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  • Koo Yoon-cheol: Rising Long-Term Interest Rates Prompt Urgent Support for Small Businesses
    Koo Yoon-cheol: Rising Long-Term Interest Rates Prompt Urgent Support for Small Businesses Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, has announced plans to address the funding burdens faced by businesses and households due to rising long-term interest rates. He emphasized the need for urgent support measures for small businesses and vulnerable borrowers. On August 21, Koo convened a market situation review meeting at the Bank Hall in Seoul, where he discussed trends in the financial and foreign exchange markets. The meeting included Lee Ok-won, Chairman of the Financial Services Commission, Lee Chan-jin, Chairman of the Financial Supervisory Service, and Park Jong-woo, Deputy Governor of the Bank of Korea. Participants noted that uncertainty in the Middle East, coupled with increased government bond issuance and expanded corporate bond issuance by global AI companies, has led to rising interest rates, particularly for long-term bonds. The yield on U.S. 30-year Treasury bonds rose from 4.61% at the end of February to 5.19% on August 19. During the same period, Japan's yield increased from 3.34% to 4.09%, while the UK's rose from 5.03% to 5.79%. Koo stated, "The government will continuously monitor the issuance and trading conditions in the government bond market to minimize the impact on the real economy, including corporate funding costs and household interest burdens." He added, "We will quickly announce a 'support plan for vulnerable borrowers' to alleviate the debt burden on small businesses and financially vulnerable individuals. We will also enhance debt restructuring to support struggling small businesses and individuals and expand financial assistance for small and medium-sized enterprises and vulnerable borrowers." The won-dollar exchange rate fell from the 1550 won range at the beginning of last month to 1390 won on August 19, marking a return to the 1300 won range for the first time in 11 months. Analysts attribute this decline to record-high current account surpluses and easing foreign stock rebalancing. However, given the geopolitical conflicts in the Middle East and the monetary policies of major countries, Koo noted that both upward and downward factors affecting the exchange rate remain, and the government will maintain a readiness to respond to market volatility. The decrease in net external financial assets in the second quarter is believed to be due to improved corporate performance and rising stock prices, which increased the value of domestic stocks held by foreigners. Net external bonds rose by $23 billion to $367.8 billion, and the current account recorded a historic surplus of $191 billion in the first half of the year, indicating good external soundness. Household credit has surpassed 2000 trillion won, but the ratio of household debt to GDP has decreased from 89.1% in the first quarter of last year to 85.3% in the first quarter of this year. Authorities plan to manage the growth of household debt, which remains high compared to major countries, while reducing funding difficulties for genuine borrowers. The trading volume of single-stock leveraged products dropped from 12.4 trillion won on the day before the implementation of supplementary measures on July 30 to 1.1 trillion won on August 20. Authorities will activate an integrated management system covering the financial, foreign exchange, government bond, and real estate markets to assess sector-specific risk factors and take market stabilization measures if necessary.* This article has been translated by AI. 2026-08-21 09:52:10
  • Seongho Electronics Accelerates Debt Reduction Amid M&A
    Seongho Electronics Accelerates Debt Reduction Amid M&A Seongho Electronics is actively restructuring its increased debt following a merger and acquisition (M&A). The company is accelerating its "debt diet" by reducing stock collateral loans and corporate borrowings, thereby lowering interest costs.According to investment banking sources on August 21, Seoryong Electronics, the largest shareholder of Seongho Electronics, has repaid 135 billion won of a 300 billion won loan secured against its shares, reducing the outstanding balance to 165 billion won. As the principal of the stock collateral loan decreases, the risk of additional collateral and forced sales due to stock price declines also diminishes.Additionally, Seongho Electronics has issued the 20th convertible bond (CB) worth 89.5 billion won. The entire amount raised will be allocated to repaying existing borrowings, specifically targeting 69.5 billion won owed to Seoryong Electronics and 20 billion won owed to Woongjin Free Life.Notably, the interest rates on the existing borrowings are 4.6% and 6.0%, while the new CB has a zero percent interest rate for both the nominal and maturity rates. The company explained that this will effectively reduce cash interest burdens by approximately 4.4 billion won on an annualized basis.* This article has been translated by AI. 2026-08-21 09:52:10
  • SK Securities Shares Rise for Second Day Amid SK Hynixs $40 Billion Buyback
    SK Securities Shares Rise for Second Day Amid SK Hynix's $40 Billion Buyback SK Securities has seen its shares rise for the second consecutive trading day as it facilitates a large-scale stock buyback for SK Hynix.As of 9:24 a.m. on the Korea Exchange, SK Securities shares were trading at 3,270 won, up 460 won (16.37%) from the previous day. The stock had surged 29.79% the day before, hitting the upper limit.The increase in SK Securities' stock price is attributed to expectations of expanded brokerage fee revenue from SK Hynix's approximately 40 trillion won stock buyback.On August 19, SK Hynix's board of directors decided to buy back 24.07 million common shares on the market to enhance shareholder value, with plans to retire all purchased shares. The total acquisition amount is expected to be 40.43 trillion won, representing about 3.3% of the total issued shares.The buyback period runs from August 20 to November 19. The actual number of shares acquired and the total amount will vary based on stock prices during the buyback period. SK Hynix plans to retire all shares purchased after the buyback period ends.SK Securities has been selected as the brokerage for this stock buyback. SK Hynix's daily purchase limit is set at 2.407 million shares. Given the substantial buyback amount and the three-month duration, there are expectations that SK Securities will generate significant brokerage fee revenue.On the first day of the buyback, August 20, SK Hynix purchased 650,000 shares for a total of 1.09 trillion won on the market.* This article has been translated by AI. 2026-08-21 09:52:00
  • Kim Min-seok Thanks Party Members for Calling for Disciplinary Action Against Lee Jin-sook
    Kim Min-seok Thanks Party Members for Calling for Disciplinary Action Against Lee Jin-sook Kim Min-seok, the leader of the Democratic Party, expressed gratitude on August 21 to members of the People Power Party who called for disciplinary action against Lee Jin-sook amid controversy over the distortion of the 5.18 Gwangju Democratization Movement.On the social media platform X, Kim stated, "I respect and thank the responsible members of the People Power Party." He added, "Since the late former President Kim Young-sam, I am well aware that our country’s conservative parties have also developed a democratic orientation." He emphasized that it is desirable for conservative parties to embrace democracy and for progressive parties to support growth for the sake of politics and the nation.Kim pledged, "The Democratic Party will ensure that Lee is expelled or at least suspended from activities," and expressed hope that the People Power Party would begin addressing Lee's situation and move toward including the 5.18 in the constitutional preamble, thereby genuinely approaching the public.Previously, Kim had formally requested disciplinary action against Lee during a meeting with National Assembly Speaker Cho Jeong-sik.Lee hosted a public forum on August 13 in the National Assembly titled 'Revisiting the 5.18 Democratization Movement,' which sparked controversy over allegations of undermining the movement. Additionally, a heated exchange occurred between Democratic Party lawmakers and Lee during a session of the National Assembly's Science, Technology, Information, Broadcasting and Communications Committee.* This article has been translated by AI. 2026-08-21 09:48:10
  • Sejong Law Firm Signs MOU with Busan-Jinhae Free Economic Zone Authority to Establish BJ-INVESTIA
    Sejong Law Firm Signs MOU with Busan-Jinhae Free Economic Zone Authority to Establish 'BJ-INVESTIA' Sejong Law Firm, led by Managing Partner Oh Jong-han, announced on August 21 that it signed a public-private partnership memorandum of understanding (MOU) with the Busan-Jinhae Free Economic Zone Authority, headed by Park Seong-ho, on August 20 to establish the investment attraction ecosystem 'BJ-INVESTIA.'BJ-INVESTIA is a comprehensive investment ecosystem that connects six key areas necessary for foreign companies investing in the Busan-Jinhae Free Economic Zone: location and design, investment and establishment, finance and incentives, customs and logistics, workforce and settlement, and innovative growth.Under this agreement, Sejong and the Free Economic Zone Authority will collaborate to provide legal advice and specialized consulting to domestic and foreign companies considering investment or entering the Busan-Jinhae Free Economic Zone.The Free Economic Zone Authority will identify and manage the advisory and consultation needs of investment companies, while Sejong will offer legal advice and consulting covering the entire investment cycle, including investment structure design, foreign investment reporting, corporate establishment, location and permits, and business operations.Starting in mid-September, the two organizations plan to begin providing comprehensive advisory and consultation support to companies, including seminars and workshops, and will continue to collaborate in various areas to support investment and stable settlement.Sejong is recognized as one of the leading law firms in South Korea, particularly strong in M&A, corporate mergers, ICT regulations and permits, and fair trade, while also addressing a wide range of legal issues arising during the investment process, including real estate, construction, taxation, labor, and economic security.Notably, Sejong has been actively engaged in cash incentive programs specialized in attracting foreign investment through its Trade and Industry Policy Center, enabling a cohesive advisory system where experts from various fields collaborate to provide consistent support from initial risk assessment to regulatory responses after business establishment.Oh Jong-han, Managing Partner of Sejong, stated, "The Busan-Jinhae Free Economic Zone is a key investment hub in South Korea, equipped with ports, airports, and industrial complexes, and its strategic value is increasing amid the global supply chain restructuring. Based on Sejong's accumulated experience in foreign investment and regulatory response consulting, we aim to significantly reduce the uncertainties companies face during their investment decision-making process and help our economic zone become a preferred investment destination for global companies."Park Seong-ho, head of the Free Economic Zone Authority, remarked, "Sejong's extensive industry expertise and legal advisory capabilities will greatly assist companies investing in the Busan-Jinhae Free Economic Zone in their investment decisions and stable business operations. Through this agreement, we will strengthen cooperation with specialized institutions to quickly resolve legal and regulatory challenges faced by companies during the investment process and translate them into tangible investment outcomes."The Busan-Jinhae Free Economic Zone Authority was established as a joint local government organization between Busan Metropolitan City and Gyeongsangnam-do to oversee foreign investment attraction and the development of logistics and advanced industry centers in the area surrounding Busan New Port and Jinhae Port, with its office located in Gangseo-gu, Busan.* This article has been translated by AI. 2026-08-21 09:48:00
  • Coway Wins IDEA Design Award, Completes Grand Slam of Major Design Honors
    Coway Wins IDEA Design Award, Completes Grand Slam of Major Design Honors Coway has achieved a remarkable feat this year by winning all three of the world's major design awards. The company has been recognized for its commitment to not only the aesthetics of home appliances but also for enhancing space efficiency and ease of maintenance in product design.On August 21, Coway announced that it received the main award in the product category at the 2026 IDEA Design Awards. The Square Fit air purifier and the 23L inverter dehumidifier were among the award-winning products. This marks Coway's 17th consecutive year of receiving accolades at the IDEA Design Awards.Notably, both products also won main awards at the iF Design Awards in March and the Red Dot Design Awards in April. This year, Coway had eight products recognized at the iF Design Awards and another eight at the Red Dot Design Awards, completing a clean sweep of the three major design awards.The Square Fit air purifier has been designed to reduce its size compared to similar products while increasing its purification area. Its intake section is concealed from view, and the top features anti-static materials. The product also incorporates a structure that allows for easy disassembly and cleaning, enhancing maintenance convenience.The 23L inverter dehumidifier boasts a maximum dehumidification capacity of 23 liters per day. It is designed for easy one-handed removal of the water tank and features 360-degree rotating wheels and hidden handles for improved mobility. Coway focuses on integrating product performance with user convenience in the design process.* This article has been translated by AI. 2026-08-21 09:48:00
  • Retirement age fight halts every Hyundai Motor plant in S. Korea
    Retirement age fight halts every Hyundai Motor plant in S. Korea SEOUL, August 21 (AJP) - Every production line at South Korea's largest automaker went down Friday morning as workers began their first full-day strike in a decade, a walkout that turns on how long they get to keep their jobs rather than on how much they are paid. Morning-shift members of the Hyundai Motor union, who normally clock in at 6:45 a.m., did not come to work. The afternoon shift that starts at 3:30 p.m. will not report either, leaving plants in Ulsan, Jeonju and Asan without production for 16 hours across the day. The union counted about 39,000 members taking part, office staff included. The full day will bring the union's strike total for the year to 60 hours, and double that in stopped line time. Industry estimates put cumulative losses through Friday at 55,200 vehicles and more than 2.3 trillion won ($1.65 billion) in revenue. Hyundai does not publish its own figures. Pay was not the obstacle. The company put an offer on the table at the 15th bargaining session on July 8 that included a monthly base wage increase of 89,000 won ($64), performance pay worth 350 percent of monthly base pay, a lump sum of 10 million won ($7,174) and 15 shares of company stock. The union turned it down and has since built its campaign around three demands that sit outside the wage package entirely. The largest of the three is the retirement age. South Korean law requires employers to set retirement at 60 or later, and the union wants Hyundai to extend that toward 65, timed so that a departing worker can draw the national pension without a gap. Hyundai already rehires retirees for up to two years, which the union considers a substitute rather than a solution. At Tuesday's session, the company proposed settling the timing of any extension through a supplementary agreement once the National Assembly changes the law, and taking up the reinstatement question at the end of the year. The union rejected both. Hyundai's position is that all three items fall outside this year's wage talks, that there are no grounds to reinstate members who were lawfully dismissed for illegal acts during past union activity, and that politicians have to settle the retirement age before a single company can. The second demand concerns the bonus. Hyundai pays an annual bonus set as a multiple of monthly base pay, currently 750 percent, and the union wants it raised to 800. The union argues that fixed pay, including base wage, makes up only 54.8 percent of what a member takes home, which forces workers into overtime and weekend shifts to hold a living income. It pointed to the company's retained earnings, which are accumulated profits rather than cash on hand, and which grew from 11.4 trillion won ($8.2 billion) in 2007 to 101.3 trillion won ($72.7 billion) as of last year. Talks have gone nowhere since. The two sides met 16 times starting May 6, and Tuesday's session at the Ulsan plant broke up after less than three hours with no date set for the next one. Money Today quoted Lee Jong-chul, the union's branch chairman, as saying the next session would wait until working-level talks produced something better. The last time the union struck this hard was 2016, when it logged 106 hours of strikes and 212 hours of stopped lines. Friday's walkout is not Hyundai's alone. The Korean Metal Workers' Union announced at a press conference Wednesday that roughly 90,000 workers across the auto sector would stop work over two days, with parts makers, subcontractors and Hyundai Motor Group affiliates halting Thursday and assembly plants following Friday. Union officers were due at the group's Yangjae-dong headquarters in Seoul for a rally at 2 p.m. Underneath that action sits a second dispute. An amended trade union law now recognizes that a prime contractor carries employer responsibility toward workers it does not directly employ, but the Korean Metal Workers' Union (KMWU) says Hyundai and affiliates, including Hyundai Mobis, Hyundai Wia and Hyundai Glovis, have refused to post notice of bargaining demands or to attend. About 80 percent of the 20,000 KMWU members seeking such talks work for Hyundai Motor Group companies, according to Ulsan Journal. The retirement age fight reaches well past the auto industry. South Korea crossed into super-aged status in December 2024, when people 65 and older passed 20 percent of the population, and the country now has one of the world's longest life expectancies alongside one of its lowest birth rates. A worker who leaves at 60 cannot claim the national pension until 63 today, and that threshold rises to 65 by 2033. The National Assembly has been circling the problem for a year. The governing Democratic Party set up a special committee on extending the retirement age in November 2025, the government accepted phased extension in principle in March, and the discussion was then pushed past the June 3 local elections. The committee has been working toward a bill for the regular session that opens next month, built around a staged increase toward 65 starting near the end of the decade. Business groups have argued for rehiring schemes instead, which is the same argument Hyundai made at the bargaining table this week. The union plans to strike for four hours on each of the next two working days, Monday and Tuesday, and will convene its central strike committee on Tuesday to decide whether to go further. Kang Sung-ho, who leads the metal union's Kia branch, made the demographic case at Wednesday's press conference. "About 2,000 workers reach retirement age and leave the floor every year," he said, adding that once the income gap between retirement and the first pension payment is taken into account, extending the retirement age is a task that can no longer be put off. 2026-08-21 09:44:28
  • KOSPI Falls 1% Amid Rising U.S. Interest Rates and Oil Prices; KOSDAQ Drops Over 3%
    KOSPI Falls 1% Amid Rising U.S. Interest Rates and Oil Prices; KOSDAQ Drops Over 3% The KOSPI opened lower due to rising U.S. long-term interest rates, increasing international oil prices, and a weak performance in the New York stock market. Profit-taking from the previous day's surge of over 5% is also contributing to the decline, with foreign and institutional investors engaging in net selling. However, some large-cap stocks, such as SK Hynix and KB Financial, are showing gains, indicating sector differentiation.As of 9:27 a.m. on the 21st, the KOSPI is trading at 6,784.73, down 67.85 points (0.99%) from the previous trading day. The index started at 6,759.95, down 92.63 points (1.35%), but has slightly reduced its losses.Overnight, the New York stock market fell across the board due to a resurgence in U.S. long-term interest rates, a spike in international oil prices, and concerns over consumer slowdown following disappointing earnings from Walmart. On the New York Stock Exchange on the 20th (local time), the Dow Jones Industrial Average dropped 1.32%, while the S&P 500 and Nasdaq fell by 0.87% and 1.00%, respectively.The yield on U.S. 10-year Treasury bonds rose to 4.70%, while the 30-year yield reached 5.24%. Long-term rates, which had stabilized following news of an expanded buyback of long-term Treasury bonds by the U.S. Treasury, are now rising again, raising concerns about structural upward pressure on rates due to fiscal deficits and increased Treasury supply.International oil prices also increased amid heightened concerns over potential U.S. economic sanctions against Iran. Brent crude and West Texas Intermediate (WTI) rose by 2.36% and 2.33%, respectively. The rise in oil prices is raising inflationary pressures, which could impact the monetary policy of the U.S. Federal Reserve.Concerns over a slowdown in U.S. consumer spending are also weighing on the market. Walmart's stock plummeted 9.15% after reporting a slowdown in same-store sales growth for the second quarter, amplifying fears of a consumer slowdown.However, semiconductor stocks have fared relatively well. Micron announced a large-scale investment plan in artificial intelligence, leading to a 4% increase in its stock, and the Philadelphia Semiconductor Index is showing strength. In South Korea, SK Hynix is up 1.06%.In the securities market, individual investors are net buying 365.6 billion won, while foreign and institutional investors are net selling 304.5 billion won and 149.5 billion won, respectively.Among the top market capitalization stocks, Samsung Electronics (-0.09%), SK Square (-1.87%), Samsung Electro-Mechanics (-4.87%), Hyundai Motor (-1.20%), LG Energy Solution (-2.23%), Samsung Biologics (-1.33%), Samsung C&T (-0.80%), and Samsung Life Insurance (-1.01%) are all declining. Conversely, SK Hynix (1.06%) and KB Financial (0.56%) are on the rise.At the same time, the KOSDAQ index is trading at 809.09, down 31.80 points (3.78%) from the previous trading day. The index started at 824.05, down 16.84 points (2.00%), and has since widened its losses.In the KOSDAQ market, individual investors are net buying 239.8 billion won, while foreign and institutional investors are net selling 160.3 billion won and 75.8 billion won, respectively.Among the top market capitalization stocks, most are in decline, including Alteogen (-5.30%), EcoPro (-5.11%), EcoPro BM (-5.43%), Rainbow Robotics (-5.94%), JUSUNG Engineering (-2.09%), Wonik IPS (-4.04%), HLB (-2.63%), Rino Technology (-4.60%), IOTech (-2.29%), and ABL Bio (-6.85%).Market analysts are cautious about the potential for increased short-term volatility due to rising U.S. interest rates and oil prices, but they believe that the earnings outlook and low valuations in the domestic market will provide support against further declines.Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is starting lower due to the impact of rising U.S. market rates and Walmart's poor earnings, despite the strength of the Philadelphia Semiconductor Index with companies like Micron. The market will likely see sector differentiation based on foreign investor sentiment."He added, "While macro uncertainties are high, the current earnings momentum of the KOSPI is reassuring. As of August 20, the consensus for KOSPI operating profit for 2026 and 2027 is 986 trillion won and 1,311 trillion won, respectively, showing no significant damage even after the pressures of rising rates and energy costs in August."Another analyst noted, "With a forward price-to-earnings ratio (PER) of only 5.5, the valuation pressure from interest rates is not significant. Considering the increasing likelihood of shareholder returns from Samsung Electronics following SK Hynix, the pressure for stock price adjustments due to macro uncertainties is likely to be limited."He concluded, "Even if additional market adjustments occur, a strategy of gradually buying large-cap stocks, including semiconductors, may be a better option."* This article has been translated by AI. 2026-08-21 09:44:20
  • Jung Jin-hyuk Appointed as New Chairman of Korea Railroad Corporation
    Jung Jin-hyuk Appointed as New Chairman of Korea Railroad Corporation Jung Jin-hyuk, a professor at Yonsei University, has been appointed as the new chairman of the Korea Railroad Corporation, marking the end of a five-month leadership vacancy. According to industry sources on the 20th, Professor Jung has been designated as the 9th chairman of the Korea Railroad Corporation and is expected to officially begin his duties following a ceremony as early as next month. Jung earned his bachelor's and master's degrees in civil engineering from Yonsei University and obtained his Ph.D. in civil engineering with a focus on transportation planning from Pennsylvania State University. He was appointed as a professor in the Department of Urban Engineering at Chung-Ang University in 1997 and has been a professor at Yonsei University since 2007. He served as the president of the Korean Society of Transportation from 2023 to 2025. Jung has also engaged in various advisory roles in the fields of transportation and urban planning for the government and local municipalities. He has served on committees such as the Traffic Impact Assessment Review Committee of the Ministry of Land, Infrastructure and Transport, the Mobility Innovation Forum, and the National Transportation Commission, providing consultation on transportation and urban planning for cities like Seoul and Gyeonggi Province. The Korea Railroad Corporation is responsible for major national railroad projects, including the GTX project, railroad undergrounding, high-speed rail expansion, and the design and bidding of railroad construction. Given the recent surge in railroad safety issues, there is a growing call for leadership that combines project execution capabilities with safety management skills. With Jung's appointment, it is anticipated that decision-making regarding key railroad projects such as the GTX, railroad undergrounding, and high-speed rail expansion will accelerate. Meanwhile, the Korea Railroad Corporation announced on the 20th that it will solicit project managers for the development of approximately 201,716.8 square meters of idle railroad facilities in the Ganhyeon-Pandae section of Wonju, Gangwon Province, for 90 days starting from the 20th.* This article has been translated by AI. 2026-08-21 09:44:10
  • Qualcomm Hires Sergio Buniac from Motorola to Lead Personal AI Business
    Qualcomm Hires Sergio Buniac from Motorola to Lead Personal AI Business Qualcomm has hired Sergio Buniac, who led Motorola's mobile business, to strengthen its strategy of expanding from smartphone-centric operations into personal AI devices, including PCs, wearables, and XR.On August 21, Qualcomm announced Buniac's appointment as Executive Vice President and head of the Mobile, Compute, and Personal AI Group at Qualcomm Technologies. He will assume his role on September 2, overseeing the next generation of AI devices, including smartphones, personal computing, smart wearables, and XR. He will report directly to Qualcomm CEO Cristiano Amon.Before joining Qualcomm, Buniac spent over 30 years at Motorola, where he held various roles in strategy, product management, sales, marketing, operations, and supply chain. Since 2018, he has served as the President of Motorola Devices, leading its global business. Recently, Motorola has expanded generative AI features in its smartphones and broadened its AI device offerings, making it one of Qualcomm's key customers.With Buniac's extensive experience in finished product operations, Qualcomm is expected to broaden the application of its Snapdragon platform. As AI capabilities extend beyond smartphones to PCs, wearables, and XR, the importance of chipset performance, product development, and collaboration with manufacturers is increasing.Amon praised Buniac as a business leader with over 30 years of experience in the mobile industry. He expressed confidence that Buniac's background in building global consumer device businesses from product design to commercialization will play a crucial role in expanding Snapdragon-based experiences in the era of agentic AI.This appointment comes as Qualcomm seeks to expand its business from a mobile chip focus to an AI device platform. How Buniac integrates his manufacturing perspective from Motorola with Qualcomm's platform business is expected to be a key factor in the future expansion of AI devices.* This article has been translated by AI. 2026-08-21 09:44:10