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TL;DR:

• The situation is not good for Homeplus, which is undergoing corporate rehabilitation procedures. Two days before the deadline for approval of the rehabilitation plan (July 3), which will…
• Homeplus emphasized in a statement on the 1st, “All structural innovation activities that have been carried out since the start of rehabilitation procedures were approved by the Seoul…
• The reason the company came forward with such an explanation is because of the claims made by the Emergency Response Committee (hereinafter referred to as the Emergency Committee) for…

[Economist Reporter Ji-wan Lee] The situation is not good for Homeplus, which is undergoing corporate rehabilitation procedures. Two days before the deadline for approval of the rehabilitation plan (July 3), which will determine the company's fate, the conflict between stakeholders appears to have reached its peak.

Homeplus emphasized in a statement on the 1st, “All structural innovation activities that have been carried out since the start of rehabilitation procedures were approved by the Seoul Rehabilitation Court and were carried out through legal procedures.”

The reason the company came forward with such an explanation is because of the claims made by the Emergency Response Committee (hereinafter referred to as the Emergency Committee) for Homeplus product purchase loan victims. On this morning, the Emergency Committee held a press conference to submit a request for investigation into allegations of breach of trust at the Homeplus Yeongdeungpo branch in front of the Seoul Central District Prosecutors' Office in Seocho-gu, Seoul, and claimed, "Circumstances have been revealed in which the core rights of Homeplus, which were an obstacle to the sale and development financing of the Yeongdeungpo branch real estate worth 350 billion won, were sold at a low price of 10 billion won."

According to the Emergency Committee, through the lease agreement, Homeplus had the following rights: ▲long-term lease and 10-year extension right for the Yeongdeungpo branch, ▲right to request purchase (call option), ▲right to restrict sales to a third party, and ▲right to re-enter the store. However, the non-representative committee claims that these rights were deleted or weakened when Homeplus signed an additional lease agreement in May. In addition, the emergency committee also argued that the price for deleting existing Homeplus rights was specified at 10 billion won.

The company is completely denying the allegations raised by the emergency committee. Homeplus emphasized, “The negotiations regarding the lease contract for the Yeongdeungpo branch were made in consideration of all circumstances during the rehabilitation process,” and added, “We must stop pouring cold water on the efforts of Homeplus executives and employees who are doing their best for revival even in difficult situations by raising indiscriminate suspicions.”

He added, "The Yeongdeungpo branch is a loss-making store leased and operated by our company. Store development is carried out by the owner, not the lessee. The store owner sold the real estate for 350 billion won, distorting it into development value."

Meanwhile, the fate of Homeplus, which has been undergoing rehabilitation procedures since March of last year, will soon be decided. On the 30th of last month, the company submitted a revised rehabilitation plan to the Seoul Bankruptcy Court. This is because the Seoul Rehabilitation Court judged that the existing restructuring plan was not feasible. Homeplus requested 200 billion won in emergency operating capital (DIP) loans from Meritz Financial Group, a major creditor, to implement the rehabilitation plan, but it was virtually unsuccessful.

Source: https://economist.co.kr/article/view/ecn202607010054

TL;DR:

• Korea's revised Information and Communications Network Act takes effect on July 7, spelling out how the so-called "fake news" law will apply to large online platforms and high-traffic creators.
• The enforcement rules cover major online information producers, including accounts with at least 100,000 subscribers or an average of 100,000 monthly views over the previous three months.
• Platforms with more than 1 million daily users must run reporting and monitoring systems, while repeat handling failures for content already confirmed unlawful can trigger steep penalties.
• The article highlights free-speech and censorship concerns, as well as possible friction with U.S. tech firms such as Google and Meta.

Related Korean report: https://v.daum.net/v/20260508130538857

Source: https://www.koreatimes.co.kr/southkorea/society/20260701/koreas-fake-news-law-set-to-redraw-online-speech-rules

TL;DR:

• The won-dollar exchange rate exceeded the 1,550 won mark during the day, soaring to the highest level since the global financial crisis. Although the foreign exchange authorities have…
• In the Seoul foreign exchange market on the 1st, the won-dollar exchange rate opened at 1,549. 8 won, up 0.
• Looking at the first half of the year as a whole, the trend of prolonged high exchange rates is clear. The average weekly transaction exchange rate for the first half of this year was 1,484.

[Economist Reporter Kim Ki-ron] The won-dollar exchange rate exceeded the 1,550 won mark during the day, soaring to the highest level since the global financial crisis. Although the foreign exchange authorities have poured 50 trillion won worth of dollar volume into the market for half a year to protect the high exchange rate, it appears to be insufficient to prevent the strong dollar pressure and synchronization of the weakening yen due to concerns about additional tightening by the U.S. Federal Reserve (Fed). In the market, the possibility of exceeding the 1,600 won level due to the structural high exchange rate entering a phase is being discussed, and caution is being maximized.

In the Seoul foreign exchange market on the 1st, the won-dollar exchange rate opened at 1,549.8 won, up 0.4 won from the previous trading day's weekly trading closing price (1,549.4 won), and then increased early in the session, soaring to 1,551.7 won as of 9:30 a.m. Based on the previous day's closing price, it reached the highest level in about 17 years since March 6, 2009 (1,550.0 won) during the global financial crisis, and within a day, it settled back down to the 1,550 won level and is threatening the 1,560 won range.

Looking at the first half of the year as a whole, the trend of prolonged high exchange rates is clear. The average weekly transaction exchange rate for the first half of this year was 1,484.56 won per dollar, and the average for the second quarter was 1,501.64 won. This is the highest level since the first half of 1998 (1,494.80 won) during the foreign exchange crisis on a half-year basis and the first quarter of 1998 (1,596.88 won) on a quarterly basis. As the possibility of an interest rate hike by the U.S. Federal Reserve reignited, the dollar index, which shows the value of the dollar against the currencies of six major countries, rose above the 101 mark, and the yen-dollar exchange rate soared to the 162 yen level, the highest in 39 years and 6 months since December 1986, immediately after the Plaza Agreement, strongly encouraging the weakening of the won.

What is even more serious is the fact that the exchange rate rise is not slowing down despite the foreign exchange authorities' unprecedented large-scale market intervention. According to the ‘Foreign Exchange Market Stabilization Measures for the First Quarter of 2026’ announced by the Bank of Korea, the foreign exchange authorities’ net foreign exchange transaction volume in the first quarter was calculated to be -$13.628 billion (approximately KRW 19.1 trillion). The negative net transaction amount means that the authorities sold net dollars in their holdings to prevent a sharp rise in the exchange rate, and it is the fourth largest quarterly amount ever. When combined with the net selling amount in the fourth quarter of last year (-$22.467 billion), which was the highest ever, the amount of money the foreign exchange authorities have invested in defending the exchange rate over the past six months amounts to about $36.1 billion, or about 50 trillion won in Korean currency.

As the exchange rate was not fixed despite the government's injection of ammunition, it was diagnosed that a vicious cycle was formed in which the expansion of overseas investment by domestic people, the outflow of foreign funds, and companies' hoarding of dollars (demand for payment) overlapped. Some warn that if the U.S. Federal Reserve's austerity shackles are not lifted in the second half of the year, breaking the 1,600 won mark may become a fait accompli, and this will place a critical cost burden on overall domestic consumer prices through an increase in import prices. However, there is still optimism that the supply-demand imbalance will be somewhat alleviated as rebalancing demand at the end of the quarter in the second half of the year has come to an end and a large influx of dollars is expected following SK Hynix's listing on the U.S. stock depository receipt (ADR).

Meanwhile, even though the exchange rate threatens the Maginot Line, criticism is also raised that the Bank of Korea is increasing market anxiety by repeating its existing position that "the current level of foreign exchange reserves is not sufficient to cushion external shocks." As of the end of the first quarter, the Bank of Korea's net external debt (USD 365.5 billion) amounted to 19.5% of GDP, the ratio of short-term foreign debt to foreign exchange reserves (43.3%) was significantly lower than the 1997 foreign exchange crisis (286.1%) or the 2008 financial crisis (72.4%), and the current account surplus is solid. However, as foreign exchange reserves decreased to $426.99 billion as of the end of May and the $430 billion level collapsed, voices calling for a more specific and realistic diagnosis and signal from the Bank of Korea regarding the hit to the real economy are gaining momentum.

Source: https://economist.co.kr/article/view/ecn202607010032

TL;DR:

• The value of the Japanese yen fell to the high 161 yen per dollar level, hitting the lowest level in about 39 and a half years. As the dollar continues to strengthen due to expectations…
• According to the Nippon Keizai Shimbun and Bloomberg News on the 30th, the dollar-yen exchange rate in the New York foreign exchange market rose to 161. 98 yen at one point during the day.
• The market believes that the robust performance of the U. S.

[Economist Reporter Park Jae-woo] The value of the Japanese yen fell to the high 161 yen per dollar level, hitting the lowest level in about 39 and a half years. As the dollar continues to strengthen due to expectations of an interest rate hike in the United States, and even the interest rate hike by the Bank of Japan (BOJ) fails to reverse the weakening yen, market caution is growing over the possibility of the Japanese government's additional intervention in the foreign exchange market.

According to the Nippon Keizai Shimbun and Bloomberg News on the 30th, the dollar-yen exchange rate in the New York foreign exchange market rose to 161.98 yen at one point during the day. This exceeds the 161.95 to 161.96 yen recorded in July 2024, when the Japanese government intervened in the market to protect the exchange rate, and the value of the yen fell to the lowest level in about 39 and a half years since December 1986.

The market believes that the robust performance of the U.S. economy and expectations of additional interest rate hikes are driving the dollar's strength. Recently, as employment, consumption, and economic indicators in the United States have been better than expected, coupled with concerns about rising prices due to the situation in the Middle East, predictions have spread that the U.S. Federal Reserve (Fed) will maintain a tightening stance for the time being or raise interest rates further within the year.

On the other hand, the Bank of Japan is pushing to normalize the ultra-easing policy that has been in place for about 10 years and raised the policy interest rate to 1%, the highest since 1995, on the 16th of this month, but it appears to be insufficient to prevent the weakening of the yen. There is analysis in the market that pressure to sell the yen is continuing as awareness spreads that the rate of interest rate increase is not fast enough as the real interest rate reflecting prices is still low.

The weakening of the yen began in earnest from 2022. After Prime Minister Sanae Takaichi took office last year, the prospect that the monetary easing policy would be maintained increased the selling of the yen, and after March of this year, the weakening trend continued as the preference for the dollar, a safe asset, strengthened due to the war with Iran. Recently, China's strengthening of export controls targeting Japanese companies and institutions is also cited as a factor that has put pressure on the value of the yen.

Previously, the Bank of Japan implemented large-scale quantitative easing in 2013 to avoid long-term deflation, but the trade deficit became entrenched and even the funds earned from the current account surplus were not returned to the domestic market as they led to reinvestment overseas. Maki Ogawa, senior analyst at Sonae Financial Group, said, “Japan has changed from a product exporter to a country that makes money through overseas investment,” and added, “It is difficult to expect the yen to strengthen in a situation where capital continues to flow overseas.”

The burden on the Japanese economy is increasing due to the decline in the value of the yen. The low yen has a positive effect on the stock market by increasing the price competitiveness of exporting companies, but as the cost of imports such as crude oil and natural gas, paid in dollars, increases, it raises living prices such as food and electricity bills, increasing the burden on consumers.

The Japanese government intervened in the foreign exchange market by investing a total of 11.73 trillion yen from the end of April this year to the end of last month, but was unable to reverse the weakening yen. Finance Minister Satsuki Katayama recently said he was prepared to take "bold action" to curb excessive speculative movements in the foreign exchange market, hinting at the possibility of further intervention.

Source: https://economist.co.kr/article/view/ecn202606300011

TL;DR:

• Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 30th that it met with global financial company Morgan Stanley to explore future business…
• The meeting held at the Korea Investment & Securities headquarters in Yeouido, Seoul this morning was attended by key executives including Kim Seong-hwan, CEO of Korea Investment &…
• Through this cooperation, Korea Investment & Securities is preparing to launch Morgan Stanley Management's representative fund, which has proven its performance through many years of…

[Economist Reporter Lee Yong-woo] Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 30th that it met with global financial company Morgan Stanley to explore future business cooperation plans.

The meeting held at the Korea Investment & Securities headquarters in Yeouido, Seoul this morning was attended by key executives including Kim Seong-hwan, CEO of Korea Investment & Securities, Mike Levin, head of Asia at Morgan Stanley Management, and Seung-soo Han, head of Morgan Stanley Korea. The two companies shared this year's business direction and mid- to long-term strategies, while discussing various ways to cooperate, including jointly launching global products for domestic investors.

Through this cooperation, Korea Investment & Securities is preparing to launch Morgan Stanley Management's representative fund, which has proven its performance through many years of operation.

This is the first case in which Morgan Stanley Management's financial products are launched in the domestic retail market, and other high-quality financial products of Morgan Stanley Management are planned to be introduced one after another. The goal is to go beyond simple product supply and strengthen the bridge role so that domestic investors can easily access professional asset management services from global financial companies.

Morgan Stanley is a global financial group that engages in the world's largest three businesses: investment banking, asset management, and asset management. Morgan Stanley Management, the group's asset management division, has competitiveness in a variety of areas, including stocks, bonds, and multi-asset, as well as exchange traded funds (ETFs), private equity funds (PE), infrastructure, and hedge funds.

This cooperation is expected to serve as an opportunity to further expand access to global blue-chip assets for domestic investors.

Kim Seong-hwan, CEO of Korea Investment & Securities, said, “As the demand for global asset allocation from domestic investors is rapidly expanding, it is important to provide differentiated investment opportunities by strengthening cooperation with world-class financial institutions. Through cooperation with Morgan Stanley Management, we will provide customers with easier access to global blue-chip assets and advanced investment strategies, and we will continue to expand our global partnerships in the future to further enhance our asset management competitiveness.”

Source: https://economist.co.kr/article/view/ecn202606300047

TL;DR:

• Wemade announced on the 30th that its largest shareholder, Chairman Park Kwan-ho, signed a contract to sell shares worth about 920 billion won.
• Wemade announced that it had signed a stock purchase agreement (SPA) to sell all of Wemade shares held by Chairman Kwan-ho Park. The total transaction amount is approximately 920 billion…
• NeoPulse is an investment platform company 100% owned by Shengsong Investment, a Hong Kong-based investment management company, and is known to have a close relationship with Alibaba.

[Economist Reporter Won Tae-young] Wemade announced on the 30th that its largest shareholder, Chairman Park Kwan-ho, signed a contract to sell shares worth about 920 billion won.

Wemade announced that it had signed a stock purchase agreement (SPA) to sell all of Wemade shares held by Chairman Kwan-ho Park. The total transaction amount is approximately 920 billion won. The acquisition is led by investment platform ‘Neopuls’. Through this transaction, Neopulse holds a 40.25% stake in Wemade, becoming the largest shareholder.

NeoPulse is an investment platform company 100% owned by Shengsong Investment, a Hong Kong-based investment management company, and is known to have a close relationship with Alibaba.

Neopulse cited Wemade's top-level MMORPG development capabilities and the strong competitiveness of its flagship IP, 'MIR', in China as the main reasons for its investment. In the future, Neopulse plans to pursue the development of new global games, including the Chinese market, and to drive sustainable growth by diversifying and advancing its IP business model through cooperation with leading Chinese IT companies and game developers and publishers.

This transaction was promoted around the joint vision of ‘evolution into AI-based future games’ and ‘acceleration of expansion into the Chinese market’. Under the belief that AI will fundamentally change the gaming industry, both companies plan to simultaneously improve content quality and user experience by actively introducing cutting-edge AI technology across game development, next-generation graphics, digital humans, and live services.

The corporate value of KRW 920 billion reflects the continued profit-generating power and value of Mir IP in China, which has been proven through subsidiaries such as ChuanQi IP, while also reflecting future growth potential due to AI integration and global distribution synergy.

An official from Wemade said, "The future game market will be determined by how effectively AI is utilized. This partnership will be a key opportunity to secure a leading position in the next-generation game market based on strong consensus and trust. Wemade will continue to meet market expectations through a thorough localization strategy and strengthening AI-based game development capabilities."

Source: https://economist.co.kr/article/view/ecn202606300045

TL;DR:

• Starting in the second half of this year, Chinese BYD will be excluded from the electric vehicle subsidy program. It is the only company among passenger electric vehicle manufacturers…
• The Ministry of Climate, Energy and Environment announced the results of the ‘Evaluation for Selecting Performers of the Electric Vehicle Distribution Project’ conducted on electric…
• In the passenger electric vehicle category, 10 companies, including Hyundai Motor and Kia, Renault, KG Mobility, Tesla, and BMW, were selected. In contrast, BYD became the only model…

Starting in the second half of this year, Chinese BYD will be excluded from the electric vehicle subsidy program. It is the only company among passenger electric vehicle manufacturers eligible for this year’s subsidies to be excluded.

The Ministry of Climate, Energy and Environment announced the results of the ‘Evaluation for Selecting Performers of the Electric Vehicle Distribution Project’ conducted on electric vehicle manufacturers and importers on the 30th. This year’s newly introduced evaluation assesses five categories: technological development capabilities, supply chain contribution, response to environmental policies, post-management sustainability, and safety management. Only companies scoring 60 points or higher out of 100 are recognized as eligible for the subsidy program. A total of 35 companies applied for the evaluation, and 27 met the criteria.

In the passenger electric vehicle category, 10 companies, including Hyundai Motor and Kia, Renault, KG Mobility, Tesla, and BMW, were selected. In contrast, BYD became the only model among existing passenger electric vehicles eligible for subsidies to be excluded. Nine companies were selected in the cargo vehicle category, and eight in the bus category. The evaluation process concluded the previous day, and the results were announced on the day before the official implementation.

However, BYD vehicles applied and registered by this day are still eligible for subsidies. This subsidy evaluation was introduced to ensure that only domestic electric vehicle ecosystem-contributing manufacturers and importers receive purchase subsidies. However, when the ministry disclosed the evaluation criteria in March, there were criticisms that it discriminated against imported vehicles. In response, the ministry significantly lowered the passing criteria from 80 out of 120 points to 60 out of 100 points last month. BYD failed to meet the 60-point threshold in this evaluation and was not selected for the subsidy program.

Source: https://www.chosun.com/english/industry-en/2026/06/30/D7IDE5EC4VD6NEBB45MCUNCKCU/

TL;DR:

• On the 30th, President Lee Jae-myung dismissed some claims of 'regional discrimination' surrounding the government's announcement of a project to create a semiconductor cluster in the…
• At the Cabinet meeting and emergency economic review meeting presided over at the Blue House on this day, President Lee said, "If you look at this issue alone, it is true that there is a…
• President Lee explained in three dimensions the historical context of the imbalance between Yeongnam and Honam and the location conditions for high-tech industries. President Lee said,…

[Economist Reporter Kim Ki-ron] On the 30th, President Lee Jae-myung dismissed some claims of 'regional discrimination' surrounding the government's announcement of a project to create a semiconductor cluster in the southwestern region, saying, "If you compare the amount of investment accumulated historically, it is nothing more than a bloodshed."

At the Cabinet meeting and emergency economic review meeting presided over at the Blue House on this day, President Lee said, "If you look at this issue alone, it is true that there is a bit more investment in the Honam region," and asked for understanding from the State Council members and the public.

President Lee explained in three dimensions the historical context of the imbalance between Yeongnam and Honam and the location conditions for high-tech industries. President Lee said, "It is a painful past, but it is a clear fact that there was discrimination between the Young and Honam regions. Although the Honam region has suffered a lot through exclusion and discrimination, it has actually turned out to be a blessing in disguise and water, power, and land have been managed well."

He added, “Power, water, and land are the most important things in the semiconductor industry, but these are no longer available in the metropolitan area.” He added, “At the time, the artificial intelligence (AI) craze necessitated large-scale investment, and we were able to make this decision because the Honam area had the space.” The purpose is to provide an opportunity to naturally alleviate the imbalance in line with changes in the new industrial environment, rather than through artificial correction.

The meaning of the ‘Three Mega Projects for Korea’s Great Leap Forward’ announced by the government the day before was also emphasized again. President Lee defined this project as "the key to overcoming the unipolar system in the metropolitan area that creates discrimination, exclusion, and imbalance, while opening the era of 'growth for all' so that the entire country can enjoy equal growth opportunities."

He then expressed his gratitude to the businessmen who chose to invest domestically rather than overseas and promised, "The government will actively support you to ensure that your decision is not the wrong one." Each ministry was asked to provide preemptive and full support through close cooperation with local governments, and the political circles were asked to cooperate for the national interest.

Meanwhile, at the Cabinet meeting on this day, there was also discussion on regional arrangements along with comments from State Council members who supported the government's announcement.

Minister of Unification Chung Dong-young said, "If June 29 40 years ago was the day when democracy was achieved through the power of the people, then yesterday June 29 was the day when the historic declaration was made to establish the Republic of Korea as a superpower," and evaluated President Lee's '90-degree bow' at the policy announcement ceremony the previous day as a meaningful move toward corporate representatives and the people.

In response, President Lee responded with a smile, saying, "It also sounds like the intention is to pay more attention to Jeonbuk," and then added, "Regions that think they were left out of yesterday's policy announcement may be disappointed, but we plan to supplement it through additional measures," indicating that follow-up supply policies and regional supplementary measures will continue in the future.

Source: https://economist.co.kr/article/view/ecn202606300016

TL;DR:

• As the battle between the ruling and opposition parties over the government's plan to create a second semiconductor cluster in the Honam region is turning into a mudslinging battle,…
• According to the political and financial investment industry on the 27th, President Lee Jae-myung directly responded to the opposition party's criticism by saying on his In particular,…
• President Lee pointed out, "This may seem that way to those who politically abused national policies and forced corporations by twisting their wrists," and added, "I hope they will not…

[Economist Reporter Kim Ki-ron] As the battle between the ruling and opposition parties over the government's plan to create a second semiconductor cluster in the Honam region is turning into a mudslinging battle, President Lee Jae-myung has taken on the challenge head-on by waging an all-out public opinion battle through social media six times a day alone.

According to the political and financial investment industry on the 27th, President Lee Jae-myung directly responded to the opposition party's criticism by saying on his In particular, when claims were raised that the large-scale investment in Honam by the so-called 'Samjeonix', including Samsung Electronics and SK Hynix, was a pressure on private companies, they expressed their displeasure.

President Lee pointed out, "This may seem that way to those who politically abused national policies and forced corporations by twisting their wrists," and added, "I hope they will not slander others by assuming that others will do the same based on their past actions or experiences." He continued, "To be precise, this decision was made by the CEOs who judged it to be beneficial to the company based on the creation of a business environment such as the government's water, power, land, infrastructure, human resource training, and establishment of settlement conditions, and the persuasion and requests of public officials."

Despite pressure on the feasibility of location selection, the company presented its logic by highlighting its infrastructural strengths. When former People Power Party lawmaker Yoo Seung-min raised the question on Facebook, "Why Honam?", President Lee emphasized, "In the semiconductor industry, in addition to water, electricity, especially renewable energy such as solar power and wind power, is important because of 'RE100'." He added, "The metropolitan area is already saturated, and the southwest coast is where renewable energy is most abundant." He also added, “Underdeveloped Honam is the best for stable, earthquake-free and cheap land.”

Regarding the issue of water shortage raised by some, he said, "High-tech companies competing for the first or second place in the world are not foolish enough to plan to build large-scale factories without review in areas where water, an essential element, is lacking," and added, "There is as much water in Honam as in Yeongnam or the metropolitan area."

President Lee raised the level of public opinion by posting a message late at night, around 11 p.m. Citing the fact that the Gwangju and Jeonnam regions received the highest evaluation in key areas such as infrastructure and business feasibility during the Ministry of Trade, Industry and Energy's semiconductor specialized complex competition in 2023 during the Yoon Seok-yeol administration, he directly responded, "This has already been officially confirmed by the People Power Party government, so I hope that People Power Party lawmakers will at least refrain from making strange remarks about the location of the Honam semiconductor industry."

On this morning, when President Lee left a message saying, "You can see a pig in a pig's eyes," and interpretations were divided, Blue House Chief Spokesperson Kang Yoo-jeong responded by saying, "This is related to a semiconductor factory, and please be careful of excessive interpretations." Kim Yong-beom, head of the Blue House Policy Office, also added his support through Facebook, saying, "The production capacity required in the AI ​​era is difficult to handle with just one cluster," and "The production capacity of a fab (semiconductor production plant) is king."

Meanwhile, the opposition party, including Rep. Ahn Cheol-soo of the People Power Party, is raising its eyebrows, saying, "The president does not have the authority to order investment of hundreds of trillions of won in private companies," and calling it "the behavior of criminals who are abusing their power." The government plans to officially announce its large-scale local investment plan at the Blue House on the 29th by holding the ‘Public Reporting Session on Korea’s Three Major Leap Forward Mega Projects’ attended by SK Group Chairman Chey Tae-won and Samsung Electronics Chairman Lee Jae-yong.

Source: https://economist.co.kr/article/view/ecn202606280003

TL;DR:

• President Lee Jae Myung and first lady Kim Hea Kyung held a luncheon event with spouses of Democratic Party of Korea lawmakers at the Cheong Wa Dae state guest house on June 22. This is…
• The luncheon was attended by approximately 110 spouses of ruling party lawmakers. Most spouses attended, excluding those who were unmarried or had personal circumstances preventing their…
• The event proceeded with attendees taking turns to speak. More than 50 people spoke during the nearly two-hour luncheon, with the first speaker being the wife of Rep.

President Lee Jae Myung and first lady Kim Hea Kyung held a luncheon event with spouses of Democratic Party of Korea lawmakers at the Cheong Wa Dae state guest house on June 22. This is the first time since President Lee’s inauguration that Cheong Wa Dae has hosted an event exclusively for ruling party spouses. The luncheon, which lasted nearly two hours, was described as generally warm and convivial. However, some attendees mentioned internal party conflicts ahead of the June 3 local elections and the August 17 party convention, leading to subtle tensions, according to reports.

The luncheon was attended by approximately 110 spouses of ruling party lawmakers. Most spouses attended, excluding those who were unmarried or had personal circumstances preventing their participation. The head table, where President Lee and first lady Kim were seated, reportedly included the wife of Prime Minister Kim Min-seok and the wife of former Democratic Party leader Jung Chung-rae. Other tables were arranged based on the seniority of the lawmakers, with many husbands of female lawmakers also in attendance.

The event proceeded with attendees taking turns to speak. More than 50 people spoke during the nearly two-hour luncheon, with the first speaker being the wife of Rep. Song Young-gil, who returned to the National Assembly after a by-election in June. Rep. Song is expected to challenge for the party leadership at the August convention.

The wives of Prime Minister Kim Min-seok and former leader Jung Chung-rae, both potential candidates for the party leadership, were seated at the head table but did not speak until the first lady intervened. First lady Kim Hea Kyung suggested, “Shouldn’t the prime minister’s wife and the former leader’s wife also say a few words?” Both then delivered remarks wishing for party unity and development.

Later in the event, spouses of multi-term lawmakers expressed concerns about the party’s direction following the June local elections. According to multiple attendees, one spouse of a multi-term lawmaker said, “The party shouldn’t be so divided just months after the administration began.” Others shared their experiences from the election campaign, noting regret over the loss in the Seoul mayoral race. At the time, the pro-Myung faction within the party criticized former leader Jung Chung-rae for the election results, while the pro-Cheong faction defended him as unfairly targeted.

A spouse from the pro-Cheong faction then defended Jung, stating, “The election results shouldn’t be viewed so negatively.” Attendees reportedly joked, “Husbands and wives share the same political messages” and “It’s no wonder they say the couple’s relationship is strong.” One attendee remarked, “The atmosphere wasn’t hostile, but differing opinions naturally emerged.”

President Lee joined the event toward the end and did not hear all the remarks. He reportedly emphasized the need for party unity, stating, “The party must avoid division and pursue integration.” First lady Kim discussed Korea’s global standing and interest in popularizing Korean cuisine, based on her recent European trip. After the luncheon, spouses lined up to take commemorative photos with her.

A ruling party official commented on the spouses’ political discussions at the Cheong Wa Dae luncheon, saying, “This isn’t the first time they’ve met, so the atmosphere was relaxed.” The Democratic Party operates a spouses’ association, with the spouse of the floor leader serving as secretary-general, and members engage in volunteer activities together. However, one attendee evaluated, “Given the escalating conflict between the pro-Myung and pro-Cheong factions ahead of the convention, there was considerable tension throughout the event.” Another attendee told their spouse, a lawmaker, “Even the luncheon meeting had the smell of the upcoming convention.”

Source: https://www.chosun.com/english/national-en/2026/06/27/RR4O42HXGRCRJNNYGCMLDB6TDA/

TL;DR:

• 106 days after the government introduced the maximum oil price system, the supply prices of gasoline, diesel, and kerosene are lowered by 150 won per liter (L). Accordingly, the price of…
• The Ministry of Trade, Industry and Energy announced on the 26th that it had decided to lower the 7th maximum oil price by 150 won per liter, effective from midnight on the 27th. As a…
• The maximum price of oil places an upper limit on the supply price that oil refineries pass to gas stations. Gas stations determine the final consumer price by adding taxes, distribution…

[Economist Reporter Hye-ri Lee] 106 days after the government introduced the maximum oil price system, the supply prices of gasoline, diesel, and kerosene are lowered by 150 won per liter (L). Accordingly, the price of gas at gas stations is expected to drop from the 2,000 won range to the 1,800 won range.

The Ministry of Trade, Industry and Energy announced on the 26th that it had decided to lower the 7th maximum oil price by 150 won per liter, effective from midnight on the 27th. As a result, the 7th maximum oil price will drop to 1,784 won for gasoline, 1,773 won for diesel, and 1,380 won for kerosene.

The maximum price of oil places an upper limit on the supply price that oil refineries pass to gas stations. Gas stations determine the final consumer price by adding taxes, distribution costs, and margins.

As the high factory prices of 1,934 won for gasoline and 1,923 won for diesel have been maintained for nearly three months, the gas station prices actually faced by consumers have rarely fallen from the 2,000 won range. However, as the maximum price of oil is lowered by 150 won, the selling price at gas stations is expected to drop to the 1,800 won range.

The reason the government lowered the maximum price is because international oil prices have stabilized at the level before the Middle East war. After the recent signing of the Memorandum of Understanding (MOU) between the United States and Iran, concerns about supply from the Middle East have been greatly alleviated, with oil tanker passage through the Strait of Hormuz increasing. Due to this effect, international oil prices fell to the low to mid $70 range per barrel. International petroleum product prices have also fallen significantly compared to the beginning of this month.

The government took this measure with domestic price stability as its top priority. The policy is to reduce pressure on rising prices by preemptively lowering oil prices, which are directly related to the lives of ordinary people.

However, it is expected that it will take some time for consumers to feel the actual price reduction. Since gas stations usually receive products every two to three weeks, price cuts are expected to be reflected only when expensive inventory at the previous stage is exhausted first.

An official from the Ministry of Trade, Industry and Energy said, “The government, consumer groups, and public institutions will jointly monitor the prices and volumes of about 10,000 gas stations across the country and carry out high-intensity on-site inspections through a ‘pan-ministerial market inspection team’ to detect illegal gas stations and take strict action.”

Source: https://economist.co.kr/article/view/ecn202606270003

TL;DR:

• National Assembly Speaker Cho Jeong-sik unilaterally notified the People Power Party via fax on the 26th of a proposed composition for the National Assembly’s standing committees without…
• Jang Hyun-joo, a spokesperson for the National Assembly Speaker’s Office, stated during a briefing on the 26th that “since the People Power Party did not submit its committee member list…
• The People Power Party immediately criticized the move, asking, “Were President Lee Jae Myung’s remarks about the June 3 local elections being a warning to the administration merely…

National Assembly Speaker Cho Jeong-sik unilaterally notified the People Power Party via fax on the 26th of a proposed composition for the National Assembly’s standing committees without prior consultation. He added that any objections should be submitted by the 29th. This move pressured the opposition amid stalled negotiations over committee leadership roles, including the chairmanship of the Legislation and Judiciary Committee. The People Power Party condemned the decision, calling it an attempt to “ignore the minority party and unilaterally control the National Assembly.” Speaker Cho, elected as an independent after previously belonging to the Democratic Party of Korea, justified the action as a necessary step to finalize the committee structure under his authority.

Jang Hyun-joo, a spokesperson for the National Assembly Speaker’s Office, stated during a briefing on the 26th that “since the People Power Party did not submit its committee member list by noon, we sent an official document appointing its members to the standing committees in accordance with the National Assembly Act.” Speaker Cho had initially requested the People Power Party to submit its list by the 26th but, facing delays, proceeded to assign its members to committees unilaterally. The document also requested feedback on the list by the 29th.

The People Power Party immediately criticized the move, asking, “Were President Lee Jae Myung’s remarks about the June 3 local elections being a warning to the administration merely crocodile tears?” Jeong Jeom-sik, the party’s floor leader, held an emergency briefing, declaring, “Is this how the National Assembly operates?” and “Can the Speaker of the Republic of Korea’s National Assembly act this way?” He accused Speaker Cho of “setting arbitrary deadlines, pressuring us to submit lists, and then unilaterally assigning members via fax when we refused to comply,” calling it “dictatorship.” Speaker Cho had previously extended the deadline for submissions to noon on the 26th after initially requesting lists by the 24th. The Democratic Party submitted its list on the 24th.

Earlier that day, the floor leaders and chief deputies of both parties held a 2+2 meeting but failed to resolve disagreements over the Legislation and Judiciary Committee chairmanship within 20 minutes. The committee serves as the final gatekeeper for bills passed by other standing committees. The Democratic Party insists on retaining the chairmanship to advance key legislation, including the “special counsel bill to investigate alleged fabricated indictments,” during the latter half of the session. The People Power Party argues that, given past controversies under former chair Choo Mi-ae during the first half of the session, it should now hold the position, as it has traditionally been the opposition’s role. The Democratic Party also claims leadership of economic-related committees, such as the Strategy and Finance Committee and the Political Affairs Committee.

The Democratic Party plans to proceed with a unilateral resolution. Han Byung-do, the party’s acting leader and floor leader, requested a plenary session from Speaker Cho and told reporters, “The People Power Party has given no answer until today. We cannot wait any longer.” He added, “Starting on the 29th, all Democratic Party members will enter emergency standby mode to ensure the committee structure is finalized without fail this month,” pressuring the opposition. Regarding the possibility of unilateral action, Jeong, the floor leader, stated, “We have convened a general meeting of lawmakers for 2 p.m. on the 29th to report the situation and discuss collective resistance strategies.”

Source: https://www.chosun.com/english/national-en/2026/06/26/QJHBCWMTRRBZNEUQODU4LZRWEA/

TL;DR:

• Former first lady Kim Keon-hee was sentenced to seven years in prison in the first trial for allegedly receiving high-value gifts from businesspeople and public officials and exerting…
• Seoul Central District Court Criminal Division 21 (Judge Cho Soon-pyo) on the 26th sentenced Kim to seven years in prison and ordered the confiscation of 64. 8 million Korean won.
• The court stated, “This case is a so-called ‘selling of official positions for personal gain’ incident where numerous personnel and business requests were exchanged for high-value gifts…

Former first lady Kim Keon-hee was sentenced to seven years in prison in the first trial for allegedly receiving high-value gifts from businesspeople and public officials and exerting influence in personnel and business requests. The court noted, “She unhesitatingly accepted gifts that ordinary citizens would struggle to obtain even once in their lifetime.”

Seoul Central District Court Criminal Division 21 (Judge Cho Soon-pyo) on the 26th sentenced Kim to seven years in prison and ordered the confiscation of 64.8 million Korean won. It also confiscated paintings by artist Lee U-fan, a Van Cleef & Arpels necklace, a Tiffany brooch, a gold turtle storage box, and a Vacheron Constantin watch box.

The court stated, “This case is a so-called ‘selling of official positions for personal gain’ incident where numerous personnel and business requests were exchanged for high-value gifts under the status of a presidential spouse.” It added, “The fair public decision-making process was reduced to a transactional object for Kim’s personal gain.” The court further emphasized, “By exploiting her position as first lady as a means to pursue private interests, she fundamentally undermined the fairness of public office and public trust.”

Kim was indicted for receiving jewelry and luxury items worth 103.8 million Korean won, including a 55.6 million Korean won Van Cleef & Arpels necklace from Lee Bong-gwan, chairman of Seohee Construction, around the time former President Yoon Suk-yeol was elected. She also allegedly received a gold turtle and a replica of *Sehan-do* worth 2.65 million Korean won from former National Education Committee Chair Lee Bae-yong, and a Vacheron Constantin watch worth 39.9 million Korean won from robot dog entrepreneur Seo Sung-bin. The special counsel argued that these individuals sought Kim’s help in business or public appointments.

Kim is also accused of receiving a painting by Lee U-fan worth 140 million Korean won from former senior prosecutor Kim Sang-min in exchange for a nomination request, and accepting gifts worth 5.3 million Korean won, including a Dior bag from Pastor Choi Jae-young (Choi Abraham).

The court ruled that all gifts Kim received were direct compensation for requests related to the president’s duties. Kim’s defense claimed the gifts were exchanged through personal relationships or received upon request for proxy purchases, but this was rejected. The court criticized, “As the presidential spouse, a position where numerous requests and interests converge, she should have been particularly cautious and restrained. Instead, she repeatedly accepted gifts by treating her influence as a brokerage target.”

Lee Bong-gwan, chairman of Seohee Construction, who was tried alongside Kim for violating the Anti-Graft Act, received one year in prison, suspended for two years. Seo Sung-bin and former National Education Committee Chair Lee Bae-yong were each sentenced to ten months in prison, suspended for two years. Pastor Choi Jae-young was fined 8 million Korean won.

Kim’s legal team immediately announced plans to appeal. They argued, “The court overly expanded the interpretation of the benevolent nature of gifts and the scope of requests, recognizing compensation based solely on unfavorable circumstances.” They added, “While Kim reflects on receiving inappropriate gifts as first lady, she cannot agree with the court’s characterization of this as a ‘selling of official positions for personal gain’ case.”

Source: https://www.chosun.com/english/national-en/2026/06/26/H52X5OEQMBAZNETPHQ7QVNDFVQ/

TL;DR:

• In line with the recent stock market uptrend, demand for ‘debt investment’ (investment through borrowing) from individual investors has expanded again, and credit loans from banks are…
• According to the financial industry, the total household loan balance (excluding policy loans) of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) as of June 18…
• Considering this pace of increase, there are concerns that banks may prematurely exhaust the household loan growth target for this year submitted to the financial authorities. The five…

[Economist Reporter Kim Yun-ju] In line with the recent stock market uptrend, demand for ‘debt investment’ (investment through borrowing) from individual investors has expanded again, and credit loans from banks are rapidly increasing. In particular, as negative bank account balances, which are used as immediate investment funds, rapidly increased, major banks took preemptive measures such as reducing credit loan limits or restricting non-face-to-face sales.

According to the financial industry, the total household loan balance (excluding policy loans) of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) as of June 18 was KRW 646.192 trillion. Until the first quarter of this year, as new loans were restricted and repayments continued, the household loan balance decreased to KRW 639.3263 trillion, down KRW 5.8688 trillion from the end of the previous year. However, it rebounded to 639.9475 trillion won at the end of April, and then increased again in June, increasing by more than 6 trillion won in just two months.

Considering this pace of increase, there are concerns that banks may prematurely exhaust the household loan growth target for this year submitted to the financial authorities. The five major banks set a goal of managing this year's increase in household loans to within a total of 4.33 trillion won compared to the end of last year, but it is known that the current remaining capacity is only about 3.5 trillion won. Some banks are said to have already exceeded or are close to their internal targets.

What is especially noticeable is the increase in credit loans. The balance of personal credit loans from the five major banks amounted to KRW 108.3339 trillion as of June 18, an increase of approximately KRW 4 trillion from the end of April (KRW 104.3413 trillion). Among these, the rate of increase in personal credit limit loans (minus bank accounts) is more rapid. The negative account balance increased from KRW 39.6675 trillion at the end of April to KRW 41.489 trillion at the end of May, and then expanded to KRW 42.7919 trillion on June 18. This is an increase of over 3 trillion won in just one and a half months.

The stock market boom and rising housing prices are considered major factors stimulating the recent increase in household loans. In the financial world, it is believed that Minus Bank Account is often used as a window for investment funds during stock market booms due to the characteristic of allowing funds to be withdrawn and spent immediately without separate screening. The analysis is that this is due to the revival of demand for leveraged investments from individual investors, coupled with the recent upward trend in the domestic stock market.

The increase in other loans is steep, not only for the five major banks but also for all depository banks. According to the Bank of Korea’s ‘Financial Market Trends’, the balance of other loans from depository banks as of the end of May was 240.2 trillion won, an increase of 3.7 trillion won in one month. This is the largest increase in 5 years and 1 month since April 2021 (an increase of 11.8 trillion won). Other loans include general credit loans and negative bank account loans.

Park Min-cheol, deputy director of the Bank of Korea’s market management team, said, “Credit loans will show great volatility depending on stock market conditions,” and “it is difficult to predict future trends.” In addition, regarding the risk of debt investment, he added, “It is necessary to be aware that if stock prices are adjusted due to external shocks, stock price volatility may be amplified through reverse trading.”

As the burden of managing the total amount of household loans increased, banks began tightening credit loans. Starting June 26, Woori Bank limited personal credit loans to 100 million won per borrower. The limit for negative bank accounts, which was possible within the existing annual income range, has been reduced to 50 million won. Prior to this, Woori Bank also stopped accepting credit loans and non-face-to-face refinancing loans through the loan comparison platform from June 12th.

KB Kookmin Bank reduced the maximum limit for general credit loans to 100 million won from June 16, and also limited the limit for negative bank accounts to 50 million won. Previously, the maximum limit for each borrower was within the range of annual income. This is a measure to preemptively respond to the increase in household loans and maintain stable credit management. This measure implemented by Kookmin Bank will be applied temporarily until further notice. However, separate standards may apply to some products, such as microfinance products and policy loans.

Shinhan Bank also implemented a preemptive credit loan management plan on June 15 to respond to the growing trend of household debt. If the combined daily application volume for face-to-face and non-face-to-face credit loans exceeds internal management standards, non-face-to-face credit loan applications are restricted. For accounts with a negative balance exceeding 30 million won, the discount is reduced by up to 20% when the maturity is extended. However, products supporting the financially vulnerable, such as microfinance loans and win-win refinancing loans, are excluded.

Since June 12, Hana Bank has limited credit loans to high-income earners to a maximum of 100 million won, regardless of income. NH Nonghyup Bank has limited household credit loans to a maximum of 100 million won since June 19. The limit on negative bank accounts was also limited to a maximum of 100 million won, within half of annual income.

Internet-only banks, whose strengths lie in non-face-to-face sales, are no exception. Starting from June 22, Kakao Bank reduced the loan limit for negative bank accounts from the existing maximum of 240 million won to a maximum of 100 million won. From June 18, Toss Bank reduced the credit loan limit from a maximum of 300 million won to 100 million won, and also lowered the negative bank account limit from a maximum of 150 million won to 50 million won. K Bank temporarily stopped selling minus bank account products starting June 16th.

An official from the financial sector said, “With the recent stock market rebound and an increase in real estate transactions, demand for both credit loans and mortgage loans is increasing. As managing the total amount of household loans in the second half of the year has become more important, it is highly likely that the trend of raising the threshold for credit loans will continue for the time being.”

Source: https://economist.co.kr/article/view/ecn202606230038

TL;DR:

• The opposition bloc, led by the People Power Party, on the 25th uniformly criticized the estimated over 400 trillion Korean won investment plan by Samsung Electronics and SK Hynix in the…
• Twenty-five People Power Party lawmakers from the Daegu-Gyeongbuk region held a press conference, stating, “The government’s role is to create a fair environment where companies can make…
• The ‘Honam Semiconductor Cluster’ began to be actively pursued after President Lee Jae Myung said in December last year, “Please turn your attention to the southern regions rich in…

The opposition bloc, led by the People Power Party, on the 25th uniformly criticized the estimated over 400 trillion Korean won investment plan by Samsung Electronics and SK Hynix in the Honam region, calling it “regional discrimination.” The Democratic Party of Korea responded, “This is an attempt to incite regional conflict based on groundless claims.” However, as speculation arose that the semiconductor cluster would be established in the Gwangju-Jeonnam region, not only the Yeongnam region but also Gyeonggi Yongin and Jeonbuk, where existing projects are underway, immediately protested, escalating the issue into a nationwide regional conflict. Industry and business circles expressed concerns, asking, “Is the discussion of a national core strategic project, which should be approached with a long-term perspective, being distorted by political logic of ‘regional allocation’?”

Twenty-five People Power Party lawmakers from the Daegu-Gyeongbuk region held a press conference, stating, “The government’s role is to create a fair environment where companies can make the most competitive choices. (The Honam semiconductor investment) is reverse discrimination against the Yeongnam region,” and urged a “reconsideration from the beginning.” Mayor Kim Jang-ho of Gumi also proposed a support plan to supply industrial land at 1,000 Korean won per pyeong (3.3㎡) to attract a semiconductor factory. At the press conference, Mayor Kim said, “For the future of the semiconductor industry and balanced national development, the Gumi National Industrial Complex is the optimal location. At 1,000 Korean won per pyeong, it’s cheaper than items sold at Daiso.”

The ‘Honam Semiconductor Cluster’ began to be actively pursued after President Lee Jae Myung said in December last year, “Please turn your attention to the southern regions rich in renewable energy regarding future semiconductor investments.” The Semiconductor Special Act, proposed and passed in January by Democratic Party lawmaker Jeong Jin-uk, who represents Gwangju, includes provisions allowing the state to support up to 100% of water, electricity, and state-owned land exclusively in non-capital regions. This has led to criticism that the legislation was designed from the outset to attract the cluster to the Honam region.

The law is set to take effect in August, ahead of the Democratic Party’s national convention. President Lee Jae Myung is expected to announce on the 30th a public-private investment plan for next-generation advanced industries, including AI and robots, which will include the Honam semiconductor investment decision. Prime Minister Kim Min-seok, a pro-Lee contender for party leadership, is also expected to attend. People Power Party leader Jang Dong-hyeok wrote on Facebook, “Give me semiconductors, and I’ll drop Jung Chung-rae.” This suggests suspicions that the Cheong Wa Dae is trying to pour money into Honam, a key voting bloc ahead of the party leadership election, to secure votes for pro-Lee candidates. Independent lawmaker Han Dong-hoon said, “The decision on the semiconductor plant location should not be used as ammunition for the ‘Lee Jae Myung-Jung Chung-rae’ leadership battle.” Democratic Party deputy floor leader Ahn Do-geol stated at a policy coordination meeting, “The People Power Party is focusing on groundless criticism and inciting regional conflict by politicizing even voluntary and preemptive investment decisions made by companies for the future.”

However, conflicts also emerged within the ruling party over the Honam semiconductor project. Lawmaker Kim Eui-gyeom, who represents Jeonbuk, said, “To prevent the side effects of ‘Yongin monopolization’ from leading to ‘Gwangju monopolization,’ it is necessary to distribute the facilities.” The previous day, nine Democratic Party lawmakers from Jeonbuk, including Acting Leader Han Byung-do and Unification Minister Chung Dong-young, held a budget policy meeting at the National Assembly and announced, “We will respond collectively at the Jeonbuk level.” In the Chungcheong region, protests arose as rumors spread that if water for industrial use is insufficient in Gwangju-Jeonnam, it would be diverted from Chungcheong.

The ruling party also faced conflicts last year over the selection of the site for the ‘National AI Computing Center,’ a 2.5 trillion Korean won project to secure 50,000 GPUs. At the time, Gwangju, Jeonnam, and Jeonbuk competed, and it was finalized in Haenam Solar City, Jeonnam. Political circles in regions that failed to attract the center openly opposed the decision. A senior Democratic Party lawmaker said, “Following the Jeonnam AI Computing Center and Hyundai Motor Group’s 9 trillion Korean won investment in an AI-robot hub in Saemangeum, Jeonbuk, pouring astronomical-scale semiconductor facilities into Honam has raised significant concerns within the party that it could lose the Yeongnam electorate in the general election two years later.”

Source: https://www.chosun.com/english/national-en/2026/06/26/WFZE7ZB7SFEWHMPRQ37GF5OR7Q/

TL;DR:

• President Lee Jae Myung met with Lee Jae-yong, Chairman of Samsung Electronics, at Cheong Wa Dae on June 25 to discuss investment plans, including the establishment of a semiconductor…
• It is reported that the public-private joint meeting will unveil investment plans for the Honam and Chungcheong regions by Samsung Electronics and SK Hynix, including the creation of a…
• The meeting between President Lee and Chairman Lee is reported to have lasted approximately one hour in the afternoon of that day.

President Lee Jae Myung met with Lee Jae-yong, Chairman of Samsung Electronics, at Cheong Wa Dae on June 25 to discuss investment plans, including the establishment of a semiconductor cluster in the Honam region. President Lee previously met with SK Group Chairman Chey Tae-won at Cheong Wa Dae on June 19. This is interpreted as President Lee consecutively meeting with top business leaders ahead of a scheduled public-private joint meeting on June 29 to discuss achieving balanced national development in local regions.

It is reported that the public-private joint meeting will unveil investment plans for the Honam and Chungcheong regions by Samsung Electronics and SK Hynix, including the creation of a semiconductor cluster in the Honam region. Industry sources believe the two groups will establish a semiconductor cluster and renewable energy infrastructure, among other AI industry ecosystems, in the Honam and Chungcheong regions.

The meeting between President Lee and Chairman Lee is reported to have lasted approximately one hour in the afternoon of that day.

The government is currently promoting a national balanced development strategy of "five regional hubs and three special self-governing provinces, 5 units super metropolitan areas·3 units special self-governing provinces" and the construction of a southern region semiconductor belt. The Special Act on Strengthening Semiconductor Industry Competitiveness and Support ('Semiconductor Special Act'), scheduled to be implemented in August, also includes measures to support semiconductor clusters considering regional balanced development and special permit exceptions.

Kim Yong-beom, Head of the Presidential Policy Office, stated on June 24 regarding the local semiconductor cluster creation plan, "The discussion is approaching its final stage," and added, "Once finalized, we will prepare a venue where companies and government ministries can collectively explain to the public." President Lee also said at his first-year press conference, "We will soon unveil a large-scale investment project that will bring about a major shift in growth strategy."

Industry sources also predict that following Chairman Chey Tae-won's visit to Gwangju on June 30, Chairman Lee Jae-yong will visit Asan, South Chungcheong Province, on July 2 to announce plans for establishing a semiconductor and AI data center.

Source: https://www.chosun.com/english/industry-en/2026/06/25/G5Y76CFMCRGTNCAY2VBFUXTHYY/

TL;DR:

• Seoul apartment jeonse prices have risen the steepest since October 2013 on a weekly basis. Dongtan, Hwaseong, Gyeonggi, where housing prices have been soaring due to the recent…
• According to the Korea Real Estate Board’s weekly apartment price trends for the fourth week of June (as of the 22nd), Seoul’s apartment sales price index rose by 0. 3%, widening the…
• Gangnam-gu apartment prices, which had slowed in their upward trend this year, also rose by 0. 35%, marking the largest increase of the year.

Seoul apartment jeonse prices have risen the steepest since October 2013 on a weekly basis. Dongtan, Hwaseong, Gyeonggi, where housing prices have been soaring due to the recent semiconductor boom, continued its upward trend with weekly price increases of around 2% for three consecutive weeks.

According to the Korea Real Estate Board’s weekly apartment price trends for the fourth week of June (as of the 22nd), Seoul’s apartment sales price index rose by 0.3%, widening the increase from the previous week (0.27%). The upward trend was led by Dobong-gu (0.46%), Guro-gu and Seongbuk-gu (0.41%), and Dongdaemun-gu (0.38%).

Gangnam-gu apartment prices, which had slowed in their upward trend this year, also rose by 0.35%, marking the largest increase of the year. Gangnam apartment prices had declined ahead of the expiration of the deferred additional capital gains tax on multiple homeowners on May 9, as urgent sales flooded the market. However, prices turned upward starting from the second week of May when the tax was implemented. Notably, the rate of increase has accelerated this month, rising sequentially from 0.21% → 0.25% → 0.31% → 0.35%.

Seoul apartment jeonse prices rose by 0.35%, the largest increase since the third week of October 2013 (0.35%). By district, the largest increases were in Seongbuk-gu and Seongdong-gu (0.55%), followed by Guro-gu (0.54%), Dobong-gu (0.53%), Nowon-gu (0.49%), and Gangbuk-gu (0.47%). This year, Seoul apartment jeonse prices have cumulatively risen by 4.79% as of the 22nd, more than five times the rate from the same period last year (0.88%).

Dongtan apartment prices, which have recently surged due to inflows from performance bonuses and stock investment gains at semiconductor companies like Samsung Electronics and SK Hynix, rose by 1.65% in one week. Over the past three weeks, Dongtan apartment prices increased by 1.98% → 2.22% → 1.65%, cumulatively rising by 5.85% during this period. This means housing prices have nearly risen by 6% in less than a month. The cumulative increase this year stands at 11.38%.

Dongtan jeonse prices rose by 0.53%, significantly exceeding the Gyeonggi average (0.16%). Similar to sales prices, jeonse prices have also surged, cumulatively rising by 7.58% this year.

Nationwide, the apartment sales price index rose by 0.1%, and the jeonse price index increased by 0.12%. In non-capital regions, housing prices rose compared to the previous week in Ulsan (0.09%), North Jeolla (0.08%), South Jeolla (0.06%), and North Chungcheong (0.05%).

Source: https://www.chosun.com/english/industry-en/2026/06/25/3SSRXZ4AY5HXJPH7EHX5AQF2VQ/

TL;DR:

• Labor and management are continuing last-minute negotiations ahead of the Kakao labor union's second strike scheduled for the 29th, but are having difficulty finding common ground. Even…
• According to the IT industry, Kakao's labor and management have been negotiating several times until recently, discussing performance compensation systems and employment security…
• The reason why negotiations between labor and management are currently difficult is because there is a large difference in perspectives on the structural issues intertwined among each…

[Economist Reporter Hye-ri Lee] Labor and management are continuing last-minute negotiations ahead of the Kakao labor union's second strike scheduled for the 29th, but are having difficulty finding common ground. Even after the resumption of negotiations on the 17th, the prevailing view is that the possibility of a dramatic settlement before the strike is uncertain as the differences in positions on key issues have not been narrowed.

According to the IT industry, Kakao's labor and management have been negotiating several times until recently, discussing performance compensation systems and employment security measures. However, it is known that differences of opinion surrounding major agenda items are still significant.

The reason why negotiations between labor and management are currently difficult is because there is a large difference in perspectives on the structural issues intertwined among each corporation. In the case of major affiliates such as the headquarters and Kakao Pay, ‘transparency of the performance compensation system’ was on the chopping block. The union has confirmed that 13-14% of last year's operating profit will be used as performance bonus funding, and is demanding that 5 million won worth of restricted stock (RSU) not be included in performance bonuses. On the other hand, the company is maintaining its position that RSUs should be included in the performance compensation plan, citing management burden and the purpose of the existing compensation plan.

On the other hand, the situation is different for affiliates that have undergone management efficiency and restructuring, such as Kakao Enterprise, DK Techin, and XL Games. In these corporations, employment stability rather than performance bonuses emerged as the biggest issue. The union is concerned about the possibility of workforce restructuring that may occur during the process of organizational reorganization and business reorganization, and the company is taking the position that flexibility is needed to respond to changes in the business environment.

As the different demands of compensation system and employment security are intertwined, it is predicted that it will not be easy to reach a full agreement before a strike. The analysis is that it is not easy to find a single solution because the performance-based pay controversy and organizational reorganization issues have accumulated since last year, and the interests of each affiliate are different.

Attention is now focused on the scale and impact of the second strike on the 29th. This strike is expected to be an important test that will determine the structure of future negotiations. If the strike participation rate is high and the union's organizational power is confirmed, the union's bargaining power can be further strengthened. Conversely, if the scale of participation falls short of expectations, it is highly likely that the company will continue negotiations in a more advantageous position.

Service operation disruption is also a major variable. Major services such as Kakao Talk and Kakao Pay have automated systems and emergency operation systems, so it is unlikely that a short-term strike will cause major disruptions. However, if an unexpected service failure occurs, the burden on the company can increase significantly.

However, both labor and management recognize that there is no benefit from prolonging the conflict. This is because unions must be concerned about increased fatigue among their members, and companies must address the urgent management tasks of strengthening AI competitiveness and improving profitability. The longer the conflict lasts, the greater the costs both sides must bear.

For this reason, the industry is placing emphasis on the possibility that labor and management will find a compromise through some concessions after the second strike. Although it may not be easy to reach a dramatic resolution before the strike, it is expected that a step-by-step agreement can be reached after confirming each other's negotiating power through the strike.

An industry insider said, “This conflict is not just a simple wage negotiation, but a matter that combines the structural issues of the performance compensation system and job security.” He added, “The negotiation atmosphere may change depending on the outcome of the strike, but in the end, it is difficult for both labor and management to handle a long-term war, so it is highly likely that a compromise will be found at some point.”

Meanwhile, Kakao said, “Labor and management are currently faithfully conducting wage agreement-related negotiations.”

Source: https://economist.co.kr/article/view/ecn202606250024

TL;DR:

• The Cheong Wa Dae has officially confirmed Samsung Electronics and SK Hynix’s record-breaking semiconductor investment in the Honam region, estimated at over 400 trillion Korean won. Kim…
• The Cheong Wa Dae will hold a public-private joint meeting on the “National Spatial Transformation” on the 29th, after which the two companies are expected to announce their investment…
• The Cheong Wa Dae emphasized that the existing Yongin factory project would not be relocated to Honam. Kim stated, “We are not moving the factory being built in the capital region,”…

The Cheong Wa Dae has officially confirmed Samsung Electronics and SK Hynix’s record-breaking semiconductor investment in the Honam region, estimated at over 400 trillion Korean won. Kim Yong-beom, presidential chief of staff for policy, stated at the Kwanhun Debate held at the Seoul Press Center on the 24th, “Discussions on the matter are in the final stages.” Semiconductor factory investments typically require over seven years of review due to the astronomical funds involved, and the process is conducted in strict secrecy. However, this investment appears to have involved the Cheong Wa Dae and the ruling party making numerous demands regarding timing, scale, and regional selection. Opposition parties criticized the administration for politicizing a national core strategic industry. Park Sung-hoon, senior spokesperson of the People Power Party, said, “The Lee Jae Myung administration is essentially guiding or pressuring corporate investments under the guise of regional balanced development,” calling it “the worst example of state-controlled economy.” Reform Party leader Lee Jun-seok claimed, “The administration is twisting arms to send Samsung and Hynix to Honam.”

The Cheong Wa Dae will hold a public-private joint meeting on the “National Spatial Transformation” on the 29th, after which the two companies are expected to announce their investment plans soon. President Lee Jae Myung concluded discussions with SK Group Chairman Chey Tae-won on the 19th and is scheduled to meet Samsung Electronics Chairman Lee Jae-yong on the 25th. Initially, the companies had considered packaging factories (back-end processes), but they are now coordinating plans to establish cutting-edge fabs (front-end processes) due to political demands.

The Cheong Wa Dae emphasized that the existing Yongin factory project would not be relocated to Honam. Kim stated, “We are not moving the factory being built in the capital region,” adding, “If we wait until Yongin is full, it will be too late.” The Yongin Semiconductor Cluster is expected to reach saturation around 2035, necessitating a new factory in a different region. He also said, “Companies won’t easily decide on such massive investments just because the government pursues regional balance,” clarifying that the investment was not government-mandated. Ahn Ki-hyun, executive director of the Semiconductor Industry Association, noted, “It’s true that non-capital regions must be considered due to water shortages in the capital area,” but added, “Site reviews for semiconductor factories typically take over seven years, conducted in secrecy. If the process is exposed, land prices rise, making implementation impossible.”

◇Semiconductor Announcement Timed with Launch of Jeonnam·Gwangju Metropolitan City in July… Gwangju Military Airport Site Likely

The Honam Semiconductor Cluster began gaining momentum after President Lee’s December 10, 2025, “K-Semiconductor Vision and Nurturing Strategy Briefing,” where he urged, “Turn attention to the southern region rich in renewable energy and focus on building a new industrial ecosystem there.” Discussions intensified alongside political issues like the integration of Gwangju·Jeonnam and Daejeon·Chungnam. As local elections approached, Democratic Party candidates in Honam rushed to promise semiconductor investment attraction. The party even used slogans like “Semiconductor relocation to Honam ends regional conflict.” When backlash arose in the capital region, including Yongin, the Cheong Wa Dae clarified, “We are not reviewing relocating cluster companies.”

However, after the June local elections, the ruling party reignited discussions on Honam semiconductor investments. Reports emerged that the Cheong Wa Dae accelerated talks, and the president’s meetings with Chey Tae-won and Lee Jae-yong were publicized. Honam political circles speculated, “The announcement will coincide with the July 1 launch of the integrated Gwangju·Jeonnam Special Self-Governing City,” and “It’s a card to win Honam public favor ahead of the August party convention.” Critics argue the timing is politically motivated. A source familiar with the matter said, “While regional balance is a valid goal, the government insists on semiconductors regardless of other infrastructure proposals and pushes Honam despite companies’ preferences.”

Meanwhile, AI-driven memory demand surges are altering Samsung and SK Hynix’s calculations. Samsung plans to expedite construction of its Pyeongtaek and Yongin (Phase 6) fabs. The need for a “post-Yongin” site has also moved up. SK Hynix, with smaller production capacity, urgently needs additional fabs. Both the government and industry agree Yongin’s geographical limits hinder expansion. The challenge lies in finding a suitable large-scale site requiring over 1 million pyeong of flat land, ultra-high-voltage power, hundreds of thousands of tons of ultrapure water daily, and a workforce ecosystem from operators to Ph.D.-level engineers. Water reuse has eased past difficulties, but labor shortages persist even in Chungcheongbuk-do, home to 300 semiconductor firms. Many companies struggle to fill roles from operators to R&D staff. One back-end process firm has year-round job postings across all positions. Fabless companies, facing difficulties hiring Ph.D.s, have recruited Southeast Asian talent. A semiconductor industry source said, “Even Icheon and Pyeongtaek, considered southern limits, face geographical complaints. Labor issues will be a far greater challenge in Honam.”

HBM (high-bandwidth memory) production requires close integration of development and manufacturing, necessitating large teams on-site for years. Stable living conditions are critical. Currently, no domestic region meets all requirements, prompting calls for at least a decade of infrastructure development. Paradoxically, this “10-year gap” has become a compromise point: the government provides post-Yongin sites and infrastructure, while companies resolve future site challenges. The former Gwangju Military Airport site, vacated after relocation to Muan, is a leading candidate. The key question is whether infrastructure projects can proceed without disruption amid political cycles. Given semiconductor market volatility, hastily planned investments risk instability during downturns.

Source: https://www.chosun.com/english/national-en/2026/06/25/2IFCLBK5BBF4FBLGDOBLBSKJS4/

TL;DR:

• Lee Man-hee, the general director of Shincheonji Church of Jesus, has been detained on charges including coercing congregants to join the People Power Party.
• Presiding Judge Kim Jin-man of the Seoul Central District Court, in charge of warrants, issued a bench warrant on the 24th, stating, “There are concerns about destruction of evidence,”…
• Lee is accused of violating the Political Party Act by pressuring congregants to join the People Power Party ahead of the 2021 20th People Power Party presidential primary and the 2024…

Lee Man-hee, the general director of Shincheonji Church of Jesus, has been detained on charges including coercing congregants to join the People Power Party.

Presiding Judge Kim Jin-man of the Seoul Central District Court, in charge of warrants, issued a bench warrant on the 24th, stating, “There are concerns about destruction of evidence,” regarding the charges of violating the Political Party Act and other allegations against the general director.

Lee is accused of violating the Political Party Act by pressuring congregants to join the People Power Party ahead of the 2021 20th People Power Party presidential primary and the 2024 22nd general election primary. He also faces charges of obstruction of business for influencing the primaries and interfering with the party’s operations by enrolling congregants.

The Joint Investigation Headquarters (headed by Kim Tae-hoon) suspects that Shincheonji systematically supported former President Yoon Suk-yeol. Shincheonji had been under investigation as the epicenter of a mass COVID-19 outbreak in 2020. The allegation is that former President Yoon Suk-yeol halted the criminal investigation into Shincheonji at the time, and in return, the group supported him.

Lee arrived at the Seoul Central District Court around 1:45 p.m. for the warrant review hearing. He did not respond to reporters’ questions, such as, “Did you directly order mass membership in the People Power Party?” and “Did you enroll members to support President Yoon Suk-yeol?” After approximately three hours, he left the court without commenting.

The investigation team, which has secured Lee’s custody, is expected to accelerate the probe into Shincheonji. Earlier, the court issued bench warrants for three former executives, including Go Dong-an, the former executive director, who faces the same charges, citing “concerns about destruction of evidence and flight risk.”

Source: https://www.chosun.com/english/national-en/2026/06/24/U5YY2NPVCVEJRCC7PVAQGZRSY4/