Corporate Loan Delinquency Hits Six-and-a-Half-Year High... SME Liquidity Crisis Deepens [3-Minute Brief]

[At a Glance]
① Bank Corporate Loan Delinquency Rate Hits 0.9%... Highest in Six and a Half Years
② Management Walks a Tightrope Between Acceptance and Opposition Ahead of the Yellow Envelope Act
③ Fostering a "Korean Oppenheimer"... Four Major Science and Technology Institutes to Become AI Talent Hubs

MARKET INDEX : Year to date

○ New York stocks rallied across the board on expectations of a rate cut following the July CPI release.

○ Core CPI rose by 3.1%, adding uncertainty to the interest rate outlook.

○ Small-cap stocks, expected to benefit from lower borrowing costs, showed strong performance.

Top3 NEWS

■ Companies unable to repay borrowed funds... Highest level in six and a half years

○ Bank corporate loan delinquency rate at 0.9%
○ Highest since November 2018, a six-year-and-six-month peak
○ Delinquency rate for loans to small and medium-sized enterprises surges due to sluggish domestic demand

■ "Year-round negotiations would devastate the economy"... Three reasons for rejecting the Yellow Envelope Act

○ Article 2 expands the scope of employers and strikes
○ "Unacceptable, no room for compromise"
○ Alternative proposals: limits on damages, prohibition of wage garnishment

■ Nurturing a Korean Oppenheimer..."Policy and financial support for the four major science and technology institutes to lead in AI"

○ Deputy Prime Minister Koo Yooncheol meets with the presidents of the four major science and technology institutes
○ Fostering Oppenheimers through early doctoral degrees
○ The project is expected to be included in next year's government budget proposal

Graphic News: The era of a 100 million won deposit protection limit... Polarization among savings banks intensifies

○ Starting in September, the deposit protection limit will be raised from 50 million won to 100 million won.

○ There is a growing possibility of funds moving into savings banks.

○ There are concerns about polarization, as large savings banks may attract a disproportionate share of funds.

the Chart: KOSPI surges in a low interest rate environment... Why index-linked deposits are gaining popularity

○ Structured to add stock index returns to time deposits

○ Popular for offering principal protection and higher rates than regular time deposits

○ 5 trillion won sold in seven months... exceeding 70% of last year's total sales

Today's Key Schedule

○Domestic

○International

01:00 U.S. Energy Information Administration (EIA) Short-Term Energy Outlook (STEO)

03:00 U.S. Federal Budget Balance (July)

15:00 Germany Consumer Price Index (MoM) (July)

◇ Lunchtime & Evening Commute Weather

○ Lowest temperature: 25°C (▲2°C) ｜Highest temperature: 27°C (▼6°C)
○ Precipitation probability: 70% in the morning｜80% in the afternoon
○ Fine dust: Good in the morning｜Good in the afternoon

All you need in 3 minutes: essential, value-for-time economic news. Published daily at 8:00 a.m.

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