Kakao Games posted its seventh consecutive quarterly operating loss as revenue from existing titles declined and the company faced a gap in new game launches. The company is seeking a turnaround under its new co-CEO leadership structure and plans to launch its new title World of Dokkaebi in October.

Kakao Games said on Aug. 5 that it recorded consolidated revenue of 75 billion won and an operating loss of 23 billion won in the second quarter of 2026.

Revenue declined about 35% from a year earlier and approximately 10% from the previous quarter. The operating loss widened from the same period last year but narrowed by about 10% compared with the previous quarter.

By business segment, revenue from PC online games totaled about 22.3 billion won, up 51% from a year earlier. Compared with the previous quarter, however, it declined about 20%.

Mobile game revenue came to about 52.7 billion won, down 48% year over year and 4% from the previous quarter. The company said declining revenue from live-service games and the absence of major new game launches weighed on overall performance.

Kakao Games said it is reorganizing its game business under co-CEOs Kim Tae-hwan and Lee Si-woo. The company plans to review ongoing development projects and focus resources on launching key intellectual property (IP) titles that can drive earnings recovery.

Its first major release will be the mobile massively multiplayer online role-playing game (MMORPG) World of Dokkaebi. Kakao Games plans to begin pre-registration in August and is in the final stages of development ahead of an official launch in October.

Additional titles are scheduled to follow. Strategy-adventure role-playing game Dungeon Arise is slated for release later this year, while open-world zombie survival simulator God Save Birmingham and MMORPG Odin Q: Valkyrie's Call are expected to launch in early 2027.

The company is also expanding its game portfolio. Kakao Games has secured global publishing rights for PC MMORPG ArcheAge S: Strait of Freedom and pixel-art collectible action RPG Guardian Maiden. It also plans to collaborate with The Grimm Entertainment to develop and publish games based on popular comic and webtoon intellectual property.

Kakao Games said it will continue shareholder-return initiatives alongside its business restructuring efforts. Measures include the cancellation of 500,000 treasury shares, the introduction of a restricted stock unit (RSU) program for employees, the transfer of capital reserves to retained earnings, and purchases of company shares by senior management.

SK Telecom reported a sharp increase in second-quarter operating profit, driven by the absence of costs related to last year's USIM replacement program and continued cost-efficiency efforts. Revenue from its artificial intelligence (AI) data center business nearly doubled from a year earlier.

The company said on Aug. 5 that it posted consolidated revenue of 4.3591 trillion won and operating profit of 566 billion won for the second quarter of 2026. Revenue rose 0.5% from a year earlier, while operating profit increased 67.3%.

Net profit totaled 466 billion won, and earnings before interest, taxes, depreciation and amortization (EBITDA) rose 17% to 1.4423 trillion won. Capital expenditures (CAPEX) for the quarter were 487 billion won, down 23.3% from a year earlier.

On a standalone basis, SK Telecom recorded revenue of 3.117 trillion won, down 0.6% year over year. Operating profit climbed 70.5% to 427.7 billion won. Revenue at SK Broadband increased 3.6% to 1.1603 trillion won, supported by growth in its data center business, while operating profit rose 44.3% to 132.5 billion won.

Growth in the AI data center business stood out. Revenue from AI data centers reached 136.2 billion won in the second quarter, up 92.5% from 70.7 billion won a year earlier. Compared with 131.4 billion won in the previous quarter, revenue increased 3.6%.

The company said expanded data center operations and submarine cable business revenue drove the growth. AI business-to-business and business-to-consumer (B2B and B2C) revenue rose 24.5% year over year to 61.3 billion won and increased 36.2% from the previous quarter, aided by a growing backlog of AI cloud contracts.

SK Telecom established SK Hyper, a wholly owned subsidiary dedicated to AI data center business development, in July. The unit is responsible for securing data center sites and power resources, building and operating substations, constructing transmission and distribution infrastructure, and attracting customers.

The company's data center roadmap was also reaffirmed. SK Telecom plans to expand its current 137-megawatt data center footprint and begin opening AI data centers with a combined capacity of 5 gigawatts in phases starting in 2029. The company intends to expand capacity further to 15 gigawatts over time based on customer demand.

The company is also expanding its submarine cable business. SK Telecom launched the 10,500-kilometer SJC2 submarine cable system connecting Japan, South Korea, Hong Kong and Singapore in July 2025. The 12,500-kilometer E2A submarine cable system linking the United States, South Korea, Japan and Taiwan is targeted to enter service in 2029.

SK Telecom also declared a second-quarter dividend of 830 won per share, unchanged from the first quarter. The company will therefore pay a cash dividend of 830 won per share for a second consecutive quarter.

LG CNS has been selected to lead the artificial intelligence transformation planning project for 14 airports operated by Korea Airports Corporation (KAC), including Gimpo, Gimhae and Jeju airports. The project will establish the data and system architecture, governance framework and implementation roadmap required to introduce AI into airport operations.

LG CNS said on Aug. 5 that it won KAC's "AI Master Plan (ISMP) Establishment" project.

The initiative covers 14 airports nationwide operated by KAC. Incheon International Airport is not included because it is managed separately by Incheon International Airport Corporation.

Under the project, LG CNS will provide AI strategy consulting, design AI and data architectures, establish AI governance, conduct proof-of-concept testing for key initiatives and develop execution plans for future projects. The company plans to define AI services aimed at optimizing airport operations, improving customer services and strengthening safety management systems.

LG CNS did not disclose the contract value or project duration. However, according to KAC's tender documents, the project is valued at approximately 3 billion won and will run for 365 days from the start date.

Since last year, KAC has been pursuing 50 AI innovation initiatives across airport operations, customer service and safety management. LG CNS will evaluate the feasibility and commercial viability of these projects and develop priorities and phased investment plans.

One example under consideration is an agentic AI-based field safety management service. Under the concept, airport employees could verbally report incidents, after which AI would summarize the information, generate draft reports and recommend appropriate response procedures. The service is not currently in operation and remains a candidate model whose functionality, data integration requirements and technical feasibility will be assessed during the master-planning process.

A key objective of the project is to unify AI initiatives and data resources scattered across 14 airports into a common framework. Before AI is deployed in airport operations, facility management, passenger guidance and safety response systems, the project will establish data standards, access-control policies, security requirements and accountability frameworks for AI decision-making.

Industry observers expect the actual deployment of AI systems to be tendered separately after completion of the master plan and proof-of-concept phase. Through the project, LG CNS could position itself for future opportunities involving AI system implementation, cloud migration, operations and maintenance services.

The contract aligns with LG CNS's broader strategy of expanding its external AI transformation (AX) business.

During a recent earnings presentation, the company said it was broadening its AI portfolio beyond manufacturing and logistics into sectors including pharmaceuticals and biotechnology, airports and aviation, and defense and shipbuilding. The KAC project represents a concrete example of the company's expansion strategy in the airport and aviation sector translating into new business.

Analysts have increasingly pointed to growth from external customers and industry diversification as key drivers of LG CNS's future performance.

Sun Yoo-jin, an analyst at LS Securities, wrote in a report published on Aug. 3 that the company's growth base is becoming more diversified through overseas and non-affiliated customers.

Mirae Asset Securities analyst Lim Hee-seok also said in a report published on July 31 that rising demand for AI transformation among enterprises is likely to accelerate growth in LG CNS's cloud, AI and digital business services segments. He cited the company's expanding non-affiliate revenue base and diversified customer portfolio as key competitive strengths.

LG AI Research has unveiled K-EXAONE 2.0, a large-scale artificial intelligence (AI) model with 750 billion parameters, more than tripling the size of its predecessor while adopting a commercially permissive open-source license.

The institute said on July 31 that it had released K-EXAONE 2.0 on Hugging Face as the second model developed under South Korea’s Independent AI Foundation Model Project, an initiative overseen by the Ministry of Science and ICT.

The model does not activate its entire network for every request. Instead, it employs a Mixture of Experts (MoE) architecture that selectively engages only the components needed to answer a query. The system contains 256 specialized processing modules and dynamically selects eight experts for each token when generating responses. While the model contains 750 billion parameters in total, only 37 billion parameters are activated during inference. The approach is designed to preserve the knowledge capacity of a large model while reducing computational requirements and operating costs.

K-EXAONE 2.0 supports a context window of up to 262,144 tokens and expands language coverage to 10 languages, including Korean, English, Japanese, and Chinese. LG AI Research also replaced its previous proprietary license with the Apache 2.0 license, allowing users to download, modify, and deploy the model commercially.

According to LG AI Research, the model achieved an average score of 70.1 across 24 benchmarks spanning nine evaluation categories, compared with 63.3 for the first-generation model. In the OpenAI-MRCR long-context retrieval benchmark, K-EXAONE 2.0 scored 94.4, exceeding the 93.0 achieved by Qwen 3.5 and the 92.9 recorded by DeepSeek V4 Pro Max.

Within South Korea, one of the most direct comparison points is SK Telecom’s A.X K2 model, unveiled on July 29. A.X K2 is also an MoE model, with 688 billion total parameters and 33 billion active parameters. Like K-EXAONE 2.0, it supports a maximum context length of 262,144 tokens and is released under the Apache 2.0 license.

The announcement did not include direct comparisons with leading commercial AI models such as OpenAI’s GPT series, Anthropic’s Claude, or Google’s Gemini. As a result, the published benchmark data alone does not provide a clear indication of how K-EXAONE 2.0 compares with the highest-performing proprietary global models.

Parameter count alone is also not a direct measure of real-world performance. User experience depends not only on reasoning capability but also on factors such as response speed, operating costs, integration with search and coding tools, multimodal capabilities, and service optimization.

The significance of the release lies in the fact that South Korean researchers have built a 750-billion-parameter-class model, including its training and inference infrastructure, and made it available under terms that allow enterprises to maintain control over deployment and customization.

The model’s competitive standing is expected to become clearer once results emerge from government-led evaluations conducted under standardized conditions, independent third-party benchmarks, and real-world deployment scenarios.

Samsung SDS expanded its top line in the second quarter on the back of growth in both its cloud and logistics businesses. However, operating profit remained largely flat compared with revenue growth. The company said it plans to expand its artificial intelligence (AI) infrastructure capacity to more than 800 megawatts (MW) by 2031 and broaden AI transformation projects, particularly in the financial sector, to secure new growth drivers.

Samsung SDS reported preliminary consolidated second-quarter revenue of 3.7178 trillion won and operating profit of 231.8 billion won. Revenue increased 5.9% from a year earlier, while operating profit rose 0.7%.

Although revenue grew by nearly 6%, operating profit increased by less than 1%. As a result, the operating margin is estimated to have declined by about 0.3 percentage points to approximately 6.2% from about 6.6% a year earlier. While expansion in logistics operations and investment in AI infrastructure supported revenue growth, they have yet to translate into meaningful profitability improvements.

Revenue from the information technology (IT) services business rose 5% year over year to 1.7625 trillion won. Within that segment, cloud revenue increased 17% to 779.4 billion won. Cloud services accounted for approximately 44% of total IT services revenue.

In particular, cloud revenue from external customers outside Samsung affiliates surged 75% from a year earlier, leading overall growth. The performance suggests the company's business mix, which has historically relied heavily on internal group demand, is expanding into external markets including the public sector, financial services and manufacturing.

The cloud service provider (CSP) business grew 24%, driven by rising demand for the Samsung Cloud Platform and expanded Graphics Processing Unit as a Service (GPUaaS) offerings across public and private sectors. The managed service provider (MSP) business also increased 17%, supported by AI transformation projects in the financial industry and growth in enterprise resource planning projects within the shipbuilding sector. With Samsung SDS's IT services growth increasingly concentrated in cloud operations, the profitability of its cloud business and the pace of external customer acquisition are expected to play a critical role in future earnings performance.

Revenue from the logistics business rose 6.6% year over year to 1.9553 trillion won. Growth was driven by air freight forwarding and contract logistics operations centered on inland transportation and warehousing. External business generated through the company's digital logistics platform Cello Square also expanded. Logistics accounted for more than half of Samsung SDS's total revenue, supporting overall top-line growth.

Samsung SDS also said it plans to increase its AI infrastructure (data center) capacity, currently 110 MW, to 230 MW by 2029. By 2031, the company aims to expand capacity to more than 800 MW, including projects under its DBO (Design, Build and Operate) business model for data centers.

LG Uplus said on July 29 that its board of directors approved the repurchase of 90 billion won worth of treasury shares. The company said the repurchased shares will be used to enhance shareholder value through measures such as share cancellation. Separately, LG Uplus will invest an additional 1.3 trillion won in the second phase of its AI data center (AIDC) project in Paju.

The company previously canceled treasury shares with a book value of approximately 100 billion won in August last year. In May this year, it also canceled all treasury shares worth about 80 billion won that had been acquired since last year.

LG Uplus also declared an interim dividend of 270 won per share for 2026, an increase of about 8% from the previous year's interim dividend. The record date is Aug. 13, and the dividend will be paid on Aug. 28.

In a separate regulatory filing, the company announced an additional investment of approximately 1.3 trillion won for the second phase of its Paju AI data center project.

LG Uplus is currently constructing a 200-megawatt (MW) AI data center in Paju, Gyeonggi Province, which it describes as the largest AI data center in the Seoul metropolitan area. The facility serves as the flagship site of the group's One LG AI infrastructure initiative, integrating LG Electronics' liquid-cooling technology, LG Energy Solution's high-performance uninterruptible power supply (UPS) batteries and LG Uplus' 27 years of data center operating expertise.

According to the company, the first data hall, scheduled for completion in June 2027, has already been fully leased. The additional investment will fund construction of the second and third data halls, related infrastructure investments and the design of a fourth data hall.

Krafton reported first-half revenue of 2.6616 trillion won and operating profit of 972.5 billion won, setting new records for both metrics on a half-year basis. Revenue and operating profit increased 73.3% and 38.3%, respectively, from a year earlier. First-half operating profit amounted to 92% of the company's total operating profit for all of 2025.

Second-quarter revenue reached 1.2902 trillion won, while operating profit totaled 410.9 billion won, up 94.9% and 67.0%, respectively, from the same period last year. Both figures marked record highs for a second quarter.

Revenue generated by the PUBG franchise increased 25% year over year during the first half. Subnautica 2, which entered early access in May, surpassed 5 million copies sold within 22 days of launch. The company said these performances drove its record first-half results. Revenue by business segment totaled 924.2 billion won from PC games, 1.1537 trillion won from mobile games, 37.7 billion won from console games and 546.0 billion won from other businesses.

Krafton also unveiled five titles targeted for release by 2027. The lineup includes the company's first new project based on the PUBG intellectual property, along with NO LAW, Project ZETA, Age Twisters, and TARAE: The Unbound.

The company also said it completed 300 billion won in treasury share repurchases and a 99.6 billion won capital reduction dividend during the first half. It canceled 336.2 billion won worth of treasury shares, including both newly acquired and previously held shares, and approved the cancellation of treasury shares repurchased during the second quarter. Krafton plans to repurchase an additional 100 billion won of treasury shares in the third quarter and cancel the entire amount.

Hancom reported record quarterly and first-half revenue driven by strong growth in artificial intelligence (AI) products, although operating profit declined as the company increased investments in AI development and commercialization.

The company said on July 30 that standalone revenue for the second quarter reached 52.1 billion won, up 11.9% from a year earlier. Operating profit fell 21.6% year over year to 13.4 billion won, resulting in an operating margin of 25.7%.

Standalone revenue for the first half totaled 98.6 billion won, an increase of 7.2% from the same period last year and the highest first-half revenue in the company's history. First-half operating profit declined 9.6% to 31 billion won, while the operating margin stood at 31.5%.

AI products were the primary driver of revenue growth. Hancom generated 13.5 billion won in AI-related revenue during the first half, surpassing its full-year AI revenue of 8.9 billion won recorded in 2025. AI products accounted for approximately 13.7% of standalone revenue during the period.

The company has been expanding sales of AI-enhanced offerings to existing Hancom Office customers, including Hancom Assistant, Hancompedia, and Hancom Docs AI. Revenue growth was driven by public-sector and enterprise customers upgrading traditional document software deployments to AI-integrated packages.

Despite stronger sales, profitability declined as Hancom increased spending on research and development, talent recruitment and commercialization initiatives related to AI products. The company also incurred upfront costs associated with bringing new products to market, contributing to lower margins despite higher revenue.

On a consolidated basis, first-half revenue totaled 183.6 billion won, up 24.6% from a year earlier. Consolidated operating profit declined 7.6% to 22.9 billion won. The trend of rising revenue and lower earnings was reflected across both the parent company and its subsidiaries.

Hancom has set full-year standalone targets of 210 billion won in revenue, 60 billion won in operating profit, and 31.5 billion won in AI revenue. As of the end of the first half, the company had achieved 47% of its revenue target, 51.7% of its operating profit goal and 42.9% of its AI revenue objective.

In the second half, Hancom plans to unveil a beta version of its Agentic Operating System (Agentic OS), designed to connect multiple AI models with enterprise workflow systems. The company said the initiative is part of its broader strategy to transform its business from a document software provider into an AI-powered workplace platform.

Kakao and its labor union have reached a tentative agreement in this year's wage negotiations, marking a significant step toward resolving a labor dispute that escalated into partial strikes and a full-day work stoppage following the breakdown of mediation talks in May.

According to industry sources on July 30, Kakao and the Kakao chapter of the Korean Chemical, Textile and Food Workers' Union reached a provisional agreement on wage negotiations the previous day. The two sides reportedly held 18 rounds of negotiations this year before arriving at the tentative deal.

The union plans to hold briefing sessions for members over two days next week to explain the proposed agreement. A ratification vote will then be conducted to determine whether union members approve the terms. If approved, the agreement will proceed to formal signing, concluding this year's negotiations.

Key details, including the wage increase rate and performance bonus amounts, have not been disclosed. Both management and the union agreed not to release specifics of the tentative agreement until the membership vote is completed.

As a result, it remains unclear how far the final terms differ from the proposals previously put forward by either side. The details are expected to be announced only after the agreement is formally ratified.

Major issues during the negotiations included the overall salary increase rate, the size of the performance bonus pool and whether restricted stock units (RSUs) should be included when calculating performance-based compensation.

Kakao currently grants RSUs worth approximately 5 million won to long-serving employees. The union has argued that RSUs should be treated separately from cash performance bonuses rather than being counted as part of a single compensation package.

According to industry sources, the union had sought a cash performance bonus of roughly 10 million won per employee in addition to separate RSU awards. The company maintained that overall compensation, including RSUs, as well as future investment obligations, should be considered when determining bonus levels.

The tentative agreement applies only to wage negotiations involving Kakao's parent company and does not cover all affiliates within the Kakao group.

Meanwhile, the labor union at KakaoBank remains in a separate wage dispute and has announced plans to conduct a full-day strike on July 31 following the breakdown of its own negotiations.

South Korea's Personal Information Protection Commission (PIPC) has imposed a fine of approximately 54 billion won on KT over a personal data breach involving unauthorized small-cell base stations.

The PIPC said on July 30 that it had held a plenary meeting on July 29 and resolved to impose corrective measures against KT, including an administrative fine of 53.979 billion won and an additional penalty of 7.2 million won, after determining that the company violated the Personal Information Protection Act.

The case involves the theft of personal information and mobile authentication data from KT subscribers through the use of illegal femtocells. Femtocells are small cellular base stations installed in locations such as buildings and underground facilities to improve mobile network coverage.

According to the investigation, attackers extracted digital certificates from lost or misplaced KT femtocells and installed them on unauthorized devices they had built themselves. The illegal femtocells were then used to connect to KT's mobile network and induce subscribers' devices to route communications through them. Through this process, the attackers obtained phone numbers, International Mobile Subscriber Identity (IMSI) numbers and International Mobile Equipment Identity (IMEI) numbers.

The attackers subsequently combined the stolen information with names and dates of birth to initiate mobile micropayment transactions. Authentication codes delivered through text messages and automated voice calls were intercepted and used to complete the transactions.

The PIPC determined that 16,647 individuals had their personal information exposed. Among them, 368 people suffered unauthorized micropayment transactions, resulting in financial losses totaling approximately 240 million won.

KT initially reported that 22,227 subscribers had been affected. However, the PIPC adjusted the figure after removing duplicate records, including corporate accounts and multiple subscriptions held by the same individual.

The regulator concluded that KT had failed to adequately manage its femtocell infrastructure and internal network access controls. Investigators found that femtocell certificates were issued with a validity period of 10 years and that access was not restricted by Internet Protocol (IP) address, allowing connections from external networks, including overseas locations.

The investigation also found that attackers could bypass the femtocell management server, while the company lacked mechanisms to detect or block connections from unregistered cell identifiers. No additional authentication procedures were required when unauthorized femtocells connected to KT's internal network.

According to the PIPC, the attackers maintained access to KT's internal network for approximately 11 months, from October 2024 through September 2025. KT discovered the unauthorized access only after receiving customer complaints related to fraudulent micropayment activity.

The regulator calculated the administrative fine based on revenue generated from KT's LTE and 5G mobile communications services. It classified the incident as a "serious violation," citing actual financial harm to customers, the duration of the breach and deficiencies in security safeguards.

During the investigation, the PIPC also found indications that KT had previously failed to report a malware infection to relevant authorities and had deleted logs associated with affected servers.

KT reportedly discovered a backdoor malware infection on certain servers in March 2024 but did not report a personal data breach. At the beginning of the investigation, the company stated that no relevant records had been preserved. However, digital forensic analysis later uncovered evidence suggesting that logs had been deleted.

The PIPC said it plans to refer KT to investigative authorities on the grounds that the company submitted false information and obstructed the investigation.

The regulator noted that the 53.979 billion won fine relates specifically to the personal data breach involving illegal femtocells. Whether additional personal information was exposed through malware-infected servers will be determined separately through ongoing investigations and follow-up reviews.

LG CNS sustained revenue growth in the first half of 2026, supported by expanding artificial intelligence (AI), cloud, financial, and manufacturing projects. However, second-quarter operating profit declined more than 9% from a year earlier, indicating weaker profitability despite top-line sales growth.

On a consolidated basis, LG CNS reported revenue of 1.5208 trillion won and operating profit of 127.9 billion won in the second quarter, the company announced on July 31. Revenue increased 4.2% year-over-year, while operating profit fell 9.2%.

Operating margin for the second quarter stood at approximately 8.4%, down about 1.2 percentage points from 9.6% a year earlier. The decline in operating profit despite higher revenue suggests cost burdens associated with the expansion of large-scale implementation projects and investments in new businesses.

Compared with the previous quarter, performance showed a recovery. Second-quarter revenue rose 15.7% and operating profit increased 35.8% from the first quarter. Operating margin also recovered from 7.2% in the first quarter to the 8% range in the second quarter.

Net profit for the quarter reached 118.7 billion won, up 19.9% from a year earlier. Despite the decline in operating profit, net profit increased as pretax profit rose 16.1% to 152.7 billion won. Specific non-operating income and expense items will be detailed in the upcoming half-year report.

For the first half of the year, LG CNS posted cumulative revenue of 2.8358 trillion won, up 6.1% from the same period last year. Operating profit increased 1.1% to 222.1 billion won. First-half operating margin was approximately 7.8%, down about 0.4 percentage points from roughly 8.2% a year earlier.

Revenue from the core AI and cloud business reached 1.6714 trillion won in the first half, up 5.1% year-over-year, accounting for approximately 59% of total company revenue.

In the cloud segment, revenue reflected progress on hyperscale AI data center projects in Samsong and Jukjeon. LG CNS noted that it secured more than 1 trillion won worth of AI data center DBO (design, build, and operate) contracts in the first half. New order volumes will be recognized as revenue sequentially based on construction progress and contract terms.

The company recently launched XPUWorks, a platform that offers AI infrastructure—including graphics processing units (GPUs) and neural processing units (NPUs)—on a subscription basis. It is also expanding new business models such as modular AI data centers.

In the AI sector, LG CNS carried out AI transformation (AX) projects across manufacturing and logistics for clients including Doosan, the Korea Federation of SMEs (KBIZ), Kurly, and LX Pantos. In the financial and public sectors, the company is expanding projects utilizing its agentic AI platform, AgenticWorks.

The Smart Engineering division recorded first-half revenue of 502.4 billion won, up 6.2% year-over-year. In the smart factory business, external projects in the defense, shipbuilding, semiconductor, and pharmaceutical industries are transitioning into revenue. The smart logistics business also grew, driven by logistics automation center projects for clients in the beauty, food, and fashion sectors.

Revenue from the Digital Business Services division, which includes financial system integration projects, rose 8.8% year-over-year to 662.1 billion won in the first half.

In overseas operations, LG CNS plans to complete an AI data center in Indonesia during the second half of the year. The company is also expanding manufacturing AX opportunities in North America and financial digital transformation projects across the Asia-Pacific region and Japan.

POSCO DX reported lower revenue and operating profit for the second quarter of 2026. However, both operating profit and new orders rose sharply from the previous quarter, laying the groundwork for an earnings recovery in the second half of the year.

POSCO DX said in a July 30 regulatory filing that it posted consolidated second-quarter revenue of 232.6 billion won and operating profit of 9.9 billion won. Compared with the same period last year, revenue declined 14.8% and operating profit fell 42.3%. Net profit totaled 11.8 billion won, down 18.2% year-over-year. The operating margin was approximately 4.2%.

While earnings remained weaker than a year earlier, profitability improved from the first quarter. Second-quarter operating profit increased 169.6% from the first quarter, and net profit rose 194.6%. Revenue declined 3.7% quarter-over-quarter.

For the first half of 2026, cumulative revenue reached 474.1 billion won and operating profit totaled 13.5 billion won, down 16.8% and 66.2% respectively from the first half of last year. The steeper decline in first-half operating profit relative to revenue reflected weaker profitability in the first quarter.

Order intake improved. POSCO DX recorded 230.4 billion won in new orders in the second quarter, up 32.8% from a year earlier. As of the end of June, its order backlog stood at approximately 960 billion won.

Com2uS Holdings announced on July 22 that it has launched Fading Echo, a new action-adventure game, on Steam and the Epic Games Store.

The title was developed by Emeteria, a studio under French game publisher New Tales. The game supports subtitles in nine languages, including Korean, English, Japanese, Chinese, German and French, while in-game voice acting is available in English.

The voice cast features several internationally recognized actors, including Samantha Béart, Jasmine Bhullar, Laura Bailey and Liam O'Brien, who are known for their work on titles such as Baldur's Gate 3, The Last of Us Part II and World of Warcraft.

Fading Echo follows the adventure of a young hero named One, who wields the power of water as she travels between the desert planet Corel and the parallel realm known as the Shadows. The game is set in the Echoverse, a shared universe spanning multiple worlds.

Players can manipulate water and steam in combat while taking advantage of an environmental system in which different elemental forces interact dynamically, creating distinctive combat encounters and exploration experiences.

Naver Cloud and Korea University's C5ISRT Convergence Research Center will jointly pursue defense artificial intelligence projects worth a combined 20 billion won, including preparations for South Korea's next-generation joint command-and-control system.

Naver Cloud announced on July 20 that it signed a memorandum of understanding with the C5ISRT Convergence Research Center under the Department of Defense Technology Management at Korea University's Graduate School of Management of Technology to strengthen industry-academia cooperation in defense C5ISRT technologies.

C5ISRT refers to an integrated military command-and-battlefield awareness framework encompassing Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, Reconnaissance and Targeting, which forms the foundation of modern military operations.

The Korea University research center is led by Prof. Kang Seok-joong, a defense technology expert with nearly four decades of research experience in defense technology management.

Under the agreement, the two organizations will jointly pursue several initiatives, including participation in the Joint Chiefs of Staff Military-Industry-Academia Cooperation Center, collaborative research on hyperscale AI-based command-and-control technologies, and advance development of core technologies for the Korea Joint Command and Control System (KCCS) project scheduled for 2027.

The Joint Chiefs of Staff Military-Industry-Academia Cooperation Center is one of five regional defense AI hubs being established by South Korea's Ministry of National Defense to promote civil-military AI collaboration using defense data. The initiative will establish AI transformation (AX) hubs in Yongsan (Joint Chiefs of Staff), Pangyo and Daejeon (Army), Yangjae (Air Force), and Busan (Navy and Marine Corps).

"Modern battlefields are rapidly evolving toward AI- and data-driven intelligent C5ISRT systems," said Prof. Kang Seok-joong. "To keep pace with this trend, South Korea's military needs projects that combine advanced AI technologies with deep expertise in the Korean Peninsula's security environment."

Shinhan Bank held its Shinhan AX Agent Summit 2026 on July 21 at its headquarters in Seoul, bringing together employees from across the Shinhan Financial Group, domestic and international technology companies, and academic experts to discuss the future of AI in financial services.

The event was designed to objectively assess the bank's current AI agent capabilities, compare them with global technologies and financial industry use cases, and identify future priorities for advancing AI transformation (AX) in banking.

The exhibition was organized into five zones, allowing participants to explore the latest AI technologies from domestic and international companies alongside Shinhan Financial Group's own AI agent developments.

The bank showcased the latest AI agent technologies and deployment cases from global financial institutions, while also exhibiting 18 AI agents developed by Shinhan Bank's AX Innovation Leaders and business units using the bank's proprietary AI platform. An additional three AI agents developed by affiliated companies within the Shinhan Financial Group were also on display.

"Financial AI transformation is not simply about adopting new technologies," a Shinhan Bank official said. "What matters more is objectively evaluating the current state of AI and continuously validating that it can be used safely and effectively in real business operations."

The official added that the bank plans to identify areas for improvement through feedback from external experts and frontline employees while continuing to enhance its financial AI agents.

SK Telecom has launched SKTCH with AI, a startup acceleration program aimed at discovering and nurturing artificial intelligence startups, with applications open from July 21 through Aug. 18.

SKTCH, a combination of SKT and Tech, is the company's platform for identifying startups and expanding collaboration opportunities. Through SKTCH with AI, SK Telecom aims to connect startups with its AI technologies, infrastructure and business capabilities to foster mutual growth.

The company plans to select 15 startups based on factors including the competitiveness of their AI technologies and their potential for collaboration with SK Telecom.

Selected companies will receive a six-month support package that includes mentoring and seminars led by industry experts, assistance with joint business development projects with SK Telecom, opportunities to participate in domestic and international exhibitions, office space and other business infrastructure, and access to investment opportunities with venture capital firms and related organizations.

The selection process will also incorporate SK Telecom's AI evaluation agent, an AI agent developed by the company to assist with startup assessments. SK Telecom said the system is expected to accelerate the review process while improving evaluation consistency.

The company said it plans to further enhance the AI agent so that it can independently handle areas where objective assessments are possible, allowing human reviewers to focus on applications requiring more detailed evaluation.

South Korea's government has launched a project to expand blockchain-based digital payment infrastructure centered on deposit tokens, aiming to reduce payment processing costs for small businesses while accelerating the adoption of digital financial services.

The Korea Internet & Security Agency (KISA) and the Ministry of Science and ICT announced on July 22 that they held a joint launch ceremony at KISA's Seoul headquarters for the Deposit Token-Based Payment Infrastructure Expansion Project, one of this year's selected Blockchain Innovation Leading Projects. The initiative is intended to accelerate the deployment of blockchain-based digital payment infrastructure.

The project is part of the government's demonstration program to identify and promote blockchain-based services with significant economic and social impact, including support for local businesses and the creation of new markets. This year's open competition selected the deposit token payment infrastructure project, which seeks to ease payment fee burdens for small merchants, following evaluation by an external panel of experts. To expand the use of deposit tokens and maximize the project's impact, the government will collaborate with related organizations, including the Ministry of Finance and Economy and the Bank of Korea.

The Korea Financial Telecommunications & Clearings Institute (KFTC) will serve as the lead organization, working with a private-sector consortium comprising nine commercial banks, eight payment service providers and two major merchant partners. KFTC will connect the existing payment infrastructure with the Bank of Korea's Project Hangang platform to enable deposit token payments while overseeing service development and pilot operations. The total project budget is 9.6 billion won.

The project's primary objective is to extend the institutional experience gained through the Bank of Korea's Project Hangang, which demonstrated central bank digital currency (CBDC)-based deposit tokens, into consumer-facing payment services. The government expects the initiative to deliver tangible benefits, including lower payment costs for small businesses. In addition, KFTC plans to work with the Ministry of Finance and Economy to expand the use of deposit tokens into public-sector financial activities, such as government operating expenses.

A key feature of the initiative is that it leverages existing payment infrastructure rather than requiring an entirely new payment network. By integrating with current payment terminals and online payment systems, consumers will be able to make payments using bank-issued deposit tokens through dedicated digital wallet applications. Authorities are also considering the introduction of physical payment cards. Merchants, including small businesses, will be able to accept deposit token payments without replacing their existing payment terminals.

The government expects that establishing a deposit token-based payment and settlement system will improve settlement speed and operational efficiency, enabling lower merchant transaction fees and reducing financial burdens on small business owners.

The Ministry of Finance and Economy also plans to incorporate deposit tokens into a pilot program for government business expenses. Looking ahead, the ministry intends to work with the Ministry of Planning and Budget's fiscal management organizations, including the Korea Public Finance Information Service, to develop a treasury management model linked to the government's dBrain digital fiscal management system for broader public fund administration.

The Ministry of Science and ICT said the project will create practical blockchain applications that the public can directly experience while expanding opportunities for blockchain companies—including small and medium-sized enterprises, startups and information technology firms—to participate in system development, operation and commercialization, thereby strengthening South Korea's blockchain ecosystem. Of the project's 9.6 billion won budget, approximately 3 billion won will be allocated to development, operations and promotional activities involving SMEs, startups and IT companies. Participating commercial banks and other consortium members also plan to undertake related projects worth approximately 4.5 billion won alongside the main initiative.

SK Telecom, KT and LG Uplus have entered the AI smart glasses market, expanding device competition beyond smartphones as all three carriers begin offering Ray-Ban Meta smart glasses bundled with mobile service discounts and installment payment plans.

The three mobile carriers announced on July 22 that they have started selling Ray-Ban Meta Wayfarer (Gen 2) smart glasses.

The product was jointly developed by Meta and eyewear manufacturer EssilorLuxottica. Meta began selling the glasses in South Korea through department stores, duty-free shops and optical retailers on May 25, and the carriers' launch broadens distribution by combining the device with mobile subscription benefits.

Ray-Ban Meta features a 12-megapixel ultra-wide camera, five microphones and open-ear speakers that leave the user's ears uncovered. Users can capture photos and videos by pressing a button on the frame or by saying, "Hey Meta." The glasses support first-person photography, record video at up to 3K Ultra HD resolution, and also provide music playback and hands-free calling.

Users can also interact with Meta AI in Korean, asking questions, identifying nearby objects, receiving recommendations and using real-time translation features. The glasses weigh approximately 50 grams, carry an IPX4 water-resistance rating, offer up to eight hours of battery life on a single charge, and up to 48 hours when used with the charging case.

However, the version sold in South Korea is not an augmented reality (AR) display device that projects maps, text or video onto the lenses. Instead, it functions primarily as a voice-first AI wearable, recognizing the surrounding environment through its camera and microphones while delivering Meta AI responses through the built-in speakers.

The device has also raised privacy concerns because of its built-in camera. Although an LED indicator on the front of the glasses illuminates whenever photos or videos are being recorded to alert people nearby, the product closely resembles ordinary eyewear, making it difficult to distinguish from conventional glasses.

NC is making a renewed push into the anime-style game market, partnering with developers behind Nexon Games' hit title Blue Archive and preparing to launch a closed beta test for its latest title.

The company announced on July 20 that it will hold the first closed beta test (CBT) for Astraea Oratio, an anime-style role-playing game developed by Dynamis One. NC plans to begin recruiting testers in August, with detailed schedules and participation methods to be announced later. The publisher made a strategic investment in Dynamis One in January 2026 and secured domestic and global publishing rights for the game.

Alongside the CBT, NC is stepping up its efforts in Japan, the world's largest market for anime-style games. The company will participate in Comic Market (Comiket) in August and showcase the game's systems at the Tokyo Game Show in September.

NC previously entered the anime-style segment with Hoyeon, which launched in South Korea, Japan and Taiwan in August 2024. Based on the Blade & Soul intellectual property, Hoyeon featured more than 60 collectible characters and cartoon-style graphics, leading many to classify it as an anime-style title.

The company, however, distinguished Hoyeon from conventional anime-style games. Unlike the genre, which places strong emphasis on attractive male and female characters and character-driven storytelling, Hoyeon was designed as a field-combat massively multiplayer online role-playing game (MMORPG) with cartoon-style visuals. Amid debate over its genre identity, the game's Asian service was discontinued in February this year.

Astraea Oratio, by contrast, is positioned as a full-fledged anime-style title. Much of the attention surrounding the game stems from the involvement of Park Byung-rim, chief executive officer of Dynamis One and former producer of Blue Archive at Nexon Games. Park founded Dynamis One in 2024, and several key Blue Archive developers, including scenario director Yang Ju-young and art director Kim In, also joined the studio. Given Blue Archive's strong performance in the Japanese market, the development team's track record is viewed as one of the game's biggest strengths.

Dynamis One, however, also faces legal and reputational challenges. The studio's first announced title, Project KV, drew criticism for alleged similarities to Blue Archive in its worldbuilding and character designs. In addition, several Dynamis One executives are under investigation over allegations that they unlawfully removed development materials related to MX Blade, an unreleased title from Nexon Games. Police referred Park and other individuals to prosecutors without detention in October 2025 on charges including violations of Korea's Unfair Competition Prevention Act, and prosecutors requested a supplementary investigation the following month. Dynamis One has denied the allegations, saying many of the claims are inaccurate. No indictment has been filed and no court has found the individuals guilty.

Industry observers say Astraea Oratio's success will depend on whether NC avoids applying the same live-service operating model commonly used in MMORPGs. Players of anime-style games tend to place greater importance on character design and storytelling than on combat systems, making the genre fundamentally different from conventional MMORPGs.

As a result, the first CBT is expected to provide an early indication of whether the game offers compelling reasons for players to collect and develop characters, and whether its world and narrative can build lasting player attachment.

The launch also marks NC's first clear commitment to the anime-style genre after Hoyeon occupied an ambiguous position between genres. Its decision to work with an external development studio and actively engage Japanese players before launch reflects a different strategy from the company's previous approach.

Selvas AI announced on July 20 that it has partnered with robotics company Clobot to deploy its artificial intelligence (AI) voice interface technology, SELVAS Trigger, on more than 20 AirStar guide robots at Incheon International Airport. Passengers can now activate the robots' voice guidance service simply by saying the wake word "AirStar," without touching the display.

AirStar is Incheon International Airport's autonomous guide robot equipped with autonomous navigation, speech recognition and AI technologies. The robot provides information on boarding gates and major airport facilities and, when requested, guides passengers directly to their destinations.

SELVAS Trigger is a wake-word solution that recognizes a predefined activation phrase before launching downstream voice functions such as speech recognition. The technology serves as the initial point of interaction between users and physical AI devices. Because it operates entirely on-device, it can be deployed across a wide range of AI-enabled hardware, including robots and AI kiosks.

Building on the deployment at Incheon International Airport, Selvas AI plans to expand its AI voice interface business into broader physical AI applications, including AI kiosks for the financial sector, while pursuing new opportunities in robotics and mobility markets.