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South Korea’s stock exchange chief defends slow start to corporate reform drive

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South Korea’s stock exchange chief defends slow start to corporate reform drive

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The head of South Korea’s stock exchange, Jeong Eun-bo, has defended his country’s stalling corporate reform drive amid disappointment among local and foreign investors that Seoul is failing to replicate Tokyo’s success in boosting historically low valuations.

South Korean regulators and political leaders have spent much of this year promoting their “Corporate Value-up” initiative, which includes a new index highlighting companies that have improved capital efficiency, as well as tax incentives for businesses that prioritise shareholder returns.

But just 1 per cent of South Korea’s 2,600 listed companies have signed up or committed to signing up to the programme since it was announced in February, with leading industrial groups including Samsung and chips-to-batteries conglomerate SK Group yet to announce plans to participate.

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“The Corporate Value-up programme was a politically designed stop-gap measure designed to appease local retail investors ahead of parliamentary elections earlier this year, but it ended up as a total failure,” said Park Ju-geun, head of Seoul-based corporate research group Leaders Index.

But Jeong, chief executive of Korea Exchange, which operates the Kospi and Kosdaq indices, told the Financial Times that momentum would build behind the initiative as the country’s biggest conglomerates joined.

Carmaker Hyundai Motor said last month it would set new total shareholder return and share buyback targets as it announced its participation, while electronics group LG and steel-to-battery materials conglomerate Posco are also expected to announce plans to join.

“Korea has a strong naming and shaming culture,” said Jeong. “If leading companies join the Corporate Value-up programme, others are bound to follow suit.” He added that Samsung, South Korea’s largest industrial group, had privately communicated to him their intention to sign up for the voluntary programme by the end of this year.

But he also argued that the role Tokyo’s corporate governance drive played in powering the Nikkei 225 index to historic highs this year had been “exaggerated”. The revival of the Tokyo bourse was attributable principally to a recovery in Japan’s underlying industrial competitiveness, he said.

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Blaming a lack of innovation at South Korea’s main industrial groups for their low valuations, he said companies such as Samsung needed to address what he described as “rational” investor concerns about their intrinsic value. Shares in Samsung Electronics hit a 52-week low on Wednesday.

“Our stock prices have not risen enough compared with other major countries, but this is a matter of our industries’ growth potential,” said Jeong. “The key is how each company invests and innovates, and there is not much the Korean authorities can do about this.”

Defying expectations that South Korea would benefit from western money flowing out of China and the diminishing opportunities to invest in undervalued companies in Japan, there was a net outflow of $5.5bn from the South Korean stock market in the first half of 2024, with South Korean holdings in US stocks increasing 26.2 per cent over the same period.

About two-thirds of companies listed on the Kospi benchmark trade at a price-to-book ratio of less than one, meaning the market values them below the stated worth of their net assets. Many analysts blame a legal and regulatory framework designed to protect the founding families of industrial groups at the expense of minority shareholders.

With more South Korean retail investors getting involved in the stock market since the coronavirus pandemic, the “Korea discount” of chronic undervaluations has become more of a political issue. The national pension fund — the largest buyer of South Korean stocks — is also being hit, at a time when it is projected to run out of money in the 2050s because of a shrinking population.

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Jeong said Corporate Value-up would help improve valuations by helping investors access better information about company plans to improve capital efficiency and shareholder returns. He added that South Korean authorities were providing stronger tax incentives than those on offer in Japan.

But Park of Leaders Index said for serious progress to be made, South Korea needed to impose on board members a legal duty to uphold the interests of shareholders.

“South Korean corporate governance is still not transparent, and minority shareholders are still routinely mistreated,” he said. “Without a fiduciary duty to shareholders, the authorities cannot credibly argue they have done everything they can.”

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Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

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Under Trump, Green Card Seekers Face New Scrutiny for Views on Israel

For decades, immigrants who have followed the rules and have not broken the law have had hopes of earning a green card, a document that allows them to live legally in the United States and gain a path to citizenship.

But under new guidance issued by the Trump administration, immigrants can now be denied a green card for expressing political opinions, such as participating in pro-Palestinian campus protests, posting criticism of Israel on social media and desecrating the American flag, according to internal Department of Homeland Security training materials reviewed by The New York Times.

The documents, which have not been previously reported, show how expansively the Trump administration is carrying out a directive from last August to vet green card applicants for “anti-American” and “antisemitic” views.

The administration includes criticism of Israel as a potentially disqualifying factor, with the training materials citing as an example of questionable speech a social media post that declares, “Stop Israeli Terror in Palestine” and shows the Israeli flag crossed out.

The materials were distributed last month to immigration officers at U.S. Citizenship and Immigration Services, which is part of the Department of Homeland Security and handles applications for green cards and other forms of legal status.

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They reflect how U.S.C.I.S. — long considered the gateway agency for legal migration — has rapidly transformed under President Trump into another cog in his administration’s deportation machine. The agency has worked to strip naturalized Americans of their citizenship and has hired armed federal agents to investigate immigration crimes.

The administration is also granting permanent legal residency to far fewer applicants. Green card approvals have fallen by more than half in recent months, according to a Times analysis of agency data.

“There is no room in America for aliens who espouse anti-American ideologies or support terrorist organizations,” Joseph Edlow, the agency’s director, told Congress in February.

Critics of Mr. Trump’s approach say the administration is seeking to restrict legitimate political speech, and has conflated opposition to Israeli government policies with antisemitism.

Basing green card decisions on “ideological screenings is fundamentally un-American and should have no place in a country built on the promise of free expression,” said Amanda Baran, a senior agency official under President Joseph R. Biden Jr.

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Administration officials said they were defending American values.

“If you hate America, you have no business demanding to live in America,” said Zach Kahler, a spokesman for U.S.C.I.S.

Abigail Jackson, a White House spokeswoman, said the administration’s policies had “nothing to do with free speech” and were meant to protect “American institutions, the safety of citizens, national security and the freedoms of the United States.”

The administration has moved aggressively against immigrants for expressing political views that officials have deemed anti-American, making ideology a central part of its immigration vetting process. Secretary of State Marco Rubio has revoked the visas of pro-Palestinian student activists, including one who wrote a column criticizing her university’s response to pro-Palestinian demands.

The Department of Homeland Security has proposed reviewing the social media histories of tourists seeking to visit the United States.

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Immigration officers have significant discretion in deciding whether to grant foreigners long-term permanent residence. They have long considered a variety of factors, including criminal records, national security threats, family ties to the United States and employment histories.

Ideology has also traditionally been one of those factors. In some cases, U.S. law forbids officers from granting green cards to people who have belonged to a Communist or other “totalitarian” political party, have promoted anarchy or have called for the overthrow of the U.S. government by “force or violence or other unconstitutional means.”

But in the past, immigration officers have focused on statements that could incite or encourage violence, given concerns about infringing on constitutionally protected speech, former U.S.C.I.S. officials said.

The new training materials reviewed by The Times guide immigration officers through the factors they should consider when ruling on green card applications. They discourage officers from granting green cards to people with a history of “endorsing, promoting or supporting anti-American views” or “antisemitic terrorism, ideologies or groups.”

Immigration officers have been told to weigh those factors as “overwhelmingly negative.”

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The documents list support for “subversive” ideologies as among other factors that could lead to an application being rejected. As an example, the materials point to someone “holding a sign advocating overthrow of the U.S. government.”

In addition, the guidance describes the desecration of the American flag as a negative factor, citing Mr. Trump’s executive order last year directing the Justice Department to prosecute protesters who burn the flag. The Supreme Court has ruled that flag burning is a form of political expression protected by the First Amendment.

Immigration officers have also been told to scrutinize applicants who encourage antisemitism “through rhetorical or physical actions.” They were instructed to “focus particularly on aliens who engaged in on-campus anti-American and antisemitic activities” after the Hamas attacks against Israel in 2023, the documents show.

Further examples in the documents of conduct characterized as antisemitic include a social media post showing a map of Israel with the nation’s name crossed out and replaced with the word “Palestine.” Another illustrative post suggests that Israelis should “taste what people in Gaza are tasting.”

Immigration officers must elevate all cases involving “potential anti-American and/or antisemitic conduct or ideology” to their managers and to the agency’s general counsel’s office for review, according to the documents.

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In recent months, the agency has also changed the way it refers to the employees who adjudicate green card applications, long known as “immigration services officers.” In job postings, it now calls them “homeland defenders.”

“Protect your homeland and defend your culture,” one posting says.

Steven Rich contributed reporting.

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America’s bid for energy supremacy is being forged in war

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America’s bid for energy supremacy is being forged in war

Additional work by Jana Tauschinski

Oil and gas tanker location and destination data are from Kpler. The map shows the latest position for vessels with an active AIS signal on April 19–20, filtered by minimum capacity thresholds: crude tankers of at least 50,000 deadweight tonnage (DWT); oil product tankers of at least 55,000 DWT; oil/chemical tankers of at least 40,000 DWT; LNG carriers of at least 150,000 cubic metres; and LPG carriers of at least 50,000 cubic metres. Net fossil fuel import data by country are based on Ember analysis of the IEA World Energy Balances 2023.

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Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

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Roommate faces murder charges in deaths of 2 University of South Florida doctoral students

A 26-year-old man is facing two counts of first-degree murder in the deaths of two University of South Florida doctoral students who went missing last week, local authorities said Saturday. 

The Hillsborough County Sheriff’s Office in Florida said that evidence presented to the state attorney’s office resulted in the charges against Hisham Abugharbieh, the roommate of Zamil Limon, one of the doctoral students. 

Abugharbieh is accused of premediated murder with a weapon. He was arrested on Friday, the same day Limon was found dead. 

The family of Nahida Bristy, the other doctoral student, told CBS News that police said she is also likely dead. That is based on the volume of blood discovered at Abugharbieh’s residence, which he shared with Limon.

“Police told us she is no longer with us,” Bristy’s brother, Zahid Prato, said early Saturday.

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The family was told her body may never be found and police believe she may have been dismembered, according to Prato. 

CBS News has reached out to police for more information.

Authorities said in a statement Saturday they were still searching for Bristy.

Limon’s remains were found on the Howard Franklin Bridge in Tampa Friday morning, Chief Deputy Joseph Maurer with the Hillsborough County Sheriff’s Office said. His cause of death was pending autopsy results.

Deputies with the sheriff’s office took Abugharbieh into custody on Friday after responding to a domestic violence call at a home in the Lake Forest Community, a neighborhood near USF’s Tampa campus, officials said. He also faces charges of domestic violence and evidence tampering, as well as a charge of failing to report a death to law enforcement.

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Limon and Bristy, both 27, had last been seen in the Tampa area on April 16. 

Limon was studying the use of AI in environmental science and was set to present his doctoral thesis this week, his family said. Bristy is studying chemical engineering. 

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