Journalist

Lee Nak-yeong
  • Tanker Charter Rates Double After Iran Strikes, Raising South Korea Energy Security Fears
    Tanker Charter Rates Double After Iran Strikes, Raising South Korea Energy Security Fears U.S. and Israeli airstrikes on Iran have sent global oil prices surging, and tanker freight rates have more than doubled, raising alarms over South Korea’s energy security. With heavy reliance on Middle Eastern energy, South Korea could face a shock comparable to the 1970s oil crisis if the conflict drags on, industry officials warned. According to the industry on Tuesday, the attacks pushed up international crude prices and natural gas prices in Asia and Europe. On ICE Futures, Brent crude for May delivery settled at $77.74 a barrel, up 6.7% from the previous session. Brent briefly climbed 13% intraday to $82.37, its highest level in more than a year since January last year. On the New York Mercantile Exchange, WTI for April delivery settled at $71.23 a barrel, up 6.3%. WTI also rose as much as 12% intraday to $75.33, the highest since June last year. Shipping costs jumped alongside crude. A VLCC (very large crude carrier) rate indicator for the Middle East-to-East Asia (MEG–China) route obtained by Ajou Economy showed the Worldscale (WS) index at 410.44 as of March 2. The corresponding daily time charter equivalent (TCE) was calculated at $423,736. That was nearly double the level just before the war on Feb. 27 (WS 224.72; TCE $218,154) and more than five times January’s level (WS 96.12; TCE $78,793) in about a month. Worldscale is the standard benchmark used to settle international tanker freight. A reading below 100 is generally seen as weak and above 100 as strong. Against that yardstick, a move above WS 400 is viewed as an extreme level reflecting war risk, not just a strong market. The market is increasingly concerned that tanker freight could rise more than tenfold from prewar levels as Iran’s closure of the Strait of Hormuz has effectively become a reality. Marine insurance, a major component of shipping costs, has continued to climb sharply, the report said. Experts said the fallout for South Korea could be significant because the country depends on the Middle East — where the Strait of Hormuz is located — for about 70% of its imported crude and up to 30% of its natural gas. If higher crude prices are compounded by rising transport costs, refiners’ import costs would jump, likely feeding into higher prices for petroleum and petrochemical products and higher power-generation costs, squeezing profitability across industries. The government plans to respond by releasing stockpiled oil and securing alternative supplies. It says it holds about 208 days’ worth of crude reserves, enough to manage short-term disruptions. But a prolonged closure of the Strait of Hormuz could change the picture. As the war lengthens, releasing reserves alone may not fully ease supply anxiety. The Korea International Trade Association said using detours instead of the strait could lift shipping costs by an additional 50% to 80% from current levels. Transit time and customs procedures could also add up to five days, and in past conflicts in the region, war-risk insurance premiums have been marked up as much as sevenfold. Oh Hyun-seok, a professor of international trade at Keimyung University, said, “The government says it still has room with its stockpiles, but it is not time to be optimistic.” He added, “If the strait is blocked, South Korea needs to diversify oil imports, and in the short term it needs tax adjustments, such as easing fuel taxes, to reduce the burden on companies and consumers.” 2026-03-03 18:03:25
  • HMM Union Threatens April General Strike Over Proposed Move of Headquarters to Busan
    HMM Union Threatens April General Strike Over Proposed Move of Headquarters to Busan HMM’s labor dispute over a proposed relocation of its headquarters to Busan is escalating toward a general strike. HMM’s onshore union said Tuesday it will take legal action and launch a general strike in April if the government and major shareholders push ahead with the move without an agreement with labor. In a statement, the union said it believes the government and major shareholders could move to finalize the relocation through a sequence of steps: a March shareholders meeting, an April board meeting and a May extraordinary shareholders meeting to confirm amendments to the company’s articles of incorporation. HMM’s largest shareholders are the Korea Development Bank and the Korea Ocean Business Corp., which hold 35.42% and 35.08%, respectively. To relocate the headquarters to Busan, HMM would need to amend its articles, which currently state the headquarters is in Seoul. The union said major shareholders may appoint three outside directors seen as friendly at the March regular shareholders meeting, then pass a proposal at the April board meeting to amend the articles to change the headquarters location, and finalize it at the May extraordinary shareholders meeting. “If the articles are changed while negotiations are under way, we will pursue legal action against the directors and seek an injunction to suspend the effect of the special resolution at the shareholders meeting or to block the relocation,” the union said. The union also argued the relocation push is politically driven. It said the stated goal of strengthening shipping competitiveness has been sidelined and that the move is being rushed in connection with a political timetable in a specific region. It said shipping companies base headquarters in the Seoul metropolitan area for management efficiency, citing access to information, talent recruitment and global networks, and warned a forced move that ignores industry realities would weaken competitiveness. The union raised job-security concerns, saying the relocation would disrupt the lives of hundreds of employees and their families and, without sufficient consultation and measures, could lead to staff departures and organizational instability. The union said it will begin phased actions. Starting March 11, it plans weekly rallies during commuting hours, followed by a March 26 news conference in front of the headquarters. On April 2, it plans a rally and union assembly to approve a general strike in front of Cheong Wa Dae Sarangchae. It said it is also considering increasing rallies to twice a week or daily depending on developments. “If the government ultimately ignores workers’ right to make a living and the company’s autonomy, we will move into full-scale action including a general strike,” the union said, adding that responsibility for any management disruption and industrial losses would lie with the government. The headquarters issue is being pursued in connection with the government’s plan to develop Busan as a “maritime capital.” With labor-management tensions rising, debate over whether, when and how the relocation would proceed is expected to continue.* This article has been translated by AI. 2026-03-03 14:54:21
  • VLCC Tanker Charter Rates Top $400,000 a Day After Iran War, Data Show
    VLCC Tanker Charter Rates Top $400,000 a Day After Iran War, Data Show U.S. and Israeli strikes on Iran have pushed daily charter rates for very large crude carriers above $400,000, as fears grow that Iran could block shipping through the Strait of Hormuz. Rates that had been in the low $200,000s surged to nearly double in a short period as Iran escalated its threats. Some analysts say rates could climb toward $800,000 a day if a blockade takes hold. According to a Middle East-to-East Asia (MEG-China) VLCC route indicator obtained by Ajunews, the Worldscale (WS) tanker index stood at 410.44 as of March 2. That implies a daily time-charter equivalent, or TCE, of $423,736. That is more than double the WS 224.72 and TCE $218,154 recorded on Feb. 27, just before the outbreak of war between the U.S.-Israel side and Iran, the data showed. In January, the WS index was 96.12 and the TCE was $78,793, meaning rates have risen more than fivefold in about a month. Worldscale is a standard benchmark used to settle international tanker freight, with 100 typically treated as the baseline. A reading above 400 is widely seen as an extreme level reflecting war risk rather than ordinary market strength. Iran said through the semiofficial ISNA news agency that “the Strait of Hormuz has been closed,” warning that “any vessel that attempts to pass will be burned by the Revolutionary Guards and the regular navy.” It added that it would ensure “not a single drop of oil” leaves. Market participants fear tanker freight could jump more than tenfold from prewar levels if the Hormuz route is effectively shut, as marine insurance — a major component of shipping costs — continues to rise sharply. About 20% of the world’s seaborne crude oil passes through the Strait of Hormuz, making it a strategic chokepoint. Some in the market say that if tensions persist, the WS index could approach 800 and daily charter rates could near $800,000. The surge in tanker costs is also adding upward pressure on energy prices in South Korea, which relies heavily on Middle Eastern crude. Higher Middle East-to-East Asia transport costs are likely to raise refiners’ import costs, and, together with rising global oil prices, could lift domestic prices for petroleum and petrochemical products and consumer inflation. A shipping industry official said the strait has not been “physically completely blocked,” but the risk of attack means shipping companies “effectively view it as a blockade.” The official added that WS 400 is “an extreme level beyond market common sense,” and that if war-related uncertainty continues, the shock could spread beyond shipowners to global logistics overall. 2026-03-03 12:03:22
  • British Ambassador tours Hanwha Oceans shipyard in Geoje
    British Ambassador tours Hanwha Ocean's shipyard in Geoje SEOUL, February 27 (AJP) - British Ambassador to Seoul Colin Crooks visited Hanwha Ocean’s shipyard in Geoje on Friday. According to the shipbuilder, Crooks inspected a diesel-electric Jang Bogo-class submarine currently under construction during a tour of the shipyard. Thursday's visit was made to review the status of cooperation, as Hanwha Ocean is participating in the Canadian Patrol Submarine Project (CPSP) through a strategic partnership with British defense firm Babcock. Hanwha Ocean has proposed the Jangbogo-III Batch-II submarine for the project, which is equipped with British-made torpedo launch tubes and an advanced weapons control system. Hanwha Ocean said its partnership with Babcock could help it better understand and meet the project's requirements, given that the British firm currently provides maintenance, repair, and operations services as well as naval support for the Royal Canadian Navy. Both companies also believe the partnership could boost their competitiveness by supporting Canada's push for localization, enhancing industrial capability, and ensuring the long-term reliability of submarine maintenance. Crooks said the partnership would lay an "important foundation" for expanding cooperation across defense-related sectors in the years to come. 2026-02-27 16:33:11
  • UK Ambassador Colin Crooks Visits Hanwha Ocean Shipyard in Geoje
    UK Ambassador Colin Crooks Visits Hanwha Ocean Shipyard in Geoje 콜린 크룩스(Colin Crooks) 주한 영국 대사가 27일 오전 한화오션 거제사업장을 방문해 장보고-III 배치-II 잠수함 건조 현장을 둘러보고 한·영 협력 현황을 점검했다. 한화오션은 이번 방문이 자사와 영국 밥콕이 전략적 파트너십을 바탕으로 캐나다 초계 잠수함 프로젝트(CPSP)에 함께 참여하는 가운데, 협력 진행 상황을 점검하기 위해 마련됐다고 밝혔다. 크룩스 대사는 잠수함 블록 제작 현장과 자동화 설비, 스마트 야드 기반 생산 시스템을 살펴봤다. 특히 건조 중인 장보고-III 배치-II 잠수함 현장을 둘러보며 관심을 보였다고 회사는 전했다. 한화오션이 캐나다 잠수함 사업에 제안한 장보고-III 배치-II에는 영국산 어뢰발사관과 무장 제어 체계, 잠수함 내 CO2 제거기 등을 탑재할 계획이다. 회사는 이번 방문에서 관련 진행 상황과 협조 사항을 공유하는 자리도 마련됐다고 했다. 한화오션은 양사 협력 모델이 캐나다의 요구 조건을 이해하고 반영하는 데 긍정적으로 작용할 것으로 기대하고 있다. 밥콕 캐나다는 2023년 한화오션과 기술협력협약(TCA)을 체결했으며, 현재 캐나다 해군의 유지·보수·운영(MRO)과 해군 지원 서비스를 맡고 있다. 한화오션은 한·영 협력 체계가 캐나다 정부가 중시하는 현지화를 통한 산업 기반 강화와 잠수함 장기 운용의 신뢰성 확보 측면에서도 경쟁력을 갖출 수 있을 것으로 보고 있다고 밝혔다. 크룩스 대사는 "한화오션과 밥콕 간 공동 수행 협약은 한국과 영국 양국 정부가 추진하고 있는 국방공동수출 업무협약을 구체화한 대표적인 사례"라며 "양국 기업 간 전략적 파트너십이 향후 다양한 방산 분야에서의 협력 확대를 이끄는 중요한 기반이 될 것"이라고 말했다. 정승균 한화오션 특수선해외사업단 부사장은 "한화오션과 밥콕사 양국 기업의 기술력과 해군 사업 수행 경험이 결합된 협력 구조는 캐나다 잠수함 사업에 있어 실질적이고 지속 가능한 해법이 될 것"이라며 "CPSP 사업을 통해 캐나다 해군 전력 강화는 물론 현지 산업 생태계 발전에도 기여할 수 있도록 최선을 다하겠다"고 전했다. 2026-02-27 15:21:21
  • POSCO Picks Eight Core Steel Products to Target Future Markets
    POSCO Picks Eight Core Steel Products to Target Future Markets POSCO said Thursday it has selected eight core strategic products aimed at securing a lead in future steel markets and has set up a “One Team” structure to strengthen its fundamental competitiveness. In early February, the company created new project teams for stainless steel for next-generation growth markets, PosMAC for renewable energy, high-manganese steel, and an electric-arc-furnace premium steel initiative. Those join four teams launched in December — energy plate, electrical steel sheet for power applications, Giga Steel and HyperNO — completing its “eight core strategic product technology development project teams,” which are now fully operating. POSCO said it has been building the project-team system since late last year to rebuild steel competitiveness and secure future growth engines, integrating management from technology development through production and sales. The eight teams are placed directly under the Pohang and Gwangyang steelworks so research results can be applied immediately on the production floor, the company said, as it seeks to expand high value-added steel products and capture future market leadership. POSCO said it will differentiate product groups between the two plants based on their R&D and production strengths. Pohang will focus on improving performance and developing energy steel used in oil and gas, power generation and renewable energy, in line with rising global electricity demand, aiming to become a leading producer of energy steel. Gwangyang, where automotive steel sheet is a mainstay, will strengthen competitiveness as a mobility-focused plant centered on new growth steel to secure leadership in autonomous driving and future mobility and to meet rising demand for low-carbon products. POSCO Group Chairman Jang In-hwa said in his New Year’s address that the company must “complete the portfolio of eight core strategic products, which are key to future industries, and strengthen market leadership.” POSCO also said it plans to take the lead in improving the domestic steel ecosystem in step with the government’s “steel industry advancement plan.” A company official said that amid an increasingly difficult business environment — including a flood of low-priced imports and global tariff barriers — POSCO will break down departmental boundaries to expand its portfolio around the eight products and solidify leadership in future industrial markets.* This article has been translated by AI. 2026-02-27 10:12:21
  • Korea’s Petrochemical Industry Welcomes 2 Trillion Won Support, Seeks Tailored Aid by Complex
    Korea’s Petrochemical Industry Welcomes 2 Trillion Won Support, Seeks Tailored Aid by Complex The petrochemical industry welcomed the government’s approval of its first sector restructuring plan and a 2 trillion won package of financial and tax support, saying it could ease pressure after a prolonged downturn and China-driven oversupply that has sharply hurt profitability. Industry officials said Wednesday the package is a positive step, but its scope and effectiveness will depend on how it is carried out. They pointed in particular to the inclusion of financing, calling it the biggest change. Companies have pursued self-help measures and cost cuts as conditions worsened, but new government funding had been virtually absent. A petrochemical industry official said it was encouraging that relevant ministries worked together on a comprehensive package, adding that the support could speed up facility integration that had been delayed by funding burdens. The official said it will be important whether tailored support continues during the restructuring process based on each company’s circumstances. Cho Nam-su, CEO of HD Hyundai Chemical, who attended a meeting hosted by the Ministry of Trade, Industry and Energy at KOTRA in Seoul, said, “I think the government has done its best,” and added, “Based on this support package, we will do our utmost to become a model case that does not disappoint the government.” The industry also expects the approved consolidation of HD Hyundai and Lotte Chemical’s naphtha cracking center, or NCC, facilities in the Daesan complex to accelerate restructuring talks in Yeosu and Ulsan. Companies see the Daesan project’s conditions and support level as a potential benchmark for future negotiations. Yeosu and Ulsan have not yet submitted final restructuring plans to the ministry. With more companies clustered there than in Daesan, coordinating interests over measures such as NCC output cuts has been difficult. In Yeosu, options including shutting down the third plant of Yeocheon NCC, a joint venture between Hanwha Solutions and DL Chemical, and a shutdown at Lotte Chemical have been reviewed, but no conclusion has been reached. LG Chem and GS Caltex have agreed only to close aging facilities, while clashing over issues including the equity structure of their joint venture. In Ulsan, SK Geo Centric, Daehan Oil & Chemical and S-OIL are discussing a restructuring plan, but have not narrowed differences over whether to include S-OIL’s Shaheen Project among targets for cuts. By contrast, the industry voiced disappointment over electricity-cost relief. The government proposed using a “distributed special zone” system to apply power rates 4% to 5% cheaper than those of Korea Electric Power Corp., but critics said generation capacity and the scope of application are limited. The Korea Chemical Industry Association said it “sincerely welcomes and appreciates,” on behalf of the industry, the swift approval of the first petrochemical restructuring project with active cooperation from government ministries and related agencies. But it said measures to ease the burden of industrial electricity rates were not sufficiently reflected in the Daesan package. It added that, from the standpoint of industrial competitiveness, a broader review of the overall industrial electricity-rate system is needed.* This article has been translated by AI. 2026-02-25 17:06:28
  • KR chief Lee Young-seok touts 2025 revenue milestone, targets record 2026 results
    KR chief Lee Young-seok touts 2025 revenue milestone, targets record 2026 results "Even as global environmental rules tighten and the maritime industry undergoes digital transformation, the Korean Register will continue to grow based on technological competitiveness and customer trust," KR Chairman Lee Young-seok said at a KR press briefing on Feb. 24 at the Korea Chamber of Commerce and Industry. Lee said external uncertainty is expected to persist this year and stressed that KR will push technological innovation to overcome challenges. "Through field-focused management and open communication, we will work closely with the government and related maritime organizations," he said. "We will continue to expand our capabilities in digital and eco-friendly technologies to contribute to the sustainable development of the maritime industry." KR set targets for this year of 213 billion won in revenue and 95 million tons in registered fleet. It also outlined a mid- to long-term plan to raise revenue to as much as 270 billion won and expand its registered fleet to 120 million tons by 2030. To reach those goals, KR said it will build strategic footholds overseas and step up focused sales efforts. It named China as its top priority market and said it will seek to increase the volume of existing ships it attracts from major shipping companies to create a virtuous cycle that brings more vessels to KR. It also said it aims to find new markets, including Dubai, and raise the share of purely foreign-flagged ships from about 30% to 40% over the mid to long term. KR also approved the appointment of three new full-time executives and reassigned other executive roles. Kim Seong-ju, head of the China regional headquarters; Yeon Gyu-jin, head of the drawing approval office; and Choi Cheol, head of the international cooperation office, were appointed as full-time executives, overseeing the inspection, technical and business divisions, respectively. Choi Won-jun, a vice president who had overseen the management division, was reassigned as senior vice president in charge of the strategy division. Yoon Seong-ho, the senior vice president who had led the strategy division, was reassigned as vice president overseeing the management division. Earlier, KR held its 64th regular general meeting and approved a business report and its 2025 financial statements. KR said it expanded inspection volume for newbuild ships through active sales efforts. As a result, revenue last year totaled 206 billion won and its registered fleet grew to 90.35 million tons. Of newly registered existing ships, 71% were owned by overseas shipowners, KR said, reflecting expanded technological competitiveness and international trust. 2026-02-24 16:46:29
  • SM Line Named Top Partner by China’s Ningbo-Zhoushan and Shanghai Ports
    SM Line Named Top Partner by China’s Ningbo-Zhoushan and Shanghai Ports SM Line, the shipping affiliate of South Korea’s SM Group, has been named an outstanding partner by major Chinese port authorities, a recognition the company said reflects confidence in its growth potential. The company said Tuesday it was selected as a carrier with “sustained growth potential” at the Ningbo-Zhoushan Port annual port-transport exchange meeting recently held in Shaoxing, Zhejiang province. Ningbo-Zhoushan Port is among the world’s top three ports by container volume. It handled 39.31 million TEUs in 2024, trailing Shanghai (51.51 million TEUs) and Singapore (41.12 million TEUs). SM Line said its volume at Ningbo-Zhoushan topped 200,000 TEUs last year. SM Line first called at Ningbo in 2017 after launching its U.S. West Coast service (CPX), and added a Pacific Northwest service (PNS) the following year, expanding service in the region. The company said it was recognized alongside global carriers including Taiwan’s Yang Ming Marine Transport, T.S. Lines, China’s Sinotrans and SITC, and Singapore-based Sea Lead. Separately, Shanghai Port selected SM Line as a “carrier with promising prospects.” The award is tied to Shanghai’s 15th five-year development plan, which aims to upgrade logistics links among Shanghai Port, the Yangtze River and nearby rail networks. SM Line said the designation reflects its status as a key partner expected to share and help carry out the port’s long-term strategy. SM Line said it plans to step up efforts this year to win export cargo from China bound for the Americas and Asia, while working closely with local ports to provide stable capacity and respond flexibly to shifts in global trade and the shipping market. “It is meaningful and gratifying that major Chinese ports have recognized our future value and potential,” SM Line CEO Kang Ho-jun said. “As a bridge linking Asia and the Americas and competing with global carriers, we will devote ourselves to accelerating growth in the China market and strengthening trust.”* This article has been translated by AI. 2026-02-24 15:13:00
  • S-Oil Promotes Key Executives Ahead of Shaheen Project Startup
    S-Oil Promotes Key Executives Ahead of Shaheen Project Startup S-Oil has reshuffled and promoted executives ahead of the planned January commercial startup of its Shaheen Project, moving key leaders to the forefront to strengthen launch preparations and stabilize early operations. The company on Monday announced promotions for three vice presidents, eight senior managing directors and four managing directors. Many of those promoted lead organizations responsible for Shaheen Project operations. Among the vice president promotions was Lee Jeong-ik, head of the Shaheen Project Headquarters. Promoted to senior managing director were Lee Uk-yong, who leads Shaheen Project operations, and Heo Seong-hun, head of the project technology division. The moves bolster both overall management and the operations and technology lines as the company focuses on stabilizing the project’s operating organization. Also promoted to vice president were Jeong Yeong-gwang, head of the chemical production headquarters, and Lee Geon-myeong, head of the domestic sales headquarters. Promoted to senior managing director were Lee Gyeong-mun, head of the new business division; Lee Jeong-il, head of the central region headquarters; Kim Seung-hu, head of the supply and demand division; Shin Jong-cheol, head of the lubricants sales division; Seo Gyeong-seop, head of the general affairs division; and Shin Bong-su, head of the RFCC1 plant. Promoted to managing director were Ahn Jeong-woo, head of the management planning division; Lee Hyeon-min, head of the southern region headquarters; Yang Hyeon-jun, head of the logistics division; and Kim Hyeon-woo, head of the domestic sales division. The Shaheen Project is a large-scale development in the Onsan National Industrial Complex, with a total investment of 9.258 trillion won on about 880,000 square meters. Construction began in March 2023, with mechanical completion targeted for late June this year. After test runs, the project is scheduled to begin commercial operations in January next year.* This article has been translated by AI. 2026-02-24 14:12:19