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

US Embassy in Seoul resumes student visa applications with stricter social media screening SEOUL, June 20 (AJP) - The U.S. Embassy in Seoul reportedly resumed accepting visa applications on Friday, about weeks after its sudden halt to scheduling new interviews for student visa applicants late last month. But the resumption appears to come with stricter "vetting" procedures including mandatory social media screening for students planning to study in the U.S. According to a notice on its website, all individuals applying for nonimmigrant visas are "requested to adjust the privacy settings on all of their social media accounts to 'public' to facilitate vetting necessary to establish their identity and admissibility to the United States under U.S. law," which takes effect immediately. The new requirement follows an announcement by the U.S. Department of State earlier this week, in which staff at U.S. embassies and consulates were instructed to screen visa applicants for any indications of "hostility" toward the U.S., as part of measures to tighten the screening of foreigners who may pose a threat to U.S. national security. But the State Department offered no details on how "hostility" will be assessed. 2025-06-20 17:11:11

KOSPI surpasses 3,000 for first time since 2021 SEOUL, June 20 (AJP) - South Korea's benchmark stock index, KOSPI, closed above the 3,000-point mark on Friday for the first time in more than three years, signaling renewed investor confidence in the nation's economic outlook. The local currency also strengthened significantly against the U.S. dollar. The KOSPI rose 44.1 points, or 1.48 percent, to close at 3,021.84. This marked the first time the index finished above 3,000 since Dec. 28, 2021. The KOSPI originally crossed this milestone for the first time in its history on Jan. 6, 2021. Analysts attributed the upward momentum to a combination of increased global market liquidity and optimism surrounding the fiscal policies of the Lee Jae-myung administration. President Lee, who took office on June 4, has pledged to push the KOSPI toward a 5,000-point era and address the "Korea discount," a long-standing tendency for investors to undervalue South Korean assets due to geopolitical risks or other systemic issues. Specific sectors saw strong gains, particularly semiconductor, information technology, and battery shares. Samsung Electronics edged up 0.51 percent to 59,500 won, while its rival chipmaker SK hynix jumped 4.47 percent to 257,000 won. South Korea's largest search engine, Naver, soared 6.94 percent to 269,500 won, and Kakao, the operator of the nation's dominant mobile messenger, rallied 10.26 percent to 66,600 won. In currency markets, the local won was quoted at 1,365.6 won against the U.S. dollar at 3:30 p.m., a sharp appreciation of 14.6 won from the previous session's close. 2025-06-20 16:58:01

Heavy rain advisory issued as monsoon front arrives in Seoul SEOUL, June 20 (AJP) - A heavy rain advisory was issued for the Seoul metropolitan area and parts of Gangwon Province, as this summer's monsoon front brought downpours of up to 30 mm per hour. As the seasonal monsoon rain swept through the capital region, the Seoul Metropolitan Government ramped up efforts to prevent flooding and damage, implementing preemptive measures in flood-prone and low-lying areas. The Korea Meteorological Administration (KMA) predicted up to 100 mm of rainfall across the country until Saturday, with thunderstorms and strong wind gusts expected in some areas. The KMA warned the public to stay updated on weather alerts and remain cautious, especially those in areas with weakened slopes, riverbanks, and steep terrain, where heavy rains could cause landslides and flooding. 2025-06-20 16:29:45

Korean banks turn to AI to strengthen internal oversight SEOUL, June 20 (AJP) - South Korean banks are increasingly deploying artificial intelligence to bolster internal control systems, aiming to prevent financial misconduct and tighten compliance oversight by minimizing human error and bias, according to industry officials on Friday. The adoption spans a range of applications — from AI algorithms that flag suspicious transactions and detect mis-selling to chatbot systems designed to process whistleblower reports. Woori Financial Research Institute recently recommended integrating AI-powered chatbots into banks’ fraud prevention and early detection mechanisms, citing international examples including Kimberly-Clark in the United States and Canada’s Department of Justice, both of which have implemented similar tools to collect internal reports. “The psychological burden of reporting, distrust in outcomes, and low expectations around processing often discourage organizational members from filing compliance reports,” the institute noted in a report. AI chatbots, it suggested, could help address these issues by providing a neutral, efficient and anonymous reporting channel. Woori Bank introduced a confidential reporting platform, known as “Helpline,” earlier this year. The research institute’s report proposed fully automating this system in future iterations through AI technology, enabling more comprehensive data analysis and long-term risk assessment. Other major financial institutions are also integrating AI into their compliance and advisory workflows. KB Kookmin Bank has deployed AI-driven systems at branches to help prevent product mis-selling and flag suspicious activity, while Hana Bank is developing generative AI tools to manage internal policy documentation and translate regulatory texts for its overseas operations. NH Nonghyup Bank, meanwhile, has rolled out an AI-based credit inspection platform that analyzes past audit reports to automatically identify high-quality borrowers and closely monitor high-risk clients. 2025-06-20 16:10:47

South Korea unveils plan to build own ChatGPT, Gemini competitor SEOUL, June 20 (AJP) - South Korea has unveiled an ambitious national initiative to develop its own artificial intelligence foundation model, aiming to reduce reliance on U.S. tech giants and establish a competitive foothold in the fast-evolving global AI race. The Ministry of Science and ICT said Friday it will accept applications from domestic AI consortiums through July 21 to participate in the project, which seeks to build a “Korean GPT” — a large language model to rival OpenAI’s ChatGPT and Google’s Gemini. “We expect this to be the starting point for ‘AI for All,’ as South Korea’s top AI elite teams take on the challenge of developing a globally competitive, independent AI foundation model,” said Song Sang-hoon, deputy minister for ICT policy, in a statement. “This will help the nation leap forward as an AI powerhouse.” The initiative, part of a broader policy roadmap presented Wednesday to the National Policy Planning Committee, aligns with President Lee Jae-myung’s campaign pledge to establish a domestically developed AI model designed for universal access and tailored to Korean linguistic and cultural needs. Up to five consortiums will be selected in the first phase, receiving government-provided resources including graphics processing units (GPUs), curated datasets and infrastructure support. The selected teams will be tasked with building both large language models and multimodal AI systems. The government has set an ambitious benchmark: models must perform at least 95 percent as well as leading global counterparts released within the prior six months. An initial evaluation will take place in December and will include a competitive showcase judged by both the public and AI experts. 2025-06-20 16:03:32

Beauty brand Amuse opens second flagship store SEOUL, June 20 (AJP) - Vegan beauty brand Amuse unveiled its second flagship store on Friday in Seoul’s fashion-forward Seongsu-dong district, aiming to broaden its appeal among younger consumers and international fans with a digitally enhanced, immersive retail experience. The new storefront, dubbed the “Pink House,” occupies a brightly colored space on Yeonmujang-gil and marks an expansion of the brand’s offline footprint. It follows the launch of Amuse’s first flagship location in the upscale Hannam-dong neighborhood. Outfitted in vivid hues of pink, yellow, and mint, the Seongsu store is designed to embody Amuse’s core values of vegan beauty and wellness. The interior features interactive spaces for personalized consultations, exclusive in-store products, and the full lineup of the brand’s cosmetics. In a nod to the company’s digital savvy, the store also incorporates content featuring “Amuse Girl,” an AI-generated avatar that personifies the brand’s eco-conscious messaging. K-pop star and Amuse brand ambassador Jang Wonyoung attended the opening ceremony, drawing a sizable crowd of fans who lined the streets outside. The 20-year-old singer, formerly of the girl group IZ*ONE, has become the face of Amuse’s marketing campaign, which emphasizes clean beauty and self-expression. Amuse’s strategy leans heavily into the power of celebrity partnerships and social media virality to capture the attention of Gen Z consumers, both at home and abroad. The company said the Seongsu location is part of a broader effort to create more direct customer touchpoints outside of online platforms. The store opens to the public on Saturday following Friday’s launch event. 2025-06-20 15:58:25

Concerns mount over South Korea's defense cost-sharing as US sets 'new standard' SEOUL, June 20 (AJP) - Many Pundits here have begun to speculate about a possible renegotiation of South Korea's defense cost-sharing deal with Washington, after U.S. Defense Secretary Pete Hegseth said earlier this week that the U.S. has set a "new standard" for defense spending with its allies around the world including those in Asia. Pentagon spokesperson Sean Parnell also said Thursday that its European allies are setting a "global standard" for alliances, which is to spend 5 percent of their gross domestic product (GDP) on defense, and that should apply to Asia as well. Parnell further elaborated that it is "reasonable" for countries in the Asia Pacific to increase their defense budgets, given China's military buildup and North Korea's development of nuclear weapons and other missiles. These remarks came just weeks after the Pentagon chief said at NATO headquarters in Brussels early this month that NATO allies are close to reaching an agreement to raise defense spending over the next decade, adding, "Countries there are well exceeding 2 percent and we think very close, almost near consensus, on a 5-percent commitment to NATO." But the Defense Ministry here argued Friday that South Korea has already spent a significant amount compared with other key U.S. allies. "South Korea is among the countries with a high defense spending ratio in proportion to its GDP," the ministry said in a statement. South Korea spent about 66 trillion won (US$47.8 billion) on defense last year, accounting for about 2.8 percent of its GDP. Meeting the 5-percent level would require increasing the budget to over 118 trillion won (US$85.5 billion). Besides, Seoul and Washington, after multiple rounds of talks last year, already reached an agreement on an 8.3 percent hike for the upkeep of maintaining some 28,500 U.S. troops here, with Seoul shouldering 1.52 trillion won (US$1.14 billion). The agreement will be effective from 2026 through 2030, with annual adjustments based on consumer price inflation. But these issues are likely to be put on the agenda at the upcoming NATO summit scheduled for early next week in the Hague, the Netherlands, raising concerns about a possible significant hike in South Korea's defense burden. President Lee Jae-myung has not yet decided whether to attend the summit, but if he does, he could sit down for talks with U.S. President Donald Trump. Their first planned bilateral meeting fell through last week at the Group of Seven (G7) summit in Canada due to Trump's early return to Washington amid a deadly conflict in the Middle East. 2025-06-20 14:53:38

South Korea extends bidding deadline for controversial offshore gas project SEOUL, June 20 (AJP) - South Korea has extended the bidding deadline for international energy companies to join its contentious East Sea offshore gas development project, as foreign firms seek assurances about the new administration’s stance on an initiative spearheaded by the previous government. The state-run Korea National Oil Corporation (KNOC) has delayed the original June 20 deadline by several weeks, industry officials said, following requests from interested bidders for more time. The extension is expected to be formally announced through Onbid, the public auction platform managed by the Korea Asset Management Corporation. The delay comes as international oil majors weigh the commitment of President Lee Jae-myung’s administration to the project, which has drawn sharp political scrutiny. While more than 10 overseas companies have reportedly reviewed KNOC’s exploration data since bidding opened on March 20, industry experts say the future of the project remains clouded by political transition. President Lee, who took office on June 4, was a vocal critic of the gas field initiative during his campaign, labeling it a “scam” and questioning the economic viability of a project closely associated with former President Yoon Suk-yeol. The administration has yet to articulate a clear position on whether it will support continued development. KNOC drilled independently at the field’s most promising structure — known as “Blue Whale” — between December and February, but the Ministry of Trade, Industry and Energy later confirmed the site failed to yield commercially viable hydrocarbon reserves. Now, under pressure to reduce its own financial exposure, the debt-laden KNOC is courting foreign investment and technical expertise for a second phase of exploration. The company hopes to attract up to 49 percent equity participation from international partners to investigate other potentially productive structures within the offshore block. Energy analysts say foreign bidders are likely to demand policy clarity before committing to a project that could require hundreds of millions of dollars in upfront investment and years of exploration. 2025-06-20 13:59:47

MSCI upgrades Korea's short-selling rating, but cites lingering barriers SEOUL, June 20 (AJP) - Global index provider MSCI has upgraded South Korea’s short-selling accessibility rating in its annual market accessibility review, marking a modest step forward in the nation’s yearslong effort to join the MSCI World Index. Still, the firm warned that broader foreign investor access remains hampered by longstanding structural hurdles. The upgrade — moving South Korea’s short-selling rating from “negative” to “positive” — follows the partial resumption of short-selling in March, after a nearly three-year suspension. The policy shift brought the country one step closer to aligning with international standards, a key requirement for inclusion in MSCI’s flagship index. Yet the review struck a cautious tone overall, underscoring enduring concerns around South Korea’s currency market, investor registration process, and settlement mechanisms. “Despite these reforms, the registration process continues to face operational hurdles,” MSCI said in its report. “Moreover, the limited usage of omnibus accounts and over-the-counter transactions has constrained the impact of related regulatory initiatives.” MSCI also criticized the slow adoption of corporate governance reforms — particularly procedures allowing companies to confirm dividend payouts before record dates. The firm noted that only a small number of companies have implemented the measure, limiting its effectiveness. South Korea has sought inclusion in the MSCI World Index since 2008, when it was placed on the firm’s watch list. Currently, South Korea holds six “negative” ratings across MSCI’s 18 market accessibility criteria, down from seven a year earlier when short-selling access was downgraded. Key areas requiring improvement include liberalization of the foreign exchange market, streamlining of investor registration, modernization of clearing and settlement systems, and expansion of investment products. In April, Financial Services Commission Chairman Kim Byoung-hwan met with senior MSCI officials in an effort to underscore the government’s reform agenda and advocate for a more favorable evaluation. 2025-06-20 11:11:53