Journalist

Kim Hee-su
  • K9 howitzers expand in Europe with additional orders from Finland
    K9 howitzers expand in Europe with additional orders from Finland SEOUL, April 10 (AJP) -South Korea will export an additional 112 K9 self-propelled howitzers to Finland under a government-to-government (G2G) deal valued at 546 million euros ($634 million), marking a follow-up order from the Nordic country after its initial purchase in 2017. The agreement was signed in Helsinki between the Korea Trade-Investment Promotion Agency, representing the Korean government, and Finland’s defense ministry, according to the Defense Acquisition Program Administration. Under the contract, Hanwha Aerospace will supply 112 K9 howitzers. Finland previously acquired 96 units through a similar G2G agreement in 2017. The latest deal follows about seven months of negotiations involving KOTRA, Hanwha Aerospace, the Defense Acquisition Program Administration and the Korean embassy in Finland. Officials from both sides attended the signing ceremony, including KOTRA President Kang Kyung-sung and Oli Ruutu, director general for resource policy at Finland’s defense ministry. The K9 howitzer has been in operation in Finland for eight years, where it has been deployed in harsh conditions including extreme cold and heavy snowfall. The additional order reflects continued confidence in the system’s mobility and firepower under such environments, officials said. The G2G export framework allows the Korean government to participate directly in contracts alongside private firms, supporting negotiations, legal reviews and communication with the purchasing country. The structure is designed to reduce risks for exporters and improve transparency in the contracting process. The follow-up order comes as South Korea’s defense exports continue to expand in Europe amid shifting security dynamics, including strains within the North Atlantic Treaty Organization and heightened geopolitical tensions following Russia’s war in Ukraine. The K9 howitzer is currently operated by more than 10 countries, including six NATO members. Upon increasing demand, Hanwha Aerospace has been ramping up manufacturing base in Europe. In February, the company began construction of a production facility in Romania, dubbed “H-ACE Europe,” to manufacture K9 howitzers and K10 ammunition resupply vehicles locally. The facility will include assembly, testing and maintenance capabilities, with localization rates targeted at up to 80 percent. Romania signed a deal in 2024 to purchase 54 K9 units and 36 K10 vehicles, becoming the 10th member of the K9 user group and the sixth NATO country to operate the system. 2026-04-10 07:49:38
  • HD Hyundai Heavy builds first ammonia-powered vessel, signaling shift in green shipping fuel race
    HD Hyundai Heavy builds first ammonia-powered vessel, signaling shift in green shipping fuel race SEOUL, April 09 (AJP) - HD Hyundai Heavy Industries has built the world’s first ammonia-powered gas carriers, marking a significant step toward commercializing next-generation eco-friendly vessels. According to shipbuilding industry sources Thursday, HD Hyundai Heavy Industries held a naming ceremony at its Ulsan shipyard for two 46,000-cubic-meter medium-sized gas carriers equipped with dual-fuel engines. The vessels are designed to run on ammonia and liquefied petroleum gas (LPG), representing the first commercial-scale ammonia-fueled ships. The ships are equipped with safety systems including ammonia leak detection and recovery technologies, highlighting that ammonia-powered vessels are moving beyond experimental development and entering the commercialization phase. Pressure to decarbonize shipping has intensified in recent years as the International Maritime Organization (IMO) tightens emissions regulations and major cargo owners increase environmental, social and governance (ESG) requirements. Shipping companies are increasingly seeking alternatives to fossil fuel-based vessels to maintain long-term competitiveness. Liquefied natural gas (LNG) has served as a transitional fuel, while methanol-powered ships have recently gained traction. However, LNG still produces carbon emissions, and methanol is not considered fully carbon-free. As a result, ammonia and hydrogen have emerged as leading candidates for zero-carbon maritime fuels. Ammonia is widely viewed as the most viable next-generation fuel due to its higher storage density compared with liquefied hydrogen and the ability to store it under less extreme conditions. It also produces no carbon dioxide emissions during combustion, making it a zero-carbon fuel. The International Energy Agency (IEA) projects that ammonia could account for up to 46 percent of shipping fuel by 2050, reflecting its technical and economic advantages. The company has also collaborated with global energy and shipping firms such as Exmar and Trafigura, securing not only technology validation but also early demand for ammonia-powered vessels. Challenges remain, however. Ammonia’s high toxicity makes safety a key concern, while the development of fuel supply infrastructure and cost competitiveness will determine the pace of adoption. Industry watchers say the focus of shipbuilding competition is shifting from order volume to commercialization of eco-friendly fuel technologies. As the transition moves from LNG to methanol and now ammonia, companies that secure early technological leadership are expected to gain an advantage. 2026-04-09 16:53:49
  • HMM union moves toward industrial action over headquarters relocation
    HMM union moves toward industrial action over headquarters relocation SEOUL, April 09 (AJP) - Labor-management negotiations at HMM over the planned relocation of its headquarters have collapsed, raising the prospect of industrial action by the union. HMM’s land-based workers’ union said Thursday that talks with management regarding the headquarters relocation had broken down. The union added it plans to begin procedures for industrial action, including filing for mediation with the labor authorities. In a statement released the same day, the union expressed regret over the collapse of negotiations, blaming what it described as the company’s unilateral push to relocate the headquarters. “It is deeply regrettable that negotiations collapsed due to the company’s unilateral attempt to proceed with the headquarters relocation,” the union said. “Filing for mediation is an unavoidable step to protect the rights of our members.” Despite moving toward industrial action, the union emphasized that it remains open to continued dialogue with management. “Applying for mediation does not mean a breakdown in communication,” the union said. “We are always ready to sit down with management with an open attitude and seek a reasonable solution.” The union also urged the company to take a “sincere and forward-looking approach” in future negotiations. The breakdown in talks is expected to intensify labor-management tensions over the headquarters relocation. Depending on the outcome of mediation by the labor commission and whether the union secures legal grounds for industrial action, the dispute could escalate into collective actions such as strikes. The conflict comes as the headquarters relocation appears to be nearing finalization. On March 31, HMM’s board approved amendments to the company’s articles of incorporation to relocate its headquarters to Busan. The move is backed by major shareholders including Korea Development Bank, which holds a 35.42 percent stake, and Korea Ocean Business Corp., which owns 35.08 percent, giving them a combined stake exceeding 70 percent. Meanwhile, the recently enacted “Yellow Envelope Law” — revisions to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act — designates workplace relocation as a mandatory subject for labor-management negotiations. This has increased the likelihood that the relocation could trigger labor disputes if pursued without agreement. Industry observers are also watching closely, noting that the dispute could extend beyond a simple relocation issue and impact the broader shipping sector. As HMM is South Korea’s largest national shipping company, prolonged labor tensions could potentially lead to disruptions in logistics operations, they added. 2026-04-09 16:04:38
  • Hormuz reopening hinges on Iran control as Korean tankers await passage
    Hormuz reopening hinges on Iran control as Korean tankers await passage SEOUL, April 08 (AJP) - The United States and Iran have agreed to a dramatic two-week ceasefire centered on reopening the Strait of Hormuz, but when, how — and more importantly, at what cost — stranded South Korean vessels can pass safely remains uncertain. The presidential office in Seoul on Wednesday said the ceasefire had created conditions for resuming transit through the strait, adding that the government would step up coordination with shipping companies and communication with relevant countries to facilitate the passage of Korean vessels. “As Iran has indicated that transit will resume under coordination with its military and technical constraints, we are closely monitoring the situation and working with relevant countries to clarify specific transit methods and conditions,” an official said. Presidential Chief of Staff Kang Hoon-sik, who left Tuesday as special envoy leading a Korean delegation on an energy mission to Kazakhstan, Oman and Saudi Arabia, is expected to spearhead negotiations. The temporary truce, reached hours before a U.S. strike deadline, includes Iran allowing ship passage through the strategic waterway, a critical route for global oil shipments. President Donald Trump said he agreed “to suspend the bombing and attack of Iran for a period of two weeks” as long as Iran ensures “the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.” But Tehran has signaled it retains control over who gets through. Iran has attacked at least 19 vessels near the Strait — which links the Persian Gulf to the Gulf of Oman — since the start of the war. The nearly six-week disruption has choked global crude supply and rattled markets. On Wednesday morning, Iran’s foreign minister said, “safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces.” Iran and Oman are expected to charge ships for transit during the ceasefire period, according to Iran’s semi-official Tasnim news agency. Iran said vessels would be allowed to pass during the two-week pause, but only under coordination with its armed forces and subject to operational restrictions — effectively maintaining control over the waterway. Iran’s Supreme National Security Council also emphasized “regulated transit” as part of its proposed peace framework, signaling that Tehran intends to retain leverage over the chokepoint even during the ceasefire. Shipping industry reports suggest restrictions may go further. According to Lloyd’s List, vessels transiting the strait are increasingly required to follow procedures linked to Iran’s Islamic Revolutionary Guard Corps (IRGC), including what industry sources describe as a de facto “toll-booth” system controlling maritime traffic. If sustained, such an arrangement would allow Iran to exert economic leverage without formally closing the strait. Seven Korean oil tankers are awaiting safe passage, with authorities closely watching whether they can transit within the ceasefire window. More broadly, 26 South Korea-linked vessels — including crude oil tankers, bulk carriers and gas carriers — remain stranded near the Persian Gulf, underscoring the stakes for the country’s energy security. Around 70 percent of South Korea’s crude oil imports pass through the Strait of Hormuz, making safe passage particularly critical. Iran’s ambassador to South Korea, Saeed Koozechi, signaled that control of the waterway remains central to Tehran’s strategy. In a radio interview on Wednesday, he criticized U.S. policy and suggested restrictions could persist as long as hostilities continue. “The responsibility for the current situation and the economic damage to other countries lies with the United States and the Trump administration,” he said. “Rather than blaming Iran, the world should criticize U.S. actions driven by Israel’s demands in a region that serves as a vital global energy corridor.” He added that restrictions could remain in place while conflict conditions persist. “The most important issue is who controls the Strait of Hormuz. Our objective is to manage and block all military and economic elements that could benefit the enemy,” he said. However, the ambassador said he had no specific information indicating that vessels were being required to pay tolls for transit through Iranian waters, appearing to downplay reports of such arrangements. His deputy told AJP separately, “We did not mention the name of any vessels or any country. It is a general regulation. Our minister also said in a statement this morning that passage through the Strait of Hormuz is possible, but only through coordination with Iran’s armed forces.” “I do not know about the technical limitations or the details,” he added. “This is not the end of the war — only a two-week ceasefire.” While the ceasefire has eased immediate fears of escalation, Iran has also proposed measures such as transit fees and continued coordination requirements, suggesting that passage may remain controlled rather than fully restored. The temporary nature of the truce adds further uncertainty. Officials say the two-week window is intended to allow negotiations, but it could collapse if hostilities resume. For South Korea, the coming days may prove decisive. If the seven oil tankers successfully transit the strait, the country could secure an estimated 14 million barrels of crude, offering relief to energy markets strained by the conflict. However, with Iran maintaining operational control and the ceasefire limited to two weeks, shipping companies and insurers remain cautious — leaving the safe passage of Korean vessels far from assured. Contribution by Joonha Yoo 2026-04-08 17:29:28
  • POSCO to directly hire 7,000 subcontractor workers in major labor overhaul
    POSCO to directly hire 7,000 subcontractor workers in major labor overhaul SEOUL, April 08 (AJP) - POSCO has announced a sweeping plan to directly hire around 7,000 subcontractor workers at its steel mills, marking a significant move to address longstanding issues surrounding subcontracting structures in industrial workplaces. The steelmaker said Tuesday it has established a roadmap to directly employ subcontractor workers who support production operations at its Pohang and Gwangyang steel plants. The hiring will be carried out in phases. POSCO has traditionally operated under a subcontracting system as steel production requires 24-hour facility operation and involves significant variations in job functions. Under this structure, in-house employees and subcontractor workers have worked side by side on-site. However, the company has now decided to directly hire subcontractor workers engaged in support tasks closely related to production, representing a major shift in its labor structure. The move is also expected to resolve long-standing legal disputes over employment status that have persisted since 2011, as subcontracted workers filed lawsuits seeking recognition as POSCO employees. The company said the decision effectively brings an end to nearly 15 years of conflict. POSCO plans to conduct formal recruitment procedures for subcontractor workers who wish to join the company. The decision reflects the company’s intention to eliminate what is often referred to as the “outsourcing of risk” and fundamentally strengthen workplace safety management. A POSCO official said the direct hiring initiative would help innovate safety systems at industrial sites and strengthen future competitiveness in the steel industry based on a cooperative labor-management model. Industry sources said the decision was strongly driven by POSCO Group Chairman Jang In-hwa, who indicated the company would clarify its direction to avoid prolonged legal disputes. Representatives of subcontractor workers welcomed the decision, saying it would help ease internal conflicts caused by long-running lawsuits. They added that they would contribute to building a safer workplace as part of POSCO. The large-scale integration between POSCO and its subcontractors is being viewed as a new model for labor-management cooperation in the industrial sector, as well as an attempt to overcome challenges facing the steel industry through mutual growth. 2026-04-08 09:22:46
  • Cheap drones reshape Iran war, raising risk of North Korea copycat
    Cheap drones reshape Iran war, raising risk of North Korea copycat SEOUL, April 03 (AJP) - Low-cost drones are rapidly redefining modern warfare in the Iran conflict, exposing a growing cost imbalance that could have direct implications for the Korean Peninsula. U.S. President Donald Trump has claimed Washington achieved most of its strategic objectives in the war, likening the 32-day campaign to major 20th-century conflicts. Yet the fighting has dragged on longer than expected, far from the swift outcome suggested in the early hours of the U.S.-Israeli strikes that killed Iran’s supreme leader, Ayatollah Ali Khamenei, on Feb. 28. What has sustained Iran’s resistance is not its nuclear capability, but drones — inexpensive, scalable and increasingly effective. Military analysts now describe the conflict as a “cost war,” in which cheap weapons are used to exhaust far more expensive defense systems. Iran’s Shahed drones, costing under $50,000, are forcing the U.S. and its allies to deploy interceptor missiles priced in the millions. Patriot interceptors cost roughly $4 million per unit, while Tomahawk cruise missiles exceed $2 million, underscoring the widening economic asymmetry. The trend has already been demonstrated in Ukraine, where low-cost interceptor drones have evolved rapidly — from speeds of 100 mph to over 220 mph within a year — and are now produced at scale, with output reaching as many as 2,000 units per day. One system, the “Sting” drone, costs around $2,000, a fraction of the estimated $20,000 price tag of the attack drones it targets. This widening cost gap raises a fundamental concern: even technologically superior forces risk being overwhelmed by sustained waves of inexpensive unmanned systems. The implications are particularly acute in the Strait of Hormuz, where tensions remain high. Analysts warn that the primary threat to oil tankers is not large naval engagements, but land-based anti-ship missiles and drone strikes. Securing maritime routes — and reopening the strait — has become central to any de-escalation scenario. Washington is already adapting. According to a Wall Street Journal report, the U.S. military has deployed a low-cost attack drone dubbed “Lucas,” developed by reverse-engineering Iran’s Shahed design. Costing between $10,000 and $55,000, the system marks a shift toward cheaper, mass-deployable strike capabilities. The drones were used in attacks on Iranian military targets, including drone production facilities and air defense nodes, contributing to an 83 percent drop in Iranian drone activity in the early phase of the war, according to U.S. officials. The deployment also marked the first use of one-way attack drones by the U.S. in this conflict. Originally designed for a potential confrontation with China, the Lucas system had been slated for Indo-Pacific deployment, with about 6,000 units ordered by the U.S. Marine Corps. The Iran war accelerated its operational debut. North Korea seen as potential beneficiary The spread of low-cost drone warfare is also raising concerns about North Korea, which could benefit from the evolving battlefield dynamics. Pyongyang has deepened military cooperation with Russia during the Ukraine war, gaining exposure to modern drone tactics. Analysts warn that as U.S. strikes degrade Iran’s domestic drone production, Tehran may seek offshore partners — with North Korea viewed as a plausible candidate. “The development and production of Shahed-type long-endurance suicide drones by North Korea appear highly likely,” said Jeon Kyung-joo and Kim Hong-seok of the Korea Institute for Defense Analyses. They added that North Korean forces have improved operational capabilities through battlefield experience alongside Russian troops. A Ukrainian field commander also warned that adversaries are using ongoing conflicts as testing grounds. “North Koreans are advancing with the knowledge and experience they are acquiring here,” said Captain Oleh Shyriaiev, noting that such lessons could later be applied on the Korean Peninsula. North Korea’s drone program dates back decades but remained limited to outdated reconnaissance systems. Its recent deployment to Russia, however, is seen as a turning point, potentially enabling it to absorb production know-how and scale up its capabilities. Implications for South Korea For South Korea, the rise of low-cost drone warfare exposes a structural vulnerability. Seoul’s air defense architecture is built around high-end systems such as PAC-3, Cheongung-II, THAAD and the forthcoming L-SAM. While effective against ballistic missiles, these systems are ill-suited to counter low-flying drones. “THAAD is optimized for high-altitude ballistic missile interception and is not designed to engage low-flying drones or cruise missiles,” said Jeong Kyung-woon of the Korea Association of Military Studies. If North Korea deploys drones at scale, South Korea could face the same cost dilemma seen in the Middle East — using multimillion-dollar interceptors against threats that cost a fraction of that amount. Analysts say this underscores the urgency for Seoul to expand counter-drone capabilities, including electronic warfare, directed-energy weapons and low-cost interception systems. As the Iran conflict demonstrates, the future of warfare may be defined less by technological superiority than by cost efficiency — a shift that could reshape security dynamics far beyond the Middle East. 2026-04-03 15:19:45
  • South Korea to allow in-city tax refunds for cruise tourists starting April 6
    South Korea to allow in-city tax refunds for cruise tourists starting April 6 SEOUL, April 03 (AJP) - Cruise tourists visiting South Korea will be eligible for in-city tax refunds starting April 6, allowing them to reclaim value-added tax (VAT) and other domestic taxes on purchases made at downtown duty-free shops, the Korea Customs Service said Friday. Under South Korea’s tax refund program, foreign visitors can receive refunds on VAT and individual consumption tax included in purchases made at designated duty-free stores when goods are confirmed for export at departure. However, cruise passengers — who enter under a separate shore-excursion permit rather than standard immigration procedures — have faced difficulties using immediate or in-city refund services due to their short stay. The customs agency said it will link its vessel arrival reports and passenger manifest data to the refund system, allowing operators to verify eligibility for cruise tourists. With the number of cruise visitors expected to reach 2 million this year, the measure is expected to shorten waiting times for customs clearance and make tax refunds more convenient. Korea Customs Service Commissioner Lee Myung-koo said the change would allow cruise tourists to enjoy both shopping and tax refund benefits during their brief stay. He added that the agency will continue working with relevant authorities to further streamline refund procedures for foreign visitors. 2026-04-03 14:25:44
  • Korean Air accelerates AI-powered drone development with 2028 deployment target
    Korean Air accelerates AI-powered drone development with 2028 deployment target SEOUL, April 02 (AJP) - Korean Air is stepping up its push into unmanned aerial systems, advancing development of an artificial intelligence-powered high-speed target drone while investing $130 million in a new manufacturing facility in Busan to expand production capacity. The company said it recently completed a System Requirements Review (SRR) for its domestically developed high-speed target drone project at the Daejeon Convention Center, attended by officials from the Defense Acquisition Program Administration (DAPA), the Navy, the Air Force, and the Korea Research Institute for Defense Technology Planning and Advancement. The project, awarded by DAPA in November last year, aims to localize key components including the drone airframe, control systems, and launch equipment, replacing imported target drones currently used for training and testing. The high-speed target drone under development is designed to reach speeds of up to Mach 0.6, or about 735 kilometers per hour among the fastest in its class domestically. Korean Air plans to roll out a prototype and conduct its first flight in 2027, with deployment targeted for 2028. The drone will incorporate artificial intelligence technologies to enable swarm control and greater mission autonomy. Korean Air is also pursuing an open-architecture design that allows modular sensors and mission equipment to be installed, improving operational flexibility and cost efficiency. The company said the platform will serve as a stepping stone for South Korea’s future manned-unmanned teaming (MUM-T) systems and the Surrogate Unmanned Combat Aircraft (SUCA) program, which the military aims to deploy in the early 2030s. In parallel, Korean Air signed a memorandum of understanding with the Busan Metropolitan Government to invest 200 billion won ($130 million) in a new aerospace manufacturing facility at its Busan Tech Center in Gangseo District. The new plant, with a total floor area of about 16,000 pyeong, will produce next-generation drones, components for future commercial aircraft, and support military aircraft modification and performance upgrades. Busan officials described the investment as the largest aerospace-related project in the city, noting that demand for unmanned aerial systems is expected to grow across defense, logistics, disaster response, and other industries. "The integration of high-speed target drone design with artificial intelligence technology is a critical step for Korea’s defense industry to secure a competitive edge in the global market," a Korean Air official said. "We aim to accelerate the localization of the high-speed target drone system, a national strategic asset, to strengthen the military’s combat capabilities and enhance the global competitiveness of the K-defense industry." 2026-04-02 14:00:35
  • Flying for South Koreans is now a luxury as fuel surcharge triples
    Flying for South Koreans is now a luxury as fuel surcharge triples SEOUL, April 01 (AJP) - Flying out of South Korea is fast becoming a luxury, as airlines this month slapped on fuel surcharges up to three times higher, passing on the surge in jet fuel prices driven by Middle East conflicts. For long-haul routes to the United States and beyond, passengers now face up to 600,000 won ($398) in additional round-trip costs from fuel surcharges alone. With oil prices still climbing, further increases are expected as early as next month. Industry data released Wednesday showed April surcharges are based on the average MOPS benchmark for jet fuel in the Asia-Pacific region between Feb. 16 and March 15. Airlines price fuel into 33 tiers and reset surcharges monthly on the 16th. The average price during the period hit 326.71 cents per gallon, placing it at level 18 — a sharp jump from level 6 the previous month and the steepest monthly increase since the current system was introduced in 2016. Fuel surcharges are additional fees applied to airfares to offset rising fuel costs. Under South Korea’s distance-based system, airlines determine surcharges monthly, based on ticket issuance date rather than travel date. Korean Air raised its international fuel surcharge from 13,500 won to 99,000 won per one-way ticket in March to between 42,000 won and 303,000 won in April, depending on the route. For the longest routes — including flights from Incheon to New York, Chicago, Atlanta, Washington and Toronto — the surcharge rose to 303,000 won per one-way ticket, a 3.1-fold increase from last month. For round-trip tickets departing from South Korea, passengers could face up to 606,000 won in fuel surcharges, about 408,000 won higher than in March. Other carriers followed suit. Asiana Airlines raised its surcharge range from 14,600–78,600 won in March to 43,900–251,900 won this month. Cargo surcharges also rose sharply. Korean Air, which sets separate fuel surcharges for cargo, announced it would impose surcharges of 2,190 won per kilogram for long-haul routes, 2,060 won for mid-haul routes and 1,960 won for short-haul routes — more than four times higher than last month’s 450 to 510 won. Long-haul routes refer to International Air Transport Association Traffic Conference (TC) area 1 – the Americas, Caribbean, and Greenland – and area 2 (Europe, Africa, the Middle East, and West Asia. Mid-haul routes cover TC3 destinations such as Southeast Asia, while short-haul routes refer to cities within an average flight time of two hours from Korea, including Japan and parts of China. Further increases are expected as jet fuel prices continue to climb. Fuel surcharges for May will be determined based on the average Singapore jet fuel price between March 16 and April 15. As of March 31, the Asian jet fuel benchmark reached 522.08 cents per gallon — already exceeding the highest surcharge threshold of 470 cents, which corresponds to level 33. If the trend continues, May surcharges could reach the maximum level for the first time. In such a scenario, fuel surcharges on U.S. routes could rise from the current 300,000 won range to more than 500,000 won per one-way ticket, while short-haul routes could approach 100,000 won. Unlike liquefied natural gas (LNG), which is typically purchased through long-term contracts lasting 10 to 20 years, aviation fuel is largely sourced through mid- to short-term supply agreements with refiners, supplemented by financial hedging such as futures and options. After airlines suffered significant losses during past oil price downturns due to hedging contracts, many global carriers have reduced or discontinued long-term hedging. As a result, airlines are more directly exposed to fuel price volatility, leading to rapid adjustments in fuel surcharges. “It’s not as short-term as gas contracts, but we don’t hold as much fuel reserves as people might assume,” a Korean Air official said. “We do maintain some stock, but not enough to cover operations for months. While airlines try to hedge fuel costs and apply surcharges, they typically rely on shorter-term procurement rather than long-term reserves.” Airlines also face limits on how much of the rising fuel costs can be passed on to passengers. As fuel prices rise further, carriers may instead reduce flight operations to manage costs, industry sources said. A weaker Korean won is also contributing to rising surcharges. Fuel surcharges are calculated in U.S. dollars and converted to Korean won using the average exchange rate. The won-dollar exchange rate surpassed 1,501 won during intraday trading on Wednesday, approaching levels seen during the 2009 global financial crisis. 2026-04-01 17:05:51
  • Submarine deal looms large over Canadas high-profile trade mission to Korea
    Submarine deal looms large over Canada's high-profile trade mission to Korea SEOUL, March 31 (AJP) - Canada’s trade delegation to South Korea this week has been heavily layered with the hot-button deal — Canada’s largest-ever defense procurement to replace its aging submarines, worth an estimated $40 billion, now being weighed between Korean and European bidders. The visit by the Team Canada Trade Mission, led by International Trade Minister Maninder Sidhu, comes as Ottawa moves to diversify trade and deepen ties with trusted partners, with defense and supply chains increasingly intertwined. Canadian officials are holding meetings with major Korean shipbuilders Hanwha Ocean and HD Hyundai Heavy Industries, alongside a visit to HD Hyundai’s Global R&D Center in Seongnam, industry sources said. Additional engagements are taking place around the Canada–Korea Business Forum in Seoul and events hosted by the Federation of Korean Industries. Officially, the delegation — comprising more than 180 participants from over 110 companies across sectors including ICT, aerospace and defense, and clean energy — is focused on expanding economic cooperation and strengthening supply chain resilience. The visit runs from March 30 to April 2. But the submarine program looms large. Korean bidders Hanwha Ocean and HD Hyundai Heavy Industries are competing against Germany’s thyssenkrupp Marine Systems (TKMS) for the contract, with final submissions made earlier this month. Industry observers say the race is evolving beyond technical specifications into a broader contest over industrial partnerships, technology transfer and long-term maintenance capabilities. Hanwha Ocean has stepped up its bid by signing agreements with five Canadian firms — OSI Maritime Systems, EMCS Industries, Techsol Marine, Jastram Technologies and Curtiss-Wright — spanning navigation, power systems, maintenance and sonar. The strategy underscores a push to offer full lifecycle support, including maintenance, repair and overhaul. The timing of the visit also reflects mounting concern over global supply chain disruptions tied to the tensions in the Middle East. “Supply chain stability can never be taken for granted,” said Park Jung-sung, South Korea’s deputy trade minister, pointing to complementarities between Canada’s resource base and Korea’s manufacturing strength. Sidhu echoed the need for closer coordination among “trusted middle powers,” as Canada accelerates efforts under Prime Minister Mark Carney to reduce reliance on traditional markets and expand trade routes. “We are moving very fast to improve trade flows,” said Sara Wilshaw, Canada’s chief trade commissioner. “We need to get across that divide,” she added, referring to Canada’s long-standing dependence on the United States. Germany, meanwhile, has sought to bolster its bid with broader industrial proposals, reportedly linking the submarine deal to investments in autos and batteries, though Volkswagen has distanced itself from such arrangements. Against this backdrop, Canada’s Seoul visit is widely seen as part of a broader assessment of industrial cooperation frameworks ahead of a final contractor decision — one that will carry implications not just for defense procurement, but for the next phase of global supply chain alignment. 2026-03-31 15:31:37