Trump doubles steel tariffs to 50 percent, dealing blow to South Korea and other exporters SEOUL, May 31 (AJP) - U.S. President Donald Trump announced on Saturday he would double tariffs on foreign steel imports to 50 percent from the current 25 percent, delivering a blow to overseas producers including South Korea as he unveiled a major investment partnership. Trump made the announcement during a speech at a U.S. Steel plant outside Pittsburgh, Pennsylvania, saying the measure would "further secure the steel industry." The move comes as part of a broader agreement involving Japanese steelmaker Nippon Steel's investment in the American company. "We don’t want America’s future to be built with shoddy steel from Shanghai. We want it built with the strength and the pride of Pittsburgh," said Trump, explaining the tariff increase. The tariff hike represents a doubling of duties first imposed in March under the Trade Expansion Act, which allows restrictions on imports deemed threats to national security. "At 25 percent, they can sort of get over that fence," Trump said. "At 50 percent, they can no longer get over the fence." The announcement coincided with Trump's reversal on Nippon Steel's acquisition of U.S. Steel, which he had previously opposed on national security grounds alongside former President Joe Biden. The Japanese company plans to invest $14 billion in American steel operations over the next 14 months. Trump described the investment as "the largest investment in the history of the commonwealth of Pennsylvania" and "the biggest investment in American steel history." He said the partnership would create and maintain over 100,000 jobs nationwide, including 100,000 in Pennsylvania specifically. The president assured that the deal would prevent layoffs or outsourcing, adding that U.S. Steel workers would receive $5,000 bonuses. He called the arrangement a "blockbuster agreement" that ensures the historic American company remains domestically owned. South Korea's top steelmakers, POSCO and Hyundai Steel, already posted disappointing first-quarter results following previous U.S. tariff measures of 25 percent, industry experts saying the doubling of the levies to hit the nation strong, as South Korea exports around 13 percent of its total steel produce to the U.S. 2025-05-31 09:47:51

Tour for reunification wraps up in Seoul ahead of major campaign on Liberation Day in August SEOUL, May 30 (AJP) - A nationwide tour promoting reunification between the two Koreas, organized by a civil coalition, wrapped up with a final rally in Seoul on Friday after spanning 13 cities and provinces. The Korean Dream Hangang Grand Festival Organizing Committee held an event at the Kim Koo Museum & Library in Yongsan, bringing together civil representatives from across South Korea. The event served as the finale to a series of rallies that began on May 12 in Daegu and North Gyeongsang Province, building momentum for the organization's broader "Korean Dream Ten Million Campaign," scheduled for mid-August to commemorate the 80th anniversary of Liberation Day on Aug. 15. Led by former Prime Minister Chung Un-chan as chairman, along with co-chairs former National Assembly Vice Speaker Chung Woo-taek and former Democratic Party floor leader Lee Jong-geol, the committee has been mobilizing public support for reunification between South and North Korea since 2022. The campaign promotes a vision called "Korean Dream," which envisions a unified Korea contributing to world peace by achieving reunification as a path to national advancement rather than merely a political objective. "Over the past 80 years since the end of Japanese colonial rule, through your dedication and sacrifice, we have overcome the ruins of war and achieved both industrialization and democratization," said the chairman. "Now is the time to transcend barriers of ideology, generation, region, and class to achieve genuine national unity and sustainable co-prosperity," he added. 2025-05-30 17:42:36

SK hynix union demands pay raise after record profits SEOUL, May 30 (AJP) - SK hynix's union of technical and administrative workers is pushing for an 8.25 percent wage increase, following its best-ever sales performance last year, according to industry sources on Friday. The union and management held this year's first round of wage negotiations last Wednesday at the company's Icheon campus. The union's proposal includes raising the salary cap, expanding regular wages to cover vehicle maintenance and fuel costs, and guaranteeing an 800 percent performance bonus for employees with improved evaluation scores. The union also demanded more profit-sharing by removing caps on the payments. Since 2021, SK hynix has shared 10 percent of its operating profit with employees based on their individual performance. "If wage hikes were driven by external factors in the past, now we need a reasonable level that employees can accept," the union said, explaining that its proposal reflects both company performance and employees' expectations. Last year, both sides agreed on a 5.7-percent increase in wages, lower than the 8-percent raise the union had initially demanded. The chipmaker, which was recovering from losses exceeding 7 trillion won in 2023, achieved a record operating profit of 23.47 trillion won the following year, driven by strong competitiveness in high-bandwidth memory. Earlier this year, employees received bonuses amounting to 1,500 percent of their salary, along with 30 stock options each. Regarding the union's demand, the company responded that it would "comprehensively" consider various factors including internal and external business conditions, while expressing optimism by saying that it expects "constructive and productive discussions" in upcoming negotiations. 2025-05-30 10:36:43

Korean biotech firms eye share of expanding gene therapy market SEOUL, May 29 (AJP) - South Korean biotechnology companies are stepping up efforts to stake a claim in the burgeoning global gene therapy market, which is projected to swell to approximately $366 billion by 2032, according to a new industry report. The Korea Biotechnology Industry Organization has released an analysis citing data from the market research firm MarketsandMarkets, projecting the sector will grow at a compound annual rate of 19.4 percent — rising from $72 billion in 2023. Gene therapy, which seeks to modify or replace defective genes to treat disease, has gained momentum as medical research deepens and global investment accelerates. Among the various modalities, gene silencing therapies accounted for the largest share of the market last year, generating roughly $34 billion in revenue, or 47.7 percent of the total. Gene augmentation therapies followed with $21 billion, while cell replacement treatments contributed around $15 billion. The report also highlighted the dominance of the neurological segment, which represented 57.4 percent of the market — equivalent to about $41 billion — driven by increasing incidence of chronic diseases and a growing appetite for advanced therapeutic options. “The diversity of approved and commercialized treatments, along with high therapeutic efficacy for major neurological diseases, has driven growth in this sector,” the report noted. North America retained its position as the global leader, with market revenue of approximately $36 billion, underpinned by robust biopharmaceutical manufacturing infrastructure, active drug development pipelines, and significant R&D investment. In South Korea, industry leaders are making strategic moves to align with global trends. Samsung Bioepis, a major biosimilar producer, has identified gene therapy as a central pillar of its future growth strategy. ABL Bio, traditionally focused on antibody treatments, is expanding its pipeline to include gene therapy platforms. Meanwhile, RNA-based biotech firm Rznomics recently entered into a high-profile licensing agreement with Eli Lilly. The deal, valued at more than $19 billion, centers on precision RNA therapies aimed at treating hereditary hearing loss — marking one of the most significant cross-border biotech collaborations to date. 2025-05-29 11:40:37

Bank of Korea slashes interest rates as growth outlook dims sharply SEOUL, May 29 (AJP) - South Korea’s central bank lowered its benchmark interest rate by a quarter percentage point on Thursday, the latest in a series of moves aimed at propping up a flagging economy that is on track for its weakest performance in years. The Bank of Korea reduced the policy rate to 2.50 percent, its fourth cut in just seven months. The move comes amid mounting evidence of a slowdown, including a 0.2 percent contraction in gross domestic product during the first quarter, and follows a revised 2025 growth forecast of just 0.8 percent — down sharply from an earlier estimate of 1.5 percent. The bank’s downgraded outlook is notably more pessimistic than that of the Organization for Economic Cooperation and Development, which projects 1.5 percent growth, and the International Monetary Fund’s estimate of 1.0 percent. The timing of the rate cut — less than a week before a hotly contested presidential election — underscores the urgency of the economic challenges facing policymakers. Weighed down by sluggish domestic consumption and a slowdown in construction investment, the South Korean economy has struggled to regain momentum even as inflation pressures have eased. Adding to the headwinds are deteriorating export conditions, fueled in part by rising trade tensions with the United States. The Bank of Korea’s decision reflects a growing consensus among officials that additional monetary stimulus is needed to bolster confidence among businesses and consumers. "The economic conditions have turned out worse than expected, with various institutions continuously revising down their growth outlook for Korea," said Cho Young-moo, an economist at LG Economic Research Institute. The current easing cycle began last fall, when the BOK delivered back-to-back 0.25 percentage point cuts in October and November — its first consecutive reductions since the 2008 global financial crisis. After holding rates steady in January, the bank cut again in February before pausing in April. A stabilization in the Korean won has also given policymakers more leeway to ease. The currency, which had weakened sharply to nearly 1,490 to the dollar in April amid peak trade war fears, has since recovered to around 1,360. Still, concerns about the side effects of aggressive monetary easing remain. Property prices and household debt have both shown signs of acceleration, with major banks reporting an increase in household lending of 3.4 trillion won (about $2.5 billion) in May alone. The widening interest rate gap between South Korea and the United States — now at 2 percentage points — also raises the risk of capital outflows and renewed currency pressure, potentially undermining the central bank’s policy goals. Cho cautioned that the impact of the latest rate cut may be muted. “Lending conditions remain tight,” he said. “It’s questionable whether households and businesses can significantly increase borrowing just because rates have fallen a bit.” 2025-05-29 11:22:27

Korea weighs US trade demands with economic impact study SEOUL, May 28 (AJP) - South Korea has begun an economic feasibility study as part of ongoing trade consultations with the United States, signaling preparations for potential agreements that could carry broad implications for the country’s economy, according to government officials, Wednesday. The Ministry of Trade, Industry and Energy has commissioned the Korea Institute for International Economic Policy to assess the economic ramifications of current discussions with Washington. The talks have increasingly centered on non-tariff barriers and the goal of achieving more balanced trade. The latest move follows a second round of technical consultations held in Washington from May 20 to 22. For the first time in the ongoing talks, American negotiators raised concerns over non-tariff barriers affecting a range of sectors. These included long-standing issues related to South Korean restrictions on beef and rice imports — topics highlighted in the U.S. Trade Representative’s annual National Trade Estimate report released in April. The list of U.S. concerns also extends to market access limits on pet food containing ruminant ingredients, offset requirements in defense procurement, and regulatory obstacles for imported vehicles. Additional topics reportedly include pharmaceutical pricing mechanisms and restrictions on Google’s precision mapping services in South Korea. While the two sides have not yet entered into substantive negotiations on individual items, Seoul is conducting preliminary assessments under the Act on the Conclusion Procedure and Implementation of Commercial Treaties. The law mandates economic feasibility evaluations and parliamentary briefings for trade deals that could materially affect the national economy. “The United States may have put many issues on the table as part of negotiations, but given the compressed timeline and South Korea’s domestic circumstances, Washington is also aware that finalizing discussions in the short term will be difficult,” a South Korean government official said. Negotiators face a July 8 deadline to wrap up discussions, but final decisions are widely expected to be deferred until after South Korea’s presidential election on June 3, leaving key choices in the hands of the next administration. 2025-05-28 17:11:27

Trump tariff relief lifts Korea's business sentiment temporarily SEOUL, May 28 (AJP) - Business sentiment in South Korea posted its sharpest monthly increase in two years in May, bolstered by a temporary reprieve from U.S. trade tariffs, according to data released Wednesday by the Bank of Korea. Yet despite the surge, overall confidence remains mired below levels typically associated with economic optimism. The central bank’s composite business sentiment index (CBSI) climbed 2.8 points to 90.7 in May, marking its third consecutive monthly gain and the most significant increase since May 2023, when the index rose by 4.4 points. Still, the index remains well under the neutral benchmark of 100, indicating that more companies viewed business conditions negatively than positively. Manufacturers led the improvement, with their sentiment index rising 1.6 points to 94.7 — the fifth straight month of gains since dipping to 87.1 in December. The recovery was fueled in part by improved funding and operating conditions, the central bank said. "While the all-industry index has shown steady improvement, it still falls short of the long-term average of 100, making it difficult to describe the outlook as optimistic," said Lee Hye-young, a senior official at the Bank of Korea, during a press briefing. Lee added that the tariff reprieve provided only a temporary boost and warned that export performance remained subdued in most sectors, with the notable exceptions of semiconductors and shipbuilding. 2025-05-28 14:42:51

Stablecoin push by candidates raises alarm among regulators, experts SEOUL, May 28 (AJP) - South Korea’s leading presidential candidates have pledged to support the development of won-pegged stablecoins even as financial authorities urge caution. With an estimated 10 million South Koreans actively trading crypto, both front-runners have made digital asset policy central to their campaigns. Lee Jae-myung’s camp has formed a digital assets committee tasked with drafting comprehensive legislation, while Kim Moon-soo has proposed incorporating stablecoin regulation into a broader financial reform agenda. The candidates contend that South Korea must act swiftly to counter the growing influence of foreign-issued stablecoins, which are increasingly used for cross-border payments and decentralized finance platforms. Stablecoins — digital tokens typically pegged to fiat currencies like the U.S. dollar or euro — have gained traction globally for their potential to enable faster, lower-cost transactions while promising greater price stability. Yet the proposals have met with sharp scrutiny from monetary policy experts and financial regulators, who warn that privately issued won-backed stablecoins could encroach on sovereign monetary authority. Analysts argue that granting such power to non-governmental entities risks undermining the Bank of Korea’s control over the money supply. “There is a fundamental question of whether private issuers should have the ability to create won-denominated assets that effectively function as currency,” said Professor Park Sun-young of Dongguk University. “Without rigorous oversight, the risks are significant.” Skeptics also question the practicality of a won-based stablecoin, noting that the South Korean currency lacks the global demand enjoyed by the U.S. dollar. As a result, adoption of won-backed tokens beyond national borders would likely be limited, potentially constraining their utility in global crypto markets. Industry insiders further warn that unchecked issuance could introduce new risks to financial stability. A surge in redemptions — akin to a digital-era bank run — could trigger liquidity crises, as seen in prior cryptocurrency collapses. Professor Park pointed to past failures stemming from inadequate vetting of token issuers as a cautionary tale. Concerns about illicit activity are also rising. A 2024 report from blockchain analytics firm Chainalysis found that stablecoins were involved in approximately 63 percent of global crypto-related illicit transactions. Despite these concerns, both candidates are also pushing for regulatory changes that would allow for spot cryptocurrency exchange-traded funds (ETFs), which would enable South Koreans to invest in indices tied to bitcoin and ethereum through traditional stock exchanges. Current financial law prohibits virtual assets from serving as underlying components of ETFs. While crypto ETFs could broaden investor access to digital assets, regulators remain wary that they could siphon capital away from domestic equities, potentially undermining broader efforts to strengthen corporate governance and boost shareholder value in local markets. 2025-05-28 14:29:02

Lee Jae-myung's labor agenda could face resistance from chaebol, foreign firms Editor's Note: This is the second and last in a two-part series examining the economic campaign promises of Democratic Party presidential candidate Lee Jae-myung. SEOUL, May 27 (AJP) - South Korea's leading presidential candidate Lee Jae-myung of the Democratic Party has vowed to overhaul the country’s labor system and market practices in a bold attempt to forge what he calls a “basic society." Speaking days after a fatal industrial accident at an SPC bakery plant, Lee underscored the urgency of reform. “We must improve the shameful reality of a ‘labor-backward' country, where workplaces become sites of death, not life,” he said during a campaign stop on May 20. “As befits the world’s 10th-largest economy, we must correct the contradictions in our labor system.” Lee, a longtime advocate for labor rights, has made revitalizing the labor market a centerpiece of his campaign ahead of the June 3 presidential election. His platform includes backing the controversial Yellow Envelope Act, a legislative effort that seeks to expand the scope of legal labor disputes and limit employers’ ability to sue workers and unions for damages incurred during strikes. The measure, repeatedly vetoed by former President Yoon Suk Yeol, returned to the spotlight during the first televised debate of the campaign. The ruling People Power Party’s candidate, Kim Moon-soo, criticized the act as unconstitutional, while Lee defended it, citing support from both South Korea’s Constitutional Court and the International Labour Organization. The origins of the bill trace back to a turbulent labor dispute at SsangYong Motor in 2009, where a 77-day strike ended in violence and long-term trauma for many of the workers involved. A Supreme Court ruling in 2014 deemed the strike illegal and imposed 4.7 billion won in damages on the workers. In response, civic groups launched a donation campaign, symbolized by yellow envelopes — a gesture that later gave the act its name. If passed, the legislation would extend protections to indirectly employed workers and shield unions from excessive financial penalties. But business leaders warn it could embolden strike activity and deter foreign investment. A 2024 survey by the Federation of Korean Industries found that 59 percent of foreign firms operating in South Korea were skeptical of the proposal, fearing a 20 percent uptick in strike activity and a potential 15.4 percent drop in foreign direct investment. “The act could foster a culture of resolving disputes solely through strikes, rather than dialogue and cooperation,” said Lee Sang-ho, vice president of the FKI’s economic research department. Others have criticized the bill’s legal underpinnings. Cho Dong-geun, a professor emeritus at Myongji University, said it defies civil law norms. “The act obscures the distinction between legal and illegal strikes,” he said, warning that it “disrupts the fine line that defines the relationship between employers and employees.” Lee’s pro-labor vision goes even further. He has pledged to introduce a 4.5-day workweek with no reduction in pay — a move aimed at reducing South Korea’s notoriously long working hours. In a Facebook post in April, he called for aligning the country’s labor standards with the OECD average by 2030, with the ultimate goal of transitioning to a four-day week. Labor unions have welcomed Lee's idea, with both the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions voicing support. Pilot programs at companies like SK Telecom and POSCO have shown early signs of feasibility, allowing employees to take alternating Fridays off. Business groups, however, remain wary. On May 8, leaders of South Korea’s five major business lobby groups, including SK Group Chairman Chey Tae-won, met with Lee to voice concerns that the reduced workweek could hamper competitiveness and widen disparities between large corporations and small firms. According to a recent survey by the Korea Federation of SMEs, 42.4 percent of small business operators already struggle under the current 52-hour workweek. Lee’s labor agenda also includes enhancing workplace safety. He has pledged greater investment in healthcare and protections for workers exposed to hazardous environments. Parallel to his labor reforms, Lee has laid out an ambitious economic plan to boost fairness and transparency in South Korea’s markets. He has promised to crack down on stock price manipulation and pledged to implement a “one-strike-out” policy targeting malicious traders. Central to his economic vision is South Korea’s long-anticipated inclusion in the Morgan Stanley Capital International (MSCI) World Index — a designation that could attract significant foreign investment and enhance market stability. The country has pursued MSCI “developed market” status since 2008, and recent signs suggest momentum is building. In late 2024, the Financial Services Commission expressed optimism, citing progress in transparency and market infrastructure. Lee has also promised to address the so-called “Korea Discount,” a term used to describe the persistent undervaluation of South Korean stocks. In a social media post on May 25, he declared his intention to push the benchmark KOSPI index to 5,000 points — a level that would signal unprecedented investor confidence. “The revitalization of our stock market is the fastest and most accessible path to healthy asset growth for the people,” he wrote. As the June 3 election nears, Lee’s sweeping proposals — from labor rights to market reform — have sparked vigorous debate over whether South Korea can balance ambitious social change with economic competitiveness. But for Lee, the answer is clear. “We must boldly shift our policies to achieve a sustainable work-life balance,” he said. “Only then can our economy and our people truly thrive.” 2025-05-28 11:01:50

Bill proposed to curb foreign real estate purchases amid surge in Chinese investment SEOUL, May 27 (AJP) - A South Korean lawmaker has introduced legislation aimed at curbing foreign real estate acquisitions in the greater Seoul area, citing a sharp rise in Chinese purchases that he says are fueling speculation and distorting the housing market. Representative Koh Dong-jin of the ruling People Power Party submitted the bill to the National Assembly on Tuesday, proposing mandatory reciprocity measures and new permit requirements for non-citizens seeking to buy land in Seoul, Gyeonggi Province, and Incheon. The proposed restrictions come amid mounting concern over foreign investment in the country’s residential property market. According to government data cited by Koh, foreign real estate purchases in South Korea rose 12 percent in 2024 to more than 17,000 transactions. Of those, Chinese nationals accounted for approximately 65 percent, or 11,346 buyers. The capital region — already under pressure from soaring housing prices — has become a focal point. Gyeonggi Province recorded the highest number of foreign buyers at 7,842, followed by Incheon with 2,273 and Seoul with 2,089. Koh argued that the current legal framework creates a form of “reverse discrimination,” as South Korean citizens are subject to tight mortgage regulations, while some foreign buyers, particularly Chinese nationals, are able to obtain significant financing through banks in their home countries. “While our citizens are bound by stringent loan restrictions when purchasing homes, foreign nationals — especially from China — can access large-scale funding from overseas institutions and buy property here with relative ease,” Koh said during a press briefing. Although reciprocity clauses already exist in South Korean law, they are not compulsory and lack the enforcement mechanisms needed for implementation, Koh said. His bill seeks to make such measures mandatory, requiring the government to align real estate access for foreigners with the policies that South Korean nationals face in their respective countries. “When countries like China impose discriminatory restrictions on South Korean buyers, our government should respond with equivalent measures,” Koh said. 2025-05-27 16:05:54