Korea to dispatch veterinary medicine trade mission to Chile, Mexico SEOUL, July 11 (AJP) - South Korea is sending a trade delegation to Chile and Mexico next week in a bid to expand exports of veterinary medicines and deepen agricultural ties. The Ministry of Agriculture, Food and Rural Affairs announced it will lead a mission from July 12 to 21 aimed at opening new export channels for South Korean veterinary drugs, including antibiotics and vaccines used in livestock, pet care, and aquaculture. Representatives from the Korea Animal Health Products Association and four major pharmaceutical manufacturers — Green Cross Veterinary Products, Dae Sung Microbiological Labs, Median Diagnostics, and Woogene B&G — will join the delegation. “We will promote the excellence of South Korean veterinary medicines in Latin America and strengthen information exchange and cooperation to expand new export markets,” said Kim Jung-wook, Director-General of the ministry's agricultural innovation policy bureau. The trip comes amid a sharp rise in South Korea’s veterinary pharmaceutical exports, which grew 51 percent year-on-year to $167.2 million in the first five months of 2025, buoyed in part by growing demand in Latin American markets. Chile’s veterinary medicine sector reached $220 million in 2024 and is projected to grow at an annual rate of 8.5 percent through 2034, according to industry data. Mexico, with a market valued at $1.65 billion, is expected to expand at a similar pace, growing 8.4 percent annually through 2030. The delegation is scheduled to hold one-on-one business meetings with 28 local buyers — on July 15 in Santiago and July 17 in Mexico City — in an effort to connect Korean firms directly with regional distributors and importers. In addition to commercial talks, ministry officials will visit regulatory bodies on July 14 and 18 to gain insight into local drug registration systems and veterinary policies. The group will also conduct field visits to veterinary supply chains. 2025-07-11 15:18:20

KOSPI surges above 3,200 for first time since 2021 SEOUL, July 11 (AJP) - South Korea’s benchmark KOSPI index climbed above the 3,200 level for the first time in nearly four years on Friday, buoyed by a global rally in semiconductor stocks, before paring gains as foreign investors turned net sellers. The index surged as high as 3,216.69 in morning trading, its highest intraday level since September 7, 2021, when it reached 3,201.76. By early afternoon, however, the index had trimmed its advance, standing at 3,186.14 — up 2.98 points, or 0.1 percent, as of 1:48 p.m. The brief breach of the 3,200 threshold continued a recent run of record-setting sessions for the Korean stock market. On Thursday, the KOSPI notched a record close of 3,183.23, underscoring renewed investor optimism, particularly in the semiconductor sector. The gains followed an overnight rally in U.S. equities, even as trade tensions flared between Washington and Brasil. President Donald Trump threatened to impose 50 percent tariffs on Brazilian imports beginning August 1, prompting reciprocal warnings from the Brazilian government. Still, investor sentiment remained buoyant, helped by chipmaker Nvidia, whose shares rose 0.75 percent for a third straight session. The company’s market capitalization surpassed $4 trillion on a closing basis for the first time, reinforcing bullish expectations for semiconductor demand. Further fueling optimism was TSMC's record second-quarter revenue, powered by soaring demand for artificial intelligence applications. 2025-07-11 14:03:11

Lee Jae Myung leans on local currency legacy in push for grassroots recovery SEOUL, July 10 (AJP) - After polishing off two hearty portions of Korean-style barbecue, Kim Eun-hee reached for her go-to payment method: a slim, peach-colored card labeled “Hwaseong Special City.” The 52-year-old social worker swiped it with ease, as she does nearly everywhere she shops, commutes, and eats. “I get 10 percent back every time I charge it,” Kim said, sipping an americano from a seniors’ cafe where a cup costs just 1,100 won, or about 81 cents. “It’s accepted at my office cafeteria, the supermarket down the road — pretty much anywhere I need to go in a day.” The card Kim carries is a version of a growing number of prepaid regional vouchers, issued by municipalities across South Korea. While use is limited to designated local businesses — typically mom-and-pop shops with annual revenues under 3 billion won — the incentive is simple: small discounts for consumers, and a boost in foot traffic for local merchants. Now, what began as a grassroots policy experiment has become a centerpiece of the Lee Jae Myung administration’s stimulus strategy. On July 3, President Lee stood before a crowd at Cheong Wa Dae, the former presidential compound in Seoul, pledging that the government’s prepaid voucher program would help “reignite domestic demand” and offer a financial lifeline to small businesses battered by slow growth. The scale of the initiative is significant. A second supplementary budget passed by the National Assembly just a day later earmarked more than 12 trillion won ($8.7 billion) for the distribution of vouchers — roughly 40 percent of the entire 32 trillion won package. The rollout will begin July 21, with benefits structured across income brackets. The administration is banking on a familiar formula. As mayor of Seongnam City, Lee launched a similar local voucher system in 2016, handing out vouchers to residents in a bid to strengthen local commerce. A subsequent report by the Bank of Korea found that Incheon’s consumption rose by 3.6 percent between May and December 2019 after voucher adoption, compared with just 0.1 percent in the months before. The bank concluded the program “positively contributed to stimulating local consumption.” Still, Lee acknowledged that outcomes remain uncertain. “While we can estimate the effects, nothing is guaranteed,” he said. “We made this decision after taking into account the fiscal outlook, debt, and broader economic conditions.” Experts, too, are divided. The Korea Development Institute, a state-run think tank, said in its July economic outlook that the second budget could help stabilize economic momentum, unlike the first, which was narrowly targeted. “Since e-commerce has become the norm, voucher injections can definitely support brick-and-mortar stores,” said Lee Eun-hee, a professor emeritus of consumer science at Inha University. A recent survey by Korea Credit Data found that more than half of small business owners — 53 percent — had “very high expectations” for the policy. But there are caveats. “Older people often struggle to understand how to use these vouchers,” Professor Lee said. “And crucially, local governments must fund 10 to 15 percent of the total issuance themselves.” The financial burden has prompted concern in some cities. On June 24, Daejeon Mayor Lee Jang-woo called on the central government to assume responsibility. “While local vouchers help restore livelihoods, if this is a government-led policy, the government should foot the bill,” he said. Some critics argue the policy is a short-term fix. “These are like IV drips — useful in a crisis, but not a cure,” Professor Lee said. She advocated instead for investment in long-term infrastructure like regional tourism and marketplaces that naturally drive spending. Others take a more skeptical view. Cho Dong-geun, a professor emeritus of economics at Myongji University, said the government should consider tying vouchers to specific uses like food purchases, rather than geographic restrictions. “If President Lee wants to support people, he should look at why countries like the United States are cautious about adopting local vouchers,” Cho said, referencing programs like SNAP, the U.S. food assistance initiative. A 2020 study by the Korea Institute of Public Finance also warned of inefficiencies, noting that while local currencies provide “various economic benefits,” they can also generate “multiple expenses and structural waste.” Back in Hwaseong, Kim Eun-hee isn’t concerned with macroeconomics. To her, the city voucher is simply convenient — and valuable. “I used to carry three cards: one for work, one for home, one for discounts,” she said. “Now, I just use this one.” For President Lee, however, the stakes are far greater. As South Korea’s economy flirts with stagnation, his government is betting big on the belief that small purchases — made locally and with plastic — can fuel a national rebound. Whether that bet pays off may determine the political and economic shape of his presidency. 2025-07-11 09:59:04

Krafton opens cultural gaming hub in Seongsu-dong, Seoul SEOUL, July 10 (AJP) - Krafton, the South Korean game developer best known for the global hit PlayerUnknown’s Battlegrounds (PUBG), is venturing beyond screens with the launch of a new three-story cultural and gaming complex in Seoul’s Seongsu-dong, a district known for its blend of street culture and creative retail. Set to open to the public on Friday, the “PUBG Seongsu” complex was unveiled to the media on Thursday, offering a first look at Krafton’s ambitious attempt to build an immersive, real-world destination for fans and the wider public. Occupying a series of renovated red-brick industrial buildings, the complex combines e-sports infrastructure with lifestyle and cultural amenities. It features a 72-seat PC gaming zone, a two-story cafe equipped with DJ booths and a library, outdoor playgrounds designed for skateboarding, and event halls capable of hosting themed exhibitions and catering. There are also do-it-yourself workshop spaces tailored for local youth. “This space will serve as a multi-purpose cultural venue central to exhibitions, performances, and community engagement,” said Jeong Hyeon-seop, the project’s lead producer. The company said it will use the site to host regular fan gatherings, streamer-led meetups, game forums, and small-scale e-sports competitions, reinforcing its ties with PUBG’s community while attracting a broader demographic beyond hardcore gamers. Kim Beom-soo, head of Krafton’s communications team, said the project aims to reimagine the role of game studios in public life. “We designed PUBG Seongsu as a place where games intersect with everyday culture, not just digital entertainment,” he said. Krafton, which went public in 2021, has increasingly sought to diversify its brand presence while staying rooted in the battle royale genre that propelled it to international prominence. The new complex reflects a growing trend among game publishers to establish offline spaces where gaming, fashion, art, and fandom converge. To mark the opening weekend, visitors will be invited to participate in a “stamp rally” mission — an interactive scavenger hunt designed to guide them through the complex’s offerings. 2025-07-10 16:09:27

Bank of Korea halts rate cuts amid soaring housing prices SEOUL, July 10 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.5 percent on Thursday, pausing its monetary easing cycle as policymakers contend with a surge in housing prices and rapidly rising household debt. The decision underscores mounting concern within the central bank over asset bubbles forming in the capital region. In recent weeks, apartment prices in Seoul have accelerated at their fastest pace in nearly seven years. “Stabilizing market sentiment to prevent further price surges in metropolitan housing and managing household debt are critical priorities,” said Rhee Chang-yong, the bank’s governor, during a news conference. Data from the Korea Real Estate Board showed apartment prices in Seoul rose 0.43 percent in the fourth week of June from the previous week — the sharpest weekly gain since September 2018. The price rally has been accompanied by a spike in household borrowing. Bank lending to households rose by 6.2 trillion won ($4.5 billion) last month, while total financial sector lending jumped 6.5 trillion won, marking the largest monthly increase in eight months. In response, financial regulators in June rolled out tighter mortgage rules in Seoul and neighboring areas, capping home loans at 600 million won in an effort to curb speculative buying. The central bank had begun cutting rates in October, lowering borrowing costs in successive moves aimed at reviving domestic demand and insulating South Korea’s export-driven economy from global headwinds, including protracted trade tensions with the United States. The rate is now down from a peak of 3.25 percent. Still, policymakers remain cautious. While domestic consumption is expected to recover gradually — bolstered by improving business sentiment and government stimulus — exports are forecast to lose momentum amid ongoing U.S. tariff actions and uncertainty surrounding trade negotiations. The BOK maintained its inflation forecast at 1.9 percent for both headline and core consumer prices, in line with projections made in May. Officials expect inflation to hover around 2 percent this year, citing subdued demand-side pressures and stable global oil prices. 2025-07-10 14:03:43

Trump's 200 percent drug tariff threat draws cautious response SEOUL, July 9 (AJP) - South Korean pharmaceutical and biotech companies are preparing for potential U.S. tariffs on drug imports after President Donald Trump announced plans for sweeping trade measures that could impose duties of up to 200 percent. While the announcement has prompted firms like Celltrion and SK Biopharmaceuticals to activate contingency strategies, industry analysts say the broader impact on the Korean pharmaceutical sector is likely to be modest — at least for now. Speaking during a Cabinet meeting at the White House, Trump said the United States would impose high tariffs on imported pharmaceuticals, part of what he described as a broader effort to onshore critical industries. “They’re going to be tariffs at a very high rate, like 200 percent,” Trump said, adding that companies would have “about a year, year and a half” to adjust before the tariffs take effect. Commerce Secretary Howard Lutnick later told CNBC that more specific details about the tariff plan would be released by the end of the month. In Seoul, the announcement sent pharmaceutical stocks into a brief tailspin before recovering, as major players rushed to reassure investors. Celltrion published a letter to shareholders early Wednesday, outlining measures it has already taken to shield itself from possible fallout. The company said it had stockpiled two years’ worth of product inventory for the U.S. market and had secured contracts with American contract manufacturing organizations to localize production. The firm is reportedly weighing the acquisition of a U.S.-based pharmaceutical manufacturer to solidify its local presence. SK Biopharmaceuticals, which markets the epilepsy drug Cenobamate in the U.S., said it has completed due diligence on a production facility in Puerto Rico and secured U.S.-based manufacturing partners approved by the Food and Drug Administration. Samsung Biologics said it expected minimal direct exposure, given its focus on outsourced development and production rather than direct exports. Some industry observers expressed skepticism about the policy’s trajectory, noting that similar threats from Trump did not translate into major structural changes for the industry. “South Korea has relatively few drug substance or finished drug exporters at present, aside from major pharmaceutical companies,” said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. “For tariffs to significantly impact the industry, we would need at least another decade, as most biotech firms remain in the research and development phase.” 2025-07-09 16:12:57

South Korea's economy stalls despite stimulus, KDI warns SEOUL, July 8 (AJP) - South Korea’s economy continues to lose steam despite the rollout of a supplementary budget earlier this year, the state-run Korea Development Institute said in its latest monthly report, highlighting persistent weakness in the construction sector and mounting external pressures. In its July economic trends report released Tuesday, the institute offered a downbeat assessment of the economy’s trajectory, stating that growth indicators remained “at a similarly subdued level as in the previous month.” “The Korean economy remains at a similarly subdued level as in the previous month, due to continued weakness in the construction sector and worsening external conditions,” the report said. The KDI’s gloomy appraisal marks the third consecutive month it has flagged a slowdown, underscoring concerns that May’s supplementary budget — which prioritized disaster recovery efforts — has failed to generate a significant rebound. The warning comes at a fraught moment for Asia’s fourth-largest economy. With exports under mounting strain, U.S. President Donald Trump has threatened to impose a 25 percent tariff on all South Korean goods starting Aug. 1 — a move that would strike at the heart of the nation’s trade-driven growth model. At home, the government is preparing a second supplementary budget, this time centered on direct stimulus measures, including unprecedented “cash-like” coupon distributions to households. While the KDI acknowledged continued strength in semiconductor exports — a bright spot amid otherwise softening manufacturing activity — it noted that overall production momentum had slowed. In particular, auto exports, already under pressure from U.S. tariff threats, have declined for a second straight month. Manufacturing output fell 3.0 percent month-over-month in May, with automotive production slipping 2.0 percent. Construction, which has been a persistent drag, showed little sign of recovery. Despite the weak indicators, the report pointed to a rebound in consumer sentiment as a potential source of near-term support. The consumer sentiment index jumped to 108.7 in June, up sharply from 101.8 in May, suggesting a possible turnaround in domestic demand as the government readies further stimulus. The KDI expressed cautious optimism that the second supplementary budget — unlike the first, which was narrowly targeted — may help stabilize momentum in the months ahead. Still, analysts warn that without a resolution to external risks, including the trade tensions with the Trump administration, any domestic recovery may prove fragile. 2025-07-08 15:14:00

Trump says will impose 25 percent tariffs on all Korean goods starting August SEOUL, July 8 (AJP) - U.S. President Donald Trump has vowed to impose 25 percent tariffs on all South Korean goods starting Aug. 1, unless Seoul agrees to a new trade deal with the United States. In a letter posted to his social media platform, Trump gave the government of President Lee Jae Myung just three weeks to reach an agreement before the sweeping duties take effect. The announcement comes as his previous tariff measures are set to expire on Tuesday, heightening pressure on Seoul to make concessions or face far-reaching consequences for its export-driven economy. “Our relationship has been, unfortunately, far from reciprocal,” Trump wrote, criticizing what he described as an imbalanced trading relationship. “Starting on August 1, 2025, we will charge Korea a tariff of only 25 percent on any and all Korean products sent into the United States, separate from all sectoral tariff.” The proposed tariff, Trump argued, is a corrective measure aimed at reducing what he characterized as a "significant trade deficit" with South Korea. However, he acknowledged that the 25 percent rate would still fall “far less than what is needed” to eliminate the disparity. The letter also included a veiled warning: if Seoul retaliates with countermeasures, Washington would match those actions with additional tariffs “on top of the base 25 percent rate.” Despite the combative tone, the president appeared to leave a door open for negotiation. He suggested that the tariffs could be adjusted — “upward or downward” — depending on future talks and Seoul’s willingness to remove what he described as “trade barriers.” In a gesture aimed at encouraging foreign direct investment, Trump said that South Korean companies that manufacture in the United States would benefit from fast-tracked regulatory approvals, processed “quickly, professionally, and routinely — in other words, in a matter of weeks.” The ultimatum to South Korea was one of two issued Monday. In a separate statement, Trump said the United States would impose 25 percent tariffs on all Japanese imports, raising the rate from a previously established 24 percent as part of a parallel campaign to “rebalance” trade relationships in the Asia-Pacific region. Trump's new timeline is likely to intensify diplomatic and economic discussions in Seoul, where the export-heavy economy is deeply intertwined with American markets. 2025-07-08 10:49:49

S. Korea, UK hold FTA upgrade talks in Seoul to strengthen partnership SEOUL, July 7 (AJP) - South Korea and the United Kingdom kicked off their fifth round of negotiations to upgrade their bilateral free trade agreement in Seoul, with about 60 delegates from both sides gathering in Seoul for five days of intensive talks. The negotiations, running from Monday through Friday, aim to modernize the Korea-UK FTA that was hastily signed after Britain's exit from the European Union. The original deal largely mirrored the terms of South Korea's existing trade pact with the EU bloc. The South Korean team is headed by Kwon Hye-jin, the country’s chief trade negotiator from the Ministry of Trade, Industry and Energy. Team Britain is led by Kwon’s counterpart Adam Fenn, chief negotiator at the United Kingdom's Department for Business and Trade. The two countries are seeking to ease rules of origin requirements to make them more business-friendly while introducing new trade standards covering supply chains and digital commerce. This marks their fifth attempt to bridge gaps on key sticking points. Negotiators will tackle 16 separate areas including services, investment, digital trade, rules of origin and government procurement as they work to narrow differences on major issues dividing the two sides. "The importance of concluding free trade agreements to counter deepening protectionism is growing day by day," Kwon said. She expressed hope the upgraded FTA would help both nations jointly respond to global supply chain risks and expand trade and investment cooperation. The negotiation follows previous March talks held in London, discussing subjects such as bioeconomy, gender equality, and strengthening economic bonds between South Korea and the UK. 2025-07-07 14:38:43

S. Korea to launch campaign to lower wedding costs SEOUL, July 7 (AJP) - The South Korean government announced Sunday that it will launch a national campaign to address the soaring cost of weddings and shift public perceptions around the issue. The initiative follows President Lee Jae-myung's campaign pledge to ease the financial burdens associated with marriage. High wedding costs are often cited as one of the reasons young people are delaying marriage and starting families. The Fair Trade Commission (FTC) recently commissioned research aimed at promoting more rational spending in the wedding services market, which continues to draw criticism for its inflated pricing practices. According to data released in May by the Korea Consumer Agency (KCA), the average wedding service contract in South Korea costs around 21 million won ($15,353). In Seoul's Gangnam district, well-known for its luxurious lifestyle culture, the average rises to about 34 million won, highlighting stark regional disparities. These figures include only core wedding services such as venue rental, dresses, and makeup, excluding additional extras. Many couples turn to professional planners to navigate the complexity of wedding arrangements, despite the added expense. "Without a wedding planner, couples must arrange everything themselves, and coordinating schedules becomes extremely difficult. Even with the extra costs, the time saved is a lifesaver," said a 30-year-old woman who recently got married. In terms of consumer satisfaction, the wedding service industry ranked last among 40 sectors in the KCA’s 2024 survey, scoring just 50.4 out of 100. The average score across all industries was 65.7. The wedding sector received the lowest marks across all categories, including fairness of pricing, reliability, diversity of choices, and consumer protection. In response, the FTC plans to hold public contests to collect ideas on improving consumer culture. It also intends to issue guidelines to help prevent financial disputes tied to weddings. The FTC issued warnings in April to several well-known wedding planning companies for false and misleading advertising. In February, the National Tax Service launched a broad audit of the wedding service industry, focusing on pricing practices for photography, dress rentals, and cosmetic services. 2025-07-07 11:03:09