Middle East War Ripples Through Asian Manufacturing as Costs Surge Despite Stockpiling The fallout from the war in the Middle East is spreading across Asian manufacturing. Companies have boosted output for now by building inventories ahead of possible supply disruptions. But a sharp rise in energy and raw material prices is quickly increasing cost pressures. S&P Global said on the 4th that last month’s purchasing managers’ index, a gauge of business conditions, showed manufacturing output generally expanded in major Asian economies. PMI readings for Taiwan, Japan and South Korea all rose in April, reflecting front-loaded purchasing as firms prepared for delivery delays and further price increases. S&P Global cited AI-related demand in Japan and Taiwan, and new product launches in South Korea, as factors supporting production and sales. Still, the pickup is difficult to read as a broad recovery. The data also reflect inventory building by companies and their customers as worries grow over logistics disruptions and higher prices if the war drags on. The Middle East is a key supplier of crude oil, gas and fertilizer for Asia. Since fighting began in late February, prices for energy and other raw materials have climbed, raising costs for Asian manufacturers and weighing on sentiment. Uncertainty is also rising over how long the conflict will last. “This war has brought the biggest supply-chain disruption since the COVID pandemic,” said Annabel Fiddes of S&P Global Market Intelligence. Cost pressures were reported across the region. South Korean manufacturers said both input costs and selling prices jumped to record levels. In Japan, Indonesia and Vietnam, higher raw material prices pushed input costs to their highest levels in years. The hit has been more direct in some emerging markets. Output fell in Indonesia and Vietnam even as costs surged. Vietnam’s new orders declined in April for the first time in eight months. “If prices and supply conditions do not improve quickly, production is also likely to slow,” said Andrew Harker of S&P Global Market Intelligence. India was not immune. Its manufacturing sector continued to improve modestly, but the pace was the second-slowest in about four years, indicating that rising costs are constraining the recovery. Analysts said output is being supported by stockpiling demand, but other countries could face renewed slowing once that effect fades. Usamah Bhatti, an economist at S&P Global Market Intelligence, said how sales and production move after inventory building weakens will be a key variable for manufacturing conditions in the coming months.* This article has been translated by AI. 2026-05-04 16:03:18

GM Korea April Sales Rise 14.7% to 47,760 Vehicles on Strong Exports GM Korea said Sunday it sold 47,760 vehicles in April, up 14.7% from a year earlier. Domestic sales totaled 811 vehicles, while exports reached 46,949. The company said April marked the third time this year it posted monthly sales above 40,000 vehicles, following January and March. Exports of the Chevrolet Trax Crossover, including derivative models, rose 12.7% from a year earlier to 31,239 units. Exports of the Chevrolet Trailblazer, including derivative models, increased 24.7% to 15,710 units. GM Korea said cumulative sales of the two models have topped 2 million since launch, helping position the operation as a global hub for small SUVs under the Chevrolet brand. The company said it handles the full process for the models — planning, design, engineering and production. Last year, the two models sold a combined 422,792 units in the U.S., accounting for about 43% of the small-SUV segment, it said. Gustavo Colossi, vice president of sales, service and marketing at GM Korea, said the Trax Crossover and Trailblazer are “continuing meaningful results in global markets,” citing their competitiveness and the 2 million cumulative-sales milestone. He said the company will keep working to provide a satisfactory service experience as customers at home and abroad show trust in GM’s products and brand. GM Korea said it will offer various financing programs and provide cash and fuel-cost support in May for customers who buy the Trax Crossover, Trailblazer or the American premium pickup truck Sierra. Chevrolet also said it will run a “Chevrolet Homecoming Festival” for Family Month. Customers who own older Chevrolet models — Spark, Matiz, Damas or Labo — and buy a Trax Crossover or Trailblazer will receive 1 million won in cash support. The company will also provide 300,000 won in cash to customers with a minor or a family member age 65 or older, to small-car owners, and to customers who have owned an aging diesel vehicle for at least five years.* This article has been translated by AI. 2026-05-04 16:00:20

Dongin Law Firm to Hold India Market Entry Strategy Seminar in Seoul Dongin Law Firm said it will hold a practical seminar to support South Korean companies seeking to enter the Indian market, as interest increasingly moves from preliminary reviews to actual investment. The firm said the program will focus on contract structures and partner design. Dongin said May 4 it will host the “India Business Practical Guide” seminar May 13 and 14 at its main conference room in Seocho-dong, Seoul. The program was planned by attorney Moon Hae-jin (Judicial Research and Training Institute class 39). Moon said companies’ India strategies are increasingly leading to investment and the establishment of joint ventures. “We are seeing more moves, especially among manufacturers (autos and batteries), consumer goods companies represented by K-beauty, and tech firms, to pursue supply-chain diversification and talent recruitment at the same time,” Moon said. Moon said early-stage contract design is a key variable in India. “In JVs or partnerships, gaps between contractual rights and actual operating control often block decision-making or make it difficult to exit,” Moon said. He added that because administrative enforcement and on-the-ground practices can matter more than written law, companies may face unexpected delays and costs in permitting, labor and compliance. The seminar is designed to offer practical responses rather than a general market overview, Moon said. “We will cover investment approaches, JV structures and key contract clauses at a level participants can apply immediately,” he said, adding that the program will present a model in which a Korean law firm leads and manages cooperation with local counsel. Dongin said it will invite a partner attorney from the Indian law firm White & Brief to explain the local regulatory environment and partnership structures, while Korean attorneys review risks from the perspective of Korean companies. The seminar is aimed at companies considering entry into India, as well as legal and strategy staff at manufacturers and consumer goods companies preparing to expand trade or build local supply chains. Each session will be limited to 20 participants. “India is a market where opportunity and risk exist at the same time,” Moon said. “The goal of this seminar is to create a link that mid-sized companies, which lack the local infrastructure of large conglomerates, can rely on when entering the market.” Dongin said registration and detailed schedules are available on its website, and inquiries can be made by email or phone.* This article has been translated by AI. 2026-05-04 15:53:19

Lotte Chilsung Beverage Q1 Operating Profit Jumps 91% on Milkis, Saero Growth Lotte Chilsung Beverage said its first-quarter operating profit surged 91% from a year earlier, as beverage exports and overseas subsidiaries expanded despite weak domestic demand and pressure from a strong exchange rate. Growth in soju and ready-to-drink products also supported results in its liquor business. The company said Monday that first-quarter operating profit on a consolidated basis totaled 47.8 billion won, up 91% from the same period a year earlier. Revenue rose 4.6% to 952.5 billion won. In beverages, revenue increased 1.5% to 414.2 billion won, while operating profit climbed 62% to 21.1 billion won. The company cited a tougher external environment and higher business costs, but said sales rose across most major categories, including carbonated drinks, juice, coffee, energy drinks, sparkling water and sports drinks. Energy drink sales rose 8.7% from a year earlier, and sports drink sales increased 11.5%. Beverage exports also grew. Sales of products including Milkis, Let’s Be and aloe juice increased in more than 50 countries, including the United States, Russia, Europe and Southeast Asia, lifting export performance 13.4% from a year earlier. In the liquor business, revenue rose 0.7% to 194.2 billion won and operating profit increased 9.6% to 15.6 billion won. The company said consumer sentiment weakened amid Middle East-driven geopolitical risks, high inflation and shifting drinking trends, but soju, cheongju and RTD products supported performance. Soju sales rose 2.6%, led by Saero, which underwent its first renewal since launch. Cheongju sales increased 2.7% as demand for smaller-size alcoholic beverages grew, with Subok One Cup driving gains. RTD sales jumped 74.4% on rising interest in fruit-flavored sparkling alcoholic drinks and an expanded lineup. Growth was also strong in the global segment, which includes overseas subsidiaries in the Philippines, Pakistan and Myanmar. First-quarter revenue in the segment rose 11.1% to 378.3 billion won, and operating profit increased by 13.7 billion won to 14.3 billion won. The global segment’s share of total revenue expanded to about 46%. Lotte Chilsung Beverage said it will continue focusing this year on improving profitability at its overseas subsidiaries. It also plans to expand production capacity to strengthen competitiveness in fast-growing emerging markets and meet rising global demand for products including Milkis, Let’s Be, Saero and Soonhari. A company official said it will keep prioritizing profitability to raise corporate value and build a foundation for sustainable growth. Separately, Chief Executive Officer Park Yoon-ki said at the company’s 59th annual shareholders meeting in March that it would pursue management efficiency, restructure its domestic business portfolio and strengthen overseas operations to meet its business plan, while moving ahead with mid- to long-term strategies for future growth.* This article has been translated by AI. 2026-05-04 15:52:10

KGM April Sales Rise 6.5% on Strong Exports, Led by Musso KG Mobility, or KGM, said Monday its April sales totaled 9,512 vehicles, up 6.5% from a year earlier, as exports climbed. Domestic sales fell 4.6% to 3,382 vehicles, while exports rose 13.8% to 6,130. KGM said Musso export sales increased, pushing monthly exports above 6,000 for the first time in four months since December, when exports reached 7,000 vehicles. Cumulative sales through April rose 4.7% from the same period a year earlier. By model, the Musso, which began its global market launch last month, sold 1,336 vehicles, and the Torres EVX sold 1,830, helping drive the increase. KGM said it is stepping up efforts to expand volumes by building on export momentum and strengthening its response in the domestic market. On April 28 and 29, KGM invited overseas dealers and reporters from 31 countries to Turkiye, its largest export market, for the Musso global launch and test-drive events. In Germany, it held a launch and test-drive event for the Actyon Hybrid in early April. In March, KGM Chairman Kwak Jae-sun met with its Vietnam KD partner, Kim Long Motors, to inspect production sites and discuss detailed cooperation plans. In South Korea, KGM said it is conducting marketing activities to strengthen brand communication and expand customer engagement, including hosting “KGM Tuning Festival Season 2” and serving as an official sponsor of the “2026 UCI MTB World Series.” A KGM official said exports are recovering and that April sales rose 6.5% from a year earlier, with cumulative sales up 4.7%. The official said the Musso has been well received in South Korea and at last month’s global launch events, and KGM plans to expand rollouts by country and deepen cooperation with local dealers to further increase sales.* This article has been translated by AI. 2026-05-04 15:51:17

KOSPI Jumps 5.1% to Record Close Near 7,000 on Foreign, Institutional Buying The KOSPI surged Monday on heavy buying by foreign investors and institutions, climbing to just shy of the 7,000 mark and posting a record closing high. The benchmark jumped more than 5% to finish above 6,900. According to the Korea Exchange, the KOSPI closed up 338.12 points, or 5.12%, at 6,936.99. It opened at 6,782.93, up 184.06 points, or 2.79%, and extended gains as foreign and institutional demand strengthened. The index also reset an intraday record. It moved above 6,800 at about 10:16 a.m. and later broke through 6,900 at about 12:57 p.m. as buying accelerated. Lee Kyung-min, an analyst at Daishin Securities, said the KOSPI has continued to rally as stronger earnings momentum and what he called attractive undervaluation have come into focus. He added that local stocks reflected gains in U.S. markets during the May 1 holiday, while foreign net buying expanded ahead of the May 5 holiday, adding to the market’s upward momentum. In the main board market, foreigners were net buyers of 3.9623 trillion won and institutions bought a net 2.5569 trillion won. Retail investors sold a net 6.3364 trillion won. Among top market-cap stocks, Samsung Electronics rose 5.44%, SK hynix gained 12.52%, SK Square jumped 17.84%, LG Energy Solution added 2.50%, Hyundai Motor rose 1.51%, Doosan Enerbility gained 0.08% and Hanwha Aerospace climbed 3.39%. HD Hyundai Heavy Industries fell 0.73%. SK hynix traded as high as 1.45 million won during the session, setting a record. Samsung Electronics, which had slipped on profit-taking after touching 230,000 won on April 30, rebounded in a single session to as high as 232,500 won. The KOSDAQ closed up 21.39 points, or 1.79%, at 1,213.74 after opening at 1,212.28, up 19.93 points, or 1.67%. In the KOSDAQ market, foreigners bought a net 613.9 billion won. Retail investors and institutions sold a net 520.5 billion won and 76.1 billion won, respectively. Among KOSDAQ heavyweights, EcoPro rose 1.90%, EcoPro BM gained 4.61%, Alteogen added 1.22%, Rainbow Robotics rose 3.16%, Lino Industrial gained 1.26%, Kolon TissueGene climbed 2.75% and HLB added 0.16%. Samchundang Pharm fell 1.44% and ABL Bio slipped 1.71%.* This article has been translated by AI. 2026-05-04 15:48:19

South Korea legalizes credit card issuance for minors SEOUL, May 04 (AJP) - South Korea officially authorized the issuance of credit cards to minors aged 12 and older on Monday, institutionalizing a digital payment system that reflects the country’s rapid transition toward a cashless economy. The measure, which took effect May 4, replaces a temporary pilot program with a permanent legal framework under the Specialized Credit Financial Business Act. The regulatory shift aims to eliminate the widespread but technically prohibited practice of children using their parents’ credit cards, so-called "Um-ka (mother's card)" for daily purchases. Financial authorities expect the formalization of youth spending to improve transaction safety, simplify loss-reporting procedures, and foster early financial literacy under parental oversight. Financial Services Commission (FSC) Chairman Lee Eok-weon oversaw the implementation of amendments designed to increase the predictability of financial administration. The commission stated that the change provides a legal basis for "family cards" while expanding the business scope for credit finance companies. Under the new rules, monthly credit limits for minors are set at a default of 100,000 won ($68). Parents may increase this threshold to 500,000 won if they provide explicit consent during the application process. Usage is restricted to essential sectors including convenience stores, stationery shops, cram schools, and hospitals. The cards are strictly blocked at nightlife venues and gambling establishments to ensure funds are used for daily necessities and educational purposes. The update also lowered the age floor for debit card issuance to 7 years old, down from 12. While debit cards were not previously restricted by law, South Korean banks had synchronized issuance with the minimum age for deferred-payment transportation features. To address rising public transit costs, the monthly limit for these deferred transportation payments was doubled to 100,000 won. This allows elementary school students to pay for commutes digitally as cash usage continues to decline across South Korea. "Institutionalizing these services provides higher predictability for administrative actions and expands the business scope for credit finance companies," The FSC head said. The commission also modernized merchant registration by allowing non-face-to-face verification through mobile applications. This replaces the previous requirement for recruiters to visit business sites in person to confirm that a merchant is actively operating. South Korea’s move mirrors international trends such as the "Credit Piggybank" concept in the United States, where some banks allow minors to use cards to build independent credit histories. Unlike the American model, which focuses on building individual scores, the South Korean system bills expenditures directly to the parents’ account and credit records. The FSC intends to continue identifying regulatory tasks that reflect on-site demand to improve convenience for both small business owners and financial consumers. 2026-05-04 15:46:28

Xi Urges Chinese Youth to Contribute to Development as ‘Lying Flat’ Trend Spreads Chinese President Xi Jinping urged the country’s young people to play a bigger role in national development, saying it is an ideal time for them to contribute. The remarks were widely seen as a warning amid the spread of the so-called “tangping,” or “lying flat,” attitude among youth as the economy slows and job prospects weaken. According to the Communist Party newspaper People’s Daily, Xi said on May 3, a day ahead of China’s May 4 Youth Day, that this year marks the start of the 15th five-year plan and is “an important time” for young people to contribute to the country’s development. He called on youth to “hold lofty ideals,” work diligently, inspire one another and align personal goals with national development, seeking “new achievements” in their respective fields, the report said. Xi delivered the message in a reply to a letter from recipients of the “China Youth May 4 Medal” and the “New Era Youth Vanguard Award.” He praised the awardees for not forgetting their responsibilities to the Communist Party and for dedicating themselves on the front lines of grassroots work, including scientific and technological innovation, rural revitalization, social service and border defense. Xi said their efforts showed the confidence, self-reliance and positive spirit of Chinese youth in the new era. The message drew attention as “lying flat” has gained traction among young Chinese. The term, which spread on Chinese social media around 2021 during the COVID-19 period, refers to young people worn down by intense competition and employment difficulties who lose motivation, do only minimal work and adopt a passive lifestyle. China’s Ministry of State Security said on April 28 on its official WeChat account that the spread of “lying flat” was fueled by agitation from some influencers allegedly backed by anti-China overseas forces, and urged young people to “keep a clear mind.” * This article has been translated by AI. 2026-05-04 15:42:47

Special Prosecutor Says It Found Signs Military Counterintelligence Prepared for Martial Law The second comprehensive special prosecutor team, led by Special Prosecutor Kwon Chang-young, said it has confirmed indications that the military’s Defense Counterintelligence Command prepared for emergency martial law and is continuing its investigation. The probe has also triggered a dispute with prosecutors over access to records and raised internal management concerns, adding to tensions around the team’s operations. Assistant Special Prosecutor Kim Ji-mi said at a regular briefing Monday at the team’s office in Gwacheon that questioning of command officials confirmed signs that preparations for martial law began in the first half of 2024. Her remarks suggest the possibility that what an earlier insurrection special prosecutor described as suspected “advance planning” may have progressed into concrete preparations. The special prosecutor team is also clashing with the Supreme Prosecutors’ Office over securing materials related to emergency martial law. The team said the office refused to submit records needed for the investigation and that it asked the Ministry of Justice to discipline the acting prosecutor general and senior officials at the Supreme Prosecutors’ Office. The Supreme Prosecutors’ Office, however, was reported to argue that the materials are inspection records that are difficult to provide voluntarily and that handing them over without a warrant could violate the law. The dispute highlights differing views on the scope of cooperation in the investigation. Separately, the special prosecutor team faced criticism after it became known that one of its investigators posted some investigative material and personal reflections on social media. The team said it disciplined the investigator with a one-month pay cut. The team again stressed the need to follow security rules in social media use but said it has no plans for additional steps such as a full review. The comprehensive special prosecutor team said it is focusing its efforts on determining how the martial law preparations unfolded and the roles of those involved, and that the nature of the case could become clearer as the investigation proceeds. 2026-05-04 15:39:16

Raon Savings Bank Exits Regulatory Corrective Action; KBI’s SangSangIn Deal Delayed Some savings banks in South Korea are emerging from prompt corrective action, easing broader concerns about the sector’s financial health, but restructuring is moving at different speeds by institution. Raon Savings Bank, acquired by KBI Group, has exited a management improvement order after key indicators improved. KBI’s planned acquisition of SangSangIn Savings Bank, however, remains unfinished despite agreement on the sale price, with the share-transfer date pushed back again as post-deal capital plans are reviewed. The Financial Services Commission said it notified Raon Savings Bank and Anguk Savings Bank on April 30 that their management improvement recommendations had been lifted. The two banks had been under the measures since December 2024, exiting about 16 months later. Raon Savings Bank is a regional lender acquired in July last year by KBI Kukin Industry, an affiliate of KBI Group. At the time, financial authorities described the deal as the first case showing market-led restructuring working for a regional savings bank. Since then, Raon’s key soundness indicators have improved: its delinquency ratio fell to 10.42% at the end of last year from 19.03% in 2024, and its liquidity ratio rose to 150% from 109%. By contrast, KBI Group’s additional push to acquire SangSangIn Savings Bank has yet to be completed. SangSangIn agreed to sell about 1.35 million shares of the bank for 110.7 billion won, but the closing date—initially set for the end of March—was postponed to the end of April and has now been extended again to Aug. 31. The transaction has not entered the formal stage of regulators’ review of KBI Group’s eligibility as a major shareholder. The group is believed to be continuing pre-consultations with financial authorities on the deal structure and capital-raising plans before applying for approval of the ownership change. While the sale price is said to have been agreed, the need for additional funding after the acquisition—aimed at improving soundness indicators and boosting capital—has been cited as a key variable. Acquiring a troubled savings bank does not end with buying shares, as buyers typically must follow with cleanup of bad assets, improvements in key indicators and stronger capital buffers. SangSangIn Savings Bank’s burden remains heavy: as of the end of last year, its delinquency ratio stood at 16.9%, among the highest for savings banks with more than 1 trillion won in total assets. Its ratio of substandard-or-worse loans was 22.53%, the highest in the industry. A financial industry official said KBI Group may not feel strong pressure to rush the SangSangIn deal after already acquiring Raon. The official added that because SangSangIn’s delinquency and substandard-loan ratios are high, the burden of normalizing the bank after an acquisition would likely be heavier than it was for Raon.* This article has been translated by AI. 2026-05-04 15:28:15