IMAGIS said Chief Executive Officer Lee Dong-seop, who was appointed in March, has resigned after serving for just four months.

The company disclosed on July 31 that its board approved the resignation at a meeting held the same day. Lee stepped down before completing his term, which was scheduled to run through March 2029. The company did not disclose the reason for his departure.

Chairman Kim Jung-chul will return as chief executive. Born in 1964, Kim has led IMAGIS since the 2000s and is currently the company's largest shareholder with an 18.43% stake.

In March, IMAGIS appointed Lee, a former SK hynix executive, as CEO. At the time, the company said it planned to expand into physical AI and robotics-based solutions, adding that the appointment was intended to drive revenue growth and strengthen management accountability.

Since then, the company has secured a major new order. On June 8, IMAGIS announced an automotive semiconductor supply contract worth approximately 5.8 billion won. The deal was equivalent to 43.71% of the company's revenue of about 13.2 billion won in the previous year and marked a significant win as the company seeks to recover from three consecutive years of losses since 2023.

IMAGIS has projected revenue of 21.0 billion won for 2026, which would represent its highest annual sales since 2017.

The leadership change comes as the company works to capitalize on growing opportunities in automotive semiconductors and next-generation AI-related applications.

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.

HD Hyundai reported second-quarter operating profit exceeding 4 trillion won, supported by strong performance across its shipbuilding, construction equipment, refining and power equipment businesses.

The company said on July 31 that it posted consolidated revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won for the second quarter of 2026. Revenue increased 30.2% from a year earlier, while operating profit surged 262.2%.

For the first half of the year, cumulative revenue reached 42.0113 trillion won and operating profit totaled 6.9594 trillion won.

HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding and marine holding company, reported revenue of 8.9270 trillion won and operating profit of 1.6451 trillion won. The results were driven by higher productivity and increased sales of high-margin vessels. Revenue rose 20.2% year over year, while operating profit increased 72.5%.

HD Hyundai Marine Solution generated revenue of 580.4 billion won and operating profit of 97.6 billion won, benefiting from growth in its ship aftermarket (AM), eco-friendly retrofit and digital solutions businesses. Revenue and operating profit increased 24.1% and 17.6%, respectively, from a year earlier.

HD Hyundai Site Solutions, the group’s construction equipment unit, posted revenue of 2.5235 trillion won and operating profit of 272.0 billion won. Results were supported by improving global market conditions, stronger sales of next-generation excavators and increased demand for industrial and defense engines. Revenue rose 17.9% and operating profit climbed 79.6% from the same period last year.

HD Hyundai Oilbank recorded revenue of 9.4774 trillion won and operating profit of 1.8241 trillion won. Improved profitability in lubricant base oils and petrochemicals helped offset volatility in international crude oil prices.

HD Hyundai Electric reported revenue of 1.1418 trillion won and operating profit of 287.0 billion won. Growth was driven by higher sales in its power distribution business and improved profitability in overseas markets. Revenue increased 26.0% year over year, while operating profit rose 37.3%.

An HD Hyundai representative said earnings improved across the group’s major businesses, including shipbuilding, construction equipment, refining and power equipment.

The company said it plans to continue enhancing profitability through selective orders focused on high-value-added vessels, expansion into new markets and ongoing improvements in product mix.

Samsung Electronics' next-generation gallium nitride (GaN) power semiconductor foundry project has encountered a setback during trial production, raising concerns that commercial production may be delayed beyond this year. The issue emerged after some test chips reportedly failed to operate under extended high-temperature conditions.

According to multiple industry sources on July 31, Samsung has established a dedicated 8-inch GaN semiconductor foundry line at its Giheung campus in Yongin with monthly capacity of approximately 1,300 to 1,500 wafers. The company recently conducted trial production of chips designed by fabless semiconductor companies. During testing, some of the chips reportedly stopped functioning after being exposed to temperatures of 100 to 200 degrees Celsius for roughly 1,000 hours.

GaN semiconductors are commonly used in high-voltage applications of up to 1,200 volts and in environments exceeding 200 degrees Celsius. Their ability to operate reliably under high-temperature conditions has made them increasingly attractive for electric vehicles, robotics and data center applications. Industry sources said the reported reliability issues could limit the usability of chips manufactured using the current process.

Samsung is said to be investigating the root cause of the problem. Industry sources identified the wafer manufacturing process as a leading area of focus. According to those sources, process modifications introduced to achieve targeted device performance may have contributed to the reliability issue.

GaN devices are typically fabricated on epitaxial wafers, in which a GaN layer is grown on a silicon (Si) wafer through an epitaxy process. If the quality or structure of the GaN layer is not fully optimized, defects can become more pronounced under high-temperature and high-voltage operating conditions. Samsung manufactures its own epitaxial wafers using metal-organic chemical vapor deposition (MOCVD) equipment.

A person familiar with the matter said Samsung may have focused on achieving the target threshold voltage of 2 to 3 volts for power semiconductors while overlooking potential effects on device longevity. GaN semiconductors generally require a threshold voltage of around 2 volts. If the threshold voltage is too low, the device may respond to very small currents and become more susceptible to operational errors.

Samsung reorganized its LED business in 2023 and established the Compound Semiconductor Solutions (CSS) division to focus on GaN semiconductors. The division originally planned to launch a dedicated GaN foundry line in 2025. However, weaker-than-expected conditions in the power semiconductor market prompted Samsung to postpone the schedule to the end of 2026.

Industry sources now believe the latest reliability issue could push the timeline back by several additional months. One Samsung GaN foundry customer, speaking on condition of anonymity, said Samsung had already entered the market later than competitors because the company prioritized major businesses such as memory semiconductors. Companies including Infineon Technologies, STMicroelectronics, Texas Instruments and Innoscience have already been shipping GaN semiconductors commercially for one to two years.

Some fabless semiconductor companies are reportedly evaluating alternative foundry partners until Samsung resolves the issue. Potential alternatives include GlobalFoundries, Powerchip Semiconductor Manufacturing Corporation and X-FAB. Unlike silicon semiconductors, where mask costs are typically high enough to encourage production at a single foundry, compound semiconductor mask costs are relatively lower, making it less burdensome to work with multiple manufacturing partners.

A Samsung Electronics representative said the company is still in the pre-production stage and is working through normal development challenges.

"It is part of the process of addressing trial-and-error issues before mass production," the representative said. "It is too early to determine whether these findings constitute a defect."

EcoPro BM plans to begin operating a second production line at its Hungary cathode materials plant in September as it seeks to turn its Hungarian subsidiary profitable in the second half of the year.

The company reported consolidated second-quarter revenue of 576.7 billion won and operating profit of 18.0 billion won on July 31. Revenue declined 5% from the previous quarter, while operating profit fell 14%.

Performance was affected by temporary demand disruptions caused by model transitions at European automotive original equipment manufacturers (OEMs) and a slowdown in the North American electric vehicle market.

By business segment, revenue from energy storage system (ESS) materials fell 54% from the previous quarter due to stagnant European electric vehicle demand and a shift in North American ESS supply chains. Revenue from electric vehicle cathode materials increased only 1%.

In contrast, revenue from power applications rose 28%, supported by expanding investment in artificial intelligence (AI) data centers and growing demand for power tools and electric bicycles.

The company plans to accelerate its European expansion through its Hungary facility. After launching the first production line in June, EcoPro BM will begin operating a second line in September. Production is expected to reach 10,000 metric tons this year and expand to 30,000 tons in 2027.

EcoPro BM said the plant's utilization rate and production yield have already reached target levels. While the subsidiary recorded losses in the first half because of depreciation expenses and labor costs associated with initial mass production, the company aims to achieve quarterly profitability in the second half through higher output, improved operating efficiency and cost reductions.

New European projects have also entered mass production. The company recently began manufacturing products for a newly secured European customer and is preparing several additional projects for volume production. EcoPro BM expects growth to gradually recover as shipments from both existing contracts and new programs increase.

The company is also proceeding with its investment in the BNSI nickel smelter project in Indonesia, which is intended to strengthen raw material cost competitiveness. Trial operations are scheduled to begin later this year, with commercial production targeted for the second quarter of 2027.

Once operating at a stable level, the smelter is expected to generate approximately $1.7 billion in annual revenue and achieve a double-digit operating margin, according to the company. Through its 39% stake in BNSI, EcoPro BM expects to secure approximately 36,000 tons of intermediate nickel materials annually.

The company is continuing development of next-generation battery materials. Its sulfide-based solid-state electrolyte has completed customer quality verification and is targeted for mass production in 2027. Lithium manganese-rich (LMR) cathode materials are undergoing customer qualification processes, while sodium-ion cathodes and silicon anodes are also being prepared for commercialization.

EcoPro BM said it remains on track with the 1.2 trillion-won rights offering announced in June. The company plans to determine the preliminary offering price in September, finalize the subscription price in October and list the newly issued shares in November.

Daeduck Electronics reported record quarterly results as demand for semiconductor substrates used in artificial intelligence (AI) servers and data centers continued to expand. Operating profit surged 3,599% from a year earlier.

The company said on July 31 that it posted consolidated revenue of 401.0 billion won and operating profit of 70.3 billion won for the second quarter of 2026. Revenue increased 63% year over year, while operating profit jumped 3,599%. Compared with the previous quarter, revenue rose 16% and operating profit increased 37%.

Operating margin reached 17.5%, up 2.7 percentage points from 14.8% in the first quarter.

Growth was driven by higher sales of high-value semiconductor substrates for AI and data center applications.

"Performance continued to improve on the back of growing demand for high-performance semiconductors in AI and data center markets and strengthened business competitiveness," the company said.

Revenue from the company's core package substrate (PKG) business reached 343.5 billion won, up 65% from a year earlier and 18% from the previous quarter. Demand increased for controllers, optical modules and networking products used in AI data centers. Sales of automotive radar and advanced driver assistance system (ADAS) products also expanded. Improved product mix, higher productivity and favorable foreign exchange rates contributed to profitability.

Revenue from the multilayer board (MLB) business totaled 57.5 billion won, rising 53% year over year and 4% sequentially. The company began mass production of next-generation AI products and saw increased sales for semiconductor inspection equipment and electronic design automation (EDA) applications. Demand for high-margin products in aerospace and defense markets also remained stable.

The company's revenue mix continued to shift toward AI-related products. Flip-chip ball grid array (FC-BGA) substrates accounted for 26% of revenue, up from 23% in the previous quarter. Flip-chip chip-scale package (FC-CSP) products represented 48% of revenue, compared with 46% in the prior quarter, reflecting stronger sales of high-value products for AI servers and data centers.

By contrast, the share of memory-related chip-scale package (CSP) products—including NAND flash, low-power DRAM (LPDDR5), SOCAMM and Compute Express Link (CXL) products—declined to 23% from 25%.

Daeduck Electronics expects growth to continue in the third quarter. The company plans to expand mass production of large-area substrates for AI data centers and accelerate new product development. It also aims to address growing demand for high-performance networking products and physical AI-related applications.

Korea Aerospace Industries (KAI) has been selected to lead a government-backed defense project aimed at developing on-device artificial intelligence (AI) semiconductors and validating their performance on unmanned aerial vehicles.

KAI announced on July 31 that it had been named the preferred bidder in the defense segment of the Ministry of Trade, Industry and Resources' K-On-Device AI Semiconductor Technology Development Program. The project has a total budget of 95.3 billion won and will run for five years.

The program seeks to develop a defense-grade system-on-chip (SoC) and an autonomous control system (ACS) incorporating the chip, then integrate the technologies into an unmanned aircraft platform for performance verification.

The project consists of three subprograms. KAI will serve as the overall project coordinator and lead the first and third subprojects, which include development of a high-speed expendable unmanned aerial vehicle, autonomous control systems, system integration and flight testing. The second subproject, focused on AI semiconductor development, will be led by a domestic fabless semiconductor company.

The consortium includes South Korean AI semiconductor developers, AI model companies and research institutions. Samsung Electronics will be responsible for semiconductor manufacturing.

KAI plans to incorporate the AI chip developed through the project into its proprietary AI pilot system, known as K-AILOT. The company also intends to expand the technology to satellite applications, enabling onboard AI chips to analyze data in real time before transmitting it to ground stations.

KAI has been strengthening its AI ecosystem through partnerships. The company signed a memorandum of understanding with Samsung Electronics last year and another with Team Naver—comprising Naver and Naver Cloud—earlier this month. KAI said it is pursuing the development of a sovereign AI framework that combines AI semiconductors, large language AI models and cloud technologies.

More than half of the customers preordering Samsung Electronics’ latest foldable smartphones are in their teens, 20s and 30s, with the newly introduced passport-style Galaxy Z Fold8 emerging as the most popular model.

Samsung Electronics said on July 31 that customers in their teens through 30s accounted for more than 50% of preorders placed through Samsung.com for the Galaxy Z Fold8 Ultra, Galaxy Z Fold8 and Galaxy Z Flip8 since reservations opened on July 28. The preorder period runs through Aug. 3.

Among younger customers, the Galaxy Z Fold8 was the most frequently selected model. By color, Cream was the most popular choice, followed by Pistachio and Lavender, both exclusive to Samsung.com.

For the Galaxy Z Fold8 Ultra, Graphite and the Samsung.com-exclusive Green Shadow were the most popular colors. For the Galaxy Z Flip8, Mint, Cream and Pink received the strongest customer preference.

Samsung attributed the higher share of younger buyers to promotional benefits such as storage upgrades and features that simplify transferring data from existing devices to Galaxy smartphones.

Customers who purchase a 256-gigabyte (GB) model during the preorder period will receive a 512GB model. Buyers of the 512GB Galaxy Z Fold8 Ultra and Galaxy Z Fold8 can upgrade to a 1-terabyte (TB) model for an additional 310,700 won.

Preorder customers will also receive a six-month subscription to Google AI Pro, a three-month subscription to audiobook and content platform Welaaa, and discount coupons for Galaxy Watches and accessories. Samsung is also offering its New Galaxy AI Subscription Club program for the new devices, as well as the Flip Youth Subscription program targeted at customers in their teens and 20s.

Hanwha Aerospace reported quarterly operating profit exceeding 1 trillion won for the first time, supported by strong defense exports and improved performance from its subsidiaries.

The company said on July 31 that it posted consolidated revenue of 9.2929 trillion won and operating profit of 1.3655 trillion won for the second quarter of 2026. Revenue increased 47% from a year earlier, while operating profit rose 59%.

The ground defense business generated revenue of 2.1075 trillion won and operating profit of 533.0 billion won. Revenue rose 19% year over year, while operating profit increased 2%. In South Korea, growth was driven by higher production volumes of the Cheonho wheeled anti-aircraft gun and the Cheongeom. Overseas, shipments to Poland, Egypt and Middle Eastern customers contributed to earnings.

Hanwha Aerospace said its order backlog expanded to 38.3 trillion won following an additional K9 self-propelled howitzer export contract with Finland signed in April and a supplementary Chunmoo multiple launch rocket system supply agreement with Estonia signed in May.

The aerospace business recorded revenue of 760.0 billion won and operating profit of 37.0 billion won. Revenue increased 17% from a year earlier on higher military program volumes, while the division returned to profitability.

Consolidated subsidiary Hanwha Ocean also contributed significantly to earnings growth. Benefiting from a higher proportion of high-margin vessels, including liquefied natural gas (LNG) carriers, Hanwha Ocean posted revenue of 5.4432 trillion won and operating profit of 736.1 billion won. Revenue rose 65% year over year and operating profit increased 98%.

Hanwha Systems reported revenue of 1.1176 trillion won and operating profit of 103.7 billion won, supported by growing defense exports, including multifunction radar (MFR) systems.

In the second half, Hanwha Aerospace plans to continue production under the second execution contract for Poland's K9 program and proceed with K9 deliveries to Egypt and Australia. The company also plans to participate in the South Korean government's advanced aircraft engine development program based on a prototype unmanned aerial vehicle engine it recently unveiled.

Hanwha Ocean has secured a contract worth 838 billion won to complete the detailed design and construct the lead ship of South Korea's next-generation destroyer program, known as KDDX.

The company disclosed on July 31 that it signed a contract with the Defense Acquisition Program Administration (DAPA) for the KDDX detailed design and lead ship construction project. The contract is valued at 838 billion won and runs through June 30, 2032.

DAPA issued the tender in March and selected Hanwha Ocean as the preferred bidder on July 1 following site inspections and proposal evaluations. Hanwha Ocean subsequently completed negotiations covering technical requirements, contract terms and pricing before signing the final agreement.

KDDX is South Korea's first Aegis-class destroyer program to develop both the hull and combat system using domestic technologies. The government plans to invest approximately 7.8 trillion won to acquire six 6,000-ton destroyers. The Republic of Korea Navy plans to commission the lead ship in 2032 and deploy all six vessels by 2036.

Hanwha Ocean and HD Hyundai Heavy Industries competed for the KDDX contract. HD Hyundai Heavy Industries scored 0.6425 points higher than Hanwha Ocean in the technical evaluation. However, a 1.2-point security penalty related to a military secrets leak case reversed the ranking. Hanwha Ocean ultimately received 93.9542 points, compared with 93.3675 points for HD Hyundai Heavy Industries, a margin of 0.5867 points.

The timing and procurement method for the five follow-on vessels have not yet been determined. An industry official said the remaining ships are expected to be ordered around 2028, although authorities have not decided whether they will be procured through a single package or multiple contracts.

Hanwha Ocean plans to equip the KDDX destroyer with nine domestically developed systems. The design will also incorporate a manned-unmanned integrated combat system, a multi-layered defense architecture and a cyber defense framework. Ship automation technologies aimed at reducing crew requirements will also be included.

Since its launch in 2023, Hanwha Ocean has won contracts for the fifth and sixth Ulsan-class Batch-III frigates and the first and second Batch-IV frigates. The KDDX lead ship award further expands the company's surface combatant shipbuilding portfolio.

Dongwon Systems posted stronger second-quarter earnings, supported by growing exports of high-value-added packaging materials and improved performance at its overseas subsidiaries.

The company disclosed on July 31 that it recorded consolidated revenue of 402.2 billion won and operating profit of 31.4 billion won for the second quarter. Revenue increased 9.8% from a year earlier, while operating profit rose 21.1%.

First-half cumulative revenue reached 740.0 billion won, up 5.2% year over year. Operating profit increased 15.5% to 44.4 billion won. The company said expanded exports of high-value packaging materials and improved profitability at overseas subsidiaries contributed to the earnings growth.

In its materials business, Dongwon Systems expanded exports of its recyclable polyethylene (PE)-based mono-material packaging products to North America, Asia and Africa. Exports of the products increased by about 20% from the same period last year.

Its Vietnamese subsidiary, Tan Tien Packaging (TTP), also posted stronger sales as shipments to North American markets, including the United States and Canada, increased. Revenue at the subsidiary rose by approximately 20% year over year.

A Dongwon Systems representative said the company plans to further expand overseas packaging material sales in the second half while fostering new businesses, including battery materials and advanced films.

Samsung Electronics' privacy OLED panel used in the Galaxy S26 Ultra is estimated to cost more than 10% more to manufacture than a conventional low-temperature polycrystalline oxide (LTPO) OLED panel, according to industry sources.

The Galaxy S26 Ultra's OLED panel adopts a dual-pixel architecture, in which each pixel contains separate red, green, and blue (RGB) sub-pixels for wide-viewing-angle mode and narrow-viewing-angle privacy mode. Market research firm Counterpoint Research estimates that the panel's overall production cost is about 10% higher than that of a comparable LTPO OLED panel.

In standard mode, the display operates using the wide-viewing-angle pixels, whereas privacy mode primarily drives the narrow-viewing-angle pixels. The panel achieves its privacy function through a multilayer black matrix (BM) structure formed deeply around the narrow-viewing-angle pixels, allowing light to pass directly toward the user while blocking light emitted at wider angles. Alignment accuracy between the light-emitting area and the black matrix affects brightness, viewing-angle control performance, and manufacturing yield.

Manufacturing complexity has increased further through the use of Color Filter on Encapsulation (CoE) technology, which eliminates the polarizer layer by forming color filters and black matrix structures directly on top of the OLED encapsulation layer. While CoE helps reduce panel thickness and improve light efficiency, the privacy OLED design requires the integration of additional pixels and multilayer black matrix structures, adding to process complexity.

The number of thin-film transistor (TFT) masks required for CoE integration has increased significantly compared with the OLED panel used in the Galaxy S25 Ultra, resulting in higher manufacturing costs. Additional masks also increase exposure, etching, and deposition processes, along with equipment utilization time and material consumption.

Specific panel supply prices have not been disclosed. However, industry estimates place display costs at approximately $84 for the Galaxy S23 Ultra, $88 for the Galaxy S24 Ultra, and $80–87 for the Galaxy S25 Ultra. The Galaxy S26 Ultra's display cost is estimated at approximately $88–96.

Demand for privacy OLED technology is expected to grow. Market research firm Sigmaintell forecasts that smartphone shipments featuring privacy-mode displays will increase from 1 million units in 2025 to 21 million units in 2026, before reaching 29 million units in 2027.

Samsung Electronics is also expected to expand the technology beyond the Galaxy S26 Ultra. Privacy displays are planned for all four Galaxy S27 models—Base, Plus, Pro, and Ultra—scheduled for release next year. Meanwhile, privacy displays for foldable devices remain under development and have not yet been implemented in mass-production specifications.

An industry source noted that privacy OLED technology involves more than simply adding a light-blocking layer. “It requires simultaneous changes to pixel layouts, optical structures, and driving circuits,” the source said. “As production volumes increase, simplifying mask processes and improving yields will be critical to reducing cost increases.”

Sunic System said it will expand financial support for its partner companies following an upgrade to its corporate credit rating.

The company announced on July 31 that it recently received an A+ credit rating from a state-owned bank, a level it described as the highest available for mid-sized companies.

Sunic System said the evaluation reflected its stable financial structure, business performance and competitiveness in the global organic light-emitting diode (OLED) deposition equipment market. The assessment also took into account the company's efforts to develop next-generation businesses, including OLEDoS and perovskite technologies, as well as plans to expand its production infrastructure.

The company added that its ratings from major credit assessment agencies have also improved compared with the previous year.

Based on the upgraded credit profile, Sunic System has launched a financing support program for its suppliers. The company will recommend partner firms requiring facility investment or working capital financing to the Korea Credit Guarantee Fund (KODIT). Recommended firms receive preferential treatment when raising funds from financial institutions through KODIT's preferential guarantee program for partner companies.

Sunic System said it is the first case in which a general mid-sized company, excluding defense firms, has used KODIT's preferential guarantee program for partner companies to arrange financing support for its partners.

SK hynix said it was unable to disclose additional shareholder return plans because of restrictions related to its American depositary receipt (ADR) offering and US securities regulations. The company expects to provide more specific details after the ADR process is completed in early August.

During the company's second-quarter earnings conference call on July 29, Song Hyun-jong, president of SK hynix's Corporate Center, said regulatory requirements tied to the ADR offering limited the company's ability to disclose new material information.

"Due to regulations and procedures related to the ADR offering, there are restrictions on providing additional material information that was not disclosed during the offering process," Song said. "We are reviewing various shareholder return options and will share specific plans with the market once they are finalized."

The restrictions are understood to stem from communication rules under Section 5 of the US Securities Act of 1933, which limit communications that could be interpreted as an offer to investors during a registered securities offering.

The US Securities and Exchange Commission (SEC) broadly interprets communications that could stimulate public interest in an issuer or its securities as potential offers. Violations of these restrictions are commonly referred to as "gun jumping."

The term originates from track-and-field competitions, where an athlete starts running before the starting gun is fired. In securities markets, it refers to the disclosure of new material information not included in an offering prospectus before the registration process is completed, potentially influencing investor decisions or market sentiment.

Because shareholder return measures such as share buybacks or special dividends could affect investment decisions, SK hynix was limited in what it could disclose while the registered offering remained in progress.

The company is expected to provide more detailed shareholder return plans after the ADR-related procedures conclude in early August.

Under Rule 174 of US securities regulations, prospectus delivery requirements remain in effect for up to 25 days after a newly registered public offering. During that period, investors must continue to receive offering-related information while post-offering procedures are completed.

An SK hynix spokesperson said the company expects to announce more specific shareholder return measures once the ADR process is finalized. The remaining post-offering procedures are expected to be completed on August 4.

SK hynix reported record quarterly results in the second quarter, posting revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won. Despite the strong earnings, the company's share price fell nearly 10% on the day of the announcement, as investors were disappointed by the absence of additional shareholder return plans.

At the company's annual shareholders meeting earlier this year, Kwak Noh-jung, president of SK hynix, said the company aims to strengthen its financial position by building net cash to 100 trillion won over the long term while continuing to consider dividends and share repurchases.

As of the end of June, SK hynix held 69.37 trillion won in net cash, up from 35.01 trillion won at the end of March. The company is expected to reach 100 trillion won in net cash by the end of the third quarter.

POSCO Holdings improved profitability in the second quarter, supported by stronger performance from its lithium and liquefied natural gas (LNG) businesses. The company's battery materials segment also returned to profitability, contributing to overall earnings growth.

The company reported revenue of 19.259 trillion won and operating profit of 819 billion won for the second quarter, according to results released on July 30. Net profit totaled 761 billion won. Major businesses, including steel, battery materials and energy, all improved from the previous quarter.

In the battery materials segment, POSCO Future M benefited from inventory valuation gains on cathode materials and a recovery in anode material sales. The company reported revenue of 679.5 billion won and operating profit of 26.7 billion won on a consolidated basis in the second quarter. Operating profit surged 3,351.2% from a year earlier.

The battery materials business posted revenue of 327.9 billion won and operating profit of 2.5 billion won, returning to profitability from the previous quarter. Improved earnings were driven by inventory valuation gains on cathode materials and increased anode material sales to key customers. The basic materials business recorded revenue of 351.6 billion won and operating profit of 24.2 billion won, with operating profit rising 28.7% from the previous quarter.

The lithium business also continued to improve. POSCO Argentina achieved its first quarterly profit after stabilizing operations and improving facilities at its first lithium brine plant. POSCO Pilbara Lithium Solution also reported stronger profitability, supported by higher sales volumes and rising lithium prices. Battery recycling subsidiary POSCO HY Clean Metal has remained profitable every month since December 2025, driven by high utilization rates.

In the infrastructure segment, POSCO International posted its highest-ever quarterly operating profit, supported by strong performance from gas fields in Myanmar and Australia and its palm oil business in Indonesia. POSCO E&C maintained stable profitability on the back of increased construction orders.

Korea Aerospace Industries (KAI) has entered into a strategic partnership with Brazilian aerospace manufacturer Embraer to collaborate on aircraft structures.

KAI announced on July 30 that it signed a memorandum of understanding (MOU) with Embraer on July 28 to pursue strategic cooperation in the aircraft structures business.

Under the agreement, the two companies will expand collaboration in research and development (R&D) of new technologies, with an initial focus on aircraft structures. KAI aims to combine its aerospace engineering expertise with Embraer's aircraft development and manufacturing capabilities to strengthen technological competitiveness and improve manufacturing efficiency.

The companies will also explore cooperation in aircraft design, engineering, manufacturing and quality management. In addition, they plan to identify joint initiatives to optimize manufacturing processes and enhance cost competitiveness.

Kim Jong-chul, president of KAI, said the partnership with Embraer represents an important step in expanding the company's collaboration with leading global aerospace manufacturers.

SK Group Chairman Chey Tae-won has made his first-ever direct open-market purchase of SK hynix shares, a move interpreted as a display of his commitment to responsible management following the company's record quarterly earnings.

According to a regulatory filing on DART, the Financial Supervisory Service's electronic disclosure system, Chey purchased 3,620 common shares of SK hynix on the open market on July 30. Based on the stock's closing price of 1,322,000 won that day, the purchase was valued at approximately 4.79 billion won.

The transaction increased Chey's direct ownership of SK hynix shares from zero to 3,620 shares. Total holdings by the company's largest shareholder and related parties increased from 146,124,531 shares to 146,128,151 shares, while the ownership stake remained unchanged at 20.00%.

The purchase marks the first time Chey has directly acquired SK hynix shares in the open market. The move is seen as a display of responsible management, reflecting confidence in the company's mid- to long-term growth potential and corporate value amid the recent decline in the share price.

SK hynix reported record quarterly results on July 29, posting revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won for the second quarter, both all-time highs on a quarterly basis. After the announcement, however, the shares weakened as profit-taking coincided with a correction in the South Korean stock market.

The purchase has also drawn attention because it came after the Seoul High Court, in a remanded case on July 24, ordered Chey to pay 944 billion won in property division to Roh Soh-yeong, director of Art Center Nabi. Analysts said the move demonstrates Chey's willingness to invest in a key group affiliate despite the substantial financial burden from the ruling.

Krafton announced on July 29 that it has launched its first global brand campaign through digital signage at Tokyo's Shibuya Scramble Crossing, one of Japan's most prominent advertising locations.

According to the company, the campaign is designed to strengthen brand recognition and showcase Krafton's intellectual property (IP) portfolio in Japan, one of its key markets for global franchise expansion. The initiative forms part of the company's long-term strategy to build and scale "big franchise IPs" with extended product life cycles (PLCs).

The campaign features 16 major franchises, including Mimesis, which recently surpassed 2 million cumulative copies sold, and PUBG: Battlegrounds.

In June, Mimesis became the first Korean game to receive the Excellence Award in the Game Design category at the CEDEC Awards 2026, presented during CEDEC, Japan's largest conference for game developers organized by the Computer Entertainment Supplier's Association (CESA).

The offline campaign ran from June 20 to June 26 and also featured collaboration content between PUBG Mobile and the anime series Naruto Shippuden, a title well known among Japanese players. An accompanying online campaign across social media platforms, including YouTube and X, will continue through Aug. 2.

POSCO DX has announced its transformation into an AI-Native Company, built on two strategic pillars: physical artificial intelligence (AI) for industrial operations and agentic AI for enterprise workflows.

The company said it is focusing on expanding physical AI to build intelligent factories where people, AI and industrial equipment or robots work together seamlessly. The strategy centers on applying physical AI technologies to automate and optimize the operation of large-scale industrial equipment through robotization.

POSCO DX said the technology has already been deployed in selected operations. It has applied physical AI to steel mill equipment weighing tens of tons, including overhead cranes that transport steel products, reclaimers that move raw materials in storage yards and ship unloaders, improving worker safety and productivity.

The company is also converting the tacit knowledge of highly experienced operators into core datasets for physical AI, enabling AI to collaborate with human operators in control rooms while managing robots and industrial equipment.

At a press briefing on July 29, Cho Seok-joo, executive vice president and head of the AX Research Institute at POSCO DX, outlined the company's progress in developing physical AI technologies.

POSCO DX is also expanding the deployment of industrial robots in hazardous and labor-intensive environments. The company said it provides end-to-end robotic automation services covering consulting, design, implementation and operations. Together with POSCO, it has developed a platform for managing heterogeneous robot fleets to optimize robot operations.

The company is also designing optimized robotic systems through simulation technologies and developing Vision-Language-Action (VLA) models for humanoid and other mobile robots to improve locomotion and manipulation capabilities.

As examples of practical deployment, POSCO DX highlighted robots that remove impurities from molten zinc baths in galvanizing processes, robotic band cutters used in cold rolling operations and automated guided vehicles (AGVs) capable of transporting steel products weighing up to 65 metric tons. The company is also deploying robotic systems for raw material sampling and logistics automation at plants producing environmentally friendly materials and automotive components.

For office and management functions, POSCO DX is promoting agentic AI through its proprietary Agentee platform. According to the company, Agentee manages the entire lifecycle of AI agents—from recruitment and evaluation to development, promotion and retirement—in a manner similar to managing human employees. The platform enables domain-specific "AI employees" to automate office and business operations.

POSCO DX said its AX consulting services first analyze customer workflows to determine how responsibilities should be divided between employees and AI agents. Based on those workflows, Agentee either creates customized AI agents or reuses existing ones. The company said the platform standardizes every stage from design to deployment, enabling rapid development of enterprise AI agents.

POSCO DX demonstrated several internal use cases, including finance, human resources, labor management and project management. In one example, an AI agent automates monthly pre-closing financial risk inspections by scanning all accounting accounts, identifying abnormal entries and missing journal records, and generating risk reports. The process, which previously required about three hours, now takes approximately one minute. The company estimates that expanding AI agents across all financial closing activities could improve productivity by at least 30%.

POSCO DX currently operates approximately 200 AI agents across its own organization and other POSCO Group companies. It plans to establish standardized AI agent models for the group before commercializing the validated platform for external customers.

The company said it is the only domestic provider with full-stack capabilities spanning operational technology (OT) on factory floors and enterprise information technology (IT) systems.

"Leveraging our expertise across both industrial operations and office environments, we aim to become the company best positioned to deliver physical AI and agentic AI services by integrating advanced AX technologies," POSCO DX said.

At the same briefing, Kim Byung-seok, head of the AI Workforce Task Force at POSCO DX, presented the company's agentic AI strategy.

Separately, POSCO Group has adopted a Mission-oriented AI Transformation (AX) strategy centered on three pillars—process, work and value—to accelerate AI adoption across the group.

At the POSCO CEO Investor Day held on July 2, the group unveiled its Triple-Core growth strategy spanning industrial resources (steel), strategic resources (including lithium, cathode and anode materials, and rare earth elements) and energy resources (LNG and renewable energy). The group also announced plans to expand into physical AI for process industries by leveraging decades of experience in factory automation, intelligent manufacturing and large-scale industrial data.

The POSCO CEO Investor Day is the group's annual investor relations event, where the chairman and senior executives present long-term growth strategies, future business plans and financial targets to shareholders, institutional investors and securities analysts.

Autonomous trucking startup Mars Auto has signed a memorandum of understanding with the Korea Post Logistics Support Foundation and logistics company Logisquare to accelerate the adoption of autonomous driving technologies for commercial freight transportation. The partnership will expand paid autonomous freight services within Korea Post's logistics network while using real-world driving data to enhance the company's end-to-end (E2E) autonomous driving AI model.

The three-way agreement is part of the South Korean government's national AI initiative, "Software-Defined Vehicle (SDV) Transformation and AI-Based End-to-End Autonomous Driving Model Advancement." In November last year, Mars Auto was selected by the Ministry of Trade, Industry and Resources and the Korea Evaluation Institute of Industrial Technology (KEIT) to lead a project developing E2E AI-based autonomous freight transportation technology for heavy-duty trucks. The project has a total budget of 18.2 billion won and is being carried out by a consortium of 13 organizations, including the Korea Post Logistics Support Foundation and Logisquare.

Under the partnership, Mars Auto will install its Copilot autonomous driving system on postal freight vehicles operated by the Korea Post Logistics Support Foundation, while Logisquare will oversee operations for autonomous commercial freight routes. By collecting diverse real-world driving data from heavy-duty truck drivers, the partners aim to improve E2E AI performance while increasing operational efficiency and safety through fuel savings of more than 10% and reduced driver fatigue during long-distance and nighttime operations.

Postal freight vehicles equipped with Mars Auto's Copilot system will operate on major highways and local roads connecting 22 regional mail processing centers and approximately 3,700 post offices across South Korea. Because the system is not limited to a specific vehicle manufacturer or truck model, it can collect driving data from a broad range of commercial vehicles. The data will be transmitted in real time over SK Telecom's wireless network to the National AI Project training infrastructure located in Yeongdeungpo, Seoul. Copilot has already been installed on 20 postal freight vehicles, with additional deployments planned.

Mars Auto's autonomous driving technology relies on AI and camera-based sensors rather than LiDAR or high-definition (HD) maps. The company believes the quantity and quality of real-world driving data are critical to improving AI performance and said the partnership will support its goal of commercializing Level 4 fully autonomous driving.

Separately, on July 20, Mars Auto became the first company in South Korea to receive government approval to launch an autonomous trailer business under the Ministry of Land, Infrastructure and Transport's mobility regulatory sandbox program.