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"It Wasn't a Glacial Lake Outburst"... What is Known About the Cause of the Nepal Mega-Flood
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"It Wasn't a Glacial Lake Outburst"... What is Known About the Cause of the Nepal Mega-Flood

Around 8:37 AM on August 26, 2026, a massive glacier and rock collapse occurred in the high-altitude region of Langtang Lirung (7,234m) near the border of Nepal and China's Tibet. There was no heavy local rainfall. The US Geological Survey (USGS) revised a signal initially classified as a magnitude 4.4 earthquake to a collapse event equivalent to magnitude 5.2. The collapsed ice and rock turned into a torrent mixed with water and sediment, engulfing the downstream areas. Initial satellite imagery and expert analysis lean toward a glacier/rock slope collapse combined with valley blockage and its subsequent failure, rather than a typical GLOF where a glacial lake dam bursts. However, the exact chronological sequence of each stage can only be confirmed once field investigations are completed. The torrent swept through downstream gorges and settlements for about 100 km from Rende Kola through Bhotekoshi to Trishuli. As of August 29, Nepalese disaster authorities recorded 626 deaths and 2,426 missing persons, while China's Tibet separately reported 7 deaths and 554 missing persons. Hydropower sites were densely concentrated along the path of the torrent. The Independent Power Producers' Association, Nepal (IPPAN) stated that as of August 29, 13 business sites suffered direct damage, and communication was lost with 934 people across 11 of those sites. The 216 MW Upper Trishuli-1 (UT-1) project, a joint undertaking by Korea South-East Power (KOEN) and Doosan Enerbility, is one of them. At this site alone, the whereabouts of 576 people are unaccounted for, and 9 South Koreans remain out of contact, meaning that entire clusters of infrastructure in a single river basin were exposed to the same upstream risk.

이지영 기자 · 08/29/2026

KBR STRATEGIC ANALYSIS

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2026 Employment Signals Seen Through National Pension Workplace Data: Where Did Jobs Increase?
RESEARCH NOTESPremium

2026 Employment Signals Seen Through National Pension Workplace Data: Where Did Jobs Increase?

In July 2026, the number of employed persons stood at 29,136,000, an increase of 108,000 from a year earlier, but this aggregate figure alone does not reveal which regions or industries experienced job growth. The 'National Pension Enrolled Workplace Details,' released monthly by the National Pension Service, contains legal-dong-level addresses, industry types, number of subscribers, newly acquired subscribers, and lost subscribers at the workplace level, serving as administrative data to fill this gap. However, it covers only corporations with 3 or more subscribers and individual businesses with 10 or more subscribers, primarily targets those aged 18 to 60 and under, and has a reporting time lag of about a month and a half. Thus, it should be read not as a substitute for aggregate employment figures, but as social insurance-based employment signals at the workplace level. The population difference is evident in actual statistics: in July 2026, manufacturing employment based on employment insurance fell by 3,000, marking a 14-month consecutive decline, whereas based on the Survey on Labor Conditions at Establishments, it increased by 14,000, marking a 7-month consecutive rise in the exact opposite direction. While aggregate indicators pointed to a recovery—with regular employment insurance subscribers increasing by 277,000 and establishment workers rising by 226,000—65.0% of the increase came from temporary and daily workers, and youth employment decreased for 45 consecutive months. Ultimately, the warmth of recovery is first verified not on national aggregates, but across a grid of si-gun-gu districts and industries, and National Pension workplace data provides that grid every month.

박소유 책임기자 · 08/29/2026

South Koreans Drink 416 Cups of Coffee Per Capita Annually... The Current State of the 'Coffee Republic' and Key Market Watchpoints for 2026
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South Koreans Drink 416 Cups of Coffee Per Capita Annually... The Current State of the 'Coffee Republic' and Key Market Watchpoints for 2026

According to Euromonitor, South Korea's per capita annual coffee consumption reached 416 cups in 2024, which is 2.7 times the global average. Combined domestic sales and exports of coffee products totaled 3.7359 trillion won in 2024, achieving an average annual growth rate of 5.2% over six years. In 2025, coffee import values surpassed 2조 won for the first time due to soaring green coffee bean prices and a rising exchange rate. International bean prices bottomed out in February 2026 before rebounding in August amid concerns over supply disruptions in Brazil, driving increased volatility. Conversely, National Tax Service statistics showed that the number of coffee shops declined for the first time in the first quarter of 2025, and clear profitability strains are evident as operating profits fall despite rising franchise sales. Sales impacts were confirmed following a Starbucks brand controversy in May, which saw weekly payment amounts drop by 26.3%. Around the same time, brands like The Venti and Mega MGC Coffee adjusted their prices, though the industry attributes these adjustments to complex cost factors such as exchange rates and bean prices rather than the controversy. Despite a high import-dependency structure, K-coffee exports continued their growth, with Israel surpassing China to become the largest export market starting in 2023.

강지혜 선임기자 · 08/13/2026

Cash Disappearing from Wallets... Only 1 in 6 Payments Uses Cash: How Far Has the 'Cashless Society' Come?
RESEARCH NOTESPremium

Cash Disappearing from Wallets... Only 1 in 6 Payments Uses Cash: How Far Has the 'Cashless Society' Come?

According to a Bank of Korea survey, the proportion of cash payments among domestic adults stood at 15.9% by transaction count, plunging by about 61.5% over 11 years from 41.3% in 2013, leaving only 38.5% of that previous level. The year 2023 marked the first time (at 50.5%) that methods where physical cards are not presented surpassed physical cards in domestic merchant card transactions, with the gap widening further to 52.4% in 2024 and 54.3% in 2025. Simple payment services grew to an average of KRW 1.1053 trillion per day. According to parliamentary data, commercial bank ATMs decreased by approximately 7,700 units from the end of 2020 through mid-2025, with the reduction rate generally higher in regional areas than in Seoul. However, 88% of people still had experience using cash in face-to-face transactions within the past month, making the guarantee of cash accessibility a new policy challenge. On July 15, 2026, the Financial Services Commission officially designated Project Hangang Phase 2 as an innovative financial service, expanding participating banks to 9 and the deposit token holding limit per wallet to KRW 10 million, while the exact start date for live transactions has not yet been officially finalized.

김민경 책임기자 · 08/09/2026

South Korean Game Market Reaches KRW 23.85 Trillion… Entering a 5-Year Phase of 'Moderate Expansion'
RESEARCH NOTESPremium

South Korean Game Market Reaches KRW 23.85 Trillion… Entering a 5-Year Phase of 'Moderate Expansion'

South Korea's domestic game industry sales in 2024 increased by 3.9% year-on-year to reach a record-high KRW 23.8515 trillion, but the growth rate dropped to 3.9% from 21.3% in 2020, signaling that the market has entered a phase of 'moderate expansion.' By sector, mobile games maintained more than half the share at KRW 14.071 trillion (59.0%), while console games posted the highest growth rate at 4.8%, indicating a shift in momentum toward console and PC blockbusters. Export values rebounded slightly to USD 8.50346 billion, maintaining the country's 4th place global market share at 7.2% behind China, the US, and Japan, while export diversification progressed with increased shares in North America and China. In 2025 corporate earnings, Nexon (KRW 4.5072 trillion) and Krafton (KRW 3.3266 trillion) achieved record-high performances, whereas companies like Kakao Games and Webzen struggled, sharpening the polarization based on the ownership of global IPs. In summary, the South Korean game market has already achieved growth in scale and now stands at a turning point moving toward a phase of 'qualitative competition' centered on IP and global competitiveness.

최수진 기자 · 08/02/2026

Where is Population Growth Highest? South Korea's 2026 Population Map Led by Gwangmyeong, Hwaseong, and Pyeongtaek
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Where is Population Growth Highest? South Korea's 2026 Population Map Led by Gwangmyeong, Hwaseong, and Pyeongtaek

Driven by large-scale redevelopment and reconstruction apartment moves, Gwangmyeong, Gyeonggi Province, saw its population rebound by approximately 8.5%, rising from 277,281 in October 2024 to 300,826 in February 2026, recovering the 300,000 mark after about five years. Hwaseong and Pyeongtaek in southern Gyeonggi Province posted population growth rates of 12.5% and 9.6% respectively over the past five years, backed by massive investments from semiconductor giants like Samsung Electronics and SK hynix, with a notable influx of the 3040 generation. Several other cities and counties in Gyeonggi Province, including Uiwang, showed population growth driven by the creation of new residential districts. Conversely, the administrative capital Sejong experienced three consecutive months of population decline from December 2025 to February 2026, turning into a net outflow due to factors such as the relocation of the Ministry of Oceans and Fisheries. Separately from domestic migration, the number of foreign nationals residing in South Korea surpassed 2.8 million for the first time in October 2025, setting a new all-time high.

이태민 책임기자 · 07/18/2026

Is Soju Sales Still Tied to the Economy? The 'Inverted Correlation' Revealed by Data
RESEARCH NOTESPremium

Is Soju Sales Still Tied to the Economy? The 'Inverted Correlation' Revealed by Data

Soju and alcohol are no longer 'recession buffers,' shifting instead into items where consumption declines even amid economic stagnation. Over the past decade, total alcohol and soju shipments have structurally decreased regardless of economic cycles, showing a post-COVID brief rebound followed by a continued downturn. During the sluggish domestic demand period from 2023 to 2026, household alcohol expenditure, soju retail sales, and major corporate soju revenue simultaneously declined, demonstrating that the 'soju in a recession' formula no longer works. With shrinking drinking populations and frequencies, the spread of preference-driven alcohol consumption, and the subordination of soju demand to dining-out economies, soju is becoming a product tied to dining and cultural trends rather than an inferior or recession-proof good. As the domestic market structurally stagnates, the industry is focusing on low-proof and premium products and export expansion, reading soju sales no longer as an economic thermometer, but as a cultural indicator reflecting Korean drinking culture and the spread of K-content.

이태민 책임기자 · 07/10/2026

PRACTICAL MANAGEMENT INSIGHT

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7 Operating Authorities CEOs Must Decide Before Adopting AI Agents
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7 Operating Authorities CEOs Must Decide Before Adopting AI Agents

In July and August 2026, safety evaluations by OpenAI and the AISI revealed instances where AI agents escaped test environments to external systems, driven by overly permissive network, tool, and account privileges rather than model performance. While a McKinsey survey shows 62% of companies are experimenting with agents, functional diffusion remains at a maximum of 10%, and Gartner projects over 40% of projects will be canceled by 2027, primarily due to a lack of authority standards. The seven key authorities a CEO must determine beforehand include reading, writing, payment and fund execution, deployment and operational reflection, external access, external communication, and delegation and self-expansion, each accompanied by core questions and baseline recommendations. Furthermore, stop conditions must be established prior to granting authority, supported by a three-tiered structure based on behavior, patterns, and people, alongside the principle of 'broad stoppage, narrow restart,' and an auditable record system. Management is responsible for determining these authorities, and reviewing an agent-specific authority specification quarterly provides the documentation, safety assurance, and human oversight required by the Basic AI Act.

박소유 책임기자 · 08/21/2026

The Era of 20% Engagement: Five Areas Leaders Must Review Every Week
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The Era of 20% Engagement: Five Areas Leaders Must Review Every Week

According to Gallup's 2026 report, global employee engagement has plummeted to 20% and manager engagement to 22%, with the leadership tier driving the decline. DDI data shows that 71% of leaders report increased stress, and trust in direct supervisors has sharply dropped from 46% in 2022 to 29% in 2024, making trust a new management target. McKinsey findings indicate middle managers spend less than 25% of their time on people management, pointing to bureaucracy as a structural cause consuming leaders' time. In AI transformation, the target for leaders to manage is not the technology itself, but the adoption environment, with active manager support emerging as a top variable determining implementation success. A leader's review areas consist of five categories: oneself, people, trust, work structure, and AI, with the essence of management being not control, but the repetition of regular reviews.

박소유 책임기자 · 08/12/2026

How to Design Competency Modeling Tailored to Your Organization
HR INSIGHTStandard

How to Design Competency Modeling Tailored to Your Organization

Competency modeling is the process of identifying required competencies based on specific behaviors observed in high performers within an organization. It is theoretically grounded in the Spencer family's iceberg model, which encompasses self-concept and motives alongside knowledge and skills. Competencies must be approached through three distinct tiers—company-wide core competencies, leadership competencies by rank, and job-specific competencies—as combining them into a single standard easily leads to a model disconnected from the field. The execution process spans six stages: setting objectives and scope, selecting target groups, data collection via behavioral event interviews or expert panels, developing a provisional model, validation, and finalization into a competency dictionary. This work should be carried out jointly by business unit leaders and management rather than the HR team alone. Rather than directly importing external frameworks, a hybrid approach that starts from and refines the actual behaviors of an organization's high performers is realistic, utilizing public standards such as the National Competency Standards (NCS) as reference frameworks. Once completed, the competency model serves as a common standard across all areas of human resource management—ranging from hiring interviews, competency evaluations, training, and succession planning to placement and compensation linkage—and risks remaining merely a document without regular reviews.

김민경 책임기자 · 08/10/2026

Can a Company Without an Org Chart or Reporting Structure Really Function?
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Can a Company Without an Org Chart or Reporting Structure Really Function?

From the mid-2020s, companies like Amazon, Google, and Citigroup began reducing middle management layers, a trend that accelerated in 2026 with layoffs at Meta (8,000), Cisco (4,000), and Block (4,000). In March 2026, Block CEO Jack Dorsey published an essay suggesting that middle management might not be permanently necessary, citing Zappos' holacracy and Valve's flat structure as direct reference points. However, Zappos and Buffer—both of which actually eliminated their org charts—eventually reintroduced managerial roles and 'natural hierarchies,' while even Valve has faced recurring criticism internally for 'hidden hierarchies.' Haier, often cited as a success story, did not eliminate hierarchy; rather, it redesigned management functions through market mechanisms such as profit-and-loss accountability and contracts. Gallup's latest 2026 data (showing a sharp decline in global engagement to 20% and manager engagement to 22%) demonstrates that the core of the problem is not the existence of managers, but their quality. It also shows that even the most radical redesign attempts in the AI era are ultimately reverting to the lessons left by past experiments: that the functions of coordination, evaluation, and development cannot be eliminated.

박소유 책임기자 · 08/10/2026

Successful AX: What and How to Succeed — 5 Conditions That Determine Performance
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Successful AX: What and How to Succeed — 5 Conditions That Determine Performance

Despite rising adoption rates, only a minority of companies are achieving tangible results from AI Transformation (AX). While South Korea's domestic AI adoption rate stands at 37.1% (65.1% for large enterprises, 35.6% for small and medium-sized enterprises), and about 90% of global companies invest in AI, only around 40% actually achieve financial performance. The core of successful AX is not introducing tools, but redesigning workflows themselves, backed by data preparation, governance frameworks, and employee readiness. Pre-defining measurable performance indicators allows pilots to scale enterprise-wide, and for SMEs, it is more realistic to start small with their 'most painful task' rather than mimicking large corporations. Ultimately, AX is not a technology project but an organizational transformation project, and the winners are determined by organizations that systematically build the fundamentals: workflows, data, governance, people, and measurement.

강지혜 선임기자 · 07/18/2026

Characteristics of Companies Where Employees Stay Long-Term — Respect, Not Salary, Drives Long-Term Employment
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Characteristics of Companies Where Employees Stay Long-Term — Respect, Not Salary, Drives Long-Term Employment

Statistics Korea data shows that the average duration of a youth's first job is only 1 year and 6.4 months, and Incruit data indicates that the primary cause of early resignation is not salary but 'job mismatch' (58.9%), demonstrating that the key to long-term employment lies in organizational culture. According to Gallup's 2026 report, global employee engagement stands at only 20%, and while a 'great stay' phenomenon driven by economic uncertainty is emerging in South Korea, this resembles defensive retention rather than voluntary engagement. Companies where employees stay long-term share five common traits: phased onboarding, systematic handover processes, non-aggressive managerial feedback styles, clear roles and responsibilities, respect for rest and leaving work on time, and a peer culture free of hazing. Notably, 70% of the variance in team engagement stems from managers, and as Google's Project Aristotle confirmed, 'psychological safety'—where mistakes and questions do not lead to punishment—forms the foundation of high-performing teams and long-term employment. Long-term employment is not a matter of chance, but the result of an operational system designed to 'respect people'; because salary can be a reason to join, but respect is the reason to stay, investing in organizational culture is ultimately a matter of profitability.

김민경 책임기자 · 07/10/2026

PREMIUM MANAGEMENT INSIGHT

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How to Assess AI Investment Payback Periods: 4 Steps for Evaluating CAPEX ROI
MANAGEMENT ARTICLEPremium

How to Assess AI Investment Payback Periods: 4 Steps for Evaluating CAPEX ROI

When Alibaba released its June quarter earnings on August 20, 2026—reporting a 75% drop in net profit to 10.444 billion yuan alongside a 75% surge in CAPEX to 67.678 billion yuan—the exact same data yielded completely opposite interpretations. Stage 1 breaks investments down into three layers: infrastructure, application, and capability, noting that internally, Alibaba's AI Cloud segment saw EBITA surge 133%, while its AI Labs segment saw losses quadruple. Stage 2 decomposes payback effects into cost, revenue, speed, and risk, with a PwC survey showing top 20% companies capturing 74% of AI's economic value, a gap driven by a focus on growth. Stage 3 requires finance and operations to first agree on the useful life that serves as the denominator for the payback period, which GPU depreciation debates prove is a management judgment rather than a hard fact. Stage 4 locks in stop criteria and re-evaluation points at the time of investment approval, noting that escalating monthly inference and token operating costs—rather than initial deployment expenses—most frequently break payback calculations.

강지혜 선임기자 · 08/29/2026

Essential CEO Competencies for Successful AX Implementation — 88% Adoption Rate, Only 6% Achieving Results: Five Kinds of Leadership Driving the Divide
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Essential CEO Competencies for Successful AX Implementation — 88% Adoption Rate, Only 6% Achieving Results: Five Kinds of Leadership Driving the Divide

Adoption is a constant, results are a variable — While 88% of companies use AI according to a McKinsey survey, only about 6% are high-performing companies contributing 5% or more to company-wide profits.<br>Governance Ownership — Direct supervision of AI governance by the CEO emerged as the factor most strongly correlated with generative AI's contribution to profits and losses.<br>Redesign Sensibility — 55% of high-performing companies fundamentally redesigned workflows upon AI implementation. The rest hovered around 20%.<br>The Power of Environmental Design — According to Korea Chamber of Commerce and Industry analysis, the 13.8 percentage point gap in AI utilization between large and small-to-medium enterprises narrowed to 4 percentage points when controlling for organizational environment.<br>Skeptical Judgment — In a Korn Ferry survey, the number one top-priority competency for hiring was not AI technology, but critical thinking (73%) to evaluate and reject AI outputs.

김민경 책임기자 · 08/12/2026

Can an Organization Grow Without Delegation? Gallup and McKinsey Data Reveal the Upper Limit of Growth
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Can an Organization Grow Without Delegation? Gallup and McKinsey Data Reveal the Upper Limit of Growth

The upper limit of growth is a leader's capacity to delegate — A 2014 Gallup study of 143 Inc. 500 CEOs showed that executives with high delegating talent achieved a 3-year growth rate of 1,751%, outperforming peers by 112 percentage points, and generated 33% higher revenue in 2013 ($8 million vs. $6 million). The 2026 managerial collapse heightens the urgency of delegation — The Gallup 2026 report showed manager engagement dropped from 27% to 22%, the largest decline on record for managers, demonstrating that the middle-management model of bearing responsibility without authority has reached its limit. Delegation creates a multiplier effect on decision-making — In a benchmark study by McKinsey, organizations combining empowerment and coaching were 3.2 times more likely to have delegated decisions that were both high-quality and fast, while outperforming peers in financial performance. In the AI era, delegation has become a talent strategy — According to Deloitte's 2026 report, 7 out of 10 leaders cited agility as a core strategy, and because judgment cannot be cultivated without the experience of delegation, delegation is a prerequisite for talent development in the AI era. Delegation must be a system, not a decision — Four principles—categorizing decisions, result-oriented delegation, accompanying coaching, and safe spaces for failure—transform delegation from an individual leadership trick into an organizational capability.

박소유 책임기자 · 07/07/2026

The Illusion That 'Those Who Stay Late Work Best': Shorter Hours Improve Productivity, Hiring, and Retention
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The Illusion That 'Those Who Stay Late Work Best': Shorter Hours Improve Productivity, Hiring, and Retention

Longest yet least productive—Korea remains high in annual working hours at approximately 1,865 hours in 2024 (7th in the OECD), yet ranks 31st in hourly productivity, remaining in the 30s for seven consecutive years and demonstrating that working hours and performance are not proportional. The economics of overtime—according to Stanford researcher John Pencavel, productivity plummets after 48–49 hours per week, and the total output of a 70-hour workweek is virtually identical to that of a 56-hour workweek. Overtime is not free; its costs simply do not appear immediately on the income statement. Korea’s first empirical evidence—released in March 2026, a one-year pilot of Gyeonggi Province’s 4.5-day workweek across 107 institutions and 3,050 individuals showed that despite a 4.7-hour reduction in weekly hours, productivity per worker rose by 2.1% and turnover dropped from 22.8% to 17.4%. The measurement trap—overtime culture survives because performance is hard to measure while time is easy to measure. Comprehensive wage systems dull the sense of overtime costs, and chronic overtime is a sign of management design failure rather than an indicator of dedication. Redesign, not just reduction—cutting time without improving work processes leads to the side effect of 'compressed labor.' The real question managers must ask is not 'How long do they work?' but 'How much value does that time create?'

박소유 책임기자 · 06/24/2026

Learning Management from the 90-Minute Pitch: Strategic and Tactical Lessons the 2026 World Cup Offers to Businesses
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Learning Management from the 90-Minute Pitch: Strategic and Tactical Lessons the 2026 World Cup Offers to Businesses

The World Cup stadium is a microcosm of corporate management—the process of mobilizing an organization toward goals with limited time and resources, analyzing opponents, and responding to variables in real time is fundamentally similar to management. Distinguish yet align strategy and tactics—when you think of broad direction (strategy) and specific execution (tactics) separately while connecting them consistently, you can avoid the trap of vision and execution operating in silos. Data does not replace intuition; it prompts better questions—the discernment to filter out indicators that have actual causality with performance, rather than easily measurable surface-level numbers, is key to decision-making in the data era. Structure, placement, and selection and concentration dictate performance—competitiveness is created by the structure in which an individual works rather than their individual ability, and by resource allocation focused on critical junctures rather than equal distribution. Ultimately, people move organizations—leadership that prepares for crises with multiple scenarios, motivates each member appropriately, and leads the team with an unshakeable identity is the final completion of all strategy.

강지혜 선임기자 · 06/19/2026

Feedback Focused on Strengths Boosts Profitability by 8.9% — The Principles of High-Performing Organizations Through Data
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Feedback Focused on Strengths Boosts Profitability by 8.9% — The Principles of High-Performing Organizations Through Data

Frequency — Treating feedback as a weekly habit rather than an annual review makes employees five times more likely to be engaged and 48% less likely to look for another job. Strength-Centered — Weighting discovery over fault-finding leads to a 12.5% increase in productivity and an 8.9% rise in profitability. Combination of Recognition — Amplifying feedback with recognition drastically boosts employee engagement to 61% compared to 38% without it at the same frequency. Two-Way Flow — Managers must also receive feedback, and coaching, often the weakest area, is a cultivated competency rather than an innate trait. AI Era — The faster AI provides insights, the more human feedback skills that convert data into motivation become a core competitive advantage.

박소유 책임기자 · 06/18/2026

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What is the Difference Between Treasury Stock Cancellation and Dividends? Analyzing SK Hynix's 40 Trillion Won Plan
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What is the Difference Between Treasury Stock Cancellation and Dividends? Analyzing SK Hynix's 40 Trillion Won Plan

SK Hynix resolved on August 19, 2026, to acquire and subsequently cancel approximately 40 trillion won (about 3.3% of issued shares) of its own treasury stock in the open market, while raising its free cash flow (FCF) return target to '50% or higher.' While dividends distribute cash to all continuous shareholders without altering the share count, treasury share buybacks and cancellations provide cash only to selling shareholders while increasing the equity stake and EPS of remaining shareholders. Dividend income is subject to a 15.4% withholding tax and potential comprehensive financial income taxation (with temporary tax separation privileges for high-dividend companies from 2026 to 2028), whereas cancellation does not immediately trigger taxes for remaining shareholders. KB Financial Group's 1.02 trillion won cancellation in 2025 serves as an example combined with a fixed total dividend policy, structurally designed to automatically boost dividends per share through cancellation. The revised Commercial Act implemented in March 2026 mandates the cancellation of acquired treasury shares within one year in principle, making stock buybacks by domestic companies effectively contingent on cancellation.

강지혜 선임기자 · 08/21/2026

Employment Contracts, Annual Salary Contracts, and the Labor Standards Act: Which Prevails?
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Employment Contracts, Annual Salary Contracts, and the Labor Standards Act: Which Prevails?

Employment and annual salary contracts are agreements between parties, but they cannot fall below the minimum standards set by the Labor Standards Act (Articles 3, 4, and 15 of the Labor Standards Act). The minimum wage for 2026 is set at 10,320 won per hour (2,156,880 won per month), and contract provisions falling short of this are automatically voided, with statutory standards applying instead (Ministry of Employment and Labor Notice No. 2025-47). The hierarchy of documents runs from the Constitution to the Labor Standards Act, collective agreements, rules of employment, and employment contracts, but if a lower-level document contains more favorable conditions, that part prevails (Principle of Priority for Favorable Conditions, contrary interpretation of Article 97 of the Labor Standards Act). An annual salary contract is a separate agreement specifying or modifying wage conditions, but provisions violating mandatory regulations, such as an annual salary scheme including severance pay, are generally void (Supreme Court Full Bench Decision 2007Da90760 delivered on May 20, 2010). The Supreme Court Full Bench decision in December 2024 abolished the 'fixity' requirement in calculating ordinary wages, opening the way so that ordinary wage status cannot be excluded solely by a tenure-condition phrase in a contract.

박찬호 선임기자 · 08/12/2026

Blistering Korean Peninsula: How Much Hotter Has South Korea Become Over the Past Decade?
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Blistering Korean Peninsula: How Much Hotter Has South Korea Become Over the Past Decade?

South Korea's annual average temperature has distinctly shifted upward over the past decade, rising from 13.4℃ in 2016 to 14.5℃ in 2024, the first time it entered the 14℃ range and the highest on record. Record highs were concentrated in recent years, with 2023 (13.7℃), 2024 (14.5℃), and 2025 (13.7℃) ranking 1st to 3rd historically. In the summer of 2025, the nationwide average temperature hit a record 25.7℃, and the average daily maximum temperature reached an all-time high of 30.7℃. Furthermore, Yangsan recorded 41.4℃ on July 31, 2026, and 41.6℃ on August 1, surpassing Hongcheon's 2018 record of 41.0℃ to set a new all-time high temperature. The normalization of extreme heat—marked by a restructured three-tier heatwave warning system featuring the new 'severe heatwave warning' and the earliest-ever first fatality on the opening day of heat-related illness monitoring—is expanding into a structural variable across institutional, health, and industrial sectors.

강지혜 선임기자 · 08/02/2026

Same AI, Different Results: Core Principles of Prompt Writing According to Experts
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Same AI, Different Results: Core Principles of Prompt Writing According to Experts

Criticism is mounting that even when using the same AI, the quality of results and work processing speed vary depending on how prompts are written. Experts highlight six core principles: providing context, assigning roles, specifying output formats, presenting examples, inducing step-by-step thinking, and iterative correction. However, generative AI is not free from hallucinations where it plausibly fabricates non-factual information, requiring separate verification for important figures and facts. While core principles apply commonly to most models, service-specific results may vary slightly due to differences in system settings and tool integration methods. Ultimately, even as tools evolve, the user's communication capability to clearly convey what is desired remains the core variable determining the quality of the output.

이우리 선임기자 · 06/30/2026

How Strategy and Tactics Differ: The Crucial Distinction Between Designing Victory and Executing It
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How Strategy and Tactics Differ: The Crucial Distinction Between Designing Victory and Executing It

Strategy is a high-level concept that determines where an organization will win in the long term, while tactics are the specific execution methods used to achieve that goal. Strategy addresses long-term, comprehensive direction, whereas tactics are short-term, field-oriented action plans that flexibly adjust to changing circumstances. In the perspectives of both Sun Tzu and Carl von Clausewitz, strategy is distinguished as achieving the overarching purpose of an entire war, while tactics are the execution methods for individual battles. In modern management, strategy is a matter of market positioning and choice, while tactics are execution tools such as campaigns, pricing, channels, and programs. Ultimately, tactics without strategy is busywork without a purpose, and strategy without tactics is a plan that is never executed, meaning the two concepts must always work together.

박찬호 선임기자 · 06/27/2026

What is AX? A Transformation That Changes Not Just Tools, But 'How We Work'
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What is AX? A Transformation That Changes Not Just Tools, But 'How We Work'

AI Transformation (AX) goes beyond simply adding AI to a few tasks, representing a shift in which organizations completely redesign their ways of working around AI. While DX (Digital Transformation) focused on 'automation' by moving analog to digital, AX enters an 'autonomy' stage where AI learns, predicts, and judges on digitized data, with both concepts existing on a continuum rather than as opposites. Approximately 65% of global companies already utilize AI in daily operations (McKinsey, 2024), and governments and domestic companies like Samsung and Daesang have declared '2026 the First Year of AX' to accelerate the transition. The core of AX lies in 'redesigning work' beyond mere 'efficiency,' requiring a balanced interlock of four key elements: data, infrastructure, people (AI literacy), and culture. Because it can begin in small work units without massive investments, it presents an opportunity particularly for small and medium-sized enterprises, shifting the core question from 'Will we adopt AI?' to 'How will we redesign our work?'

이태민 책임기자 · 06/23/2026

Semiconductor Special Act Enforcement Decree Takes Effect August 11: Priority Designation for Non-Capital Region Clusters and Special Account to Run Until 2036
INDUSTRY POLICYStandard

Semiconductor Special Act Enforcement Decree Takes Effect August 11: Priority Designation for Non-Capital Region Clusters and Special Account to Run Until 2036

The Semiconductor Special Act and its enforcement decree took full effect on August 11, formally activating the national support system approximately six months after the law's enactment on February 10. A new Presidential Committee on Strengthening Semiconductor Industry Competitiveness has been established as the overarching control tower to oversee cluster designations and review master plans. Infrastructure costs for clusters will be subsidized by the central and local governments at 50% to 100% of total project expenses, with complete funding for redundancy and supply chain stability facilities, and a non-capital region priority principle explicitly codified. A dedicated special account operational until 2036 secures a mid-to-long-term financial channel, complemented by the designation of training institutions to connect regional professionals with employment and retraining. However, the 52-hour workweek exemption clause was ultimately excluded due to strong opposition from labor unions. With the implementation coinciding with a boom period—July semiconductor exports reaching $41.0 billion, accounting to 40.3% of total exports—the speed of execution and securing financial resources remain key focal points.

류현진 선임기자 · 08/12/2026

"It Wasn't a Glacial Lake Outburst"... What is Known About the Cause of the Nepal Mega-Flood
ISSUE BRIEFINGFree

"It Wasn't a Glacial Lake Outburst"... What is Known About the Cause of the Nepal Mega-Flood

Around 8:37 AM on August 26, 2026, a massive glacier and rock collapse occurred in the high-altitude region of Langtang Lirung (7,234m) near the border of Nepal and China's Tibet. There was no heavy local rainfall. The US Geological Survey (USGS) revised a signal initially classified as a magnitude 4.4 earthquake to a collapse event equivalent to magnitude 5.2. The collapsed ice and rock turned into a torrent mixed with water and sediment, engulfing the downstream areas. Initial satellite imagery and expert analysis lean toward a glacier/rock slope collapse combined with valley blockage and its subsequent failure, rather than a typical GLOF where a glacial lake dam bursts. However, the exact chronological sequence of each stage can only be confirmed once field investigations are completed. The torrent swept through downstream gorges and settlements for about 100 km from Rende Kola through Bhotekoshi to Trishuli. As of August 29, Nepalese disaster authorities recorded 626 deaths and 2,426 missing persons, while China's Tibet separately reported 7 deaths and 554 missing persons. Hydropower sites were densely concentrated along the path of the torrent. The Independent Power Producers' Association, Nepal (IPPAN) stated that as of August 29, 13 business sites suffered direct damage, and communication was lost with 934 people across 11 of those sites. The 216 MW Upper Trishuli-1 (UT-1) project, a joint undertaking by Korea South-East Power (KOEN) and Doosan Enerbility, is one of them. At this site alone, the whereabouts of 576 people are unaccounted for, and 9 South Koreans remain out of contact, meaning that entire clusters of infrastructure in a single river basin were exposed to the same upstream risk.

“We're Hiring, But Fewer Than 10 People”… The 2026 Second-Half Recruitment Market Trend Through Hiring Data
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“We're Hiring, But Fewer Than 10 People”… The 2026 Second-Half Recruitment Market Trend Through Hiring Data

SUSTAINABILITY WATCH

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Environmental Permitting Pressure on Automotive and Secondary Battery Plants: Integrating Environmental Permits into a Single System
ESG POLICY & STRATEGYPremium

Environmental Permitting Pressure on Automotive and Secondary Battery Plants: Integrating Environmental Permits into a Single System

On August 23, the Ministry of Climate, Energy and Environment announced plans to legislate amendments to the Enforcement Decree and Enforcement Rule of the Environmental Pollution Facilities Act, adding seven industries—including automotive and secondary batteries—to the integrated environmental permitting system. The integrated environmental permit combines up to 10 types of environmental permits and 73 documents scattered across seven laws into a single integrated environmental management plan, while setting customized emission standards for each business site. Implementation is scheduled for January 2028 for three food-related industries and January 2029 for automotive, secondary batteries, flat glass, and rubber products, with a four-year grace period granted to existing business sites. The amendments also include easing measures, such as extending the regular inspection cycle for exemplary business sites to up to five years and easing requirements for integrated environmental managers at small and medium-sized enterprises (SMEs), while strengthening the responsibilities of agency service providers as a trade-off. Currently in the legislative notice stage and not yet finalized, the schedule for establishing and supplementing industry-specific Best Available Techniques (BAT) reference documents is considered the biggest variable for the system's establishment.

이태민 책임기자 · 08/29/2026

What Is Ongoing Emissions Responsibility? The New Net-Zero Standard of SBTi 2.0
ESG POLICY & STRATEGYPremium

What Is Ongoing Emissions Responsibility? The New Net-Zero Standard of SBTi 2.0

The SBTi introduced the 'Ongoing Emissions Responsibility' (OER) framework in its Corporate Net-Zero Standard Version 2.0 released on June 11, 2026. OER consists of three stages: an optional recognition program, post-2035 removal requirements, and the neutralization of residual emissions at net-zero. The recognition program is divided into three tiers—Engaged, Advanced, and Leadership—with contribution budgets ranging from $20 to $80 per ton. Valued mitigation outcomes (VMOs) used for OER must be accounted for separately from inventories and target progress, and cannot be claimed as emission deductions. The standard takes effect on February 1, 2027, and requirements beyond 2035 are scheduled to be re-evaluated in version 3.0.

박소유 책임기자 · 08/21/2026

Safety is Now Public: August 2026 Marks the Dawn of the Corporate 'Safety Report Card' Era
ESG POLICY & STRATEGYPremium

Safety is Now Public: August 2026 Marks the Dawn of the Corporate 'Safety Report Card' Era

The Occupational Safety and Health Disclosure System takes effect on August 1, 2026, requiring companies with 500 or more regular employees and construction contractors with a project value of 120 billion won or more to publicly disclose their safety and health status annually. Although fatal accidents in the first half of 2026 hit a record low of 253, a clear polarization by accident type emerged, with falls decreasing while fires and explosions actually increased. Over four and a half years of Severe Accidents Punishment Act enforcement, court rulings have repeatedly pointed to a lack of risk identification and improvement procedures, as well as inadequate criteria for evaluating responsible personnel, while the suspended sentence rate reached 85.7%. Safety leadership manifests not through declarations, but through resource and time allocation and the fostering of psychological safety, while safety culture matures in stages, akin to the Hudson model or Bradley curve. With international standards such as the ISO 45001 revision and the ISSB human capital project also expanding safety into the realms of culture and well-being, businesses must transition from lagging to leading indicator management.

이태민 책임기자 · 08/13/2026

Beyond Paper Checks: Hyundai Motor's Supply Chain ESG Moves to On-Site Verification at Mines and Smelters
ESG MARKET & CASESPremium

Beyond Paper Checks: Hyundai Motor's Supply Chain ESG Moves to On-Site Verification at Mines and Smelters

Hyundai Motor conducted ESG written assessments for 2,086 suppliers and on-site audits for 25 suppliers in 2025, while 25 suppliers with potential regulatory violations completed corrective action plans. Independent third-party RCS Global audited 3 mines and smelters in the Democratic Republic of Congo and Indonesia, identifying 58 non-conformities (47 major, 11 minor), with corrective actions currently underway. Legal experts generally view the EU Omnibus Directive, which took effect in March 2026, as clarifying risk-based due diligence rather than simply reducing audit volume. Through a mutual growth agreement signed with the Korea Fair Trade Commission in July, primary suppliers are paid within an average of 10 days post-closing instead of the statutory 60 days, while tier-2 and tier-3 suppliers are supported through training, incentives, and shared growth payments (benefiting an estimated 5,500+ companies). Despite achievements such as achieving RE100 across all operations in Europe, North America, and India, expanding the depth of in-depth audits and securing visibility into tier-2 and tier-3 suppliers remain future tasks.

류현진 선임기자 · 08/10/2026

Incheon Int'l Airport Corporation, Equipped with an ESG Committee, Failed to Stop Rampant Issuance of Parking Passes
ESG MARKET & CASESPremium

Incheon Int'l Airport Corporation, Equipped with an ESG Committee, Failed to Stop Rampant Issuance of Parking Passes

An audit by the Ministry of Land, Infrastructure and Transport revealed that 31,265 regular parking passes—accounting for 84.5% of Incheon Airport's total 36,971 parking spaces—were issued without limit to employees and others. Short-term parking lots closest to the terminals were operated primarily for employees, reducing spaces available to general passengers by more than half. Numerous instances of private use were uncovered, including 1,220 cases of free parking during vacations, with waived fees amounting to 4.1 billion won in 2025 alone. As this occurred in a public enterprise equipped with an ESG committee and internal control systems, the gap between formal governance and substantive control has become a core issue. With improvement measures implemented in July sparking controversy over subsidiary discrimination, executing full recovery and disciplinary actions alongside equitable follow-up measures remains a pressing task.

강지혜 선임기자 · 07/10/2026

The Final Puzzle of Successful ESG Management: How to Design Organizational Culture
ESG MARKET & CASESPremium

The Final Puzzle of Successful ESG Management: How to Design Organizational Culture

In 2026, ESG is in a paradoxical phase. While the US-driven backlash has reduced the usage of the term 'ESG,' regulations and practical demands are actually intensifying through EU CSRD/CBAM, Brazil's ISSB mandates, and South Korea's disclosure roadmap. Recent research and HR data show that corporate cultural orientation correlates significantly with ESG performance, employee satisfaction, and pride, suggesting that the success or failure of ESG depends on organizational culture rather than systems. Patagonia embedded its mission into its institutional and daily operations through benefit corporation conversion, ownership changes, environmental internships, and trust-based autonomy, realizing 'ESG driven by culture.' Unilever connected strategy, employee well-being, and ESG into a single operating system through the USLP, while global companies like Microsoft drive cultural shifts by linking executive compensation to sustainability metrics such as climate, workforce, and ethical AI. Principles of organizational culture design that South Korean companies can adopt include leadership internalization, institutionalization of values, employee participation experiences, speak-up cultures, and prudent compensation/KPI alignment. KBR's perspective is that as the regulatory phase deepens, only 'ESG embedded in culture' can withstand the post-ESG debate.

이지영 기자 · 06/30/2026

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From 44% to 70%: How a Single Remark from NVIDIA Upended the AI Infrastructure Landscape
BUSINESS / INVESTMENTStandard

From 44% to 70%: How a Single Remark from NVIDIA Upended the AI Infrastructure Landscape

Nvidia reported fiscal Q2 2027 revenue of $96.221 billion (+106%) and data center revenue of $89.0 billion (+117%), beating both market consensus and its own guidance. CFO Colette Kress provided a preliminary outlook for fiscal 2028 revenue growth of approximately 70% during the earnings call—not an official formal guidance, but an unusual statement far exceeding the existing analyst consensus of 44-45%. The company explained that 70% is a figure reflecting supply constraints, and customer demand forecasts point to roughly double that level. Gross margins were guided down to 71-72% in Q4—with the direct cause being memory costs rather than competition, interpreted as a sign of strengthened pricing power for Samsung Electronics and SK Hynix. AWS plans to deploy 2 million additional GPUs from 2027 to 2028 (this quarter to fiscal Q2 2029), and order backlogs for South Korea's three major power equipment makers have exceeded 36 trillion won, though the $500 billion capital financing platform with six financial institutions is still in the promotion stage prior to final contracts amid an ongoing circular financing debate.

류현진 선임기자 · 08/29/2026

Where Do Advanced Global Companies Stand on AI Transformation? The Widening Gap Between 'Deep Transformation' (34%) and 'Surface-Level Adoption' (37%)
AI / TECHStandard

Where Do Advanced Global Companies Stand on AI Transformation? The Widening Gap Between 'Deep Transformation' (34%) and 'Surface-Level Adoption' (37%)

According to a Deloitte survey conducted in August–September 2025 and released in January 2026, only 34% of global enterprises are in the deep transformation stage of fundamentally reimagining business models with AI, while 37% remain at surface-level adoption, revealing a stark performance gap. A McKinsey survey released in November 2025 shows that while 88% use AI, enterprise-wide value creation remains limited to a few, with only 39% reporting an impact on EBIT (mostly under 5 percentage points of improvement). JPMorgan Chase has accumulated nearly a decade of experience since 2017—from COiN (saving 360,000 hours annually) to the 2024 LLM Suite (deployed to over 230,000 employees)—now operating 450 use cases, with CEO Jamie Dimon citing up to $2 billion in annual business value. Siemens leads manufacturing AX with industrial AI agents and digital twins, establishing 2026 as a 'starting point' with its Erlangen plant as the initial blueprint, alongside a successful 8-hour autonomous logistics demonstration using humanoid robots in April. Common traits among high-performing companies include workflow redesign, proactive governance, and parallel growth goals, while key focal points for the second half of the year include the disparity in adoption speeds across industries (including healthcare's 'fast to explore, slow to deploy' pattern) and the standardization of ROI measurement frameworks.

이우리 선임기자 · 08/12/2026

Where Does China's Manufacturing AI Automation Stand? The Gap Between Mass Robot Deployment and Early Humanoid Commercialization
AI / TECHStandard

Where Does China's Manufacturing AI Automation Stand? The Gap Between Mass Robot Deployment and Early Humanoid Commercialization

According to the IFR, 54% of global new industrial robot installations (approximately 295,000 units) were concentrated in China in 2024, and production in the first half of 2025 increased by 35.6% year-on-year, sustaining the growth trend. Humanoids remain in the early commercialization stage; UBTech's contract with Airbus is a single-robot proof-of-concept, and its breakthrough past "1,000 units produced" actually translates to about 500 units delivered. UBTech itself stated that the work efficiency of the Walker S2 reaches at most half that of a human, and over 70% of Unitree's revenue comes from research and education rather than industrial applications. The IFR recalculated China's robot density from 470 down to 166, not because the number of robots decreased, but as a result of updated manufacturing employment statistics. KBR analyzes that South Korea must respond to China not through a robot "headcount" competition, but through the speed of ecosystem design encompassing data, standards, and supply chains.

강지혜 선임기자 · 08/10/2026

The 'NATO Wall' That Swallowed 60 Trillion Won: Why Canada Chose Germany Over Hanwha Ocean
BUSINESS / INVESTMENTStandard

The 'NATO Wall' That Swallowed 60 Trillion Won: Why Canada Chose Germany Over Hanwha Ocean

On July 6, Canada selected Germany's TKMS as the preferred bidder for its 60 trillion won Canadian Patrol Submarine Project (CPSP), leaving Hanwha Ocean as the reserve negotiator. The core of the decision was Canada's strategic judgment regarding NATO interoperability, Arctic operation optimization, and strengthened European security cooperation, rather than performance alone. While Hanwha Ocean's KSS-III led in battle-tested deployment and fast delivery, TKMS won with a CAD 167 billion economic package and a joint Germany-Norway fleet configuration. Immediately after the announcement, Hanwha Ocean's stock plummeted over 20%, but securities firms maintained a 'buy' rating, evaluating it as a supply-and-demand issue rather than a fundamental flaw. Key checkpoints ahead include the Canada-TKMS main contract negotiations (6-18 months), follow-up projects in Poland and the Middle East, and the materialization of North American MRO and MASGA initiatives.

최수진 기자 · 07/12/2026

China's Quiet Weapon: Rare Earths and Battery Supply Chains as the Biggest Bottlenecks for Global Industry in 2026
GLOBAL ECONOMYStandard

China's Quiet Weapon: Rare Earths and Battery Supply Chains as the Biggest Bottlenecks for Global Industry in 2026

In October 2025, China expanded its rare earth export controls to 12 categories and introduced a 0.1% extraterritorial application, with many of the related measures suspended until November 10, 2026. Japan experienced actual, un-suspended controls, leading to sharp 88% and 82% declines in its rare earth imports from China in March and April respectively, with dysprosium and terbium imports dropping to virtually zero since January. Rare earth prices have surged since the beginning of the year, forming a "dual-market" structure where supplies sourced outside China command a 4 to 6 times premium over domestic Chinese prices. While MP Materials and Lynas have established initial milestones for a non-China supply chain, they are still far from sufficient to replace China's refining market share (approximately 91%). The South Korean battery industry must build the framework for alternative supply chains within this year, caught between a double deadline: the expiration of China's suspension on November 10 and the expiration of the US FEOC graphite suspension at the end of the year.

이지영 기자 · 07/10/2026

Rate Cuts Are Over, Hikes Are Next: How the Warsh Fed Reversed the Course of Interest Rates
GLOBAL ECONOMYStandard

Rate Cuts Are Over, Hikes Are Next: How the Warsh Fed Reversed the Course of Interest Rates

At its first FOMC meeting under the Warsh regime, the Federal Reserve kept its benchmark interest rate frozen at 3.50–3.75% for the fourth consecutive time. However, the dot plot signaled the possibility of a rate hike within the year, effectively declaring the end of the easing cycle. International oil prices have surged due to military conflicts between the U.S. and Iran in the Middle East, and May inflation indicators rose to the low-4% range, signaling a re-acceleration of inflation. U.S. employment indicators remained robust in May with 150,000 to 200,000 job additions and an unemployment rate in the low-to-mid 4% range, weakening the justification for rate cuts with this 'high inflation and solid employment' combination. In South Korea, amid an environment of a 2.50% base rate, a won-dollar exchange rate of 1,530–1,560 won, and 3.2% consumer inflation, the Bank of Korea's monetary policy dilemma is deepening as it must simultaneously account for the exchange rate, inflation, and household debt. U.S. interest rates are entering a phase shifting from 'higher for longer' to simply 'higher,' making it time for businesses and investors to redesign their foreign exchange hedging, financing, and portfolio strategies based on scenario-driven response systems rather than relying on 'rate cuts within the year.'

강지혜 선임기자 · 07/04/2026