Prosecutors take over high-profile stock manipulation case linked to former first lady Sambu Construction headquarters/ Yonhap SEOUL, April 23 (AJP) - South Korea’s financial watchdog said it will refer a high-profile stock manipulation case possibly involving the country’s former first lady, Kim Keon Hee, to prosecutors on Wednesday. The Securities and Futures Commission, which oversees investigations into irregularities in the nation’s financial markets, will vote during its regular meeting on filing criminal complaints against individuals implicated in the manipulation of shares in Sambu Construction. The anticipated move comes more than seven months after the Korea Exchange forwarded its findings on suspicious trading activity to the Financial Supervisory Service (FSS), the country’s top financial regulator. “It is difficult to deny that certain stakeholders realized profits of more than 10 billion won,” or approximately $7.4 million, said Lee Bok-hyun, the head of the FSS, during a press briefing in early March. He added that the agency aimed to “resolve the matter within April if possible.” The regulator has examined more than 200 trading accounts, including those of major shareholders, in its investigation. Officials said they analyzed trading patterns and capital flows to trace the origin of the illicit profits. Shares of Sambu Construction skyrocketed from roughly 1,000 won in May 2023 to more than 5,000 won by July of that year. During this period, DYD, the company’s largest shareholder, participated in a Ukraine reconstruction forum held in Poland, further raising questions about market sentiment and timing. The case has drawn particular attention due to the involvement of Lee Jong-ho, the former head of Blackpearl Invest and a key figure in the Deutsche Motors stock manipulation scandal, which has also been linked to Kim Keon-hee. Lee is believed to have referenced Sambu Construction in a group chat with former Marine Corps members, posting a cryptic message that read, “Sambu check," before the stock price began soaring. Sambu Construction has been under mounting financial pressure. Trading of its shares has been suspended following two consecutive years of adverse audit opinions. The firm entered court-led rehabilitation proceedings last month as it faces a deepening liquidity crisis. 2025-04-23 11:29:14

Korea urged to boost efforts to stabilize pharmaceutical supply chains Getty Images Bank SEOUL, April 22 (AJP) - South Korea is lagging behind other major nations in implementing systems to address pharmaceutical supply chain instabilities, according to a report by the Korea Institute of Science&Technology Evaluation and Planning (KISTEP). In its latest edition of "Science, ICT Policy and Technology Trends," KISTEP underscores the urgent need for specific legislation and comprehensive mapping of supply chains to ensure a stable supply of medications during crises. The report calls attention to the vulnerabilities exposed by the COVID-19 pandemic and emphasizes the necessity of preparing for future disruptions. “While major nations have adopted phased measures to tackle pharmaceutical supply chain instabilities, South Korea’s efforts remain comparatively insufficient,” said Jeong Soon-kyu, principal researcher at the Korea Health Industry Development Institute. Although South Korean authorities have supported research and development for emerging epidemics and promoted domestic manufacturing of essential medications, the report highlights significant gaps in other areas. These include inadequate support for domestic companies to secure raw materials, expand manufacturing facilities, and localize ingredient production. Such deficiencies leave the country vulnerable to global supply chain disruptions. Currently, China and India dominate the global production of pharmaceutical ingredients, accounting for 44 percent and 20 percent, respectively. South Korea’s reliance on imports for these critical components underscores the need for enhanced domestic production capabilities. The report noted that the country has faced persistent medication shortages, with 46 essential drugs either ceasing production or importation over a three-year period. As of April last year, 490 medications were identified as facing supply instabilities, including 95 designated as essential or shortage-prevention drugs. Jeong warned that rapidly shifting global supply chains, shaped by geopolitical tensions, climate disasters, and economic uncertainties, further complicate the situation. “Swift collection and utilization of accurate information are increasingly critical in managing supply chain risks,” he said, pointing to the impacts of U.S.-China tensions, Middle East conflicts, the Russia-Ukraine war, and climate-related disasters. To address these challenges, the report recommends increased government support for domestic pharmaceutical companies. Proposed measures include facilitating technology exports to U.S. firms, enabling contract manufacturing arrangements, acquiring overseas production facilities, and improving access to procurement opportunities for biosimilars in European markets. Jeong also highlighted South Korea’s advanced ICT capabilities as a potential asset in mitigating supply chain vulnerabilities. Integrating technologies such as big data, artificial intelligence, and blockchain into pharmaceutical supply chains could enhance crisis response and improve efficiency in identifying and addressing weaknesses. The report advocates for a comprehensive approach to supply chain management, encompassing risk assessment, investment in manufacturing capacity, and strategic stockpiling of essential medications. It also emphasizes the need for governance frameworks that support sustained policy implementation. Jeong expressed optimism about the potential for progress. “With sustained government support over the next five years, South Korea could establish a holistic system for pharmaceutical supply stabilization, resolving supply shortages for specific medications by 2030,” he said. 2025-04-22 13:48:19

Major banks may face sanctions over alleged collusion on mortgage terms KB Kookmin, Shinhan, Woori ATMs in downtown Seoul/ Yonhap SEOUL, April 22 (AJP) - South Korea’s antitrust watchdog has wrapped up a re-investigation into allegations that the country’s four largest banks colluded on mortgage lending practices, with regulatory sanctions expected to follow in the coming months. The Fair Trade Commission (FTC) has issued formal examination reports to KB Kookmin, Woori, Shinhan, and Hana banks, according to industry sources. The case centers on claims that the lenders shared approximately 7,500 data points related to loan-to-value (LTV) ratios — key figures that determine how much homebuyers can borrow against their property’s value. Investigators say the exchanges may have allowed the banks to align lending conditions, restrict competition, and boost profits at the expense of borrowers. The investigation, which began in early 2023, was initially expected to conclude last year but was extended after the commission opted to conduct further on-site inspections and gather additional evidence. Inspectors visited the banks in February and spent two months compiling the revised examination report. The updated report, according to sources, bolsters claims that the data-sharing practice materially influenced lending terms. However, it also walks back an earlier recommendation for criminal prosecution, focusing instead on administrative penalties. Notably, the FTC has widened the revenue base used to calculate fines to include loan extensions in addition to newly originated mortgages — a move that could result in penalties amounting to billions of won. The banks have denied any collusion, arguing that while information was shared, it did not result in uniform lending practices. They point to discrepancies in their LTV ratios after the exchanges as evidence of independent decision-making. “The deadline for the banks to submit their opinions is expected in early May,” one industry official said. “A final decision could be announced by late May or early June.” If confirmed, the sanctions would represent the first enforcement action under the “information exchange collusion” clause added to South Korea’s Fair Trade Act in 2020 — a legal provision designed to address more subtle forms of market coordination. A spokesperson for the Fair Trade Commission declined to comment, saying, “We cannot confirm specific details of the case.” 2025-04-22 10:35:14

South Korea cracks down on origin fraud in exports to US A Korea Customs Service officer explains cases of falsely labeled exports to the United States, April 21, 2025. Yonhap SEOUL, April 21 (AJP) - South Korean customs officials have uncovered a surge in falsely labeled exports to the United States during the first quarter of 2025, raising concerns over a growing trend of trade fraud aimed at circumventing punitive American tariffs. The Korea Customs Service (KCS) announced Monday that it has launched a special trade security investigation unit focused on combating origin fraud in exports — specifically targeting products subject to U.S. anti-dumping duties and import restrictions. Officials say that foreign-made goods are increasingly being disguised as South Korean in origin through tactics such as label substitution and forged documentation, in order to exploit South Korea’s preferential trade status with the United States. In the first three months of 2025 alone, authorities have identified approximately 28.5 billion won (about $20 million) worth of goods falsely labeled as Korean in origin — already exceeding the full-year total of 21.7 billion won reported in 2024. While South Korea's reputation for manufacturing quality has long been leveraged by unscrupulous exporters, recent cases indicate a growing shift toward using false labeling explicitly to dodge U.S. tariffs. In one case last November, customs officials intercepted a Chinese mattress manufacturer attempting to export products with falsified Korean certificates of origin. More recently, in January, authorities uncovered a Chinese-owned company operating in South Korea that was exporting Chinese-made lithium battery cathode materials to the U.S. under fraudulent Korean origin claims. “Export circumvention through origin fraud can severely undermine the credibility of legitimate Korean products and risk triggering expanded non-tariff barriers,” said Ko Kwang-hyo, commissioner of the Korea Customs Service, following a public-private sector meeting. The agency said it is bolstering cooperation with industry stakeholders to improve information sharing and enforcement capacity in an effort to protect domestic manufacturers and uphold the integrity of South Korea’s trade commitments. 2025-04-21 15:15:39

Korea's customs revenue shrinks amid free trade push Containers stacked at Busan Port/ Yonhap SEOUL, April 21 (AJP) - South Korea’s customs duty revenue has dwindled to just 0.6 percent of total tax income, a sharp decline driven by an aggressive expansion of free trade agreements and the use of tariff quota mechanisms. In contrast, the United States has seen its customs receipts rise to 1.6 percent of total tax revenue, reflecting a more protectionist trade stance. According to a report released by the National Assembly Budget Office, South Korea collected 7 trillion won (approximately $4.93 billion) in customs duties last year — down 300 billion won, or 4.3 percent, from the previous year. The decline in customs revenue mirrors a broader contraction in trade activity and tariff obligations. South Korean imports dropped by 1.7 percent in 2024, falling from $643 billion in 2023 to $632 billion. Meanwhile, the country’s growing network of trade pacts continues to erode the tax base once supported by import duties. The nation’s effective tariff rate has dropped significantly — from 1.7 percent in 2012 to just 0.8 percent in 2024. South Korea now maintains 22 FTAs encompassing 59 countries, including major economic partners such as the United States, China, and the European Union. Further liberalization came with the implementation of the Regional Comprehensive Economic Partnership (RCEP) in February 2022. The agreement, which includes 15 countries across Asia-Pacific — including China, Japan, Australia, and New Zealand — established de facto free trade between Seoul and Tokyo, two of the region’s largest economies. The United States, by contrast, has moved away from trade liberalization in recent years. Under President Donald Trump, customs revenue as a share of federal tax income rose from 1.1 percent in 2014 to 1.9 percent in 2019. It has remained in the 1.7 to 1.8 percent range in the years since. Officials in Seoul have expressed concern that Washington’s continued reliance on high tariffs, particularly those aimed at China, may have indirect effects on Korea’s export-oriented economy. “If China’s exports to the U.S. decrease due to America's high tariff policy against China, there are concerns that South Korea’s intermediate goods exports to China could decline,” an official from the National Assembly Budget Office said. The agency also warned that escalating global trade tensions — sparked by retaliatory tariff measures between the U.S. and China — could create additional uncertainty and weigh on global economic growth. “In the long term, there is a possibility that the world economy and trade could slow down,” the report noted. 2025-04-21 11:02:51

Korea's dried seaweed exports hit new records in first quarter A dried seaweed, or gim, farm/ Courtesy of the Office of Hongseong-gun, South Chungcheong Province SEOUL, April 21 (AJP) - South Korea’s dried seaweed exports soared to record levels in the first quarter of 2025, fueled by rising global appetite for seaweed, particularly in the United States and China. Exports of dried seaweed — known as gim in Korean — reached $281 million between January and March, marking a 21.1 percent increase from the same period last year, according to data released Monday by the Korea Agro-Fisheries & Food Trade Corporation. Export volume rose 7.5 percent to 10,161 tons, an 844.3 percent surge compared with the first quarter of 2015. The United States remained the largest overseas market, importing $57.9 million worth of Korean seaweed, followed by China ($51.1 million), Japan ($34.4 million), and Thailand ($34.2 million). China posted the most dramatic growth, with imports jumping 86.5 percent year-over-year. Officials attributed the spike to a surge in popularity of gimbap, a Korean rice roll wrapped in seaweed, boosted by the ongoing Korean Wave — the global popularity of South Korean pop culture, including television dramas and films. “The Korean Wave has triggered a gimbap boom in China, driving up demand for dried seaweed,” an official from the Ministry of Oceans and Fisheries said. “Meanwhile, seaweed snacks continue to gain popularity in the U.S., significantly boosting exports of seasoned products.” Government officials say the recent export performance has put South Korea on track to reach its $1 billion annual seaweed export goal three years ahead of schedule. Last year’s exports narrowly missed the milestone, totaling $997 million. The ministry credited the gains to its targeted export strategy, including the launch of the premium “K FISH” brand and the establishment of dedicated Korean seafood sections on major international e-commerce platforms. 2025-04-21 10:15:54

Gold prices hit record high amid trade tensions A bar of fine gold from the Korea Gold Exchange next to international gold prices chart/ Yonhap SEOUL, April 18 (AJP) - International gold prices surged to new highs this week as investors sought refuge from rising global trade tensions. Spot gold touched an all-time high of $3,350 per troy ounce on Wednesday before settling at $3,338.43, marking a 3.61 percent gain from the previous session. On the New York Mercantile Exchange, June gold futures also mirrored the momentum, closing at $3,355.10 per ounce — sustaining a remarkable upward trend in precious metals. By Friday afternoon, however, the momentum had softened. Spot gold traded at $3,315.13, down 0.03 percent from the previous day, while June futures fell to $3,328.40. Analysts attributed gold’s ascent to heightened investor anxiety surrounding U.S. trade policy and ongoing global economic uncertainty, which has bolstered demand for traditional safe-haven assets. A weakening U.S. dollar further amplified gold’s rise. Because gold is priced in dollars, a decline in the greenback typically makes the metal more attractive to foreign investors. 2025-04-18 14:31:49

Foreign investors extend Korean stock sell-off for eighth month Getty Images Bank SEOUL, April 18 (AJP) - Foreign investors pulled approximately 1.6 trillion won ($1.12 billion) from South Korean equities in March, extending a months-long exodus that has now reached its eighth consecutive month, according to data released Friday by the Financial Supervisory Service. The outflows spanned both of the country's major equity markets. Investors sold 1.12 trillion won on the benchmark KOSPI and an additional 513 billion won on the tech-heavy KOSDAQ. Singapore-based investors led the retreat, divesting 2.6 trillion won worth of shares, followed by Norwegian investors, who sold off 600 billion won. Despite the broader trend, not all foreign investors turned away from the South Korean market. British investors purchased 700 billion won in stocks, while their American counterparts added 600 billion won, offering a counterpoint to the prevailing sell-off. As of the end of March, foreign investors held 703.9 trillion won in South Korean equities, representing 27.3 percent of total market capitalization. In contrast to their stock market activity, foreign investors increased their presence in the Korean bond market, funneling a net 5.87 trillion won into bonds in March — their second consecutive month of net investment. Asian investors accounted for the largest share of bond inflows, purchasing 2.9 trillion won. Investors from the Middle East and the United States followed with 800 billion won and 400 billion won, respectively. By category, foreign investors showed a clear preference for government bonds, with net purchases totaling 4.6 trillion won. They also added 1.2 trillion won in monetary stabilization bonds. Overall, foreign holdings of listed bonds rose to 278.6 trillion won by the end of March, representing 10.6 percent of the total bond market. 2025-04-18 13:44:14

Daewoo E&C signs deal for $700 million fertilizer plant in Turkmenistan Daewoo Engineering & Construction CEO Baek Jung-wan, left, walks with Deryageldi Orazov, chairman of the Arkadag New City Construction Committee from Turkmenistan. Courtesy of Daewoo Engineering & Construction SEOUL, April 18 (AJP) - Daewoo Engineering & Construction has signed a preliminary agreement to build a fertilizer plant in Turkmenistan, a project valued at approximately $700 million, South Korea’s Ministry of Trade, Industry and Energy announced on Friday. Commissioned by Turkmenhimiya, Turkmenistan’s state-owned chemical company, the facility is slated for construction in the eastern city of Turkmenabat, near the Uzbek border. Once completed, the plant is expected to produce 300,000 tons of phosphate-based fertilizer annually, bolstering the Central Asian nation’s agricultural and export capacity. Daewoo Engineering was named the preferred bidder for the project in October 2024, and both parties aim to finalize the contract by the end of this year. Following the agreement, South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, met with Baimurad Annamammedov, Turkmenistan’s Deputy Prime Minister for Energy, Construction and Industry, in Seoul. The two officials held high-level talks focused on expanding industrial cooperation, particularly in the development of plant infrastructure. During the meeting, Minister Ahn called for Turkmenistan’s continued support for South Korean firms in future infrastructure and energy projects, underscoring Seoul’s commitment to deepening economic ties with the gas-rich Central Asian nation. 2025-04-18 10:03:02

Bank of Korea holds rate steady amid growing economic headwinds Bank of Korea Governor Rhee Chang-yong hits the gavel during a monetary policy committee meeting held at the BOK headquarters in Seoul, April 17, 2025. Joint Press Corps. SEOUL, April 17 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.75 percent on Thursday, choosing caution in the face of mounting global uncertainty, despite signs of faltering domestic growth. The decision comes as central banks around the world grapple with intensifying economic turbulence, fueled in part by an escalation in global trade tensions. The U.S. Federal Reserve earlier this week signaled a pause in its easing cycle, underscoring the fragile international outlook as the Trump administration’s sweeping tariffs ripple through global markets. "The Monetary Policy Committee decided to maintain the base rate at the current level of 2.75 percent for the conduct of monetary policy until the next monetary policy decision," the BOK said in a statement. While inflation remains stable, policymakers flagged increasing downside risks to growth, citing a sluggish first quarter and a deteriorating external trade environment. The central bank noted that uncertainties stemming from shifting U.S. tariff policies and an unresolved supplementary budget have added to the complexity of its policy calculus. The rate decision follows a series of easing measures by the BOK, which lowered the base rate by 0.25 percentage points in both October and November last year — its first consecutive cuts since the global financial crisis. After holding steady in January, the bank delivered another quarter-point cut in February, reflecting persistent concerns over anemic growth. South Korea’s economy expanded by just 0.1 percent in the final quarter of 2024, as domestic demand faltered and external risks intensified. The central bank had initially projected growth of 1.5 percent for 2025, but officials now acknowledge the outlook may be downgraded amid deepening global headwinds. Economists say the BOK may resume rate cuts as early as next month, should the currency stabilize and macroeconomic conditions continue to worsen. “The BOK’s economic growth forecast is also expected to be significantly downgraded in May, at which point the benchmark rate will likely be lowered,” said Park Jeong-woo, an economist at Nomura Securities. 2025-04-17 11:36:33