"South Korea Real Estate Loan Defaults Could Spread to Finance Sector" [3-Minute Brief]

[At a Glance]
① Domestic Pharmaceutical Industry's Global Struggle
② Top 5 Banks' Corporate Loans Near 800 Trillion Won
③ Seoul's Average Monthly Rent Falls Below 1 Million Won for the First Time

MARKET INDEX

- US New York Stock Exchange's three major indices closed higher
- Investor sentiment recovered as expectations for interest rate cuts revived
- Employment market slowdown indicators also stimulated investor sentiment

TOP 3 NEWS

■ "Concerns over Korean real estate loan defaults spreading to finance sector"

- Analyst evaluation from Bloomberg-affiliated research institute
- Systemic crisis possibility is low but caution is necessary
- Emphasized the need to pay attention to interbank transactions

■ Domestic pharmaceutical industry struggles globally… 60% of top companies' overseas subsidiaries in deficit

- Major domestic pharmaceutical companies attempt overseas expansion through acquisitions of local firms
- However, except for a few companies, most are accumulating deficits and struggling
- Nokjipsa Holdings suffered the largest loss… SK Biopharm and Hanmi Pharmaceutical showed results

■ Samsung SDI participates in 'China Cycle Show 2024'… showcases cylindrical batteries

- Introduced cylindrical battery lineup optimized for micro-mobility electrification
- Plans to target micro-mobility market with tabless design products
- Samsung SDI ranked first with 31% market share in electric bicycle batteries in 2023

the Chart: Top 5 banks' corporate loans near 800 trillion KRW… delinquency rates also rising

- Corporate loan balance at 796.0455 trillion KRW… 11% increase compared to a year ago
- "Due to household loan regulations, banks continue to compete in corporate loans"
- Rising delinquency rates are problematic… delinquency rates increased compared to last year except for NongHyup and Woori Bank

Money-Making Law

■ 13th Bar Exam pass rates by law school: Seoul National University - Korea University - Yonsei University in order

- Pass rate relative to number of examinees: Seoul National University 86.6%, Korea University 77.1%, Yonsei University 74.2%
- Followed by Chung-Ang University, Sungkyunkwan University, Ewha Womans University, Hanyang University, Hankuk University of Foreign Studies, Kyung Hee University, Seoul National University of Science and Technology
- Regional university law schools all have pass rates lower than the overall bar exam pass rate of 53%
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024050613121589781

■ Law firms Lin and LKB & Partners halt merger plans… switch to 'business alliance'

- Merger efforts started last year
- Decision to stop due to prolonged negotiations
- Business alliance covering litigation and advisory services
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024050613153595277

■ "Military Service Basic Act banning collective complaints and signature acts on officers' military work issues is constitutional"

- Claimed that the provision infringes on freedom of expression and association
- Constitutional Court: "Aimed at maintaining military order and command system… appropriateness recognized"
- Dissenting opinion: "Collective complaints and signatures should be judged on individual cases"
☞Read article: https://www.asiae.co.kr/article/lawtimes/2024050613174598297

※ 'Money-Making Law,' a content partnership corner between Asia Economy and Law Times, is published every Tuesday and Thursday.

Terms in the News: Tesla abandons full implementation of 'Giga Casting'

- Giga Casting is a manufacturing method that produces an integrated chassis in one go
- Advantages include significant simplification of manufacturing process and reduction of greenhouse gas emissions
- However, recent recession seems to have made massive production facility investment burdensome

Today's Key Schedule

○ Domestic
- 06:00 April foreign exchange reserves
- 7th: KOSDAQ KocChip listing / IPO price 18,000 KRW
- 7th: KOSDAQ SK Securities No.12 SPAC listing / IPO price 2,000 KRW

○ Overseas
- 08:01 UK April retail sales data
- 09:30 Japan April services Purchasing Managers' Index
- 10:30 Australia Q1 retail sales
- 13:30 Australia May interest rate decision
- 15:00 Germany March trade balance
- 19:00 Eurozone finance ministers meeting

◇ Lunch & Commute Weather

○ Lowest temperature 13℃(▼1℃) ｜ Highest temperature: 18℃(▲3℃)
○ Precipitation probability morning 60%｜afternoon 60%
○ Fine dust morning good｜afternoon good

OK in 3 minutes, essential time-efficient economic news. Published daily at 8 AM.