Tariffs take toll as Korea's steel exports to US drop sharply in May SEOUL, June 23 (AJP) - South Korea’s steel exports to the United States fell sharply in May, marking the first significant contraction since Washington imposed new tariffs earlier this year, trade data released Monday showed. According to the Korea International Trade Association, shipments to the U.S. declined 16.3 percent year-on-year to $327 million, down from $390 million in May 2024. The slump comes as the full effects of the 25 percent tariffs on steel and aluminum, enacted March 12, begin to ripple through the global supply chain. Prices also tumbled. Export unit prices fell 9.4 percent to $1,295 per ton in May from $1,429 a year earlier. The month-over-month drop was even steeper: a 14.6 percent decline from April’s $1,517 per ton, suggesting that Korean producers have begun absorbing tariff-related costs in order to preserve market share. “The structure of the steel trade means there is typically a two- to three-month lag between policy implementation and export data,” said Chang Sang-sik, director of the Korea International Trade Association’s trade research institute. “We’re now seeing the full materialization of tariff impacts, as Korean exporters start shouldering the cost burden to sustain volumes.” While monthly export volumes have hovered between 240,000 and 250,000 tons for much of the year, the steep price cuts in May indicate a strategic recalibration by South Korean steelmakers such as POSCO and Hyundai Steel. Analysts warn the downward pressure is unlikely to ease. On June 4, the United States doubled its tariff on South Korean steel to 50 percent, a move expected to further undermine competitiveness and prompt American buyers to turn to alternative suppliers. 2025-06-23 10:54:36

Closure of Hormuz Strait likely to imperil South Korea's energy lifeline SEOUL, June 23 (AJP) - Iran’s parliament has approved a measure to close the Strait of Hormuz, raising the specter of a severe energy crisis in South Korea. The move, seen as retaliation for recent U.S. military strikes on Iranian nuclear facilities, threatens to sever a critical artery through which nearly 70 percent of South Korea’s crude oil imports flow. The narrow waterway, wedged between Iran and Oman, is one of the world’s most strategic maritime chokepoints. It serves as the primary conduit for oil from major Middle Eastern producers — including Saudi Arabia, Kuwait, and the United Arab Emirates — most of which must transit through the strait to reach Asian markets. “Virtually all of South Korea’s Middle Eastern crude passes through Hormuz,” said an energy analyst in Seoul. “A shutdown would have immediate and far-reaching consequences for the Korean economy, especially in energy-intensive sectors.” About 99 percent of Middle Eastern oil shipments to South Korea are routed through the strait, underscoring the country’s acute vulnerability to geopolitical shocks in the Persian Gulf. The latest escalation sent crude oil prices sharply higher over the weekend, as markets absorbed the implications of a potential shipping blockade. Domestic gasoline and diesel prices in South Korea, which had been declining for over a month, reversed course, with traders pricing in fears of prolonged supply disruptions. The surge is already squeezing corporate margins and curbing consumer spending. Officials in Seoul convened emergency meetings over the weekend to weigh contingency measures. The government is exploring alternative supply routes and strategic reserve deployments, but officials privately concede that few viable options exist should the strait remain closed for an extended period. The industrial sector is likely to be the hardest hit. South Korea’s sprawling network of refineries, petrochemical complexes, and steel mills — most of which rely heavily on imported crude — could face production curtailments within weeks, analysts warned. Key export engines such as semiconductors and automobiles would also feel the ripple effects. Construction firms, many of which depend on large-scale contracts in the Middle East, are watching the situation with growing unease. South Korean companies secured $5.64 billion in regional projects from January through May, accounting for nearly half of their total overseas orders, according to the International Contractors Association of Korea. Economists warn that the crisis could not have come at a worse time. With global growth forecasts hovering around 2 percent and inflationary pressures mounting, a sustained oil price shock could tip South Korea’s economy into stagflation. Some projections suggest GDP growth could fall below 1 percent if military confrontation in the region intensifies. “This is no longer a distant geopolitical risk,” one Seoul-based economist said. “It’s a direct threat to Korea’s economic stability.” 2025-06-23 10:50:21

SK Group to build hyperscale AI data center SEOUL, June 23 (AJP) - SK Group is investing in a hyperscale data center that seeks to reduce the nation’s reliance on foreign technology providers in a move aimed at advancing South Korea’s pursuit of sovereign artificial intelligence capabilities. Through a strategic partnership with Amazon Web Services, SK plans to build a 100-megawatt AI-specialized facility in the southern industrial city of Ulsan. Slated to begin operations in 2027, the project marks one of the country’s first significant steps toward establishing a self-reliant AI infrastructure. The facility is designed to support AI model training, inference, and deployment, offering a domestic backbone for emerging technologies that have so far depended heavily on overseas platforms. “This is more than just a data center,” President Lee Jae-myung said during a recent visit to Ulsan. “It is a milestone for regional innovation and a symbol of our commitment to decentralizing advanced technology beyond Seoul.” SK Group’s involvement goes far beyond financial investment. The conglomerate is overseeing site development, semiconductor system integration, and energy provisioning for the facility. To meet the immense power demands of AI workloads, the data center will be supplied by an on-site liquefied natural gas and liquefied petroleum gas hybrid power plant, operated by SK Gas. The gigawatt-scale plant is expected to ensure both energy security and sustainability. Chey Tae-won, chairman of SK Group, emphasized the broader implications for national policy. “Sovereign AI isn’t possible without long-term public-private collaboration,” he said. “The government must play a dual role — as both a policy driver and a leading consumer of homegrown AI technologies.” The Ulsan data center is part of a growing effort by South Korea to localize the critical infrastructure behind artificial intelligence — from compute and chips to power and storage. The initiative reflects increasing global interest in AI sovereignty, as governments and corporations seek to safeguard sensitive technologies from geopolitical disruptions. 2025-06-23 10:44:34

Lee meets ruling and opposition leaders at his residence SEOUL, June 22 (AJP) - President Lee Jae Myung met with leaders of the ruling Democratic Party (DP) and the main opposition People Power Party (PPP) to discuss state affairs and various other issues. The luncheon meeting was held at his temporary residence in Hannam-dong, central Seoul, bringing together Kim Byung-kee, the DP's acting leader and floor leader, Kim Yong-tae, the PPP's interim leader, and Song Eon-seok, the PPP's floor leader. Following Lee's briefing on the results of his recent attendance at the Group of Seven (G7) summit in Canada, they discussed a range of pending state affairs without a fixed agenda, though details of their conversations were not disclosed. The meeting took place about three weeks after Lee took office earlier this month, after he promised to listen to diverse opinions and foster cooperation between the rival parties. Presidential Secretary for Political Affairs Woo Sang-ho said later in the day, "The president and the ruling and opposition party leaders agreed that it was meaningful to have an open and candid dialogue," adding that they expressed their intention to hold similar meetings more often. 2025-06-22 15:25:26

Security officials hold emergency meeting after US airstrikes on Iranian nuclear sites SEOUL, June 22 (AJP) - An emergency meeting, chaired by National Security Adviser Wi Sung-lac, was convened on Sunday shortly after the U.S. struck nuclear facilities in Iran. In the meeting, key security officials assessed the situation in the Middle East and discussed the potential impact on South Korea's security and economy. Earlier, the U.S. carried out airstrikes on three Iranian nuclear sites including a secret underground uranium enrichment facility located in a remote mountainous area near Tehran, which reportedly can only be penetrated by U.S.' so-called bunker-buster bombs. Calling the operation a "spectacular military success," U.S. President Donald Trump said in a televised address from the White House, "The U.S. military carried out massive precision strikes on the three key nuclear assemblies in the Iranian regime: Fordo, Natanz and Esfahan." He added, "Tonight, I can report to the world that the strikes were a spectacular military success. Iran's key nuclear enrichment facilities have been completely and totally obliterated." Calling Iran "the bully of the Middle East," Trump warned that future U.S. attacks would be "far greater and a lot easier" if Tehran refuses to make peace. "But if peace does not come quickly, we will go after those other targets with precision, speed and skill. Most of them can be taken out in a matter of minutes," he further threatened. The attack came just two days after he said he would decide whether to strike Iran "in the next two weeks," as he prepared to attend a NATO summit scheduled for this week in The Hague, the Netherlands. Concerns are growing that U.S. involvement in the ongoing deadly conflict between Iran and Israel could further escalate the crisis in the Middle East. U.N. Secretary-General Antonio Guterres voiced concerns, calling America's strikes a "dangerous escalation." He said, "I am gravely alarmed by the use of force by the United States against Iran today. This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security." "There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world," he added. The Ministry of Foreign Affairs here raised travel warnings for Iran last week and has since been evacuating South Korean nationals via land routes and other means. 2025-06-22 14:30:16

Trade officials from South Korea and US to sit down for talks ahead of July tariff deadline SEOUL, June 22 (AJP) - The first working-level trade talks between Korea and the U.S. since President Lee Jae-myung took office earlier this month will take place in Washington early this week. Trade Minister Yeo Han-koo left for Washington on Sunday to hold bilateral trade talks with his U.S. counterparts. During his visit, he is expected to meet with U.S. Trade Representative Jamieson Greer, as well as other high-ranking U.S. government officials, to discuss tariff-related and other trade issues. Prior to the inauguration of the Lee administration, trade officials from both countries agreed to work toward reaching a broader packaged deal by July 8, the day U.S. President Donald Trump's 90-day tariff suspension is set to expire. Attention is now focused on whether the two countries can narrow their differences through negotiations and produce meaningful outcomes by the deadline. Yeo is expected to push for exemptions or significant reductions in reciprocal tariffs, including the U.S.' steep hikes on steel and aluminum imports. Since his appointment to the post just over a week ago, Yeo has reportedly consulted with relevant government ministries and agencies in preparation for his U.S. trip. The export-dependent country has already begun to feel the pinch, with automobile exports to the U.S. dropping by more than 30 percent last month, largely due to a 25-percent tariff implemented in April. 2025-06-22 10:51:56

Yoga enthusiasts in Seoul gather to celebrate international day SEOUL, June 21 (AJP) - An event celebrating the International Day of Yoga was held at Gwanghwamun Square in central Seoul on Saturday, bringing together hundreds of participants from both the Korean and Indian communities. Co-hosted by the Korean Yoga Association and the Embassy of India in Seoul, the event featured a series of yoga sessions, performances, and speeches aimed at deepening public understanding of yoga. Attendees included yoga practitioners, instructors, embassy officials, and citizens from many different fields, reflecting the growing popularity of yoga in South Korea. The International Day of Yoga, which is celebrated annually on June 21, was first proposed by Indian Prime Minister Narendra Modi in 2014 and adopted by the United Nations the same year. The day aims to promote the advantages of practicing yoga as a physical, mental, and spiritual discipline. “This year, as we celebrate the 10th Anniversary of the International Day of Yoga, we are reminded of how Yoga has truly become a global phenomenon. What began as a spiritual discipline in ancient India more than 3000 years ago has today evolved into a holistic way of life practiced all around the world,” said Indian Ambassador to Seoul Amit Kumar in his remarks at the event. “Yoga has transcended borders, cultures and generations establishing itself as a universally accepted practice to nurture physical, mental and spiritual well-being.” Kumar noted that nearly 8 million people in South Korea also practice yoga, expressing hope that today’s event would encourage even more people in Korea to explore yoga. “Here in Korea, the sight of numerous yoga enthusiasts taking part in our annual IDoY events is heartwarming...As we reflect on this decade-long journey of the IDoY, we are reminded that Yoga is not just a practice, but a worldwide movement - a powerful symbol of global harmony, shared humanity, and the timeless relevance of ancient wisdom in a modern world." The event included a mass yoga session led by instructors, along with yoga-themed dance and cultural performances, offering participants a chance to engage with various aspects of yoga. 2025-06-21 21:03:45

Police charge 15 more officials over December Jeju Air crash SEOUL, June 21 (AJP) - South Korean police have filed criminal charges against 15 additional officials for their alleged roles in failing to prevent the Dec. 29 Jeju Air passenger jet crash, investigators announced on Saturday. The South Jeolla Provincial Police's investigation unit charged the officials with professional negligence resulting in death and injury, bringing the total number of suspects under investigation to 24 people including those previously charged following complaints filed by victims' families. The newly charged individuals include Ministry of Land, Infrastructure and Transport officials, Korea Airports Corporation employees, and personnel from companies involved in localizer facility construction. Police allege each failed to properly fulfill their duty of care in their respective positions, including air traffic control duties, bird strike prevention measures, and localizer facility construction oversight. Investigators identified particularly serious violations related to the concrete localizer structure installed at the end of the runway, which they consider a critical safety breach. Air traffic controllers allegedly failed to adequately observe bird movements and flight paths or properly inform the pilot of bird activity. According to ministry guidelines, controllers must provide pilots with information about bird flocks, including their size and direction of movement, for at least 15 minutes when birds are observed. Police also found evidence that bird control personnel failed to properly carry out preventive measures against bird strikes. Authorities plan to review whether to seek arrest warrants based on the severity of each individual's negligence and will consider additional charges pending results from localizer facility assessments and engine disassembly investigations. 2025-06-21 17:32:40

Samsung and SK hynix on edge as US considers restricting equipment shipments to China facilities SEOUL, June 21 (AJP) - Samsung Electronics and SK hynix are closely monitoring developments after US officials reportedly notified the South Korean chipmakers this week about potential restrictions on American semiconductor equipment shipments to their China-based facilities, according to a report on Friday. The Wall Street Journal reported that Jeffrey Kessler, assistant secretary for export administration at the US Commerce Department, informed both companies along with Taiwan's TSMC about plans to revoke exemptions that currently allow unrestricted equipment supplies to their Chinese operations. The proposed measures would effectively block US semiconductor equipment from companies including Applied Materials, Lam Research and KLA from entering Chinese facilities operated by foreign chipmakers. This represents the latest move by the Trump administration to curb China's semiconductor capabilities, following previous restrictions on high-bandwidth memory exports and the ongoing ban on ASML's extreme ultraviolet lithography equipment exports to China since 2019. Industry experts suggest the impact on Korean companies may be limited, as firms have had time to prepare contingency plans since the Biden administration began implementing "de-risking" policies targeting China's presence in critical technology supply chains. An industry research specialist noted that companies have had time to develop countermeasures since equipment import restrictions for Chinese facilities have existed previously, suggesting the new limitations may not cause significant concern. Samsung operates NAND flash production and semiconductor packaging facilities in Xi'an and Suzhou respectively, while SK hynix runs DRAM manufacturing in Wuxi, packaging operations in Chongqing, and a NAND facility in Dalian acquired from Intel. Both companies are carefully monitoring the situation as the proposed policy has not received full approval from other US government departments, according to the Wall Street Journal report. The US government previously granted exemptions to Samsung and SK hynix when it announced semiconductor export controls in October 2022, initially providing a one-year waiver before designating both companies as "verified end users" for indefinite exemption. Industry observers suggest similar exemptions could emerge again, noting that US measures target Chinese companies rather than foreign firms operating in China, leaving room for potential policy adjustments that would spare non-Chinese manufacturers. 2025-06-21 14:58:53

South Korean fuel prices rise for first time in six weeks amid Middle East tensions SEOUL, June 21 (AJP) - Gasoline and diesel prices at South Korean gas stations posted their first weekly increase in six weeks, reflecting rising international oil prices driven by Middle Eastern geopolitical risks. According to the Korea National Oil Corporation's price information system Opinet on Saturday, the national average gasoline price for the third week of June (June 15-19) rose 7.8 won per liter to 1,635.5 won ($4.54) compared to the previous week. Diesel prices similarly increased by 7.6 won per liter to an average of 1,498.2 won during the same period. Regional price variations showed Seoul posting the highest fuel costs at 1,709.4 won per liter, up 12.8 won from the previous week, while Daegu recorded the lowest prices at 1,598.8 won per liter, an increase of 8.6 won. Among major brands, SK Energy gas stations commanded the highest average price at 1,645.9 won per liter, while discount gas stations offered the lowest rates at 1,602.2 won per liter. The domestic fuel price increases followed a sharp rise in international oil markets as traders factored in heightened geopolitical risks from the Iran-Israel military confrontation. Dubai crude, the benchmark for imported oil prices in South Korea, jumped 6.6 dollars to 74.7 dollars per barrel compared to the previous week. International gasoline prices rose 5.6 dollars to 84.8 dollars per barrel, while international automotive diesel climbed 9.6 dollars to 93.7 dollars per barrel. A Korea Petroleum Association official noted that international oil prices surged after Israel conducted airstrikes against Iran on June 13, with the upward trend continuing since then. International oil price fluctuations typically take two to three weeks to be reflected in domestic gas station prices, and the industry expects further price pressures in coming weeks with rising prices anticipated to continue for the time being. 2025-06-21 10:39:27