AI startup Upstage issued an official statement on May 20 over controversy surrounding the disposal of shares by Ha Jung-woo, the Democratic Party candidate in a Busan by-election. Upstage said it wanted to correct facts to avoid unfounded speculation. It said Ha served as a non-standing adviser in AI education in 2021 and received 10,000 shares at par value with a six-year holding requirement. Upstage said 5,556 shares were placed in a blind trust and 4,444 shares were automatically returned to CEO Kim Sung-hoon at 100 won each.

Pressure from the government to expand inclusive finance is spreading across the financial sector, deepening banks’ 고민. Financial firms agreed to sell bonds held by a private bad bank after President Lee Jae-myung criticised long-term debt collection. Regulators plan to expand policy lending for lower-credit borrowers and launch an inclusive finance task force. Banks warn expanded lending could raise delinquency risks, increase provisions and add to losses tied to policy finance programmes.