Korean steelmakers struggle under US tariff pressure, global glut SEOUL, July 14 (AJP) - South Korea’s steelmakers endured another punishing quarter as a persistent global supply glut collided with a sharp escalation in U.S. tariffs. Steel exports from South Korea fell 5.9 percent year-on-year to $15.63 billion in the first half of 2025, according to the Ministry of Trade, Industry and Energy. The downturn accelerated in May and June — dropping 12.4 percent and 8.0 percent respectively — as the full effects of the Trump administration’s 25 percent tariff began to bite. The blow was compounded in June when the White House doubled the tariff rate on steel and aluminum to 50 percent. Speaking at a U.S. Steel plant outside Pittsburgh on May 31, U.S. President Donald Trump defended the move, saying: “At 25 percent, they can sort of get over that fence. At 50 percent, they can no longer get over the fence.” The rate hike has reignited fears of a broader trade contraction, especially for export-reliant economies like South Korea. The Korea International Trade Association now forecasts a 7.2 percent decline in steel exports in the second half of the year, while the Federation of Korean Industries projects a 5 percent drop amid tightening global margins. POSCO Holdings, the country’s largest steel group, is expected to report second-quarter operating profit of 646.8 billion won ($469 million), a 14 percent decline from a year earlier. While lower raw material prices and a weaker won provided some cost relief, analysts said slumping demand and falling prices in Southeast Asian markets likely weighed on overseas operations. In response, POSCO has accelerated efforts to streamline its international footprint, including the recent sale of its 1.1 million-ton-capacity Zhangjiagang Pohang Stainless Steel plant in China. Hyundai Steel, the nation’s second-largest producer, also faces mounting headwinds. Second-quarter revenue is projected to decline 3.2 percent to 5.85 trillion won, with operating profit forecast to fall 15.2 percent to 83.1 billion won. Despite the grim backdrop, industry watchers point to a few signs of potential relief in the second half. Beijing’s production curbs have begun to lift steel prices, and a pending South Korean government decision on imposing anti-dumping duties against Chinese and Japanese hot-rolled steel could help alleviate some pressure from low-cost imports. 2025-07-14 14:23:48

Soaring fruit prices in South Korea reflect strain of heat wave SEOUL, July 14 (AJP) - Fruit prices in South Korea have surged sharply in recent weeks, as an early summer heat wave scorches the country, disrupting crop yields and straining supply chains. Watermelons and napa cabbage — summertime staples — have seen particularly steep price increases, prompting emergency measures from the government. As of July 11, the average retail price of a watermelon stood at 29,115 won, or about $21.16, according to data from the Korea Agro-Fisheries and Food Trade Corporation. The price is up 36.5 percent from a year ago and nearly 39 percent above the average over the past three years. The spike stems from a confluence of adverse weather conditions. A lack of sunlight in June delayed watermelon crop development, while the onset of intense heat in July accelerated demand. Producers say the extreme temperatures have reduced sugar content in many watermelons, leading to a supply shortage of high-quality fruit. Other summer fruits are also feeling the heat. Melons are selling for 10,076 won each, a 21.7 percent increase from a year ago and 16.3 percent higher than the three-year average. Peaches, another seasonal favorite, have climbed about 10 percent in price year over year. Napa cabbage — a key ingredient in kimchi, Korea’s beloved fermented dish — has shown particularly volatile movements. While current prices are still about 10 percent lower than last year’s levels, they jumped 27.4 percent in just one week to 4,309 won per head, reflecting tightening supply conditions. Livestock and poultry products have also been affected by the oppressive temperatures. Egg prices have risen nearly 6 percent from last year, reaching 7,162 won for a pack of 30, as consumers turn to protein-rich foods amid the heat. Chicken prices, currently at 6,070 won per kilogram, remain in line with year-ago levels but are up 11 percent from a month ago — with further increases likely as demand climbs ahead of Chobok, the first of Korea’s traditional “dog days” of summer on July 20. In response, the government has rolled out emergency supply measures. The Ministry of Agriculture, Food and Rural Affairs said it has secured 35,500 tons of napa cabbage for release during market shortages and prepared 2.5 million backup seedlings to offset crop losses. For watermelons, officials expect prices to ease later this month as harvests expand to more regions nationwide. Still, with meteorologists forecasting continued heat into August, officials and consumers alike are bracing for sustained pressure on food prices — and on the resilience of the country’s agricultural system. 2025-07-14 10:08:32

Naver Webtoon halts popular 'Wind Breaker' series over tracing allegations SEOUL, July 12 (AJP) - Naver Webtoon has suspended its long-running sports webtoon "Wind Breaker" after the creator admitted to tracing scenes from Japanese manga, ending a 12-year serialization that had become one of the platform's flagship titles. Creator Jo Yong-seok acknowledged the plagiarism allegations in the final episode revealed on Friday, confessing that some scenes in his work bore striking similarities to other comic book images. The webtoon, which follows a protagonist's journey through amateur bicycle racing competitions, had been running since 2013. Jo attributed his actions to the pressure of weekly deadlines spanning over a decade. He expressed deep regret for failing to uphold the standards expected of creators, offering repeated apologies to readers who had followed the series faithfully. Naver Webtoon confirmed it had identified similarities in composition and directing between "Wind Breaker" and other works, prompting the decision to halt both serialization and service of the webtoon immediately. The suspension marks another blow to the webtoon industry, which has grappled with recurring plagiarism scandals. Naver Webtoon faced similar controversies in 2023 with titles including "I want to date a girl" and "Can I Cancel My Confession" Critics have pointed to the platform's inconsistent approach to handling such incidents. While previous plagiarism cases prompted official announcements, this latest suspension was disclosed quietly at the bottom of the final episode without separate notification. The incident has reignited discussions about quality control measures in the rapidly expanding webtoon market. Naver Webtoon had previously promised to develop detection technology and strengthen monitoring systems following the 2023 plagiarism controversies. 2025-07-12 14:25:59

South Korean companies accelerate China exit amid trade tensions SEOUL, July 12 (AJP) - South Korean companies are rapidly withdrawing from China as regulatory pressures and trade tensions make operations increasingly unprofitable, with major manufacturers joining what was once limited to retail firms. About 40 major South Korean companies have closed or downsized their Chinese operations since 2017, according to the Korea Institute for International Economic Policy. The trend has expanded beyond retail to encompass key manufacturing sectors including automotive, steel and petrochemicals. POSCO sold its stainless-steel subsidiary Zhangjiagang Pohang Stainless Steel to a Chinese steel company for about 400 billion won (US$290 million) earlier this month. The facility, established in 1997 to target the Chinese market, was once hailed as "China's POSCO" but has posted annual losses exceeding 100 billion won due to oversupply and price competition. Hyundai Motor's Beijing Hyundai Motor Company joint venture has been shedding assets, selling its Chongqing factory last year, while currently pursuing the sale of its Changzhou plant. Kumho Petrochemical also joined the exodus last year by divesting its entire stake in the SB latex business, a joint venture with a Chinese company. Companies cite sluggish sales in China, intensified competition from local rivals, rising production costs and labor shortages as primary challenges. Beijing Hyundai's revenue plummeted 83.5 percent to 3.31 trillion won last year from 20.13 trillion won in 2016, while Hyundai's China sales dropped to 125,000 units with just 0.6 percent market share. The business environment has deteriorated further since Donald Trump's second administration began, with strengthened sanctions against China creating additional uncertainty, with U.S. tariffs on Chinese products currently standing at 30 percent. South Korea's overseas investment patterns reflect this dramatic shift. Chinese investment, which accounted for 39.1 percent of total foreign direct investment in 2005 at $2.92 billion, has collapsed to just 3 percent last year. Meanwhile, U.S. investment has surged from $7.05 billion in 2015 to $22.29 billion last year, creating an 11.6-fold gap with Chinese investment. The divergence marks a striking reversal from 2010, when the two destinations received similar investment levels. Trump's "Make America Great Again" agenda is expected to accelerate this trend, with POSCO and Hyundai Steel planning an integrated steel mill in Louisiana and LS Cable launching a $750 million subsea cable factory. Hyundai Motor Group also announced plans in March to invest an additional $21 billion in the U.S. over four years. 2025-07-12 13:47:23

US tariff revenue hits record high as trade war escalates SEOUL, July 12 (AJP) - The United States recorded its highest-ever monthly tariff revenue in June, collecting $27.2 billion as the Trump administration's aggressive trade policies continue to reshape federal finances. The figure represents a nearly four-fold increase from the same period last year, according to Treasury Department data released Friday. The surge in tariff income helped push total federal revenue to a record monthly high of $526 billion, up 13 percent from June 2024. Federal spending fell 7 percent to $499 billion, resulting in a monthly budget surplus of $27 billion. However, the Treasury noted that accounting for welfare payment timing adjustments, the government would have faced about a $70 billion deficit. Treasury Secretary Scott Bessent hailed the results as vindication of President Donald Trump's trade strategy. "As President Trump works hard to take back our nation’s economic sovereignty, today’s monthly Treasury Statement is demonstrating record customs duties – and with no inflation," Bessent wrote on X (formerly Twitter). Tariffs have rapidly emerged as a major revenue source for the federal government, with their share of total tax collection doubling from 2 percent to 5 percent in about four months. The levies now rank as the government's fourth-largest income source, trailing only withheld income taxes, non-withheld income taxes, and corporate taxes. For the fiscal year beginning October 1, 2024, tariff revenue reached $113.3 billion over nine months, marking the first time such collections exceeded $100 billion in a fiscal year. The previous record underscored the dramatic shift in U.S. trade policy under the current administration. Trump has signaled further escalation, promising that "big money coming in" when higher reciprocal tariffs take effect from August 1. Bessent predicted during a Cabinet meeting last week that tariff revenue could exceed $300 billion this year. The revenue windfall comes as interest payments on the national debt continue climbing, reaching $921 billion over nine months of the fiscal year, representing a 6 percent increase from the previous year. 2025-07-12 10:59:58

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