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  • Korea looks to turn chip windfall into fiscal war chest
    Korea looks to turn chip windfall into fiscal war chest SEOUL, August 23 (AJP) - South Korea is looking to turn a tax windfall from its booming semiconductor industry into a new fiscal reserve, extending the economic spoils of the AI memory boom from chipmakers, workers and shareholders to government coffers. The government plans to establish a "Future Response Fund" that would collect tax revenue exceeding longer-term trends and channel it into strategic areas including youth programs, future growth industries, regional development and education and talent, according to the Ministry of Planning and Budget. The proposal comes as a historic semiconductor upcycle, fueled by surging demand for artificial intelligence infrastructure and high-bandwidth memory, is expected to sharply boost corporate tax receipts from the country's chip industry. Under the proposed system, the government would calculate a longer-term trend for domestic tax revenue based on historical growth. Revenue exceeding that level would be transferred from the general account into the new fund. The mechanism would also work in reverse. If tax revenue falls below the trend during an economic downturn, money accumulated in the fund could be transferred back to the general account, effectively creating a fiscal buffer between boom and bust. Planning and Budget Minister Park Hong-keun has described the fund as a fiscal reserve that could store revenue during periods of abundance and deploy it when government finances come under pressure. The fund could also receive excess tax revenue identified after revised government forecasts, remaining budget surpluses and returns generated from investing idle funds. Its eventual size has not been determined. The government plans to disclose more details alongside its 2027 budget proposal and medium-term fiscal plan early next month, although estimates based on the proposed funding mechanism suggest the pool could eventually exceed 100 trillion won ($72 billion). The proposal illustrates how far the financial impact of the AI semiconductor boom is spreading through South Korea's economy. Samsung Electronics and SK hynix are generating sharply higher earnings as global technology companies pour hundreds of billions of dollars into AI infrastructure, increasing not only corporate cash flow but also the tax revenue available to the government. The fund, however, is already raising questions over fiscal oversight. Critics have warned that a large pool of money sitting outside the regular general budget could give the government greater flexibility to redirect spending during the fiscal year, potentially allowing it to function like a standing supplementary budget. The government has rejected that characterization, saying the new fund, like other state funds, would remain subject to parliamentary budget review and that its creation would not weaken the National Assembly's authority over public finances. There are also questions over how sustainable a fund built partly on semiconductor-driven tax revenue would be. The memory industry is notoriously cyclical, meaning a downturn in chip prices and profits could quickly reduce the tax windfall currently expected to finance the fund. The government argues the mechanism is designed partly to address that volatility, accumulating revenue during boom years and releasing fiscal resources when tax collections weaken. Legislation establishing the fund is expected to move toward the National Assembly alongside the government's 2027 budget process. AJP Takeaways: South Korea plans to channel tax revenue generated above longer-term trends, including gains from the semiconductor boom, into a new Future Response Fund. The fund would finance youth, growth industries, regional development and education while also acting as a buffer that can support government finances when tax revenue weakens. Its final size has not been set, while the proposal is likely to face scrutiny over parliamentary oversight and its reliance on revenue from the highly cyclical semiconductor industry. 2026-08-23 13:49:58
  • IMAXs Odyssey Sparks Demand for Large Screens in Chinas Film Industry
    IMAX's 'Odyssey' Sparks Demand for Large Screens in China's Film Industry As the Hollywood film 'Odyssey' gains popularity in China, state media has highlighted the strong demand for large screens, urging a shift in the Chinese film industry from 'quantitative expansion' to 'qualitative improvement.'In a column published on August 23, the Economic Daily noted that the success of films like 'Odyssey' has renewed focus on the competitiveness of large screens, stating, "The film industry must move beyond simply increasing the number of theaters and also enhance content and screening quality." This approach aims to leverage the success of Hollywood blockbusters as a catalyst for a qualitative transformation in China's film sector.'Odyssey,' which premiered in mainland China on August 14, has surpassed a cumulative box office of 400 million yuan (approximately $60 million) as of August 22. In major cities such as Beijing, Shanghai, and Shenzhen, high-end theaters like IMAX and CINITY have seen sold-out shows. Some viewers are even traveling to different cities for the experience of watching the film in large IMAX theaters.The Economic Daily described 'Odyssey' as a film "tailored for large screens," emphasizing that it was shot entirely on IMAX film, requiring specific large-screen theaters to fully appreciate its visual and auditory effects.China has built the world's largest cinema infrastructure over the years, with 93,187 screens as of the end of last year. The Economic Daily pointed out, "With such a vast screen hardware already in place, the key now is how to generate industrial effects that match the nearly 100,000 large screens."As a solution, the column proposed a combination of 'content and hardware.' Instead of indiscriminately expanding high-end theaters, it suggested developing content suitable for large screens to enhance both screening quality and content competitiveness.In terms of content, it recommended ongoing support for the production of high-quality works that align with the narrative style of large screens. While attracting audiences with foreign blockbusters like 'Odyssey,' it also emphasized the need to focus on works that reflect China's traditional culture and reality, as well as those utilizing industrial visual effects.Additionally, it called for more Chinese film content that can effectively utilize high-end screening systems like CINITY to showcase the advantages of large screens.The column also cautioned against indiscriminate upgrades and expansions of theaters, advocating for a differentiated screening system that aligns with the size of cities and consumer levels. It suggested expanding high-end theaters like IMAX and Dolby Cinema in first-tier cities while ensuring affordable pricing and basic audiovisual improvements in county-level cinemas.Through these measures, the aim is to transform China's largest screen infrastructure into an industrial competitiveness that increases revenue per screen and expands cultural consumption.The Economic Daily analyzed that the high market interest in large screens reflects changes in China's consumer structure. Consumers are increasingly willing to pay for experiences that are difficult to replicate, with emotional satisfaction, social connections, and unique personal memories becoming important criteria for consumption.As the rise of streaming platforms raises concerns about the decline of cinemas, the Economic Daily noted, "What is truly being phased out by the times is not the cinema itself, but the outdated supply methods that resist change." 2026-08-23 13:44:00
  • Chinese and Korean Youth Strengthen Friendship Through Futsal on 34th Anniversary of Diplomatic Relations
    Chinese and Korean Youth Strengthen Friendship Through Futsal on 34th Anniversary of Diplomatic Relations In celebration of the 34th anniversary of diplomatic relations between China and South Korea, a platform for youth from both countries to strengthen their friendship through futsal has been established.The opening ceremony of the '2026 China-Korea Youth Futsal Cultural Exchange Camp' took place at Kyonggi University Suwon Campus on August 22. The event will run for four days, concluding on August 24.This inaugural event features youth players from both countries participating in a futsal tournament, visiting local youth facilities, and engaging in cultural experiences in Korea. The initiative aims to connect the recovery of China-Korea relations and the expansion of exchanges through interactions among future generations, thereby broadening the foundation of friendship and trust between the two nations.The event is co-hosted by the Korea Youth Organizations Association, the Korea International Cultural Exchange Foundation, the China International Youth Exchange Center (Communist Youth League), and the city of Yantai, China. It is organized by Sportec Korea, with support from the Chinese Embassy in South Korea, the Ministry of Culture, Sports and Tourism, the Ministry of Gender Equality and Family, Suwon Special City, the Gyeonggi Provincial Office of Education, the Gyeonggi Future Generation Foundation, Kyonggi University, and the Aju Media Group. Various government, public institutions, and private organizations are participating in the event.A total of 37 elementary and middle school players from China and 180 players from Korea are participating. Including parents, event officials, and guests, the total number of participants is approximately 700.Key figures from both countries attended the opening ceremony, including Ko Myung-jin, President of the Korea Youth Organizations Association, Son Yul, Chairman of Kyonggi University, and Kwak Young-gil, Chairman of Aju Media Group, who encouraged the participating athletes in their speeches.Ko stated, “This event serves as a platform for Chinese and Korean youth to get to know each other and exchange through soccer. I hope that the encounters on the field will lead to lasting friendships.” He added, “I expect that this event will be the starting point for exchanges between youth from both countries to expand beyond sports into various fields such as culture and education.”Kwak emphasized the significance of holding a youth exchange event on the 34th anniversary of China-Korea diplomatic relations, stating, “The youth are the future generation that will lead the relationship between our two countries.”He expressed hope that the youth from both nations would understand each other and build trust through the common language of soccer, and that this meeting would further activate civilian exchanges between China and Korea.During the opening ceremony, the youth delegations from both countries were introduced, and exchange programs for the participating athletes were conducted. The youth naturally interacted during the matches, enhancing their understanding of one another.An event official stated, “We plan to further expand the channels for exchanges between Chinese and Korean youth through this event, providing opportunities for the young generations of both countries to communicate and build friendships continuously.”* This article has been translated by AI. 2026-08-23 13:24:00
  • Seven in Ten Small Businesses Say Shorter Payment Terms Would Help Management
    Seven in Ten Small Businesses Say Shorter Payment Terms Would Help Management Seven out of ten small businesses believe that reducing the legal payment deadline for deliveries from the current 60 days would benefit their management. According to a survey conducted by the Korea Federation of Small and Medium Businesses from July 21 to 24, which involved 500 small businesses engaged in consignment transactions, 71.0% of the respondents indicated that a shorter legal payment deadline would be 'helpful' for their management. By industry, 90.0% of manufacturing firms reported that a reduction in the legal payment deadline would be beneficial. This was followed by 71.9% in the construction sector and 30.9% in retail. Businesses that found a shorter payment deadline helpful cited 'improved cash flow' (55.3%) and 'smoother payments from clients' (40.9%) as their main reasons. Manufacturing and construction firms emphasized improved cash flow, while retail businesses highlighted smoother client payments as their primary concern. In the past year, 53.7% of consignment businesses reported receiving payment within 30 days. Among consignors, 62.6% stated they paid within the same timeframe. Under current cooperative and subcontracting laws, the payment deadline for deliveries is set at 60 days. When asked about the burden of having to pay sooner if the payment deadline were shortened, 41.6% of consignors responded that it would be 'average,' while 32.7% said it would not be difficult. Regarding the ideal legal payment deadline, 60.6% of businesses identified '30 days' as the most appropriate, followed by 15 days (18.0%) and 45 days (9.4%). As for the preparation time needed to implement a shorter payment deadline, 46.8% of respondents said it could be enacted 'without a grace period.' Meanwhile, 27.0% indicated that 'six months' would be necessary, and 22.8% said 'one year' would be required. The most needed support policy for shortening payment deadlines was 'low-interest loans and expanded guarantees,' cited by 58.4% of respondents. This was followed by 'shortening the maturity of payment methods such as accounts receivable and promissory notes' (24.0%) and 'expanding support for early cash conversion of accounts receivable through factoring and insurance' (16.2%). Yang Chan-hwa, executive director of the Korea Federation of Small and Medium Businesses, stated, "Shortening the payment deadline for deliveries will enhance liquidity for small businesses and alleviate financial difficulties, thus providing practical assistance for business management." He added, "However, in some industries where major buyers have long payment periods, there may be a time lag between receiving and making payments. Therefore, it is necessary to consider the transaction structure by industry and implement complementary measures such as low-interest loans and expanded guarantees."* This article has been translated by AI. 2026-08-23 13:20:20
  • Samsung and SK Hynix Announce Record $115 Billion Shareholder Return
    Samsung and SK Hynix Announce Record $115 Billion Shareholder Return Samsung Electronics and SK Hynix have officially announced a record shareholder return policy worth up to 150 trillion won. This initiative aims to distribute the substantial profits generated from the artificial intelligence (AI) memory supercycle back to shareholders. This move is unprecedented in the South Korean capital market.However, this bold step has drawn criticism, with some labeling it a 'money feast.' Skeptics question whether it undermines the company's future capital expenditures (CAPEX) and research and development (R&D) efforts.One of the fundamental purposes of a corporation is to share its profits with shareholders. Therefore, gaining trust by prioritizing shareholder value in all circumstances is crucial. Shareholder returns during prosperous times serve as a foundation for enduring through downturns.For instance, after generating significant profits following the launch of the iPhone, Apple began a major stock buyback and dividend expansion in 2012. At that time, critics warned that this would halt innovation and reduce R&D investment. The outcome, however, was different. Apple significantly boosted its earnings per share (EPS) through stock buybacks, attracting long-term capital based on strong shareholder trust. This trust helped Apple achieve a historic market valuation of over $3 trillion.Similarly, Microsoft faced growth pains in the mid-2000s due to stagnation in the PC market and failures in mobile transition, yet it initiated a large-scale shareholder return. This trust allowed Microsoft to pivot towards a cloud-centric business model.Strong shareholder trust forms the backbone of a company's fundamental strength. During economic downturns or unexpected external challenges, this trust acts as a robust support system against stock price declines. Conversely, when opportunities arise, it enables swift capital mobilization and a focus on innovation.The 150 trillion won shareholder return aims to alleviate the 'Korea Discount' that has long weighed on the South Korean stock market and to establish a globally competitive level of shareholder trust, thereby strengthening the company's true resilience.However, companies must not become so focused on distribution that they miss growth opportunities. To avoid being perceived as merely a benevolent gesture, they should solidify their financial structures and present innovative strategies for future visions. The AI market, too, will eventually mature and face a downturn. The considerations for both companies following this semiconductor boom are just beginning.* This article has been translated by AI. 2026-08-23 13:16:00
  • Kim Min-jae Plays Full Match as Bayern Munich Defeats Dortmund for Supercup Title
    Kim Min-jae Plays Full Match as Bayern Munich Defeats Dortmund for Supercup Title Kim Min-jae, a central defender for the South Korean national team, helped Bayern Munich secure the Supercup title.Bayern Munich defeated Borussia Dortmund 2-1 in the 2026-2027 season Franz Beckenbauer Supercup held at Signal Iduna Park in Dortmund on the 23rd.Starting the match, Kim played the full 90 minutes, contributing to the team's victory.This marks Bayern's second consecutive Supercup title and their 12th overall, solidifying their position as the all-time leader in this competition.Bayern scored both of their goals in the first half. Nathaniel Brown opened the scoring with a left-footed shot in the 28th minute.Then, in the 46th minute, Michael Olise capitalized on a defensive error to add a second goal.Despite allowing a goal to Fabio Silva in the 75th minute, Bayern's defense held firm to secure the 2-1 win.With a positive start to the season, Bayern will host Stuttgart for their Bundesliga opener at 3:30 a.m. on the 29th.* This article has been translated by AI. 2026-08-23 12:40:00
  • Retailers Gear Up for Chuseok with Early Gift Set Promotions
    Retailers Gear Up for Chuseok with Early Gift Set Promotions As Chuseok approaches in a month, the retail industry is accelerating efforts to capture demand for holiday gifts. In response to an earlier-than-usual Chuseok this year, department stores are expanding their pre-order selections and benefits, while convenience stores are broadening their offerings from budget-friendly items to unique high-end products.According to the retail sector on August 23, Lotte, Shinsegae, and Hyundai department stores began pre-order sales for Chuseok gift sets on August 14. Lotte Department Store is offering over 190 items, including meat, seafood, fruits, and groceries, at discounts of up to 50% until September 3. Customers purchasing food gift sets will receive up to 7% in L.POINT or Lotte gift certificates based on their purchase amount until September 23.Shinsegae Department Store is also running pre-orders for over 370 items until September 6, increasing the number of offerings by 25% compared to last year. SSG.com, the online platform for Shinsegae, will accept pre-orders until September 16. Hyundai Department Store is showcasing over 300 products, including Korean beef, dried fish, fruits, health foods, and alcoholic beverages, with some items discounted by up to 25% until September 3.Convenience stores are differentiating their offerings by expanding price ranges. They are maintaining budget-friendly gift sets priced between 10,000 and 50,000 won while also introducing unique items costing millions of won.CU has prepared over 710 types of Chuseok gifts this year, with the most expensive being a humanoid robot priced at 31 million won that walks on two legs. GS25 is also featuring a robot as a Chuseok gift, a social robot named 'Social Robot Riku' that recognizes users' expressions, voices, and gestures, priced at 5.5 million won.Seven Eleven is selling keychains, card wallets, glassware, suitcases, and tumblers featuring the Hello Kitty intellectual property. Emart24 has created small packaged Korean beef sets targeting individuals spending the holiday alone.The retail industry's early marketing efforts for Chuseok are influenced by the earlier holiday date and prolonged high inflation. This year's Chuseok falls on September 25, more than ten days earlier than last year's October 6. With a shorter preparation period, the competition for consumer pre-orders has intensified.An industry insider noted, "As inflation continues, more consumers are considering pre-order discounts and membership benefits when preparing holiday gifts. Companies are also expanding pre-order benefits and enhancing product offerings to capture demand." 2026-08-23 12:28:00
  • Domestic Banks Report 13.8 Trillion Won in First-Half Net Profit, Down 6.4%
    Domestic Banks Report 13.8 Trillion Won in First-Half Net Profit, Down 6.4% This year, domestic banks reported a net profit of 13.8 trillion won for the first half, a decrease of 9 trillion won compared to the previous year. Although interest income exceeded 32 trillion won, marking the highest amount ever recorded for a half-year, significant valuation losses on securities due to rising interest rates impacted overall profitability.According to the Financial Supervisory Service's preliminary report on the first-half performance of domestic banks released on August 23, net profit for the first half of 2026 was 13.8 trillion won, down 9 trillion won (6.4%) from 14.7 trillion won in the same period last year.In terms of specific categories, domestic banks' interest income rose to 32.2 trillion won, an increase of 2.5 trillion won (8.3%) from the previous year. Interest-earning assets grew by 6.4% to 3,628.1 trillion won, contributing to a 0.04 percentage point increase in net interest margin (NIM).Conversely, non-interest income saw a significant decline. For the first half, non-interest income totaled 2.9 trillion won, down 2.3 trillion won (43.4%) from the previous year. The rise in market interest rates led to substantial valuation losses on securities, resulting in a 5.7 trillion won decrease in securities-related profits compared to the same period last year. However, profits from foreign exchange and derivatives surged from 2.7 trillion won to 5 trillion won, an increase of 86.8%, and commission income also rose by 18.0% to 3.3 trillion won, partially offsetting the losses from securities.Profitability indicators also worsened. The return on assets (ROA) for domestic banks fell to 0.65%, down 0.10 percentage points from the same period last year, while the return on equity (ROE) dropped to 8.89%, a decrease of 1.15 percentage points.The decline in net profit has raised concerns about asset quality. The delinquency rate for domestic banks rose from 0.44% at the end of 2024 and 0.50% at the end of last year to 0.56% by the end of June this year. Consequently, loan loss provisions for the first half increased to 3.5 trillion won, up 300 billion won (8.6%) from the previous year.Operating expenses also rose to 14.4 trillion won, an increase of 700 billion won (5.4%) from the same period last year. Personnel costs rose by 200 billion won to 8.5 trillion won, while material costs increased by 500 billion won to 5.9 trillion won.A Financial Supervisory Service official stated, "The prolonged geopolitical risks from the Middle East, expanding U.S. tariff policies, and expectations of further interest rate hikes have increased uncertainty, and the upward trend in delinquency rates continues. We plan to strengthen monitoring, particularly in vulnerable sectors, and continuously encourage banks to enhance their loss absorption capacity through provisions." 2026-08-23 12:24:10
  • People Power Party Criticizes Governments Plan for Future Response Fund
    People Power Party Criticizes Government's Plan for Future Response Fund 국민의힘은 23일 정부가 반도체 호황에 따른 추가 세수를 활용해 미래대응기금을 신설하겠다고 밝히자 "정부가 지금 해야 할 일은 빚을 갚는 것이지 새 통장부터 만드는 것이 아니다"고 지적했다. 최보윤 수석대변인은 이날 오전 국회에서 기자회견을 열어 "나랏빚이 1000조 원을 넘었다. 그럼에도 이재명 정부는 반도체 호황에 따른 세수와 지방교육재정교부금 개편 재원을 묶어 미래대응기금을 만들겠다고 한다"며 이같이 말했다. 최 수석대변인은 "규모는 100조 원에서 150조 원까지 거론된다"며 "액수가 얼마이든 국회의 견제를 벗어난 정권의 쌈짓돈 통장이 돼선 안 된다"고 강조했다. 먼저 미래대응기금에 대해 국회를 비켜가는 우회로가 될 우려가 크다고 우려했다. 그는 "현행 국가재정법상 기금은 주요항목 지출금액의 최대 30%까지 국회 의결 없이 정부가 자체 변경할 수 있다"며 "계획은 국회 심사를 거치지만 지출 단계에서는 정부 재량의 여지가 커진다"고 주장했다. 이어 "더불어민주당은 투명하고 내실 있게 집행하겠다고 하지만 말로 약속할 일이 아니다"며 "100조 원이 넘는 국민의 돈이라면 정부의 선의를 믿으라고 할 것이 아니라 국회의 견제를 법으로 보장해야 한다"고 했다. 아울러 "국가재정법은 초과 조세수입을 국채 상환에 우선 사용할 수 있도록 규정하고 있다. 문제는 강행규정이 아니다"이라며 "정부 의지만 있으면 빚 갚기를 뒤로 미룰 수 있는 구조"라고 비판했다. 그는 "적자성 국가채무는 이미 1000조 원을 넘어섰고, 국민연금 미적립부채 등을 포함해 산출한 광의의 국가부채(D4)는 GDP 대비 181%에 이른다"며 "호황기에 빚을 갚지 않으면 경기가 꺾이는 순간 다시 빚을 내야 한다. 그 청구서는 결국 미래 세대에게 돌아간다"고 질타했다. 이어 "미래대응기금이 정작 미래 세대에게 ‘미래부담기금’이 되는 역설"이라며 "정부는 법에도 없는 '추가세수'라는 말로 국채 상환 원칙을 우회할 것이 아니라 국가채무 감축 원칙부터 분명히 세워야 한다"고 했다. 또한 "기금의 자체 지출 변경 범위를 엄격히 제한하고, 대규모 지출 변경에는 국회의 사전 동의를 받도록 별도의 통제 장치도 마련해야 한다"며 "기금의 크기는 미래가 정할 일이지만, 견제의 크기는 지금 정해야 한다"고 덧붙였다. * This article has been translated by AI. 2026-08-23 12:24:00
  • Gwangmyeong Mayor Park Seung-won: Healthy and Happy Children Are the Start of Peace
    Gwangmyeong Mayor Park Seung-won: Healthy and Happy Children Are the Start of Peace Park Seung-won, the mayor of Gwangmyeong, emphasized on August 22 that "the health and happiness of all children is the beginning of peace."On this day, Mayor Park held the 13th Gwangmyeong City Community Child Center Children and Youth Festival at the Gwangmyeong Citizens' Gymnasium, engaging directly with children in a manner suited to their level.The event created a space for children from local community centers to play freely, communicate, and nurture their dreams.Approximately 900 participants, including children from local community centers and their guardians, enjoyed the festival together.This festival was designed not just as an event but as an opportunity for children to take center stage, interact, collaborate, and connect with the community.The celebration began with performances prepared by the children from the community centers, followed by a musical show and a comedy act, filling the venue with laughter and cheers.In particular, the cheerful sports day allowed children to participate in various physical activities, emphasizing cooperation, consideration, and support for friends over competition.As the event progressed, random play and traditional games brought children and participants together, enhancing the festival's significance. The event concluded successfully with awards for outstanding teams.Mayor Park has consistently highlighted the importance of creating a city where children can grow up safely and happily, emphasizing inclusivity so that no one is left behind.During this festival, he aimed to connect with children and listen to their voices and dreams from the community center.Community child centers serve as a vital safety net in the community, providing after-school care, education, and cultural and experiential activities for children in need.Building on this local care foundation, Mayor Park continues to foster solidarity and support from the community to ensure that children can grow up healthily, regardless of their home environment or economic conditions.One participant remarked, "It was wonderful to see the children not just watching the programs set up by adults but actively performing and enjoying themselves. The mayor's engagement with the children was also impressive."Another citizen stated, "Creating an environment where children can grow up happily is ultimately about building the future of Gwangmyeong. I hope the atmosphere of the community centers, schools, and local community caring for children continues."Meanwhile, Mayor Park stated, "I will strengthen collaboration with the community to ensure that children can grow up safely and happily." He added, "I will continue to communicate to create a Gwangmyeong where each child can freely pursue their dreams and have their voices reflected in the administration."* This article has been translated by AI. 2026-08-23 12:20:00