The Minute to Read (Weekend) 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: July 29-Aug 2.
S. Korean women’s archery team wins historic 10th Olympic gold
The South Korean women’s archery team has created a remarkable legacy in the annals of world sports history by clinching their tenth consecutive victory in the women’s team event at the Paris Olympics. This extraordinary winning streak began at the 1988 Summer Olympics in Seoul and has remained unbroken through to the Paris Games. On July 28, archers Lim Si-hyun, Jeon Hun-young, and Nam Su-hyun faced a tense final against China, which was decided by a shoot-off, ultimately securing their place at the top of the podium.
This unprecedented success has been supported by Hyundai Motor Group, which has backed Korean archery for 40 years since 1985. Their sponsorship has been instrumental in achieving the notable milestone of ‘10 consecutive victories in the women’s team event.’
American car sales decline in South Korea amid market shifts and Tesla dominance
The presence of American cars in the South Korean imported car market is steadily declining. Despite various companies’ attempts to reverse this trend, such as introducing new models, they are struggling to align with evolving market demands. Apart from Tesla, the cumulative sales of six American brands, including Jeep, Ford, and Cadillac, amounted to only 5,851 units in the first half of this year, marking the lowest figure in the past five years. These brands continue to focus on internal combustion engine vehicles, lacking the hybrid models that have become popular in both the domestic and imported car markets. Additionally, they are falling behind in the electric vehicle market, which Tesla currently dominates.
Moreover, a recent shift towards flexible pricing policies has undermined consumer trust. Some American car brands are scaling back their showroom presence and are even rumored to be considering withdrawing from the Korean market. While there are efforts underway to restructure and launch new models, it appears unlikely that American cars, which have already lost favor with consumers, will see a significant rebound in sales.
Qoo10 CEO faces investigation over suspected fraud and embezzlement
Ku Young-bae, the Chairman and CEO of Qoo10, which owns TMON and WeMakePrice, emerged publicly for the first time in 22 days following the onset of a financial crisis at the company. During an emergency meeting of the National Policy Committee on July 30, Ku disclosed that the group’s available cash reserves stood at 80 billion won (approximately $58.34 million). He committed to resolving the crisis by using his 38% equity stake in Qoo10 as collateral to secure additional funding. Ku faces allegations of aggressively acquiring e-commerce platforms with the aim of listing the logistics subsidiary Qxpress on the U.S. NASDAQ. He is suspected of misappropriating sales proceeds for operational costs instead of promptly settling them, a practice likened to “robbing Peter to pay Paul.” On Aug 1, the Anti-Corruption Investigation Division 1 of the Seoul Central District Prosecutors’ Office conducted a search and seizure operation targeting Ku. He is reportedly under investigation for fraud amounting to approximately 1 trillion won ($730 million) and the embezzlement of 40 billion won ($29.17 million).
Samsung’s memory chip business sees strong recovery amid AI boom
Samsung Electronics has surpassed market expectations, largely due to the growing demand for generative artificial intelligence (AI), which has significantly bolstered its memory semiconductor revenue. The company is starting to reclaim its competitive advantage in high-value markets, including high-bandwidth memory (HBM) and high-capacity DDR5 DRAM, which it had completely lost to SK Hynix last year. Consequently, Samsung’s memory operating profit margin has rebounded, reaching approximately 31%, comparable to that of SK Hynix.
Notably, if the mass production and supply of the 5th generation HBM (HBM3E)—the most competitive sector in the memory semiconductor market for the third quarter—progress smoothly, Samsung’s performance could experience even greater growth in the second half of the year. Both Bloomberg and KB Securities anticipate that Samsung’s HBM3E products will soon receive quality certification from its largest industry customer, NVIDIA, paving the way for large-scale deliveries.
Fatal Seoul car crash attributed to driver error, not sudden acceleration
The tragic car crash near Seoul City Hall Station, which resulted in the deaths of nine people, has been attributed to driver error rather than the sudden acceleration claimed by the driver, Mr. Cha (68), of the Genesis G80 vehicle. According to the police, analysis of the Event Data Recorder (EDR) revealed that the brake pedal was not engaged from five seconds before the crash until the moment of impact. Instead, it was determined that Cha had fully pressed the accelerator pedal just before the incident. The vehicle then accelerated onto the sidewalk, hitting pedestrians at speeds of up to 107 km/h. Chief Ryu Jae-hyeok of the Seoul Namdaemun Police Station stated, “The distinct pattern found on the sole of the suspect’s right shoe matches the accelerator pedal, confirming its use at the time of the accident.”
S. Korea to build 14 new dams for improved flood and drought management
The South Korean government is advancing plans to construct 14 new dams to enhance the nation’s preparedness for heavy rainfall, floods, and droughts. This initiative represents the first multipurpose dam construction project in the country in 14 years and marks the first state-led water management effort since the Moon Jae-in administration’s 2018 decision to halt government-driven dam projects.
The Ministry of Environment announced plans for 14 new dam sites, including three multipurpose dams, seven flood control dams, and four water supply dams. These sites are spread across the country: four in the Han River basin, six in the Nakdong River basin, one in the Geum River basin, and three in the Yeongsan and Seomjin River basins. Multipurpose dams serve several functions, such as flood control and water supply. The largest of these proposed dams, the Suipcheon Dam, is expected to provide drinking water for up to 700,000 people daily once completed.
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