buried in Daejeon on Aug. 18, 2021, 78 years after his death. The funeral wreath combined carnations, Kazakhstan's flower of mourning, with chrysanthemums, South Korea's. Soil from his grave in Kyzylorda, which President Tokayev had brought to Seoul, was mixed with Korean soil and scattered over his coffin. AJP Takeaways - Kazakhstan's Minister of Culture and Information Arman Kyrykbayev burned incense at the Memorial Tower and at the grave of Korean independence hero Hong Beom-do at Daejeon National Cemetery on Sept. 16, a day after signing an agreement with South Korea to preserve independence movement sites. - Kwon Oh-eul, South Korea's Minister of Patriots and Veterans Affairs, signed that memorandum of understanding with Kyrykbayev at Cheong Wa Dae on Sept. 15, with President Lee Jae Myung and Kazakh President Kassym-Jomart Tokayev looking on. - Kyrykbayev said the return of Hong's remains in 2021 was both a tribute to the past and a sign that Koreans and Kazakhs love their history, their people and their homeland. He made the remarks in Kazakh at the grave in response to a question from AJP. 2026-09-16 18:15:16
Korea and Central Asia Strengthen Cooperation on Climate, Energy, and Environment Korea and five Central Asian countries are intensifying their cooperation to address the climate crisis, transition to renewable energy, and improve environmental conditions. The initiative aims to expand collaboration in areas such as renewable energy, greenhouse gas reduction, air quality, water supply, and waste management, while also facilitating the entry of domestic companies into the Central Asian market and increasing opportunities for overseas contracts.The Ministry of Climate, Energy, and Environment announced on September 16 that, during a summit held at the Blue House, it launched the 'Korea-Central Asia Climate, Energy, and Environment Policy Initiative' with Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan, and Kyrgyzstan.This summit marks the first multilateral meeting between Korea and Central Asian nations. The government expects it to strengthen mutually beneficial cooperation by linking the economic growth and infrastructure expansion needs of Central Asia with Korea's strategies for diversifying supply chains and expanding markets.The core of the policy initiative is to connect the policy needs of Central Asian countries with Korea's policy, technology, and industrial capabilities.Key areas of cooperation include decarbonization and green transition through the expansion of renewable energy, as well as environmental improvement projects focused on air quality, stable water supply, and waste management. Multilateral cooperation to respond to the climate crisis will also be pursued.The cooperation methods will extend beyond policy and personnel exchanges to include joint research, technology collaboration, and infrastructure development. This approach aims to identify follow-up projects such as international greenhouse gas reduction and joint pilot projects, while also linking them to overseas contracts for domestic companies.Notably, this policy initiative is explicitly included in the 'Seoul Declaration,' which outlines a long-term cooperation vision between Korea and the five Central Asian countries. The government explains that this provides a foundation for ongoing cooperation at the leadership level in the fields of climate, energy, and environment.The Ministry of Climate will continue to identify cooperation tasks that reflect the conditions and needs of each country and will engage in follow-up discussions to concretize these into actual projects.The government emphasizes that this policy initiative represents a significant framework for promoting regional cooperation in Central Asia centered on the common challenges of climate, energy, and environment, moving beyond existing bilateral cooperation.In particular, it aims to broaden opportunities for domestic companies to participate in the expanding renewable energy market in Central Asia and to achieve tangible results in international greenhouse gas reduction.Kim Ji-young, the International Cooperation Officer at the Ministry of Climate, stated, 'Through this Korea-Central Asia cooperation policy initiative, we will actively promote collaboration so that our country's excellent policies and technologies can contribute to tangible environmental improvements in Central Asia and lead to expanded overseas opportunities for our companies.'* This article has been translated by AI. 2026-09-16 18:12:10
Trinity Air to Launch Incheon-Kobe Route in December with Daily Flights Trinity Air announced on September 16 that it will begin operating a new route between Incheon and Kobe starting December 18, with one round trip daily.The outbound flight will depart from Incheon International Airport at 2:10 PM and arrive at Kobe Airport at 3:55 PM. The return flight will leave Kobe Airport at 4:55 PM and arrive back at Incheon International Airport at 6:55 PM.Kobe is a representative port city in Japan's Kansai region, known for its beautiful streets, night views, and diverse culinary offerings.Notable tourist attractions include Kobe Harborland, famous for its stunning night scenery; Kitano Ijinkan Street, which features modern Western-style architecture; and Nunobiki Herb Garden, which offers panoramic views of the city and nature. Visitors can also enjoy unique local experiences such as Arima Onsen and Kobe beef.A representative from Trinity Air stated, "With the launch of the Kobe route, we can provide customers traveling to the Kansai region with a wider range of travel options. We will continue to expand our network of routes to Japan and ensure a safe and convenient travel experience."* This article has been translated by AI. 2026-09-16 18:12:00
Concerns Rise Over '10 Trillion Yen Carry' Liquidation Ahead of U.S.-Japan Rate Hikes The global financial market is on edge as it awaits decisions on interest rate hikes from the U.S. Federal Reserve and the Bank of Japan (BOJ) scheduled for September 16 and 18, respectively. With expectations high that both central banks will raise rates, attention is turning to the potential impact on domestic capital markets. Over the past year, approximately 10 trillion won has flowed into the Korean market from yen carry trade funds. Concerns are growing that a rate increase by the BOJ, coupled with yen appreciation, could trigger a significant money move of Japanese investment assets.According to the financial investment industry, the Federal Reserve is expected to announce its decision on interest rates on September 16, while the BOJ will follow on September 18. Market speculation suggests that both central banks are likely to raise rates by 25 basis points (1 basis point = 0.01 percentage points). Notably, there are projections that the BOJ may sharply increase its benchmark rate to 1.75% by the second quarter of next year.As the possibility of simultaneous rate hikes in the U.S. and Japan looms, market participants are closely monitoring the direction of the yen's value. The outcome of these rate hikes could significantly influence global capital markets, particularly whether the yen will continue to strengthen or reverse course. Since July, the yen has shown a strengthening trend, and if this continues, the liquidation of the 'yen carry trade,' which amounts to nearly $1 trillion, could become a reality.Leading indicators signaling a potential liquidation of the yen carry trade are emerging in the global capital markets. According to the Commodity Futures Trading Commission (CFTC) report on investor positions as of September 8, speculative net positions in yen futures were recorded at plus 10,796 contracts. This marks a shift of 103,023 contracts toward net buying from a negative position of minus 92,227 contracts just a week earlier. Analysts suggest that speculators who had previously bet on a weaker yen are now adjusting their positions in anticipation of a stronger yen.In the domestic capital market, there is a growing sense of tension. Concerns are rising that a surprise rate hike by the BOJ, similar to the one in August 2024, could trigger a liquidation of the yen carry trade. According to YuJin Investment & Securities, as of July, the foreign currency-denominated assets of Japanese investment trusts amounted to 133.3091 trillion yen (approximately 1,167.18 trillion won), a 75% increase from 76.7558 trillion yen in August 2024. During the same period, the scale of Japanese investment assets flowing into Korea surged from 287.2 billion yen (approximately 250 billion won) to 1.1106 trillion yen (approximately 967 billion won), marking a 287% increase.A securities industry official noted, 'While the risk of yen carry trade liquidation is largely seen as already priced into the market, we cannot rule out the possibility of a rapid withdrawal of Japanese liquidity that had flowed into Korea, especially during the recent KOSPI boom.'* This article has been translated by AI. 2026-09-16 18:08:20
Impact of Interest Rate Hikes on Stock Markets: A Historical Perspective As the United States and Japan prepare for simultaneous interest rate hikes, market attention is focused on the potential impact on global capital markets. These rate increases are expected to influence the domestic capital market through various channels. While interest rate hikes are typically viewed as negative for stock markets, historical data suggests that the correlation of 'interest rate hike = stock market decline' does not always hold true. According to the financial investment industry on September 16, the Federal Reserve and the Bank of Japan are set to announce interest rate increases on September 17 and 18. Both countries are likely to raise rates by 25 basis points (1 basis point = 0.01 percentage points). Notably, many analysts predict that the Bank of Japan will continue to raise rates through the second quarter of next year. These rate hikes are expected to have a significant impact on the South Korean capital market. What has been the effect of past U.S. and Japanese interest rate hikes on stock markets? The impact has varied significantly depending on the context of the U.S. rate hikes. An analysis by Shin Young Securities of 26 instances of U.S. policy rate increases since 1971 found that the S&P 500 index rose in 17 of those cases. In the 13 instances categorized as 'growth-driven' rate hikes, the S&P 500 increased 12 times, with an average gain of 10.7%. Conversely, in the 13 'inflation-fighting' instances, the index fell eight times, averaging a decline of 1.1%. The South Korean stock market has shown similar trends. During the Federal Reserve's 11 rate hikes totaling 525 basis points from 2022 to 2023, the KOSPI index experienced significant adjustments, dropping by about 25% in 2022. In contrast, from 2004 to 2006, when the Fed raised rates 17 times for a total of 425 basis points, the KOSPI actually rose by 60.7%, supported by increased exports due to China's growth, domestic recovery, and inflows into equity funds. The impact of Japan's rate hikes has been somewhat limited compared to the U.S. The Bank of Japan (BOJ) ended its negative interest rate policy in March 2024 and raised rates five times by June of this year. The only significant simultaneous drop in the South Korean and Japanese stock markets occurred after the BOJ's rate hike in July 2024. On the day the BOJ raised its policy rate to 0.25%, the Nikkei 225 and KOSPI rose by 1.49% and 1.19%, respectively. However, in the following trading days, the Nikkei 225 plummeted by 2.49%, 5.81%, and 12.40%, while the KOSPI initially rose by 0.25% before falling by 3.65% and 8.77%. The shock was exacerbated by a stronger yen and concerns over unwinding yen carry trades. In contrast, the other four instances of rate normalization and increases did not see such drastic declines. Market analysts believe that the potential for further tightening is more critical than the rate hikes themselves. Kim Min-kyu, a researcher at KB Securities, stated, "The stock market has already factored in much of the uncertainty surrounding interest rates since the outbreak of the U.S.-Iran conflict. Even if rate hikes occur, we expect the short-term impact to be minimal." He added, "If the rate hikes lead to a temporary stabilization of long-term rates, it could be beneficial for the stock market. However, it is essential to determine whether the rate hikes represent a long-term trend." * This article has been translated by AI. 2026-09-16 18:08:10
Hanwha's Mohave Drone Successfully Demonstrates Combat Flight Hanwha Aerospace's short takeoff drone, 'Mohave,' developed in collaboration with the U.S. company General Atomics Aeronautical Systems, successfully completed a simulated combat flight demonstration.On September 16, Hanwha Aerospace announced that the Mohave successfully finished its simulated combat flight demonstration at the '2026 Defense Drone Technology Exhibition' held in Pocheon, South Korea.The Mohave is a short takeoff drone jointly developed by Hanwha Aerospace and GA-ASI since last year. It is equipped with a high-power device and a 450-horsepower turboprop engine, allowing it to take off and land on runways as short as 100 to 300 meters.During the demonstration, the Mohave took off from the Army's 513th Aviation Battalion airfield and landed on a narrow tank maneuvering path instead of a standard runway. It then took off again from the same spot and returned to the airfield along the planned route. The takeoff distance recorded was less than 200 meters, while the landing distance was in the 100-meter range. In a combat test conducted on the flight deck of the Dokdo-class amphibious assault ship in November 2024, it had previously taken off from a distance of less than 100 meters.The Mohave can carry up to 1 ton of equipment necessary for mission execution, excluding the airframe and fuel. Depending on the equipment configuration, it can perform various missions, including ground attack, surveillance and reconnaissance, cargo transport, and communication relay.Hanwha Aerospace plans to establish domestic research and production infrastructure for the development and production of the Mohave. The goal is to increase the domestic production ratio to over 70% during the mass production phase.On September 21, a 'Mutual Cooperation Agreement Ceremony' will be held at the Changwon Plant 1 in Gyeongnam, where domestic drone industry stakeholders will gather to explore and expand cooperation with domestic suppliers in the parts and materials sector.A Hanwha Aerospace official stated, 'By achieving the development and production of the Mohave based on mutual cooperation with the U.S. drone specialist General Atomics Aeronautical Systems and domestic companies, we aim to lead the global drone market.'* This article has been translated by AI. 2026-09-16 18:08:00