Korean legislative finally moves on FX support as won levels breach crisis levels SEOUL, Mar. 17 (AJP) - South Korea’s National Assembly is scrambling to fast-track a package of exchange-rate support bills after sitting on them for months as the won comes under renewed pressure from the widening Gulf war. The urgency reflects not just broad dollar strength but a sharper loss of confidence in the won itself. According to the Financial Supervisory Service, the won weakened 4.12 percent against the dollar as of Monday from end-February, before the war erupted, with the rate rising from 1,438.4 won to 1,497.6 won. That compares with a 2.82 percent rise in the Dollar Index over the same period and a 2.08 percent gain in the dollar against the Japanese yen — even as the two neighboring economies share similar exposure to disruptions in the Strait of Hormuz. China’s yuan, also dependent on Gulf shipping routes, moved only 0.55 percent. The scale of the move has reinforced market concerns that Korea is being punished more severely than its peers, reflecting heavier foreign outflows from local equities that had outperformed prior to the war. The won-dollar exchange rate averaged 1,476.9 won this month, the highest monthly level since the 1998 Asian financial crisis, while last week’s average climbed to 1,480.7 won. The currency briefly breached the 1,500 won threshold in daytime trading on Monday for the first time since the global financial crisis, triggering speculation authorities may have given up 1,500-won defense. "We are not 100 percent sure about intervention. But the dollar has retreated. It can be attributed to the easing in bond yields," said one trader on Tuesday. The dollar eased to 1,493.40 won as of 4:00 p.m. in Seoul. Volatility still has been topping peers. The won’s average daily swing widened to 14.24 won, the largest since the 2010 euro-area sovereign debt crisis, while intraday moves stretched to 24.82 won — the biggest since Korea introduced overnight foreign-exchange trading. Foreign investors are reacting more sensitively to Korea’s exposure to Gulf energy risks and surging oil prices. Brent crude jumped 42.3 percent from end-February to March 16, to $103.14 a barrel, while WTI surged 47.28 percent to $98.71. Compared with end-2025, Brent is up 69.5 percent and WTI 71.91 percent. Those terms-of-trade pressures are now feeding directly into Korean asset markets. Foreign investors sold a net 16.5 trillion won worth of Korean stocks in March through March 16, including 16.1 trillion won from the KOSPI alone, according to the same FSS data. Korea’s five-year sovereign CDS premium also widened to 28.9 basis points from 24.6 basis points at end-February. Only after the exchange rate broke above 1,500 won did the legislature move to advance the so-called “Triple Exchange Rate Stability Acts.” On Monday, the Tax Subcommittee of the Strategy and Finance Committee approved the package, which includes amendments to the Restriction of Special Taxation Act and the Special Tax for Rural Development Act. Having cleared the subcommittee, the bills are expected to go before the full committee on Tuesday and then to a plenary session on March 19. The measures were first proposed on Jan. 3 by Rep. Jung Tae-ho of the Democratic Party, after the finance ministry outlined the plan in December when the won slid toward crisis-era levels. They were further stalled by political wrangling over tax fairness and broader legislative disputes. The centerpiece of the package is an amendment to the Restriction of Special Taxation Act that would grant a 50 to 100 percent deduction on capital gains taxes for investments in domestic stocks made through Return to Korea Investment Accounts, or RIAs. The aim is to encourage capital repatriation and stem the outflow of won-denominated funds. The package also includes income deductions for investments in currency-hedging products and raises the exclusion rate for dividends received from overseas subsidiaries to as much as 100 percent. Lawmakers say the measures are designed to attract foreign currency holdings back onshore while promoting financial products that cushion exchange-rate volatility. Given the won’s weakening trend, economists remain skeptical about the effectiveness of the incentives. “Capital outflows from the National Pension Service and individual overseas investors exceeded $140 billion last year, surpassing the current account surplus of around $100 billion,” said Lee Seung-ho, a senior research fellow at the Korea Capital Market Institute. While acknowledging the need to attract capital back into domestic markets, he questioned whether the tax breaks would be sufficient to alter investor behavior. He noted that overseas equity investments already benefit from an annual tax exemption of up to 2.5 million won and that many retail investors operate on a relatively small scale, limiting the likely policy impact. Other KCMI researchers, including Kim Min-ki and Kang So-hyun, argue that the shift toward foreign assets reflects deeper fundamentals: stronger returns in global technology stocks, lower barriers to overseas investing and persistent expectations of further won depreciation. Until those conditions change, they say, the outflow trend is unlikely to reverse. Some in the market also warn that the legislation could send an unintended signal. “Currency-related tax support can itself be read by the market as a signal that the authorities expect the won to remain weak,” a foreign-exchange market source said on condition of anonymity. “If it is seen as defensive rather than confidence-building, it could have the opposite effect.” 2026-03-17 16:44:15

GULF CRISIS: Korean naval ability to answer Trump's Hormuz call in doubt SEOUL, March 17 (AJP) - U.S. President Donald Trump made pretty much clear that Washington expects South Korea to join escort operations in the Strait of Hormuz, but defense experts doubt the country's navy capabilities can meet the call. Iran’s Islamic Revolutionary Guard Corps has attacked at least 10 vessels, including tankers and tugboats, using missiles and surface drones, and threats to strike any attempting to pass the waterway off Iran coastline. A strategic chokepoint between Iran to the north and Oman to the south, the Strait of Hormuz is just 30 kilometers at its narrowest point. Much of the cargo that passes through it is bound for South Korea, Japan, China and India, which together account for roughly 70 percent of global output. With Tehran effectively treating the closure of the strait as a fait accompli, oil-producing nations and the global shipping industry have begun suspending operations or seeking alternative routes. The main threat to tankers and escorting warships comes from land-based anti-ship missiles and suicide drones, experts say. While much of Iran’s conventional naval and air assets, along with some missile bases, have reportedly been put out of action by successive U.S. and Israeli strikes, there is a broad consensus that not all launch sites have been eliminated. At sea, Iran’s forces are limited to small boats and unmanned surface vessels. Even if these assets attempt to lay mines or carry out surprise attacks, modern naval forces are capable of detecting and neutralizing such threats, experts say. But without neutralizing Iran’s dispersed coastal missile batteries and long-range drone platforms, simply reinforcing naval escort operations would leave U.S. and allied ships operating for weeks or even months under persistent aerial threats. “As long as land-based threats remain, maritime escort operations are structurally limited to a temporary fix, and inherently dangerous,” one analyst said. A South Korean naval officer, speaking on terms of anonymity, explained that fully ensuring the safety of tankers would require deployment of ground forces to secure Iranian-held islands near the strait and installation of air defense systems to block missile and drone launches. It would also require completely neutralizing land-based launch sites. “Even with such measures, missiles launched from deeper inland would remain a threat, meaning multiple brigades, or even division-level ground forces, along with layered air defense systems would be necessary,” he said. “Without addressing land-based threats, sending more escort ships is less about managing risk and more about dispersing it,” he said. Should Seoul respond to Trump’s request, the most readily available option is the Cheonghae Unit, currently operating in the Gulf of Aden on anti-piracy and escort missions. While the unit’s 4,000-ton-class destroyers are equipped with close-in weapon systems, surface-to-air missiles, and torpedoes, experts agree that they are not designed for the kind of high-intensity threat environment currently seen in the Strait of Hormuz. “In reality, the Cheonghae Unit can engage only a limited number of targets at once,” said Jeong Kyung-woon, a researcher at the Korea Association of Military Studies. “Given radar and system constraints, the unit lacks the means to effectively counter multiple incoming drones or missiles.” However, this picture might change if South Korea operates under U.S. command and control, being integrated into American intelligence networks and missile defense systems. Paik Seung-hoon, a researcher at the Middle East Institute of Hankuk University of Foreign Studies, said that in such a case, participation with just two or three ships could be feasible as part of a combined task force. “However, there’s a fundamental issue,” Paik said. “If South Korea operates under U.S. wartime operational control, it would be seen as endorsing and participating in the conflict against Iran.” “If, on the other hand, Seoul wants to carry out an independent mission, as it did in 2020, when it retained wartime operational control and focused on protecting Korean merchant vessels, it would need to deploy a separate fleet of around 10 ships, including Aegis destroyers, submarines, and mine countermeasure vessels,” he said. Sources say that, within military circles, there is a growing consensus that if South Korea is to deploy naval assets to the Strait of Hormuz, it would need to form a new task group centered on Aegis destroyers. Such a force would require not only close-in defense systems but also advanced air and missile defense capabilities to intercept Iranian threats, along with logistics and maintenance support for sustained operations far from home waters. Operational difficulties extend to sustainment. The naval officer said it takes three to four weeks for a 7,000-ton-class Aegis destroyer to reach the Strait of Hormuz from South Korea. Once deployed, ships typically require resupply every 15 days for fuel, food, and ammunition. “In near-war conditions, returning to port for resupply is virtually impossible,” he noted. “A fully self-sustaining expeditionary task group, with large supply ships enabling continuous operations at sea, would be necessary.” Caught between alliance pressure and operational limitations, Seoul faces a difficult dilemma: given the close defense relations, it cannot easily ignore Washington’s request, yet it also cannot readily commit to a mission that may exceed its capabilities. “The U.S. ultimately wants to shift some of the burden, not just financially, but in terms of responsibility,” Paik said. “We need to watch how the situation unfolds, but if deployment remains a possibility, it would be better to prepare accordingly rather than avoid it outright.” “At the same time, South Korea must clearly define the nature of its mission, including command structure and assigned roles, before making any decision,” he said. 2026-03-17 16:42:52

BTS Live D-4 : BTS comeback turns Seoul into citywide festival SEOUL, March 17 (AJP) - Seoul is transforming into a festive atmosphere for the BTS comeback. Various commemorative events including a drone show at Ttukseom Hangang Park, media facades, and music light shows will take place. BTS announced detailed programs for 'BTS THE CITY: ARIRANG SEOUL' (hereafter THE CITY SEOUL) through Weverse on March 16. THE CITY SEOUL is a citywide project that will unfold across the city from March 20 to April 19. On March 20, when BTS's fifth full-length album ARIRANG is released, media facades will begin at 7 p.m. at Sungnyemun Gate and N Seoul Tower. A drone light show will take place at Ttukseom Hangang Park for approximately 15 minutes starting at 8:30 p.m. A music light show will be held at Banpo Bridge Moonlight Rainbow Fountain on March 21-22. 2026-03-17 16:27:57

BTS Live D-4: Gwanghwamun transforming into a mega open-air stage SEOUL, March 17 (AJP) -Seoul is turning its historic heart into a carefully controlled arena as nearly 260,000 fans are expected to gather for BTS’s return concert at Gwanghwamun on March 21. At the center of the plan is a transformation of open city streets into a “stadium-style” venue. Thirty-one official entry gates—stretching from the west (W1–W15) to the east (E1–E16)—will funnel crowds into designated zones, preventing dangerous overcrowding in one of the capital’s busiest districts. Security begins early. From 7 a.m., every gate will be equipped with metal detectors to screen bags and block hazardous items. Even those who enter earlier will face additional handheld scanning—an uncommon level of scrutiny for a public concert, reflecting heightened global security concerns. Beyond the square, the city itself bends to the event. Major arteries including Sejong-daero will be shut for up to 33 hours, with nearby roads closing in phases throughout the day. Police will deploy 6,500 personnel across crowd control, traffic management and counterterrorism units. The result is a rare moment when a pop concert reshapes urban space—turning Gwanghwamun from a civic landmark into a tightly managed live venue, built not with walls, but with people, planning and precision. 2026-03-17 16:25:55

Activists rally in Seoul to oppose warship dispatch to Middle East SEOUL, March 17 (AJP) - Civic activists held a rally at Gwanghwamun in central Seoul on Tuesday to oppose the possible dispatch of warships to the Strait of Hormuz as well as the deployment of South Korean troops to the Middle East. They chanted with banners and stickers reading "no war" and "no deployment," urging an end to the escalating conflict in the Middle East, which began with U.S.-led airstrikes on Iran late last month. 2026-03-17 16:25:19

Hong Myung-bo’s South Korea to use Ivory Coast, Austria friendlies as final World Cup audition With the 2026 FIFA World Cup in North America about three months away, competition inside Hong Myung-bo’s South Korea squad is intensifying. Hong has repeatedly stressed that the final roster is not set, setting up what amounts to a last-round audition for players seeking a World Cup place. South Korea (No. 22 in the FIFA rankings) will play Ivory Coast (No. 37) at 11 p.m. March 28 (Korea time) at Stadium MK in Milton Keynes, England. The team then faces Austria (No. 24) at 3:45 a.m. April 1 at Ernst Happel Stadion in Vienna. The two-match European swing is South Korea’s final full-scale test before the World Cup roster is finalized. The opponents were chosen with group-stage preparation in mind: Ivory Coast as a tune-up for South Africa, South Korea’s third group opponent, and Austria as a stand-in for the winner of Europe’s playoff Group D, a potential first-match opponent. Group D currently includes Denmark, North Macedonia, the Czech Republic and Ireland, with the team that will be placed into Group A to be decided through European playoffs later this month. Even so, Hong said the door is not completely closed for players who miss this camp. At a news conference March 16 at Korea Football Park in Cheonan, he said, “The final roster hasn’t been decided right now. I want to pick the players who show the best form in May and take them to the World Cup,” adding, “If they show good form in April and May, they can come back into the national team.” The fiercest battle is at wingback, the role responsible for both attack and defense on the flanks in Hong’s three-back system. Hong has been testing the setup as part of World Cup preparations, using it since the East Asian Football Federation E-1 Championship last July and in every A-match window since: a 2-0 win over the United States and a 2-2 draw with Mexico in September, a 5-0 loss to Brazil and a 2-0 win over Paraguay in October, and a 1-0 win over Ghana in November. In attack, South Korea kept three defenders back; in defense, it dropped into a five-man back line and looked to counterattack. Among the 27 players called in, wingback options include Yang Hyun-jun (Celtic), Lee Tae-seok (Austria Vienna), Seol Young-woo (Crvena Zvezda), Jens Castrop (Borussia Moenchengladbach) and Kim Moon-hwan (Daejeon Hana Citizen). Lee Myung-jae, who had recently played as the team’s left wingback, was not selected because of injury. Yang is the standout returnee, back in the national team for the first time in about nine months since June. He has been in strong form for Celtic, scoring eight goals in 37 official matches this season. On March 15, he scored twice against Motherwell to lead a 3-1 league win. Yang’s appeal is versatility. A natural wide attacker, he has also played right wingback to meet his club’s tactical needs, pairing aggressive dribbling with improved defensive work. Hong called him an increasingly attractive option for a system that demands flexibility. “Yang Hyun-jun showed good things as a wingback under Celtic’s previous coaching staff,” Hong said. “His performance is much better than the last time he was called up. He’s scoring well, too.” Castrop’s role shift is another key storyline. Previously viewed mainly as a central midfielder for South Korea, he appears set to enter the wingback competition starting with this March window. He has started on both flanks as a wingback in Bundesliga matches for Borussia Moenchengladbach, with his work rate, physical play and willingness to join attacks seen as even more effective out wide. On using Castrop at wingback, Hong said, “Right now Castrop is playing wingback for his club. He isn’t playing full 90 minutes consistently, but he’s playing more than 60 minutes. He isn’t training as a central midfielder, so it’s a situation worth testing (him at wingback).” In midfield, injuries to established players are forcing broader experimentation in the two friendlies. Park Yong-woo (Al Ain) suffered a season-ending knee cruciate ligament injury, and Won Du-jae (Khor Fakkan) is out for the season with a shoulder injury. Key midfielder Hwang In-beom (Feyenoord) has also become uncertain to join the squad, increasing the urgency to find new combinations. Candidates for new midfield pairings include Hong Hyun-seok (Gent), recalled after about 16 months, and Park Jin-seop (Zhejiang FC), selected as a midfielder after previously being categorized as a defender. “We needed an attacking midfielder. Hong Hyun-seok can play central midfield and also as a wide attacker,” Hong said. “Park Jin-seop, after his transfer, has been playing as a defensive midfielder in a system that uses two midfielders. He should be able to adapt well to the national team’s tactics.” Kwon Hyuk-kyu (Karlsruhe) is also in the mix for the defensive midfield role. Hong pointed to the 191-centimeter player’s physical profile and defensive value, saying, “We don’t have many tall players on the national team. When we’re leading and the opponent tries long balls, we don’t have a player to deal with it. I expect that kind of defensive role from Kwon Hyuk-kyu.”* This article has been translated by AI. 2026-03-17 16:15:20

SK hynix eyes US ADR listing SEOUL, March 17 (AJP) - SK hynix is considering a U.S. stock-market listing in a bid to woo global investors, SK Group Chairman Chey Tae-won said on Monday. Choi, who is currently attending Nvidia's annual GTC conference in San Jose, told reporters, "We are reviewing a listing via American Depositary Receipts (ADRs) to expand the company's investor base." ADRs allow non-U.S. companies to trade their shares on U.S. stock exchanges through depositary banks rather than by listing shares directly, making it easier for investors to purchase foreign stocks. Global chipmakers such as Taiwan's TSMC, use ADRs to trade on the New York Stock Exchange and attract international investors. Chey's remarks appear to be part of efforts to raise SK hynix's profile among global investors, as the chipmaker's valuation remains relatively low despite its leading position in the high-bandwidth memory (HBM) market, a key component used in artificial intelligence and high-performance computing, compared with global rivals such as Micron. It is nothing new, as SK Hynix has previously said on several occasions that it is exploring ways to enhance corporate value including a potential U.S. listing. Chey warned of sharp swings in DRAM prices due to surging AI demand and pledged that the company will soon come up with measures to stabilize them. At this year's GTC, which brings together industry leaders and developers to discuss the latest technological trends and runs until Thursday, SK hynix unveiled the world's first 16-layer stack of its sixth-generation HBM, known as HBM4, along with other next-generation memory solutions, showcasing its partnership with Nvidia. Nvidia CEO Jensen Huang visited SK Hynix's booth while discussing cooperation with Chey, under their so-called "HBM alliance." 2026-03-17 16:08:55

Korean Banks Tighten Dollar Liquidity Controls as Won Nears 1,500 per Dollar Geopolitical risks tied to the Middle East have pushed the won-dollar exchange rate to hover around 1,500 won per dollar, prompting South Korean banks to tighten management of foreign-currency funding. Foreign-currency liquidity indicators are not yet at dangerous levels, but banks are raising their guard because further moves in the exchange rate could quickly affect capital adequacy. According to the financial sector on Monday, the foreign-currency liquidity coverage ratio, or LCR, at the five major banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — stood at 142.73% to 203.55% as of the end of February. All five were well above the regulatory minimum of 80%. The foreign-currency LCR measures how much high-quality liquid foreign-currency assets a bank holds to meet expected net outflows over the next 30 days. A higher ratio indicates more stable foreign-currency liquidity. Even with ample room to manage foreign-currency assets, banks are reacting quickly as the won has seen unusually large swings, including a break above the psychologically important 1,500 level. In Seoul trading Monday, the won ended daytime trading at 1,493.6 per dollar, down 3.9 won from the previous session. The day before, it rose above 1,500 intraday for the first time in 17 years. Market participants broadly expect volatility to increase further depending on whether the war drags on and where international oil prices head. Sustained upward pressure on the exchange rate could weaken banks’ capital positions. A weaker won raises the won value of foreign-currency assets, increasing risk-weighted assets and putting downward pressure on the common equity Tier 1 ratio, or CET1. The industry generally estimates that a 10-won rise in the exchange rate lowers the CET1 ratio by about 0.02 percentage points. Financial groups are strengthening internal checks as volatility increases the burden on balance-sheet management. KB Financial Group said it is using hedges to minimize foreign-exchange translation gains and losses excluding investment profit and loss, and is managing exposure at the group level by considering each affiliate’s FX position. KB Kookmin Bank introduced a return on risk-weighted assets, or RoRWA, metric to help manage capital adequacy indicators such as CET1 and the BIS capital ratio. Shinhan Financial Group said it treats a rise of 2.5% from the previous day, or more than 5% within 10 days, as a crisis and has prepared response measures by threshold level. Hana Financial Group and Woori Financial Group are also operating emergency response systems to monitor foreign-currency liquidity and money-market conditions. “After the won-dollar rate moved above 1,500 and volatility increased, it will be hard to predict the market for some time,” a financial industry official said. “Groups will likely continue stepping up risk checks and preparing for the possibility of rising corporate funding demand.” 2026-03-17 16:06:00

KB Kookmin, Shinhan to Launch Online Refinancing for Sole Proprietor Credit Loans Online refinancing for sole proprietors’ credit loans is now allowed, and competition among banks is picking up.  According to the financial industry on the 17th, KB Kookmin Bank and Shinhan Bank will begin offering refinancing services for sole proprietors’ credit loans starting on the 18th.  At KB Kookmin Bank, the maximum loan amount eligible for refinancing is 300 million won through branches and 200 million won through non-face-to-face channels. All customers who refinance into KB Kookmin through non-face-to-face channels will receive a refinancing-only preferential rate discount of up to 0.3 percentage points. The service will be available at all KB Kookmin branches and via KB Star Banking, KB Business Star Banking and the mobile web. It will also be offered through major loan comparison platforms including Kakao Pay, Toss and Naver Pay. To mark the launch, KB Kookmin will run an event through May 15. Customers who move their loans to KB Kookmin via the non-face-to-face loan transfer service can receive cash support of up to 100,000 won from the interest paid in the first month. Shinhan Bank will also offer refinancing for sole proprietors’ credit loans starting on the 18th through its Shinhan SOL Bank app and loan comparison platforms.  Eligible applicants are sole proprietors age 19 or older with a business registration certificate, and the program covers working-capital credit loans of up to 100 million won. Some products, including loans tied to real estate rental businesses, are excluded. Shinhan said it plans to allow “increased refinancing,” letting borrowers raise their loan limit when they need additional funds while paying off an existing loan. Banks expect the expanded service to intensify competition in the sole proprietor finance market. The Financial Services Commission, based on past data, expects more than 1 trillion won in loans to move to more favorable terms through this refinancing program. A financial industry official said, “As loan comparison services expand, rate competition is bound to become more intense,” adding that companies are likely to step up customer promotions, including related events. * This article has been translated by AI. 2026-03-17 15:21:00

BTS Live D-4 - Latest from Gwanghwamun SEOUL, March 17 (AJP) - With BTS’s comeback performance four days away, large-scale stage installation is underway at Gwanghwamun Square, where equipment and structures are being assembled across multiple sections of the site. Heavy machinery and staging crews were seen operating near the main installation area, while nearby sidewalks and elevated vantage points filled with onlookers photographing and recording the preparations. Some visitors were observed using professional cameras and mobile devices to document the setup process as anticipation builds ahead of the event. Moreover, crowds have begun gathering at vantage points overlooking Gwanghwamun Square, where the stage is currently being installed. At the rooftop of the National Museum of Korean Contemporary History, which offers a clear view of the site, people were seen taking photos and recording videos as preparations for the concert continued. Crowds are gathering around Gwanghwamun Square to photograph and document the comeback story from stage construction phase, with some livestreaming preparations using DSLRs and action cameras. Rooftop vantage points overlooking the venue are filling up as fans treat the event as a once-in-a-lifetime moment. The influx is also being felt across nearby commercial districts. Currency exchange operators in Myeong-dong report a noticeable uptick in Japanese and Taiwanese tourists over the past week, while restaurants and takeaway chains are preparing for what some describe as an “unimaginable” surge in demand. Seoul city officials have launched a multilingual live information page covering transport changes, safety rules and venue logistics, signaling a full-scale readiness effort as the concert approaches. 2026-03-17 15:18:37