r/KoreaNewsfeed

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:

• 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/

After President Lee Jae Myung announced at the "Three Mega Projects for Korea's Great Leap Forward" public briefing on June 29 that Samsung Electronics and SK Hynix would invest KRW 800 trillion to build semiconductor fabs in the Honam region, employees within Samsung Electronics' Device Solutions (DS) division—the unit expected to make the investment—were reportedly taken by surprise. Executives who had been coordinating capital expenditure plans around existing hubs such as Hwaseong, Pyeongtaek, Yongin, and Taylor, Texas, are said to be unsettled by the sudden emergence of a new variable.

On June 30, Samsung's DS division maintained publicly that it had "nothing to disclose because no specific plans have been finalized." Internally, however, the company is reportedly grappling with confusion over the government's announcement of a massive investment plan without detailed prior consultation. An executive from Samsung's memory business said the company would first need to establish an overarching framework before determining investment and operational plans, adding that the process would take time because the investment was not initiated by Samsung itself.

Some within the company reportedly described the announcement as "the very scenario we were most concerned about." Samsung had previously taken a cautious stance toward growing political and local government calls earlier this year for the company to build semiconductor facilities in Honam. Another Samsung semiconductor official said that while concerns had been raised since the first quarter about external pressure to establish fabs in the region, few expected it to culminate in an announcement of this scale.

One reason for the internal confusion is that Samsung is already investing heavily in major semiconductor bases including Pyeongtaek, Yongin, and Taylor. The company has carefully timed those investments based on market demand, customer coordination, process transitions, technology development, workforce availability, and ecosystem development. Given the capital-intensive nature of semiconductor manufacturing, investing without those considerations could result in substantial financial losses.

A key concern is how Samsung would allocate its limited workforce and manufacturing resources across an expanded network of production sites. Development of the Yongin National Semiconductor Industrial Complex remains stalled, with a public-private consultative body inactive for seven months and land compensation yet to be completed. Additional production lines are also planned for the Pyeongtaek campus, while Hwaseong continues to serve as the company's primary R&D and manufacturing technology hub. Adding Honam as another major production base would require Samsung to spread limited capital investment and skilled personnel across at least three large-scale sites.

The government's presentation also specified that the Honam project would include a front-end wafer fabrication plant, while packaging and other back-end processes would be carried out in Cheonan and Onyang, South Chungcheong Province. Under that structure, wafers manufactured in Gwangju would need to be transported to central Korea for packaging before final export, raising concerns over logistics efficiency and the greater distance to Incheon International Airport.

The presidential office argued that rapidly growing memory demand justified accelerating existing investment plans, claiming that SK Hynix's fourth fab schedule would be brought forward from 2044 to 2034, while Samsung's planned investments through 2048 would also need to be advanced to around 2034–35. Industry officials, however, counter that memory semiconductor demand is inherently cyclical rather than permanently expanding. Since constructing a new fab typically takes seven to eight years, there are concerns that if the expected post-2027 industry slowdown materializes, market conditions could be significantly different by the time a Honam facility begins full-scale operations.

Industry observers also warned that the project could impose a substantial financial burden on Samsung Electronics and SK Hynix while reducing their flexibility to respond to future technology transitions. One industry official noted that companies are already struggling to recruit enough personnel for existing facilities in Yongin and Pyeongtaek, and distributing skilled workers across an additional Honam campus could prove difficult. If the memory market enters another oversupply cycle, the companies could also face significant financial losses from underutilized production capacity.

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

What is wrong with these people?

Nearly 10 Chinese and Russian military aircraft briefly entered and left Korea's air defense identification zone (KADIZ) above the country's eastern and southern waters, Korea's military said Saturday.

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:

• 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:

• 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:

• An analysis by a civic group showed that in the year since the Lee Jae-myung administration took office, the number of apartment rentals and monthly rents in Seoul has decreased…
• On the morning of the 23rd, the Citizens' Coalition for Economic Justice (Citizens' Coalition for Economic Justice) held a press conference at the Coalition for Economic Justice…
• According to an analysis by the Citizens' Coalition for Economic Justice, a comparison of daily listings on June 4 of last year, the day of President Lee's inauguration, and June 4 of…

[Economist Reporter Kim Ki-ron] An analysis by a civic group showed that in the year since the Lee Jae-myung administration took office, the number of apartment rentals and monthly rents in Seoul has decreased significantly and rents have soared, increasing anxiety in the housing rental market. The loss of housing and the demand for relocation due to indiscriminate redevelopment and reconstruction projects were identified as the main reasons for deepening the housing and monthly rental crisis.

On the morning of the 23rd, the Citizens' Coalition for Economic Justice (Citizens' Coalition for Economic Justice) held a press conference at the Coalition for Economic Justice Auditorium in Jongno-gu, Seoul to urge the Lee Jae-myung government to normalize the rental market, and announced the results of analyzing the quantity and price of rents and monthly rents in Seoul.

According to an analysis by the Citizens' Coalition for Economic Justice, a comparison of daily listings on June 4 of last year, the day of President Lee's inauguration, and June 4 of this year, the number of rental and monthly rent listings for apartments in Seoul decreased by a total of 25% in the past year. In particular, jeonse listings plummeted by 31%, far exceeding the decline in monthly rental listings (19%). After the government announced the end of the postponement of capital gains tax for multiple homeowners in January of this year (May 9), rental properties showed a downward trend due to sales conversion, and continued an unstable trend, slightly increasing again only after the end of the postponement.

Amid the phenomenon of listings being locked, jeonse and monthly rent prices soared regardless of apartments and non-apartments. As a result of converting the transaction price of a national apartment in Seoul (exclusive area of ​​84㎡) based on actual transaction price data from the Ministry of Land, Infrastructure and Transport, the rental deposit as of April this year was 690 million won, up 50 million won (8%) from a year ago. During the same period, the monthly rent deposit also increased by 8% to 290 million won, and the monthly rent paid also jumped by 140,000 won (9%) from 1.53 million won to 1.66 million won.

The burden of housing costs for non-apartments (based on an exclusive area of 40 m2), where the working class mainly resides, has also become heavier. The non-apartment rental deposit rose 32% from 160 million won in 2019 to 210 million won last year, and the monthly rent deposit soared 56% from 40 million won to 60 million won. The monthly rent also increased by 36% from 490,000 won to 670,000 won. Accordingly, the proportion of jeonse in the non-apartment rental market was halved from 55% in 2019 to 27% last year, confirming the phenomenon of rapid ‘acceleration of monthly rent’.

The Citizens' Coalition for Economic Justice cited 'supply lag' and 'loss' due to large-scale maintenance projects as the key causes of this chaos in the rental market. In the past five years, approximately 54,000 houses have been destroyed due to redevelopment and reconstruction in Seoul, and the resulting massive demand for relocation has spread to nearby regions and Gyeonggi-do, driving up jeonse and monthly rent prices in a domino effect.

In addition, sharp criticism continued regarding the ‘unlimited non-apartment home purchase’ policy introduced by the government in May. It is pointed out that the method of allowing the public to purchase an unlimited number of newly built villas or officetels will only encourage the deterioration and reconstruction of non-apartments and encourage short-term housing loss, and cannot be a fundamental measure to stabilize the rental market.

The Citizens' Coalition for Economic Justice demanded that the government stop indiscriminately relaxing regulations on maintenance projects and focus on improving the environment of low-rise residential areas. It also urged the government to ▲withdraw the policy of unlimited purchase of non-apartments, ▲normalize the lease loan and return guarantee system, ▲expand the supply of long-term public rental housing and land lease housing, and ▲comprehensively reform the housing rental business system.

Source: https://economist.co.kr/article/view/ecn202606240004

TL;DR:

• Real apartment sales and lease prices in Seoul showed a steep upward trend, recording double-digit increases compared to a year ago. It is analyzed that, in the environment of mortgage…
• According to the Seoul Metropolitan Government's analysis of the Korea Real Estate Agency's actual transaction price index trend in April on the 18th, the actual transaction price of…
• If this is converted into the average price per m2 rather than an index, the increase is even more noticeable. The average selling price per square meter of apartments in Seoul soared…

[Economist Reporter Kim Ki-ron] Real apartment sales and lease prices in Seoul showed a steep upward trend, recording double-digit increases compared to a year ago. It is analyzed that, in the environment of mortgage loan regulations, the purchasing power of the actual demand class was concentrated on low- to mid-priced apartments under 1.5 billion won, which have a relatively small financing burden, leading to an upward turn in the housing market.

According to the Seoul Metropolitan Government's analysis of the Korea Real Estate Agency's actual transaction price index trend in April on the 18th, the actual transaction price of apartments in Seoul increased by 12.86% compared to the same month last year. Compared to the previous month, it rose 0.08%, stopping the decline and turning to an upward trend.

If this is converted into the average price per m2 rather than an index, the increase is even more noticeable. The average selling price per square meter of apartments in Seoul soared from 14,563,000 won in March to 16,394,000 won in April. When converted to an exclusive area of ​​84㎡, the average transaction price rose by approximately 154 million won in one month from 1,223.29 million won to 1,377.1 million won.

This upward trend is the result of a concentration of buying power in apartments priced under KRW 1.5 billion, which are eligible for the maximum mortgage loan of KRW 600 million. In fact, the proportion of transactions under 1.5 billion won in apartment sales in Seoul in April reached 76.0%, and this trend continued in May (76.4%). Transaction volume by autonomous district was also high in areas with a high concentration of mid- to low-priced apartments, such as Nowon-gu, Guro-gu, and Gangseo-gu. Cumulative actual transaction prices by region as of April this year showed strong performance in most regions, including the northeastern region (4.6%), the southwestern region (4.4%), and the northwest region (3.0%), excluding the southeastern region (-1.0%), where properties were rapidly sold ahead of the imposition of capital gains tax for multiple homeowners.

The jeonse market also rose significantly due to a shortage of properties and an increase in renewal contracts. In April, the actual rental price of apartments in Seoul soared 10.53% compared to a year ago, and also rose 1.14% compared to the previous month. By region, the downtown area recorded the highest rate of increase, surging 3.32% from a month ago, and compared to the same month last year, all of Seoul, including the southeastern region (11.55%), the southwestern region (10.34%), and the downtown area (10.22%), all recorded double-digit increases.

Meanwhile, the trend of monthly rent preference in the rental market continues. As of May, the proportion of apartment rental transactions was 51.0%, and the proportion of monthly rent transactions was 49.0%, continuing the trend of one in two rental transactions being concluded as a monthly rental contract. The proportion of renewal contracts among jeonse transactions was 53.6%, which was higher than the same month last year, while the proportion of those actually using the right to request contract renewal was 50.2%, slightly lower than the previous year.

Source: https://economist.co.kr/article/view/ecn202606180024