Journalist

Lee Hugh
  • At War 60 Days: Decoupling deepens in Korean markets as stocks rally alone
    At War 60 Days: Decoupling deepens in Korean markets as stocks rally alone SEOUL, April 30 (AJP) — Decoupling across South Korean asset markets has intensified over the past two months of war in the Middle East, with equities extending a solo rally while the currency and bond markets remain under pressure. With few safe havens in a wartime environment, equities have emerged as the primary risk asset. In contrast, the won and government bonds — more exposed to macroeconomic stress — have been weighed down by disruptions to the Strait of Hormuz and now, the uncertainty over the Federal Reserve’s policy path. On Wednesday, the benchmark KOSPI closed at a record 6,690.90, supported by stronger-than-expected 1.7 percent first-quarter growth and blockbuster earnings from Samsung Electronics and SK hynix, whose combined operating profit exceeded 95 trillion won ($63.9 billion). The earnings surge has fed directly into share prices. Samsung Electronics rose above 220,000 won on Wednesday, while SK hynix hit a record high above 1.3 million won on Thursday. Market volatility has eased from March’s shock levels. After swinging more than 10 percent following the de facto blockade of the Strait of Hormuz on March 4, the KOSPI has trended steadily higher since mid-April. The last “buy sidecar” was triggered on April 9, when the index jumped 6.9 percent. The KOSPI Volatility Index (VKOSPI), which spiked to a record 80 on March 4, eased to around 54 on Thursday, suggesting investors are increasingly treating the conflict as a persistent backdrop rather than an acute shock. “Geopolitical threats are episodic; over time, markets revert to corporate fundamentals,” said Lee Kyung-min, a researcher at Daishin Securities. The mood in foreign exchange and bond markets, however, remains fragile. The Korean won has shown elevated volatility, with daily swings averaging 0.55 percent between April 11 and Thursday — higher than those of the South African rand (0.47 percent) and the Turkish lira (0.50 percent). Although the won has recovered from its March 31 low of 1,530 per dollar, it averaged 1,487 in April, weakening about 2 percent from January’s 1,458. The currency remains vulnerable to energy shocks, as South Korea imports roughly 70 percent of its crude oil via the Strait of Hormuz. Fuel prices are already reflecting the strain. Gasoline in Seoul has climbed above 2,000 won per liter, while the Consumer Sentiment Index fell below 100 in April for the first time in a year. Industrial activity is also showing signs of stress. Mining and manufacturing output rose just 0.3 percent in March, sharply slowing from 5.3 percent growth in February. Policy uncertainty in the United States has added another layer of pressure. The Federal Reserve on Wednesday left its benchmark rate unchanged, with the upper bound at 3.75 percent. Chair Jerome Powell, in his final meeting, signaled the possibility of rate cuts, even as incoming leadership under Kevin Warsh is expected to lean more hawkish. The decision exposed divisions within the 12-member committee, drawing four dissenting votes. Governor Steven Myron called for immediate cuts, while three regional presidents pushed back against what they viewed as overly dovish guidance. Reflecting the uncertainty, the won opened at 1,486.5 per dollar on Thursday, weakening by 7.5 won. Government bonds have also come under pressure. The three-year Treasury yield rose 4.3 basis points to 3.568 percent in Thursday morning trade, the highest since November 2023, while the five-year yield climbed 4.1 basis points to 3.888 percent. Gains from South Korea’s inclusion in the World Government Bond Index (WGBI) on April 1 have effectively been erased by geopolitical risk. “If markets scale back expectations for U.S. rate cuts, bond prices will fall further, adding pressure on the currency,” said Ahn Jae-kyun, a researcher at Shinhan Securities. “This trend is likely to persist until the bottleneck in the Strait of Hormuz is resolved.” 2026-04-30 16:04:39
  • Democratic Party’s Lee Kwang-jae shrugs off ‘parachute nomination’ criticism in Hanam by-election bid
    Democratic Party’s Lee Kwang-jae shrugs off ‘parachute nomination’ criticism in Hanam by-election bid Lee Kwang-jae, confirmed as the Democratic Party of Korea’s candidate for the June 3 parliamentary by-election in Gyeonggi Province’s Hanam Gap district, said he would take criticism over his nomination as a call to work harder for the area.  Responding to remarks by People Power Party lawmaker Ahn Cheol-soo of Bundang Gap, whom Lee faced in the 22nd general election, Lee said at a news conference at the National Assembly on April 30 that he would accept the criticism as meaning he should “love Hanam more.”  Lee compared his candidacy to high-profile recruitment in sports, saying South Korea reached the World Cup semifinals after hiring coach Guus Hiddink and Tottenham became stronger after signing Son Heung-min.  Ahn wrote on Facebook on April 28 that Lee had received strategic nominations three times in a row — “2022 in Gangwon, 2024 in Bundang, and 2026 in Hanam” — and said it would not be an exaggeration to call him a “professional strategic nominee.”  Lee said he came to Hanam “to work” and had already begun tackling local issues. He called transportation and rail links Hanam’s biggest pending issues and said he met with National Assembly Land, Infrastructure and Transport Committee Chairman Maeng Seong-gyu. Lee added that Democratic Party lawmakers on the committee would visit Hanam soon.  “Hanam’s report card will be politician Lee Kwang-jae’s report card,” he said. “I will stake my political fate on Hanam’s success.”  He also said he would pour all his experience into Hanam and “clearly show” that choosing the right politician can change people’s lives.  The article said Lee’s nomination was influenced by what it described as his “party first” spirit. It said Rep. Jung Cheong-rae had previously praised Lee for not running in the local elections to support Woo Sang-ho, the Democratic Party’s candidate for Gangwon governor, and had suggested Lee could be nominated for the by-election. Lee was later confirmed as the Hanam Gap candidate.  Asked whether he would feel regret given his affection for Gangwon, Lee said water born in Gangwon flows to the Han River and reaches Hanam, adding that he would now focus on Hanam.  If elected, Lee would return to the National Assembly about four years after resigning to run for Gangwon governor in April 2022, the article said. * This article has been translated by AI. 2026-04-30 16:04:39
  • Court Extends Homeplus Restructuring Plan Deadline by Two Months as Express Sale Nears
    Court Extends Homeplus Restructuring Plan Deadline by Two Months as Express Sale Nears A South Korean court extended the deadline for Homeplus to win approval of its rehabilitation plan by about two months, citing progress in the sale of its Homeplus Express supermarket unit. The company is expected to sign a share purchase agreement, or SPA, with preferred bidder Harim Group (NS Home Shopping) as early as next week. The Seoul Rehabilitation Court’s Rehabilitation Division 4, headed by Chief Judge Jeong Jun-young, on Wednesday moved the approval deadline to July 3 from May 4. The court said it needed time for the Express sale process and follow-up steps to be properly completed. The court noted that a preferred bidder has been selected and the transfer agreement is pending, and that Homeplus’ administrator has said the company plans to secure additional emergency operating funds through debtor-in-possession, or DIP, financing once the deal is signed. Homeplus applied for rehabilitation proceedings in March last year as part of a preemptive restructuring, and the court promptly opened the case. In December, the administrator submitted a restructuring-focused plan that included 300 billion won in new borrowing through DIP financing and the sale of the supermarket business unit. Under the rules, the plan was originally due for approval by March 4, one year after the court opened the proceedings. The court granted a first extension, citing the need to confirm the status of the Express sale. On April 23, Homeplus and its sale adviser, Samil PwC, selected Harim Group as the preferred bidder. With the court’s extension approved, Homeplus and Harim are expected to finalize the SPA as early as next week, according to industry sources. Even if the contract is signed, Homeplus said there will be a lag before sale proceeds reach the company, leaving it under acute cash pressure. After more than 14 months in rehabilitation, Homeplus said it is already facing a severe funding crunch. The 100 billion won previously injected by its controlling shareholder, MBK Partners, has been fully used to pay overdue utility bills and employee wages for January and February. With supply disruptions and falling sales accumulating, the company has also failed to pay wages for March and April on time, raising concerns about maintaining operations at its core hypermarket business. Homeplus said it has formally requested emergency funding from Meritz Financial Group, its largest creditor, which holds most of the company’s key real estate assets as trust collateral. “At this point, the only realistic entity that can quickly provide large-scale liquidity is effectively Meritz Financial Group,” Homeplus said. It added that a bridge loan and DIP financing, with recovery of Express sale proceeds expected, are “essential financial measures” to keep the rehabilitation process on track. The company said completing the Express sale and restructuring is “the most realistic path” to maximize creditor recoveries, and urged Meritz to make a swift, forward-looking decision that considers both recoverability and rehabilitation value. * This article has been translated by AI. 2026-04-30 16:03:06
  • BGF Logis, Cargo Truckers Union Reach Deal; Improvements to Apply to All Drivers
    BGF Logis, Cargo Truckers Union Reach Deal; Improvements to Apply to All Drivers BGF Logis, the logistics unit of BGF Retail, said it has reached a final agreement with the Cargo Truckers Union, ending a dispute that disrupted deliveries. In a statement released April 30, BGF Logis said talks with the union concluded that day and that the resulting improvements in working conditions will apply equally to all transport workers who work with the company, regardless of affiliation or union membership. The company said blockades at its logistics centers and ready-to-eat food plants will be lifted immediately once the agreement is signed, and deliveries will resume in stages after each site completes internal preparations. BGF Logis said it decided to extend the terms to nonunion workers to fulfill its “duty and responsibility” to those who stayed on the job during a difficult period. It added that it will use the agreement as an opportunity to build a healthier logistics ecosystem and will continue efforts to support customer convenience and stable store operations. The agreement signed earlier April 30 includes a 7% increase in transport fees, one paid day off per quarter for truck owner-operators, guarantees for union activities, and civil and criminal immunity related to the recent rallies, along with withdrawal of injunction requests, according to reports. It also includes provisions on restoring the honor of a deceased union member and paying respects. BGF Retail, which operates the CU convenience store chain, said it will prepare support measures for franchisees. The company plans to assess damage at stores, gather feedback from the field and develop assistance plans. After internal preparations, BGF Logis plans to restart operations centered on its Jincheon logistics center and aims to normalize all logistics centers and plants within this week. * This article has been translated by AI. 2026-04-30 16:01:44
  • Samsung Elec flags prolonged AI-driven memory crunch as orders stretch to 2027
    Samsung Elec flags prolonged AI-driven memory crunch as orders stretch to 2027 SEOUL, April 30 (AJP) - Samsung Electronics said surging artificial intelligence demand is likely to keep memory markets exceptionally tight well into next year, with orders now extending as far as 2027, underscoring the depth of the current supply squeeze. The company, already swamped with orders stretching into next year, said the extraordinary tightness will persist and that production will remain unaffected even if labor action proceeds. “Our capacity far lags behind customer demand amid extremely tight inventory levels. Demand far exceeds our capacity, with coverage at a historic low,” Kim Jae-joon, executive vice president of memory strategy and marketing, said on a conference call Thursday after the company confirmed record quarterly results for the three months ended March. The imbalance has deepened to the point where Samsung is accepting orders for 2027, including long-term agreements (LTAs) with key clients to secure business visibility. Driven by aggressive expansion, Samsung expects its next-generation HBM4 chips to account for more than half of total high bandwidth memory (HBM) sales by the third quarter. The Device Solutions (DS) division posted record earnings, generating 53.7 trillion won ($39.2 billion) in operating profit on revenue of 81.7 trillion won, translating into an operating margin of 65.7 percent — still trailing domestic rival SK hynix’s 71.5 percent. Addressing market views that conventional DRAM is currently more profitable than HBM due to recent price spikes, Samsung said it would not prioritize short-term gains. “A balanced supply of both HBM and conventional DRAM is essential to sustain AI-driven demand,” the company said. “We will maintain a balanced product mix, taking into account mid- to long-term growth and long-term customer relationships.” In a move to enhance shareholder returns, Samsung said it will cancel remaining treasury shares equivalent to 1.2 percent of common stock and 1.7 percent of preferred shares, valued at about 14.6 trillion won ($10.6 billion) based on the board resolution date. Capital expenditure reached 11.2 trillion won in the first quarter, with 10.2 trillion won allocated to expanding semiconductor facilities. Labor tensions, however, remain a key overhang. Management said it is seeking to resolve disputes through dialogue and avert a planned 18-day strike from May 21, while pledging to keep production lines running even if a walkout occurs. Samsung confirmed consolidated operating profit of 57.23 trillion won on revenue of 133.87 trillion won. Beyond the semiconductor business, the Device eXperience (DX) division posted operating profit of 3 trillion won on sales of 52.7 trillion won. 2026-04-30 16:01:17
  • Democratic Party Taps Kim Seong-beom as Third Recruitment Pick Ahead of June 3 By-Elections
    Democratic Party Taps Kim Seong-beom as Third Recruitment Pick Ahead of June 3 By-Elections The Democratic Party on April 30 named Kim Seong-beom, a former vice minister of oceans and fisheries, as its third “talent recruitment” pick ahead of the June 3 parliamentary by-elections. Kim is widely expected to run in Seogwipo, Jeju, the seat vacated by Wi Seong-gon after Wi confirmed his bid for Jeju governor and resigned his lawmaker post. Kim said he wants to work for his hometown of Seogwipo. Party leader Jeong Cheong-rae introduced Kim at a National Assembly event, calling him “a master” in the oceans and fisheries field. Jeong said Kim was appointed vice minister as soon as the Lee Jae-myung government launched and showed strong performance, adding that Kim wants to use more than 30 years of experience for Seogwipo’s development and South Korea’s maritime future. Kim said he spent 32 years in public service, working mostly in oceans and fisheries administration. He said that as vice minister he delivered results, including handling the relocation of the oceans ministry to Busan and raising fines for illegal Chinese fishing boats. Kim, who is from Namjeju and attended school in Seogwipo, said he left Seogwipo, gained broader experience and returned. “I will use the national-level experience and strength I have built up for my hometown of Seogwipo,” he said. Wi, who attended the event, encouraged Kim. Wi said Kim is “yomangjida,” explaining it as a Jeju dialect expression meaning “bold and capable,” and said he believes Kim will do well. The party previously recruited attorney Jeon Tae-jin from Ulsan as its first pick and on April 20 gave him a strategic nomination in Ulsan Nam-gap. It then recruited Ha Jeong-woo, former senior presidential secretary for AI future planning, and Jeon Eun-su, former presidential spokesperson, as picks No. 2 and No. 3, respectively. Jeong said the party plans to continue recruiting. After visiting Deokpung Traditional Market in Hanam, Gyeonggi Province, the day before, he told reporters that after the third recruitment event there was a “99.9%” chance of adding one more person, saying he had someone in mind.* This article has been translated by AI. 2026-04-30 16:00:14
  • HMM reaches labor-management deal to move HQ to Busan
    HMM reaches labor-management deal to move HQ to Busan SEOUL, April 30 (AJP) - South Korea’s HMM, the world’s eighth-largest shipping company, said Friday that its labor and management have reached an agreement to relocate the company’s headquarters to the southern port city of Busan, the country’s main maritime gateway, resolving a long-standing dispute that had raised concerns over labor strikes and disruptions to global logistics. Busan, home to South Korea’s largest port, has been positioning itself as a maritime and logistics hub, with the government pushing to cluster shipping, finance, and related industries in the city. While the government expects the relocation to strengthen operational efficiency and create synergies with port infrastructure and maritime institutions in the city, concerned voices erupted from workers from government offices and companies, including HMM, who were worried about their families leaving their hometown to move to Busan. The shipbuilder said that the agreement reflects a shared commitment to national priorities such as regional development and decentralization. HMM added that with the prolonged Middle East conflict continuing to strain global supply chains, the deal was reached to avoid a potential labor strike stemming from labor-management differences, which could have disrupted both domestic and international logistics and led to broader social and economic impacts. Under the deal, HMM will complete legal procedures to change its registered headquarters following an extraordinary shareholders’ meeting scheduled for May 8. Afterward, the company will first relocate the CEO’s office, after which labor and management will begin detailed talks on the relocation, with a focus on business efficiency and potential synergies. The company said the two sides had held multiple rounds of talks since the second half of last year but failed to reach an agreement, with tensions escalating recently as the union filed for mediation, pursued legal action against the CEO and warned of a possible strike. The company also plans to push ahead with the construction of a landmark office building in Busan’s North Port area to support the local economy. Meanwhile, the company reported revenue of 10.89 trillion won ($7.9 billion) and an operating profit of 1.46 trillion won last year. An official of HMM said the deal reflects national priorities and the company’s role as a national flag carrier, adding that with uncertainties now eased, it will focus on addressing external risks and strengthening its global competitiveness. Founded in 1976, HMM operates a global network connecting more than 60 trade routes and over 100 ports across the Americas, Europe, the Middle East and Latin America. The company has secured container capacity exceeding 1 million twenty-foot equivalent units (TEUs) and aims to expand this to 1.55 million TEUs by 2030, alongside investments in eco-friendly vessels and digital transformation. 2026-04-30 15:59:52
  • South Korea’s Kospi Slips After Topping 6,750 as Foreign Selling Spurs Profit-Taking
    South Korea’s Kospi Slips After Topping 6,750 as Foreign Selling Spurs Profit-Taking South Korea’s Kospi climbed above the 6,750 level in intraday trading on April 30 but reversed to finish lower as foreign investors sold and overseas uncertainties weighed on sentiment. Ahead of a holiday, profit-taking erased earlier gains and pushed the benchmark back into the 6,590 range. According to the Korea Exchange, the Kospi closed down 92.03 points, or 1.38%, at 6,598.87. It opened up 48.49 points, or 0.72%, at 6,739.39 and briefly topped 6,750 before turning negative. In the main market, retail investors bought a net 1.8065 trillion won, while foreigners and institutions sold a net 1.6773 trillion won and 99.7 billion won, respectively, as they locked in gains. Most heavyweight stocks fell. Samsung Electronics dropped 2.34%, Hyundai Motor slid 4.50%, LG Energy Solution fell 2.64%, Doosan Enerbility lost 1.63%, Hanwha Aerospace dipped 0.21%, HD Hyundai Heavy Industries fell 0.72% and Samsung Biologics slipped 0.20%. SK hynix rose 1.33%. The Kosdaq closed down 27.91 points, or 2.29%, at 1,192.35. Retail investors bought a net 653.5 billion won, while foreigners and institutions sold a net 300.3 billion won and 310.9 billion won, respectively. Kosdaq leaders were mixed. Rainbow Robotics rose 0.15% and Lino Industrial gained 6.33%, while EcoPro fell 4.25%, EcoPro BM lost 2.82%, Alteogen dropped 3.03%, Samchundang Pharm slid 6.09%, Kolon TissueGene fell 5.03%, HLB lost 3.02%, ABL Bio dropped 5.14% and LigaChem Bio fell 5.50%. Lee Kyung-min, a researcher at Daishin Securities, said net foreign selling expanded while institutional selling eased, helping support the market’s lower end. He said the Kospi stayed weak as it digested a hawkish Federal Open Market Committee stance and inflation concerns tied to high oil prices.* This article has been translated by AI. 2026-04-30 15:58:36
  • K Bank Q1 Net Profit Jumps 107% to 33.2 Billion Won on Strong Corporate Lending
    K Bank Q1 Net Profit Jumps 107% to 33.2 Billion Won on Strong Corporate Lending K Bank said in a regulatory filing on Wednesday that it posted net profit of 33.2 billion won ($?) in the first quarter, up 106.9% from a year earlier, as asset growth continued on strong corporate lending. Total customers reached 16.07 million at the end of the quarter, up 540,000 from the end of last year. Deposits totaled 28.22 trillion won, up 1.5% from 27.80 trillion won a year earlier. Loans rose 10.7% to 18.75 trillion won from 16.94 trillion won. Despite a tighter stance on household lending, the bank said its strategy to expand corporate loans — mainly to sole proprietors — drove loan growth. Corporate loan balances more than doubled over the past year to 2.75 trillion won from 1.31 trillion won. The bank said net increases in corporate loan balances have expanded for five straight quarters. Net interest income rose 15.4% to 125.2 billion won from 108.5 billion won. The net interest margin widened to 1.57% from 1.41% on loan growth, changes in the rate environment and an improved funding mix. Noninterest income increased about 4% to 14.2 billion won. Credit loss provisions fell 7.6% to 50.1 billion won from 53.9 billion won, and the credit cost ratio improved to 1.09% from 1.31%. The delinquency ratio edged down to 0.61% at the end of the first quarter from 0.66% a year earlier, while the ratio of substandard or below loans eased to 0.58% from 0.61%. The bank’s BIS capital ratio stood at 21.47%. The average share of mid- to low-credit loans in the first quarter was 31.9%, and the share of new mid- to low-credit loans was 33.5%, both above regulatory thresholds of 30% and 32%, respectively. Chief Executive Choi Woo-hyung said the first quarter was a period in which the bank strengthened its growth base by proactively expanding lending to sole proprietors. He said K Bank will further refine its corporate finance portfolio and seek competitiveness in global digital asset markets, including stablecoins, to continue differentiated innovation.* This article has been translated by AI. 2026-04-30 15:56:05
  • South Korea Supreme Court backs workers in Dong-A Transport wage suit, orders overtime pay
    South Korea Supreme Court backs workers in Dong-A Transport wage suit, orders overtime pay The Supreme Court has largely sided with workers in a wage lawsuit involving Seoul city bus operator Dong-A Transport, a case that helped spark labor unrest in the sector. According to the legal community on Wednesday, the court’s Third Division, with Justice Lee Sook-yeon as the presiding justice, partially overturned an appellate ruling and sent the case back to the Seoul High Court. The top court left most of the lower court’s decision intact, overturning only part of the portion in which workers had lost. As a result, Dong-A Transport must pay overtime and night-work allowances based on “deemed working hours” — guaranteed hours set by labor and management — even when they exceed actual hours worked. Deemed working hours refer to a system that treats a set number of hours as overtime or night work regardless of actual overtime or holiday work, reflecting the nature of the work schedule and conditions. In its decision, the Supreme Court upheld the lower court’s finding that regular bonuses should be included in ordinary wages. It also found no problem with the conclusion that allowances must be recalculated using ordinary wages that reflect those bonuses, and that the company must pay the difference if it previously paid less. However, the court said the lower court misunderstood the law when it ordered overtime and night-work allowances to be paid only for actual hours worked rather than deemed working hours, and it reversed and remanded that part. The lawsuit was filed by bus driver A and other Dong-A Transport employees in 2015. They argued that a regular bonus paid every other month, calculated at 100% of base pay, should be treated as ordinary wages, and that the company should pay unpaid allowances that were underpaid after excluding the bonus. They also said the company undervalued their actual working time by relying on driving hours entered into the Seoul Bus Management System, excluding time for pre- and post-trip tasks, refueling, waiting, and training. They sought retroactive payment of unpaid overtime, night-work and holiday-work allowances. A trial court ruled for the company, citing earlier Supreme Court precedent that required “fixedness” for pay to qualify as ordinary wages. The decision was overturned on appeal. While the appeal was pending in 2024, the Supreme Court issued a new precedent abolishing the fixedness requirement. Applying that precedent, the appellate court ruled in October last year for the workers by recognizing the regular bonus as ordinary wages. But it ordered allowances to be paid only for actual hours worked, which were shorter than deemed working hours. The workers appealed. The ruling is significant as the first case in which the shift in ordinary-wage doctrine has been applied in practice to the city bus industry. If regular bonuses are included in ordinary wages, overtime, night-work and holiday-work allowances calculated on that basis rise accordingly. If the judgment becomes final after the remand proceedings, cost burdens are expected to increase sharply for Dong-A Transport and other city bus operators. In areas such as Seoul that use a quasi-public system, local governments cover bus companies’ deficits with tax revenue, raising the prospect of substantial public spending. * This article has been translated by AI. 2026-04-30 15:48:17