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Yen Hits 40-Year Low as Won Strengthens Amid Diverging Trends The value of the yen has fallen to its lowest level in nearly 40 years, while the won continues to strengthen, leading to a two-year low in the won-yen exchange rate. As the decoupling between the won and yen deepens, attention is focused on its impact on domestic companies price competitiveness and the financial market.According to financial sources on July 24, the yens exchange rate against the U.S. dollar was recorded at 163.785 yen, up 0.71 yen from the previous trading day as of 3:30 PM.On July 23, the yen reached as high as 163.986 yen during trading, marking its highest level since December 1986, a span of 39 years and 7 months. Considering that the yen-dollar exchange rate was around 75 yen in 2011, the yens value has effectively halved in 15 years.Amid rising international oil prices due to geopolitical risks surrounding Iran, assessments indicate that the Japanese governments response has remained limited to verbal interventions, failing to curb the yens decline. Concerns over deteriorating fiscal health due to the Takaiichi administrations expansionary fiscal policy have increased, and despite the Bank of Japan raising its policy interest rate to 1% last month, the gap with the U.S. benchmark rate (3.50-3.75%) remains significant, sustaining pressure on the yen.Kim Yu-mi, a researcher at Kiwoom Securities, explained, Despite the Japanese authorities caution regarding foreign exchange market interventions, expectations persist that the interest rate gap with the U.S. will remain for the time being, leading to a weaker yen against the dollar.In contrast, the won is showing strength. On July 24, the won-dollar exchange rate fell to 1,466.6 won, marking its lowest level in about two and a half months since May 7 (1,454.0 won) based on weekly closing prices.Typically, the won and yen move in the same direction, and until last month, both currencies exhibited weakness. However, this month, a clear decoupling phenomenon has emerged. In fact, the won has shown the strongest performance among the G20 currencies. From the beginning of this month until July 24, the wons value against the dollar has risen by 6.24%, the highest increase among major currencies.In South Korea, a significant inflow of dollars due to SK Hynixs American Depositary Receipt (ADR) listing is driving the wons strength. SK Hynix has been gradually converting approximately $26.5 billion raised from its Nasdaq listing and bringing it into the country, which has also led to an increase in dollar selling by domestic exporters.As the won strengthens and the yen weakens, the won-yen exchange rate fell to 889.83 won per 100 yen on July 24, the lowest level in two years since July 2024. This has raised concerns that the increase in demand for yen tech and travel to Japan could widen the service account deficit, potentially hindering domestic recovery.Looking ahead, fluctuations in the yens value could have significant repercussions in international financial markets. If the yen continues to weaken, it may trigger a rise in Japanese government bond yields, impacting the global bond market.Park Sang-hyun, a researcher at iM Securities, stated, While the super weak yen phenomenon may not immediately pose a threat to the financial market, increased volatility in the yen-dollar exchange rate could burden both the financial and asset markets. Further weakness in the yen could lead to rising Japanese government bond yields, which may also exert pressure on U.S. and global bond yields.He added, Conversely, if the Japanese government intervenes directly to prevent the yens decline, a rapid strengthening of the yen could alter global capital flows, increasing asset price volatility.* This article has been translated by AI. July 26, 2026 15:32 -
Interview: Director Choi Jeong-kyu on the Hopeful Ending of 'Donggung' Director Choi Jeong-kyu, known for his meticulous craftsmanship in genre dramas like The Devil Judge and Red Moon Blue Sun, has shifted his focus to the royal palace of Joseon in the Netflix series Donggung. The show explores a mystery set in the world of spirits, where a palace maid with secrets investigates a curse that haunts the king. By blending the distinctly Korean theme of shamanistic beliefs with fantasy action, Donggung achieved remarkable success, ranking second in the global Top 10 non-English shows just three days after its release. Chois unique directorial style has captivated global audiences with the series haunting undertones. Rather than focusing on ratings, I am grateful for the viewership. As a creator, my hope was for many people to enjoy it, so I feel thankful for the interest it has garnered since its release, Choi said. When he first encountered the expansive world built by writers Kwon So-ra and Seo Jae-won, Choi felt a mix of excitement and challenge. My initial thought was, This will be fun. I believed the content would be interesting, and from a creators perspective, it seemed like a challenging and thrilling project. At that time, I didnt fully grasp how complex and difficult it would be, so I first thought about how to make it visually appealing, he explained. One of the biggest challenges was visually realizing the world of spirits that serves as the backdrop for the drama. The production team engaged in intense discussions to create a space that felt both connected to reality and distinctly different. From the beginning, we agreed that while we wanted the world to look different from the real one, it should still reflect elements of reality. The concept was clear, but the technical and visual implementation became a point of contemplation for me as the director, Choi noted. Some viewers have drawn comparisons between the world of spirits in Donggung and the upside-down world in Netflixs Stranger Things. I was surprised to hear the comparison to Stranger Things. Its an excellent work, and I feel honored, but it wasnt a visual reference for us. However, we did discuss the sense of adventure in which characters navigate through various situations, and titles like Stranger Things and The X-Files came up. For visual representation, we sought basic imagery from legends and myths about hell and the afterlife. We aimed for a vibrant color palette in the real world, while the spirit world was dominated by a single color concept, like red, purple, or yellow. We also shot the same space in different seasons to create distinct feelings—spring and summer for reality, and winter for the spirit world, he explained. Behind the stunning visuals was a strong collaboration with the cinematography and lighting teams. Despite the high reliance on visual effects (VFX), the team chose to emphasize the inherent strength of the subjects rather than solely depending on technology. They built separate sets for the real and spirit worlds to create a tactile difference. I learned a lot from cinematographer Park Jeong-hoon and lighting director Kim Seung-kyu. Both started their careers in historical dramas, and since I have also worked on many, we discussed how to express beauty in a fantasy based on Koreas past. We concluded that rather than embellishing too much, we should confront the subjects and landscapes directly. Instead of thinking, This can be solved with VFX, we approached it with the mindset that this is it, without VFX. While we did use a lot of VFX, we set a principle to minimize reliance on it from a blank slate. We first created the art and real sets, then applied retouching or overlays as needed. The sets for the spirit world and corridor scenes were built separately to create different color and texture perceptions, even slightly tilting columns and floors to evoke subtle differences that the audience might not consciously notice, he said. In the series, the character Geumak-sari, who communicates with the protagonist Gucheon, had to balance between being endearing and eerie. Choi aimed to lend credibility to the character through its design. Designing Geumak-sari was quite challenging. Other spirit characters have relatively clear roles, but Geumak-sari needed to be a friendly presence to both Gucheon and the audience while also having the ability to transform and assist. I pondered how to create that credibility and drew inspiration from the textures of statues, clay figures, and earth. The original story had a dark image, so I developed it with a sense of earth and stone. Since this character needs to interact continuously with Gucheon, cuteness was also an important element. The writers mentioned that they found cuteness in the line where Geumak-sari repeatedly says, I am Geumak-sari. I believe that influenced how the character was structured in the script, he said. Leading actors Nam Joo-hyuk (as Gucheon) and Noh Yoon-seo (as Saenggang) displayed a high degree of synchronization with their characters, providing a solid foundation for the series. I see Gucheon as a very lonely character. He grumbles, but ultimately, he bears all the burdens himself. He navigates between life and death, fulfills his duties, and accepts his fate. I felt a good understanding of this character during the casting discussions with Joo-hyuk. He is a bright and playful person, yet he also has a cool and reliable demeanor, with moments of loneliness reflected in his eyes. Most importantly, I felt his sincerity towards the work and character. Yoon-seo, on the other hand, seemed to have a sense of overcoming challenges, even though she didnt appear to struggle in her previous work. I was curious about the source of that, and when I met her and worked together, I found her to have a very straightforward and bold charm. Her simplicity and directness were impressive, Choi shared. Veteran actors like Jang Young-nam and Jo Seung-woo provided the weight of traditional historical drama, while the two leads brought a relatively modern tone to their performances. This contrast arose naturally from the relationships between the characters. I think the contrast came from the positions and relationships of the characters rather than being intentional. Seung-woo and Young-nam play characters who engage in formal and political discussions, while Gucheon is inherently that type, and Saenggang, despite being a princess, becomes closer to Gucheon, altering their distance. That contrast likely became more pronounced. I believe both of them would excel in any role, not just historical dramas. Young-nam had to shoot high-energy scenes in a short period, and despite the exhausting circumstances, her eyes lit up whenever the camera was rolling, which I found truly impressive. The scene where she had to perform with a twisted mouth was particularly challenging, he noted. During filming, a major fire incident forced the team to rebuild the set. However, Choi explained that such accidents ultimately strengthened the bond among the crew. The fire was significant, so it posed challenges. I believe we had to rebuild the set we had constructed. Still, I am grateful that no one was injured. The production company, Netflix, and the staff encouraged me, which helped us overcome the situation. Many people shed tears, but seeing them tell me, Its okay, lets stay strong, made me realize I needed to pull myself together, he said. As the series concludes with a poignant ending, anticipation for a potential second season is growing among viewers. Instead of providing a definitive answer, Choi responded with affection for the characters. Regarding whether the ending was designed with a sequel in mind, I believe that as a creator, its not the first thing to consider. My primary concern was to do everything we could now and hope that many people would love it. However, in discussions with the writers about the ending, we talked about how the characters had gone through so much hardship and suffering, and we wondered if there could be a glimmer of hope. While the situation in the palace hasnt completely changed, the ending reflects a desire for a bit of hope for them in the darkness, he concluded. * This article has been translated by AI. July 26, 2026 14:16
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Government to Issue 6.7 Trillion Won in Public Bonds in Q3 The issuance of major public bonds in the third quarter is expected to reach 6.7 trillion won, an increase of 4 trillion won from previous plans.On July 24, the Ministry of Finance held its third meeting of the Bond Issuance Agency Council chaired by Hwang Soon-kwan, head of the National Treasury. Representatives from the Financial Services Commission, the Financial Supervisory Service, and key government-backed bond issuing agencies attended the meeting to review second-quarter performance and discuss plans for the third quarter.Earlier, the government and issuing agencies had agreed in April to normalize the issuance volume for the second quarter. However, a review revealed that the issuance conditions in May and June were worse than expected, leading to a reduction in the issuance volume. In the first half of the year, 124.1 trillion won in government bonds were issued, while public bonds excluding government bonds totaled 70 trillion won in the second quarter. Overall, the first halfs issuance was 1 trillion won lower than the initial plan.For the third quarter, the issuance of major public bonds, excluding government bonds, is projected to be around 67 trillion won, reflecting an increase of 4 trillion won due to rising policy demand. However, this represents a decrease of 3 trillion won compared to the previous quarter.Attendees noted that while interest rates remain high, bond demand has shown some signs of recovery this month.The government and issuing agencies plan to proceed with the scheduled issuance of government bonds and major public bonds in the third quarter as planned.Participating agencies will flexibly adjust bond issuance. They will diversify issuance schedules and maturities, and if necessary, issue foreign currency bonds or conduct direct borrowing. Additionally, if a significant increase in issuance is anticipated, they plan to consult with the Bond Issuance Agency Council to adjust the volume and timing of issuance.Hwang emphasized, Given the ongoing domestic and international uncertainties surrounding the bond market in the second half of the year, cooperation among institutions is crucial for market stability. We will hold meetings as needed to discuss issuance volumes and timing.* This article has been translated by AI. July 24, 2026 17:04
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Global Inflation Concerns Rise as Oil Prices Hit $100 and U.S. Imposes New Tariffs As international oil prices surpassed $100 per barrel, the United States has imposed new tariffs on key trading partners, reigniting global inflation concerns. Rising oil prices are increasing production and transportation costs, while U.S. tariffs could elevate the prices of imported goods. This situation raises the possibility that central banks in major economies may delay interest rate cuts or consider further hikes.Brent Crude Surpasses $100 Amid Middle East Shipping ConcernsOn July 23, Brent crude for September delivery closed at $100.69 per barrel, a 7.04% increase, marking the first time it has exceeded $100 since May 22. West Texas Intermediate (WTI) also rose by 6.17%, finishing at $92.19 per barrel. Both oil benchmarks have seen gains for five consecutive trading days.Concerns over potential disruptions in oil transportation due to military conflicts in the Middle East have driven prices higher. The ongoing U.S.-Iran tensions have significantly reduced shipping traffic through the Strait of Hormuz, while Yemens Iran-aligned Houthi group reported attacks on two Saudi oil tankers in the Red Sea.If both the Strait of Hormuz and the Bab el-Mandeb Strait are blocked, two major oil transport routes from the Middle East would be simultaneously threatened. Goldman Sachs has projected that if disruptions in the Strait of Hormuz persist, Brent crude could exceed $120 per barrel in the fourth quarter of this year. They also noted that if the Bab el-Mandeb Strait and the Suez Canal experience disruptions, prices could rise further.The surge in oil prices has also impacted the global bond market. With rising energy costs potentially driving inflation higher, concerns have grown that central banks may need to maintain elevated interest rates for longer or implement additional hikes, leading to a rise in government bond yields across major economies.The yield on the U.S. 10-year Treasury note rose to 4.703% on July 23 and climbed to 4.7135% during Asian trading on July 24, the highest level in 18 months. Germanys 10-year bond yield reached 3.205%, the highest since 2011, while the U.K.s 10-year yield rose to 5.096%, marking a two-month high.U.S. Imposes New Tariffs on 60 Countries, Including South KoreaAdditionally, the U.S. has introduced a new tariff policy that could further increase inflationary pressures. The Office of the U.S. Trade Representative (USTR) announced on July 24 that it would impose tariffs of 10-12.5% on 60 trading partners, including South Korea, under Section 301 of the Trade Act. These countries account for 99.4% of total U.S. imports.The application of tariffs varies by country. For South Korea, Japan, and Switzerland, the combined tariff rate of the existing most-favored-nation (MFN) tariff and the new tariff will be set at a minimum of 12.5%. If the existing rate is below 12.5%, the additional tariff will be adjusted accordingly; if it is already above 12.5%, no new tariff will be applied.The same method will apply to the European Union and Taiwan, but the combined tariff rate will be set at 10%. In contrast, 17 countries, including the U.K., Canada, India, and Mexico, will see an additional 10% tariff added to existing rates, while the remaining countries will face a 12.5% additional tariff.The new tariffs took effect at 12:01 a.m. Eastern Time on July 24. Notably, crude oil, key petroleum products, natural gas, and some fertilizer materials are excluded from this tariff list.Market analysts believe that high oil prices will increase global energy and transportation costs, while the new tariffs will pressure the prices of imported goods entering the U.S., contributing to inflationary burdens in different ways.The decisions of major central banks regarding interest rates have also become more complicated. The European Central Bank (ECB) held its deposit rate steady at 2.25% on July 23, cautioning that the impact of rising energy prices on inflation has not yet fully materialized. If oil prices continue to rise, there are discussions about the ECB potentially raising rates further.The Federal Reserve and the Bank of England are also expected to keep rates unchanged at their upcoming monetary policy meetings next week. However, if oil prices continue to climb, the possibility of additional rate hikes cannot be ruled out.According to Reuters, financial markets estimate about a one-third chance that the Fed will raise rates next week, with expectations for two rate hikes by January 2024 already priced in.* This article has been translated by AI. July 24, 2026 15:56
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NH Investment & Securities Reports Record Half-Year Profit of 965.2 Billion Won NH Investment & Securities has achieved its highest-ever half-year performance, driven by balanced growth in its brokerage, financial products, and investment banking (IB) sectors.On July 24, NH Investment & Securities announced that its consolidated net profit attributable to shareholders for the first half of the year reached 965.2 billion won, a 107.6% increase compared to the same period last year. This marks the largest half-year profit in the companys history.During the same period, net operating revenue rose to 2.26 trillion won, up 89.0%, while operating profit reached 1.32 trillion won. The annualized return on equity (ROE) stood at 19.0%.In the second quarter, net profit attributable to shareholders was 489.6 billion won, reflecting a 90.7% increase year-on-year. The company attributed its strong performance to increased trading in domestic and international markets, an expanded customer base, and enhanced competitiveness in digital and global trading infrastructure.Brokerage commission revenue for the first half totaled 795 billion won, a 211.7% increase from the same period last year. In the second quarter, commission revenue was 445.6 billion won, up 27.5% from the previous quarter.Domestic stock commission revenue reached 390.9 billion won, a 26.2% increase from the previous quarter, as the average daily trading volume in domestic stocks expanded to 90.2 trillion won, with market share rising by 0.7 percentage points. Commission revenue from overseas stocks increased by 55.1% to 85.8 billion won, driven by higher average trading volumes and expanded agreements.The financial products sales sector also showed growth, with commission revenue for the first half reaching 125.9 billion won, a 127.2% increase year-on-year. In the second quarter, this figure was 76.8 billion won, up 56.3% from the previous quarter. The expansion of target conversion wrap sales led to a 171.8% increase in asset management fees compared to the previous quarter.Total customer assets grew to 612 trillion won, with the number of customers holding assets over 100 million won reaching 455,000, and those with over 10 billion won exceeding 33,000.The IB sector recorded commission revenue of 205.5 billion won for the first half. In the second quarter, this figure was 108.3 billion won, an 11.3% increase from the previous quarter, driven by an increase in fees related to debt guarantees.In the equity capital markets (ECM), the company led the IPO league table in the first half by managing initial public offerings for companies such as Piece Piece Studio and Cosmo Robotics. In the debt capital markets (DCM), it managed bond issuances for Hanon Systems and SK Networks, maintaining its top position in the specialty finance bond sector.The asset management sector reported earnings of 831.5 billion won for the first half, a 62.5% increase year-on-year. In the second quarter, asset management earnings were 407.3 billion won, attributed to stable performance through conservative risk management despite increased market interest rate volatility.Shin Jae-wook, CEO of NH Investment & Securities, stated, What is more significant than achieving the highest-ever performance is the qualitative change in our revenue structure. Not only did brokerage revenue increase significantly, but we also maintained market leadership in our traditionally strong IB sector.* This article has been translated by AI. July 24, 2026 10:28
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Won surges amid foreign inflows as stronger-than-expected GDP SEOUL, July 23 (AJP) - The South Korean won strengthened sharply against the dollar on Thursday as foreign investors poured more than 2 trillion won into local shares following stronger-than-expected economic growth and renewed optimism over artificial intelligence-related chip demand. Government bond yields, by contrast, ended little changed as the prospect of further monetary tightening was offset by buying interest after their recent climb. The won gained 13.3 won to close daytime trading at 1,466.8 per dollar, its strongest level in about two and a half months. The currency opened near 1,477 per dollar and briefly weakened before reversing direction and advancing into the mid-1,460s later in the session. Foreign investors purchased a net 2.136 trillion won (US$1.46 billion) of shares on the main Kospi market, adding to demand for the won and accelerating the currency's rise. The benchmark KOSPI climbed 4.40 percent to 7,096.89 as overseas investors concentrated their purchases in large-cap stocks, including semiconductor companies. The scale of foreign buying strengthened expectations of equity-related dollar selling, while exporters also sold dollars as the exchange rate extended its decline. The market rally followed data showing that South Korea's real gross domestic product expanded 0.6 percent in the second quarter from the previous three months, exceeding the 0.4 percent median forecast in a Reuters poll. The economy grew 3.7 percent from a year earlier, also beating expectations, as exports increased 1.4 percent on strong shipments of semiconductors, machinery and equipment. The figures eased concern that economic momentum would fade sharply after 1.8 percent growth in the first quarter and reinforced expectations that the Bank of Korea will raise its annual growth forecast next month. They also strengthened the case for at least one more interest-rate increase, improving the won's relative yield outlook despite continued strength in the broader dollar. Renewed optimism over global artificial intelligence (AI)-related investment provided additional support, lifting South Korean chipmakers and drawing foreign funds back into a market that had recently experienced sharp volatility. Government bonds showed a much more restrained response to the GDP surprise, with yields ending on opposite sides of their previous closes. The yield on the three-year government bond rose 0.4 basis point to 3.917 percent, while the benchmark 10-year yield declined 0.8 basis point to 4.392 percent. The stronger growth figures kept expectations for another BOK rate increase intact, but the possibility had already been largely reflected in short-term yields after their recent advance. The central bank raised its benchmark interest rate by 25 basis points to 2.75 percent on July 16, and economists broadly expect at least one additional increase to 3.00 percent by the end of the year. Buying interest emerged as the three-year yield approached 3.9 percent and the 10-year yield neared 4.4 percent, limiting further losses in bond prices despite the stronger-than-expected GDP data. The decline in the longer-dated yield slightly flattened the yield curve, indicating that investors were reluctant to extend the bond sell-off without clearer evidence that stronger growth would generate persistent inflation. Thursday's trading highlighted a divergence across South Korean financial markets, with the won and equities responding strongly to foreign inflows and the chip-led growth surprise while bonds remained caught between additional rate-hike risks and perceptions that yields were near a short-term peak. July 23, 2026 17:12 -
LUNATE Discusses New Album 'SNEAKERS' and Its Fresh Energy Returning with a more liberated energy, the group LUNATE is set to make their official comeback with their fourth mini-album, Off the Grid, after a 10-month hiatus. Off the Grid embodies the groups bold ambition to redefine their starting point, breaking free from established norms. Known for their distinct concepts and performances, LUNATE aims to showcase a fresh street vibe and vibrant energy with this album. “During the past 10 months, we traveled on a European tour and engaged in various activities while preparing for the album. My perspective has changed significantly during that time. Previously, I approached the stage with a mindset of presenting a polished performance, but this time, we focused on expressing our individual charms and desires, creating a stage that both performers and viewers can enjoy. I feel a strong attachment to this album because I participated in many aspects of it,” said Jinsu. The choice of a refreshing concept was heavily influenced by fan feedback. The members wanted to create a stage that fosters closer communication with their fans, rather than simply returning to a bright concept. “We haven’t only done chic concepts; we’ve explored various styles. However, our fans expressed a strong desire to see a refreshing concept. That was a significant factor. We thought it was important to show what our fans wanted this time. But we also wanted to differentiate ourselves from our debut by not just presenting a refreshing vibe. So, we aimed to create a stage where we could participate more and communicate with our fans,” said Kael. The free-spirited street mood is also reflected in the choreography. While maintaining a cohesive performance, the members infused their spontaneity and individuality into their expressions and gestures. “When you see street dance or freestyle, there’s a sense of freedom that comes from dancing to the music rather than adhering to a strict format. While we can’t go on stage completely unprepared, we aimed to express freedom within certain guidelines. In the choreography for SNEAKERS, there are moments where the members face each other while dancing, and we didn’t set specific expressions or gestures. We tried to enhance the song’s appeal by changing it slightly each day. The members are quite free-spirited, which aligns well with the direction of this album,” said Junwoo. The title track SNEAKERS captures LUNATEs bright and positive youthful energy as they walk their chosen path. Beginning with a rhythmic slap bass, the song adds enjoyment with drums and whistling sounds, while the explosive chorus delivers both addictiveness and a sense of liberation. Members Takuma, Junwoo, and Ian contributed to the choreography, enhancing the groups chemistry. “We all unanimously liked it. Personally, I wanted a catchy song, and when I heard it, I felt confident that we could take over this summer,” said Kael. “The title SNEAKERS and the focus on the chorus made the concept clear. We thought a lot about how to present this title in a way that would engage the public positively. I had high expectations for this song from the start,” said Ian. “I think this refreshing concept suits us better than the darker concept we had last year, and I’m happy about that. I believe this song will do well for the members,” said Yuma. “The difference in appeal between just listening to the music and watching the dance will be significant. I hope everyone will enjoy both aspects on stage,” Ian added. Many moments on stage emerged naturally during the rehearsal process. Movements that started playfully became part of the choreography, and spontaneous actions became focal points of the song. “During the choreography, there was a moment when we all stopped and turned. We were thinking about fun and impactful choreography for SNEAKERS, and Jinsu jokingly jumped into my arms. It turned out to be fun, and our choreographer liked it, so that moment made it into the final choreography,” said Junwoo. “In the outro, there was a section where we all jumped around, which wasn’t originally part of the choreography, but I thought of a breakdancing step and tried it out. It blended well with the choreography and was added spontaneously,” Kael explained. As LUNATE enters their third year since debut, they have also experienced changes in their lineup. While it has not been an easy time, the members agree that it has strengthened the group. They focused on enhancing their individual skills to ensure fans wouldn’t feel the absence on stage. “My life moment is Enjoy Life, so I’ve had more joyful times than anxious ones. While the member changes are regrettable, when we six talk, we agree to enhance our skills so that our fans don’t notice the empty space on stage. We practiced a lot in dance, singing, and acting, and our skills have improved significantly. This period has actually made us six closer and stronger,” said Junwoo. “We already communicate a lot. Spending time together and practicing as a group allows us to understand each other’s emotions just by looking at each other’s expressions. Those moments of conversation created a stable atmosphere. We prepared for this comeback with a unified opinion, and our bond has strengthened both professionally and personally,” Jinsu added. “The reason we had to become stronger is ultimately for our fans. We didn’t want to show any signs of insecurity to our fans. By thinking of our fans and preparing for them, we became closer and more solid,” Kael said. “While the member changes are unfortunate, health issues are beyond our control. What we can do now is to minimize any worries or burdens for our fans. So, we’ve been working hard to show them our best,” Takuma stated. Individual activities of the members are also expanding the group’s reach. Kael recently completed his first acting project in the popular SBS drama Mr. Kim. He expressed his gratitude for being part of such a significant work. “I think I should first say that it’s hard to believe. Everyone hopes for a big first project, but it’s not easy. Being able to join a major drama is an honor and a deeply moving experience. I’ve heard from many that it’s rare to shoot a first project in such a good and happy environment. When I first went to the set, it was a warm and joyful atmosphere, which surprised me and left me with happy memories,” Kael shared. The members have also shown support for Kael’s acting. Having witnessed his preparation in the practice room, they were pleased to see him naturally embody his character. “Kael’s character was very natural without any awkwardness. I watched him practice in the studio, and while he was initially awkward, he became more natural over time. Seeing the final product, he seemed to fit well into the character and looked great,” said Junwoo. LUNATE has clear goals for this album: to achieve a music show win, chart success, and participate in year-end performances and award ceremonies, thereby introducing their name and music to a broader audience. “Since we’re making a comeback in the second half of the year, our dream is to win a music show, enter the charts, and participate in year-end performances and award ceremonies. Personally, I would be happy to sing a Christmas carol at the year-end stage. I believe carols create a festive atmosphere and bring happiness to people,” Kael said. “Like the title SNEAKERS, I want to collaborate with a shoe brand or store for an advertisement. I think it would be appealing to showcase our song while promoting shoes,” Takuma added. “I would feel happy if our song played while I was eating. Hearing our song in public would mean that people enjoy it, which would be a great feeling,” Junwoo said. “I hope this song does well, allowing us to gain more recognition and for other good songs to be recognized as well. I wish for many songs to chart and for the public to become familiar with our music,” Ian concluded. * This article has been translated by AI. July 23, 2026 16:32
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Google Reports Cash Deficit Despite Strong Earnings, AI Bubble Concerns Grow Alphabets stock fell nearly 5% in after-hours trading immediately following its second-quarter earnings report, despite exceeding market expectations for both revenue and profit. Analysts suggest that the significant capital investments in AI have fueled concerns about a potential AI bubble.On July 23, the tech giants shares dropped 1.46% during regular trading and fell as much as 4.9% in after-hours trading before settling at a 2% decline.The sharp decline occurred not immediately after the earnings announcement but during the earnings call when Chief Financial Officer Ruth Porat confirmed an increase in capital expenditure guidance. Alphabet raised its capital expenditure forecast for the year from $180 billion to $190 billion to a new range of $195 billion to $205 billion.This new guidance exceeds Wall Streets expectations of $186 billion, and the company indicated that capital investments would continue to rise significantly in 2027. In the second quarter alone, capital expenditures reached $44.9 billion, doubling from $22.4 billion in the same period last year.The impact of this investment surge is evident in the companys cash flow. Alphabet reported a negative free cash flow of $5.9 billion for the second quarter, marking its first quarterly deficit since going public in 2004. Although the company generated $39.1 billion from operations, capital expenditures surpassed this amount.To address the cash shortfall, Alphabet raised $49.6 billion through common and mandatory convertible preferred stock offerings and $20.3 billion through bond issuance, halting its stock buyback program. Even the worlds largest cash-generating company is now facing challenges in funding its AI investments with its own cash.Attention is now shifting to upcoming earnings reports from other tech giants. Intel is set to release its results after the market closes on July 23, followed by Microsoft and Meta on July 29, coinciding with the Federal Open Market Committees interest rate decision. Apple and Amazon will report their earnings on July 30. Amazons revenue is expected to be around $196 billion, while Apples is projected at approximately $108.9 billion; however, the key focus will be on their capital expenditure guidance.Meta has already raised its guidance for the year to between $125 billion and $145 billion, while Microsofts capital expenditure consensus for fiscal year 2027 has surged to $130 billion, doubling from $65 billion in fiscal year 2025. The combined AI capital investments of Amazon, Google, Meta, and Microsoft are projected to reach about $725 billion this year, a 77% increase from the previous year. Whether these companies maintain or raise their guidance could either bolster or deflate concerns about an AI bubble.Wall Street analysts predict that the pace of spending growth may outstrip revenue growth, potentially causing the free cash flow of major U.S. tech companies to decline by as much as 90% this year. According to Moodys, unactivated data center lease agreements contracted by hyperscalers amount to approximately $662 billion, suggesting that reported capital expenditure figures may underestimate the actual burden. This concern aligns with the Federal Reserves identification of AI as a systemic risk factor.Additionally, developments from China have intensified bubble concerns. The recent unveiling of the open model Kimi K3 by Moonshot AI on July 17 has raised fears that the substantial investments made to secure U.S. AI dominance could be undermined by low-cost open-source alternatives. As a result, the Philadelphia Semiconductor Index plummeted 10% last week, falling more than 20% from its peak.Upcoming initial public offerings (IPOs) from major companies like SpaceX, OpenAI, and Anthropic, scheduled for the second half of the year, also present uncertainties. The combined target market capitalization of these three companies is estimated at $3.5 trillion, which could create supply pressures in the market. July 23, 2026 15:16
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Korean growth runs above potential of 2% H1 on AI chip boon SEOUL, July 23 (AJP) - South Korea's economy cooled in the second quarter from the blistering pace of the previous three months, but stayed comfortably above its estimated growth potential and on track to achieve the government's annual growth target of 3.0 percent, Bank of Korea data showed Thursday. Gross domestic product expanded 0.6 percent in the April-June period after expanding 1.8 percent in the first quarter. The Bank of Korea portrayed the moderation as a healthy normalization rather than the start of a slowdown. "When growth is exceptionally strong in one quarter, it often falls sharply or even turns negative in the next, but the economy continued to expand in the second quarter," said Lee Dong-won, director general of the BOK's Economic Statistics Department II. From a year earlier, GDP grew 3.7 percent in the second quarter after a 3.8 percent increase in the January-March period, keeping the broader expansion comfortably above the economy's estimated growth potential of around 2 percent. "Even if quarter-on-quarter growth averages minus 0.1 percent in the third and fourth quarters, annual growth could still reach 3 percent," Lee said. Annual growth compares the average level of GDP over all four quarters of 2026 with the average for 2025, rather than simply adding quarterly growth rates. The strong gains already accumulated in the first half would therefore cushion modest weakness later in the year. The BOK's latest official growth forecast, released in May, remains at 2.6 percent, making Lee's 3 percent figure an arithmetic possibility rather than a revised central bank projection. The central bank will update its outlook in August. If achieved, 3 percent growth would mark South Korea's strongest annual expansion in five years. Financial markets took the stronger-than-expected GDP figures in stride. The benchmark KOSPI rose 3.2 percent to 7,012 as of 11 a.m., extending gains as investors welcomed signs of economic resilience. The three-year Korean government bond yield was little changed at 3.909 percent, hovering just below the 4.0 percent threshold, while the 10-year yield rose 2.3 basis points to 4.377 percent. The stronger growth figures reinforced expectations that the Bank of Korea could tilt toward a more aggressive pace of monetary tightening. The Korean won, which opened at around 1,476.6 won per dollar at about 9 a.m., strengthened sharply to around 1,468 after the data release. Another upside surprise was that the composition of second-quarter growth suggested momentum was not confined entirely to exports. Domestic demand and net exports each contributed 0.3 percentage point to quarterly growth, contrary to expectations that external demand would account for most of the increase. Still, stronger exports and chip-facility expansion remained the primary growth engines. Private consumption remained lackluster, hovering around zero growth. Higher oil prices weighed on passenger-car fuel consumption, but discretionary spending increased on household appliances, department-store goods, clothing, bags and travel, supported by income gains from the stock market and the AI boon. Beyond the stock market and the semiconductor sector, domestic demand remained broadly subdued, with elevated household debt continuing to weigh on consumer spending. The AI-driven chip boon, however, boosted the economy's income far more than its output. Real gross domestic income rose 15.6 percent from a year earlier, its strongest annual gain in 38 years, as semiconductor export prices increased much faster than crude oil import prices. The widening gap between GDP and GDI indicated that the purchasing power generated by the economy rose much faster than real output, reflecting a sharp improvement in South Korea's terms of trade. Officials cautioned that more evidence was needed to determine whether the income windfall would feed through to corporate investment, employment and broader household consumption. The second-quarter figures therefore suggest that while the economy likely passed its quarterly growth peak in the first three months of the year, the broader expansion has held up better than expected. Yet the figures also point to an increasingly two-speed economy, with the AI-driven chip boom generating outsized gains in national income while much of the domestic economy continues to struggle under weak consumption, sluggish private demand and elevated household debt. The second-half trajectory will depend on developments in the Middle East, energy prices and whether the semiconductor upswing broadens beyond favorable pricing into sustained gains in production, exports, investment and domestic demand. July 23, 2026 11:21 -
K-pop's second act: Why groups no longer really disappear SEOUL, July 22 (AJP) - When NewJeans released a surprise anniversary film at midnight on July 22, it did more than celebrate four years since the group's debut. The video reunited Minji, Hanni, Haerin and Hyein in official group content for the first time in one year and four months after a prolonged contract dispute that had brought the group's activities to a halt. A court sided with their agency, ADOR, in both an injunction and the main lawsuit over the validity of their exclusive contracts. Haerin, Hyein and Hanni subsequently returned to the label, while ADOR terminated Danielle's contract in December. Minji also appeared in the film, although her contractual status had not been formally clarified at the time of its release. No comeback has been announced. ADOR has said it will reveal NewJeans' future plans once discussions are complete. Yet the appearance of four members alone was enough to reignite speculation that one of K-pop's most influential groups of the past four years could be edging toward a return. NewJeans has neither disbanded nor reunited. That ambiguity is precisely what makes the group's situation significant. Increasingly, a K-pop group can stop functioning without disappearing. A breakup, agency split or years-long hiatus no longer necessarily marks the end. Members may pursue separate careers. The legal rights may remain with a former agency. The original lineup may never perform together again. Yet the group's name, catalog, visual identity and emotional bond with fans often continue to exist—and to retain considerable commercial value. In modern K-pop, a group is becoming less a temporary collection of performers than a long-lived intellectual property. More than one way back The industry has already produced several models of what a "comeback" can mean. Sechs Kies offers the classic reunion story. After formally disbanding in 2000, the first-generation boy band unexpectedly reunited in 2016, signing with YG Entertainment, holding concerts and releasing new music 16 years after its final activities. Kara followed a different path. Rather than reuniting after an official breakup, it resumed activities in 2022 following a seven-year hiatus with the anniversary album Move Again. Its title track, When I Move, made Kara the first girl group to win on Korean music programs across the 2000s, 2010s and 2020s. Then came 2NE1. A decade after its previous solo concert, the four members reunited in October 2024 for a 15th-anniversary world tour. YG Entertainment expanded the tour to 27 performances in 12 cities, with expected attendance of about 220,000. More than 400,000 users reportedly attempted to purchase tickets for the opening Seoul concerts alone. All three are commonly described as reunions, but each represents a different business model. Sechs Kies returned after formal disbandment. Kara resumed activities after an extended hiatus. 2NE1 reassembled years after its agency had effectively ended the group's career. Other groups demonstrate that survival sometimes requires abandoning the very identity that made them famous. Unable to continue using the Beast trademark after leaving Cube Entertainment, the remaining members relaunched as Highlight in 2017. Although they later regained the legal rights to the Beast name, they continued promoting under Highlight, having already built a successful second identity. VIVIZ illustrates yet another model. Rather than reviving GFriend, former members Eunha, SinB and Umji created a separate trio after GFriend's activities ended in 2021. What links these examples is not disbandment itself but something more fundamental. K-pop groups have become modular. Their lineup, catalog, trademark, music and fan community can now survive independently and be recombined in different ways. Nostalgia has become an asset For entertainment companies, the value of returning groups is easier to see in ticket demand than in abstract discussions about fandom. Launching a successful rookie group requires years of recruitment, training, production and marketing—with no guarantee of success. Returning groups already possess something almost impossible to manufacture: recognition. They also own an existing catalog and a fan base whose emotional attachment has survived years of inactivity. The phenomenon extends well beyond K-pop. Oasis sold roughly one million tickets after announcing its reunion despite a 15-year split. ABBA went even further. Its London residency ABBA Voyage, featuring digital avatars rather than the members themselves, generated £103.7 million ($139 million) in ticket revenue in 2023 while attracting nearly 1.1 million visitors. Different technology. Different audiences. The same commercial principle. People are not simply paying to hear familiar songs. They are paying to revisit a period of their own lives. In that sense, nostalgia is no longer merely an emotion. It has become a monetizable asset. The fight over identity Turning nostalgia into a comeback, however, is often more difficult than reuniting the members. A group also needs access to its name, catalog, trademarks, recordings and performance rights—assets that frequently remain under the control of current or former agencies. Shinhwa spent 12 years fighting legal battles over the right to use its own name before reaching a court-mediated settlement in 2015. Highlight chose the opposite strategy, building a new identity instead of waiting to recover Beast. NewJeans now finds itself confronting the same divide between performers and intellectual property. According to legal experts cited during the dispute, ADOR owns the NewJeans trademark. The members briefly attempted to promote independently as NJZ before a court prohibited activities outside the agency. Changing the name solved nothing. The legal conflict was never about the letters. It was about ownership of the identity those letters represented. That explains why entertainment companies fight so fiercely over trademarks. A group's name is no longer simply a label. It is a business asset built through years of accumulated recognition, fan loyalty and commercial value. The people who created that value and the company that legally owns it are not always the same. What fans are really waiting for For fans, however, reunions are rarely experienced as legal disputes. Lim Jung-bin, a 40-year-old office worker in Seoul, has followed 2NE1 since its debut in 2009. "When I heard they were getting back together, I almost cried," she said. "The group was part of the brightest years of my twenties." She never stopped listening to 2NE1's music during the hiatus and followed each member's solo career. Attending the reunion concert in Seoul last October, she said, "felt like a dream." "It was a precious moment when everyone sang together and shared the same memories. I want to experience it again." Her comments illustrate why inactive groups continue to generate economic value. Fans rarely experience the inactive years as empty time. They keep listening. They follow individual members. They preserve the emotional context that first connected them to the music. Watching the NewJeans dispute, Lim said the exact lineup mattered less than preserving the group's distinctive identity. "Whether four members come back or five, NewJeans has its own atmosphere," she said. "I miss that retro, lo-fi sound." Not every fan would agree. Some believe a reunion without every original member is incomplete. But her response highlights the central paradox of modern K-pop. Fans often remain attached to the identity of a group even after the people, contracts and companies behind it have changed. That is what makes returning groups simultaneously so valuable—and so difficult to recreate. A K-pop group is no longer defined only by the people standing on stage. It is also a trademark, a catalog, a visual language and a community of memories that can outlive the contracts that first brought those people together. The performers may leave. The music may stop. Ownership may change. But the group itself rarely disappears. Its next chapter is written in the space between what fans still remember and what the law allows someone else to revive. July 22, 2026 18:04 -
Korea Development Bank Discusses Financial Support for Yeosu No. 1 Petrochemical Restructuring The Korea Development Bank announced on July 22 that it held a meeting with bond financing institutions to support the restructuring of the Yeosu No. 1 project under the Structural Innovation Support Agreement.The Yeosu No. 1 restructuring plan is a collaborative effort by Yeochun NCC, Lotte Chemical, Hanwha Solutions, and DL Chemical to reorganize the petrochemical industry. The Ministry of Trade, Industry and Energy approved the final restructuring plan on July 20, and the government announced a tailored support package that includes financial, tax, cost reduction, and research and development (R&D) assistance, as well as support for local economies and job stability.During the meeting, the Korea Development Bank and bond financing institutions discussed financial support measures necessary for the restructuring, in conjunction with the government’s support initiatives. Key agenda items included deferring repayment of existing bonds and providing new investment funding for the restructuring.According to the restructuring plan, Hanwha Solutions and DL Chemicals downstream facilities, along with Lotte Chemicals basic chemical operations at the Yeosu plant, will be integrated into Yeochun NCC. The newly formed entity will aim to rationalize naphtha cracking facilities (NCC), enhance vertical integration, shift towards a high-value product-focused business structure, and improve its financial structure.Lotte Chemical, DL Chemical, and Hanwha Solutions plan to transfer their basic chemical operations to the new entity while concentrating their capabilities on core businesses, aiming to advance their operations towards high-value, eco-friendly advanced chemicals.Amid increasing uncertainty in naphtha supply due to geopolitical instability in the Middle East, bond financing institutions previously provided Yeochun NCC with a $300 million emergency import letter of credit (L/C) and $350 million to Lotte Chemical during the ongoing restructuring due diligence.* This article has been translated by AI. July 22, 2026 17:36
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Regulatory Review of Loan Company Incentives Amid Limited Bond Sales The Financial Services Commission is considering a plan to apply incentives based on the bond sale performance of loan companies participating in the New Leap Fund, which aims to purchase and manage long-term delinquent bonds from vulnerable groups. This review comes as some loan companies have only sold a portion of their bonds to the fund while seeking benefits such as the purchase of new delinquent bonds or funding from banks, leading to concerns that the current structure may not encourage further sales.According to financial sector sources, the Financial Services Commission is re-evaluating the current support system to link the participation performance of loan companies in the New Leap Fund with incentives.Initially, the commission envisioned a structure where the government would provide benefits such as the purchase of new delinquent bonds or bank funding if loan companies sufficiently sold bonds eligible for the New Leap Fund. However, it has been found that many companies that joined the agreement have sold only a fraction of their holdings.Currently, 15 loan companies are part of the New Leap Fund agreement, having sold approximately 400 billion won worth of long-term delinquent bonds. Considering that around 30 loan companies hold related bonds totaling about 4 trillion to 5 trillion won, the actual sales performance in the loan sector appears limited.The financial authorities believe that the current method of providing the same benefits to all participating companies based solely on their agreement status will not effectively encourage substantial bond sales.The Financial Services Commission is expected to explore options to reflect actual bond sale amounts or the sale ratios against the bonds held in the criteria for applying incentives. They will reassess whether it is appropriate to offer the same benefits to companies that have sold only a portion of their holdings compared to those that have sold a significant amount. However, the specific calculation methods and the extent of differential benefits have yet to be determined.Additionally, the key incentive of bank funding support has not been functioning effectively. To date, there have been no instances of converting existing collateral loans from participating loan companies into bank loans or banks handling new loans.Since banks independently assess the creditworthiness and collateral value of loan companies, it is challenging for financial authorities to mandate loan processing. Currently, the main benefit that participating loan companies are effectively utilizing is the allowance for purchasing new delinquent bonds.Loan industry representatives argue that the failure of promised incentives to function properly is a reason for the lack of participation. A representative stated, When bonds are sold to the New Leap Fund, companies must absorb the loss equivalent to the difference between the book value and the actual sale price. Without benefits such as bank borrowing to offset this, there is little incentive to sell additional bonds.Expanding participation from the loan sector is considered a key task for the New Leap Fund. Recently, the Financial Services Commission and the Korea Asset Management Corporation completed negotiations to purchase long-term delinquent bonds worth 1.0314 trillion won held by liquidity companies such as Sangnoksoo and K-Bista. In contrast, the loan sector, estimated to hold about 30% of all long-term delinquent bonds, has been slow to progress in bond resolution. July 22, 2026 15:44
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KAIST germanium system switches oxygen reaction pathways SEOUL, July 22 (AJP) - A new molecular system developed in South Korea can be instructed how many electrons to hand over to oxygen, a switch that decides whether a reaction ends in water or hydrogen peroxide and that sits at the center of fuel cell performance, battery chemistry and cleaner industrial manufacturing. Until now, that kind of control has belonged almost entirely to transition metals such as iron, cobalt and nickel. Fuel cells depend on the four-electron route, which turns oxygen into water and releases the most energy. Plants producing hydrogen peroxide want the two-electron route and nothing else. Steering a reaction cleanly down one path rather than the other has been one of the standing problems in catalyst design. The Korea Advanced Institute of Science and Technology (KAIST) said Wednesday that a team led by Hwang Seung-jun, an associate professor in its Department of Chemistry, has demonstrated a single molecular system that can be switched between the two routes on demand. The work appeared online in the journal Chem on July 6. The switch runs on germanium, an element that was not supposed to be capable of this. Germanium sits in the same column of the periodic table as silicon, among what chemists call the main-group elements, the ordinary elements outside the transition metals. Transition metals dominate catalysis because their electron shells let them absorb and release several electrons at a time. Main-group elements normally manage two at most, which is why they have been treated as poor substitutes for reactions involving oxygen. Hwang's team got around that by pairing germanium with a redox-active ligand, a surrounding molecular framework that stores electrons and passes them back and forth. The ligand works as a reservoir. Instead of asking the germanium atom to supply everything on its own, the whole molecule shares the load, and four-electron chemistry becomes possible. Turning the four-electron pathway off proved to be a matter of blocking two electrons at the source. The researchers reacted the germanium compound with iodomethane, attaching a methyl group to the germanium center. That single change shut down the four-electron route and left the reaction running selectively on two electrons. The same platform, structurally modified, produced a different product. Along the way, the team managed to isolate a germanium intermediate that ordinarily forms and disappears within the reaction. The isolated species showed a rare property. A single germanium atom acted as both an electron donor and an electron acceptor, behavior chemists describe as ambiphilic, and it gave the researchers direct evidence of how the switching works rather than an inference from the final products. The compound turned out to do more than react with oxygen. At room temperature and without light, it stripped chlorine and bromine atoms from organic molecules carrying halogens on neighboring carbons, restoring the carbon-to-carbon double bond and regenerating alkenes, the feedstock chemicals behind everything from pharmaceuticals to plastics. That reaction is usually driven by heat or additional processing steps. It also did not occur in the phosphorus version of the same molecule, which has an equivalent electron count, indicating that germanium is not simply a heavier stand-in for phosphorus but has chemistry of its own. "This research shows that catalytic reactions that depended on transition metals can also be achieved with main-group elements such as germanium," Hwang said. He added that he expects the approach to be applied broadly in developing next-generation catalysts for cleaner and more efficient chemical processes, as well as in improving battery and fuel cell performance. The first authors were KAIST postdoctoral researchers Kim Sung-gyu and Oh Jin-rok, with Choi Dae-eui, a combined master's and doctoral student at Pohang University of Science and Technology, where Hwang taught until this year. The National Research Foundation of Korea funded the work through the Ministry of Science and ICT and the Ministry of Education, with additional support from the Samsung Science and Technology Foundation. (Reference Information) Journal/Source: Chem Title: Germanium ligand redox cooperativity: A key to ambiphilicity and switchable two- and four-electron transfer Link/DOI: https://doi.org/10.1016/j.chempr.2026.103127 July 22, 2026 10:48 -
Yosu Begins Major Restructuring in Petrochemical Industry with Ethylene Production Cuts The Yosu petrochemical complex, the largest in South Korea, is set to undergo significant restructuring to address supply overcapacity. Yeocheon NCC and Lotte Chemical will merge their operations to form a new entity, halting the operation of ethylene production facilities with an annual capacity of 1.39 million tons. In this process, companies will invest approximately 800 billion won in self-rescue efforts, while the government will provide over 700 billion won in financial, tax, and research and development support.The Ministry of Trade, Industry and Energy approved the Yosu No. 1 Petrochemical Business Restructuring Project submitted by Yeocheon NCC, Lotte Chemical, Hanwha Solutions, and DL Chemical on July 20, and reported it to the Ministerial Meeting on Industrial Competitiveness on July 22. This marks the second approved petrochemical restructuring case following the Daesan No. 1 project involving HD Hyundai Oilbank, HD Hyundai Chemical, and Lotte Chemical in February.The core of this restructuring is to consolidate the scattered basic materials and downstream businesses in the Yosu area into a single entity. Lotte Chemical will physically separate its naphtha cracking facility (NCC) and basic materials businesses, including polyethylene (PE) and polypropylene (PP), at the Yosu plant. Hanwha Solutions and DL Chemical will contribute their respective downstream businesses, including PE and adhesives and coatings resins, to the new entity formed by merging with Yeocheon NCC.During the three-year restructuring period, Yeocheon NCC will suspend operations at two ethylene production facilities, reducing production capacity by 1.39 million tons annually. The production facilities for low-value general products will also be shut down, while the operational efficiency and profitability of the remaining facilities will be improved.Companies will undertake self-rescue efforts and investments totaling around 800 billion won. Shareholders of Yeocheon NCC, Hanwha Solutions, and DL Chemical, will conduct a capital increase of 272.5 billion won each, totaling 545 billion won, to repay existing debts of Yeocheon NCC. An additional 253.2 billion won will be invested to stabilize the supply chain and implement the restructuring, including building infrastructure and transitioning to high-value products.The government will activate a support package of over 700 billion won through a joint effort of relevant ministries. Bond financial institutions will provide 450 billion won in new funding and defer repayment obligations to support facility integration and the transition to high-value products. The Korea Trade Insurance Corporation will expand import insurance support worth 200 billion won, offering discounts of up to 30% on import insurance premiums and doubling guarantee limits.Tax burdens from corporate splits, mergers, and asset transfers will also be reduced. The tax deferral period for asset sales will be extended, and the limit for carrying forward losses will be increased, while acquisition and registration taxes will be reduced by up to 100%. Tariffs on imported naphtha and crude oil for naphtha production will remain exempt until the end of this year. The government will also support the simplification of licensing procedures and relax requirements for employment retention subsidies and retraining for current employees.Among the R&D projects submitted by approved restructuring companies, three essential long-term promising projects will receive support starting this year. Additionally, large-scale R&D projects aimed at transitioning to high-value and eco-friendly products will be promoted, encouraging new investments in these areas.The government anticipates that the restructuring will alleviate supply overcapacity and enhance production efficiency and profitability. The new entity plans to shift its business structure towards high-value and eco-friendly products, such as low-density polyethylene (LDPE) for medical use and polyolefin elastomers (POE) used in medical, food, and hygiene adhesive applications.Furthermore, the Ministry of Trade, Industry and Energy expects that once the integrated operations and self-rescue efforts are implemented, the operating profit, which has been in the red, will turn to black after the restructuring period, significantly reducing the debt ratio.The government plans to swiftly advance discussions on restructuring in the Ulsan region, following Daesan and Yosu. A comprehensive plan for the chemical industry, focusing on stabilizing the petrochemical supply chain, transitioning to high-value and eco-friendly products, and supporting local economies and employment, will be developed in the second half of this year.Moon Shin-hak, Deputy Minister of the Ministry of Trade, Industry and Energy, stated, The proactive and voluntary restructuring, which is a path never taken before, will serve as an important milestone in industrial policy. I express my gratitude to all companies that have pushed forward with the restructuring project despite challenging domestic and international conditions. The government will support the implementation of the restructuring plan with a sense of responsibility. He added, For the restructuring of the petrochemical industry to succeed, it is necessary for all industrial complexes to participate without free-riding. We will do our best to ensure that our petrochemical industry can regain competitiveness and make a comeback by swiftly advancing discussions on restructuring in the Ulsan region, following Daesan and Yosu.* This article has been translated by AI. July 22, 2026 09:36
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Major Financial Groups See Gains While Regional Banks Struggle The performance of the four major financial groups and regional financial institutions is diverging significantly. While the large financial groups are benefiting from a booming stock market, particularly in their non-banking sectors, regional banks are expected to see a decline in profitability due to sluggish local economies and structural limitations.According to financial information provider FnGuide on July 21, the combined forecast for net profit in the second quarter of 2026 for KB, Shinhan, Hana, and Woori Financial is 5.778 trillion won. This represents a 7.3% increase compared to 5.3839 trillion won in the same period last year.In contrast, regional financial groups are expected to report the opposite trend. The forecast for net profit for the three regional financial groups—BNK, iM, and JB Financial—for the second quarter is 610.7 billion won, a 9.1% decrease from 671.8 billion won in the same period last year. If market expectations are confirmed, the net profit of the four major financial groups will exceed that of the three regional financial groups by more than nine times.Among regional financial groups, only JB Financial is expected to see an increase in net profit. JB Financials forecast for the second quarter is 212.6 billion won, up 2.4% from 207.7 billion won during the same period last year.iM Financial is projected to decrease from 154.3 billion won last year to 148.7 billion won, a 3.6% drop. BNK Financial is expected to see the largest decline, from 309.2 billion won to 249.4 billion won, a 19.4% decrease. Analysts attribute this to a one-time profit from the sale of BNK Digital Tower in Gangnam, Seoul, last year, which creates a challenging base effect for this year.The key factor distinguishing the performance of large financial groups from regional banks is the competitiveness of their non-banking sectors. With active trading in the domestic stock market and a recovering asset management market, large financial groups with securities firms have directly benefited.In contrast, regional financial groups are relatively focused on capital and insurance in their non-banking operations. The lower contribution of profits from securities subsidiaries means that the benefits of a booming stock market are less pronounced for regional banks compared to their larger counterparts.The ongoing struggles of the local economy are putting pressure on the profitability of regional financial institutions. These banks have a high proportion of loans to small and medium-sized enterprises and small business owners. However, the impact of high interest rates and inflation has dampened economic vitality in the region, leading to reduced demand for corporate financing and investment activity.Market analysts believe that the performance gap among financial groups is likely to continue in the second half of the year. While rising benchmark interest rates can increase banks interest income, regional financial groups face the dual burden of a loan structure centered on small businesses and a slowing local economy. Observers suggest that narrowing the gap with large financial groups in the short term will be challenging.Choi Jeong-wook, a researcher at Hana Securities, stated, “Some regional financial groups like iM Financial and BNK Financial are expected to fall short of market expectations. The losses from bond trading and stock valuation losses at capital companies may lead to a wider performance gap among financial groups than initially anticipated.”* This article has been translated by AI. July 22, 2026 07:04