Top security adviser attends NATO summit on behalf of Lee SEOUL, June 26 (AJP) - National Security Adviser Wi Sung-lac met with a slew of heads of state and government officials on the sidelines of the NATO summit which kicked off in the Hague, the Netherlands early this week. Wi, who is attending the two-day summit on behalf of South Korean President Lee Jae-myung, held a series of talks with key figures and participants including NATO Secretary-General Mark Rutte and U.S. Secretary of State Mark Rubio. According to the presidential office here on Thursday, Wi delivered a personal letter from Lee during a meeting with Rutte, seeking understanding for the president's absence due to a backlog of domestic affairs since taking office early this month. But Wi pledged Seoul's commitment to addressing "complex global challenges" through cooperation with the European political and military alliance, "which shares the values of democracy and peace." Wi also discussed "various pending issues" with Rubio and agreed to hold a summit between the leaders of the two allies "as early as possible." Meanwhile, NATO allies agreed to increase defense spending to 5 percent of their GDP by 2035. Of the expenditures, at least 3.5 percent will be allocated "to resource core defense requirements," while the remainder will cover related spending including critical infrastructure, networks, and civil preparedness. According to a joint declaration released the previous day, the participants at the gathering agreed to boost defense spending, as they feed the need to be "united in the face of profound security threats and challenges, in particular the long-term threat posed by Russia to Euro-Atlantic security and the persistent threat of terrorism." With the latest agreement among NATO allies, Washington is even more likely to seek renegotiation of its defense cost-sharing deal with South Korea to hike the upkeep of maintaining some 28,500 U.S. troops here. 2025-06-26 16:21:25

Seoul logistics pipeline shrinks amid cautious market sentiment SEOUL, June 26 (AJP) - South Korea’s logistics market is pulling back. After years of rapid expansion, the Seoul metropolitan area is now seeing a marked slowdown in new warehouse development, as rising costs, limited access to project financing, and a shifting demand landscape prompt developers to reassess their strategies. According to the 2025 Korea Logistics Market Report from Cushman & Wakefield Korea, about 3.92 million square meters of logistics space were completed in the capital region last year, a 33 percent drop from 2023. The number of new projects also fell sharply, from 95 to 51. Even amid the broader slowdown, one trend stood out: a continued shift toward larger-scale facilities. Warehouses over 66,000 square meters made up a growing share of the new supply. These larger properties are favored by major e-commerce and third-party logistics, or 3PL, firms, which now dominate the tenant base. Nearly 40 percent of new approvals in 2024 were in this category, pointing to sustained demand for scaled-up, high-efficiency centers. However, a widening gap between approvals and construction suggests the pipeline is far from secure. As of late 2024, 85 percent of logistics projects that had received permits were still unbuilt. More than 110 of those had remained idle for over two years. The report attributes this stall to a combination of rising development costs and a tightening project financing environment, which have made it increasingly difficult to move forward with new construction. As a result, the market is entering a prolonged supply correction. Region by region, the picture varies. The eastern zone, traditionally anchored by Icheon, saw the steepest drop in new completions, down nearly 70 percent from the previous year. With land growing scarce in core areas like Seoicheon, developers are shifting outward to places such as Yeoju and southern Icheon. The western region, which includes Incheon, Siheung, and Gimpo, was the only area where supply increased, delivering close to 2 million square meters in 2024. Still, with only six new projects approved there last year, future deliveries are expected to decline. In the south, activity remained stable. More than 1.19 million square meters of new space were completed in Anseong and Pyeongtaek, with most of it leased before completion. The central region, including Anyang, saw no new deliveries for the second year in a row. The north added only a modest amount of new space. Speculative development has slowed significantly. Developers are increasingly turning to build-to-suit strategies, especially in the cold storage segment. Many cold-chain facilities built during the pandemic remain vacant, often due to outdated or mismatched designs. The report points to issues such as inefficient dock access, narrow ramps, and freezer-heavy configurations that fail to meet current demand. The average vacancy rate for cold storage centers now stands at nearly 40 percent, reflecting a persistent disconnect between facility design and tenant needs. By contrast, ambient logistics centers recorded a vacancy rate of about 17 percent. These facilities have fared better, especially when built with large floorplates and located near highway interchanges. Properties with strong specifications and proximity to transportation corridors are seeing faster leasing and stronger renewal momentum. With fewer completions expected in 2025, high-quality existing properties are becoming more attractive. "Large-scale, high-spec properties with strong access to transportation networks will see stronger leasing momentum, especially in undersupplied areas like western Gyeonggi," the report says. Cushman & Wakefield characterizes 2025 as a structural turning point for the market. While new supply is set to decline further, demand is becoming more selective, pushing landlords and developers to focus on quality, functionality, and long-term viability. After years of chasing volume, the market is now resetting. For both investors and operators, success this year will depend less on how much space is delivered and more on how well that space performs. 2025-06-26 15:56:02

Shinsegae launches flagship Chicor beauty store in Seoul's Gangnam SEOUL, June 26 (AJP) - Shinsegae Department Store debuted its revamped beauty concept store Chicor in the heart of Seoul’s Gangnam district on Thursday, seeking to redefine luxury beauty shopping through high-tech personalization and curated brand offerings. The new flagship is the first in what the company says will be a wider expansion of the Chicor brand, positioning it as a specialized destination for both global luxury and trending Korean beauty products. Touting what Shinsegae describes as the first "hyper-personalized" services in South Korea’s beauty retail sector, the store features an artificial intelligence-powered analysis system that examines customers’ scalp conditions to formulate customized shampoos and serums. “Chicor Gangnam is not just another beauty store — it’s a showcase of what the future of personalized cosmetics looks like,” the company said in a statement. The store also places a spotlight on K-beauty, with a dedicated Makeup Zone that highlights rising Korean brands such as Tirtir, Laka, Dear Dahlia, Hince, and Rom&nd. Each label is housed in its own shop-in-shop setup, creating a boutique-like experience within the larger retail space. The location also features roughly 20 global brands, including Bath & Body Works, NARS, and Hourglass, catering to a wide spectrum of beauty preferences. 2025-06-26 15:50:59

Hyundai, Kia exports to US plunge as Trump tariffs take toll SEOUL, June 26 (AJP) - Exports of Hyundai Motor and Kia vehicles to the United States plunged 21.5 percent in May compared with the same month a year ago, as the Trump administration’s 25 percent tariff on imported automobiles begins to significantly alter trade flows. The two South Korean automakers, part of the Hyundai Motor Group, shipped 77,892 vehicles to the U.S. last month, down from 99,172 in May 2024, according to figures released Thursday by the Korea Automobile & Mobility Association. The steep drop underscores the mounting pressure on automakers operating in export-dependent economies as Washington intensifies its protectionist stance on trade. “High tariffs will reduce U.S. auto exports and hurt automaker profitability as companies shift to local production while being unable to fully pass increased costs to consumers in a weakened market,” said Kim Kyoung-you, a senior research fellow at the Korea Institute for Industrial Economics & Trade, in a recent report. The tariffs, first proposed by Trump in April and swiftly enacted, are already driving strategic pivots. Dealers in the United States, anticipating the added costs, prioritized clearing existing inventories ahead of the new levy. According to Cox Automotive, Hyundai and Kia dealers held roughly 94 days and 62 days of inventory, respectively, as of early April. Those stockpiles are now largely depleted, setting the stage for tighter margins in the second half of the year. To mitigate the blow, Hyundai Motor Group has accelerated production at its new plant in Georgia, which began operations in March. But analysts warn that expanded U.S. production will not fully offset the losses from declining exports in the near term. The fallout from the U.S. tariffs is also reverberating through South Korea’s domestic auto sector. National vehicle production fell 3.7 percent year-over-year in May to 358,969 units. Hyundai’s output declined 6.0 percent, while Kia’s dropped 3.8 percent, data from the Korea Automobile & Manufacturers Association shows. 2025-06-26 15:45:44

INTERVIEW: Korean startups race to bring lab-grown meat to market SEOUL, June 26 (AJP) - Donning a white lab coat and sterile shoe covers, Dominic Jeong, CEO of South Korean food-tech startup Simple Planet, leads the way through a sleek laboratory buzzing with quiet precision. He opens a chilled cabinet and carefully lifts out petri dishes filled with ivory-white clusters. “These are cultivated animal cells — cow fat and chicken muscle tissue,” Jeong told AJP. “We transform them into protein-rich powders and pastes.” The company’s "cell-based paste" has no flavor, Jeong explains, and it’s not available for public tasting just yet. That step will require prior approval from South Korea’s Ministry of Food and Drug Safety. Simple Planet is part of a growing wave of South Korean startups diving into the emerging world of lab-grown meat, or cultivated meat, as a solution to looming global food insecurity. With the United Nations predicting the global population could reach 10 billion by 2050, the demand for protein is set to nearly double — putting massive strain on existing food systems. While plant-based meats have long catered to vegetarians and the environmentally conscious, cultivated meat targets a broader audience: meat-eaters looking for a more sustainable alternative without sacrificing the real thing. Cultivated meat is created by growing animal cells — typically in a nutrient-rich serum — into muscle and fat tissues. The final product, scientists say, is biologically identical to conventional meat. The same core technology used in regenerative medicine for artificial organs is now being used to grow steaks and chicken breasts. “The only difference,” says Kwon Yeong-mun, director at meat cultivator TissenBioFarm, “is that one’s meant to heal the body, the other is meant to feed it.” But here’s the catch: most lab-grown meat on the market still isn’t 100 percent animal-based. Cultured cells often make up just 20 percent of the final product. The rest? Plant-based fillers and binders. “To make a lab-grown chicken steak, we start with a vegetable protein patty, then add cultured cells and food coloring to mimic real chicken,” Jeong explains. A Climate-Smart Solution Why go through all this effort? The environmental benefits are hard to ignore. Compared to traditional meat production, cultivated meat slashes greenhouse gas emissions, water use, and land consumption. Livestock farming is responsible for roughly 12 percent of global greenhouse gas emissions, and the push to curb that impact is intensifying as climate change accelerates. Jeong says his team’s production tests have already shown promising results. Growing 1,000 kilograms of cultured ingredients using a 50-liter bioreactor saved more than 15,000 kilograms of carbon emissions and over 2,200 cubic meters of water. There are other advantages, too. Lab-grown meat eliminates the need for animal slaughter, sidesteps the risk of food-borne diseases, and avoids the ethical issues tied to factory farming. Despite the buzz, cultivated meat still faces a steep climb to reach supermarket shelves. Back in 2013, the world’s first lab-grown burger cost $325,000. But South Korean researchers are closing in on cheaper alternatives. Professor Joo Seon-tea, who leads the animal science division at Gyeongsang National University, says his startup Orange CAU is nearing commercialization. Their hybrid approach blends cultured muscle tissue with plant protein, which Joo says has passed taste tests and significantly cut production costs. “We estimate our cultured meat will cost about one-third the price of conventional meat to produce,” Joo says. “Retail prices could land at roughly half.” TissenBioFarm, meanwhile, says its whole-cut cultivated meat will sell for about 30,000 Korean won (roughly $22) per kilogram — a bargain compared to USDA Prime ribeye, which can run up to $89 per kilogram. Their secret? A microfiber scaffolding system that mimics the texture and marbling of traditional meat. Kwon explains that the challenge now is scaling up production using large bioreactors to fully infuse those fibers with animal cells and achieve that unmistakable meaty flavor. Still, most of these products remain in R&D limbo. Regulatory approval is the next major hurdle. Last month, a South Korean research team made headlines by replicating meat marbling using self-healing scaffolding — a potential game-changer for appearance and structure. But it’s not ready for consumer forks just yet. “We need Good Manufacturing Practice certification and regulatory approval before anyone can eat it,” says Park Je-young, a professor of bioengineering at Sogang University. Globally, only a handful of countries — Singapore, the United States, Israel, and recently Australia — have greenlit lab-grown meat for human consumption. South Korea is getting closer. The country amended its regulatory framework in 2023 and issued procedural guidelines in early 2024. Still, none of the companies have received final approval to sell. “We cannot disclose how many have applied or when approval might come,” says Sung Jun-hyun, a senior researcher at the National Institute of Food and Drug Safety Evaluation. “But as of now, no product has been cleared for market.” For now, South Korea’s cultivated meat revolution remains confined to labs. But innovators like Jeong are thinking long-term. “We’re not just building steak replacements,” he says. “Our goal is to deliver high-protein animal products to places where meat is scarce or unaffordable. We want to make cultured bulgogi a reality.” 2025-06-26 15:28:29

Small business owners overwhelmed by rising costs and wage pressure SEOUL, June 26 (AJP) - South Korea's small business owners are feeling the weight of growing economic pressure, with rising food prices and labor costs making it harder than ever to stay afloat. Many are now calling on the government to freeze or even lower the minimum wage. According to a survey released Thursday by the Korea Economic Research Institute (KERI), 63.4 percent of self-employed respondents said their business conditions have worsened compared to last year. Only 6.8 percent reported any improvement, while the rest said things were roughly the same. The minimum wage for 2025 is 10,030 won ($7.4) per hour, a 1.7 percent increase from 2024. That translates to a monthly income of 2,096,270 won, assuming a 40-hour workweek with paid weekly leave. But for half of the business owners surveyed, even that level is already too much to bear. The burden is especially heavy in the hospitality sector. In the lodging and restaurant industry, 64.2 percent said the minimum wage poses a serious strain. Similar concerns were echoed in retail at 51.9 percent, education services at 50.0 percent, and manufacturing at 48.4 percent. Asked about what should happen to the minimum wage next year, 44.2 percent said it should be frozen. Another 15 percent favored a reduction. About 21.2 percent said a modest increase of one to three percent would be manageable, while only 10.2 percent supported a hike of more than three percent. But wage costs are only part of the problem. Food and raw material prices have surged in recent years, eating into already tight margins. Statistics Korea reported that the consumer price index in May rose 1.9 percent from a year earlier to 116.27. Food prices increased much more sharply, with the food-only index reaching 125.15 and dining-out costs rising to 124.56. Both figures are around 25 percent higher than in 2020. Basic ingredients have not been spared. A 20-kilogram bag of rice now costs 52,520 won, up eight percent over the past five years. Spinach prices jumped 29.2 percent in the same period, while potatoes went up 15.3 percent. Everyday meals have become noticeably more expensive. In May, a single roll of gimbap in Seoul averaged 3,623 won. That is a 45.8 percent increase from 2,485 won five years ago. Prices over 3,500 won are now common, and some franchise shops charge more than 4,000 won. Naengmyeon, once priced around 9,000 won, now averages 12,269 won. Bibimbap rose to 11,462 won, up nearly 32 percent. Even pork belly has jumped past the 20,000 won mark per serving. For many business owners, it is no longer just a tough season. It is a breaking point. Nearly 29 percent said they are already operating at their limit. A staggering 30.4 percent reported earning less than the legal monthly minimum wage. And when it comes to hiring, 65 percent said they simply cannot afford to take on new workers. Lee Sang-ho, head of KERI's economic and industrial division, called for caution in the upcoming minimum wage decision. "To ease the burden on small business operators and restore momentum in the economy, this year's minimum wage decision should carefully consider employers' payment capacity and the broader employment situation," he said. 2025-06-26 15:05:41

Railway services connecting Pyongyang and Moscow resume after pandemic halt SEOUL, June 26 (AJP) - Railway services linking Pyongyang and Moscow have resumed after being halted for five years amid the coronavirus pandemic, according to Russian state media. The Kremlin's state-run news agency TASS reported that a passenger train that departed the North Korean capital last week arrived at Moscow's Yaroslavsky railway station on Wednesday after a journey of about eight days. But the first train that departed from Pyongyang on June 17 had "no passengers" with only the conductors on board, TASS reported, quoting a North Korean railway official as saying. Expressing his "thrill" at this sign of "friendly relations" between the two countries, the official further explained, "The new carriages soon to operate between the capitals are more advanced than previous models, featuring modern facilities" including "eco-friendly toilet systems." The resumption of the services, suspended in February 2020 due to the pandemic, came about a year after the two countries signed a military pact during President Vladimir Putin's visit to Pyongyang for a summit with North Korean leader Kim Jong-un in June last year. The railway route spans more than 10,000 kilometers, making it one of the longest in the world and the only way to directly travel between the two key cities without transfers. Several months earlier, another railway route connecting North Korea's Tumen River to Khasan in Russia resumed operations amid ever-growing ties between the two countries. With these resumptions of railway services, speculation has been growing that Kim could visit Russia sometime later this year, as he traveled by train on his two previous visits, although he does not appear to have inherited his father's morbid fear of flying. 2025-06-26 14:48:56

Starbucks brings back plastic straws in South Korea SEOUL, June 26 (AJP) - Starbucks has reintroduced plastic straws to its stores in South Korea for the first time in seven years — though this time, they come with a green upgrade. The coffee chain has begun piloting new straws made from sugarcane-based bioplastics at approximately 200 stores nationwide. Starbucks was among the first major coffee chains in South Korea to eliminate conventional plastic straws in 2018, replacing them with paper versions as part of a sweeping push toward sustainability. Yet the paper alternative has remained controversial, with customers citing complaints ranging from sogginess to altered drink flavors. The new straws are available alongside existing paper options and are being offered for use with standard-sized beverages. The latest move comes as South Korea’s plastic policy enters a more relaxed phase. In 2019, under then-President Moon Jae-in, the Ministry of Environment announced a national roadmap to phase out single-use plastics, including a ban on plastic straws in cafes and restaurants by 2022. However, in late 2022, the ministry suspended penalties for non-compliance, and by November 2023, it officially shifted from mandatory enforcement to a “voluntary participation” model — effectively rolling back the ban. Many coffee chains responded by quietly reintroducing plastic straws. Starbucks, until now, had remained one of the few holdouts. Now, under pressure from both customers and a more permissive regulatory environment, the company is cautiously testing a return to plastic — albeit in a form it hopes will be both sustainable and palatable. “We are committed to finding solutions that meet our environmental goals while addressing the real-life needs of our customers,” a Starbucks Korea spokesperson said. 2025-06-26 13:51:11

North Korean defectors recount plight at UN human rights event in Seoul SEOUL, June 26 (AJP) - North Korean defectors recounted their harrowing journeys of escape and the plights they endured at an event in Seoul this week, informing international experts on human rights violations in the isolated country. Hosted by the UN Human Rights Office in Seoul, the two-day event which kicked off on Thursday was part of the drafting process for a ten-year assessment of the human rights situation in North Korea. The event brought together human rights experts, activists, journalists, and officials from related international organizations. On the first day of the event, four defectors shared their personal stories of restrictions on fundamental freedoms, discrimination, limits on freedom of expression, and social control in North Korea. “This ten-year assessment report was requested by the UN Human Rights Council in Geneva in April 2024 and will be presented by the High Commissioner later this year,” said James Heenan, head of the UN Human Rights Office in Seoul. “The 2014 report covered the entire history of North Korea from the late 1940s to 2014, whereas this report will focus only on the past ten years,” Heenan explained. Heenan added that the report is based primarily on firsthand information, with over 300 interviews conducted for the report. “Some of these individuals have agreed to speak publicly today, and their testimonies will be taken into account as we finalize the report,” he said. Maeng Hyo-sim, one of the speakers who defected from North Korea in 2018, said many people in the country remain unaware of the severe human rights abuses they live under. “Most North Koreans still don’t know how people live in other countries because access to the internet, foreign books, and videos is completely blocked,” she said. She recalled being shocked when she discovered the truth about the regime. “Kim Jong-un is deified as a leader who works selflessly for the people, and for 17 years I believed that. But when I learned the reality, I was devastated,” she said. “Even now, many in North Korea don’t understand what freedom or human rights mean,” she added. “But I believe that if more people pay attention, it can help bring about change.” 2025-06-26 12:07:42

President Lee calls for 'fair growth' and capital market reform in first parliamentary address SEOUL, June 26 (AJP) - President Lee Jae-myung called Wednesday on lawmakers to back his push to revive the economy and support struggling households, calling the effort "the most urgent task we must address today." Delivering his first policy speech at the National Assembly since taking office, Lee urged cooperation on a supplementary budget designed to stimulate growth and stabilize livelihoods. "On June 4, right here in the National Assembly, I took the presidential oath and pledged to build a country where the people are the true owners, a country that grows and develops with renewed strength, a society where everyone prospers together, where culture flourishes, and where safety and peace prevail," he said. Lee warned that if slow growth continues, opportunities will shrink and social tensions could intensify. "We must open the door to 'fair growth,' where we create new engines of growth and share both the opportunities and the outcomes," he said. "Only then can we ease polarization and inequality, and move toward a world where everyone thrives together." He also highlighted the need to restore credibility in South Korea's financial markets. "We need to normalize the capital markets," Lee said. "If we can recover transparency and fairness in the markets, we can revitalize the economy and allow companies to grow properly, leading us into an era where the KOSPI surpasses 5,000." His remarks came just two days after the benchmark KOSPI index crossed the 3,100 mark during intraday trading on June 24 for the first time in nearly four years. The index touched a session high of 3,101.83 before closing at 3,090.83, up 2.53 percent from the previous day. The rally was fueled by strong gains in semiconductor stocks and renewed optimism following news of a ceasefire agreement between Israel and Iran. 2025-06-26 11:22:24