South Korea

"뭐, 2조원?"… 예상보다 큰 '홍콩 ELS ' 과징금에 은행권 당황, 실적 악화 우려

Digital Daily | Local Language | News | Dec. 1, 2025 | Regulatory Enforcement Actions

Financial authorities have informed five major South Korean banks—KB Kookmin Bank, Shinhan Bank, NH Nonghyup Bank, Hana Bank, and SC First Bank—of fines and administrative penalties totaling approximately 2 trillion won related to the incomplete sale of Hong Kong H-index equity-linked securities (ELS). The fines stem from findings that the banks misled customers about principal guarantees and failed to properly disclose risks, violating the Financial Consumer Protection Act. Woori Bank was exempt due to minimal sales volume.

The Financial Supervisory Service (FSS) decided to calculate fines based on the total sales amount rather than fees, leading to much larger penalties than the banks had anticipated. KB Kookmin Bank, with the highest sales volume of over 8 trillion won, is expected to bear the largest portion of the fines. The disciplinary process will begin in mid-December, involving the Disciplinary Review Committee, Securities and Futures Commission, and Financial Services Commission.

The fines' magnitude has caused concern among the banks, as it far exceeds earlier expectations after regulatory amendments last October had lowered potential fines and expanded reduction rates for consumer protection efforts. The large penalties are likely to negatively impact the banks' earnings, treating the fines as non-operating losses, and may also affect their capital adequacy. Banks are expected to attempt to negotiate reductions during the disciplinary review process.

누리호 4차 발사 성공, 韓 민간 우주개발 시대 활짝 [K-뉴스페이스·上]

Newsis | Local Language | News | Dec. 1, 2025 | UndeterminedTech Development/Adoption

The Korean launch vehicle Nuriho successfully completed its fourth flight on November 27, 2025, marking the first time a vehicle manufactured and assembled entirely by the private sector, specifically Hanwha Aerospace, carried out a nominal mission. This launch, conducted at night to meet specific orbital conditions, represents a significant milestone in Korea's transition from government-led to private-sector-led space development. Hanwha’s role expanded not only to vehicle manufacturing but also to participate in launch preparations alongside the Korea Aerospace Research Institute (KARI), which still led launch operations.

The government plans the fifth and sixth Nuriho launches in 2026 and 2027, respectively, as critical tests to verify the stability of private-sector-led launch operations. From the fifth launch onward, Hanwha’s involvement will increase, including expanded personnel presence in key launch control centers, with the expectation that by the sixth launch, Hanwha will handle most operations except for mission director and launch operations director roles. This gradual handover is designed to confirm the feasibility of a privately centered launch system through repeated successful launches.

Concerns remain about a potential gap in launch activity following the sixth launch in 2027, which could disrupt the emerging private-sector ecosystem. The government is working to secure funding for a seventh launch planned for 2028 under the ‘Nuriho Heritage’ project, intended to cover the gap until a next-generation launch vehicle is tested in 2031. However, this project faces delays due to ongoing preliminary feasibility study requirements, raising fears of another launch hiatus. Such interruptions risk weakening industry expertise, supply chains, and operational continuity, as experienced during the 2.5-year gap between the third and fourth launches.

To prevent this, the government intends to incorporate the seventh launch budget into the next fiscal year and aims to maintain annual launches from the eighth launch onward. Experts emphasize that sustaining the private transition requires continuous launch activity to maintain personnel proficiency, industry networks, and operational data. The future role and funding structure for Nuriho beyond the initial program phase remain key to securing Korea’s private space development momentum.

"1억 넘게 날렸어요"…서울 아파트 계약 해제율 5년래 최대

Hankyung | Local Language | News | Dec. 1, 2025 | UndeterminedReal Estate

In 2025, the cancellation rate of apartment purchase contracts in Seoul reached its highest level since data began being tracked in 2020. Out of 75,339 apartment sales transactions reported through November, 5,598 contracts were canceled, representing 7.4% of all contracts. The total value of these canceled contracts is approximately 7.66 trillion won, with an average contract price of about 1.37 billion won. If a 10% penalty on cancellations is assumed, losses from cancellation fees would amount to roughly 766 billion won in total, or about 137 million won per canceled contract.

The cancellation rate has risen in correlation with increased market volatility driven by repeated regulatory changes. After averaging 3.8% in 2020 and peaking at 5.9% in 2022 during a period of soaring policy rates and transaction freezes, the rate dropped to around 4.3-4.4% in 2023 and 2024. However, in 2025, a sequence of policy actions including alterations in land transaction permit zones, stricter loan restrictions in June, supply control measures in September, and expanded regulated areas in October have intensified market instability and driven cancellation rates higher.

Monthly cancellation rates surged after March 2025, following the Seoul city government's re-designation of land transaction permit zones, including key districts like Gangnam and Yongsan. Rates climbed from 8.3% in March to a peak of 10.6% in June, coinciding with tightened financing regulations, and remained above 10% in July. October and November saw lower preliminary rates (around 2.5% and 1%), but these numbers are expected to rise as cancellations continue to be reported.

Geographically, Seongdong-gu experienced the highest cancellation rate at 10.2%, followed closely by Yongsan-gu (10.1%) and Jung-gu (9.8%). Other districts with high cancellation rates included Jungnang-gu, Seodaemun-gu, Gangdong-gu, and Gangnam-gu, all ranging from 8.6% to 9.3%. Conversely, Songpa-gu had the lowest cancellation rate at 5.1%, with nearby districts like Gwanak-gu and Gangseo-gu also recording relatively low cancellation rates.

There are concerns that some canceled contracts may be false reports intended to artificially inflate prices amid the volatile market conditions. This practice could exacerbate price fluctuations and complicate market stability.