Journalist
Lee Hugh
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Korea's March producer price surge by steepest in nearly four years SEOUL, April 22 (AJP) - South Korea’s producer prices surged at their fastest monthly pace in nearly four years in March, driven by supply-chain disruptions stemming from an energy shock triggered by the outbreak of war in the Middle East, coupled with a global semiconductor shortage, in a prelude to a broader spike in inflation. The Bank of Korea (BOK) reported on Wednesday that the Producer Price Index (PPI) rose 1.6 percent from the previous month, the sharpest increase since June 2022. On an annual basis, the index climbed 4.1 percent, signaling a potential bump-up in consumer inflation after a two- to three-month lagged pass-through. The spike was primarily driven by industrial goods, which rose 3.5 percent on month. Energy-related products bore the brunt of geopolitical volatility following the blockade of the Strait of Hormuz, with coal and petroleum prices skyrocketing 31.9 percent, the highest since December 1997, when the country was in a bailout crisis. Naphtha and diesel prices soared 68.0 percent and 20.8 percent, respectively. Chemical products also felt the heat from rising raw material costs, climbing 6.7 percent as prices for key inputs such as ethylene and xylene jumped significantly. The technology sector added to cost pressures on the manufacturing front. Prices for computers, electronics and optical instruments rose 4.1 percent, led by a staggering 101.4 percent surge in computer memory and an 18.9 percent increase in DRAM prices. Agricultural and fishery prices offered slight reprieve, falling 3.3 percent. Seasonal factors led to sharp declines in the prices of strawberries and onions, which dropped 42.5 percent and 53.4 percent, respectively, partially offsetting the broader industrial gains. The underlying data suggest deepening cost pressures across the supply chain. The domestic supply price index rose 2.3 percent, while the cost of imported raw materials surged 5.1 percent. The total output price index, which includes exports, rose 4.7 percent, bolstered by a 14.6 percent spike in export prices of industrial goods. This was exacerbated by continued weakness in the Korean won, which averaged 1,493.83 against the U.S. dollar in March — the fourth-lowest monthly average on record. The rapid cost buildup presents an immediate challenge for new BOK Governor Shin Hyun-song. During his inauguration on Tuesday, Shin identified stabilizing prices as his top priority, warning that “rising international oil prices are simultaneously exerting upward pressure on inflation and downward pressure on economic growth.” 2026-04-22 07:28:18 -
Seo In-young Recalls Peak Fame: ‘I Did Eight Schedules a Day, Even by Helicopter’ Singer Seo In-young looked back on her busiest years at the height of her career. A preview clip for tvN’s “You Quiz on the Block” was uploaded Monday to the show’s official channel. Seo said she was “really busy” during her peak and added, “If you told me to go back, I could never do it.” Host Yoo Jae-suk said Seo’s breakout with “Cinderella” made headlines, down to her “choco songi” hairstyle. Seo said she was grateful for the memories but slept about two hours a day. She said she also studied while filming the variety show “KAIST,” adding that she was told she would be cut if she did not study. She said the work felt “almost real,” as she filmed “We Got Married” and, with her boss eager for more, did as many as eight event appearances in a day. “I even took a helicopter to get to schedules,” she said, adding that she was so busy she had no time to enjoy the feeling of success. Seo debuted in 2002 as a member of the girl group Jewelry and later released hits with the group and as a solo artist, including “One More Time” and “Cinderella.” She also gained popularity for her candid appeal on programs including MBC’s 2008 variety show “We Got Married.”* This article has been translated by AI. 2026-04-22 07:27:18 -
Korea’s Financial Regulator Plans Major Hiring as KOSPI Sets Record High ◆Aju Economy Top Stories ▷At least 70 hires planned this year as a bigger, more powerful FSS expands -According to the financial industry on the 21st, South Korea’s Financial Supervisory Service recently completed selection of 40 experienced hires — 30 certified public accountants and 10 lawyers — and is preparing final placements. It is the largest experienced-hire intake since such recruiting was halted after a 2017 hiring scandal and resumed in 2023. -The FSS also plans additional hiring to strengthen its special judicial police function. FSS Gov. Lee Chan-jin said 30 more personnel would be added. Including that, experienced hiring this year is expected to exceed at least 70 people. -The expansion would push the FSS workforce close to a record high. Total headcount stood at 2,392 as of the end of last year, and is expected to rise above 2,500 if new graduate recruitment proceeds. -An FSS official said, “As President Lee Jae-myung has stressed strict punishment of unfair trading, the presidential office frequently contacts front-line departments,” adding, “This staffing increase is an extension of that policy direction.” -Concerns are also growing as authority expands. Critics point to worries about a gap in investigative oversight tied to changes in the prosecution’s command structure, and unresolved issues of overlapping roles with existing bodies such as joint response teams. ◆Key Report ▷KOSPI retakes highs after two months, sets new record -On the 21st, the KOSPI rose 2.7% and the KOSDAQ gained 0.1%. Despite mixed moves in U.S. stocks the previous session, the rally continued and the KOSPI set a new record, topping the prior 6,307 points. The report said markets appear increasingly accustomed to volatility, with attention shifting from geopolitical risks to fundamentals such as earnings. -Exports for April 1-20, released that day, totaled $50.4 billion — up 49.4% from a year earlier — with semiconductor exports up 182.5%, a record that lifted earnings expectations. News flow about U.S. Vice President J.D. Vance’s departure for a second round of talks and the possibility of participation in Iran talks also supported sentiment, the report said. -Using an unchanged earnings-per-share assumption, the 12-month forward price-to-earnings ratio stood at 7.67 times. The report cited deep-value appeal and expectations for further semiconductor profit growth, with gains led by large caps including SK hynix, up 5.0%, and Samsung Electronics, up 2.1%. ◆Major filings after the close (21st) ▷LS ELECTRIC posts 126.6 billion won in Q1 operating profit, up 45% from a year earlier ▷CSA Cosmic: “Additional acquisition of shares in subsidiary Gentro Group for 2.5 billion won” ▷KG Steel: “Acquisition of Daehan Electric Wire shares worth 110 billion won; stake 4.9%” ▷Bukwang Pharmaceutical Q1 operating profit plunges 63%; “impact of expanded outsourced production” ▷KB Financial makes voluntary information-security disclosure; “strengthening financial consumer protection” ◆Fund flows (as of the 20th, excluding ETFs) ▷Domestic equity funds: 53.4 billion won ▷Overseas equity funds: -23.1 billion won ◆Key events today (22nd) ▷South Korea: Producer Price Index (March) ▷United Kingdom: Consumer Price Index (March), Producer Price Index (March) ▷Eurozone: Consumer confidence (April) ▷Bonds: U.S. Treasury auctions for 5-year and 20-year notes* This article has been translated by AI. 2026-04-22 07:00:43 -
South Korea’s March Producer Prices Rise 1.6% as Oil Products Jump 31.9% A sharp rise in international oil prices driven by the war in the Middle East pushed South Korea’s producer prices higher for a seventh straight month. The Bank of Korea said on the 22nd that the producer price index for March came to 125.24, up 1.6% from the previous month. It was the biggest monthly increase since April 2022, when the index also rose 1.6%. Producer prices have increased each month from September last year through March. By category, agricultural, forestry and fishery products fell 3.3% from February, led by declines in agricultural products (-5.0%) and livestock products (-1.6%). Manufacturing products rose 3.5% on higher oil prices. Coal and petroleum products surged 31.9%, the steepest increase since December 1997 (57.7%). Prices for electricity, gas, water and waste edged down 0.1% as industrial city gas fell 3.0%. Services were unchanged: restaurant and lodging services rose 0.1%, while transportation services slipped 0.2%. Among major items, naphtha jumped 68.0% from February and diesel rose 20.8%. Computer memory devices climbed 101.4%, and DRAM increased 18.9%. DRAM prices were up 261.4% from a year earlier. The domestic supply price index rose 2.3% in March from the previous month, driven by gains in raw materials (5.1%) and intermediate goods (2.8%). Domestic shipments of raw materials fell 2.0%, but imports rose 7.3%. For intermediate goods, domestic shipments and imports increased 2.4% and 4.9%, respectively. The total output price index rose 4.7% from February as manufacturing products increased 7.9%. Exports and domestic shipments of manufacturing products rose 14.6% and 3.5%, respectively. The central bank said the Middle East war’s inflationary impact is expected to extend into April. Lee Moon-hee, head of the BOK’s price statistics team, said that after international oil prices surged in March, the average price so far in April has fallen from the previous month’s average. Still, he said the impact of raw material prices that rose before March is expected to spread gradually and add upward pressure to producer prices.* This article has been translated by AI. 2026-04-22 06:05:37 -
Korea Faces Record 91 Trillion Won Corporate Bond Maturities as Rates Rise Corporate bond maturities due this year are expected to exceed 91 trillion won, a record that is pushing companies to prioritize refinancing over new investment. If the policy rate rises in the second half of the year, interest costs could jump further, raising concerns about weaker investment and hiring and broader financial-market stress. The Korea Financial Investment Association said that as of Monday, corporate bonds maturing this year totaled 91.2262 trillion won. That is the highest level since the data series began, up 12.3295 trillion won from last year’s 78.8967 trillion won. Maturities in the first half amount to 57.8962 trillion won, or 63.4% of the total, concentrating repayment pressure early in the year. Much of the debt was issued in 2020 and 2021, when ultra-low rates of about 1% to 2% enabled companies to raise large sums to secure liquidity. Since then, the market backdrop has shifted with policy-rate increases and Middle East-driven geopolitical risks, leaving firms to refinance those bonds at far higher rates. With the Bank of Korea’s rate-cutting stance effectively over, upward pressure on rates has returned amid external factors including the possibility of a supplementary budget and a sharp rise in Japanese government bond yields. As of March 23, yields on three-year AA- rated corporate bonds rose to 4.197%, while BBB- rated bonds climbed to 9.979%. Markets increasingly expect the central bank could raise the policy rate once or twice in the second half of the year. That would likely push refinancing rates higher and add to companies’ interest burdens. As funding conditions tighten, companies are focusing on short-term liquidity rather than expansion. Rising demand for working capital suggests firms are emphasizing survival over growth. Higher interest costs are likely to squeeze research and development and capital spending, undermining competitiveness over the medium to long term. If that is compounded by reduced hiring and smaller performance bonuses, household income and consumption could also weaken, raising the risk of a negative cycle. The strain is expected to be heavier for mid-sized and small businesses. Large companies may refinance more steadily thanks to cash holdings and stronger credit, but lower-rated firms, including those rated BBB or below, and many mid-sized and small companies could face a credit crunch that makes funding difficult. If refinancing fails or borrowing costs surge, some companies could face liquidity crises. Policy factors are adding to the pressure. As the government encourages greater shareholder returns, companies face interest-payment burdens alongside demands for dividends and share buybacks, highlighting a dilemma between financial soundness and shareholder payouts. Analysts say the path of interest rates could turn corporate debt into a broader drag on the economy. If rate hikes materialize in the second half, higher interest costs could deliver a combined shock that restrains investment, employment and consumption. Jung Hwa-young, a research fellow at the Korea Capital Market Institute, said, “For lower-credit companies, interest expenses can rise quickly when profitability and financial soundness deteriorate.” She added, “Authorities need to closely monitor funding conditions for vulnerable firms and respond in a timely way to market instability.” * This article has been translated by AI. 2026-04-22 06:04:31 -
Korean Firms Shift From Investment to Debt Repayment as Rate Volatility Rises Korean companies are taking a more defensive stance, choosing to repay debt rather than invest for future growth. With Middle East-driven geopolitical risks adding to interest-rate volatility, corporate profitability and financing conditions have worsened at the same time. Economists warn that a pullback by businesses could slow growth and add downward pressure across the broader economy. Companies repay debt instead of tapping the bond market early in the year According to the Bank of Korea on April 21, the corporate bond market posted net redemptions of 6.4 trillion won from January through March. That marked a shift from net issuance in the same period in 2024 and 2025. Early in the year typically brings an “early-year effect,” when companies issue bonds to secure funding for annual business plans, helped by fresh allocations from institutional investors and relatively favorable borrowing terms. This year, however, companies focused on paying down debt even during the usual funding window, underscoring heightened caution. The backdrop has been unpredictable external risks. Government bond yields have continued to rise this year, while war in the Middle East has pushed up international oil prices and the exchange rate, adding to cost pressures. Markets have also priced in the possibility that the central bank could raise its policy rate to curb inflation, sending sovereign yields sharply higher. In March, the three-year government bond yield climbed to 3.617%, a move that appeared to reflect expectations of at least two rate hikes. As uncertainty has grown, companies have been prioritizing “survival” — cutting interest costs and building cash — over expansion financed by borrowing. The concern is that this caution could weigh on the broader economy. If corporate investment falls, hiring could weaken, which could then reduce household spending and further hurt domestic demand. Restarting growth momentum once it cools can take significant time and cost. Business sentiment weakens, raising risk of a negative investment cycle Business indicators are already reflecting unease. The Bank of Korea said the all-industry Corporate Business Sentiment Index, or CBSI, for March slipped 0.1 point from the previous month to 94.1. The CBSI is calculated from key Business Survey Index components — five for manufacturing and four for nonmanufacturing — with 100 as the baseline; readings above 100 indicate optimism and below 100 pessimism. April outlook readings, when the spillover from the Middle East war is expected to become more pronounced, deteriorated further. The April CBSI outlook fell 3.0 points month over month to 95.9 for manufacturing and dropped 5.6 points to 91.2 for nonmanufacturing. The declines were the steepest since January last year, following the “emergency martial law incident” in December 2024, when manufacturing fell 3.8 points and nonmanufacturing dropped 9.7 points. Measures of profitability also weakened. The profitability BSI for March fell 3 points from the previous month to 73, and the next-month outlook (70) plunged 9 points. Sentiment on funding conditions also worsened: the funding conditions BSI edged down 1 point in March to 79, while the April outlook came in at 77, down 3 points from the prior outlook reading of 80. Such pressure on profits and funding is likely to translate into weaker investment. The facilities investment execution BSI slipped from 95 for March’s outlook to 94 for April, signaling companies may scale back capacity expansion or new projects. The Bank of Korea has previously said Korea’s slowing growth is rooted in weak corporate investment. Lee Jong-ung, deputy head of the BOK’s survey and research team, said, “The slowdown in growth after the economic crisis stemmed from weak investment due to deteriorating corporate profitability and the failure of self-correcting mechanisms to function smoothly,” adding, “Weak corporate investment is driven less by financing constraints than by a fundamental decline in profitability.”* This article has been translated by AI. 2026-04-22 06:03:18 -
Trump Extends Ceasefire Until Iran Presents Unified Proposal U.S. President Donald Trump said on April 21 local time that he would extend a ceasefire until Iran’s leadership and negotiating team present a unified proposal. In a statement posted on his social media platform, Truth Social, Trump said he had received a request to hold off on attacks “based on the fact that the Iranian government is seriously divided and at Pakistan’s request,” until Iran’s leadership and delegation put forward a single proposal. He added that he would extend the ceasefire until Iran submits its proposal and talks conclude “one way or the other.” Trump said the maritime blockade on Iran would remain in place and that other readiness measures would continue.* This article has been translated by AI. 2026-04-22 06:00:18 -
China’s EV Market Tilts to Local Brands, Testing Hyundai’s Comeback Strategy China’s electric-vehicle market is rapidly consolidating around domestic brands, leaving even Tesla and Germany’s top automakers — Mercedes-Benz, BMW and Volkswagen — struggling. Hyundai Motor’s renewed push into China is now being tested. According to the China Association of Automobile Manufacturers on April 21, China produced 34.53 million vehicles last year, up 10.4% from a year earlier. Over the same period, sales of new-energy vehicles — including EVs and hybrids — totaled 16.49 million, meaning one out of every two new cars sold was an electrified model. Chinese policymakers and industry moved quickly toward electrification, judging it would be difficult to catch up with the U.S., Europe and Japan in internal-combustion technology. Backed by strong government support, domestic automakers have sharply increased market share. BYD has begun applying its autonomous-driving system, branded “God’s Eye,” across its lineup this year. BYD Chairman Wang Chuanfu pledged that “all customers” would be able to use smart driving. Huawei, Xpeng and others are also using deep-learning, end-to-end systems to absorb real-world urban driving data. Features such as driving in autonomous mode on certain routes and the car finding a parking space and stopping on its own have become commonplace. Domestic brands’ share of China’s auto market rose to 69.5% last year, up 4.3 percentage points from the previous year. BYD (14.7%) and Geely (11%) further solidified their top-two positions, while Volkswagen Group (10.9%) slipped to third. Tesla’s Shanghai plant shipments fell 7% from a year earlier to 851,732 vehicles. China’s advantage is often described as economies of scale. Automakers expanded production on the back of domestic demand, strengthening price competitiveness. A Bank of Korea report published this month, titled “Review of the Key Drivers of Growth in China’s Auto Industry,” said China supplemented core technologies such as engines and transmissions through cooperation with Western manufacturers. Instead, it focused investment on areas where it holds an edge, including batteries, electric motors and rare earths. The report said this helped lower production costs and build a structure able to respond flexibly to policy shifts. Hyundai’s latest bid comes amid that shift. This month, at Hyundai Motorstudio Beijing, the company formally announced the Ioniq brand’s entry into China and unveiled two concept cars. In a market far different from the earlier, combustion-engine era, Hyundai must find a way to compete with domestic giants while also facing established global brands.* This article has been translated by AI. 2026-04-22 05:05:24 -
Hyundai Bets on IONIQ EVs and Self-Driving Tech to Rebuild in China China is the world’s largest auto market, with about 25 million new vehicles sold a year, and Hyundai Motor Group is trying to regain ground there. The company is now leaning on its IONIQ electric-vehicle brand, after past missteps in reading China’s fast-changing demand. Industry officials said China’s shift to electrification is moving quickly, with electric vehicles accounting for about 50% of new-car sales. Hyundai, citing that trend, decided to deploy IONIQ models designed to match Chinese consumer preferences. Two China-focused concept vehicles unveiled earlier this year in Beijing — the “Venus Concept” and “Earth Concept” — highlight the approach. They feature a gold color favored by Chinese buyers, a futuristic design and an SUV-oriented lineup. A Hyundai official said the vehicles were planned “from the beginning” to reflect Chinese lifestyles and that the company introduced a new naming system, different from existing IONIQ conventions, using “planets” as the motif. Hyundai also outlined a China-centered technology roadmap. It is working with Chinese company Momenta to develop locally optimized autonomous-driving technology. It also plans to introduce its first EREV (extended-range electric vehicle) technology in China, taking into account charging infrastructure and long-distance driving conditions. Li Fenggang, general manager of Beijing Hyundai, said the company will complete mass-produced products that “perfectly combine” smart driving favored by Chinese customers with in-cabin UX experiences. Hyundai has previously faced setbacks in localization. As China’s auto market grew under the lead of foreign brands from Germany, Japan and South Korea, Hyundai gained popularity with a “good value” positioning. But it expanded its sedan lineup as demand for SUVs surged and failed to keep pace with Chinese government policies aimed at expanding the EV market. Meanwhile, the competitiveness of Chinese local brands strengthened to the point of challenging Hyundai. Experts said Hyundai needs a multi-layered strategy that reflects structural changes in China’s mobility market. Kim Junseong, an analyst at Meritz Securities, said the old approach of offering China-tailored EVs at low prices is no longer enough, and urged Hyundai to accelerate the launch of autonomous-driving smart cars that can win support from both the government and the market, whether developed independently or through partnerships. Kim Dongyoung, a senior research fellow at the Korea Development Institute, said Hyundai should not view China simply as a market to restore sales, but as a test bed to secure leadership in future mobility. He called for a broader playbook, including working with local companies to learn autonomous-driving technology and improving access to China’s parts suppliers and software ecosystem. 2026-04-22 05:04:30 -
Hyundai Motor Pushes to Rebuild in China as Market Share Stays Below 1% "China is the fastest-moving market. With a humble approach, we will increase production and sales in China." (Chung Euisun, chairman of Hyundai Motor Group, in an interview after a Korea-China business forum in January) Hyundai Motor Group is regrouping as it declares a renewed push into China, a market it says it cannot afford to abandon as the country emerges as the world’s largest future-mobility arena. After a peak near 2 million vehicles a year and a long slide since, the group is betting on China-tailored mobility products that closely reflect local consumer lifestyles. According to the auto industry on Monday, Hyundai Motor and Kia sold 227,000 vehicles in China last year, up 11.8% from a year earlier. Even so, their share of China’s domestic market was 0.9%, remaining below 1% for a 10th straight year — a weak showing for the world’s No. 3 automaker. Hyundai Motor Group entered China in 2002 and hit a high in 2016, selling a combined 1.8 million Hyundai and Kia vehicles. Sales then fell sharply to 1.15 million in 2017 after the THAAD dispute, and dropped to 930,000 in 2019, breaking below the 1 million mark. The decline continued: 510,000 in 2021, 325,000 in 2023 and 203,000 in 2024. Analysts cite multiple factors behind the slump, including misreading market trends, a delayed shift to electric vehicles and insufficient localization. Some also point to lingering negative perceptions tied to an early focus on taxi fleet sales that helped cement an image as a low-priced imported brand. One industry official said that as China’s auto market matured and split quickly into premium and budget segments, Hyundai lost its footing — squeezed by German brands on prestige and by Chinese automakers on price. The official added that while China’s government pushed an EV transition, Hyundai stuck with internal-combustion models, and misjudged demand by focusing on sedans even as rivals expanded sport utility vehicle lineups. Still, expanding its China presence is essential if Hyundai is to rise to the top globally, said Park Cheol-wan, a professor at Seojeong College. “If you win in China, you secure a foundation to win worldwide,” Park said, urging the company to acknowledge past failures and craft strategies to beat Chinese firms in batteries and electric vehicles.* This article has been translated by AI. 2026-04-22 05:03:20