Daily Wage for U.S. Welders Hits 700,000 Won... Labor Cost Burden Grows for Korean Companies [3-Minute Brief]

[At a Glance]
① Cost of securing skilled labor in the U.S. rises sharply
② Financial Supervisory Service announces "Insurance Company Business Results for January?September 2025"
③ Internet banks' mortgage rates rise, top end reaches 7%

MARKET INDEX

○All three major U.S. stock indices closed higher... Gains ahead of Nvidia's earnings release

○Attention on whether AI bubble concerns will be eased

○FOMC minutes: "Most members support holding rates steady in December"... Additional cuts this year remain uncertain

TOP 3 NEWS

■ Daily wage for welding at Samsung's U.S. plant hits 700,000 won... 'Labor cost bomb' falls before completion

○Welders' wages 2.5 times higher than in Korea
○Similar situation at LG Energy Solution's plant construction site
○"Local U.S. workers and Korean experts with visas earn around 60,000 to 80,000 won per day"

■ Insurance companies' cumulative net profit for Q3 reaches 1.12911 trillion won... Down 15.2% year-on-year

○Life insurers' net profit down 8.3%... Loss reserve costs increased
○Non-life insurers' net profit down 19.6%... Worsening loss ratios in auto insurance and others
○Despite increased investment income, insurance profit decreased due to worsening loss ratios and rising costs

■ Top end of internet bank mortgage rates hits 7%... Interest rates remain high

○COFIX rises for the second consecutive month
○Variable mortgage rates continue to climb
○Borrowers with high leverage likely to face greater interest burdens

Graphic News: Labor Shortages and Soaring Labor Costs... Hyundai Motor-LG Energy Solution Joint Venture Plant Delays Timeline

○LG Energy Solution resumes construction

○High wages likely to become entrenched even after completion

○Potential for slower pace of U.S. investment

Money-Making Law

■ Philips Korea's 9 billion won corporate tax lawsuit sent back to lower court

○Supreme Court overturns 'Philips victory' from previous ruling, sends case back to Seoul High Court
○Tax authorities issue revised corporate tax notice of about 9 billion won to Philips
○Supreme Court: "Difficult to view as a transaction supporting independent maintenance services"
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025111915450349784

■ "No intention to evade responsibility for Invossa case"

○Prosecutors seek 10-year prison sentence for Chairman Lee Woongyeol
○Appeals court ruling scheduled for February 5 next year
○Chairman Lee: "I have no intention of evading responsibility"
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025111915485281408

■ LG's Koo Yeonkyung and Yoon Kwan trial debate set for 'April 11'

○Dispute centers on purchase of 35,990 shares of Medy-Tion
○Prosecution: "Effectively a pre-arranged investment" vs. Defendant: "Only amount and contracting parties were decided"
○Dispute over Article 174 of the Capital Markets Act
☞Read the article:  https://www.asiae.co.kr/article/lawtimes/2025111915514007347

※ 'Money-Making Law,' a content partnership section between The Asia Business Daily and Law Times, is published every Tuesday and Thursday.

Today's Key Schedule

○Domestic

CMTX to be listed on KOSDAQ, final offering price set at 60,500 won

Samsung SPAC No.12 KOSDAQ subscription, final offering price set at 2,000 won

Mirae Asset Vision SPAC No.9 KOSDAQ subscription, final offering price set at 2,000 won

○Overseas

00:30 U.S. crude oil inventories

03:00 U.S. 20-year Treasury bond auction

04:00 U.S. Federal Open Market Committee minutes

16:00 Germany Producer Price Index (MoM) (October)

22:30 U.S. average hourly earnings (MoM) (September)

22:30 U.S. unemployment rate (September)

◇Lunch & Evening Commute Weather

○Lowest temperature 2℃(▼4℃) ｜Highest temperature: 13℃(▲5℃)
○Precipitation probability: 40% in the morning｜30% in the afternoon
○Fine dust: Good in the morning｜Good in the afternoon

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