Government to Lower Industrial Electricity Rates in Southern Regions
The government plans to reduce industrial electricity rates in regions with high power production to encourage local investments. In the southern regions, rates will decrease by up to 18 won per kilowatt-hour, while the southern metropolitan area, which has high electricity demand, will maintain current rates. This initiative aims to distribute electricity demand and alleviate the burden of constructing long-distance transmission networks.
On August 26, the Ministry of Climate, Energy, and Environment and Korea Electric Power Corporation held a public hearing at the KEPCO Southern Headquarters in Yeongdeungpo, Seoul, to unveil the design plan for the 'Regional Industrial Electricity Pricing System.'
The new pricing system will introduce a 'regional adjustment fee' as part of the rate structure. Areas with greater electricity supply capacity and those requiring policy consideration will see lower rates, reflecting transmission costs, self-sufficiency rates, and balanced growth factors.
According to the plan released, the country will be divided into four major regions based on electricity flow and transmission network structure. The Ministry of the Interior and Safety will combine this with a regional preference index and the status of industrial crisis areas to create a total of 11 subdivisions. Jeju will be excluded from this system due to its unique island characteristics.
Revisions to Property Tax for Non-Resident Homeowners
The government is revising its approach to the comprehensive real estate tax burden for non-resident homeowners, aiming to lower it from the initial tax reform proposal. After the ruling party raised concerns about differentiating tax burdens based on residency status, key elements of the reform plan are now under revision just 20 days after its announcement.
As of August 26, the Ministry of Finance is considering increasing the basic deduction for non-resident homeowners from the proposed 900 million won to a higher amount. Options include maintaining the current 1.2 billion won or aligning it with the 1.4 billion won deduction for resident homeowners.
The tax reform plan announced on August 3 proposed raising the basic deduction for resident homeowners from 1.2 billion won to 1.4 billion won while lowering it to 900 million won for non-resident homeowners. The intent was to focus tax benefits on those using their homes as primary residences while reducing benefits for investment properties.
The fair market value ratio will increase from the current 60% to 70% for both resident and non-resident homeowners by 2028, and the cap on the tax burden will rise from 150% to 200% of the previous year's tax amount. This means non-resident homeowners will face a significant increase in their tax burden due to the combination of reduced deductions and increased fair market value ratios.
Hyundai Aims for 5.55 Million Vehicle Sales by 2030
Hyundai Motor Company has unveiled its mid- to long-term strategy focused on enhancing its competitiveness in the automotive sector. Despite intensifying global competition and geopolitical threats, the company plans to pursue a segmented electrification transition while leveraging future businesses such as autonomous driving and robotics to boost profitability.
On August 26, during the '2026 CEO Investor Day' held at the Conrad Hotel in Yeouido, Hyundai announced its goal to launch 100 new models by 2030, aiming for annual sales of 5.55 million vehicles. This target represents an increase of approximately 1.39 million vehicles compared to this year's goal of 4.158 million, reflecting a growth rate of 33.5%.
Jose Munoz, CEO of Hyundai, stated, "Hyundai's fundamentals are stronger than ever. We will launch more models, provide more powertrain options to customers, and aggressively enter new vehicle segments and markets."
The core of the mid- to long-term strategy is the transition to electrification and localization. Specifically, the company plans to adopt a two-track approach, with hybrids (HEVs) in North America and electric vehicles (EVs) in Europe. In North America, Hyundai will introduce 10 new hybrid models, starting with the GV80 HEV, aiming to increase HEV sales to 50%. A range-extended electric vehicle (EREV) version of the Santa Fe is set to launch in the first half of next year.
Government Launches Regional Growth Engines in Five Areas
The government has selected regional 'growth engines' in five areas and is set to begin fostering them. Each region will have 3 to 4 growth engines linked to local strengths and large corporate investments, supported by a comprehensive package of financial, fiscal, and regulatory incentives.
On August 26, during the 10th Central-Local Cooperation Meeting chaired by President Lee Jae-myung at the Blue House, the Ministry of Trade, Industry, and Energy announced the 'Regional Growth Engine Development Plan Linked to Three Mega Projects.'
Since September of last year, the Ministry has been collecting demand from local governments and has held over 100 consultations to select these growth engines. Feedback from more than 600 companies and regional experts was also considered in the selection process, which was based on criteria such as corporate investment, regional strengths, growth potential, and alignment with national strategies.
The central region will focus on next-generation displays, semiconductors, high-value-added biopharmaceuticals, advanced batteries, and future defense and transportation systems as its growth engines. The plan aims to leverage existing advanced industrial foundations and R&D capabilities to develop the central region into a 'global hub for advanced strategic industries.'
Surge in Regulatory Corrections for Capital Increases This Year
This year, there has been a significant increase in regulatory corrections from financial authorities regarding capital increases by listed companies. This trend is attributed to a rise in cases where the plans for fund usage or effectiveness are unclear. As financial authorities tighten their review standards for capital increases, instances of companies retracting their plans are also on the rise.
As of August 26, the Financial Supervisory Service has issued 66 correction requests for securities registration statements related to capital increases, surpassing last year's total of 43 and the 56 requests made in 2024.
Specifically, among 15 listed companies that submitted securities registration statements for capital increases in the third quarter, six received 2 to 4 correction requests from the Financial Supervisory Service, while seven received one request. Only two companies did not receive any correction requests. Companies that finalized their issuance conditions this month also faced multiple corrections. Clobot submitted six corrections to its registration statement, while SensorView submitted three. Some companies, like SomeAge, went through four corrections but ultimately retracted their capital increase decision on August 5.
The trend of retracting capital increase plans is also increasing compared to previous years. As of August 26, the number of retracted capital increases through corrections stands at 23, including four from KOSPI and 19 from KOSDAQ, already exceeding last year's total of 22 (three from KOSPI and 19 from KOSDAQ).
* This article has been translated by AI.
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