AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kim Hee-su
Kim Hee-su김희수
ReporterMinistry of Foreign Affairs, Seoul City Hall & Defense, Foreign Affairs
Kim Hee-su is a bilingual reporter at AJU Press, covering defense and foreign affairs. Before joining AJP in 2025, she worked at The Korea Times, where she wrote interview stories, including a profile of North Korean defector Kim Gum-hyok, and produced digital content. She also previously worked as a researcher for KBS News 9’s International News Department, supporting correspondents in 10 countries around the world. She graduated from the University of Toronto in Canada with a double major in Book and Media Studies and East Asian Studies. "I'm driven by storytelling."
Latest by Kim Hee-su
  • Incheon Airport to open departure gates early during summer peak
    Incheon Airport to open departure gates early during summer peak SEOUL, July 22 (AJP) - South Korea will open some departure gates at Incheon International Airport earlier and increase immigration screening staff during the peak summer travel season, the Ministry of Justice said Wednesday. The special immigration measures will be in place from Thursday through Aug. 8, as the country enters one of the busiest periods for overseas travel. At Terminal 1, departure gate No. 2 will open at 5:30 a.m., while departure gate No. 4 will open at 6 a.m. At Terminal 2, departure gate No. 2 will open at 5 a.m. Immigration officers will also begin work earlier to ease passenger congestion. The number of screening staff at Terminal 1 will be increased to 32 from 24, while Terminal 2 will have 20 officers, up from 14. The ministry said personnel from other departments will also be assigned to support immigration screening during the peak period. Families traveling with minors will also be allowed to register for automated immigration clearance at departure gates during the summer season. Previously, minors had to visit an immigration service center outside the departure area to register for the service. Justice Minister Jung Sung-ho said the ministry would mobilize its screening capacity to ensure that Korean nationals using Incheon Airport during the summer peak season do not face inconvenience during immigration procedures. 2026-07-22 16:26:33
  • Seoul to add ferries for summer island travel rush
    Seoul to add ferries for summer island travel rush SEOUL, July 22 (AJP) - South Korea will deploy seven additional reserve vessels and expand domestic ferry operations during the peak summer vacation season, as more than 855,000 passengers are expected to travel by sea to islands and coastal destinations, the Ministry of Oceans and Fisheries said Wednesday. The special transport measures will run from Saturday through Aug. 10. The ministry expects about 50,000 passengers a day to use coastal passenger ferries during the period, with demand projected to peak on Aug. 1 at around 71,000 passengers. Coastal passenger ferries in Korea refer to domestic passenger ships that operate between Korean ports, often linking mainland terminals with island destinations such as Jeju, Ulleungdo and Baengnyeongdo. They serve both tourists and island residents, for whom ferries are often an essential form of public transportation. To meet seasonal demand, the ministry will add seven reserve ferries and raise the number of sailings to 13,507, up 6.8 percent from regular levels. The summer measures come as domestic ferry demand has stabilized after several years of decline. According to the Korea Maritime Transportation Safety Authority, 12.6 million passengers used domestic passenger ferries in 2025, nearly unchanged from 12.63 million a year earlier, marking the first slowdown in the decline that began after 2022. Major tourist routes remain concentrated on Jeju and the western islands. In 2025, the Mokpo-Jeju route carried 677,000 passengers and the Jeju-Wando route 633,000, while the Incheon-Ijak and Incheon-Baengnyeong routes posted some of the largest year-on-year increases, with 279,000 and 277,000 passengers, respectively. During last year’s summer holiday transport period, the most heavily used routes were Jeju-bound services from Mokpo, Wando and Samcheonpo, which carried about 146,000 passengers. The Jeju routes benefited from the relative stability of car-ferry services, which are less affected by weather disruptions than smaller vessels. The ministry also plans to improve passenger convenience by adding Kakao Pay and an artificial intelligence chatbot to the ferry reservation website operated by the Korea Shipping Association. Ferry departure and arrival times, as well as information on whether vessels are expected to operate the following day, will be provided through the KOMSA website. 2026-07-22 14:57:35
  • HMM Q2 profit seen jumping 80% on higher container freight rates: report
    HMM Q2 profit seen jumping 80% on higher container freight rates: report SEOUL, July 22 (AJP) - HMM is expected to report a sharp improvement in second-quarter earnings as stronger container freight rates offset higher fuel costs, Shinhan Investment & Securities said Wednesday. The brokerage estimated HMM’s second-quarter revenue at 3.28 trillion won ($2.21 billion), up 25 percent from a year earlier, and operating profit at 420.6 billion won, up 80.4 percent. The estimate is also higher than the market consensus of 346.3 billion won in operating profit. “Container freight rates rose more than expected in the second quarter,” Shinhan analyst Choi Min-ki said in the report. Shinhan said the average Shanghai Containerized Freight Index reached 2,337 points in the quarter, up 42 percent from a year earlier, while the China Containerized Freight Index rose 16 percent to 1,350 points. The increase was driven largely by stronger cargo demand ahead of U.S. tariff changes in July, as companies rushed to ship inventories before the new measures took effect. Improved market conditions on routes to the Americas, which account for about one-third of HMM’s cargo volume, also supported earnings, the report said. Shinhan said HMM’s bulk business also remained solid, with both dry bulk and tanker markets showing firm conditions. Although average bunker fuel prices rose 44 percent, the brokerage said higher freight rates likely offset the added fuel burden. The brokerage raised its 2026 earnings forecast for HMM, projecting annual revenue of 12.81 trillion won, up 17.6 percent from a year earlier, and operating profit of 1.75 trillion won, up 19.8 percent. The new operating profit estimate is 75.9 percent higher than Shinhan’s previous forecast. Shinhan said the impact of higher container shipping rates could be reflected more strongly in the third quarter than in the second quarter, given the usual one- to one-and-a-half-month lag between market freight rates and revenue recognition. However, the report said spot freight rates are likely to show a “high first half, low second half” pattern, as peak-season cargo demand was pulled forward earlier than usual. Some European shipping companies have shown signs of resuming services through the Suez Canal, but Shinhan said a full-scale return to the route could be delayed following renewed blockade threats by Yemen’s Houthi rebels. Despite the improved earnings outlook, Shinhan maintained its Neutral rating on HMM without presenting a target price. The brokerage said the stock has remained sluggish due to concerns over excess container ship supply from accumulated new vessel orders. The report said HMM is focusing its cash holdings on fleet investment rather than one-off shareholder returns, while seeking to improve earnings stability by expanding the share of long-term contracts. 2026-07-22 09:44:40
  • Korea to Play Key Role in Indias Shipbuilding Mission, Says Ambassador Lee
    Korea to Play Key Role in India's Shipbuilding Mission, Says Ambassador Lee Lee Sung-ho, South Korea's Ambassador to India, predicted that Korea will play a key partnership role in India's shipbuilding industry development strategy. Following the Korea-India summit in April, the two countries agreed to expand cooperation in shipbuilding, shipping, and maritime logistics, raising expectations that economic collaboration could lead to concrete industrial partnerships starting with large shipbuilding projects.During a forum hosted by the Korea-India Future Association in Seoul on July 21, Ambassador Lee stated, "I believe we will participate as an important partner in India's shipbuilding mission."The forum, chaired by Shin Bong-gil, former Ambassador to India, focused on India's political and economic environment and future tasks for economic cooperation between the two countries.Ambassador Lee explained that while India has focused on developing its semiconductor industry, it has recently identified shipbuilding as a core strategic industry. He noted, "The areas that India feels the most need to push forward are the semiconductor mission and the shipbuilding mission, with shipbuilding currently being the most emphasized field."He added, "India has a long coastline and significant export and import volumes, but it currently lacks the capacity to build large container ships. To change this, India is pursuing a national shipbuilding mission with a target year of 2047."Ambassador Lee indicated that India views Korea as its most promising partner in this endeavor. He remarked, "India believes that Korea is the country that can best assist them and is actively seeking our cooperation. Fortunately, Korean companies are also showing interest in the shipbuilding sector."He further stated, "If large shipbuilding projects are realized, they will become signature projects of Korea-India cooperation, potentially opening a second wave of Korean corporate investment following the first wave led by Samsung, LG, Hyundai, and Kia in the 1990s."Ambassador Lee emphasized that such signature projects would symbolize the strategic closeness between Korea and India and could provide new investment opportunities for small and medium-sized enterprises in Korea that have viewed India with skepticism.He stressed that future cooperation between the two countries should expand beyond shipbuilding to include sectors such as secondary batteries and strategic manufacturing, which are essential for India's industrial transition.He stated, "From India's perspective, what is most needed from Korea is economic and strategic investment. If such investments are connected through supply chains, Korea could emerge as a strategic partner on par with Japan and the United States in the 'Make in India' initiative."These remarks follow the agreement made during the April summit between President Yoon Suk Yeol and Indian Prime Minister Narendra Modi to strengthen cooperation in shipbuilding, shipping, and maritime logistics.At that time, the two countries agreed to pursue the development of large shipbuilding clusters, construction of shipyards, training of maritime professionals, infrastructure development for ports, and cooperation in supply chains for equipment.India aims to become a global shipbuilding powerhouse by 2047 through its 'Maritime Amrit Kaal Vision 2047.' The initial key project involves the construction of an eco-friendly large shipyard in the Tuticorin area of Tamil Nadu, with HD Korea Shipbuilding & Offshore Engineering's participation being discussed.In his speech, Ambassador Lee identified India's rise as one of the most significant changes that Korean diplomacy must strategically respond to. However, he noted that Korea is not yet India's top priority partner.He assessed, "As of 2026, Korea is considered a second-tier partner from India's perspective. While interest and necessity for Korea have grown, countries like the United States, China, Russia, major European nations, Japan, Australia, Canada, and Singapore still form the top tier."He added, "The extent to which Korea actively participates in India's 'Viksit Bharat 2047' national vision over the next 20 years will determine our strategic status. Depending on how closely we accompany India on its journey to becoming a developed nation, Korea may have the opportunity to rise to a top-tier country."Ambassador Lee concluded, "The 20 years from 2026 to 2047 could be the last opportunity for India to strategically need Korea. Korea must approach India more actively, persistently, and strategically than ever before." 2026-07-21 18:04:00
  • Korea eyed as key partner to Indias maritime vision: envoy
    Korea eyed as key partner to India's maritime vision: envoy SEOUL, July 21 (AJP) - South Korea is poised to become a key partner in India's drive to build a globally competitive shipbuilding industry, Seoul's ambassador to New Delhi said Tuesday, describing maritime cooperation as the next flagship project in bilateral economic ties. "We believe Korea will participate as an important partner in India's shipbuilding mission," Ambassador Lee Seong-ho said at a Seoul forum, adding that New Delhi has increasingly turned its attention from semiconductors to shipbuilding as it seeks to transform itself into a developed economy by 2047. Speaking at a forum hosted by the Korea-India Future Association, chaired by former Ambassador Shin Bong-kil, Lee said India has been strategically identifying sectors critical to its industrial development. "India has been strategically pursuing areas where it feels the greatest need, including its semiconductor mission and shipbuilding mission," he said. "The area it is now watching most closely is shipbuilding." Despite its extensive coastline and growing trade, India still lacks the capacity to build large container ships domestically, prompting New Delhi to seek overseas partners with advanced shipbuilding technology. "India believes Korea is the country most capable of helping with this, and it has been persistently reaching out to us," Lee said. "Fortunately, Korean companies are also looking at shipbuilding with interest." He said a major shipbuilding project could become the "signature program" of Korea-India cooperation, paving the way for a second wave of Korean investment following the first generation led by Samsung Electronics, LG Electronics, Hyundai Motor and Kia in the 1990s. While the initial investment wave centered on consumer electronics and automobiles, Lee said future cooperation should focus on industries central to India's industrial upgrading, including shipbuilding, batteries and strategic manufacturing. "If such a signature program is created, it could send a signal that Korea and India are becoming strategically closer," he said. "That could encourage many Korean small and medium-sized companies that have been watching India from the outside but still see it as a difficult market." The remarks build on agreements reached during President Lee Jae Myung's summit with Indian Prime Minister Narendra Modi in April, when the two leaders agreed to deepen cooperation in shipbuilding, shipping and maritime logistics. Under the maritime cooperation framework announced after the summit, India invited Korean shipbuilders to participate as technical and strategic partners in large-scale shipbuilding clusters. The two sides also discussed cooperation in shipyard development, maritime workforce training, port infrastructure and marine equipment supply chains. India is expanding domestic shipbuilding under its Maritime Amrit Kaal Vision 2047, an initiative aimed at elevating the country into the world's top tier of shipbuilding nations by the centenary of its independence. One of the flagship projects is a proposed greenfield mega shipyard in Thoothukudi, Tamil Nadu, involving HD Korea Shipbuilding & Offshore Engineering. Lee said economic and strategic investment represents the greatest opportunity for bilateral cooperation. "For India, what it needs most from Korea is economic and strategic investment," he said. "If these investments become supply-chain links and Korea is recognized as an important partner in Make in India, Korea can rise to become a partner as important as Japan or the United States." Former Ambassador Shin Bong-kil said India is becoming increasingly central to South Korea's diplomatic and economic strategy as its geopolitical and industrial influence expands. Lee argued that India should become South Korea's "fifth major strategic partner" alongside the United States, China, Japan and Russia, but said such a relationship would require deliberate policy rather than happen automatically. "India is a country we must strategically approach and make into Korea's fifth major power," Lee said. "In the 20-year journey from 2026 to 2047, we believe this is virtually the last opportunity in which India still needs Korea." 2026-07-21 17:57:27
  • Seoul assures oil supplies enough, but Houthi risk clouds Q4
    Seoul assures oil supplies enough, but Houthi risk clouds Q4 SEOUL, July 21 (AJP) - Just as Asian economies had adapted to the disruption of the Strait of Hormuz by relying increasingly on Saudi Arabia's Red Sea exports, Yemen's Houthi militants are threatening the Bab el-Mandeb Strait, putting the region's alternative oil lifeline at risk and raising the prospect that the Middle East's two principal oil export corridors could be disrupted simultaneously. The new threat leaves major Asian importers, including South Korea, facing renewed uncertainty after months of longer shipping routes and higher freight costs triggered by the U.S.-Iran conflict. About 70 percent of Saudi crude and petroleum products shipped from the Red Sea export terminal at Yanbu have been destined for Asia since April after Riyadh diverted exports away from the Strait of Hormuz. Any prolonged disruption at Bab el-Mandeb would force tankers to make the far longer journey around Africa's Cape of Good Hope, delaying deliveries and driving up freight costs. South Korea is particularly exposed. Saudi Arabia supplied more than 35 percent of the country's crude imports last year, according to the Korea Petroleum Association. "Saudi Arabia has so far been able to maintain supplies by shipping crude through the Red Sea rather than through the Strait of Hormuz," a Korea Petroleum Association official said. "But if the Bab el-Mandeb is disrupted as well, the available alternatives become much more limited." While Saudi cargoes could theoretically move north through the Suez Canal, the route is ill-suited for the very large crude carriers (VLCCs) that dominate shipments to Asia. The government, however, sought to calm immediate supply concerns. South Korea has enough crude oil supplies to last through September and expects no immediate disruption even if shipping through the Red Sea is halted, the Ministry of Trade, Industry and Resources said Tuesday, as lingering tensions in the Middle East put another major energy shipping route at risk. Refiners have already secured crude for July and August equivalent to more than 110 percent of last year's average import volume, while bookings for September have surpassed 90 percent of imports recorded during the same period a year earlier, according to the ministry. "We have confirmed that there should be no major problem with crude oil supplies through September," said Yang Ki-wook, a senior ministry official. "Even if the Red Sea is blocked, we do not expect any particular difficulty." South Korea appears insulated through September, but the outlook beyond that is less certain. A tanker typically takes about 20 to 23 days to sail from the Gulf to East Asia. Rerouting around Africa's Cape of Good Hope would add another two to three weeks, raising the risk of supply disruptions during the fourth quarter should the conflict persist. Most Middle Eastern crude bound for South Korea is transported aboard VLCCs capable of carrying more than 2 million barrels. When fully loaded, many draw too much water to pass safely through the Suez Canal, requiring cargoes to be transferred to smaller vessels or rerouted through alternative facilities. "Smaller tankers could still use the route, but there are obvious limits to how much they can carry," the Korea Petroleum Association official said. "It's like replacing a large cup with a tiny syrup cup. It may work in an emergency, but moving large volumes that way would be extremely difficult." The Bab el-Mandeb sits at the southern entrance to the Red Sea, linking it to the Gulf of Aden, the Arabian Sea and the Indian Ocean. For tankers leaving Yanbu, it has become the only practical route to Asian customers after shipping through the Strait of Hormuz became severely constrained. Before the U.S.-Iran conflict erupted in late February, Saudi Arabia exported about 7.2 million barrels of crude a day, with nearly 90 percent passing through Hormuz, according to shipping data provider Kpler. The disruption forced Saudi Aramco to shift exports to its East-West Pipeline, which transports crude from eastern oil fields to Yanbu on the Red Sea. Since then, more than 70 percent of Saudi Arabia's normal crude exports have been redirected through Yanbu. Shipments from the port have averaged roughly 4 million barrels a day in recent weeks, more than four times the level recorded during the same period last year. While cargoes bound for Europe continue north through the Suez Canal, exports to Asia must pass south through Bab el-Mandeb, transforming the narrow waterway into Saudi Arabia's critical export gateway to its largest customers. The shift is evident in shipping flows. According to the U.S. Energy Information Administration, an average 5.4 million barrels per day of crude oil and petroleum products transited the Bab el-Mandeb in the first quarter. By June, total petroleum flows through the strait had climbed to 7.4 million barrels a day, equivalent to about 7 percent of global oil production, according to Kpler, up from 4.2 million barrels a day a year earlier. Should the strait become impassable, tankers would have little choice but to sail around Africa, adding thousands of nautical miles and roughly two to three weeks to voyages to Asia. "The impact is going to be massive in the first month," said Matt Smith, commodity research director at Kpler. "The biggest impact is going to be on Saudi flows." Alternative routes offer only limited relief. Besides draft restrictions in the Suez Canal, Egypt's SUMED Pipeline lacks sufficient capacity to absorb the diverted volumes. Brent crude settled $1.12, or 1.3 percent, higher at $89.22 a barrel Monday after touching an intraday high of $91.42, with hopes of renewed negotiations between Washington and Tehran helping temper gains. Analysts warned crude prices could climb to between $115 and $120 a barrel if Houthi attacks were to halt traffic through Bab el-Mandeb for a prolonged period. The latest threat marks another escalation after the collapse of the June ceasefire between Washington and Tehran. Iran has continued to interfere with shipping through the Strait of Hormuz despite U.S. assurances that neutral vessels bound for non-Iranian destinations would not be impeded. 2026-07-21 15:48:41
  • Korean Air says no change to domestic flights despite oil price surge
    Korean Air says no change to domestic flights despite oil price surge SEOUL, July 20 (AJP) - Korean Air said Monday it has made no changes to its domestic flight operations, even as oil prices surged on renewed concerns over disruptions to Middle East energy shipments. “There has been no change,” a Korean Air official told AJP, when asked whether the carrier had reduced domestic flights due to rising fuel costs. “Nothing has been decided.” The official said claims that the airline had cut domestic flights were “not based on confirmation from us,” adding that Korean Air continues to operate a substantial number of domestic services, including on the Gimpo-Jeju route. Fuel costs have risen sharply in recent weeks as the renewed conflict between the United States and Iran has raised fears of further disruptions to oil flows through the Strait of Hormuz, one of the world’s most important energy transit routes. Brent crude rose 2.3 percent to $90.10 a barrel Monday, standing about 30 percent above its July low, as escalating U.S.-Iran hostilities raised concerns over further disruptions to Middle East oil flows. U.S. West Texas Intermediate crude climbed 2 percent to $84.10 a barrel. Brent had jumped 15.9 percent last week, its biggest weekly gain since April. Oil prices extended their rally as U.S.-Iran hostilities escalated over the weekend, with Washington carrying out a ninth consecutive night of strikes against Iran and Kuwait and Bahrain reporting additional Iranian attacks. Reuters reported that shipping through the Strait of Hormuz remained low over the weekend, while both sides have increasingly targeted maritime traffic. The Korean Air official acknowledged that fuel prices have risen but rejected any direct link to domestic flight operations. “Fuel costs have risen a lot,” the official said. “But I don’t see how that is related to domestic routes.” The official also noted that Korean Air’s main business remains international routes, while current domestic operations remain sufficient. The airline’s fuel surcharge for August, announced on July 16, was also lowered by five levels from July, suggesting that the latest oil price surge has not yet translated into higher passenger surcharges. Korean Air has said it operates a substantial number of domestic flights already, including on the Gimpo-Jeju route. 2026-07-20 16:55:55
  • Hanwha Philly Shipyard takes shape as first MASGA milestone
    Hanwha Philly Shipyard takes shape as first MASGA milestone SEOUL, July 20 (AJP) - Hanwha Philly Shipyard, the centerpiece of the South Korea-U.S. shipbuilding partnership under MASGA (Make American Shipbuilding Great Again), is taking shape as a milestone contract from the U.S. Missile Defense Agency transforms the once-overlooked yard into a test bed for deeper defense-industrial cooperation between the two allies. The Philadelphia-based shipyard, acquired by Hanwha Group for about $100 million in 2024, has been selected to build Missile Range Instrumentation Vessels (MRIVs) for the U.S. Missile Defense Agency. The specialized ships will track missile tests and collect flight and telemetry data, supporting Washington's expanding missile defense network and President Donald Trump's Golden Dome missile defense initiative. The award represents far more than a shipbuilding contract. It is the clearest sign yet that Washington is beginning to integrate South Korea's globally competitive shipbuilding expertise into efforts to rebuild America's strained maritime industrial base while remaining within U.S. domestic production rules. The project also illustrates the contrasting strengths Hanwha brings to the partnership. In South Korea, Hanwha Ocean operates one of the world's largest and most advanced shipbuilding complexes in Geoje. Spanning roughly 4.9 million square meters, the yard houses the world's largest one-million-ton dry dock and a 900-ton Goliath crane, enabling construction of everything from LNG carriers and 23,000-TEU container ships to offshore platforms, destroyers and submarines. It is also the world's largest builder of very large crude carriers (VLCCs). Hanwha Philly Shipyard is considerably smaller. Located within Philadelphia's historic Navy Yard, the 47.8-hectare (110-acre) facility has traditionally focused on commercial shipbuilding and maintenance, repair and overhaul (MRO). It nevertheless possesses one of the largest graving docks in the United States, measuring 332.8 meters long and 45.7 meters wide, supported by a 660-ton gantry crane capable of assembling ultra-large vessel blocks. Despite its relatively modest size, the yard has built roughly half of all large oceangoing Jones Act commercial vessels delivered in the United States since 2000, giving Hanwha an established American manufacturing platform that few foreign shipbuilders can match. The timing is significant as shipbuilding has rapidly emerged as one of the fastest-moving areas of defense-industrial cooperation between Seoul and Washington. The United States faces mounting pressure to expand naval production as prolonged military commitments, rising competition with China and growing missile defense requirements expose the limits of its shipbuilding capacity. The issue has reached the highest political level. During last month's G7 summit, President Donald Trump asked President Lee Jae Myung whether South Korea could quickly build 10 warships for the United States. The subject surfaced again when the two leaders met on the sidelines of the NATO summit earlier this month. Trump has also publicly identified South Korean shipbuilders as potential partners in revitalizing U.S. naval production. "We're going to probably look at some of these companies that are coming in from South Korea and other places," Trump said during a recent defense event in Pennsylvania. The Pentagon has already begun laying the groundwork. Earlier this month, the U.S. Navy sent requests for information to South Korea's leading shipbuilders covering combat ships and medium replenishment oilers. HD Hyundai Heavy Industries and Hanwha Ocean received requests related to combat vessels, while Samsung Heavy Industries joined the two companies in responding to a separate inquiry involving replenishment oilers. Against that backdrop, Hanwha's MRIV contract is widely viewed as an early test case for how South Korean shipbuilders could participate in future U.S. naval programs without directly building warships overseas. U.S. law generally requires Navy warships and critical hull components to be built domestically, limiting the role of foreign shipyards. Hanwha Philly Shipyard, however, operates with American workers, suppliers and production facilities, allowing projects there to satisfy domestic-content requirements while drawing on Korean engineering expertise and management. Philadelphia itself is also becoming an increasingly important defense manufacturing hub. According to The Wall Street Journal, JPMorgan Chase will provide $24 million through investments, loans and grants to support submarine manufacturing and workforce development in Philadelphia. Part of the funding will help Rhoads Industries, a supplier to General Dynamics Electric Boat, build a new submarine manufacturing facility. Local media report that Rhoads Industries and General Dynamics Electric Boat have secured a 10-year, $2.5 billion agreement supporting U.S. Navy submarine construction and approximately 1,350 jobs through 2035. Separately, Hanwha Philly Shipyard has received about $1.5 billion in National Security Multi-Mission Vessel orders, supporting more than 2,000 jobs and reinforcing the Navy Yard's emergence as one of Washington's priority maritime industrial centers. According to U.S. naval industry media, the missile-tracking vessels will use the existing hull design and production line developed for the National Security Multi-Mission Vessel program, allowing the Missile Defense Agency to accelerate production without developing an entirely new platform. U.S. Office of Management and Budget Director Russell Vought described the Philadelphia yard as a "hot production line," saying the project would leverage Hanwha Philly Shipyard's experienced workforce to support both the Missile Defense Agency and Trump's Golden Dome initiative. Industry officials believe the award could help Hanwha establish a critical track record in U.S. defense shipbuilding as it seeks to expand the Philadelphia yard's role beyond commercial ships and government support vessels. The company has already expressed interest in future U.S. Navy programs involving auxiliary vessels and, eventually, combat ships. It has also announced plans to expand production capacity at the Philadelphia facility. Analysts caution, however, against viewing the MRIV award as a direct step toward building the 10 warships mentioned by Trump. The missile-tracking vessels are specialized support ships rather than destroyers, frigates or other frontline combatants. The Philadelphia yard would also require substantial investment in facilities, equipment and workforce before it could undertake large-scale naval ship construction. Congress could prove another obstacle. According to Defense News, the Senate Armed Services Committee's version of the fiscal 2027 defense authorization bill would limit presidential authority to approve construction of U.S. Navy vessels at foreign shipyards. The proposal would permit no more than two vessels per class to be built at allied shipyards and only for limited categories of auxiliary vessels, including fuel tankers and roll-on/roll-off ships. Even so, the Philadelphia project offers perhaps the strongest example yet of a model Washington increasingly appears willing to embrace: combining South Korea's shipbuilding technology, engineering know-how and capital with American production facilities, suppliers and workers. Ryu Yeon-seung, director of the Institute for Defense Industrial Security, said Korean companies should pursue a broader role beyond hull construction. "If a ship designed by Korea is adopted, Korean-made components should be included as much as possible," Ryu said. "That can naturally lead to maintenance, repair and overhaul because MRO also involves replacing those components." For South Korea, the project strengthens its position in broader defense-industrial negotiations while opening opportunities for Korean equipment suppliers throughout the naval supply chain. For the United States, it provides a practical way to reinforce an overstretched shipbuilding base without relying exclusively on existing domestic defense contractors. The project also aligns with broader bilateral investment commitments. According to the White House, Hanwha Ocean has invested $70 million in U.S. maritime manufacturing. Under the joint fact sheet released after the Trump-Lee summit in November 2025, South Korea pledged $150 billion in U.S. shipbuilding investments and an additional $200 billion in other strategic sectors, making maritime cooperation one of the largest pillars of the allies' expanding economic and security partnership. 2026-07-20 15:47:49
  • Prolonged US-Iran war may boost Korean missile defense exports: report
    Prolonged US-Iran war may boost Korean missile defense exports: report SEOUL, July 20 (AJP) - A prolonged war between the United States and Iran could create fresh export opportunities for South Korea’s missile defense systems, as Gulf countries face shrinking interceptor stockpiles and sustained Iranian missile attacks, a South Korean brokerage said Monday. DS Investment & Securities said in a report that a ceasefire memorandum between Washington and Tehran had effectively collapsed after just three weeks, with both sides returning to high-intensity missile, drone and air attacks. “Both sides have no clear definition of ‘victory’ and no viable exit strategy,” analyst Kang Tae-ho said in the report. “Missile-based airstrikes and exchanges are therefore likely to continue for the time being.” Iran has stepped up attacks on countries hosting major U.S. military assets, including Bahrain, Kuwait and Jordan. The conflict escalated further after an Iranian missile and drone attack on a U.S. base in Jordan left two American service members dead and another missing. Tehran has said the U.S. violations rendered the memorandum ineffective and vowed to continue its attacks. Washington, for its part, is expected to intensify strikes against the leadership, command facilities and assets of Iran’s Islamic Revolutionary Guard Corps following the deaths of U.S. troops. However, DS Securities said a broader U.S. escalation would carry significant political and economic risks. The report estimated that the direct and indirect costs of the war had already exceeded $100 billion, while about 70 percent of Americans support ending the conflict. The prolonged conflict is also drawing greater attention to South Korea’s defense industry, particularly its missile defense systems, as Gulf countries look to replenish interceptor stockpiles and bolster defenses against sustained Iranian attacks. Iran has expanded its attacks beyond military installations to critical civilian infrastructure, including power generation and desalination facilities in Kuwait. The report also said Patriot interceptor missile stocks are running low, weakening the ability of countries targeted by Iranian ballistic missiles to maintain high interception rates. “The depletion of interceptor stocks is creating replacement demand for air defense systems and a favorable environment for discussions on the introduction of the Cheongung-II and L-SAM,” Kang said. The report identified potential opportunities for additional Cheongung-II purchases in Saudi Arabia, while pointing to possible L-SAM demand in Saudi Arabia, the United Arab Emirates and Iraq. Kuwait and Qatar were also cited as potential markets for the Cheongung-II system. South Korean defense companies could benefit from their ability to offer layered air defense systems covering both medium- and long-range threats, the report suggested. DS Securities selected LIG Defense & Aerospace and Hanwha Aerospace as its top defense-sector picks, reflecting expectations that the prolonged conflict and shrinking interceptor inventories will support further export momentum for South Korean missile defense systems. 2026-07-20 11:07:07
  • Eased fuel surcharges boost overseas bookings, but keep travelers on short-haul trips
    Eased fuel surcharges boost overseas bookings, but keep travelers on short-haul trips SEOUL, July 16 (AJP) - South Koreans are booking more overseas trips as falling jet fuel prices ease airline surcharges, but demand remains concentrated on nearby destinations as the weak won and high travel costs keep them tightening their purse strings. The country's flagship carrier Korean Air on Thursday said that its international fuel surcharge for tickets issued in August will fall five levels, from Level 19 in July to Level 14. The airline will charge between 35,200 won (US$24) and 259,200 won each way, depending on the distance, down from between 46,400 won and 344,000 won in July. For routes to New York, Boston and Atlanta, the surcharge on a round-trip ticket will fall by 169,600 won to 518,400 won. On shorter routes, such as Fukuoka in Japan and Qingdao in China, the round-trip charge will decline by 22,400 won to 70,400 won. The reduction reflects a decline in the average price of Singapore jet fuel, the benchmark used by South Korean airlines. The average fell 16.2 percent to $119.06 per barrel between June 16 and July 15, from $142.09 during the previous calculation period. A Korean Air staffer said ahead of the announcement that fuel surcharges are determined based on the average price through the 15th of each month, rather than daily fluctuations in international oil prices. August will mark the third consecutive monthly reduction since fuel surcharges reached a record-high Level 33 in May. Even after falling to Level 14, the August charges will remain roughly twice as high as those imposed in March, before the impact of the U.S.-Iran war was fully reflected in aviation fuel prices. The lower surcharges are already showing signs of stimulating overseas travel demand. Budget travel agency Yellow Balloon Tour said bookings for overseas package tours departing in July and August increased 61.2 percent after the July fuel surcharge reduction was announced. It compared bookings made between June 16 and July 9 with those made between May 23 and June 15. Japan recorded the largest increase, with bookings surging 174.5 percent. Viet Nam followed with a 73.4 percent increase, while bookings for China rose 62.5 percent. Seoul-based Yellow Balloon Tour said demand was concentrated on destinations with relatively short flight times and lower overall costs. Hokkaido, Kyushu and Osaka were the most popular Japanese destinations, while Da Nang, Nha Trang and Phu Quoc led bookings for Viet Nam. The figures suggest that lower fuel surcharges are acting as a trigger for travelers who had postponed making reservations because of higher costs. However, the strongest response has come from short-haul travel, where the actual reduction in fuel surcharges is smaller than on long-distance routes. The immediate impact of the August reduction on peak summer passenger numbers may also be limited, as many travelers have already booked their flights. "July and August see the largest number of passengers, but many of them have already purchased their tickets," a Korean Air official said. The trend reflects a broader shift among South Korean travelers toward shorter, more frequent and value-conscious trips in 2026. A Booking.com survey of 32,800 travelers worldwide including 800 South Koreans, found that Korean respondents traveled within Asia an average of 1.95 times, compared with the global average of 1.38 times. The company described the pattern as a preference for traveling “short and often” rather than taking a single extended trip. The won has recently strengthened to below 1,500 against the dollar but remains weak, with the exchange rate standing at around 1,478 won per dollar on Thursday. The exchange rate continues to raise the cost of hotels, meals and other expenses overseas, particularly in the United States and Europe. Renewed instability in the Middle East, including the latest closure of the Strait of Hormuz, could further strengthen demand for shorter and less expensive trips closer to home. The August reduction could provide another boost to late-summer travel and bookings for the Chuseok holiday period. 2026-07-16 17:11:47