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: Oct. 7-11.
Han Kang makes history as first S. Korean to win Nobel in Literature
South Korean novelist Han Kang, 54, has made history as the first Korean to receive the Nobel Prize in Literature and the first Asian woman to achieve this distinction. This is only the second instance of a Korean being honored with a Nobel Prize, following former President Kim Dae-jung’s Nobel Peace Prize. On Oct 10. (local time), the Swedish Academy explained its decision, noting that Han “for her intense poetic prose that confronts historical traumas and exposes the fragility of human life.”
Han first gained international recognition in 2016 when she became the first South Korean to win the International Booker Prize for her 2007 novel The Vegetarian. Her focus on themes such as history and trauma, particularly in works like Human Acts (2014), which explores the 1980 Gwangju Uprising, and We Do Not Part (2021), centered on the Jeju April 3 Incident, is widely regarded as a key factor in her selection for the Nobel Prize.
South Korea to join FTSE World Government Bond Index in 2025
On Oct 9., FTSE Russell announced that South Korea will be added to the FTSE World Government Bond Index (WGBI), a key market capitalization-weighted index tracking government bond markets from 26 major economies, with $2.5 trillion in assets linked to it.
South Korea’s inclusion in the index is set for November 2025. The Ministry of Economy and Finance expects this move to help stabilize interest rates, reduce borrowing costs for both the government and businesses, and enhance liquidity in the foreign exchange market.
Analysts caution on surge in hostile M&As amid Korea Zinc conflict
Following MBK Partners’ involvement in a management rights dispute over Korea Zinc this year—after a similar case with Hankook & Company last year—the securities industry anticipates a rise in hostile mergers and acquisitions (M&A), regardless of the outcome. The growing demand for enhancing shareholder value, driven by government initiatives like the value-up program, is expected to escalate conflicts of interest among shareholders, potentially leading to more management disputes.
On Oct 10, T’way Air, a domestic low-cost carrier (LCC), was flagged as the next potential case for management conflict, following Korea Zinc. Daemyung SONO HOSPITALITY GROUP recently became T’way Air’s second-largest shareholder by acquiring shares from JKL Partners, another private equity firm, narrowing the gap with the largest shareholder, Yearimdang Publishing, to around 2 percentage points, raising the likelihood of a management dispute.
Spike in IP infringement by Chinese shell companies on Coupang raises alarms
Intellectual property (IP) infringement by Chinese shell companies has surged on Coupang, South Korea’s largest e-commerce platform. These entities, set up by Chinese nationals, illegally use images and assets from Korean products to exploit Coupang’s “Item Winner” system, which selects the seller offering the best price and customer experience for identical products. The “Item Winner” system prioritizes sellers with the lowest price, granting them top visibility and exclusive access to customer reviews, a key factor in driving sales. From January to August this year, 119 trademark infringement cases were reported on Coupang, nearly reaching the total for all of 2020.
Samsung Electronics reports Q3 operating profit decline to $6.8 bn
The third quarter of this year is expected to be a critical turning point for Samsung Electronics as its dominant position in the global memory semiconductor market shows signs of slipping. On October 8, Samsung released its preliminary Q3 results, reporting consolidated sales of 79 trillion won and an operating profit of 9.1 trillion won ($6.8 billion). While Samsung has long maintained a leading position in the DRAM and NAND flash markets, growing concerns suggest it may be at risk of losing its top spot to SK Hynix, its long-standing rival, due to slower adaptation to the rapidly expanding AI memory sector.
Domestic securities analysts estimate that Samsung’s Device Solutions (DS) division, which contributes a substantial portion of the company’s overall profit, generated around 4 trillion won in operating profit. With the Foundry and System LSI divisions likely posting a combined loss of approximately 1 trillion won, the memory division—Samsung’s primary profit engine—is projected to have earned an operating profit of 5 trillion won or less.
Former President Moon Jae-in’s daughter facing additional charges following DUI arrest
Moon Da-hye (41), the daughter of former South Korean President Moon Jae-in, is reportedly facing additional charges of dangerous driving causing injury or death under Article 5-11 (Death and Injury by Dangerous Driving) of the Act on the Aggravated Punishment of Specific Crimes. Suspected of driving under the influence, she may face these charges if it is determined that her driving abilities were severely impaired. These would be added to the standard drunk driving charges under the Road Traffic Act. Moon is accused of causing an accident in Itaewon, Seoul, in the early hours of Oct 5., with a blood alcohol concentration of 0.149%, far exceeding the legal limit for license revocation, which is 0.08%.
NewJeans’ Hanni to attend National Assembly audit on bullying claims
Hanni, a member of the K-pop group NewJeans, announced on Oct 9. that she will attend the National Assembly’s audit of state affairs. Speaking on the fan platform Phoning, she said, “I’ve decided to go to the National Assembly.”
She reassured fans by adding, “I’ll be attending the audit on my own, so there’s no need to worry. I’m doing this for myself, the other members, and our fans, the Bunnies. It’s not difficult—I want to go.” Hanni also explained, “The managers and the company don’t know yet, but after careful consideration, I believe this is the right thing to do. I wanted to share it with the Bunnies first. I’m not sure how things will turn out, but I believe this will be a valuable learning experience. That’s why I want to go. I’ll protect NewJeans and the Bunnies.”
Hanni’s decision follows a controversy that arose after a live broadcast on Sept 11., during which she called for the reinstatement of Min Hee-jin, the former CEO of ADOR. In the broadcast, Hanni claimed that a HYBE manager instructed her to “ignore” a fellow HYBE artist she had greeted. She reported the incident to Kim Joo-young, HYBE’s Chief Human Resources Officer and newly appointed CEO of ADOR, but no action was taken. These claims have fueled concerns about workplace bullying within HYBE, specifically involving NewJeans.
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