Administrative Integration Amid Mounting Debt... Why Gwangju Special City Raises Concerns

The 'megacity' of Jeonnam-Gwangju Integrated Special City (Gwangju Special City), with a population of 3.2 million, is set to launch in July 2026. This marks a reunion 40 years after Gwangju City and Jeonnam were separated in 1986, granting the new entity administrative authority on par with Seoul Special City. Over the next four years, the central government will provide a total of 20 trillion won in support funds, allocating 5 trillion won each year. The Ministry of the Interior and Safety is in a celebratory mood, to the point of awarding a special bonus of 30 million won to the public officials who managed the practical affairs of the integration. However, due to the contraction of the local economy, population decline, and limitations in the industrial structure, the fiscal independence of Gwangju and Jeonnam remains at the lowest level in the country. Based on last year's budget, Gwangju's fiscal self-reliance rate was 39.8%, and Jeonnam's was 23.7%, both falling short of the nat

2026.04.20 10:59

The Meaning of Naphtha and the Existence of the Petrochemical Industry

The shortage of pay-as-you-throw trash bags made the majority of the public aware of the existence of naphtha. A petrochemical industry insider I spoke with recently said, "I can finally explain to my friends exactly what I do for work." Naphtha is the main raw material used to produce ethylene, which is in turn used to make plastic bags and containers. It is extracted during the refining process of crude oil. Until now, naphtha, an intermediate byproduct, was a term mostly used by those in the oil and petrochemical industries. Naphtha became well-known after the Strait of Hormuz was blocked due to the war between the United States and Iran. As of last year, South Korea depended on imports for nearly half (45%) of its naphtha, with 77% of that sourced from the Middle East and 54% brought in through the Strait of Hormuz. In the wake of the war, not only did direct naphtha imports become impossible, but crude oil supply was also cut off, which in turn made it difficult to extract domesti

2026.04.15 10:28

The World’s Cheapest KOSPI... Will It Finally Break the "Curse of Cyclicality"?

One of the most frequently cited characteristics of the Korean stock market is its “chronic undervaluation.” Among major global markets, there is arguably no other that is valued as conservatively as Korea’s. While the KOSPI is closing in on 6,000, its 12-month forward price-to-earnings ratio (PER) remains stuck in the mid-7s. By comparison, the United States stands at 20, Japan at 17, Europe at 14, and even China at 11. The global average is around 17, meaning Korea’s figure is less than half the world average. Why is the Korean stock market uniquely undervalued? The cyclical nature of Korea’s industries is often cited as the main reason. Key sectors such as semiconductors, automobiles, shipbuilding, and steel are highly sensitive to changes in the global economy, leading to significant earnings volatility. Take semiconductors, which have recently been the driving force behind the Korean market. Booms and busts alternate every few years, making long-term investment seem risky. Althoug

2026.04.13 11:00

The Questions Raised by Director Kim Changmin's Death

Tears welled up in his eyes. The late Director Kim Changmin, who was known for his noble act of organ donation but whose tragic end was revealed only later, left this as his final image. In his last moments, as he lost consciousness and tears formed in his eyes, perhaps he was filled with worry for his surviving son and a sense of injustice. The despair, resentment, and regret of a father who had promised to be a lifelong support for his disabled son, but could no longer protect him... Director Kim became known to the world as a hero who saved four lives through organ donation. However, months later, the horrific truth came to light. Last October, Director Kim went to a restaurant at dawn because his developmentally disabled son wanted to eat pork cutlet, but an argument over noise led to an assault. Director Kim's son witnessed his father being attacked in the restaurant. An hour later, Director Kim arrived at the hospital and soon lost consciousness. It was Director Kim’s father who

2026.04.10 11:10

The Betrayal of Kids' Phones... The Government Must Step Up

"I can't believe it's this easy to access adult content through a kids' phone. Telecom companies and device manufacturers are deceiving consumers." Recently, as I investigated the reality behind so-called "kids' phones," which supposedly protect children from harmful content, I encountered repeated complaints from parents. Many parents, after agonizing countless times over whether to buy their child a smartphone, ultimately settle for a kids' phone as a compromise with reality. As parental concerns have driven up demand for kids' phones, the three major telecom companies are fiercely competing to market these devices for the new school year. Promotional slogans from the telecom companies boast that their kids' phones come equipped with various AI-based harmful content blocking features, and that parents can thoroughly manage specific apps and usage times through child management applications. These claims are often enough to reassure parents who worry that handing a smartphone to their

2026.04.09 11:47

Shareholders Are Not Just Cash Providers

A recent rights offering by a company has sparked controversy. Not only have shareholders strongly protested, but even politicians have criticized the move, calling it an act of treating shareholders merely as financial backers. Financial authorities, concerned about possible damage to shareholder value, have begun a focused review of the rights offering. The company in question is Hanwha Solutions, which decided on a rights offering worth 2.4 trillion won. Hanwha Solutions announced the 2.4 trillion won rights offering plan on March 26, just two days after its regular shareholders' meeting. No mention of the plan was made at the shareholders' meeting, and the sudden announcement of a large-scale rights offering so soon afterward caused an uproar among shareholders. The offering amounts to 42% of the existing shares, and more than 60% of the funds to be raised?1.5 trillion won?will be allocated for debt repayment. On the day the rights offering was announced, Hanwha Solutions’ share pr

2026.04.08 10:27

Startup for All Must Become a Chance to Build the Startup Ecosystem's Core Strength

"The Everyone's Startup project was designed with a focus on supporting novice entrepreneurs at the very beginning, at the 'Start' stage," said Han Sung-sook, Minister of SMEs and Startups, ahead of the launch ceremony for the Everyone's Startup Project held at Dreamplus Gangnam on March 25. The Everyone's Startup initiative covers the entire process from developing ideas to actually founding a company. It reflects the belief that the 'how' of starting a business is crucial to building a sustainable startup ecosystem. Minister Han also noted, "There is the idea that you shouldn't just jump into starting a business recklessly." The driving force behind the Everyone's Startup Project is the recent signs of renewed vitality spreading across the startup ecosystem. Last year, the number of technology startups rebounded to 221,000, up from the previous year. The proportion of technology-based startups among all new businesses rose by 1.3 percentage points year-on-year to 19.5 percent, mark

2026.03.31 09:31

The Implications of "Lee Jae-myung Gets Things Done"

The pledge to postpone the imposition of heavier capital gains taxes on owners of multiple homes was a campaign promise made by then-presidential candidate Yoon Suk-yeol in the 2022 presidential election. He was the first among real estate policymakers to take action, vowing to reverse what he saw as excessive taxation during the Moon Jae-in administration. With housing prices in Seoul soaring and anxiety over housing reaching its peak, even the then-ruling Democratic Party found itself on the defensive. Lee Jaemyung, the Democratic Party's candidate in the same election, also made a conditional pledge to temporarily suspend the heavier capital gains tax at that time. This is why, earlier this year, when civil servants were unsure of their stance, it felt somewhat unusual for President Lee to come forward and declare unequivocally, "There will be no suspension of the higher tax rates." Yoon Suk-yeol's campaign team moved to fulfill the promise even before he took office. Choi Sangmok,

2026.03.30 10:00

Early Morning Delivery Trapped in Political Strife

The debate sparked in political circles over allowing early morning delivery services at large discount stores and super supermarkets (SSMs) remains deadlocked. This is due to fierce opposition from small business associations representing traditional markets and small vendors. These small business owners argue that granting early morning delivery services to large retailers and SSMs?which already monopolize capital and distribution networks?will further strengthen their influence, undermine neighborhood businesses, and threaten their survival. The idea of permitting early morning delivery for offline large retailers originated from a partial amendment to the Distribution Industry Development Act, proposed last month by 15 ruling party lawmakers, including Assemblywoman Kim Donga of the Democratic Party of Korea. Their rationale was that as consumers increasingly use online platforms offering order and early morning delivery services, regulating online operations of large retailers doe

2026.03.26 09:55

The Basic Digital Asset Act Trapped by Major Shareholder Ownership Limits

The Basic Digital Asset Act (the so-called “second-stage” virtual asset legislation) remains stalled with no progress in sight. Earlier this month, the Financial Services Commission convened the first Virtual Asset Committee of the year and discussed the Basic Digital Asset Act, leading to expectations that legislative efforts would accelerate. However, the party-government consultative meeting originally scheduled for the 5th was postponed due to developments in the Middle East, and the meeting held on the 19th did not address the Basic Digital Asset Act. With the introduction of the bill unlikely this month and local elections approaching, there are predictions that passage within the year will be difficult. The stated reason for the indefinite delay of the Basic Digital Asset Act is the increased volatility in domestic stock and foreign exchange markets caused by the war in the Middle East. However, the more direct reason is the issue of limiting the shareholdings of major sharehold

2026.03.25 11:02

In the News

Share