The Minute to Read series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: May 6-10.
S. Korean government to establish new ministry addressing low birthrate issue
On May. 9., President Yoon Suk-yeol declared the establishment of a new ministry, the “Ministry of Low Birthrate Response and Planning,” to address South Korea’s declining birthrate and aging population. The minister heading the new ministry will also serve as the deputy minister for social affairs, responsible for crafting inclusive policies spanning education, labor, and welfare. President Yoon emphasized its significance as a national priority during a press conference marking the second anniversary of his inauguration.
Regarding legislative issues in the economic sector, President Yoon emphasized the importance of amending the Income Tax Act to abolish the Financial Investment Income Tax and the special tax treatment control law to broaden the tax-free threshold for individual comprehensive asset management accounts (ISAs). He called for collaboration from the National Assembly to enact these changes.
UAE to form joint venture company with S. Korean VC firm
On May. 7. the United Arab Emirates (UAE) announced the formation of a joint venture investment company with LB Investment in South Korea, facilitated by the “AIM Global Foundation.” The intention is to secure investments from institutional investors based in the UAE, aiming to establish a venture fund valued at a maximum of $1 billion, which will be managed by the joint venture. The board of directors of this collaborative effort will consist of experts in finance, fund management, as well as executives with a background in the Middle East.
In 2011, AIM garnered significant attention, notably when Elon Musk, the CEO of Tesla, successfully secured investments for the company’s early expansion efforts.
Hyosung family’s inheritance dispute begins
Cho Hyun-moon, a former Hyosung vice president and the second son of former Chairman Cho Suck-rai, who passed away in March, has begun preparations for a lawsuit to claim his share of the estate. The legal reserve of inheritance is the minimum amount of inheritance a family can receive regardless of the deceased’s will. The former vice president sold his shares in the group and left the family about 10 years ago following a dispute with his brothers. At his father’s funeral, the second son’s name was notably absent from the list of family members.
Coupang turns to red in Q1 2024 amid rise of Chinese shopping platforms
Coupang, a South Korean e-commerce giant, recorded a quarterly net loss for the first time in seven quarters, with operating profit declining by 61% compared to the same period last year. Analysts attribute this setback to the rise of AliExpress and Temu, which has prompted concerns about Coupang’s profitability targets. In response, Coupang intends to boost direct purchases of made-in-Korea products to 22 trillion won (about $16 billion) this year, up from 17 trillion won last year. This strategy aims to distinguish the company itself from Chinese e-commerce firms armed with ultra-cheap products. Additionally, the company plans to increase investments from last year’s 2 trillion won (about $1.46 billion) to 5.5 trillion won (about $4.02 billion) in the paid WOW membership this year to retain its loyal customer base.
Naver faces threat of losing LINE to SoftBank
Japan’s leading messenger service, LINE, boasts 96 million domestic users and is under the looming threat of acquisition by a Japanese company. Amid the Japanese government’s not-so-friendly stance toward Naver regarding the personal information leak at LINE Yahoo in November last year, Naver was pressured to sell LINE to SoftBank. LINE Yahoo CEO, Takeshi Idezawa, officially requested Naver to sell under the Japanese government’s administrative guidance during an earnings call on May. 8. Additionally, the General Manager of the Corporate Planning Department (CPO) of LINE Yahoo, Shin Jung-ho, who developed the messaging app, stepped down from the company’s board of directors.
Personal information of med student accused of stabbing girlfriend spreads online
Within a day of a tragic incident where a 25-year-old medical student, identified as Choi, fatally stabbed his girlfriend, known as A, on a rooftop near Gangnam Station in Seoul, personal details of both individuals have surfaced online. Choi, who reportedly achieved a perfect score on the national college entrance exam, and his girlfriend, A, have had their identities circulated on various online platforms. A’s family has urged the public to refrain from spreading the information about her. On May. 8., details about A were disclosed in online communities after the social media account of Choi, who had previously excelled academically and enrolled in a prestigious medical school, was identified. Choi allegedly attacked A with a weapon multiple times at a building near Gangnam Station in Seocho-dong, Seoul, around 4 p.m. on May. 6.
S. Korean idol group with 24 members makes its first full public appearance
The South Korean girl group tripleS, the largest K-pop group with 24 members, has embarked on their inaugural full-group activities, commemorating the launch of their debut album “ASSEMBLE24″. On May. 8., tripleS hosted a showcase at Yes24 Live Hall in Gwangjin-gu, Seoul, to mark the release of their first full album “ASSEMBLE24″. tripleS comprises 24 multinational members, each assigned a distinct number from S1 to S24. While some members had been introduced prior to 2022, this marks the first instance of all 24 members uniting to showcase their talents as a complete ensemble.
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