Journalist

Kim SeongSeo
  • Minimum Wage Talks Begin in South Korea, With Debate Over Piecework and Differentiated Rates
    Minimum Wage Talks Begin in South Korea, With Debate Over Piecework and Differentiated Rates Deliberations have begun at South Korea’s Minimum Wage Commission on next year’s minimum wage. This year’s talks are expected to feature sharp labor-management clashes not only over the size of any increase but also over who is covered and how the system is applied. Key issues include whether to extend minimum-wage protections to piecework-based workers and whether to set different rates by industry or region. ◆Will platform and nonstandard workers be covered? Labor minister asks for review On the 21st, the Ministry of Employment and Labor said the commission held its first plenary meeting at the Government Complex Sejong. The 27 members representing labor, management and the public interest began full-scale discussions on the minimum wage’s coverage and level. An early flashpoint is the structure of the system itself, particularly whether the minimum wage should apply to piecework workers. The term refers to workers paid based on performance, such as delivery riders and parcel couriers. Labor groups raised the same issue at the commission in 2024, arguing that platform workers and other nonstandard workers should be included. No conclusion was reached then because of disagreements between labor and management and a lack of data. At the request of public-interest members, the government later conducted a fact-finding survey on items such as the target group, scale and income. The issue is expected to move forward this year. Employment and Labor Minister Kim Young-hoon, in a formal request for deliberation, asked the commission to consider “whether to set a separate minimum wage for piecework (or similar) workers for whom it may not be appropriate to set a minimum wage on an hourly, daily, weekly or monthly basis.” Labor argues that as work arrangements diversify, minimum-wage protections should expand. It says the issue can no longer be delayed, particularly because the government’s research was reflected in the minister’s request. Business groups are cautious about expanding coverage. They argue many piecework workers should be viewed as independent business operators rather than employees, and warn that broader coverage could sharply raise labor costs. They also say uniform standards are difficult given varied contract structures. ◆Labor-management fight intensifies over differentiated rates Whether to apply different minimum wages by industry is also emerging as a major issue. Industry-based differentiation was tried once in 1988, the first year the system was implemented, but a single nationwide minimum wage has been maintained since the following year. A vote was held last year as well, but the proposal failed amid strong opposition. Business groups say minimum wages should be differentiated for vulnerable sectors such as food and lodging and transportation, arguing many employers in those industries have limited ability to pay. In 2024, the share of workers paid below the minimum wage in sectors including food and lodging was found to exceed 30%. Labor counters that differentiated rates would undermine the purpose of the system and could lead to structural discrimination. It warns that wages in certain industries could become entrenched, effectively creating a “low-wage benchmark.” Labor also cites concerns about stigmatizing vulnerable sectors and the possibility that differentiation could expand to more industries. Debate is also continuing over regional differentiation. Business groups argue it is unreasonable to apply the same minimum wage nationwide given differences in prices and business conditions between Seoul and other areas. Labor says paying different wages by region is clear discrimination. Some countries, including Japan, apply regional minimum wages, setting higher rates in major cities with higher productivity and prices than in rural areas. Critics, however, say such systems can widen regional gaps and accelerate the decline of provincial areas.* This article has been translated by AI. 2026-04-21 17:53:51
  • South Korea Minimum Wage Talks Begin as Labor, Business Clash Over 2027 Raise
    South Korea Minimum Wage Talks Begin as Labor, Business Clash Over 2027 Raise Labor and business in South Korea began formal negotiations over next year’s minimum wage, setting the stage for a sharp clash over how much it should rise. Labor groups say a sizable increase is needed after three years of raises below 3%. Business groups argue that growing uncertainty at home and abroad calls for a slower pace. The Ministry of Employment and Labor said the Minimum Wage Commission held its first plenary meeting Monday at the Government Complex Sejong. The commission selected Sookmyung Women’s University professor Kwon Soon-won as its new chair, received a wage-review request sent by Employment and Labor Minister Kim Young-hoon on March 31, and discussed the review schedule. During the meeting, members affiliated with the Korean Confederation of Trade Unions walked out in protest of Kwon’s appointment. The minimum wage system, introduced in 1988, has generally trended upward. The minimum wage for 2026, set last year, rose 2.9% (290 won) from the previous year to 10,320 won an hour, up 59.5% from 2017’s 6,479 won. Labor groups say the latest increase was the lowest for a first year under any administration, and they cite a decline in real wages. Over the past three years, the minimum wage rose an average of 2.4%, while consumer prices increased 2.7% over the same period, they said. Ryu Gi-seop, secretary-general of the Federation of Korean Trade Unions, said the minimum wage is failing to perform its basic role of income protection and redistribution. He also said the number of low-wage workers in the labor market has been growing each year, underscoring the need for an increase. Business groups pushed back, saying the burden on small merchants is heavy as domestic demand recovery remains delayed and uncertainty has intensified, including due to the war in the Middle East. They also pointed to severe debt levels among the self-employed and called for moderation. Ryu Gi-jeong, executive director of the Korea Employers Federation, said self-employed people already carry debt equal to 3.4 times their annual income as of the third quarter of last year. He said the economic shock from the Middle East war is spreading broadly and that the wage decision should reflect employers’ ability to pay. By law, the commission is supposed to finish deliberations within 90 days of the minister’s request, meaning by June 29. However, the deadline is advisory and is often missed, raising expectations that talks could run into early July this year as well. Kwon urged labor, management and the public interest members to keep talking through their differences. He called for intensive deliberations so the minimum wage can be set at a reasonable level despite sharply divided views.* This article has been translated by AI. 2026-04-21 17:52:34
  • Number of EVs tops 1 million in cumulative registrations
    Number of EVs tops 1 million in cumulative registrations SEOUL, April 21 (AJP) - The number of registered electric vehicles this year has surpassed 100,000 as of last week, bringing cumulative registrations to more than 1 million, the Ministry of Climate, Energy and Environment said on Tuesday. The milestone is coming faster than in previous years, as it took until early July to hit 100,000 registrations last year, and until mid-September a year earlier. Until March, EVs accounted for about 20 percent of new vehicle registrations, or 83,533 units out of 415,746, much higher than 13 percent in 2025 and 8.9 percent in 2024. The ministry attributed the increase to a wave of new models, fiercer price competition among automakers, expanded government subsidies, and incentives for those switching from internal combustion vehicles. Some market watchers also pointed to surging fuel prices due to supply disruptions caused by the prolonged conflict in the Middle East. The trend is likely to continue, as the government's supplementary budget will extend subsidies to an additional 20,000 passenger cars and 9,000 trucks, bringing this year's estimated total to 280,000 passenger cars, 45,000 trucks, and 3,800 buses. "This year will be recorded as a historic year that opens the era of 1 million electric vehicles," said Minister Kim Sung-hwan, vowing that the government will take steps to ensure EV users face no inconvenience. 2026-04-21 15:59:30
  • South Korea EV Registrations Top 1 Million as 2026 New Sales Pass 100,000
    South Korea EV Registrations Top 1 Million as 2026 New Sales Pass 100,000 South Korea’s new electric-vehicle registrations have topped 100,000 this year, pushing cumulative EV registrations above 1 million. The Ministry of Climate, Energy and Environment said Tuesday that new EV registrations surpassed 100,000 on April 14. The pace is faster than in previous years. In 2025, when EV adoption was highest for the year at 220,919 vehicles, new registrations crossed 100,000 in the second week of July. In 2024, with 146,902 vehicles, the milestone came in the second week of September. Cumulative EV registrations exceeded 1 million on April 15. As of April 17, the total stood at 1,004,727. Through March, EVs accounted for 83,533 of 415,746 new vehicles, or 20.1%. The EV share slipped slightly from 9.2% in 2023 to 8.9% in 2024, but rose to 13.0% in 2025. The ministry attributed the increase to a wider range of new models, price discount competition among automakers, expanded subsidies including government support for switching from internal-combustion vehicles, and early implementation of rollout programs. Some observers also cited higher oil prices linked to the recent Middle East situation. The government recently secured additional supplementary-budget funding for EV purchase subsidies covering 20,000 passenger cars and 9,000 trucks. That brings this year’s planned subsidy volumes to 280,000 passenger cars, 45,000 trucks and 3,800 buses. With a growing number of local governments running out of first-half subsidy allocations, the government plans to urge municipalities with remaining second-half volumes to move up their public notices. The municipalities planning to do so number 81 for passenger cars and 75 for trucks. The government also said it will allow local governments that need additional budget allocations to pay subsidies first using national funds. Minister Kim Seong-hwan said, “This year will be recorded as a historic year that opens the era of 1 million electric vehicles,” adding that the government will pursue “effective and swift measures” so the public does not face inconvenience in using EVs. 2026-04-21 14:06:06
  • South Korea’s Exports Jump 49.4% in Early April on Chip Surge; Crude Imports Rise for Third Month
    South Korea’s Exports Jump 49.4% in Early April on Chip Surge; Crude Imports Rise for Third Month Semiconductor strength pushed South Korea’s exports through mid-April to the highest level ever recorded for that point in the month, while crude oil imports rose for a third straight month amid the war in the Middle East. The Korea Customs Service said Monday that exports for April 1-20 totaled $50.4 billion on a customs-clearance basis, up 49.4% from a year earlier. With the same 15.5 working days as last year, average daily exports came to $3.25 billion. Semiconductors led the gains. Chip exports rose 182.5% to $18.3 billion, lifting their share of total exports to 36.3%, up 17.1 percentage points from a year earlier. Exports of petroleum products climbed 48.4%, and computer peripherals surged 399.0%. Passenger car exports fell 14.1%, and auto parts declined 8.8%. By destination, exports increased to China (up 70.9%), the United States (51.7%), Vietnam (79.2%), the European Union (10.5%) and Taiwan (77.1%). Imports for the period totaled $39.9 billion, up 17.7%. Imports rose for semiconductors (58.3%), crude oil (13.1%) and semiconductor manufacturing equipment (63.3%), while machinery slipped 0.6%. Energy imports — crude oil, gas and coal — increased 6.8%. Crude oil imports for April 1-20 rose to $4.8 billion, extending gains from February ($4.4 billion) and March ($4.6 billion). With exports exceeding imports, South Korea posted a $10.4 billion trade surplus for the period. 2026-04-21 13:46:25
  • South Korea Says Kuwait Force Majeure to Have Limited Impact; Russian Oil Imports Unlikely
    South Korea Says Kuwait Force Majeure to Have Limited Impact; Russian Oil Imports Unlikely The government said Kuwait’s declaration of force majeure on crude oil and petroleum product exports is unlikely to have a major impact on South Korea, and it sees little chance of bringing in additional Russian crude or petrochemical products despite a temporary easing of U.S. sanctions. Yang Gi-uk, director general for industrial resources and security at the Ministry of Trade, Industry and Energy, said at a Middle East war response task force briefing on the 21st that some domestic refiners under contract had been notified of Kuwait’s move. “With the Strait of Hormuz blocked since the Middle East war, force majeure will not affect us,” Yang said. Kuwait Petroleum Corp., the state-run oil company, sent letters to counterparties on the 16th notifying them it was invoking a force majeure clause. The company said the blockade of the Strait of Hormuz has prevented tankers from entering and leaving the Persian Gulf, making it difficult to meet scheduled deliveries on time. Yang said the declaration appeared tied to contract procedures as April loading dates were ending, rather than damage to refining facilities. He added that if the strait remains blocked, Kuwait could declare force majeure again for subsequent volumes. Officials also played down the likelihood of additional imports of Russian crude and petrochemical products following U.S. sanctions relief. The United States on the 17th (local time) extended a further one-month easing of sanctions related to exports of Russian crude and petroleum products. While any related transactions must be completed within a month, refiners and others have secured 70 million barrels of alternative supplies through the end of May. Yang said some risk had been reduced by the U.S. move, but “EU risk remains.” He said interest is low because domestic vessels often rely on EU insurers, creating additional exposure. On additional naphtha imports, Yang said companies are reviewing volumes based on experience from last month’s sanctions easing, but are also seeking alternative supplies. “We do not see companies rushing in as if their survival depends on it,” he said. Regarding the fourth round of the oil products price cap set to take effect at midnight on the 24th, Yang said it was an emergency measure chosen amid unstable global oil prices. He said the government is preparing to make decisions by weighing household economic conditions, the fiscal burden, demand reduction and consumption patterns by fuel type. The ministry said Japan’s gasoline prices are 23.8% lower than South Korea’s and diesel prices are 28.3% lower. In the United States, gasoline prices are 20.8% lower, but diesel prices are 8.7% higher. Yang said Japan is believed to be deploying subsidies on a massive scale, while the United States has seen larger price increases than South Korea. He said South Korea should assess whether other countries are suppressing prices through caps by reviewing overseas cases. Asked about speculation that gasoline prices could rise more sharply to manage demand, Yang said gasoline and diesel consumption are moving differently and it is difficult to discuss price increases or cuts now. He said a decision would be made after considering various views. On a Malta-flagged tanker that recently exited the Strait of Hormuz and is heading to South Korea, Yang said it was not among the seven tankers in the Persian Gulf previously announced by the ministry. He said it had been excluded because the government judged the likelihood of receiving the cargo to be low, calling it “a highly exceptional situation.” 2026-04-21 11:33:19
  • Nearly 3 million barrels delivered to refiners in first week of oil swap program
    Nearly 3 million barrels delivered to refiners in first week of oil swap program SEOUL, April 7 (AJP) - About 2.8 million barrels of crude oil have been supplied to refiners just a week after the launch of an "oil swap" program, which lends government-owned stockpiles to help them secure alternative supplies, the Ministry of Trade, Industry and Energy said on Tuesday. At a daily briefing at the government complex in the administrative city of Sejong, Yang Gi-uk, a ministry official, said the country's four major refiners had applied to swap more than 30 million barrels of crude oil, with two deals completed under which about 2.8 million barrels have already been delivered. "With at least four additional contracts scheduled for this week, total swapped volumes are expected to reach about 8 million barrels by the end of the week," Yang added. The program was launched on March 31 to ease supply disruptions by lending government oil reserves to refiners, who will be required to replenish them once they have secured their own supplies. Under the program, refiners who have faced difficulties importing Middle Eastern crude due to the closure of the Strait of Hormuz is able to secure substitute supplies. The program was launched on March 31 to ease supply disruptions by lending government oil reserves to refiners, which are required to replenish them once they secure their own supplies. Under the program, refiners facing difficulties importing Middle Eastern crude due to the closure of the Strait of Hormuz can secure alternative supplies. Meanwhile, the government has secured about 50 million barrels of alternative oil supplies for April and about 60 million barrels for May, equivalent to roughly 60 percent and 70 percent of typical levels, with supplies sourced from countries including Australia, Brazil, Saudi Arabia, the United Arab Emirates and the U.S. Naphtha supplies are also at about 70 percent of normal levels. "Imports of light naphtha stood at roughly 1.16 million tons last year, while expected imports for April are about 770,000 tons. Factoring in approximately 1.1 million tons produced domestically, overall supply is at more than 80 percent of typical levels," Yang said. Stressing the need to ensure a steady naphtha supply, he said the ministry will seek additional sources through measures financed by a supplementary budget. The ministry, however, said that key raw materials are being supplied stably despite surging petroleum prices and shortages of some packaging materials, pledging to keep monitoring high-demand items such as packaging for instant noodles and powdered milk, as well as trash bags. 2026-04-07 14:45:30
  • More companies voluntarily join efforts to save energy amid skyrocketing oil prices
    More companies voluntarily join efforts to save energy amid skyrocketing oil prices SEOUL, April 7 (AJP) - More companies are voluntarily joining energy-saving efforts including alternating vehicle use as part of measures to cope with energy shortages amid the prolonged conflict in the Middle East, the Ministry of Climate, Energy and Environment said on Tuesday. Major conglomerates such as CJ, GS, Hanwha, HD Hyundai, Hyundai Motor, Lotte, Samsung, SK, and POSCO are requiring employees to leave their cars at home once a week depending on the last digit of their license plates. The country's five major banks - Hana, KB Kookmin, NH NongHyup, Shinhan, and Woori - are also implementing similar measures. Business lobbies such as the Korea Chamber of Commerce and Industry, the Korea Employers Federation, and the Korea International Trade Association have also followed suit. According to the ministry, about 50 large and mid-sized companies including universities and other private institutions are taking part in these energy-saving efforts, just about a week after state-run agencies and public institutions took the lead late last month. Civil servants and staff at public institutions, previously mandated to leave their cars at home one day per week since March 25, are now required to commute by public transportation every other day starting from Wednesday. About 50 refiners, petrochemical companies, and others heavily reliant on petroleum have also pledged to reduce energy consumption, with plans to cut usage this year by 3.3 percent or 130,000 tons of oil equivalent from last year's 3.93 million toe. The 130,000 toe is equivalent to about 610 gigawatt-hours of energy, roughly the amount of electricity generated by a nuclear power plant operating for about a month. The ministry also plans to support companies that meet their reduction targets by subsidizing the installation of energy-saving facilities. Many workers are also participating by turning off lights during lunch breaks, using stairs instead of elevators, carpooling, or riding bicycles. "It is encouraging to see many companies and organizations voluntarily join despite difficulties caused by high oil prices," said Park Deok-yeol, a ministry official, vowing to further expand energy-saving efforts. 2026-04-07 09:14:00
  • South Korea launches oil swap program for refiners amid Middle East supply disruptions
    South Korea launches oil swap program for refiners amid Middle East supply disruptions SEOUL, March 31 (AJP) - South Korea is implementing an "oil swap" program that lends government-owned stockpiles to refiners to help them secure alternative oil supplies, the Ministry of Trade, Industry and Resources said Tuesday. At a daily briefing at the government complex in the administrative city of Sejong, Yang Gi-uk, a ministry official, said the government is "releasing stockpiles" for refiners. Yang said Middle Eastern crude makes up the largest share of the government's stockpiles, and that South Korea holds more than 20 million barrels, which he said should be sufficient. The program aims to ease supply disruptions by lending government oil reserves to refiners, who will be required to replenish them once they have secured their own supplies. Under the program, which runs for two months and could be extended if necessary with the ministry's approval, refiners, who have faced difficulties importing Middle Eastern crude due to the closure of the Strait of Hormuz, will be able to secure substitute supplies. Monthly settlements will be calculated based on price differences between government stockpiles and refiners' secured supplies. Amid supply disruptions from the Middle East, most refiners have turned to Africa, Australia, Central Asia, and the Americas for oil , with shipments taking 14 to 50 days. According to the ministry, the country's four major refiners have applied for the program, with a decision to be made after the Korea National Oil Corporation verifies their applications and assesses feasibility before releasing stockpiles. 2026-03-31 15:14:51
  • Seoul enforces ban on naphtha exports for 5 months amid supply crunch
    Seoul enforces ban on naphtha exports for 5 months amid supply crunch SEOUL, March 27 (AJP) -South Korea will keep domestic naphtha at home after its shortage from the widened conflicts in the Middle East has crippled a cracking facility, sending downstream ripples across factory floors to plastic delivery bags and cartons. The Ministry of Trade, Industry and Energy on midnight Friday issued a gazette enforcing ban on naphtha exports immediately for five months as a part of a package of "wartime" measures that included deeper and longer cuts to fuel tax and supplementary budget. Naphtha is an essential feedstock for producing petrochemical materials used by industries including semiconductors and autos. South Korea relies on imports for 45 percent of domestic demand, and supplies from the Middle East — which account for 77 percent of imports — have been disrupted by the war, the ministry said. The government previously supported efforts to secure alternative import sources, including those from Russia after Washington lifted some sanctions, and designated naphtha as an economic security item, making it eligible for low-interest financing through a supply chain fund. As the situation dragged on, it moved to stronger steps, including shifting restricted export volumes to the domestic market and banning hoarding. Under the notice, exports of all naphtha are restricted in principle, with exceptions allowed only with approval from the industry minister. Naphtha businesses (refiners) and users (petrochemical companies) must report daily to the ministry on production, imports, use, sales and inventories. Hoarding is prohibited. If a naphtha business’ weekly shipment ratio drops by more than 20 percent from 2025 without a reasonable explanation, the minister can order steps such as adjusting sales and inventories. The government can also order refiners to produce naphtha and take supply-adjustment measures to ensure naphtha produced domestically or brought in from overseas is supplied to specific petrochemical companies. According to industry minister Kim Jung-kwan, “Because naphtha is a basic raw material that supports South Korea’s industry, the government will secure as much volume as possible through support for overseas procurement.” He urged cooperation so that naphtha and related petrochemical products are distributed and managed in line with the purpose of the new notice. “The government will supply naphtha as a top priority so there is no impact on health care, key industries and the production of essential goods,” Kim added. The emergency step comes as supply disruptions have already begun to hit production lines. One of the country’s largest naphtha cracking centers has been forced to halt operations due to feedstock shortages, according to industry sources, amplifying concerns over a broader shutdown across the petrochemical chain. The shock is cascading into everyday goods. Plastic processors and packaging firms are reporting delays in securing raw materials, while distributors warn of tightening supplies of garbage bags and industrial films, echoing early signs of hoarding in retail channels. Seoul is also weighing more controversial options to plug the supply gap. Officials said the government is in talks with industry players over the possibility of resuming imports of Russian crude oil and naphtha, a move that would require easing sanctions imposed after Moscow’s invasion of Ukraine. South Korea halted Russian crude imports in December 2022, though the country previously relied on Russia for about 5.6 percent of its crude supply. Since then, dependence on the Middle East has deepened, leaving the economy more exposed to disruptions around the Strait of Hormuz — a chokepoint through which roughly 70 percent of the country’s crude and about half of its naphtha imports pass. Finance Minister Koo Yun-cheol earlier signaled the shift toward more interventionist policy, describing the export curb and stockpiling controls as necessary to stabilize supply chains under what the government views as wartime conditions. Whether the measures can fully contain the fallout remains uncertain. Without a de-escalation in the Middle East, industry officials warn that shortages could persist, raising the risk of prolonged disruptions not only in petrochemicals but across manufacturing sectors that rely on plastic and synthetic materials as foundational inputs. 2026-03-27 07:29:30