Journalist

Kim Yeon-jae
  • Finance chief Koo departs for Paris G7 meeting, London investment relations session
    Finance chief Koo departs for Paris G7 meeting, London investment relations session SEOUL, May 18 (AJP) - Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol departed on Sunday to attend the Group of Seven Finance Ministers and Central Bank Governors meeting and to host a South Korean economy investment relations session. Amid expanding volatility in international oil prices and exchange rates driven by the stalled dispute between the U.S. and Iran, the government plans to manage national creditworthiness through briefings for foreign investors and consultations with financial authorities of major nations. According to the Ministry of Economy and Finance, Koo will attend the G7 Finance Ministers and Central Bank Governors meeting in Paris, France, on Tuesday. The meeting will be attended by G7 member nations—including the United States, Japan, the United Kingdom, France, Germany, Italy, and Canada—alongside invited countries such as South Korea, India, Brazil, and Kenya, and leaders of major international organizations including the IMF, World Bank, OECD, and Financial Stability Board (FSB). Koo is also scheduled to hold bilateral meetings with British Chancellor of the Exchequer Rachel Reeves, Canadian Minister of Innovation, Science and Industry François-Philippe Champagne, and German Vice Chancellor and Minister of Finance Lars Klingbeil to discuss economic and financial cooperation. While South Korea is not a full member of the G7, it has been repeatedly invited to major multilateral economic meetings due to its supply chain stability and competitiveness in the semiconductor and AI industries. The government is also emphasizing that South Korea can serve as a "middle-power platform" bridging advanced and emerging economies. The upcoming meeting will primarily focus on global imbalances and the establishment of international partnerships. Recently, "global imbalances"—such as excessive surpluses in China and oil-producing nations and foreign exchange instability in emerging markets caused by dollar dominance—have re-emerged as key global economic issues. In his opening remarks, Koo plans to emphasize that the complex crises stemming from the prolonged Middle East conflict cannot be resolved by the efforts of a single country, while sharing South Korea’s emergency economic response plans and policies to boost domestic demand and investment. He will also present perspectives on major global issues from a middle-ground position connecting G7 members and emerging countries. Prior to the G7 schedule, Koo will host an investment presentation on the South Korean economy for major global investment institutions in London on Monday morning, local time. The government plans to explain the global competitiveness of the Korean economy, alongside core policy directions such as capital market advancement and the implementation of a hyper-innovative economy, while calling for active investment expansion in South Korea. The government has recently focused on improving accessibility for global investors through foreign exchange market structural reforms and capital market advancement policies. Representative examples include the extension of foreign exchange market operating hours, the reorganization of the short-selling system, and efforts for inclusion in the World Government Bond Index (WGBI) since April, as well as ongoing bids to join the Morgan Stanley Capital International (MSCI) Developed Markets (DM) Index. London is evaluated as one of Europe's largest financial hubs, where major global bond and foreign exchange investors are concentrated. Amid expanding volatility in global capital flows due to geopolitical risks in the Middle East and a strong dollar, the government appears focused on securing trust in the Korean market through direct contact with overseas investors. On the same day, Koo will hold individual meetings with top executives from major global financial firms, including HSBC and Schroders. The meetings will cover the current state of the global economy and international financial markets, alongside explanations of the South Korean government’s foreign exchange and capital market reform efforts and improvements to the investment environment. Koo will subsequently meet with European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso to discuss development cooperation projects integrating artificial intelligence (AI) and support measures for developing nations. 2026-05-18 12:55:51
  • BOK brings on hawkish new member
    BOK brings on hawkish new member SEOUL, May 15 (AJP) - Kim Jin-ill, a former professor at Korea University, held his inauguration ceremony on Friday, to succeed Shin Sung-hwan, who retired from the Bank of Korea’s (BOK) Monetary Policy Board earlier this week. Kim is expected to strengthen the BOK’s hawkish stance with his focus on the traditional role of a central bank. Kim held a private inauguration ceremony at the BOK on Friday afternoon. This comes just four days after the Korea Federation of Banks (KFB) recommended him as a board member following Shin’s departure. Kim’s term officially began this Tuesday, immediately after Shin’s retirement, in accordance with the Bank of Korea Act. The right to nominate the five board members, excluding the BOK governor and senior deputy governor, lies with the BOK governor, the Minister of Economy and Finance, the Financial Services Commission chairman, the chairman of the Korea Chamber of Commerce and Industry, and the chairman of the KFB. Since Shin was appointed upon the KFB’s recommendation, the vacancy was filled by the same body. In contrast to Shin, who was known for his strong dovish tendencies—issuing seven dissenting opinions, five of which favored rate cuts—Kim is an expert who emphasizes the traditional roles of a central bank. He is recognized as a "U.S. expert," having conducted research as an invited economist at the U.S. Federal Reserve from 1996 to 1998 and from 2003 to 2010. Given that this appointment comes under the leadership of Governor Shin Hyun-song, a traditional financial stability advocate who succeeded former Governor Rhee Chang-yong, the central bank is expected to place more weight on monetary policy itself moving forward. Notably, Kim views himself as a relative hawk compared to other board members. In an interview with a media outlet shortly after his nomination, Kim stated that if he were to place a dot on the BOK’s dot plot, it would be "half a click (0.125 percent)" above the average or median. He did not hide his intention to prioritize financial stability, aligning with Governor Shin’s past stance of suggesting preemptive rate hikes during the 2008 financial crisis. In his inauguration speech on Friday, Kim opened by stating that "inflationary concerns have intensified due to high oil prices caused by the war in the Middle East" and mentioned exchange rate risks stemming from capital outflows. He clearly signaled that he would prioritize price stability. The increasing likelihood that the U.S. Federal Reserve will not cut interest rates is another burden. While Fed Chair-designate Kevin Warsh, often called a "hawkish dove" for advocating simultaneous balance sheet reduction and rate cuts, is set to begin his term soon, the timing of any cut has become uncertain. U.S. consumer prices rose 3.8 percent in April, the highest in about three years since May 2023. Some presidents of major regional Federal Reserve Banks, including Chicago and Boston, have even suggested rate hikes, forcing the BOK to prepare accordingly. However, Kim drew a line against the possibility of a radical rate hike, citing the 2,000 trillion won ($1.36 trillion) in household debt and the steady rise in apartment prices. Under the leadership of former Governor Rhee, the BOK had frozen the benchmark interest rate at 2.5 percent for seven consecutive sessions until April 10, following its last cut in May last year, to account for households' debt repayment capacity. Kim has not ruled out the possibility of aligning with this cautious approach. 2026-05-15 16:57:45
  • Artists Struggle with Lengthy Process of Arts Activity Certification
    Artists Struggle with Lengthy Process of Arts Activity Certification Illustrator Jeong So-hee took over two years to pass the Arts Activity Certification process. Despite having over 20 exhibitions to his name, he faced repeated rejections and requests for additional documentation before finally receiving approval this year. He stated, "I had to invest more energy in writing a report to prove I am an artist than in creating my work."The controversy surrounding the Arts Activity Certification is spreading throughout the cultural and artistic community. Artists point to the unclear evaluation criteria, prolonged delays in the review process, and administrative standards that are disconnected from reality as issues that need addressing.On November 6, 2010, Lee Jin-won, a solo indie band member of 'Moonlight Fairy Home Run,' was found dead at his home in Yeongdeungpo, Seoul. A few months later, on January 29, 2011, screenwriter Choi Ko-eun was discovered dead at her residence in Seoksu-dong, Anyang. Both artists were well-known in the indie music and film industries but struggled with financial difficulties due to unfair contract structures and unstable incomes. Their deaths prompted the enactment of the 'Arts Welfare Law' on November 18, 2012, which led to the establishment of the Arts Welfare Foundation the following day.The Arts Activity Certification system aims to provide a minimum social safety net and access to welfare for struggling artists. It is considered a necessary qualification for applying to various government and public institution support programs, including creative grants, rental housing, employment insurance, and loan programs.However, artists on the ground express a lack of guidance regarding the system.Visual artist Shin Yoon-jung applied for the Arts Activity Certification four times but was rejected each time. He said, "I was at a loss about how to prepare because I couldn't understand the criteria for sincerity. Even trying to guess based on the experiences of other artists, the standards kept changing."Shin also eventually passed the review but has yet to receive a clear explanation from the welfare foundation regarding the reasons for his approval. He expressed concern about not being able to endure the same process if he were to be rejected in the next review.The review period has also been problematic. Artists, including Jeong and Shin, reported waiting at least three to six months for the results of their re-evaluations.Han Mo, 31, who has worked in stage direction, shared, "I received a 'not approved' notice while on my way from a logistics center to the theater. It felt pointless after waiting four months."Discrepancies between the review criteria and reality have also come under scrutiny.A flat painter pointed out that participation in art fairs, which are auction-style exhibitions, is not recognized as artistic activity. "The fastest way to establish a long-term relationship with a gallery and hold a solo exhibition is to pay to participate in an art fair," the artist explained. Despite submitting a history of participating in a prominent art fair known for showcasing emerging artists for several years to prove 'continuity,' he received a response stating, 'it cannot be recorded.'He added, "It doesn't make sense that even major art fairs like Kiaf/Frieze, which the First Lady has attended, cannot be recorded as they are not considered 'solo exhibitions.'"As dissatisfaction grew within the arts community, a discussion on the Arts Activity Certification was held on April 22, organized by lawmaker Son Sol at the National Assembly's Culture, Sports and Tourism Committee. Participants criticized the lack of clarity in evaluation criteria, poor communication, and the opacity of the review process.Installation artist Lee Seung-hyun stated, "We are not asking for the threshold to be lowered indiscriminately; we want to know what the problems are and what criteria lead to rejection."Calls for transparency in the review process were also voiced. Actor Oh Se-gon, who participated in the initial design task force for the Arts Activity Certification system, emphasized the need to clarify who the committee members are and whether there were offline discussions and debates.A survey conducted by artists themselves revealed similar sentiments. About 63.6% of respondents deemed the current evaluation criteria inappropriate, and 53% reported a lack of feedback regarding reasons for rejection.The Ministry of Culture and the welfare foundation also had their perspectives. Kim Ga-jin, head of the planning and coordination team at the Korea Arts Welfare Foundation, stated during the discussion, "We need to verify whether individuals are truly pursuing art as a profession, whether their results can be documented, and whether their works have been consumed and distributed to the public." She explained that the increasing number of applicants who do not meet all three criteria has made rejections unavoidable.Regarding delays in the review process, she noted, "The number of applications has surged, but we lack sufficient personnel to handle them," adding that currently about ten staff members are responsible for the reviews.As of March 2026, there are five full-time and five contract workers involved in the Arts Activity Certification review process. With 43,419 applicants' documents being reviewed by just over ten people, the lack of established criteria and delays are understandable, according to their explanation.However, there are voices on the ground that find these explanations insufficient.A notable example is the 'Youth Artists' Arts Activity Savings Account' program, which began last year. This initiative allows young artists to save a certain amount, with the government matching that amount. The program saw a large influx of applicants.However, as of February 4, 2026, the application period closed within half a day due to being 'first-come, first-served.' Critics point out the contradiction in explaining that the review process takes a long time due to a shortage of reviewers while support program applications close within a day.This year, the total budget for the Ministry of Culture, Sports and Tourism is approximately 7.8555 trillion won, an 11.2% increase from last year. Of this, the Arts Welfare Foundation's share is around 200 billion won. However, how that money is spent remains unclear.Artists emphasize that understanding the actual creative environment is more important than simply increasing the budget. Jeong, who previously spoke to the media, questioned, "I want to ask if the current criteria truly serve artists who are solely dedicated to creation," stressing the need for a broader understanding of artists' creative activities.* This article has been translated by AI. 2026-05-15 09:17:31
  • Koreas import prices ease in line with softer oil prices
    Korea's import prices ease in line with softer oil prices SEOUL, May 15 (AJP) - South Korea’s import prices fell against a double-digit jump in March last month on eased international oil prices despite prolonged Middle East crisis, helping to feed robust trade terms despite slower growth in export prices from strong chip demand. The import price index fell 2.3 percent in April after a 18 percent surge seen in March on lower international oil prices and U.S dollar. As the average price of Dubai crude fell 17.8 percent month on month in April, import prices of raw materials, including mining products, dropped 9.7 percent. Intermediate goods, which are closer to the prices felt by businesses, rose 2.1 percent from the previous month due to a lagging effect. Despite the decline in oil prices, products such as coal and petroleum (up 6.2 percent) and chemical products (up 1.7 percent) continued their upward trend as previous energy price hikes were reflected with a time lag. Against a year-ago, import prices were 20.2 percent higher. Among import items, mining products including crude oil jumped 36.5 percent on year, while import prices for coal and petroleum products rose 67.0 percent, further fueling overall upward inflationary pressure. Export prices rose 7.1 percent from the previous month, slowing from 17-percent jump in March. On year, they were 40.8 percent higher, strongest since 57.8 percent surge in March 1998. Key IT items, such as DRAM (up 232.8 percent) and computer storage devices (up 149.2 percent), led the index rise. Export price strengthening is primarily owed to semiconductor boom, unlike the past - when the surge was driven by a weak won plummeted around 1,800-level as of late 1997 and early 1998, and the transfer of raw material prices. Trade indicators improved as export prices (up 33.6 percent) rose at a faster pace than import prices (up 16.9 percent), leading to an increase in the net terms-of-trade index (up 14.3 percent) and the export volume index (up 12.4 percent). Yet, the situation requires close monitoring as upward pressure on prices across the industry remains firm. "While the rise in import prices has slowed due to the fall in international oil prices, intermediate goods prices remain high due to the time-lag effect," said Lee Moon-hee, head of the Price Statistics Team at the BOK’s Economic Statistics Department. "Given the continued rise in export prices driven by semiconductors and the fact that geopolitical risks in the Middle East have not been fully resolved, we must closely monitor the impact on domestic consumer prices in the future.” 2026-05-15 08:43:44
  • Financial chiefs monitor market volatility, Samsung strike risks
    Financial chiefs monitor market volatility, Samsung strike risks SEOUL, May 14 (AJP) -The so-called 'financial four (F4)' - chiefs responsible for fiscal, monetary, and financial policies - gathered Thursday to monitor recent volatility in the financial and foreign exchange markets, assess risks stemming from the war in the Middle East, and discuss market stabilization measures. Notably, the meeting also addressed the potential impact of a general strike at Samsung Electronics, the nation's largest company, on the financial market and the real economy. Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, presided over the joint market monitoring meeting at the Korea Federation of Banks in Seoul. The meeting was attended by Bank of Korea (BOK) Governor Shin Hyun-song, Financial Services Commission Chairman Lee Eog-won, and Financial Supervisory Service Governor Lee Chan-jin. The policy chiefs evaluated that the Korean economy continues to show higher-than-expected growth driven by robust semiconductors, with the fundamentals of the macroeconomy and financial markets remaining solid. Still, the volatility in the won-dollar exchange rate has expanded recently due to the prolonged Middle East conflict, rising international oil prices, and uncertainty regarding the monetary policies of major economies. Korea's gross domestic product (GDP) grew 1.7 percent in the first quarter, doubling the previous consensus of 0.9 percent. However, during the same period, the average exchange rate reached 1,469 won per dollar, weakening by more than 1 percent from 1,453.5 won in the previous quarter. Government bond yields also rose by an average of 35.4 bps for the three-year bond and 41.1 bps for the 10-year bond. KOSPI has grown into a globally top-tier market based on the competitiveness and earnings of key industries like semiconductors. However, they shared the consensus that efforts to improve the structure of the capital market must continue for it to solidify its position as a world-class market. As of Thursday's close, Samsung Electronics and SK hynix accounted for 48.1 percent of the total KOSPI market capitalization, raising concerns about a "K-shaped" polarization in the securities market. Regarding the weakness in the bond market, officials explained that the recent rise in treasury bond yields resulted from global inflation concerns, shifts in expectations for major countries' monetary policies, and strong first-quarter GDP growth. The government evaluated that the structural demand base for the bond market is improving, supported by healthy fiscal soundness and capital inflows following the inclusion in the World Government Bond Index (WGBI). They agreed the recent weakness of the won is excessive relative to the country's economic fundamentals. The government diagnosed that recent net selling of domestic stocks by foreign investors and an increase in offshore speculative trading have increased exchange rate volatility. They pointed out foreign exchange liquidity remains at a good level, and institutional improvements such as the WGBI inclusion, the National Pension Service’s new framework, and the Return-to-Korea Investment Account (RIA) are contributing to the stabilization of supply and demand. They projected that the exchange market would stabilize quickly if external uncertainties, such as the Middle East war, ease, supported by a record-high current account surplus. The meeting also touched upon the labor conflict at Samsung Electronics. Participants expressed concern that a general strike could pose significant risks to growth, exports, and the overall financial market, emphasizing the need for a swift resolution through principled negotiations. The management and labor union of Samsung Electronics have held negotiations since their first 2026 wage talk meeting on December 11 last year, but failed to bridge differences over the restructuring of the performance-based bonus system and the removal of the salary cap. The union secured the right to strike with a 93.1 percent approval rate in a March 18 vote and has intensified its struggle through rallies. Following mediation by the Ministry of Employment and Labor and the National Labor Relations Commission, post-adjustment procedures were held from May 11 to 13 but failed to reach a final agreement. Immediately after the breakdown of talks, the union announced it would go on a full-scale strike for 18 days, from May 21 to June 7. 2026-05-14 17:36:56
  • Koreas gold restraint pays off amid Gulf crisis
    Korea's gold restraint pays off amid Gulf crisis SEOUL, May 14 (AJP) - Restraint from joining the global gold rush may have worked in the favor of the Bank of Korea, as the country’s relatively low gold exposure helped shield South Korea from sharper foreign reserve losses during market turmoil triggered by the Iran war earlier this year. As oil prices surged following the outbreak of the conflict in late February, governments around the world drew down reserves in March to stabilize currencies and protect their economies. South Korea’s foreign reserves fell by $4 billion as authorities intervened to defend the won after it weakened beyond 1,490 per dollar, according to the BOK. Despite the intervention, the decline was among the smallest recorded among major reserve-holding countries. China’s reserves fell by $85.7 billion in March, while India’s dropped by $37.4 billion. Russia posted a $60 billion decline and Germany recorded a $69.2 billion decrease. Among the world’s 12 largest reserve holders, only Saudi Arabia outperformed South Korea, posting a $20 billion increase as Dubai crude prices averaged more than $120 per barrel during the month. Analysts say South Korea’s comparatively low exposure to gold helped cushion reserve volatility as the precious metal — traditionally regarded as a safe-haven asset — turned unexpectedly volatile during the crisis. Although the U.S. dollar index rose above 100 following the blockade of the Strait of Hormuz and a broader flight toward safe assets, international gold prices fell sharply in March. Prices dropped 3.3 percent to $4,867.7 per troy ounce from $5,034.4 in February. The decline erased roughly half of February’s gains, when gold prices had climbed nearly 6 percent from the previous month. Gold prices continued to weaken through April and May even as the dollar index remained near 98. The April average slipped below $4,800 per troy ounce, and by Thursday prices had fallen further to $4,688. Analysts attributed the downturn partly to the scale of gold’s earlier rally. Prices, which stood near $2,700 per ounce in January last year, had surged to more than $5,100 by January this year — an increase of roughly 80 percent in just 12 months. Expectations that U.S. interest rates had peaked also contributed to the rally. When U.S. consumer inflation remained stable at 2.4 percent year-on-year in January, markets increasingly expected the Federal Reserve to cut rates and resume quantitative easing in line with the policy stance of President Donald Trump. The yield on the 10-year U.S. Treasury bond remained near 4.1 percent at the time. The outbreak of war quickly altered those expectations. Average March prices for the world’s three major oil benchmarks — West Texas Intermediate (WTI), Brent and Dubai crude — all exceeded $100 per barrel, fueling renewed inflationary pressure. The U.S. Consumer Price Index rose 3.3 percent in March and 3.8 percent in April, while 10-year Treasury yields climbed above 4.4 percent by Thursday. The shift prompted policymakers to adopt a more hawkish tone. Kevin Warsh, considered a leading contender to become the next Federal Reserve chair, stressed the need to contain inflation during a late-April hearing and rejected expectations of automatic quantitative easing. Central bank officials across Asia have echoed similar concerns. Major Asian central bank officials including Reserve Bank of India (RBI) Governor Sanjay Malhotra and Bank of Korea (BOK) Senior Deputy Governor Ryoo Sang-dai have both indicated that additional rate hikes may need to be considered if inflationary pressure intensifies. With gold retreating from record highs and the prospect of higher interest rates reemerging, investors have increasingly shifted funds back toward currency and bond markets. “During wars tied directly to energy supply disruptions, gains in gold prices have historically been more limited than during broader financial crises,” a foreign exchange dealing room official said on condition of anonymity. “Because gold prices had already surged to unprecedented levels before the Strait of Hormuz blockade, the base effect is becoming increasingly pronounced,” the official added. 2026-05-14 17:29:48
  • Chief of newly-launched budget ministry meets BOK governor
    Chief of newly-launched budget ministry meets BOK governor SEOUL, May 14 (AJP) - Park Hong-geun, the chief of the newly-launched Ministry of Planning and Budget, met with Bank of Korea (BOK) governor Shin Hyun-song in Seoul on Thursday. They discussed ways to strengthen cooperation in fiscal and monetary policy, as well as in establishing future strategies. During their talks at the Bank of Korea headquarters in central Seoul, both sides expressed concerns that, while exports remain robust, inflationary pressures are rising due to the prolonged war in the Middle East and sustained high oil prices. They also agreed on the need to focus on stabilizing livelihoods by ensuring price stability and increasing support for the underprivileged. Their first such meeting comes as the government pushes for fiscal expansion and structural reforms. As an icebreaker at the start of the meeting, Park presented a pine bonsai to Shin, saying, "Just as the roots and trunk of a pine tree depend on each other, let us continue to cooperate." "Close coordination between the ministry and the central bank has never been more important," Park said. "No single institution can tackle these economic challenges alone," Shin replied. The two sides also stressed the need for cooperation in addressing major challenges such as the transition into the artificial intelligence (AI) era, demographic shifts, climate change, growing wealth inequality, and regional economic imbalances. Park outlined plans to establish mid- to long-term strategies in close collaboration with the Bank of Korea. Shin pledged that the BOK would actively cooperate. Shin said the central bank would expand its role beyond its traditional focus on price and financial stability, actively researching and offering policy proposals on growth and structural reform, an approach in line with that of his predecessor, Rhee Chang-yong. The two also agreed to meet more frequently to share key issues and to continue close cooperation. 2026-05-14 15:34:54
  • Fiscal deficit narrows on stronger tax revenue, debt burden persists
    Fiscal deficit narrows on stronger tax revenue, debt burden persists SEOUL, May 14 (AJP) — South Korea’s fiscal balance improved significantly in the first quarter of this year as tax revenues continued to recover, feeding the government rationale for more aggressive policy to counter import inflationary risks amid protracted Middle East conflicts. According to the Ministry of Planning and Budget on Thursday, total revenue from January to March reached 188.8 trillion ($128.5 billion) won, an increase of 28.9 trillion won from a year earlier. The surge in tax revenue is attributed to the recovery of the semiconductor industry and active stock market trading. Analysts evaluate that the stock market rally centered on AI semiconductors and improved corporate earnings led to increased tax revenue from securities transactions and corporate taxes. Despite the market plunge in March caused by the war involving the United States and Iran, the benchmark KOSPI rose 20 percent during the first quarter. During the same period, Samsung Electronics and SK hynix recorded a combined operating profit of 94 trillion won, once again hitting record highs. National tax revenue rose by 15.5 trillion won to 108.8 trillion won, while total expenditure stood at 211.6 trillion won - up only 1.7 trillion won from a year ago. Consequently, the managed fiscal balance—a key gauge of fiscal health that excludes social security funds—recorded a deficit of 39.6 trillion won. The deficit narrowed by 21.7 trillion won compared to the same period last year. The government evaluated the fiscal conditions as gradually stabilizing, noting that the managed fiscal deficit as of March is at its lowest level since 2020. However, some in the market remain cautious about whether this improvement will lead to a structural recovery of fiscal soundness. A major burden is the central government debt, which remained at a high level in the 1,300 trillion won range. Concerns are also being raised that the growth of national debt could accelerate again, given the potential for additional fiscal spending to counter an economic slowdown, mitigate high oil price shocks, and support youth employment. The budget ministry explained that "the March results are based on figures before the passage of the supplementary budget." President Lee Jae Myung supported an expansionary stance during a Cabinet meeting on Tuesday, stating that "more money needs to be released." The government closed the first round of applications for high oil price damage relief funds from April 27 to May 8 and plans to begin the second round of applications next Monday. Total spending for the relief is expected to exceed 6 trillion won. 2026-05-14 13:30:44
  • KOSPI hits fresh high, fully recovering from previous losses as most Asian markets rally
    KOSPI hits fresh high, fully recovering from previous losses as most Asian markets rally SEOUL, May 13 (AJP) - Asian stock markets largely shrugged off the overnight slump in Wall Street triggered by higher-than-expected U.S. consumer inflation. However, Taiwan's benchmark index, which is heavily reliant on the semiconductor industry, was the sole decliner among major Asian markets amid weaker U.S. market sentiment. The South Korean won ended at 1,494.5 per dollar, sharply down 15.5 won from the previous session. The global dollar strength was reignited as the U.S. Consumer Price Index (CPI) for April rose 3.7 percent on year, surpassing market expectations and dampening hopes for an early interest rate cut by the Federal Reserve. Government bond yields retreated across both short- and long-term maturities - signaling a rise in bond prices - reversing the previous day's sharp ascent. Investor sentiment was bolstered as Cheong Wa Dae directly addressed policy uncertainties surrounding the "AI dividend," easing relevant concerns. The three-year treasury bond yield fell 4.2 bps to 3.520 percent, while the 10-year yield dropped 3.8 bps to 3.615 percent. The benchmark KOSPI surged 2.63 percent on Wednesday to close at 7,844.01, fully recovering from the previous day's 2 percent loss and setting a new record high. Retail and institutional investors led the rally, net buying 1.89 trillion won (US$1.26 billion) and 1.69 trillion won, respectively. In contrast, foreign investors extended their selling streak, offloading 3.73 trillion won. The index had initially opened lower following a more than 2 percent drop the previous day, after Kim Yong-beom, the senior presidential secretary for policy, abruptly raised the idea of a dividend from brokerage profits. However, the mood shifted as government officials distanced themselves from Kim's remarks. Expectations also grew for semiconductor stocks ahead of the summit between U.S. President Donald Trump and Chinese President Xi Jinping. Market heavyweights SK hynix and Samsung Electronics saw divergent fortunes. SK hynix soared 7.7 percent to close at 1,976,000 won ($1,322.25). Meanwhile, Samsung Electronics edged up 1.8 percent to 284,000 won, as its gains were capped by an ongoing general strike despite hopes for the U.S.-China summit. Hyundai Motor, which held its ground during Tuesday's sell-off, jumped 9.9 percent to end at 710,000 won. The gain reflected delayed positive sentiment following the release of a demonstration video for the "Atlas" humanoid robot by its subsidiary, Boston Dynamics. Conversely, secondary battery stocks struggled or saw limited gains as the higher-than-expected U.S. CPI pushed back rate cut expectations. LG Energy Solution fell 2.93 percent to 430,000 won, while Samsung SDI edged up 0.8 percent to 634,000 won. The tech-heavy KOSDAQ slipped 0.2 percent, weighed down by a 4 percent drop in secondary battery leader EcoPro BM, which closed at 197,100 won. In Japan, the Nikkei 225 gained 0.84 percent to close at 63,272.11. Market leader Toyota Motor led the rise, jumping 3.4 percent to 2,940 yen ($18.85). Honda Motor, which recently scaled back operations and exited some overseas markets like South Korea due to poor performance, also rose 1.3 percent to 1,272 yen. Having said that, semiconductor equipment makers struggled as the U.S. accelerated the "MATCH Act," which broadly bans exports of semiconductor equipment to China. Advantest fell 1.45 percent to 28,290 yen, and Tokyo Electron dropped 1.57 percent to 51,340 yen. The TAIEX was the only major regional index to fall, declining 1.25 percent to 41,374.50. The index was hit hard by news that Apple decided to outsource some chip orders to Intel. TSMC fell 1.6 percent to 2,220 Taiwan dollars ($68.41), and MediaTek slumped 5.54 percent to 3,495 Taiwan dollars. Mainland Chinese shares rallied on expectations for the U.S.-China summit. The Shanghai Composite rose 0.67 percent to 4,242.57, while the Shenzhen Composite climbed 1.67 percent to 16,089.75. 2026-05-13 17:29:27
  • Lee hosts U.S., Chinese economic chiefs ahead of Trump-Xi summit
    Lee hosts U.S., Chinese economic chiefs ahead of Trump-Xi summit SEOUL, May 13 (AJP) - President Lee Jae Myung on Wednesday had back-to-back meetings with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who visited South Korea just a day before the scheduled U.S.-China summit in Beijing. According to the presidential office, Lee met He and Bessent separately on Wednesday morning. Following their meetings with the president, the two officials united at Incheon International Airport for last-minute fine-tuning ahead of the summit between the United States and China, set to take place in Beijing from Thursday. During the meeting with Bessent, Lee reportedly explained the South Korean government's commitment to implementing investments in the United States, including the MASGA project. It is also speculated that Lee requested cooperation on security and economic issues, such as the introduction of nuclear-powered submarines, which was previously discussed between the leaders of South Korea and the U.S. In the meeting with He - accompanied by Li Chenggang, China's international trade representative and vice minister of commerce - discussions reportedly centered on South Korea-China relations and economic cooperation measures. Lee referred to China as a key strategic cooperative partner for South Korea and emphasized the necessity of horizontal and mutually beneficial cooperation between the two nations. Bessent and He began a private meeting in the VIP lounge of Incheon International Airport around 12:30 p.m. Bessent arrived at Incheon Airport earlier in the morning, traveled to the Blue House to meet Lee, and then returned to the airport for the consultation. The two sides are expected to coordinate economic and trade issues, including tariffs and global supply chain stability, ahead of the summit. Both parties entered the meeting without making any public remarks. Bessent is flying to Japan to meet Finance Minister Satsuki Katayama before joining Trump in Beijing. 2026-05-13 15:04:57