Racing Car Exports to the US, Concerns Over Presidential Election Headwinds [3-Minute Brief]

[At a Glance]
① Korean Big Tech's R&D Subsidiaries Face Growing Net Losses
② July FOMC: Will It Be a Turning Point for US Monetary Policy?
③ Job Outlook for Second Half: Shipbuilding and Semiconductors 'Clear'

MARKET INDEX

- US New York Stock Exchange's three major indices closed mixed near flat
- Market cautious ahead of this week's FOMC
- Attention on FOMC rate cut hints for September on the 30th-31st

TOP 3 NEWS

■ Record High US Auto Trade Surplus... Concerns Over Post-Election Retaliation

- US auto trade surplus reached an all-time high from January to May this year
- Significant increase in exports of domestically produced vehicles to the US
- Concerns growing over increased trade adjustment pressure after the presidential election

■ Big Tech Without Visible AI... R&D Subsidiaries' Net Losses Balloon

- Kakao Brain, an R&D subsidiary, posted a net loss of 76.4 billion KRW last year
- Despite support through paid-in capital increase, AI achievements remain insufficient
- Analysis suggests "Loss of IT companies' brand power is a significant setback"

■ July FOMC: A Turning Point for US Monetary Policy? "Possibility of 0.5% Cut in September"

- Base interest rate likely to remain steady at 5.25~5.5% annually
- Inflation slowdown expected to signal a rate cut in September
- Possibility of a 0.5% rate cut depending on economic indicators

the Chart: Job Outlook for the Second Half of the Year... Shipbuilding and Semiconductors 'Increase'

- Shipbuilding and semiconductor sectors expected to see job growth compared to the same period last year
- However, textile and construction sectors expected to decline due to overseas production, re-imports, and rising construction costs
- Some sectors like machinery, electronics, steel, automobiles, display, and finance/insurance expected to remain stable

Profitable Law

■ Electronic Documents Registered in Civil Electronic Litigation Considered Delivered After One Week... Constitutional Court Rules "Constitutional"

- Electronic documents registered in electronic litigation are considered delivered even if the party does not confirm
- Clause exists in Article 11, Paragraph 4 of the Act on Use of Electronic Documents in Civil Litigation
- "The electronic document confirmation process is simple... The one-week period is not considered excessively short"
☞ Read article: https://www.asiae.co.kr/article/lawtimes/2024072914010951394

■ "Tax Authority's Use of 'Appraised Value' for High-Value Real Estate Inheritance Tax is Justified"

- Law states, "If no existing appraisal value at inheritance, tax authority may request appraisal"
- Not a violation of tax equality principle... No discriminatory treatment among taxpayers
- Although previous Inheritance and Gift Tax Act did not specify tax authority's appraisal request authority, aligns with market value principle
☞ Read article: https://www.asiae.co.kr/article/lawtimes/2024072914032080346

■ "Basic Law and Specialized Law Should Be Designated as Selective Mandatory Subjects"

- Academic conference by Korean Law Professors Association and Law School Council
- Discussed issues with law school system and education, and bar exam reform
- "Law school introduction led to merger and abolition of law departments... Concerns over law studies becoming nominal"
☞ Read article: https://www.asiae.co.kr/article/lawtimes/2024072914105521426

※ 'Profitable Law,' a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Term in the News: France's Symbol of Freedom and Revolution, the 'Phrygian Cap'

- The Phrygian cap is a brimless, conical-shaped hat
- Originates from freed slaves wearing it in the 12th century BC, nicknamed the 'Cap of Liberty'
- Symbolizes freedom and revolution... Appeared in significant historical events like the French Revolution

Today's Key Schedule

○ Domestic

- Gangwon Wonju Moa Elga Grande
- Chuncheon Chuncheon Atera Edu Park
- Seoul Raemian One Pentas
- Gyeongbuk Seongju Seongbak Sup Daeyu Riel

○ Overseas
- 08:30 Japan June Unemployment Rate
- 10:30 Australia June Building Approvals
- 17:00 Germany Q2 GDP
- 18:00 Eurozone Q2 GDP
- 21:30 Germany July Consumer Price Index
- 23:00 US Department of Labor June JOLTs

◇ Lunch & Commute Weather

○ Lowest Temperature 26℃(0℃) ｜ Highest Temperature: 31℃(▲1℃)
○ Precipitation Probability Morning 30%｜Afternoon 30%
○ Fine Dust Morning Good｜Afternoon Good

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.

This content was produced with the assistance of AI translation services.