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New Youth Housing Loan Program Launching in January 2027 Interest among young people is high for the 'Youth Future Housing Loan' set to launch in January 2027. This policy financial product is aimed at young renters without homes looking to purchase non-apartment properties such as villas and officetels. With a loan-to-value ratio (LTV) of up to 80%, it could serve as a valuable means for young individuals without initial capital to secure their own homes. However, there are important considerations. The housing price recognized by financial institutions is based on appraisal value, not the actual sale price. If the appraisal value is lower than the expected sale price, borrowers may not receive the anticipated loan amount. How can young people fully utilize the Youth Future Housing Loan? What is the Youth Future Housing Loan? The Youth Future Housing Loan is a new policy product introduced by the government as part of the comprehensive real estate finance measures announced on August 13. It targets young individuals under 39 years old who are first-time homebuyers and have an annual income of less than 70 million won. The loan allows for a maximum LTV of 80% when purchasing non-apartment properties (villas and officetels) valued at 400 million won or less, and it retains first-time LTV benefits when transitioning to an apartment. This option could help reduce housing costs for those looking to secure their own homes using non-apartment properties. However, the '400 million won or less' condition can be challenging. In areas with good access to downtown Seoul or high expectations for redevelopment, many villas exceed this price point. Expanding the search to the outskirts of Seoul or the metropolitan area may yield suitable housing within the price range eligible for the Youth Future Housing Loan. LTV of 80% Based on Collateral Value, Not Sale Price If planning to purchase a villa using this product, it is crucial not to base financial plans solely on the 'LTV 80%' figure. The method of assessing collateral value for villas differs from that of apartments. Apartments have frequent transactions within the same complex and size, making it easier for financial institutions to access reliable pricing data, such as KB Real Estate prices. In contrast, villas can vary significantly in price based on factors like floor level, direction, year of construction, and building condition, making it difficult to establish a uniform market price. As a result, financial institutions assess the collateral value of villas through individual appraisals due to insufficient market data. The appraisal process considers comparable sales, location, and building condition. This discrepancy can lead to differences between the actual sale price and the collateral value recognized by financial institutions. Officetels may also require separate collateral appraisals if there is no established market price. Therefore, when preparing funds to purchase a villa, calculating the potential loan amount based solely on the sale price and applying the LTV can lead to disappointment. For example, if a villa is priced at 200 million won, but the financial institution assesses its collateral value as lower, applying the LTV of 80% may result in a loan amount that falls short of expectations. Relying solely on the sale price for loan calculations could necessitate additional personal funds. Future Demand and Resale Potential Should Be Considered For this reason, it is essential to verify the expected collateral value and potential loan amount before signing a sales contract. Consulting real estate agencies for recent sale prices and appraisal cases of similar villas in the area, as well as discussing expected loan limits with financial institutions, is advisable. The publicly announced prices of multi-family housing can also serve as a reference for gauging housing prices. To prepare for the possibility of not receiving the expected loan amount, including loan-related clauses in the sales contract is a prudent approach. Another factor to consider is that the Youth Future Housing Loan retains first-time LTV benefits when transitioning to an apartment. Therefore, it is important to evaluate resale potential when choosing the first home. Prospective buyers should carefully assess whether the location will continue to attract demand and if the property can accommodate future family growth. Song Seung-hyun, CEO of Urban and Economy, stated, "Choosing the right location for a villa is crucial for future liquidity. In areas with high demand, finding villas priced under 400 million won can be challenging, so it is essential to consider future demand and resale potential as well."* This article has been translated by AI. 2026-08-20 17:52:10 -
Government to Issue 500 Billion Won in Treasury Bonds in August The Ministry of Finance announced on August 20 that it will issue 500 billion won in treasury bonds through a non-competitive bidding process. Since being included in the World Government Bond Index (WGBI) in April, demand for treasury bonds has increased. The term "treasury bonds" refers to bonds that have been newly issued while transferring benchmark status from previously issued bonds. To enhance liquidity in treasury bonds, the government will conduct a non-competitive bidding process for these bonds. In this process, primary dealers (PDs) can bid for the amount of bonds they require based on the pre-announced issuance volume and interest rate. The allocation of successful bids will be proportionate to the amount bid by each PD within the limits of the issuance volume for each bond type. The issuance will include four types of 20-year bonds totaling 425 billion won and one type of 30-year bond totaling 75 billion won. A Ministry official explained, "PDs can bid in two groups based on their performance evaluations from the previous month. The first group, which includes all 20 primary dealers, will receive 60% of the planned issuance amount. The second group, consisting of the top 10 primary dealers based on their performance evaluations, will receive 40% of the planned issuance amount." The interest rates for the bonds to be issued in August will be announced on the bond market's website on the bidding date, August 28, taking into account market conditions such as prevailing interest rates.* This article has been translated by AI. 2026-08-20 17:52:10
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Intense Legal Debate Over Electric Vehicles and Critical Minerals at WTO Mock Trial 전기차 충전 인프라와 핵심광물을 둘러싼 각국의 산업정책이 국제 통상현안으로 떠오른 가운데 대학생과 대학원생들이 세계무역기구(WTO) 규범을 토대로 치열한 법리 공방을 벌였다. 산업통상부는 20일 한국국제경제법학회와 공동으로 서울시립대학교 법학관에서 '제17회 WTO 모의재판 경연대회'를 개최했다. 서울시립대학교가 후원한 이번 대회에는 전국 15개 대학에서 21개 팀, 총 76명이 참가를 신청했다. WTO 모의재판 경연대회는 미래 통상 전문인재를 발굴·양성하고 국제통상규범에 대한 관심을 높이기 위해 2010년 시작됐다. 17회째를 맞은 올해는 학부생뿐 아니라 대학원생까지 참여하면서 국제통상 분야에 대한 청년층의 높은 관심을 보여줬다. 서면 심사를 통과한 8개 팀은 이날 본선에서 제소국과 피제소국으로 나뉘어 맞붙었다. 참가자들은 통상법 전문가들로 구성된 심사위원단 앞에서 WTO 협정과 판례 등을 토대로 자국의 조치가 국제통상규범에 부합하는지를 주장했다. 상대 팀의 논리를 즉석에서 반박하고 심사위원들의 질문에 답하는 과정도 이어졌다. 미리 준비한 변론을 발표하는 데 그치지 않고 사실관계와 협정상 쟁점을 파악해 논리를 구성해야 하는 만큼 실제 WTO 분쟁해결절차를 연상시키는 공방이 펼쳐졌다. 올해 문제는 최근 글로벌 통상환경의 변화를 반영해 전기차 충전 인프라와 핵심광물을 둘러싼 가상국의 산업정책을 소재로 구성됐다. 친환경 산업 육성과 공급망 안정이라는 정책적 필요성이 WTO 규범과 어떤 관계를 갖는지가 주요 쟁점으로 다뤄졌다. 특히 참가자들은 정부조달과 경제통합협정 등 여러 통상규범을 함께 검토하며 각국 산업정책의 정당성과 규범 합치 여부를 따졌다. 최근 주요국이 핵심광물 공급망 확보와 친환경 산업 육성에 적극 나서면서 실제 통상현장에서도 중요성이 커지고 있는 사안들이다. 경연 결과 서울대학교 'ANTI-DUMPLINGS'팀이 가장 높은 평가를 받아 산업통상부 장관상인 대상을 차지했다. 연세대학교와 전남대학교 학생들로 구성된 'Bona Fide'팀은 한국국제경제법학회장상인 최우수상을 받았다. 서울시립대학교 '비상'팀과 고려대학교 '토마통상'팀은 공동 우수상에 이름을 올렸으며 8강에 진출한 나머지 팀에도 장려상이 수여됐다. 권혜진 산업부 통상교섭실장은 "보호무역주의가 확산되고 통상환경이 복잡해질수록 국제통상규범은 국가 간 경쟁이 지켜야 할 공통의 기준이 되고 규범에 기반한 분쟁해결의 중요성도 더욱 커진다"고 말했다. 이어 "이번 대회를 통해 우리 청년들이 규범을 정확히 이해하는 능력과 산업·정책의 현실을 함께 읽는 시각을 키워 앞으로 실제 통상현장에서 대한민국의 국익과 기업의 이익을 지켜내는 전문인재로 성장하기를 기대한다"고 덧붙였다.* This article has been translated by AI. 2026-08-20 17:52:00
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Kim Wol-yong Calls for 1 Trillion Won Investment in Lifelong Education In response to the rapidly changing demographic structure and the AI and digital era, there is a growing call for significant national investment in adult lifelong education. The National Institute for Lifelong Education (NILE) announced plans to hold the first-ever 'Korea Literacy Policy Exhibition' to present a new vision for lifelong learning, coinciding with the 20th anniversary of its adult literacy support program."With a declining school-age population and an increasing elderly demographic, a 1 trillion won budget for lifelong education is necessary"During a press briefing on August 20 at NILE's smart conference room, Kim Wol-yong, the head of NILE, stressed the urgent need for increased funding for lifelong education.Kim pointed out that there are 1.4 million people who cannot read Hangul and 4 million who lack digital skills, highlighting the significant number of uneducated seniors. He noted, "While substantial funds are allocated to primary and secondary education, the learning needs of adults who have graduated from school are being neglected, leading to increased intergenerational conflict and alienation. We must open up university and school infrastructure to the public and usher in an era of lifelong education with a budget of around 1 trillion won."According to NILE data, the number of elementary, middle, and high school students in South Korea is projected to decrease by approximately 36% from 2005 to 2025, while the population aged 65 and older is expected to increase by 2.4 times. Furthermore, the results of the fourth adult literacy survey revealed that 7.35 million adults (16.6%) lack basic literacy skills necessary for daily life, and the first adult digital literacy survey indicated that 47.2% of adults, or 20.27 million people, struggle with using digital devices.Kim emphasized the need for a two-track approach to education that utilizes retired teachers and opens university resources to the public, creating a comprehensive educational system that spans a lifetime.20th Anniversary of Literacy Education: First 'Policy Exhibition' on August 27-28 in CheongjuTo share this policy necessity with the public, NILE will host the 'First Korea Literacy Policy Exhibition' from August 27 to 28 at the OSCO Convention Center in Cheongju, with the Ministry of Education as the organizer and the Chungcheongbuk-do provincial government as a sponsor. This exhibition will spotlight the achievements of the adult literacy support program since its inception in 2006.Approximately 2,000 adult literacy learners from across the country are expected to attend the event, which will feature a documentary titled 'Learning Literacy' that captures the genuine journeys of learners achieving new dreams through education, as well as a musical gala show based on award-winning works from a national poetry contest.Additionally, the exhibition will include an awards ceremony for the national adult literacy poetry contest, a conference aimed at enhancing the capabilities of literacy teachers, and a national gathering of literacy educators.Corporate Collaborations: 'Hangul Sunshine Bus' to Reach Underserved CommunitiesBeyond simple viewing, 29 diverse experiential booths will be set up. Numerous private companies, including Naver, L'Oréal Korea, Staedtler Korea, and Hana Bank, will collaborate to create these booths. On-site digital literacy education will cover practical topics such as digital shopping, mobile banking app usage, and hands-on experiences with AI home appliances.In particular, the 'Hangul Sunshine Bus,' an AI and digital literacy education bus, will visit areas with limited access to digital education facilities, welcoming visitors to experience tailored educational programs through various digital devices set up inside the bus.* This article has been translated by AI. 2026-08-20 17:48:00
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Sonno Run Trip to Feature Nighttime Running Event in Gyeongju on October 4 Sonno International announced on August 20 that it will host the 'Sonno Run Trip 180K in Gyeongju,' a running festival set against the backdrop of the scenic night view of Bomun Lake, on October 4.This event marks the fourth stage of the 'Sonno Run Trip 180K' project, which connects 10km running courses from 18 Sonno Hotels and Resorts across the country into a single journey. The Sonno Run Trip features a concept of 'traveling while running in nature,' combining local natural environments with wellness, and has recently gained significant popularity among runners.The previous event, 'Sonno Run Trip 180K in Vivaldi Park,' held on August 5 in Hongcheon, saw over 1,000 participants sign up quickly, reflecting the high enthusiasm for the project.Building on the excitement from Vivaldi Park, the Gyeongju event will take place at Sonno Cam Gyeongju under the theme 'Bomun Lake Starlight Race.' The course will be divided into two options: a general running course of 9km and a pet-friendly running course of 7km. The general running course starts at Sonno Cam Gyeongju, passing key landmarks along the Bomun Lakeside, including Mulneoul Bridge, Hoban Bridge, and Silla Bridge. Designed as a flat, scenic route with minimal elevation, it is suitable for both beginners and experienced runners. The 7km pet-friendly course allows participants to run alongside their pets, expanding the options for attendees.On the day of the event, photo zones and experience booths will open at 3 p.m., followed by the main race starting at 6:30 p.m.The Gyeongju Run Trip will implement an RFID-based automatic timing system to provide accurate completion records for participants. After the race, a lucky draw will offer prizes such as accommodation vouchers for Sonno Cam Gyeongju and Galaxy Watches. Additionally, a special after-performance will celebrate the one-year anniversary of the Sonno Cam Gyeongju's renovation.Participants will receive access to the 'Sonno Cam Gyeongju Wellness Pool and Spa,' which was selected as a wellness tourism site in Gyeongsangbuk-do this year, ensuring a perfect relaxation experience after running. For those seeking a more leisurely schedule, a package combining two nights' accommodation and race entry will also be available.All participants will receive functional T-shirts, gym bags, and LED accessories. Pet participants will also receive leashes and LED blinkers for safety. Finishers will be awarded medals and energy kits. Registration is available on a first-come, first-served basis through the official Sonno Hotels and Resorts website and major online travel platforms.A representative from Sonno International stated, 'We hope participants enjoy a unique experience running while appreciating the nighttime scenery of Bomun Lake, a world-class tourist city with a millennium of historical and cultural value. We will continue to present differentiated travel culture through the Sonno Run Trip project, combining the unique resources and wellness of each region where Sonno Hotels and Resorts are located.'* This article has been translated by AI. 2026-08-20 17:48:00
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Park Jong-jun Acknowledges Charges in Appeal Hearing for Obstructing Arrest of Yoon Suk Yeol Park Jong-jun, the former head of the Presidential Security Service, bowed his head in acknowledgment of all charges against him during the first appeal hearing on August 20. He is accused of systematically obstructing the execution of an arrest warrant for former President Yoon Suk Yeol at the presidential residence in Hannam-dong, Yongsan, following the declaration of a state of emergency on December 3.The Seoul High Court's Criminal Division 1, presided over by Judge Yoon Seong-sik, held the first appeal hearing for Park and three others charged with obstructing special public duties and abuse of power.In the first trial, the court recognized the charges of obstructing special public duties and sentenced Park to four years in prison, Kim Sung-hoon, the former deputy chief, to five years, and Lee Kwang-ho, the former head of the security headquarters, to two and a half years. Kim Shin, the former head of the family department, who was responsible for on-site operations, received a one-year sentence with a two-year probation.Following the first trial verdict, all defendants and the special prosecutor's team led by Special Prosecutor Cho Eun-seok filed appeals.During the appeal, Park's defense team withdrew their claim of innocence and stated they would only contest the severity of the sentence. Park stated, "Throughout my 30 years of public service, I have tried to uphold the law and principles, but I deeply regret and apologize for causing confusion among the public and the risk of physical conflict between state agencies due to my shortcomings."In contrast, Kim's defense team argued against the severity of the sentence and claimed factual errors and legal misunderstandings, stating they would contest some charges. Kim's lawyer asserted that the allegations regarding the deletion of phone records by former President Yoon were not an instruction to destroy evidence but rather a request for normal security measures, and questioned the credibility of key witness Kim Dae-gyeong, the former head of the support headquarters.The special prosecutor's office appealed the first trial's decision, which found some charges against Kim not guilty, citing factual errors and legal misunderstandings. They pointed out that even if Kim did not attend the pre-meeting, he was involved in the installation of barriers on-site and directly exercised physical force against the officers executing the warrant, establishing a sequential and implicit conspiracy regarding the overall crime.The special prosecutor's office also argued against the severity of the sentences for all defendants, stating, "This is a serious crime that undermined the lawful criminal justice process by mobilizing state agencies and personnel, damaging public trust in the rule of law, yet the defendants have not shown remorse during the investigation and trial process, denying their actions entirely." They criticized the original sentence as excessively lenient.After hearing both sides, the court ordered both parties to submit written statements by September 2, detailing their positions on the legality of the security measures regarding the phone and the extent of Kim's involvement in obstructing the arrest.Additionally, the court decided to separate the proceedings for Lee and Kim, who do not require further evidence investigation, and will proceed with the decision-making process later. Upon this decision, Lee and Kim quickly exited the courtroom.The court accepted witness requests from Park's side for Ahn Mo, the former head of the planning and management office, and from Kim's side for Kim, the former head of the support headquarters, and announced that hearings would continue on September 9 and 11 for witness examinations.Before the hearing, the court approved the special prosecutor's request for live broadcasting, stating that the seriousness of the matter, the public's right to know, the fairness of the trial, and the protection of the defendants' privacy were all considered in allowing the broadcast from the start to the end of the trial. 2026-08-20 17:44:00
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Ticket Scalping Spreads from Concerts to Theaters: Can It Be Stopped? 공연과 스포츠계의 고질적인 병폐였던 암표 문제가 영화관으로 옮겨붙었다. 최근 화제작 '오디세이' 개봉과 맞물려 아이맥스(IMAX), 4DX, 돌비시네마 등 이른바 '특별관'의 명당 좌석을 선점한 뒤 온라인에서 웃돈을 얹어 되파는 부정 거래가 기승을 부리고 있다. 일반 상영관에 비해 좌석 수가 한정되어 있고 특수 포맷에 대한 관객 선호도가 뚜렷하다 보니, 암표상들의 집중 타깃이 되며 표를 구하지 못한 일반 관객들의 불만이 가중되는 상황이다. 관람객들의 피해가 커지자 영화진흥위원회(위원장 한상준, 이하 영진위)가 공공 차원에서 처음으로 칼을 빼 들었다. 영진위는 관객 피해 예방 및 공정한 관람 환경 조성을 위해 지난 18일부터 특별관 입장권 부정 거래 정황을 수집하는 상시 제보 창구를 개설하고 본격적인 실태 파악에 돌입했다. 제보 대상은 △특별관 예매 티켓의 웃돈 거래로 피해를 입은 경우 △중고거래 플랫폼이나 사회관계망서비스(SNS), 티켓 거래 사이트 등에서 암표 거래 게시글 및 정황을 확인한 경우 △매크로 프로그램 이용이 의심되는 비정상적인 대량 예매 사례를 인지한 경우 등이 모두 포함된다. 제보를 희망하는 관객은 해당 영화명과 상영관(지점), 상영 일시, 좌석 정보와 함께 중고거래 판매 게시물 캡처, 대화 내역, 거래 인터넷주소(URL) 등 증빙 자료를 영진위 전용 이메일로 제출하면 된다. 영진위 공정성장센터 측은 "일부 암표상의 부당 이득 취득 행위는 영화 관객의 정당한 관람 기회를 박탈하고 산업 전반의 신뢰를 훼손하는 심각한 문제"라며 "제보자의 신원과 내용은 관련 법령에 따라 철저히 보안이 유지되므로 적극적인 제보를 당부한다"고 밝혔다. 영진위가 전면에 나선 배경에는 개별 극장의 단속만으로는 점차 교묘해지고 조직화되는 암표 유통을 원천 차단하기 어렵다는 구조적 한계가 깔려 있다. 암표 거래의 1차 방어선인 극장가 역시 지속적인 모니터링을 이어왔다는 입장이다. CGV 측은 "일부 업체의 비정상적인 예매 행위와 티켓 부정 거래 가능성에 대해 상시 모니터링을 진행하고 있다"며 "공정한 예매 환경을 저해하는 행위가 확인될 경우 이용약관에 따라 계정 이용 제한 등 필요한 조치를 취하고 있다"고 밝혔다. 극장가 입장에서는 영화관 암표가 새롭게 불거진 이슈가 아닌 만큼, 이전부터 자체 시스템을 통해 지속적으로 단속을 벌여왔다는 설명이다. 그러나 극장들의 지속적인 자체 조치에도 대형 화제작이 개봉할 때마다 매크로 등을 동원한 대규모 암표 거래가 되풀이되자 결국 영진위가 개입을 시작했다. 다만 현 단계에서 즉각적인 행정 처분이나 단속 효과를 기대하기는 턱없이 부족한 실정이다. 실제로 18일 상시 제보 창구 개설 이후 암표 관련 제보가 접수되고 있으나 영진위가 직접적인 제재를 가할 법적 권한은 없다. 영진위 측은 이번 조치에 대해 "현황 파악과 향후 방향 설정을 위해 자료를 수집하는 것이 주된 목적"이라며 "당장 법령을 적용해 암표상에게 제재를 가하거나 시행할 수 있는 조치가 없는 것은 맞다. 접수된 건들은 확인 후 유통 구조와 피해 실태를 분석하고 있다"고 현 상황의 한계를 인정했다. 당장의 처벌 권한이 없음에도 영진위가 구체적인 팩트 수집에 나선 이유는 결국 '법적 근거 마련'을 위한 뼈대 구축 작업이다. 문체부가 암표 근절을 주요 정책 과제로 추진하고 있는 가운데 영화 분야에서도 제도 마련을 위한 움직임이 본격화한 것이다. 최휘영 문체부 장관은 최근 '국민과 함께하는 두 번째 업무보고'에서 경제성장 엔진 육성과 지역 정주 여건 혁신 등 6가지 핵심 아젠다를 제시하며, 국가 정상화 과제의 일환으로 공연·스포츠 분야 암표 근절을 강하게 짚었다. 오는 28일 시행되는 개정 공연법과 국민체육진흥법에 따라, 매크로 사용 여부와 무관하게 모든 부정 거래를 금지하고 최대 판매 금액의 50배에 달하는 과징금을 부과하는 강력한 기준이 마련됐다. 문체부는 향후 민간협의체 운영을 통해 주요 행사의 모니터링과 단속을 대폭 강화할 방침이다. 영진위가 취합하는 제보 자료는 향후 주요 온라인 거래 플랫폼 및 관계 부처와의 업무 협의, 유통 방지 시스템 개선 그리고 궁극적으로는 실효성 있는 '법 제도 보완'을 이끌어낼 필수적인 기초 자료로 활용될 예정이다. 문체부가 공연과 스포츠 분야의 암표에 50배 과징금이라는 철퇴를 내린 가운데 영진위의 이번 실태 조사가 영화 관람권 역시 강력한 법적·제도적 제재 테두리 안으로 편입시키는 마중물이 될 수 있을지 영화계 안팎의 이목이 쏠린다.* This article has been translated by AI. 2026-08-20 17:36:10
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Joint Chiefs of Staff Reports North Korea Fired Unknown Projectile, Possible Ballistic Missile The Joint Chiefs of Staff announced that North Korea fired an unknown projectile into the East Sea on August 20. There are discussions about the possibility that it could be a ballistic missile.According to Yonhap News Agency, the Joint Chiefs of Staff are currently analyzing the specifications and range of the North Korean projectile. If confirmed as a ballistic missile, this would mark the first launch in eight days.Furthermore, this launch occurred during the ongoing joint military exercise between South Korea and the United States, known as the 'Ulchi Freedom Shield (UFS),' which runs from August 17 to 21. 2026-08-20 17:36:00
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Credit Card Loans Decline for Two Consecutive Months Amid Increased Refinancing and Cash Services Due to strengthened management of household loans by financial authorities, the outstanding balance of credit card loans in South Korea has decreased for two consecutive months. In contrast, refinancing loans and cash services have seen increases, indicating ongoing repayment burdens for vulnerable borrowers.According to the Korea Credit Finance Association on August 20, the outstanding balance of credit card loans from nine major card companies (Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Woori, Hana, BC, and NH Nonghyup) was recorded at 42.7957 trillion won at the end of July, a decrease of 113.6 billion won from the previous month’s 42.9093 trillion won.The balance of credit card loans began to decline in June after reaching an all-time high in May, influenced by the financial authorities' stricter management of household loans. The credit finance industry aims to keep the growth rate of household loans, including credit card loans, at around 1.5% this year.However, indicators reflecting the repayment burden of borrowers at high risk of default have risen again. The balance of refinancing loans, which are taken out by borrowers unable to repay their existing credit card loans, increased by 995 billion won (6.4%) to 1.648 trillion won at the end of July.Additionally, the balance of revolving credit, which is a form of payment service, rose by 438 billion won to 6.8759 trillion won. During the same period, the balance of cash services, a type of short-term card loan, increased by 2.409 trillion won to 7.0251 trillion won.* This article has been translated by AI. 2026-08-20 17:36:00
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Korean National Assembly Passes Bill to Set Fair Value for Mergers The National Assembly has passed a bill amending the Capital Markets Act to determine the merger value of listed companies based on 'fair value' rather than market price at a specific point in time. This change aims to prevent controlling shareholders from intentionally lowering stock prices to create favorable merger conditions, thereby enhancing protection for minority shareholders.According to the Financial Services Commission on August 20, the amendment to the Capital Markets and Financial Investment Act passed the National Assembly after being reviewed by the Political Affairs Committee on May 14 and the Legislation and Judiciary Committee on July 29.Under the current law, when a listed company merges with an affiliate, the merger value is primarily based on market price. This is calculated using the arithmetic average of closing prices from the previous day of either the contract date or the board resolution date, averaged over the last month, week, or day, with a permissible discount or premium of up to 10%.The issue with relying solely on market price is that controlling shareholders may intentionally choose a low stock price point or have an incentive to suppress stock prices ahead of a merger.The amendment stipulates that for mergers, spin-offs, significant asset transfers, and comprehensive stock exchanges, fair value will be determined by considering market price, asset value, and income value comprehensively.Asset value will be calculated by dividing net assets by the total number of issued shares, while income value can be assessed using discounted cash flow (DCF) or dividend discount models (DDM). This approach aims to reflect not just the stock price at a specific point in time but the intrinsic value of the company.The method for calculating the buyout price for shareholders opposing mergers will also change. Currently, if no agreement is reached between shareholders and the corporation, the market price is applied, followed by a court ruling. The amendment will require consideration of market price, asset value, and income value.To enhance procedural fairness, the board of directors will be required to prepare and disclose an opinion statement regarding the purpose and expected effects of the merger, as well as the appropriateness of the value. This provision elevates the current regulatory content to a legal requirement.Additionally, companies will need to obtain evaluations from an objective third party regarding the fairness of the merger value or transaction terms and disclose the results. In cases of mergers between affiliates, they must also disclose any related party transactions, such as debt guarantees, collateral provisions, and concurrent positions held by executives.The Financial Services Commission stated, “With this amendment, minority shareholders will be able to assess the validity of mergers by reviewing public documents, and it can be utilized for rights remedies if necessary, in conjunction with the shareholder loyalty obligations under the amended Commercial Act.”The amendment is expected to take effect three months after its promulgation, following government transmission and approval by the Cabinet. The Financial Services Commission plans to promptly revise subordinate regulations in line with the law's implementation.* This article has been translated by AI. 2026-08-20 17:32:10