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Delay in '8-Week Rule' Leads to Deteriorating Auto Insurance Profits The introduction of the so-called 8-week rule to manage long-term treatment for minor injury patients has been delayed, leading to increased losses in auto insurance. With seasonal factors expected to continue worsening the loss ratio in the second half of the year, forecasts indicate that an annual deficit is unavoidable.According to the insurance industry on July 26, the operating loss for auto insurance among non-life insurers in the first half of this year was 189 billion won, a deterioration of over 200 billion won compared to the same period last year (30.2 billion won). This marks the first deficit in the first half of the year since 2020, when it recorded a loss of 126.2 billion won.The loss ratio for auto insurance increased in the first half of the year, negatively impacting profitability. The cumulative loss ratio for the four major insurers—Samsung Fire & Marine, Hyundai Marine & Fire, DB Insurance, and KB Insurance—averaged 84.5%, up 1.9 percentage points from the same period last year.Although auto insurance premiums were raised by over 1% at the beginning of the year, the effect on premium income has been limited due to reductions in premiums over the past four years. In contrast, costs associated with auto repair fees, parts, and wages for temporary workers have continued to rise, increasing the burden of the loss ratio.Industry insiders cite the long-term treatment of minor injury patients and certain over-treatment practices as major factors exacerbating the loss ratio. As long-term treatment continues at traditional Korean medicine hospitals and clinics, the frequency of high-cost treatments and bundled billing has increased, leading to larger payouts.In fact, the average cost of Korean medicine treatment per minor injury patient among the four major non-life insurers last year was 1.083 million won, nearly three times higher than the cost of Western medicine treatment (355,000 won). Of the 817.4 billion won spent on outpatient Korean medicine, the proportion of patients receiving six or more of eight specific treatments—such as acupuncture, moxibustion, cupping, herbal injections, and chiropractic care—was 64.4%.As a result, the insurance industry is eager for the prompt implementation of the 8-week rule. This rule stipulates that when a minor injury patient requires treatment beyond eight weeks following a traffic accident, a specialized review committee will assess the appropriateness of the treatment.An industry official stated, In the second half of the year, the loss ratio is likely to worsen further due to seasonal factors and rising costs, so an annual deficit is expected. The longer the implementation of the 8-week rule and other regulatory improvements are delayed, the longer the recovery of auto insurance profits will take.* This article has been translated by AI. July 26, 2026 14:32 -
KAMA Reports Strong Recovery in Domestic Auto Sales Driven by Imported Electric Vehicles The automotive market in South Korea is expected to see domestic sales surpassing 1.7 million units this year, driven by the impact of new car models, despite concerns over a slowdown in exports. This marks the first time since 2023 that domestic sales have exceeded 1.7 million units.According to the Korea Automobile Mobility Industry Association (KAMA) on July 26, the organization analyzed the first half of 2026s performance in domestic sales, exports, and production, along with projections for the second half.In the first half of the year, domestic sales reached 851,000 units, a 1.3% increase compared to the same period last year. The growth in domestic sales was largely driven by imported vehicles.Sales of domestic cars fell by 4.8% to 658,000 units, while imports surged by 30% to 193,000 units, thanks to electric vehicle brands like Tesla and BYD.Notably, electric vehicle sales soared by 113.6% year-on-year, totaling 198,509 units. The share of electric vehicles in the market rose from 11.1% last year to 23.3% this year.When including hybrid electric vehicles (HEVs) and fuel cell electric vehicles (FCEVs), total sales of eco-friendly vehicles reached 491,498 units, marking a 27.1% increase during the same period. The overall share of eco-friendly vehicles rose from 46.1% to 57.8%.KAMA anticipates that the growth in domestic sales will accelerate in the second half of the year, projecting sales to reach 865,000 units, a 2.7% increase from last year, bringing the annual total to 1.71 million units. This would be the first time since 2023 (1.75 million units) that domestic sales have exceeded 1.7 million.The continued growth of eco-friendly vehicles is expected in the second half, with KAMA highlighting the anticipated impact of new models such as the Hyundai Tucson, Avante, Santa Fe, and Genesis hybrid models.In the first half, exports increased by 2.1% to 1.441 million units. The share of eco-friendly vehicle exports rose from 30.0% last year to 37.0%.HEV exports totaled 379,000 units, a 28.5% increase from last year, driven by an expanded lineup including the Staria and Grand Koleos.Electric vehicle exports also grew by 20.6% to 155,000 units, supported by new models such as the Kia EV3, EV4, and EV5, as well as the purpose-built mobility (PBV) PV5.However, for the second half, exports are projected to decline by 0.3% year-on-year to 1.32 million units due to high inflation and interest rate hikes in major countries. The annual forecast for exports is a 0.9% increase to 2.76 million units.Production saw a slight decrease of 0.1% in the first half, but is expected to rebound by 1.5% in the second half due to recovery from production disruptions and the launch of key new models. The annual production forecast is a 0.7% increase to 4.13 million units.* This article has been translated by AI. July 26, 2026 10:04
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Kia Confident in Annual Profit Target Amid Hybrid Expansion and EV Incentive Strategy Kia has expressed confidence in maintaining its annual performance targets despite external uncertainties such as U.S. auto tariffs and rising raw material costs. The company plans to enhance profitability through increased hybrid vehicle sales while opting not to expand electric vehicle (EV) incentives in Europe.Kim Seung-jun, Executive Vice President of Kias Finance Division, stated during a conference call on July 24 following the second quarter earnings report, We believe we can achieve our targets of 3.35 million wholesale sales, 3.31 million retail sales, and an operating profit of 10.2 trillion won set during our Investor Day earlier this year, adding, We expect about 10% growth in the second half compared to last year. Kia reported a record consolidated revenue of 33.037 trillion won for the second quarter, achieving both the highest revenue and the most sales in a single quarter. During this period, global wholesale sales reached 851,639 units, while retail sales totaled 839,000, marking increases of 4.5% and 5.8%, respectively, compared to the same period last year.Kim noted, While global automotive demand has decreased by 3.8% year-on-year, Kias global sales have grown by about 6%, and our market share in the first half reached a record high of 4%. Sales are increasing evenly across most regions, not just in specific areas. The EV sales incentives previously expanded in the European market were described as a strategic choice to secure market share. Kia increased incentives for its mid-range EV models, including EV2, EV3, EV4, and EV5, with average incentives exceeding 1,000 euros in Europe and about $400 per vehicle in the U.S.Kim emphasized, It was important to secure market share even if it meant sacrificing some profitability in EVs to compete with Chinese manufacturers. There were expectations for further incentive expansions in the second half, but that will not be the case. Regarding concerns over declining profitability due to increased EV sales, he expressed confidence that the growth in hybrid sales would sufficiently offset this. In the second quarter, the share of domestic EV sales reached 24.5%, while in Europe, it rose to 35%, but hybrid sales are also increasing rapidly.Kim stated, Hybrids have about 1.5 times the profitability of internal combustion engines. Even as EV sales increase, the share of hybrids is also expanding, allowing us to maintain overall profitability. Kia plans to increase production of the Telluride hybrid at its Georgia plant and to begin mass production of the Sportage hybrid at the Hyundai Motor Group Metaplant America (HMGMA) to boost sales. The company also anticipates that the impact of rising raw material prices, identified as a performance burden, will ease starting in May.The future mobility business will proceed as scheduled. Kia confirmed that there will be no changes to the timelines for developing software-defined vehicles (SDVs) and autonomous driving technology. The company plans to unveil a concept vehicle next year, with the launch of SDVs expected in early 2028 and the completion of Level 2++ autonomous driving technology by the end of that year.Additionally, Kim mentioned the data center planned for construction in Saemangeum, North Jeolla Province, stating, It will be a key asset for collecting and training data for autonomous driving and robotics. It will be operated as a joint asset of the group, not just Kia. July 24, 2026 16:36
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Editorial: Super-weak yen is Korea's problem too The yen has just done something it hasn't done in 40 years: it broke past 163 to the dollar, a level not seen since 1986. In Tokyo, that's being read as bad news for Japanese households, who now face pricier imports and a shrinking real income. But Seoul shouldn't be watching this from the sidelines. A weaker yen doesn't just weaken Japan's currency — it chips away at Korean export competitiveness and drags the won down with it. The won has been softening against the dollar too, but the yen is falling faster. That's the awkward part. Even as the won loses value, Korean goods are somehow becoming less price-competitive relative to Japanese ones. Korean firms are stuck importing oil, gas and raw materials in expensive dollars, while fighting for market share abroad against Japanese rivals who get a built-in discount from their own currency's collapse. It's a cost squeeze and a competitiveness squeeze at the same time. This isn't confined to a couple of legacy industries. Korea and Japan go head-to-head across autos, steel, machinery and petrochemicals, but also in semiconductor equipment, batteries, robotics and defense manufacturing — precisely the sectors both countries are betting their industrial futures on. A prolonged weak yen lets Japanese firms either cut export prices or plow their currency-driven windfall into R&D and capital investment. Korean firms, facing the same global buyers, are left choosing between defending market share by cutting margins or protecting margins by ceding orders. Smaller exporters, with the least room to absorb either option, take the hardest hit. Some argue Korean firms have closed the technology gap enough that yen weakness doesn't sting the way it once did. That may be true in segments where design and quality dominate. But in auto parts, machinery and materials — industries won on price as much as performance — an exchange-rate gap translates directly into lost orders. If a Japanese supplier can offer a comparable part for less, the incentive for a buyer to choose Korea shrinks accordingly. There's a second-order effect, too. Won and yen tend to move together as "Asian currencies" in the eyes of global investors. When the yen keeps sliding, foreign capital is more inclined to treat the won as part of the same weak-currency basket and sell accordingly — a dynamic that only intensifies if global financial markets turn volatile. A weaker won might sound like a small silver lining for exporters, but the costs outweigh the benefit. Import prices for oil, gas and grain rise, corporate foreign-currency funding gets more expensive, and a fragile consumption recovery gets harder still as living costs climb. This also complicates the Bank of Korea's job considerably. Domestic conditions argue for lower rates, but a weakening won and rising import prices argue against moving too quickly. Hold rates too high for too long to defend the currency, and households, the self-employed and small businesses absorb the interest burden instead. Super yen weakness is narrowing Korea's monetary policy options from both directions at once. The government's response can't stop at currency intervention. Smoothing out disorderly swings in the foreign exchange market is a stopgap, not a fix — it does nothing to close the underlying competitiveness gap. What's needed is a sector-by-sector look at where the yen shock is hitting hardest, along with expanded exchange-rate insurance and policy financing, particularly for smaller exporters heavily exposed to raw material imports. More fundamentally, Korean industry needs to build a structure that isn't so easily rattled by currency swings in the first place. While Japanese companies redirect their yen-driven profits into technology and capacity, Korean firms shouldn't be left boxed in by high interest rates, regulation and a sluggish domestic market. Without gains in core technology and productivity, the competitiveness gap will outlast the currency cycle that exposed it. A won that's weak, paired with a yen that's weaker still, is about the worst combination Korea could face right now — rising import costs, falling export competitiveness, and a monetary policy squeezed by currency instability on both sides. Super yen weakness shouldn't be filed away as a Japanese problem. It's a compound risk to the Korean economy, and it calls for action now, not after the fact. July 24, 2026 13:25 -
Hyundai Mobis posts record Q2 profit SEOUL, July 24 (AJP) - Hyundai Mobis announced that its second-quarter operating profit climbed 12.1 percent from a year earlier to 975.2 billion won ($665.7 million), as brisk sales of high-margin electronics components and a resilient after-sales parts business carried the auto parts maker. According to preliminary regulatory filings released Friday, revenue rose 2.4 percent to 16.32 trillion won, while net profit advanced 13.5 percent to 1.06 trillion won. Measured against the first quarter, the gains were sharper still — operating profit jumped 21.5 percent and net profit 20.1 percent. A richer product mix and company-wide cost discipline drove the improvement, Hyundai Mobis said. Electrification revenue slipped modestly on lower output at some automaker customers and memory chip costs remained a burden, but stronger sales to overseas carmakers and expanded shipments of high-value electronics parts more than offset the drag. The supplier spent 950.8 billion won on research and development in the first half, about 44 percent of its 2.16 trillion won annual plan, and booked $740 million in orders from global clients. "Some orders were delayed in the first half due to customers' strategy changes and a slowdown in the electrification market, but we plan to focus on securing first-time orders with new products and new customers to raise the quality of our order book," said a Hyundai Mobis spokesperson. The company declared an interim dividend of 1,500 won per share, with a record date of Aug. 10. It bought back about 910,000 shares worth 500 billion won between May and July, all of which are scheduled to be cancelled in August. Shares of Hyundai Mobis traded at 494,500 won per share at 10:35 a.m., down by 5.73 percent from the previous session. July 24, 2026 10:40 -
AI Innovations Transform Laundry Services at Rundigo Rundigo, a contactless laundry service operated by the startup Living and Clothing Company, is rapidly improving its operations by integrating artificial intelligence (AI) and automation technology across all processes. By replacing manual tasks with AI and robots, productivity has significantly increased, leading to improved financial performance.According to industry sources, Rundigo is actively incorporating AI into its services. When customers place their laundry in collection bags, the QR code retrieves their registered information instantly through the application. A camera above the work table captures images of the laundry, allowing AI to automatically recognize items and compare them with the customers order, including any specific requests. This system has reduced the laundry intake time by over 60%.In January 2024, Rundigo developed the worlds first one-touch laundry RFID technology, eliminating the need for laundry barcodes. During the registration and inspection stages, RFID tags automatically identify each customers laundry, allowing for damage-free management and increased processing speed compared to the previous method of attaching customer information with staples.The accumulated data also enhances competitiveness. Rundigo continuously collects and analyzes information on the brands, designs, materials, and washing histories of customers clothing to understand individual laundry patterns and preferences.Rundigo has also automated the bundling process for dry cleaning and regular laundry. Previously, dry cleaning items were hung for transport, while larger items like blankets required manual bundling, creating inefficiencies. After a 10-month pilot program at its smart factory in Gunpo, Rundigo commercialized its autonomous bundling robot system in October of last year.The shirt washing line has been automated as well. Workers insert the shirt sleeves into a machine and press a button, completing the sleeve ironing in about 15 seconds. A separate device then presses the chest area to remove wrinkles. The Gunpo smart factory processes approximately 3,000 shirts daily, increasing production efficiency by over 20%.Rundigos B2B division, Rundigo Hotel and Business, has introduced the Towel Auto Stacker at its smart factory in Paju. After workers place freshly laundered towels in the loading zone, the robot automatically unfolds and stacks them.The equipment, developed by Technics based on the accumulated laundry processes and clothing and towel data from Living and Clothing Company, has increased productivity to over 800 towels per hour, approximately 2.5 times higher than before.Operational efficiency through AI and automation has also led to improved financial results. In April, Living and Clothing Company achieved its first monthly operating profit since its establishment. Rundigo, its flagship service, recorded a 15% operating profit margin, supported by a subscription model and stable demand for regular laundry services.The focus on profitability is yielding results. Living and Clothing Company reported annual sales of 63.5 billion won in 2025, with operating losses reduced by about 8.5 billion won compared to the previous year, marking a 40% improvement. From January to April this year, cumulative sales reached 22.5 billion won, a 10% increase from the same period last year, while operating losses decreased by 77%. As this trend continues, expectations for an annual profit turnaround are growing.A representative from Living and Clothing Company stated, We plan to enhance quality based on customer laundry data while integrating AI technology into our smart factory to improve operational efficiency. Through this, we aim to strengthen our competitiveness as a comprehensive laundry tech company and achieve annual operating profit this year. July 23, 2026 19:04
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Trump's tariff maze keeps Korea guessing as another deadline looms SEOUL, July 23 (AJP) - For U.S. trading partners—foes and allies alike—it has become nearly impossible to keep up with tariff rates during President Donald Trump’s second term. The levy on South Korean imports has swung from 25 percent to 10 percent, back toward 25 percent, down to 15 percent and then back again to 10 percent — all in little more than a year. The next number could be 12.5 percent. A temporary 10 percent U.S. surcharge on imports from South Korea and most other trading partners expires at 12:01 a.m. Eastern time on Friday. The Trump administration is preparing to replace it with tariffs imposed under Section 301 of the Trade Act of 1974, citing the alleged failure of dozens of economies to block imports made with forced labor. South Korea has been provisionally placed among economies facing a proposed 12.5 percent tariff, rather than the 10 percent rate reserved for countries judged to have stronger or partial restrictions on forced-labor imports. U.S. Trade Representative Jamieson Greer told lawmakers Wednesday that the final action could be released as soon as Thursday. If the proposal is adopted with similar product coverage, the additional tariff burden on many Korean exports would rise by 2.5 percentage points overnight. "It is at least somewhat reassuring that most of our major competitors fall into the same group subject to the 12.5 percent tariff," Rep. Park Sun-won of the Democratic Party, a former first deputy director of South Korea's National Intelligence Service, told AJP. "South Korean companies are fighting for survival to secure an edge over their overseas rivals." South Korean Industry Minister Kim Jung-kwan traveled to Washington this week for meetings with senior U.S. officials as Seoul sought to preserve the 15 percent tariff ceiling negotiated last year and prevent another increase in the cost of accessing its second-largest export market. Yet the constantly shifting tariff rates tell only part of the story. Economists interviewed by AJP said Trump's tariffs are reshaping U.S. political coalitions, raising costs for American businesses and households, fragmenting global trade and steadily eroding confidence in agreements reached with Washington. "The tariffs have reshaped voter coalitions," said Kevin Milligan, professor of economics at the University of British Columbia. "Farm states like Iowa have suffered because their inputs — machinery, potash and other supplies — have become more expensive," he said. "Their agricultural exports have suffered from counter-tariffs imposed by other countries." "This has eroded President Trump's support in states like Iowa that have been heavily affected." Trump's first major blow to South Korea's export economy came through automobiles. On March 26, 2025, Trump invoked Section 232 of the Trade Expansion Act, a national security provision, to impose a 25 percent tariff on imported automobiles and selected parts. The vehicle tariff took effect on April 3, followed by covered auto parts on May 3. Automobiles are among South Korea's largest exports to the United States, making the measure particularly consequential for Hyundai Motor, Kia and their extensive network of suppliers. Days later, Trump unveiled his "Liberation Day" trade program, imposing a 10 percent baseline tariff on most imports while assigning higher country-specific reciprocal tariffs to dozens of trading partners. South Korea received a 25 percent rate despite the Korea-U.S. Free Trade Agreement having eliminated duties on most bilateral merchandise trade. The 10 percent baseline took effect on April 5, while South Korea's 25 percent reciprocal tariff formally began on April 9. It survived for barely a day. After global financial markets tumbled and governments pressed Washington to negotiate, Trump suspended the higher country-specific tariffs for 90 days. Beginning April 10, eligible South Korean products were again subject to a 10 percent tariff rather than 25 percent. The reciprocal tariff never applied universally. Automobiles, steel, aluminum and other products already covered under Section 232 remained outside the measure, as did semiconductors, pharmaceuticals, energy products and several other categories. That distinction remains crucial because there has never been a single tariff rate covering every South Korean export. Trump escalated his metals policy in June 2025 by doubling Section 232 tariffs on many steel and aluminum products to 50 percent. Washington later introduced more differentiated treatment, allowing some Korean steel and aluminum derivative products to receive a 15 percent tariff floor beginning in June 2026 while core metal products continued to face rates as high as 50 percent. The original 90-day pause was due to expire in July 2025. Trump instead extended negotiations until Aug. 1 while warning South Korea that the 25 percent reciprocal tariff would return unless the two governments reached an agreement. A preliminary deal emerged on July 30. Washington agreed to reduce the threatened tariff to 15 percent. In return, Seoul pledged a $350 billion investment framework in the United States, including $150 billion linked to shipbuilding and another $200 billion for strategic industries. Trump and President Lee Jae Myung finalized the core terms during their October summit in Gyeongju. A joint fact sheet later stated that the United States would generally apply whichever was higher — the existing tariff or 15 percent — to qualifying South Korean products. The agreement also lowered total tariffs on South Korean automobiles, auto parts, timber and lumber to 15 percent. The stability proved temporary. On Jan. 26, Trump accused South Korea's National Assembly of moving too slowly to implement legislation supporting the investment package and declared that tariffs on South Korean automobiles, lumber, pharmaceuticals and other products would rise from 15 percent to 25 percent. The announcement included neither an implementation date nor a formal revision to the U.S. tariff schedule. Two days later, Trump said the two countries would "work something out," effectively leaving the 15 percent arrangement intact. For Seoul, the episode underscored that even a negotiated trade agreement backed by a massive investment pledge could be reopened through a presidential social media post. Milligan said that unpredictability may ultimately prove more damaging to the United States than the economic cost of any individual tariff. "I think the biggest long-run impact is the complete erosion of trust in 'deals' made with the United States," he said. "Canadians and many other governments have watched President Trump rip up commitments and walk away from solemn agreements." "Trust in the United States has forever been broken, and this will have serious long-term consequences because countries will hesitate to strike deals if they believe America's word can no longer be relied upon." The legal foundation of Trump's reciprocal tariff system collapsed on Feb. 20 when the U.S. Supreme Court ruled 6-3 that the International Emergency Economic Powers Act did not authorize the president to impose tariffs. The ruling invalidated the emergency-based tariff system under which South Korea had first faced a 25 percent tariff before negotiating it down to 15 percent. It did not affect tariffs imposed under separate authorities, including Section 232 measures covering automobiles and metals. Trump responded by invoking Section 122 of the Trade Act, allowing the administration to impose a temporary 10 percent import surcharge for up to 150 days beginning Feb. 24 and expiring Friday. Washington simultaneously began constructing a more durable replacement under Section 301, which authorizes trade action against foreign practices deemed unreasonable or burdensome to U.S. commerce. The Office of the U.S. Trade Representative opened investigations into 60 economies accounting for more than 99 percent of U.S. imports. Its June report concluded that South Korea had failed to adequately prohibit imports produced with forced labor and that the failure burdened U.S. commerce. Seoul has rejected the proposed 12.5 percent tariff as disproportionate, arguing that South Korea's labor protections, cooperation with the United States and bilateral trade commitments warrant different treatment. The investigation nevertheless illustrates the administration's ability to move from one legal authority to another — emergency powers, national security statutes, a temporary balance-of-payments provision and now an unfair-trade investigation — while keeping tariffs at the center of U.S. trade policy. Kenneth Rogoff, professor of economics at Harvard University and former chief economist of the International Monetary Fund, described the approach as an effort to use trade policy as an instrument of personal and political power. "Trump's weaponization of tariffs, and his use of them as a tool of individual power, will surely undermine U.S. leadership in the global economy over the long run," Rogoff said. "The inevitable balkanization of global trade will also undermine the dominance of the U.S. dollar." Costs for American companies and workers Trump has repeatedly argued that tariffs will revive manufacturing, encourage companies to build factories in the United States and reduce dependence on foreign supply chains. Milligan offered a sharply different assessment. "For the U.S. economy, there is nothing good," he said. "Manufacturing employment is down as exports suffer, while the cost of imported inputs such as Canadian aluminum has risen." U.S. manufacturing employment declined from about 12.64 million in June 2025 to 12.60 million in June 2026, according to seasonally adjusted Bureau of Labor Statistics data. Employment in motor vehicle and parts manufacturing fell by more than 21,000 over the same period. Tariffs designed to protect one domestic industry can simultaneously raise costs for downstream manufacturers using imported steel, aluminum and intermediate goods. Exporters may also face retaliation abroad, while households ultimately bear part of the burden through higher retail prices. David Laibson, the Robert I. Goldman Professor of Economics at Harvard University, summarized the impact succinctly. "U.S. tariffs have damaged the global trading system, hurting most U.S. households, most U.S. firms, and all U.S. trading partners." Rogoff said the tariffs had caused less macroeconomic damage than initially feared, although the longer-term structural risks remained significant. "The effects on the U.S. economy have been relatively modest," he said, adding that Trump's immigration crackdown, particularly on highly skilled workers, "will ultimately have a much greater impact." "The global economy has also proved surprisingly resilient despite the arbitrary nature of the tariffs and the broader erosion of confidence in U.S. global leadership." IMF projections reflect that combination of resilience and drag. The fund forecasts global growth of 3 percent in 2026 and 3.4 percent in 2027 while expecting world trade volume growth to slow from 5 percent in 2025 to 3.5 percent this year. "The broader global economy: the impact is bad, but not as bad as feared," Milligan said. "For Canada, which is the most dependent on U.S. trade, the impact has been much larger. But not for the world as a whole." A policy that may outlast Trump The political consequences are harder to isolate. Trump has simultaneously pursued sweeping changes in immigration, taxation, foreign policy and the federal bureaucracy, making it difficult to determine how much of his declining approval ratings can be attributed specifically to tariffs. "As for the political impact in the United States, he has taken so many dramatic actions that it is difficult to isolate any one policy as the dominant driver of his low approval ratings," Rogoff said. He nevertheless expects aggressive tariff policy to continue through the remainder of Trump's presidency and perhaps beyond. "I strongly expect Trump to continue to use tariffs aggressively for the next two and a half years," Rogoff said. "Frankly, things may not change that much after 2028, given that the Democratic Party is dominated by the hard left, who are very protectionist, while any Republican successor will likely need to embrace Trump's policies to secure his political support." For South Korea, the immediate question is whether Friday's expiring 10 percent surcharge will be replaced by the proposed 12.5 percent tariff, a modified rate with broader exemptions or yet another last-minute compromise. Today, the tariff facing a Korean exporter depends not only on the country of origin but also on the product itself, its tariff classification, its metal content and the particular U.S. trade law being invoked. The broader lesson extends well beyond tariff schedules. The Korea-U.S. Free Trade Agreement may continue to set the underlying tariff on most Korean products at or near zero, but it has not shielded exporters from additional duties imposed under U.S. domestic trade laws. Nor did Seoul's promise to invest $350 billion in the United States permanently settle the tariff question. After more than a year of threats, negotiations, court rulings and fresh investigations, the tariff on South Korean exports is once again no longer a fixed number. It is a moving target. July 23, 2026 17:24 -
Hyundai AutoEver Union Gains Majority Membership Within Two Weeks of Formation The Hyundai AutoEver labor union, which was established on July 8, has secured a majority of its members within just two weeks. With more than half of the companys employees joining, the union is expected to have increased influence in upcoming negotiations regarding wages and collective agreements.As of July 23, the union reported that its membership has exceeded 3,000. According to Hyundai AutoEvers semi-annual report submitted to the Financial Supervisory Service, the company had approximately 5,760 employees as of the end of March, meaning the unions membership represents more than half of the total workforce.Being recognized as a majority union allows it to secure representation in collective bargaining with the employer, giving it an advantage in negotiations over wages and working conditions.Analysts suggest that the rapid growth of the Hyundai AutoEver union is influenced by accumulated dissatisfaction within the company. At its inception, the union outlined key demands, including transparency in evaluation and compensation criteria, the establishment of objective evaluation standards, the necessity for labor-management agreements during system changes, and guarantees of job security based on trust in personnel management.Internal sources indicate that dissatisfaction among employees has increased due to organizational changes implemented since Ryu Seok-moon took over as CEO. Concerns have been raised about insufficient communication with existing staff during changes in work systems, development methods, and organizational direction. Ryu, who previously served as Chief Technology Officer at Socar, was appointed as CEO of Hyundai AutoEver in January.A Hyundai AutoEver insider stated, It appears that a combination of factors, including average wage increase rates, changes in remote work policies, executive compensation controversies, and issues regarding the fairness of performance evaluations, have contributed to the situation.Hyundai AutoEver, an IT service company affiliated with the Hyundai Motor Group, has been regarded as having a stable organizational culture. However, there has been a growing interest among employees in performance-based compensation and organizational management practices, leading to a rise in union formation movements.Unionization efforts are also continuing in the system integration (SI) industry. Earlier, the Samsung SDS union gained majority membership shortly after its formation, drawing industry attention. A Hyundai AutoEver representative stated, The company will comply with relevant laws and maintain communication in labor-management relations. July 23, 2026 15:08
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Kia Sportage Ranks First in German SUV Comparison Kias compact sport utility vehicle (SUV) Sportage has secured the top spot in a comparison evaluation conducted by a leading German automotive magazine, surpassing its competitors.According to Kia, the Sportage achieved a total score of 541 points in the recent compact SUV comparison by Auto Motor und Sport, earning the overall first place.Auto Motor und Sport is considered one of Germanys top three automotive magazines, alongside Auto Bild and Auto Zeitung. This prestigious evaluation is influential in shaping European consumers purchasing decisions.The assessment compared the Sportage with the Mazda CX-5, Ford Kuga, and Citroën C5 Aircross across seven categories: body, safety, convenience, powertrain, driving performance, environmental friendliness, and cost.The Sportage received the highest scores in four categories: body, convenience, powertrain, and driving performance, culminating in its overall score of 541 points. It outperformed the Mazda CX-5 and Ford Kuga, which both scored 535 points, and the Citroën C5 Aircross, which scored 533 points.Notably, in the body category, the Sportage was praised for its superior material quality, finish, spacious interior, and intuitive physical button controls, earning a top score of 96 points.In the powertrain category, the Sportage was recognized for its strong acceleration performance, achieving a time of 6.8 seconds to accelerate from 80 km/h to 120 km/h, earning the highest score of 83 points.For driving performance, the Sportage was commended for its stable body dynamics, comfortable ride quality, and agile cornering, receiving a score of 70 points, the highest in this category. Its braking performance was also impressive, with a stopping distance of 36 meters from 100 km/h, surpassing all competitors.A Kia representative stated, The Sportage has been a beloved model in the European market, making this evaluation result even more significant. Meanwhile, the Sportage continues to enjoy steady popularity in the local market, with approximately 149,000 units sold in Europe last year, according to the European Automobile Manufacturers Association (ACEA). Recently, Kia launched the 2026 model year Sportage, enhancing its appeal.* This article has been translated by AI. July 23, 2026 09:16
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Test Drive: 2026 Ford Expedition Offers Smooth Ride Despite Its Size Overwhelming size, surprisingly smooth ride. The Ford Expedition, a leading American sports utility vehicle (SUV), has returned with a fully redesigned fifth generation. It showcases the appeal of a full-size American SUV with its hefty body and comfortable driving experience.On July 22, the all-new Ford Expedition was encountered at the Signiel parking lot in Songpa, Seoul. True to its name, it embodies the spirit of exploration. Its imposing size commanded attention, making the transition from the underground parking lot to the main road feel like an adventure.The Ford Expedition is a full-size SUV measuring over 5 meters in length. Similar in size to the Cadillac Escalade, which was launched in South Korea last year, it presents a formidable presence.Upon taking the drivers seat, the first thing that stood out was the elevated front visibility. The steering wheel and pedal positions were adjustable to fit various body types. A 24-inch panoramic digital display was prominently positioned in front, allowing for seamless integration with smartphones to use familiar navigation apps like KakaoMap. The central display provided real-time information about the vehicles surroundings and key situations.During an 80-kilometer round trip to Namyangju, Gyeonggi Province, the interior remained quieter than expected despite the rain. Noise from the road and raindrops was not overly intrusive.On the highway, the power and strength typical of American cars were evident. The model is equipped with a 3.5-liter EcoBoost high-output V6 engine that delivers 446 horsepower and 70.5 kg·m of torque, paired with a 10-speed automatic transmission. Pressing the accelerator made it easy to forget the vehicles size as it accelerated powerfully.On downhill stretches, the hill descent control function maintained speed without frequent braking. The auto hold brake feature, uncommon in American vehicles, proved useful in congested urban driving.At the turnaround point, the Expeditions signature split gate caught the eye. When the trunk was opened, the upper door acted as a makeshift canopy to shield from the rain, while the lower door could be used as a bench or table. This design clearly considered outdoor activities like camping and car camping.Spacious interior space is another advantage. The seven-passenger model is well-suited for family travel and recreational activities. As one approaches the vehicle, the electric side steps automatically extend to assist with entry and exit.Having sold over 3 million units worldwide in its 30-year history, the Ford Expedition remains a best-seller. The fifth-generation model enhances its existing popularity and practicality while further improving recreational utility and driving convenience. Although the test drive was brief, it was sufficient to appreciate the unique comfort and appeal of an American full-size SUV.* This article has been translated by AI. July 23, 2026 00:04
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Hyundai Strike Causes Billions in Losses as Auto Industry Faces Labor Disputes Hyundai Motor Companys labor union has initiated a strike, resulting in an estimated loss of billions of won in revenue. The auto industry is experiencing a significant labor dispute, referred to as summer struggle.As of July 22, the Hyundai union has been conducting a partial strike for three days, working four hours each day. This follows a previous strike from July 13 to 15, where workers struck for two hours each day, and the duration was extended to four hours starting July 20.Technical staff, divided into morning and afternoon shifts, are participating in the strike, leading to a total of 36 hours of halted production during the strike period this year.The estimated revenue loss due to the strike is in the billions of won. Industry analysts estimate that the production disruption amounts to about 430 vehicles and 18.7 billion won per hour, resulting in approximately 15,800 vehicles and a total loss of 673 billion won over the 36-hour strike.The impact extends to suppliers, as the just-in-time production system minimizes inventory of products and parts. When the assembly line stops, parts manufacturers are also affected.Despite the significant losses, labor-management negotiations remain at a standstill. The company proposed a third negotiation plan on July 8, which included an increase of 89,000 won in monthly base salary, a performance bonus of 350% plus 10 million won, and 15 shares of stock. However, no further negotiations have taken place since then.The union plans to hold a central countermeasure committee meeting on July 23 to discuss the possibility of additional strikes. If the company does not present a new negotiation proposal, the strike is expected to continue.Other automakers are also ramping up their labor actions. Korea GM and its labor union are set to conduct their 17th negotiation for a wage and collective agreement today, coinciding with a four-hour partial strike by the morning shift. Renault Korea is scheduled to hold labor negotiations on July 23 and is likely to engage in strike actions as it has already met the legal requirements for a strike.* This article has been translated by AI. July 22, 2026 13:40
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Auto Insurance Loss Ratio Rises to 84.5% in First Half of 2026 The auto insurance loss ratio for the first half of 2026 has increased compared to last year. Concerns are growing that the loss ratio will continue to worsen in the second half due to rising claims costs and an expected increase in accidents during the rainy season.According to the non-life insurance industry on July 22, the cumulative loss ratio for the four major auto insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—was recorded at 84.5% for the first half of the year, up 1.9 percentage points from the same period last year.The loss ratio for June also rose by 1.9 percentage points year-on-year to 83.6%.The limited increase in auto insurance premiums earlier this year, coupled with rising claims costs, is seen as a contributing factor to the worsening loss ratio.Industry experts predict that the burden of the loss ratio will persist in the second half. The likelihood of increased vehicle flooding, falling object accidents, and traffic accidents on wet roads during the summer rainy season is significant. Additionally, rising vehicle maintenance costs and wages for temporary workers continue to drive up claims costs. As a result, annual losses in auto insurance are anticipated.An industry official stated, Given the various factors driving up the costs of auto insurance, the loss ratio is expected to continue to deteriorate. Improvements to systems such as the 8-week rule to prevent claims leakage need to be implemented promptly.* This article has been translated by AI. July 22, 2026 10:28
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KB Insurance Eliminates Family Relationship Certificate Requirement for Policy Enrollment and Claims Customers will no longer need to issue and submit family relationship certificates during the insurance enrollment and claims process. KB Insurance is the first to implement this service, with other major insurers set to follow suit.The Korea Life Insurance Association, the General Insurance Association of Korea, and the Korea Credit Information Corporation announced on July 21 that they will automate the submission of documents required for insurance enrollment, maintenance, and claims by utilizing family relationship certificates through public mydata.Public mydata is a service that electronically provides personal information held by administrative agencies to financial companies with user consent. The scope of this service has been expanded to include family relationship certificates, in addition to 35 other types of documents such as resident registration and vehicle registration.As a result, customers will no longer need to submit separate documents for family discounts, child rider provisions in auto insurance, changes to policyholders and beneficiaries, and verification of insured individuals under family liability insurance. The child rider provision in auto insurance can offer discounts of up to 23.2%, depending on the insurer and enrollment conditions.KB Insurance has implemented this service as the first in the industry, applying it to claims assessments requiring family relationship verification since July 15. The service will be expanded to include child discount provisions in auto insurance and limited driver provisions by the end of this month.Samsung Fire & Marine Insurance, Samsung Life Insurance, NH Nonghyup Life Insurance, and DB Insurance are also set to introduce the service sequentially from August to October. If all insurers participate, it is expected to reduce the burden of submitting approximately 3 million family relationship certificates annually.* This article has been translated by AI. July 21, 2026 15:36
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Trump Imposes 50% Tariff on Canadian Goods, Signals New Trade War President Donald Trump has activated Section 338 of the Tariff Act for the first time, imposing a 50% additional tariff on certain Canadian products. With the 10% global tariff set to expire on July 24, a new Section 301 tariff is also expected to be announced soon, indicating a potential resurgence of the trade war initiated by Trump.According to reports from Politico and other political outlets on July 20, Trump signed three proclamations imposing a 50% additional tariff on select Canadian goods under Section 338 of the Tariff Act of 1930. The new tariffs will apply to Canadian products such as wine, honey, textiles, fishing rods, jewelry, and furniture, taking effect on August 19. Unlike previous tariffs on Canada, products covered under the United States-Mexico-Canada Agreement (USMCA) will not be exempt.This marks the first time Section 338 has been used to impose tariffs. This provision allows for tariffs of up to 50% on countries that discriminate against U.S. trade, without needing congressional approval, although the U.S. government must first confirm the discriminatory practices.The Trump administration has criticized Canada for retaliating against U.S. tariffs on steel and aluminum and for restricting the sale of U.S. alcoholic beverages. Canada’s supply management system, which limits imports of U.S. dairy products, and caps on auto exports from companies that moved production facilities to the U.S. have also been labeled as unfair practices.Jamieson Greer, the U.S. Trade Representative (USTR), stated, Canada continues to retaliate against U.S. efforts to restore trade balance and protect national security-related industries, unlike other trading partners and allies.This action comes amid ongoing negotiations to amend the USMCA. Ryan Majerus, a partner at the international trade law firm King & Spalding, noted that this appears to be a move to gain leverage in the current USMCA negotiations between the U.S. and Mexico. Canadian Prime Minister Mark Carney issued a statement indicating that Canada would actively engage in discussions with the U.S. to resolve these issues.However, the imposition of new tariffs raises the possibility of reigniting the trade war. CNN reported that Trumps new 50% tariff on Canada poses a risk of triggering a new trade conflict.Section 301 Tariffs Expected SoonMeanwhile, the Trump administration is expected to restructure the global tariff system. Following a February ruling by the Supreme Court that deemed reciprocal tariffs based on the International Emergency Economic Powers Act (IEEPA) illegal, the 10% global tariff imposed under Trade Act Section 122 is set to expire on July 24. Tariffs under Section 122 can only be maintained for a maximum of 150 days without congressional approval.The administration is anticipated to replace this with tariffs under Section 301 of the Trade Act, which allows for tariffs in response to unfair or discriminatory foreign government policies and practices. The USTR has been pursuing Section 301 procedures based on forced labor and structural overproduction. A total of 16 entities have been identified for overproduction, and 60 for forced labor, with South Korea included in both categories.Regarding forced labor, a proposal has been made to impose a 12.5% tariff on certain countries, including South Korea. With public hearings already concluded, the USTR may announce a final plan as early as this week to coincide with the expiration of the global tariff. Specific proposals for overproduction tariffs have yet to be detailed, and it is unlikely that any decisions will be finalized before July 24 due to the need for public comment and hearings.For South Korea, the key issue is whether the 15% tariff cap established in the U.S.-Korea trade agreement will be maintained. If the 12.5% forced labor tariff is combined with overproduction tariffs, the total rate could exceed 15%. Last July, South Korea and the U.S. agreed to lower the tariff rate on South Korean products from 25% to 15% in exchange for South Koreas $350 billion investment in the U.S. Greer has indicated that the administration intends to respect the tariff cap, but how the final rates will be adjusted remains uncertain.Additionally, on the same day, President Trump signed a proclamation reducing import tariffs by half for companies investing in primary aluminum production facilities in the U.S. Companies approved by the Department of Commerce will only pay a 25% tariff on import volumes corresponding to their expected annual production from new facilities, down from the current 50%.* This article has been translated by AI. July 21, 2026 11:24
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Korea's July exports set 20-day record on chip strength SEOUL, July 21 (AJP) -South Korea is set to extend its record-setting export streak in July, with chip-led outbound shipments surging 52.3 percent in the first 20 days to a record $54.93 billion for the period, preliminary customs data showed Tuesday. Exports totaled $54.93 billion from July 1 to 20, while imports increased 20.0 percent from a year earlier to $42.72 billion, generating a trade surplus of $12.22 billion. Final monthly trade data will be released by the Ministry of Trade, Industry and Resources on Aug. 1. The export figure was the highest ever recorded for the first 20 days of July, surpassing the previous record of $36.9 billion set in 2024. Growth moderated from the first 20 days of June, when exports rose 60.2 percent to $61.92 billion. On a nominal basis, early July exports were 11.3 percent lower than during the comparable June period. July had 14.5 working days, one fewer than a year earlier. Adjusted for the calendar effect, average daily exports climbed 62.9 percent to $3.79 billion, accelerating from June's 49.7 percent increase. Semiconductor exports surged 180.6 percent from a year earlier to $22.11 billion. Chips accounted for 40.3 percent of total exports, slightly down from June's 41.2 percent share when semiconductor shipments reached $25.51 billion, but remained by far the country's largest export engine. Computer peripheral exports more than tripled to $2.04 billion. Shipments of ships, wireless communication devices and petroleum products rose 70.8 percent, 65.9 percent and 33.4 percent, respectively. Automobile exports fell 10.6 percent to $3.24 billion, while auto parts shipments declined 9.6 percent. Exports to China nearly doubled to $13.36 billion. Shipments to the United States rose 39.6 percent to $8.96 billion, while those to Vietnam climbed 82.4 percent to $6.21 billion. Exports to the European Union increased 30.3 percent, while shipments to Taiwan gained 41.8 percent. China, the United States and Vietnam together accounted for 51.9 percent of total exports. Imports reflected continued strength in the semiconductor sector. Semiconductor imports rose 54.9 percent to $6.50 billion, while imports of chipmaking equipment increased 56.9 percent to $2.15 billion. Crude oil imports climbed 27.5 percent, while imports of natural gas and coal rose 27.9 percent and 25.7 percent, respectively. Combined energy imports increased 27.4 percent. The trade surplus narrowed from $17.44 billion in the first 20 days of June as energy imports grew and exports eased from the previous month's exceptionally strong pace. Cumulative exports from Jan. 1 through July 20 rose 48.7 percent from a year earlier to $551.28 billion, while imports increased 17.1 percent to $401.37 billion. The cumulative trade surplus reached $149.91 billion. The Korea Customs Service said the preliminary figures may be affected by changes in the number of working days and remain subject to revision when the final monthly data are released. July 21, 2026 11:21