Lotte Hotels & Resorts Gimhae becomes 1st 5-star family hotel in S. Gyeongsang Province

Lotte Hotels & Resorts Gimhae earned a five-star family hotel distinction from the Korea Tourism Association on Thursday. With this achievement, it has become the first family hotel in South Gyeongsang Province to receive a five-star rating. According to the Korea Tourism Association, a family hotel is defined as a type of accommodation designed for family travelers, offering rooms with cooking facilities and additional amenities such as dining, fitness, recreational or training facilities — all available for guest use during their stay. The star-rating evaluation is based on both scheduled and random on-site inspections that assess the hotel's hygiene, facilities and service quality. To receive a five-star rating, a hotel must score over 900 points out of 1,000. Lotte Hotels & Resorts Gimhae, which opened in October 2024, features 250 rooms, including spacious family-friendly accommodations for up to six guests, as well as pet-friendly rooms. The hotel’s design is inspired by Korea’s Gaya Kingdom (42-562), with a concept that blends cultural elegance and regional identity. On-site facilities include a kids’ play zone, indoor and outdoor swimming pools, a tennis court, a screen golf range, a dog park and a pet-friendly glamping area. To celebrate its five-star recognition, Lotte Hotels & Resorts is launching a special room package and an online event. The package is available at Lotte Hotel & Resort Gimhae, as well as at its sister properties in Sokcho in Gangwon Province, Buyeo in South Chungcheong Province and on Jeju Island. It includes a one-night stay in a premium room equipped with upgraded amenities, along with complimentary wine, bathrobes, breakfast and pool access. Reservations can be made through the official Lotte Resorts website until May 18, for stays through Dec. 31. In addition, a celebratory comment event will run on the resort’s website through May 18. Two winners will be randomly selected to receive round-trip Air Busan tickets between Gimpo and Gimhae. Winners will be notified individually on June 2.

Floating Pokemon return to Seoul

A giant Pokemon balloon floated on Seokchon Lake in Seoul Friday, marking the return of the popular Pokemon art balloon exhibition, which drew more than three million visitors in 2024. This year’s event is organized in collaboration with the Songpa-gu District Office and Lotte Group, a major South Korean conglomerate. The display centers on Ditto, a purple Pokemon known for its ability to transform into any form. A 16-meter-tall Ditto-as-Lapras balloon floats above the lake, with a Ditto-as-Pikachu perched on its back. Nearby, additional Ditto figures installed near the Lotte World Tower offer photo opportunities and contribute to the festive atmosphere. The installation will remain on view through May 18.

Police bust a 800 billion won illegal gambling site operator after tailing a 'suspicious car'

Officials of the Seoul Metropolitan Police Agency said Friday they caught a 37-year-old man wanted for operating a gambling website handling around 800 billion won ($557.3 million), after checking a car roaming around a local velodrome. The bust took place Wednesday after patrolling police officers grew suspicious of a car that was circling the outside of a track cycling arena in Gwanak-gu, Seoul. The officers ran the license plate through the police system and found that it belonged to a suspect wanted by the Busan Metropolitan Police Agency for operating a gambling website between 2022 and 2024. When approached by police, the suspect disobeyed orders to step out of the vehicle and fled for about 500 meters, but was eventually stopped by officers and arrested. Police contacted the BMPA to confirm that the suspect is the person wanted for the illegal operation, and he was placed in the custody of the Busan police. Officials are investigating to see if he had any accomplices when operating the gambling website. South Korean law bans any gambling by its citizens outside or within its borders, aside from a few designated establishments granted an exception by the authorities and the state-approved lotteries. Article 247 of the Criminal Act states that running gambling establishments is punishable by up to five years in prison or a fine of 30 million won ($20,900). Under Article 246 of the same act, those caught for illegal gambling face criminal punishment of a fine up to 10 million won or up to three years in prison; habitual gambling can be punished with up to a fine of 20 million won. The law grants exception to small-scale gambling deemed by the court to be for fun.

Foreign gaming companies must appoint local reps in Korea under new law

Game companies with annual sales of at least 1 trillion won, or 100,000 monthly users in Korea, must designate a domestic representative under legal changes taking effect later this year Foreign-based game companies in South Korea will be required, starting later this year, to designate a domestic representative for legal compliance with gambling-related statutes and other rules, if they grow to a certain size in terms of sales or number of users. The change is in line with a revision of the Game Industry Promotion Act, set to take effect on Oct. 23, according to the Ministry of Culture, Sports and Tourism. Companies subject to this measure will be notified individually, the ministry said. The new mandate applies to foreign-based companies that recorded 1 trillion won ($700,000) in total annual sales the previous year, or averaged at least 100,000 Korean users in the final three months of the year. Some companies not meeting those criteria can also be required to designate a domestic proxy if they were previously involved in an incident that caused substantial damage to their users or if they are deemed to pose a substantial risk. Domestic proxies of foreign game companies will have to follow requirements stipulated by the Game Industry Promotion Act, which include restrictions on "speculative gaming content" -- a legal term referring to games that include gambling elements, and government guidelines on disclosing probability information for gaming items that involve chance. South Korea prohibits gambling for its citizens with few exceptions such as the Kangwon Land Casino and government-certified lotteries. As such, it has banned gambling content in several multinational online video games, such as in the global hit Grand Theft Auto Online. Domestic proxies that violate the law will be liable for legal responsibility, and companies that are mandated to designate a domestic representative but do not comply will be fined up to 20 million won ($14,000). The Game Rating and Administration Committee under the Culture Ministry will be entrusted with determining which companies must designate a domestic representative.

'Kicked out in pajamas': Women in Seoul's fading red-light district protest evictions

Sex workers driven out for redevelopment of 'Miari Texas' demand housing support, drawing both sympathy and opposition from neighbors On a busy Monday morning, two women in pajamas sat inside a small tent pitched on the sidewalk outside the Seongbuk District Office in northern Seoul. A dog rested beside them, drawing curious glances from passersby. The women are sex workers from Miari Texas, a red-light district in Hawolgok-dong, Seongbuk-gu. Having been forcibly evicted on April 17 from their homes, where they also worked, the two were now living in the tent — both as a form of protest and because they had nowhere else to go. The demolition of their homes marked the first of several rounds of evictions expected in the coming weeks, as about 20 other sex workers are still refusing to vacate despite a court order. This is part of a large-scale redevelopment project, led by Lotte Engineering & Construction, that aims to transform the area -- historically associated with the sex industry -- into a modern high-rise hub. Ten high-rise residential-commercial complexes are to be built here, featuring 2,244 residential units and 498 "officetel" units, which can function both as offices and homes. 'Inhumane eviction' vs. 'rightful enforcement' “They took everything, even the medicine I depend on for my chronic illness. They could’ve at least let us walk out with some dignity," Kim, one of the two displaced women in the tent, told The Korea Herald. “I know how we’re seen by society. Still, we should’ve been given time to get ready. We’re not just objects to be cleared out. We’re human beings.” Officials descended on the women's homes early Thursday morning while they were still in their pajamas. Kim described the demolition as “abrupt” and “inhumane.” Now demanding that the authorities provide them with a place to live, Kim has taken up residence outside the district office, surviving on instant noodles and bottled water provided by civic groups, including the Korean Women’s Association United. “People keep telling us to find new jobs, but how can we do that without a safe place to stay? You can’t prepare for a new life while sleeping on the street,” she said. “The room I had in Miari Texas was no more than three pyeong (9.9 square meters). I lived, worked and slept in that same space for years. We’re not asking for luxury. We just need basic support.” Until the authorities help them relocate, the women, along with about 20 other sex workers whose homes in the Miari Texas area have not yet been demolished, plan to remain in the tent and hold weekly rallies every Thursday. The Seongbuk District Office, however, offered a different account of what happened. According to officials, demolition of the area began in December, and the district had repeatedly urged the women to leave voluntarily. However, they resisted, demanding alternative housing options and continuing to call for support from the local government. This led to months of delays in the project, and Thursday’s eviction became inevitable after a court issued an eviction order. “The area could no longer be neglected due to persistent issues with unauthorized use and waste disposal,” an official explained. In local redevelopment projects, residents are typically asked to vacate the area. If they refuse, the district or city government may seek an eviction order from the court, which paves the way for a forced eviction and demolition. The district official stressed that Thursday's eviction order included support measures for the evictees. They were provided with clothing and temporary shelter. To carry out the eviction of the two women, more than 100 people, including two human rights lawyers, were deployed to the scene, the official emphasized. As for the women's claims of unfair treatment during the demolition process, the district official said, "No injuries or arrests have been reported despite tensions between the sex workers and the demolition crew.” Regarding the evictees' demand for relocation support, the official explained that authorities have no choice but to adhere to legal principles, as the sex workers — who were neither registered as residents nor owners of the places they lived in — failed to meet the requirements for such assistance. In typical urban redevelopment projects, evictees are provided with relocation assistance, but this applies only to those who can prove legal residence, such as with registered residency, a lease contract with a landlord, or similar documentation — conditions the two women did not meet. The women expressed outrage, calling these legal requirements an unfair blind spot in the law. “Landlords, including those who operated brothels, will profit from the redevelopment, but we, who lived in small rooms and struggled to get by, are kicked out with nothing,” Kim said. In South Korea, where sex work is illegal, many sex workers avoid registering their residence in the district where they actually live and work in order to prevent their identities from being exposed to the police. Instead, they often report their addresses as those of relatives or acquaintances in other regions. Also, the glass-walled rooms commonly found in brothels are not recognized as legal housing, which means sex workers rarely have formal rental agreements. Mixed reactions from neighbors Residents of Hawolgok-dong, who have lived near the brothel zone for years, expressed mixed reactions to the sex workers' demonstration in interviews with The Korea Herald. Some sympathized with the women, emphasizing the need to protect their basic human rights. “From the outside, it might look like an illegal group, but when you actually talk to a few of them, you realize they’ve been through things they can’t even speak of,” said Woo, a woman in her 60s who has run a small diner in the neighborhood for 17 years. “No matter what they do for a living, they still deserve a place to stay. That's just basic human dignity.” A woman surnamed Ha in her late 20s said the government is partly to blame for the current situation. “In the past, sex work was something the government once turned a blind eye to when it brought in foreign currency. These women have lived outside the system for a long time. Helping them move on, starting with housing, is something we all share responsibility for," she said. Others, however, called for a fair and impartial implementation of the rules. “Public support should go to residents who’ve been paying rent in the redevelopment zone, not to those engaged in illegal work who don’t pay taxes. I don’t want my taxes being used for them,” said Yang Dae-seok, a 77-year-old man who has lived in the neighborhood for over 30 years. Another resident criticized the protest itself. “Redevelopment is supposed to revitalize the neighborhood, but this kind of demonstration only hurts the area’s image,” said Ryu Myung-ho, a 41-year-old man who runs an auto parts store near Gireum Station. Fading red lights Miari Texas emerged in the late 1960s as displaced sex workers gathered there after red-light zones near Seoul Station and Jongno 3-ga were demolished due to urban redevelopment projects. The term “Texas” was widely used at the time as a nickname for red-light districts in Korea, inspired by Western films that portrayed the vast American state of Texas as untamed and lawless. The red-light zone enjoyed its heyday from the '80s through the early 2000s, when it housed as many as 360 brothels and up to 3,000 sex workers, according to data from the Korean Women Workers Association. More than 10 red-light districts were known to operate across Seoul. However, the passage of a special law on prostitution in 2004, followed by large-scale crackdowns, marked the beginning of the decline of the local sex industry. Miari Texas has been the last remaining brothel cluster in Seoul, as all other former red-light zones in the capital, including the once-notorious Cheongnyangni 588 in Dongdaemun-gu, have been demolished and redeveloped into apartment complexes or commercial spaces under the city’s urban renewal initiatives. When The Korea Herald visited the area on Monday afternoon, the alley just past a yellow sign that reads “Minors are not allowed” resembled a ghost town. The narrow path was lined with rows of brothels, many of them dilapidated and worn down. On the walls of some, the word “gong-ga”— meaning “vacant” in Korean — was scrawled in red spray paint. Most of the food stalls that once sold udon, ramyeon and other snacks in front of the entrances of the brothels had already shut down, leaving the alleys strewn with piles of discarded goods and trash. Heaps of rotting trash from recent demolitions lay untouched, with the sour smell of decay drifting through the air. Kim, the evictee, feared that older sex workers would be hit harder by the upcoming evictions. “They’re in weaker health than we are, and it’s much harder for them to find new work if they’re suddenly left out on the streets. Everyone is living in fear, not knowing when the demolition crews will show up," she said.

Ignite Forum spotlights Thailand-Korea synergies

South Korea and Thailand can build a strong partnership based on mutual growth, attendees at the Ignite Thailand-Korea Business Forum discussed. Co-hosted by Herald Media Group, the Royal Thai Embassy in Korea and the Industrial Estate Authority of Thailand, the two-day event at Lotte Hotel Seoul aimed at deepening the bilateral economic ties. Commemorating the 67th anniversary of diplomatic relations between the two nations, the forum welcomed a large delegation of high-ranking Thai government officials and leading corporate executives. Roughly 500 attended the event. Thailand’s Deputy Minister of Commerce Suchart Chomklin delivered the keynote address, underlining the country's growth potential as a foreign investment destination. “This forum, being held in partnership between both public and private sectors of the two countries, reflects their strong willingness for partnership. We are to join hands for all economic cooperation, including future investments. The event is an opportunity to show Thailand’s potential to Korea, and will provide a chance for businesses to connect,” he said. Chomklin highlighted the country’s need to invest in sectors of high potential, enhancing foreign investors’ faith in the Thai market through financial and capital markets, and building up a business-friendly environment. “The Thai government is accelerating the push for future drivers. This will be good news for Korean companies as they are strong in tech and innovation. The two countries would be able to create synergy in many ways. “Thailand can be an attractive investment destination as the local government is working to foster an open, transparent and predictable trade environment,” he said Chomklin further stressed that Korea and Thailand are currently negotiating a bilateral Economic Partnership Agreement. The two sides held their fifth round of negotiations this week. Under such an agreement, partner nations can establish a mutually beneficial trade network. “The negotiation will not be easy. But I will work to bring an outcome that can benefit both parties,” he said. “Korea and Thailand have had a longtime partnership. During the Korean War, Thailand helped South Korea by deploying its soldiers,” he said. “Though we do not give privilege to certain nations, I can promise that we support investors of all countries with transparency and fairness.” Tanee Sangrat, Thailand's ambassador to South Korea, gave his welcoming remarks. Having taken the post in April 2024, he has been bridging the communication between the two countries for nearly a year. “Thailand and Korea have been cooperating across many sectors for a long time,” he said. Korea was Thailand’s 13th largest trading partner in 2024, and Thailand was Korea’s 18th largest trading partner the same year, the ambassador explained. “This forum is being held to invigorate bilateral business networks and country-level communication. Through the event, Thailand can share that it welcomes Korean investments and opportunities are open." Choi Jin-young, CEO of Herald Media Group, delivered congratulatory remarks. “This forum is a meaningful opportunity for top business leaders from Thailand to share major economic policies, investment opportunities and partnership visions. Various forms of cooperation will be discussed — from infrastructure development and finance to defense and startups,” Choi said. “Though Korea-Thai ties have steadily strengthened over the years, there is still room for growth in bilateral economic exchange. To that end, we will organize a business delegation to visit Bangkok and hold a follow-up business forum there in December.” The forum continued with a presentation by Prassanee Ouiyamaphan, executive vice president of Bangkok Bank, who introduced Thailand and Korea’s cross-border QR payment service. Through the service, Korean nationals can use QR payments at diverse establishments across Thailand from May. “The means of consumption are changing globally. Digital wallets have been growing rapidly since the COVID-19 pandemic. By 2026, 59 percent of the global population is expected to use QR code payments, with the Asia-Pacific region being the largest QR payment market,” she said. Other speakers stressed Thailand’s potential and readiness in attracting foreign investments. “Thailand is a strategic hub of Southeast Asia and is geographically close to China and India, two of the world’s largest markets,” added Suthiket Thatpitakkul, deputy secretary-general of the Board of Investment of Thailand. “Many multinational companies consider Thailand a second home. Despite global geopolitical uncertainty, foreign investment in Thailand’s automobile and advanced technology sectors continues to grow,” he said. Yuthasak Supasorn, chair of the Industrial Estate Authority of Thailand, outlined how his agency helps foreign firms set up operations in the country. The state enterprise is responsible for the development and establishment of industrial estates. “We are a public enterprise under the Industry Ministry. It is ideal for foreign firms to invest in pre-prepared sites, and we help them operate sustainably and with environmental responsibility.” “For investors, it would be important to make the investments and collect the money back as soon as possible. This could only happen if they invest in pre-prepared sites. That is where the IEAT comes in,” he said.

From finance to defense: Thailand-Korea forum maps path for collaboration

Thai deputy finance minister unveils vision for Bangkok as Asia’s next financial center Thailand’s Deputy Minister of Finance Julapun Amornvivat underscored his country's economic partnership with South Korea at the Ignite Thailand-Korea Business Forum in Seoul on Wednesday, highlighting efforts to leverage the countries’ complementary strengths in a new era of financial cooperation. Serving as a gathering place for exploring economic cooperation across a diverse range of sectors, the two-day event -- held Tuesday and Wednesday at Lotte Hotel Seoul -- was co-hosted by Herald Media Group, the Royal Thai Embassy in Korea and the Industrial Estate Authority of Thailand. “The forum represents our nations' shared commitment to economic growth, innovation and partnership,” the deputy finance minister said in his keynote address. “South Korea’s remarkable journey as a global financial and technological leader offers a powerful inspiration. Thailand sees enormous value in learning from these experiences, while also contributing our unique strengths and perspectives to this partnership.” Amornvivat introduced Thailand’s Financial Hub Initiative, aimed at positioning the country as a leading financial center in Asia alongside hubs like Seoul, while highlighting its strategic location, competitive business climate, strong infrastructure and fast-growing digital ecosystem. Backed by new legislation, the plan focuses on four pillars: competitive incentives, a specialized regulator, workforce development and a market strategy targeting non-resident clients. “Our holistic yet targeted approach to financial innovation uniquely positions Thailand to collaborate with global financial hubs such as Seoul, creating new avenues for growth, innovation and mutually beneficial cooperation in digital finance, sustainable investments and advanced fintech solutions,” he said. He added that Thailand’s evolving economic profile will extend beyond traditional sectors, creating new opportunities for Korean businesses and serving as a dependable gateway to Southeast Asia’s dynamic markets. Lee Sang-jun, vice president of the Korean-Thailand Chamber of Commerce, also delivered a presentation highlighting Thailand as a promising destination for Korean businesses seeking stability, quality and long-term growth opportunities. “While Korea is strong in research and development, Thailand’s advantage lies in its manufacturing capacity and production efficiency. Thai companies excel in OEM partnerships, allowing Korean firms to focus on innovation while leveraging local production for competitive, high-quality exports,” Lee said. Lee further emphasized Thailand’s private-sector-led approach, with supportive but non-intrusive government policies, that empowers businesses to grow organically. “Thai partners are known for respecting foreign technologies, while its diplomatic stance balances relationships with major powers like China, the US and Japan,” Lee added. The forum also featured a session with nine presenters from major Thai industrial and real estate developers -- including Amata City Chonburi, WHA Eastern Seaboard Industrial Estate, Asia Industrial Estate, Bhakasa Industrial Estate, ARAYA Industrial Estate, LPP Industrial Estate, Rojana Industrial Park PCL, Saha Pathana Inter-Holding PCL and the Industrial Estate Authority of Thailand -- who introduced their industrial complexes in a bid to attract investment from Korean firms. They underscored Thailand’s appeal as a destination where Korean firms can grow with strong local support and partnership. Showcasing a concrete example of Korean investment in Thailand, the forum included a signing ceremony for a letter of intent between the Industrial Estate Authority of Thailand and Korean energy company Enerth, signifying their mutual interest in the Smart Park Industrial Estate in Thailand. Thailand-Korea defense, startup cooperation In a session featuring Korean company Hanwha Aerospace, Thai defense firm Chaiseri Metal and Rubber and Thailand’s Defense Technology Institute, participants discussed the future of bilateral defense collaboration, underscoring a shared commitment to safeguarding peace and freedom in the Indo-Pacific region, across Asia and beyond. “In line with Thailand’s move to strengthen its mechanized infantry capabilities, we plan to transfer the upgraded technology from our domestically developed armored vehicle to Thailand,” said Jung O-sung, deputy general manager at Hanwha Aerospace. He said that Korea’s robust and responsive supply chain aims to expand into MRO (maintenance, repair and overhaul) services for other equipment used by the Thai military. Chaiseri Metal and Rubber also expressed optimism about the growth potential of the defense sector. “We continue cooperating with Hanwha in areas such as armored vehicles and communication equipment, as we currently lack some technological capabilities in these areas,” said Krit Koolhiran, assistant managing director at Chaiseri Metal and Rubber. "The potential for broader collaboration with Korea spans various areas, including weapon systems and combat management systems," he added. The forum concluded with a session focused on forming business partnerships with micro, small and medium-sized enterprises from Thailand and Korea. The panel featured representatives from Thailand’s National Innovation Agency, Techsauce, SEA Bridge, and the Seoul and Daejeon Centers for Creative Economy and Innovation. “We are actively fostering startups that are well-suited for both the Korean and Thai markets. This includes cooperation in cutting-edge fields such as AI and blockchain, particularly with technology-driven startups,” said Kanoch Rativanich, senior innovation counseling manager at Thailand's National Innovation Agency. “Our goal is to link Korean corporates and startups with the real-time needs of Thai enterprises, creating timely, targeted partnerships,” remarked Kim Young-june, head of the innovation department at the Seoul Center for Creative Economy and Innovation. This approach enables a more agile and effective collaboration model where Korean innovation can meet Thailand’s evolving industrial and technological demands, Kim added.

Lotte Biologics kicks off ADC service at Syracuse plant

Lotte Biologics announced on Thursday that it has signed a manufacturing deal with a biotech firm based in Asia to produce a clinical-stage antibody-drug conjugate candidate. The deal represents the first major milestone in launching full-scale operations at the company’s ADC manufacturing facility, located at the Syracuse Bio Campus in the US state of New York, an expansion project that began in 2023. Through the contract, Lotte Biologics is officially introducing its ADC contract development and manufacturing services, tailored to support clients across all stages, from clinical trials to commercial-scale production. "With this contract as a starting point, we will ensure a stable supply of high-quality ADC therapeutics and solidify our position in the global market, not only as an antibody manufacturer, but also as a CDMO specializing in ADCs,” Lotte Biologics CEO James Park said. “We also plan to actively pursue partnerships to further strengthen our competitiveness in the ADC modality business." Lotte Biologics will continue to seek new clients and expand its collaborative efforts, aiming to provide integrated, one-stop solutions for ADC development and production, the firm said. Developed with an investment of around $100 million, Lotte Biologics’ ADC facility meets the current Good Manufacturing Practices of the US Food and Drug Administration and delivers comprehensive end-to-end manufacturing services. The facility includes a fully integrated production and purification system, featuring a conjugation reactor capable of handling up to 1,000 liters. It also offers in-house quality control testing and advanced analytical characterization services. Additionally, the site is outfitted with a single-use system that supports the entire workflow — from antibody preprocessing to the automated aseptic filling of drug substances — allowing for flexible and efficient service tailored to diverse client requirements.

Lee Jae-myung’s chaebol reform plans face corporate backlash

Concerns mount as treasury stock cancellation could disrupt control, funding for conglomerates The economic proposals unveiled by Lee Jae-myung, the presidential front-runner of the liberal Democratic Party of Korea, are triggering alarm bells among major South Korean conglomerates, particularly his plan to mandate that listed firms retire treasury shares following buybacks. On Monday, Lee introduced an ambitious policy framework aimed at doubling the benchmark Kospi index to surpass 5,000 points if elected. Central to this initiative is the cancellation of treasury shares held by publicly listed companies, coupled with a commitment to prioritize small shareholders in the allocation of new shares during subsidiary spinoffs. Lee intends to broaden the fiduciary duties of corporate directors to encompass the interests of both the company and its shareholders. He also advocates for the adoption of cumulative voting and the separate election of audit committee members, indicating a strong commitment to enhancing corporate governance and protecting shareholder rights. “The treasury shares of listed companies will be fundamentally retired and returned to shareholders through institutionalization,” Lee said at a meeting with heads of securities firms’ research centers. Typically, major corporate owners have leveraged treasury shares as a defense mechanism to maintain management control. The proposed mandate for their retirement could significantly pressure companies by diluting the influence of founding families and constraining strategic investments and capital management. This potential shift has ignited concerns within the business community regarding its broader implications for corporate governance and ownership structures. Currently, many holding companies maintain treasury shares that constitute over 10 percent of their total equity. For instance, Lotte Holdings reports that 32.51 percent of its shares are held as treasury stock, while Sempio Foods, Daewoong Pharmaceutical and SK each exhibit treasury share portions around 20 percent, amid ongoing requests from minority shareholders for cancellation. It is a common practice among holding companies to retain a higher proportion of treasury shares. During corporate spinoffs, new shares with voting rights have often been issued in exchange for treasury shares, prompting groups eager to establish a holding company structure to increase their treasury holdings through buybacks. Treasury shares without voting rights also serve as a defense means for the founding families' management control. By repurchasing their shares with company funds, chaebol families effectively reduce the number of circulating shares, thereby consolidating their control over the company despite having smaller ownership stakes. This strategy also allows them to sell treasury shares to allied parties or exchange them with allies to regain voting rights, further entrenching their dominance. “Unlike in the United States, where share buybacks typically lead to retirements, Korean companies often repurchase treasury shares to solidify corporate control or place them up for sale, which severely undermines shareholder value,” said an official from a financial think tank on the condition of anonymity. Initially, the purchase of treasury shares was prohibited due to concerns that such actions could artificially inflate stock prices and distort the market. However, in a bid to enhance shareholder value and promote regulatory freedom, buybacks were permitted for publicly listed companies in 1994 and for privately held firms in 2011. Recent data indicates that Korean companies have been relatively passive in retiring treasury shares. According to the Financial Services Commission, listed companies acquired a total of 18.7 trillion won ($13.2 billion) in treasury shares last year, yet only 13.9 trillion won were retired — a gap that raises questions about the effectiveness of these measures. “From companies' perspective, as demand for shareholder returns continues to grow, it has been preferable to buy back and hold treasury shares rather than distribute dividends, as this can be used to strengthen management control. However, if they are mandated to retire these shares, they can no longer be used for that purpose, making dividends and share retirements effectively the same in terms of cash outflow,” another official from a brokerage house said. Critics argue that Lee's proposal could lead to a contraction in business activities by narrowing funding sources reliant on treasury stocks and inciting a surge in management disputes, especially as activist investors target firms exhibiting weakened management control.

Thailand-Korea forum kicks off in Seoul to deepen economic ties

Two-day gathering highlights synergy potential in finance, defense, startups, infrastructure The Ignite Thailand-Korea Business Forum kicked off in Seoul on Tuesday, providing a platform for participants to explore ways South Korea and Thailand can expand cooperation across diverse sectors. Aimed at deepening bilateral economic ties, the two-day event at Lotte Hotel Seoul was co-hosted by Herald Media Group, the Royal Thai Embassy in Korea, and the Industrial Estate Authority of Thailand. Commemorating the 67th anniversary of diplomatic relations between the two nations, the forum welcomed a large delegation of high-ranking Thai government officials and leading corporate executives. “Thailand and Korea have been cooperating across many sectors for a long time,” said Tanee Sangrat, Thailand's ambassador to South Korea, in his welcoming remarks. “This forum is being held to invigorate bilateral business networks and country-level communication.” Choi Jin-young, CEO of Herald Media Group, delivered congratulatory remarks. “This forum is a meaningful opportunity for top business leaders from Thailand to share major economic policies, investment opportunities and partnership visions. Various forms of cooperation will be discussed — from infrastructure development and finance to defense and startups,” Choi said. “Though Korea-Thai ties have steadily strengthened over the years, there is still room for growth in bilateral economic exchange. To that end, we will organize a business delegation to visit Bangkok and hold a follow-up business forum there in December.” Suchart Chomklin, Thailand’s deputy minister of commerce, delivered the keynote address. “I am confident that our two countries can create synergy in many ways. Korea and Thailand are currently negotiating a bilateral Economic Partnership Agreement, which will boost competitiveness and strengthen both countries' supply chains,” he said. He also emphasized Thailand’s commitment to attracting investment in high-potential sectors, building foreign investor trust by enhancing the finance and capital markets, and developing infrastructure through real estate and industrial complex investment. The forum continued with a presentation by Prassanee Ouiyamaphan, executive vice president of Bangkok Bank, who introduced Thailand and Korea’s cross-border QR payment service. “The means of consumption are changing globally. Increasingly, ASEAN consumers are opting to pay through QR codes,” she said, highlighting the partnership with Korean card issuer BC Card. ASEAN refers to the Association of Southeast Asian Nations. “Thailand is a strategic hub of Southeast Asia and is geographically close to China and India, two of the world’s largest markets,” added Suthiket Thatpitak-Kul, deputy secretary-general of the Board of Investment of Thailand. “Many multinational companies consider Thailand a second home. Despite global geopolitical uncertainty, foreign investment in Thailand’s automobile and advanced technology sectors continues to grow.” Yuthasak Supasorn, chairman of the Industrial Estate Authority of Thailand, outlined how his agency helps foreign firms set up operations. “We are a public enterprise under the Industry Ministry. It is ideal for foreign firms to invest in pre-prepared sites, and we help them operate sustainably and with environmental responsibility.” The forum also featured talks from: Suksit Srichomkwan, deputy secretary-general to the Prime Minister of Thailand; Dr. Chula Sukmanop, secretary-general of the Eastern Economic Corridor Office of Thailand; Dr. Soraphol Tulayasathien, senior executive vice president of the Stock Exchange of Thailand; Burin Adulwattana, managing director and chief economist of Kasikorn Research; and Chaiyarit Anuchitworawong, senior executive vice president of Bangkok Bank. On the second day, the forum will delve into a wider range of sectors, including infrastructure, defense and startups, where Korea and Thailand are believed to share significant synergy potential. Key speakers include Thailand’s Deputy Minister of Finance Julapun Amornvivat and Lee Sang-jun, vice president of the Korean-Thai Chamber of Commerce. A full report on the two-day business forum will be published on Friday. – Ed.