Musinsa launches K-culture platform targeting global fans SEOUL, November 24 (AJP) - South Korean fashion platform Musinsa launched K-KONNECT this month, a dedicated category featuring K-pop and K-culture merchandise including fashion items, albums, and event tickets. The service, which builds on Musinsa's limited-release platform "Musinsa Drop" launched in 2023 and "Musinsa Edition" brand collaborations from 2024, aims to connect Korean culture with global fans through exclusive products and offline pop-up stores. K-KONNECT covers categories ranging from artist collaborations with fashion brands to album releases. The platform offers exclusive merchandise, photo cards and other special benefits available only through Musinsa, along with offline pop-up stores. Recent launches include BLACKPINK character fashion items and a special edition lightstick customization kit on Nov 1, with pop-up stores in five locations including Seoul and Busan running through Nov 10. Virtual boy group PLAVE's second single album "PLBBUU" released on Nov 11 through online and offline channels reached number one in popular product rankings. The offline pop-up drew long queues of fans waiting before opening. "Collaboration cases are increasing across the content industry to strengthen trendy and hype images by partnering with fashion brands, and Musinsa with its strong young customer base is attracting attention as an optimal platform," a Musinsa official said, adding the company plans to expand artist and IP-based business collaborations through K-KONNECT. 2025-11-24 17:38:57

BOK seen holding rates through early 2026 as won weakens and debt pressures mount SEOUL, November 24 (AJP) - The Bank of Korea is widely expected to keep its key rate unchanged at 2.50 percent this week — and likely through the first half of 2026 — as the steep slide in the Korean won and heavy private-sector debt leave little room for further easing. The Monetary Policy Board meets Thursday for its final rate decision of the year. The base rate was cut twice in the first half, by a combined 50 basis points from 3.00 percent to 2.50 percent, and has stayed on hold since May. The pause came as housing demand reignited ahead of a hawkish incoming government, and as a frenzy for U.S. tech stocks fueled structural weakness in the won and Korean bonds, narrowing policy options for fiscal and monetary authorities. The U.S. dollar traded at 1,476 won on Monday — a level last seen during the global financial crisis in 2009 and again during the presidential impeachment in April — while Korean government bond yields hover above 3 percent. The BOK’s widening rate gap with the U.S. Federal Reserve is contributing to the pressure: the Fed’s benchmark stands at 3.75–4.00 percent, well above Korea’s 2.50 percent. A prolonged U.S. government shutdown has driven investors toward dollar assets, Treasuries, and gold, helping explain why the won continued to weaken even as $2.29 billion flowed into Korean equities. Outbound demand for dollar assets intensifies pressure Korea’s deepening appetite for overseas investments is adding another drag on the currency. According to BOK balance-of-payments data released November 6, outbound portfolio investment by Korean residents surged $11.2 billion in September, outpacing the $9.1 billion in foreign inflows to Korean securities. In short, Koreans bought more foreign assets than foreigners bought Korean ones. Institutional investors mirror the trend. As of August, the National Pension Service allocated 36.8 percent of its assets to overseas equities — nearly triple the 14.8 percent invested at home. Including bonds, overseas assets accounted for 43.9 percent of the NPS portfolio, exceeding its domestic holdings at 39.4 percent. Debt overhang limits BOK’s maneuvering room High household leverage is another constraint on policy. Korea’s household debt reached a record 2,325.8 trillion won ($1.58 trillion) at the end of June, BOK data show. The household-debt-to-net-GDP ratio climbed to 89.7 percent. Housing loans remain the bulk of the load, totaling 1,159 trillion won in the third quarter, while margin loans used for stock leverage rose to 26.85 trillion won as retail investors borrowed aggressively during this year’s KOSPI rally. “Korean outbound investment has become heavily concentrated in equities, and corporate demand for dollar conversion has fallen as exposure to U.S. assets has increased,” said Wi Jae-hyun, economist at NH Futures Research Center. Given expectations of continued won weakness, he said, the BOK has little choice but to stay on hold. Shinyoung Securities researcher Cho Yong-gu also dismissed the likelihood of easing, saying he sees no rate-cut scenario at least until May next year. 2025-11-24 17:37:33

Korean won nears 1,500, reshaping export gains and deepening cost pains across industries SEOUL, November 24 (AJP) - The Korean won’s slide toward the 1,500-per-dollar mark — a level touched only during crisis periods — is raising alarms for a trade-dependent economy where a cheaper currency now delivers diminishing benefits to exports while magnifying cost burdens for companies with massive U.S. investment plans. According to Bank for International Settlements data, Korea’s real effective exchange rate (REER) fell to 89.09 at the end of October, the lowest since August 2009. A REER below 100 signals an undervalued currency, and the index is expected to drop further for November after the dollar gained more than 3 percent over the past month. FX dynamics no longer guarantee an export lift In past cycles, a weaker won reliably boosted Korean exporters by enhancing price competitiveness against Japanese and European rivals. Today, the equation is more complicated. A disproportionately weak currency can distort costs, compress margins, and aggravate balance-sheet stress — especially for conglomerates juggling multi-billion-dollar commitments tied to the $350 billion U.S. investment package negotiated as part of the tariff deal. Economists say the latest bout of weakness reflects both global and domestic factors. “The dollar is strong everywhere, but the won has weakened more sharply than peers like the yen,” said Jang Bo-sung, research fellow at the Korea Capital Market Institute. He cited Korea’s surge in overseas equity investment and exporters’ reluctance to convert dollar-denominated proceeds as key reasons for the tight FX supply. “This looks more like a supply–demand imbalance than a structural collapse,” he said, suggesting the slide is driven more by near-term flows than a long-term depreciation trend. Chipmakers: higher dollar revenue, higher dollar costs A strong dollar carries mixed implications for semiconductor firms, which account for a quarter of Korea’s exports and derive significant revenue from the U.S. — an estimated 70 percent for SK hynix. While a stronger dollar lifts reported earnings, it also raises import costs for materials, equipment, and R&D inputs, limiting net benefits. “Semiconductors and shipbuilding are industrial goods with lower FX sensitivity than consumer products,” Jang noted. “The export boost from a weaker won is far smaller today than in the 2000s.” Adding to the strain, Korean chip, battery, and auto makers are locked into major U.S. factory builds. A strong dollar inflates the won-denominated cost of these projects: LG Energy Solution’s Arizona plant, initially estimated at $3.2 billion when the rate was 1,305 won per dollar, now faces more than 10 percent higher local-currency costs. Aviation and import-heavy sectors face direct cost shock Industries that rely heavily on dollar-denominated inputs are among the most exposed. Airlines pay for jet fuel, aircraft leases, and many maintenance contracts in dollars, meaning every notch lower in the won widens their cost base. Even with recovering passenger demand, carriers risk margin compression unless they raise fares or cut capacity — decisions that could cool travel demand. Import-dependent sectors such as petrochemicals, cement (due to coal), and start-ups conducting overseas clinical trials also face disproportionate pain, as they cannot avoid dollar-priced inputs while global demand remains weak. The old rule of FX-driven export gains is fading The traditional rule of thumb — a weaker won automatically boosts export champions — has weakened. Korea’s conglomerates increasingly produce goods in overseas factories and sell them in local currencies, while hedging more aggressively to smooth volatility. As a result, the pass-through from FX weakness to export volume has diminished, while the inflationary impact of pricier imports has intensified at home. “Exports today benefit less from FX than they used to, while import costs feed into domestic inflation much more quickly,” Jang said. A 1,500 won level is now more balance-sheet stress test than export windfall Going forward, the won’s trajectory will hinge on Korea–U.S. interest-rate differentials, foreign capital flows, and the country’s trade balance. Research from the Korea Capital Market Institute shows that the exchange-rate effect on Korea’s exports has markedly weakened since the early 2010s as manufacturers expanded offshore production and moved deeper into global value chains. A near-1,500 won level, once considered an export advantage, now functions more as a stress test for corporate balance sheets and investment plans than a simple tailwind for competitiveness. 2025-11-24 17:35:55

Food inflation may be brewing as the dollar–won rate stays at crisis levels SEOUL, November 24 (AJP) - Kalguksu, flour dough cut by knife into noodles and served in a steamy broth, is one of the cheapest comfort meals for Korean office workers on cold winter days. But even this humble bowl is no longer cheap. A serving now averages 9,846 won ($7), up 5 percent from a year ago and more than 50 percent from a decade earlier. It is the latest addition to Korea's growing list of food-flation items, as the soaring dollar–won exchange rate raises the cost of imported ingredients and, eventually, finished products that reach shelves and restaurant tables. The U.S. dollar rose 4.50 won to 1,476.5 on Monday, despite the finance ministry's move to form an emergency FX council with the Bank of Korea and the National Pension Service. The NPS, the country's largest institutional investor, is also one of the biggest structural sellers of won due to its massive U.S. equity holdings. The won has averaged 1,453.9 this month, up 4.6 percent from August, pointing to stronger import-driven inflation pressure heading into the fourth quarter. Headline inflation rose 2.4 percent on-year in October, but pressure was stronger in key categories. Processed foods climbed 3.5 percent, petroleum products 4.8 percent, and dining-out prices 3.0 percent. Economists estimate that a 1 percent increase in the exchange rate typically adds 0.06 percentage point to consumer inflation. Flour prices illustrate the trend. The flour consumer price index jumped from 108.47 in December 2021 to 138.17 in December 2022 after Russia invaded Ukraine. It has since hovered in the 130 range, recording 137.59 in December 2023, 137.43 in December 2024 and 135.33 last month. Some food ingredients have eased since the Ukraine-related spikes. According to the Korea Agro-Fisheries & Food Trade Corporation, cocoa prices fell 41.38 percent from a year earlier to $5,084 per ton on Nov. 21. Raw sugar dropped 39.68 percent, milk 10 percent, wheat 3.57 percent and oats 16.79 percent over the same period. But others remain elevated. Soybeans traded around $412.27 per ton in November, up 12.27 percent from a year ago. Barley edged up 0.49 percent, tapioca starch rose 4.6 percent and Arabica coffee prices climbed 10.48 percent. Because Korea depends heavily on imported inputs, these global price trends pass quickly into local supply chains. Domestic food manufacturers used only 31.9 percent domestic ingredients in 2023, meaning roughly 70 percent of raw materials such as wheat, soybeans, corn, palm oil and raw sugar were sourced from overseas. Producer prices rose 0.2 percent month-on-month in October to 120.82, marking the second straight monthly increase. Import prices, based on the domestic supply price index, climbed to their highest level in 18 months. Household burdens are rising in fuel as well. Nationwide gasoline prices jumped 25.8 won per liter in the third week of November. Seoul posted the highest average at 1,799.1 won per liter, while Daegu averaged 1,706.5 won. International oil markets showed mixed movements. Dubai crude, Korea's benchmark, inched down 0.3 dollar to $64.6 per barrel, while international gasoline prices fell 1.4 dollars to $78.8. The Korea National Oil Corporation said global oil prices eased as the United States proposed a draft peace plan to end the Russia–Ukraine war and markets grew more confident that the Federal Reserve may skip a rate cut in December. However, it warned that domestic pump prices are likely to keep rising due to persistent exchange-rate pressure, despite softer crude. "Import prices no longer work as a double-edged sword as they used to. With the economy essentially running on low blood pressure, interest rates lower than the U.S., and excessive liquidity through vouchers, inflation is now fueled by a weak currency," said Cho Dong-geun, professor emeritus of economics at Myongji University. 2025-11-24 17:28:13

Hollywood star Charlize Theron spotted in Seoul's trendy neighborhood SEOUL, November 24 (AJP) - Hollywood actress Charlize Theron was recently spotted in Seoul's trendy areas near Hongik University, crating a buzz among fans here. A video clip posted on social media on Sunday showed Theron dressed in a brown trench-style coat and sunglasses, walking with her daughter without any security guards. The clip went viral immediately. When one fan approached her and asked to take a photo together, Theron smiled and warmly posed with her arm around the fan. Theron's visit to South Korea has not been unknown, but her relaxed outing with her daughter suggests she might be on vacation. An Oscar winner for "Monster" (2003), Theron has starred in many hit films including "The Italian Job" (2003) and "Mad Max: Fury Road" (2015). Her upcoming film "Odyssey" directed by acclaimed filmmaker Christopher Nolan is slated for release here in July next year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 17:15:16

Gov't unveils plans to attract global talent, top scientists by 2030 SEOUL, November 24 (AJP) - South Korea unveiled its plans to attract 2,000 foreign experts and recruit 100 top-tier global scientists by 2030 at a meeting held at the government complex in central Seoul on Monday. The meeting was attended by Prime Minister Kim Min-seok, Bae Kyung-hoon, the Minister of Science and ICT and other officials from relevant ministries. The ambitious plans aim to address the declining school-age population amid the country's ultra-low birthrate, as well as the urgent need to nurture talent in the science and engineering sectors to maintain the country's competitiveness in highly advanced technical fields including artificial intelligence (AI). According to the science ministry, the number of those with master's degrees is expected to peak at 63,248 in 2027, while PhD holders are forecast to reach their peak in 2030. Moreover, South Korea is also facing a brain drain, as many students who studied abroad choose not to return home, while homegrown scientists, engineers, AI experts and other skilled professionals are increasingly leaving the country in search of better pay and more opportunities, with just over half or 54 percent of PhD holders choosing to remain. To address these challenges, the ministry plans to select about 100 leading scientists by 2030, around 20 each year, who will receive support to conduct their research here. AI-specialized schools and research centers will be established in partnership with local universities, along with expanded research positions. To attract foreign talent, researchers will be offered salaries and other labor costs of up to 1 billion Korean won (about US$680,000), and a new top-tier visa will allow their spouses to work in South Korea, encouraging long-term stays. The ministry stressed the urgency, saying "The next five years will be critical for addressing the anticipated shortage of science and engineering professionals by 2030." 2025-11-24 16:47:53

 NPS pushed to front line of FX defense as KRW sinks to crisis levels SEOUL, November 24 (AJP) - South Korea’s fiscal and monetary authorities, constrained in their ability to slow the won’s steep decline, are turning to an unlikely player for relief: the National Pension Service (NPS), the country’s largest institutional investor and one of the biggest structural movers of the dollar–won rate. Working-level officials from the NPS met finance ministry counterparts at the Sejong Government Complex on Monday. In a press statement, the finance ministry said it has formed a joint "council" with the NPS, the Ministry of Health and Welfare that oversees the pension, and Bank of Korea to "monitor" the foreign exchange impact of the fund's overseas investment portfolio. The irony is that the fund is one of the biggest sellers of Korean currency as it finances a record expansion of its overseas portfolio—especially U.S. equities concentrated in the same big-tech and AI names now at the center of global bubble concerns. The dollar has strengthened more than 3 percent over the past month, nearing 1,480 won—a level touched only during extreme stress periods such as the 2009 global financial crisis or this April’s political turmoil. The won’s weakness has persisted even as foreign investors were record buyers of Korean shares last month, only to abruptly reverse course amid renewed fears of overvalued AI stocks in the U.S. Finance Minister Koo Yun-cheol, after meeting with the Bank of Korea governor and top financial regulators earlier this month, underscored the need to “improve structural imbalances” in FX supply and demand. The government has been consulting with major exporters and the NPS to help “smooth” excessive won depreciation. A giant investor—and a structural source of dollar demand Policymakers’ concern centers on the sheer offshore footprint of the NPS, one of the world’s largest institutional investors. As of end-August, the fund managed 1,322 trillion won, with 486.4 trillion won—36.8 percent—allocated to global equities, according to official data. Separate U.S. SEC filings show that U.S. holdings now form the sharpest edge of this exposure. In a Form 13F filed on Nov. 4, the NPS reported $128.8 billion in U.S. equities across 552 companies, up 11.2 percent from the previous quarter as both buying and valuations increased. At the top of its holdings sit Nvidia, Apple, Microsoft, Amazon, and Meta—America’s AI and cloud heavyweights. According to Fintel, the NPS holds roughly 49.6 million Nvidia shares, making it one of the world’s largest institutional shareholders. From the government’s perspective, the NPS is simultaneously a potential stabilizer in the FX market and a structural driver of dollar demand. Korean individuals separately hold $99.85 billion in overseas securities as of September. The NPS features prominently in recent FX-related verbal intervention, but its mission is fundamentally long-term: sustaining retirement payouts in a rapidly aging society. Its mid-term allocation plan calls for a continued increase in overseas and risk assets while trimming domestic bonds to improve returns. Each incremental shift into foreign stocks requires fresh dollar buying—a persistent downward force on the won that no one-off FX operation can meaningfully offset. This dynamic also explains why movements in Korea’s FX reserves remain modest despite recent volatility. Authorities, however, cannot exert too much pressure without inviting accusations of politicizing the nation’s last-resort retirement savings. Still, the combination of record overseas allocation and an AI-heavy portfolio is one of the most sensitive macro-financial issues facing policymakers. Analysts doubt the NPS will bend easily to government wishes. Details of Monday’s meeting remain sealed, but the market’s verdict was clear: the dollar gained an additional 3.9 won to close at 1,475.90. 2025-11-24 16:47:00

Bakery chain Paris Croissant to be split into operating, investment entities SEOUL, November 24 (AJP) - South Korea’s SPC Group said Monday it will divide its affiliate Paris Croissant into two separate business and investment entities as part of a corporate restructuring plan approved at a board meeting on Nov. 21. The company began notifying employees of the changes, which it said are intended to streamline decision-making and clarify the responsibilities of Paris Croissant, which also functions as a de facto holding company within the group. A shareholder meeting to finalize the plan will be held before the end of the year, SPC said. As part of the overhaul, Paris Croissant will merge with SPC Co., its wholly owned subsidiary that provides legal, public relations, and compliance support for the group. These functions will continue after the merger. SPC Group emphasized that all employees will remain in their current roles and that there will be no changes to pay, working conditions or benefits. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 16:18:37

South Korea's mobile download speeds triple global peers, report shows SEOUL, November 24 (AJP) - South Korea’s telecommunications operators delivered mobile download speeds more than three times faster than those in other major countries last year, according to a report released Monday by the Korea Telecommunications Operators Association (KTOA). Average download speeds across South Korea reached 1,025.52 Mbps in 2024, roughly 3.8 times higher than the 268.01 Mbps average recorded across seven benchmarked countries, the association said. The performance further cemented South Korea’s position as a global leader in mobile network quality. Even compared with the fastest overseas city surveyed — San Francisco, at 501.05 Mbps — South Korea’s download speeds were more than double. Upload speeds in South Korea averaged 90.12 Mbps, about 1.6 times higher than the 53.88 Mbps average overseas. Latency stood at 20.01 milliseconds, less than half the 53.64 milliseconds recorded in the comparison markets, indicating significantly more stable and responsive connections. The report noted that while 5G network quality continues to improve globally, many foreign cities still face coverage limitations, including inconsistent service on subway systems. South Korea also topped international rankings for public Wi-Fi performance. Public hotspots provided an average download speed of 463.55 Mbps, nearly 10 times the 48.26 Mbps average measured abroad. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 15:52:25

South Korean man found dead in bag in Viet Nam SEOUL, November 24 (AJP) - The body of a man believed to be South Korean was discovered inside a large bag in Viet Nam, the Ministry of Foreign Affairs said on Monday. According to the South Korean Consulate General there, the body was found inside a large blue bag near a residential area in Ho Chi Minh City the previous day. "We are in close communication with local authorities and will provide necessary consular support," said a ministry official, declining to give further details, citing that "the relevant investigation is ongoing." Local police identified the body as South Korean and cordoned off the area. Two South Korean suspects, who reportedly fled the scene by taxi as bystanders gathered, are being questioned after their arrest. Police are working to determine the time and cause of death as the body was found in a state of decomposition. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 15:17:56