Journalist
Lee Hugh
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Food inflation may be brewing as the dollar–won rate stays at crisis levels SEOUL, November 24 (AJP) - Kalguksu, flour dough cut by knife into noodles and served in a steamy broth, is one of the cheapest comfort meals for Korean office workers on cold winter days. But even this humble bowl is no longer cheap. A serving now averages 9,846 won ($7), up 5 percent from a year ago and more than 50 percent from a decade earlier. It is the latest addition to Korea's growing list of food-flation items, as the soaring dollar–won exchange rate raises the cost of imported ingredients and, eventually, finished products that reach shelves and restaurant tables. The U.S. dollar rose 4.50 won to 1,476.5 on Monday, despite the finance ministry's move to form an emergency FX council with the Bank of Korea and the National Pension Service. The NPS, the country's largest institutional investor, is also one of the biggest structural sellers of won due to its massive U.S. equity holdings. The won has averaged 1,453.9 this month, up 4.6 percent from August, pointing to stronger import-driven inflation pressure heading into the fourth quarter. Headline inflation rose 2.4 percent on-year in October, but pressure was stronger in key categories. Processed foods climbed 3.5 percent, petroleum products 4.8 percent, and dining-out prices 3.0 percent. Economists estimate that a 1 percent increase in the exchange rate typically adds 0.06 percentage point to consumer inflation. Flour prices illustrate the trend. The flour consumer price index jumped from 108.47 in December 2021 to 138.17 in December 2022 after Russia invaded Ukraine. It has since hovered in the 130 range, recording 137.59 in December 2023, 137.43 in December 2024 and 135.33 last month. Some food ingredients have eased since the Ukraine-related spikes. According to the Korea Agro-Fisheries & Food Trade Corporation, cocoa prices fell 41.38 percent from a year earlier to $5,084 per ton on Nov. 21. Raw sugar dropped 39.68 percent, milk 10 percent, wheat 3.57 percent and oats 16.79 percent over the same period. But others remain elevated. Soybeans traded around $412.27 per ton in November, up 12.27 percent from a year ago. Barley edged up 0.49 percent, tapioca starch rose 4.6 percent and Arabica coffee prices climbed 10.48 percent. Because Korea depends heavily on imported inputs, these global price trends pass quickly into local supply chains. Domestic food manufacturers used only 31.9 percent domestic ingredients in 2023, meaning roughly 70 percent of raw materials such as wheat, soybeans, corn, palm oil and raw sugar were sourced from overseas. Producer prices rose 0.2 percent month-on-month in October to 120.82, marking the second straight monthly increase. Import prices, based on the domestic supply price index, climbed to their highest level in 18 months. Household burdens are rising in fuel as well. Nationwide gasoline prices jumped 25.8 won per liter in the third week of November. Seoul posted the highest average at 1,799.1 won per liter, while Daegu averaged 1,706.5 won. International oil markets showed mixed movements. Dubai crude, Korea's benchmark, inched down 0.3 dollar to $64.6 per barrel, while international gasoline prices fell 1.4 dollars to $78.8. The Korea National Oil Corporation said global oil prices eased as the United States proposed a draft peace plan to end the Russia–Ukraine war and markets grew more confident that the Federal Reserve may skip a rate cut in December. However, it warned that domestic pump prices are likely to keep rising due to persistent exchange-rate pressure, despite softer crude. "Import prices no longer work as a double-edged sword as they used to. With the economy essentially running on low blood pressure, interest rates lower than the U.S., and excessive liquidity through vouchers, inflation is now fueled by a weak currency," said Cho Dong-geun, professor emeritus of economics at Myongji University. 2025-11-24 17:28:13 -
Hollywood star Charlize Theron spotted in Seoul's trendy neighborhood SEOUL, November 24 (AJP) - Hollywood actress Charlize Theron was recently spotted in Seoul's trendy areas near Hongik University, crating a buzz among fans here. A video clip posted on social media on Sunday showed Theron dressed in a brown trench-style coat and sunglasses, walking with her daughter without any security guards. The clip went viral immediately. When one fan approached her and asked to take a photo together, Theron smiled and warmly posed with her arm around the fan. Theron's visit to South Korea has not been unknown, but her relaxed outing with her daughter suggests she might be on vacation. An Oscar winner for "Monster" (2003), Theron has starred in many hit films including "The Italian Job" (2003) and "Mad Max: Fury Road" (2015). Her upcoming film "Odyssey" directed by acclaimed filmmaker Christopher Nolan is slated for release here in July next year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 17:15:16 -
Gov't unveils plans to attract global talent, top scientists by 2030 SEOUL, November 24 (AJP) - South Korea unveiled its plans to attract 2,000 foreign experts and recruit 100 top-tier global scientists by 2030 at a meeting held at the government complex in central Seoul on Monday. The meeting was attended by Prime Minister Kim Min-seok, Bae Kyung-hoon, the Minister of Science and ICT and other officials from relevant ministries. The ambitious plans aim to address the declining school-age population amid the country's ultra-low birthrate, as well as the urgent need to nurture talent in the science and engineering sectors to maintain the country's competitiveness in highly advanced technical fields including artificial intelligence (AI). According to the science ministry, the number of those with master's degrees is expected to peak at 63,248 in 2027, while PhD holders are forecast to reach their peak in 2030. Moreover, South Korea is also facing a brain drain, as many students who studied abroad choose not to return home, while homegrown scientists, engineers, AI experts and other skilled professionals are increasingly leaving the country in search of better pay and more opportunities, with just over half or 54 percent of PhD holders choosing to remain. To address these challenges, the ministry plans to select about 100 leading scientists by 2030, around 20 each year, who will receive support to conduct their research here. AI-specialized schools and research centers will be established in partnership with local universities, along with expanded research positions. To attract foreign talent, researchers will be offered salaries and other labor costs of up to 1 billion Korean won (about US$680,000), and a new top-tier visa will allow their spouses to work in South Korea, encouraging long-term stays. The ministry stressed the urgency, saying "The next five years will be critical for addressing the anticipated shortage of science and engineering professionals by 2030." 2025-11-24 16:47:53 -
NPS pushed to front line of FX defense as KRW sinks to crisis levels SEOUL, November 24 (AJP) - South Korea’s fiscal and monetary authorities, constrained in their ability to slow the won’s steep decline, are turning to an unlikely player for relief: the National Pension Service (NPS), the country’s largest institutional investor and one of the biggest structural movers of the dollar–won rate. Working-level officials from the NPS met finance ministry counterparts at the Sejong Government Complex on Monday. In a press statement, the finance ministry said it has formed a joint "council" with the NPS, the Ministry of Health and Welfare that oversees the pension, and Bank of Korea to "monitor" the foreign exchange impact of the fund's overseas investment portfolio. The irony is that the fund is one of the biggest sellers of Korean currency as it finances a record expansion of its overseas portfolio—especially U.S. equities concentrated in the same big-tech and AI names now at the center of global bubble concerns. The dollar has strengthened more than 3 percent over the past month, nearing 1,480 won—a level touched only during extreme stress periods such as the 2009 global financial crisis or this April’s political turmoil. The won’s weakness has persisted even as foreign investors were record buyers of Korean shares last month, only to abruptly reverse course amid renewed fears of overvalued AI stocks in the U.S. Finance Minister Koo Yun-cheol, after meeting with the Bank of Korea governor and top financial regulators earlier this month, underscored the need to “improve structural imbalances” in FX supply and demand. The government has been consulting with major exporters and the NPS to help “smooth” excessive won depreciation. A giant investor—and a structural source of dollar demand Policymakers’ concern centers on the sheer offshore footprint of the NPS, one of the world’s largest institutional investors. As of end-August, the fund managed 1,322 trillion won, with 486.4 trillion won—36.8 percent—allocated to global equities, according to official data. Separate U.S. SEC filings show that U.S. holdings now form the sharpest edge of this exposure. In a Form 13F filed on Nov. 4, the NPS reported $128.8 billion in U.S. equities across 552 companies, up 11.2 percent from the previous quarter as both buying and valuations increased. At the top of its holdings sit Nvidia, Apple, Microsoft, Amazon, and Meta—America’s AI and cloud heavyweights. According to Fintel, the NPS holds roughly 49.6 million Nvidia shares, making it one of the world’s largest institutional shareholders. From the government’s perspective, the NPS is simultaneously a potential stabilizer in the FX market and a structural driver of dollar demand. Korean individuals separately hold $99.85 billion in overseas securities as of September. The NPS features prominently in recent FX-related verbal intervention, but its mission is fundamentally long-term: sustaining retirement payouts in a rapidly aging society. Its mid-term allocation plan calls for a continued increase in overseas and risk assets while trimming domestic bonds to improve returns. Each incremental shift into foreign stocks requires fresh dollar buying—a persistent downward force on the won that no one-off FX operation can meaningfully offset. This dynamic also explains why movements in Korea’s FX reserves remain modest despite recent volatility. Authorities, however, cannot exert too much pressure without inviting accusations of politicizing the nation’s last-resort retirement savings. Still, the combination of record overseas allocation and an AI-heavy portfolio is one of the most sensitive macro-financial issues facing policymakers. Analysts doubt the NPS will bend easily to government wishes. Details of Monday’s meeting remain sealed, but the market’s verdict was clear: the dollar gained an additional 3.9 won to close at 1,475.90. 2025-11-24 16:47:00 -
Bakery chain Paris Croissant to be split into operating, investment entities SEOUL, November 24 (AJP) - South Korea’s SPC Group said Monday it will divide its affiliate Paris Croissant into two separate business and investment entities as part of a corporate restructuring plan approved at a board meeting on Nov. 21. The company began notifying employees of the changes, which it said are intended to streamline decision-making and clarify the responsibilities of Paris Croissant, which also functions as a de facto holding company within the group. A shareholder meeting to finalize the plan will be held before the end of the year, SPC said. As part of the overhaul, Paris Croissant will merge with SPC Co., its wholly owned subsidiary that provides legal, public relations, and compliance support for the group. These functions will continue after the merger. SPC Group emphasized that all employees will remain in their current roles and that there will be no changes to pay, working conditions or benefits. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 16:18:37 -
South Korea's mobile download speeds triple global peers, report shows SEOUL, November 24 (AJP) - South Korea’s telecommunications operators delivered mobile download speeds more than three times faster than those in other major countries last year, according to a report released Monday by the Korea Telecommunications Operators Association (KTOA). Average download speeds across South Korea reached 1,025.52 Mbps in 2024, roughly 3.8 times higher than the 268.01 Mbps average recorded across seven benchmarked countries, the association said. The performance further cemented South Korea’s position as a global leader in mobile network quality. Even compared with the fastest overseas city surveyed — San Francisco, at 501.05 Mbps — South Korea’s download speeds were more than double. Upload speeds in South Korea averaged 90.12 Mbps, about 1.6 times higher than the 53.88 Mbps average overseas. Latency stood at 20.01 milliseconds, less than half the 53.64 milliseconds recorded in the comparison markets, indicating significantly more stable and responsive connections. The report noted that while 5G network quality continues to improve globally, many foreign cities still face coverage limitations, including inconsistent service on subway systems. South Korea also topped international rankings for public Wi-Fi performance. Public hotspots provided an average download speed of 463.55 Mbps, nearly 10 times the 48.26 Mbps average measured abroad. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 15:52:25 -
South Korean man found dead in bag in Viet Nam SEOUL, November 24 (AJP) - The body of a man believed to be South Korean was discovered inside a large bag in Viet Nam, the Ministry of Foreign Affairs said on Monday. According to the South Korean Consulate General there, the body was found inside a large blue bag near a residential area in Ho Chi Minh City the previous day. "We are in close communication with local authorities and will provide necessary consular support," said a ministry official, declining to give further details, citing that "the relevant investigation is ongoing." Local police identified the body as South Korean and cordoned off the area. Two South Korean suspects, who reportedly fled the scene by taxi as bystanders gathered, are being questioned after their arrest. Police are working to determine the time and cause of death as the body was found in a state of decomposition. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 15:17:56 -
Hanwha Ocean hosts Canadian industry chief in bid for submarine project SEOUL, November 24 (AJP) - Canadian Industry Minister Mélanie Joly visited Hanwha Ocean’s shipyard in Geoje on Monday, underscoring Ottawa’s deepening evaluation of Hanwha’s bid in Canada’s 60-trillion-won submarine procurement project. Joly’s trip follows a visit by Canadian Prime Minister Mark Carney on Oct. 30. Although she had originally planned to accompany him, Joly was unable to due to scheduling conflicts, the company said. At the Geoje facility, Hanwha Ocean executives — including CEO Kim Hee-chul — gave Joly a tour of two of its advanced vessels: the newly launched Jang Yeong-sil and Jang Bogo-III Batch II submarines. The visit is seen as a signal that Canada is not only assessing military capability but also weighing broader industrial and economic cooperation. The Canadian industry ministry plays a pivotal role in shaping strategy around industrial policy, supply chains, and the country’s economic security under the Carney government. The submarine procurement project, originally conceived as a defense acquisition, has evolved into a strategic industrial policy initiative. Hanwha Ocean described Joly’s visit as signifying “a deeper evaluation of the project's industrial, technological, and economic feasibility,” distinct from the more symbolic nature of the prime minister’s earlier visit. During Carney’s trip, Hanwha representatives pitched a wide-ranging offer to Canada, covering not just submarines but potential cooperation in defense, space, sustainable energy, and critical minerals. CEO Kim said Joly’s visit “marks the project's transition into a truly competitive phase,” and pledged that Hanwha Ocean would deliver “optimal solutions for the Canadian Navy while acting as a reliable partner for Canada’s industrial growth.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 15:05:02 -
Activist fund presses Stick Investment for succession plan, share buyback SEOUL, November 24 (AJP) - Activist fund Align Partners Capital Management has publicly urged private equity firm Stick Investment to disclose its leadership succession plan and carry out a share buyback. Align, which holds a 7.63 percent stake, released an open letter on Monday demanding that the company present a value-enhancement roadmap by Jan. 19. The fund argued that Stick Investment remains significantly undervalued, noting that its return on equity stood at just 0.3 percent in the 12 months through the third quarter, despite managing more than 10 trillion won in assets. Align said the company’s long operating history, industry networks and investment expertise — a set of “intangible assets” accumulated over 26 years — should support a higher valuation. Align called for internal reforms, including a clear succession plan and a revamped compensation structure. It proposed using half of Stick Investment’s treasury shares to offer stock-linked incentives to future leaders and to attract key talent, with the remaining shares to be canceled to reduce dilution. The activist fund also urged the firm to make greater use of leverage and pursue strategic investments to increase assets under management and expand earnings. It further requested a long-term growth strategy and improvements in board independence and expertise. Align criticized what it described as insufficient communication with shareholders, particularly regarding employee stock compensation involving 22.19 percent of treasury shares issued as restricted stock units. Align said it became a shareholder in February last year and has since held four private meetings and sent five letters to management without meaningful progress — prompting the move to a public campaign. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 14:45:38 -
South Korea boasts fastest mobile download speeds in world SEOUL, November 24 (AJP) - South Korea's three major telecom companies have been found to offer download speeds more than three times faster than those in major countries worldwide. According to a report released by the Korea Telecommunications Operators Association (KTOA) on Monday, their average download speed last year was 1,025.52 megabits per second (Mbps), about 3.8 times higher than the 268.01 Mbps recorded across seven surveyed countries including Japan, Germany, and the U.S. Even compared to the fastest U.S. city, San Francisco, which recorded 501.05 Mbps, South Korea's speeds are more than twice as fast, cementing the country's leading position in telecom service quality. The average upload speed in South Korea was 90.12 Mbps, 1.6 times higher than the surveyed countries' average of 53.88 Mbps. While 5G quality is improving worldwide, South Korea maintains its edge, with some foreign cities still struggling to provide reliable service in areas such as subways. Public Wi-Fi in South Korea also ranks among the best, with an average download speed of 463.55 Mbps—nearly 10 times the average of 48.26 Mbps in other countries. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 14:44:01