Journalist

Lee Hugh
  • Koreas Q1 growth beats expectations, but beyond hinges largely on Hormuz
    Korea's Q1 growth beats expectations, but beyond hinges largely on Hormuz SEOUL, April 24 (AJP) — South Korea’s economy grew a stronger-than-expected 1.7 percent in the first quarter, nearly double the Bank of Korea’s estimate, raising hopes for resilience despite mounting external shocks. But whether the momentum can last hinges on the duration of the nearly two-month Middle East standoff and Korea’s ability to withstand an energy shock across an economy still fragilely powered by chip exports. Following the data, the Bank of Korea (BOK) expressed confidence that the economy can weather this year’s Black Swan crisis in the Gulf. “Since the first-quarter growth rate is heavily reflected in the annual figures, we expect to meet our original growth target of 2 percent without significant difficulty,” said Lee Dong-won, director general of the central bank’s Economic Statistics Department. “The squeeze from the blockade will be reflected in second-quarter data,” Lee said. “It is clear that the conflict in the Middle East has placed upward pressure on inflation and downward pressure on economic growth.” Diplomatic efforts to resolve the crisis have stalled, with ceasefire negotiations failing to produce a breakthrough. The deadlock may partly reflect both sides’ need to replenish depleted military stockpiles. According to the Center for Strategic and International Studies (CSIS), U.S. inventories of precision-strike missiles and Tomahawk cruise missiles have fallen to 60 percent and 70 percent of peacetime levels, respectively. Inventories of the Terminal High Altitude Area Defense (THAAD) system, in particular, have been halved. Iran’s offensive capabilities also remain constrained after the destruction of key launch facilities and infrastructure. “With both sides facing mounting pressure from a war of attrition, they appear to be seeking a tactical breathing space through negotiations,” said Kim Yeol-soo, a senior research fellow at the Korea Institute for Military Affairs. Iran remains deeply skeptical of U.S. intentions after being attacked during previous nuclear talks, while Washington has refused Tehran’s demands for the restoration of frozen assets and formal recognition of uranium enrichment. High-stakes negotiations ended on April 12 without tangible results. Tensions continue in the Strait of Hormuz, with both sides seizing vessels and raising the risk of renewed military action once arsenals are replenished. The international financial community has taken note of South Korea’s performance. After the 1.7 percent first-quarter growth figure, major investment banks began raising their annual growth forecasts. Park Jeong-woo, an economist at Nomura Securities, cautioned that the upgrades remain conditional. “It is premature to conclude that inflationary pressures or downside risks to growth have subsided,” he said. The most immediate threat is a sustained surge in energy costs. Dubai crude, which averaged below $70 per barrel last year, has stayed above $90 this year. Hyundai Research Institute and other institutions warn that if the annual average oil price exceeds $100, South Korea’s consumer price index could rise by more than one percentage point, pushing inflation into the 3 percent range. Inflationary pressure is already showing in the currency market. The Korean won, which had briefly stabilized, weakened again toward the end of the week, closing at 1,484.5 per dollar on Friday. Korean government bonds, once expected to strengthen after their inclusion in the World Government Bond Index, have also weakened. As of Friday morning, the three-year yield rose 3.8 basis points to 3.496 percent, while the 10-year yield climbed 2.6 basis point to 3.817 percent, marking a level of weakness similar to late March. 2026-04-24 16:54:54
  • Seoul Mayor Oh Blames Past Halt in Rainwater Tunnel Plan for 2022 Flood Damage
    Seoul Mayor Oh Blames Past Halt in Rainwater Tunnel Plan for 2022 Flood Damage Seoul Mayor Oh Se-hoon said April 24 that delays in the city’s deep underground rainwater tunnel program contributed to flood damage in 2022, blaming a previous mayor for halting most of the plan. “Only one was completed in Sinwol-dong, and the rest of the plan was all stopped,” Oh said after visiting the Gwanghwamun tunnel construction site earlier in the day to check progress. He said a plan set in 2010 was not carried out, leading to the 2022 flood damage. The deep underground rainwater storage and drainage tunnel project is part of a comprehensive storm and flood response plan Oh prepared in 2011 after casualties in a landslide on Umyeonsan in Seoul’s Seocho district. The plan called for building 20 kilometers of deep drainage tunnels at seven flood-prone areas in Seoul, including Gwanghwamun. During the tenure of former Mayor Park Won-soon, six of the seven sites were scrapped, with Sinwol-dong the exception. Oh also acknowledged criticism that the project is costly. “It’s a project that requires significant funding,” he said, adding that if it had proceeded as planned in 2010, “we wouldn’t have had to spend 3 billion won, 5 billion won at a time.” He said views can differ because the project is meant as a precaution, but stressed that steady investment is needed over the next five to six years, with completion targeted for the first half of 2030. Seoul is pursuing six deep tunnel sites in two phases: Phase 1 covering the Gangnam Station, Gwanghwamun and Dorimcheon areas, and Phase 2 covering the Sadang Station, Hangang-ro and Gil-dong areas. Oh also said he plans to register as a preliminary candidate for Seoul mayor on April 27 and begin a full-scale campaign.* This article has been translated by AI. 2026-04-24 16:54:29
  • Brokerage Units Deliver First-Quarter Earnings Surprises for Korean Financial Groups
    Brokerage Units Deliver First-Quarter Earnings Surprises for Korean Financial Groups Brokerage subsidiaries of South Korean financial holding companies posted first-quarter earnings surprises, emerging as key profit engines as a strong stock market and broader revenue streams lifted results. According to the financial investment industry on Thursday, major brokerages including NH Investment & Securities, KB Securities and Shinhan Investment Corp. reported sharp year-on-year gains for the first quarter. NH Investment & Securities posted quarterly record results with revenue of 8.8976 trillion won, operating profit of 636.7 billion won and net profit of 475.7 billion won. The firm also reported rapid growth in high-net-worth clients: customers with at least 100 million won totaled 358,000, and those with at least 1 billion won totaled 24,000, both up by double-digit rates. KB Securities reported net profit of 350.2 billion won, up 92.8% from a year earlier. The company cited growth in client assets in wealth management and stronger competitiveness in investment banking, including debt capital markets and equity capital markets. Shinhan Investment Corp. reported operating profit of 386.4 billion won and net profit of 288.4 billion won, up 228.5% and 167.4%, respectively. The company posted broad-based growth across divisions, including investment banking and fees from financial products, alongside brokerage. The gains also showed up in holding-company results. KB Financial Group and Shinhan Financial Group both posted record first-quarter net profit, with their brokerage affiliates’ contributions rising to about 18.5% and 17.8%, respectively, the report said. Analysts said the figures point to a faster shift away from bank-centered earnings toward a more diversified nonbank portfolio. Differences among groups were also evident. Hana Securities reported first-quarter operating profit of 141.6 billion won and net profit of 103.3 billion won, up 47.9% and 37.1%, respectively. Hana Securities said higher fee income and increased sales of financial products in wealth management helped results, while investment banking benefited from a strategy focused on high-quality deals and performance in acquisition finance. It added that its sales and trading unit maintained competitiveness in issuing derivative-linked securities and focused on risk management amid volatile markets. Still, the brokerage unit’s contribution to the group is viewed as relatively limited compared with rival holding companies. Market participants said the results reflect not only a buoyant stock market but also structural change, as brokerages expand beyond commission-based trading into wealth management, investment banking and trading to generate steadier earnings during periods of volatility. For financial holding companies, the role of brokerages is expected to grow as interest-rate swings and tighter lending conditions limit reliance on bank net interest income, strengthening the influence of nonbank affiliates on group performance. “Brokerages have moved beyond being simple affiliates and have become core businesses that can shape holding-company results,” an industry official said. “Their presence within groups could grow further depending on platform competitiveness and stronger global investment-banking capabilities.”* This article has been translated by AI. 2026-04-24 16:48:22
  • Seoul, Incheon and Gyeonggi Show Diverging Trends in Capital Area Apartment Auctions
    Seoul, Incheon and Gyeonggi Show Diverging Trends in Capital Area Apartment Auctions Apartment auctions in the Seoul metropolitan area showed mixed signals in the fourth week of April, with a higher win rate but a lower winning-bid ratio, widening gaps by region. GG Auction, a court and public auction platform, said April 24 that it analyzed apartment auction trends for April’s fourth week (April 20-24). The number of auctions held was 366, down about 8% from 397 the previous week, but stayed above 300 for a third straight week. The win rate rose to 39.3% from 33.0%, up 6.3 percentage points. The winning-bid ratio fell to 85.0% from 93.6%, down 8.6 points and below 90% for the first time in six weeks. The average number of bidders was unchanged at 5.6. In Seoul, the win rate surged while prices eased. Seoul’s win rate jumped to 80.0% from 47.2%, which GG Auction attributed to fewer listings. But the winning-bid ratio dropped to 89.5% from 107.8%, down 18.3 points to the year’s lowest level, as less-preferred properties such as stand-alone complexes sold in the 70% range and pulled down the average. Still, demand held up for some properties. Singil Xi in Singil-dong, Yeongdeungpo-gu, a relatively new apartment priced under 1.5 billion won, posted a 109.1% winning-bid ratio. Ultra-high-priced Gangnam-area complexes, including Banpo Xi in Banpo-dong, Seocho-gu, averaged above 105%. Seoul’s average number of bidders fell to 5.9 from 7.0, the lowest in four weeks. In Incheon, both the win rate and winning-bid ratio edged down, but competition intensified. The win rate slipped to 21.9% from 25.8%, and the winning-bid ratio eased to 79.0% from 79.6%. The average number of bidders jumped to 6.7 from 4.0, the highest in 10 weeks. A small apartment near a subway station in Yeonsu-dong drew 20 bidders. Gyeonggi Province posted a steadier pattern, with a higher win rate and a lower winning-bid ratio. The win rate rose to 42.0% from 32.8%, up 9.2 points, while the winning-bid ratio fell to 83.4% from 87.0%, down 3.6 points. Nonregulated areas such as Suwon’s Gwonseon-gu, Gwangju and Yongin’s Cheoin-gu ranked near the top in winning-bid ratios, suggesting demand concentrated there. The average number of bidders held near the prior week at 5.3. * This article has been translated by AI. 2026-04-24 16:45:19
  • Kia Profit Falls as U.S. Tariffs and Incentives Rise; Hybrid and PBV Push Planned
    Kia Profit Falls as U.S. Tariffs and Incentives Rise; Hybrid and PBV Push Planned Kia posted its highest-ever quarterly revenue but saw profitability slide as external costs piled up, including more than 700 billion won in U.S. tariff-related expenses. The automaker said it will lean more heavily on hybrids and expand into purpose-built vehicles to seek a rebound. Kia said in a regulatory filing on Thursday that first-quarter revenue rose 5.3% from a year earlier to 29.5019 trillion won, a record for any quarter. Operating profit fell 26.7% to 2.2051 trillion won. The profit decline came despite higher sales as the impact of U.S. tariffs took hold and other factors added pressure, including higher incentives amid tougher competition in North America and Europe and an increase in foreign-currency warranty provisions tied to a late-quarter rise in the won-dollar exchange rate. Kia said its first-quarter U.S. tariff cost totaled 755 billion won. Kia said profitability worsened due to "external factors," including the full impact of U.S. tariffs on imported finished vehicles and higher incentives driven by intensified competition in North America and Europe. It added that it maintained "solid fundamentals" by improving its mix toward higher-margin models and lifting average selling prices, helping it achieve record revenue. Kim Seung-jun, Kia’s head of finance, said on an earnings conference call that oil prices could remain around $100 this year even if the war ends, posing a clear cost risk. Still, he said Kia ships about 260,000 vehicles a year to the Asia-Middle East region and believes it has enough capacity to make up the difference in other regions such as the domestic market, Europe and India. Looking ahead, Kia said it will strengthen its electrification strategy centered on higher-value hybrids. It plans to roll out models including the Telluride HEV and Seltos HEV this year, followed by the K4 HEV, aiming to meet demand for eco-friendly vehicles. Kia set a 2026 target of 690,000 hybrid sales and said it will secure an additional 400,000 units of production capacity over the mid-to-long term while reinforcing its global production system. Kia also plans to expand into purpose-built vehicles, or PBVs. It said it launched its first PBV model, the PV5, last year and sold about 8,500 units by year-end. For this year, it aims to sell 54,000 units as it begins a full global rollout. The PV5 base model and conversion models will be introduced sequentially in Europe, Asia-Pacific and the Asia-Middle East markets this year. Kim said Kia expects demand in India, Latin America and the Asia-Pacific region to grow by more than 10% in the second quarter. He said Kia plans to raise production this year by 5% at its plants in South Korea and by more than 10% at its China plant, which he described as key facilities for meeting emerging-market demand.* This article has been translated by AI. 2026-04-24 16:40:10
  • Democratic Party calls 30-year sentence request for Yoon Suk Yeol in Pyongyang drone case anti-state crime
    Democratic Party calls 30-year sentence request for Yoon Suk Yeol in Pyongyang drone case 'anti-state crime' The Democratic Party on April 24 called prosecutors’ request for a 30-year prison term for Yoon Suk Yeol, indicted over allegations he ordered a drone operation into Pyongyang, “a deserved response to an anti-state crime.” Some party figures said prosecutors should have sought life in prison. Spokesman Kim Nam-guk said Yoon “used the nation’s survival and the lives of its people as chips in a gamble to maintain his power.” Earlier, the special counsel team asked the Seoul Central District Court’s Criminal Division 36, presided over Chief Judge Lee Jeong-yeop, to sentence Yoon to 30 years at the closing hearing in the first trial. Kim said it would be recorded as “an indelible disgrace” that the commander in chief, who should protect lives, “artificially stoked the risk of war on the Korean Peninsula” and tried to undermine the constitutional order. He said the alleged “Pyongyang drone insertion” operation went beyond abuse of power and amounted to “aiding the enemy,” calling the offense serious. Kim said the operation was aimed at stirring a “North wind” to justify declaring martial law, sending a key military asset into enemy territory and, in the process, giving North Korea grounds for retaliation that put border residents and the public under the threat of war. “Now only the judiciary’s stern judgment remains,” Kim said, urging a ruling “based solely on law and principle” so that “power does not again threaten the people by taking security hostage.” Rep. Kim Byung-joo, a former four-star general, wrote on Facebook that the request was too light and that seeking life in prison “would not have been excessive.” Rep. Kim Yong-min also said prosecutors should have sought the maximum penalty of life in prison, saying history should record the fate of someone who “schemed for war” to keep power. Yoon is accused of ordering an operation around October 2024 to send drones into Pyongyang to militarily provoke North Korea with the aim of declaring martial law. The special counsel has concluded the operation heightened military tensions between the Koreas and that a deployed drone crashed, leaking military secrets related to the operation and capabilities and harming military interests.* This article has been translated by AI. 2026-04-24 16:39:19
  • Coupang overstretches into security front, stirring Korea-U.S. friction
    Coupang overstretches into security front, stirring Korea-U.S. friction SEOUL, April 24 (AJP) - In a rare and uneasy convergence, a retail dispute has spilled into the security domain between Seoul and Washington, underscoring the growing political reach of Coupang, a New York-listed retailer whose business is almost entirely rooted in South Korea. According to lobbying disclosure reports filed with the U.S. Congress, Coupang spent a combined $1.785 million in the first quarter of 2026 – nearly doubled from $895,000 in the previous quarter - as political and legal scrutiny mounted for a massive data leak in Korea last November. The filings show that Coupang not only boosted its in-house lobbying to $1.09 million, but also expanded its roster of external firms, adding Ballard Partners, Crossroads Strategies and Williams & Jensen to existing partners including Miller Strategies, Continental Strategy and Monument Advocacy. While the disclosed amount reflects only direct lobbying activities required under U.S. law, it excludes broader advisory and strategic consulting fees, suggesting total spending may be significantly higher. The scope of engagement has also widened. In late 2025, Coupang’s lobbying focused largely on trade-related agencies such as the Commerce Department, the Office of the U.S. Trade Representative and the State Department. By early 2026, outreach had expanded to include the White House, the Office of the Vice President and even the National Security Council, indicating that discussions may have entered security-sensitive territory. The involvement of high-profile lobbyists with deep ties to U.S. policymakers — including figures connected to Secretary of State Marco Rubio and former White House advisory teams — underscores the strategic nature of the campaign. Its efforts appear to have paid off. U.S. Vice President J.D. Vance reportedly raised concerns about Coupang during a January meeting with South Korean Prime Minister Kim Min-seok, while Rubio has also referenced the company in discussions with Korean officials. The issue further blew over this week when 54 Republican lawmakers affiliated with the Republican Study Committee sent a letter to South Korea’s ambassador in Washington, urging Seoul to halt what they described as “discriminatory regulations” against U.S. firms — explicitly naming Coupang alongside Apple Inc., Alphabet Inc.’s Google and Meta Platforms Inc.. According to people familiar with the matter, U.S. officials have also conveyed concerns through diplomatic channels about potential legal actions against Coupang Chairman Bom Kim, warning such moves could complicate high-level security consultations between the allies. Underscoring the elevation of the agenda, South Korea’s National Security Adviser Wi Sung-lac acknowledged the spillover effect during an overseas briefing while accompanying the president in Vietnam. “This is fundamentally a corporate issue, but it is true that it is influencing security consultations between South Korea and the United States,” Wi said. “We do not believe it is desirable for corporate matters and security negotiations to become linked.” He added that delays in security talks are already occurring and warned that prolonged disruptions could harm the alliance. At home, the response has been more forceful. National Assembly Speaker Woo Won-shik described the U.S. lawmakers’ letter as “a clear interference in domestic affairs,” stressing that companies operating in Korea must comply with Korean law. “There have been large-scale personal data leaks and allegations of algorithm manipulation. These are clear violations of current law,” Woo said. The company denied any wrongdoing and dismissed claims that its lobbying extends into security issues as “categorically false,” stating its activities focus on economic cooperation, trade expansion and technology partnerships, including artificial intelligence initiatives. It also emphasized that its lobbying expenditures remain modest compared with other major U.S. and Korean corporations. Founded in 2010 by Bom Kim, Coupang has grown into South Korea’s largest e-commerce platform, often compared to Amazon for its logistics-driven model and rapid delivery services. Headquartered in Seattle, incorporated in Delaware and listed on the New York Stock Exchange, it occupies an ambiguous identity — structurally American, operationally Korean. Its rapid growth has been accompanied by controversy. The company has faced criticism over industrial safety conditions in its logistics network, with several worker deaths linked by labor groups to harsh working conditions. It has also been embroiled in a major personal data breach that intensified regulatory scrutiny, alongside allegations of algorithm manipulation to favor its own products — claims the company denies. The dispute may ultimately move into the courts, with lawmakers exploring legal options including class action mechanisms. “We are reviewing class action legislation,” said Kim Yong-min of the Democratic Party of Korea, noting that such systems are already well established in the United States. Meanwhile, Lee Un-ju, a member of the party’s Supreme Council, pointed to a fundamental perception gap in Washington. “In the United States, people tend to think of Coupang simply as an American company,” she said. “They don’t realize that most of its revenue is generated in Korea, and that the majority of victims in the personal data breach are also in Korea.” Lee said she conveyed this view directly to U.S. policymakers during a recent visit, emphasizing that understanding Coupang’s operational reality is key to evaluating the dispute. “It is very important to recognize that Coupang is, in effect, a Korean company,” she said. 2026-04-24 16:37:51
  • BLACKPINKs Jisoo wins rising star award at Canneseries
    BLACKPINK's Jisoo wins rising star award at Canneseries SEOUL, April 24 (AJP) - BLACKPINK's Jisoo has won an award at this year's Cannes International Series Festival, which kicked off its weeklong run in the French resort city earlier this week. Jisoo received the Madame Figaro Rising Star Award last Wednesday at the annual festival, also known as Canneseries, which promotes television series around the world. According to the festival's organizers, Jisoo, alongside her music career, has "steadily expanded her presence as an actress, building her acting profile across music videos, advertising campaigns, television series, and films." "Jisoo continues to balance careers in music and acting, with a focus on expanding her filmography through diverse roles and formats. With her international reach, screen presence, and ongoing artistic growth, she remains a prominent and promising figure in contemporary Korean and global entertainment," they added. Having debuted as a member of BLACKPINK in 2016, she has gained worldwide popularity and branched out in her career into acting with her latest appearance in romantic comedy "Monthly Boyfriend," in which she plays a webtoonist wearied by daily life who turns to a virtual dating. 2026-04-24 16:37:17
  • IBK Industrial Bank Q1 Net Profit Falls 7.5% to 753.4 Billion Won on FX Volatility
    IBK Industrial Bank Q1 Net Profit Falls 7.5% to 753.4 Billion Won on FX Volatility IBK Industrial Bank of Korea said Friday its first-quarter net profit fell 7.5% from a year earlier to 753.4 billion won, citing the impact of exchange-rate volatility. The bank said the decline was linked to currency-related factors stemming from Iran. Lending to small and midsize enterprises increased as the bank expanded what it called “productive finance.” The outstanding balance of SME loans rose 0.9% from the end of last year to 264.2 trillion won. Its share of the SME market was 24.4%. Asset-quality indicators were mixed. The ratio of substandard or below loans was unchanged from the end of last year at 1.28%, while the credit cost ratio fell 0.04 percentage point to 0.43%. An IBK official said the bank will continue supporting SMEs facing difficulties from rising exchange rates and oil prices through its “IBK-type Productive Finance 30-300 Project.” The official added that, as disclosed in March, the bank plans to introduce quarterly dividends for the first time, with July 31 set as the dividend record date. * This article has been translated by AI. 2026-04-24 16:36:18
  • Huawei to Invest Up to 80 Billion Yuan in Autonomous Driving Computing Power Over 5 Years
    Huawei to Invest Up to 80 Billion Yuan in Autonomous Driving Computing Power Over 5 Years China’s Huawei is sharply increasing investment in smart driving technology, aiming to expand its influence in China’s electric-vehicle market as a supplier of autonomous driving systems rather than a carmaker. According to Reuters on the 24th, Huawei Senior Vice President Jin Yizhi said at an event in Beijing that the company will invest 70 billion to 80 billion yuan ($13.6 trillion to $15.5 trillion won) in computing power over the next five years. The event was held ahead of China’s largest auto show, which opens on the 25th. Huawei plans to invest 18 billion yuan ($3.5 trillion won) globally this year in research and development for smart driving technology. Of that, 10 billion yuan ($1.9 trillion won) will be allocated to training computing power to process large-scale driving data and further develop in-vehicle artificial intelligence models. Huawei does not build finished vehicles. Instead, it supplies automakers with smart driving systems, intelligent cockpit technology and operating systems. Over the past four years, it has emerged as a key supplier in China’s smart electric-vehicle market. Reuters reported Huawei showcased 38 vehicle models equipped with its smart driving and intelligent cockpit systems at the event, with partners including Audi and Toyota. Huawei also unveiled a new Qiankun (乾崑) ADS advanced driver-assistance system. ADS is the company’s core smart driving technology, designed to help vehicles detect their surroundings and assist with lane changes, parking and highway driving. The system is set to be installed in the Epikland X9 sport utility vehicle developed with Dongfeng Motor, Reuters said. Automotive-related revenue is rising quickly. Reuters reported Huawei’s automotive revenue reached 45 billion yuan ($8.7 trillion won) in 2025, up 72% from a year earlier, far outpacing the company’s overall revenue growth of 2.2%. That suggests the auto business has become a new growth engine since U.S. sanctions. Competition in China’s auto industry is also shifting from EV pricing to AI features. Reuters said that in line with the Chinese government’s “AI Plus” push, companies including Xpeng, Xiaomi and Huawei are emphasizing in-car AI functions, such as voice commands for destinations and driving preferences and operating systems that adjust features based on a driver’s condition and usage patterns.* This article has been translated by AI. 2026-04-24 16:34:36