OPINION: US cybersecurity requirements emerge as key hurdle for South Korean defense firms SEOUL, May 6 (AJP) - Under the U.S. Cybersecurity Maturity Model Certification (CMMC), which took effect in November last year and requires contractors to verify their cybersecurity practices to protect sensitive information, companies cannot enter the U.S. defense market without compliance. The CMMC, enforced by the U.S. Department of Defense (DoD), applies not only to prime contractors that deliver directly to the Pentagon, but also to subcontractors supplying parts and raw materials. As South Korea aims to expand defense exports to the U.S. and become one of the world's top four arms exporters, CMMC has become a critical requirement. CMMC has three levels, based on the sensitivity of Federal Contract Information (FCI) and Controlled Unclassified Information (CUI). Most defense firms may need to prepare for Level 2, which requires meeting all 110 security requirements outlined in NIST SP 800-171. Companies handling critical controlled unclassified information (CUI) must also undergo an audit by a certified third-party assessor organization (C3PAO) every three years. Preparation typically takes 12 to 18 months, and total costs - including infrastructure, consulting, and certification - can range from 260 million won (US$177,000) to 400 million won per company. The burden falls largely on smaller suppliers. A recent survey by the Korea Defense Industry Association (KDIA) found that nearly all small and mid-sized companies lacked dedicated security staff. The most commonly cited challenges were cost, as well as a lack of information and training. About one-third said they had no plans to invest in CMMC certification, despite their interest in entering the U.S. market. Technical barriers are just as daunting. Level 2 requires encryption standards validated under U.S. rules (FIPS 140-2/140-3), and South Korea's own equivalent certification is not recognized because no mutual recognition agreement exists between the two countries. Requirements like multi-factor authentication can force companies to overhaul their entire security infrastructure. Of the 110 requirements, 61 must be fully met before a contract is signed, with no exceptions or grace periods allowed. To make matters more difficult, South Korea has no accredited C3PAO, meaning companies must rely on foreign firms, raising costs and concerns over language barriers and potential technology leakage. In this context, the legal grounds for support should go beyond assistance for system-building and consulting costs. Revisions are needed to explicitly include certifications and qualifications required for defense exports as a basis for subsidies. Existing security inspections should also be restructured to align with CMMC requirements, allowing companies to meet both without duplicating efforts. Firms that complete CMMC self-assessments or obtain certification should also be eligible for exemptions from overlapping inspection requirements. Building a domestic CMMC ecosystem is equally important. South Korea needs its own accredited C3PAO, and the government should actively support efforts to establish one. At the same time, authorities should engage directly with the DoD to address key sticking points, particularly rules around foreign ownership and influence, and requirements for high-level background checks. More funding is needed, as the current 800 million won for defense technology protection systems and 750 million won for consulting support for small defense firms are not enough to meet demand. Budgets for individual programs should be increased, and a dedicated fund could also be established to manage resources more effectively. Cost structures also need reform, as security spending is currently treated as an indirect cost, making it difficult to plan for and discouraging proactive investment. CMMC is not something companies can adopt quickly, but it cannot be avoided for those seeking to stay in the U.S. market. Competing arms exporters are already treating CMMC readiness as a national priority and supporting their companies systematically. Without coordinated action, South Korean suppliers risk losing their position to global competitors. An integrated approach involving the government, local authorities, and relevant industries is needed, and a cross-ministry consultative body should be established and begin work without delay. The next decade for South Korea's defense industry will depend on how it gets through this challenge. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-05-06 10:03:11

U.S., Gulf Allies Renew Push for U.N. Resolution to Keep Strait of Hormuz Open The United States and its Gulf allies are renewing a push for a U.N. Security Council resolution demanding that Iran keep the Strait of Hormuz open, warning that additional steps, including sanctions, could be considered if Tehran does not comply. The U.S. State Department said Secretary of State Marco Rubio issued a statement on May 5 (local time) formally proposing the resolution to safeguard freedom of navigation through the strait. The draft was prepared by the United States with Bahrain and Gulf regional allies Saudi Arabia, the United Arab Emirates, Kuwait and Qatar. It calls on Iran to halt attacks on vessels, stop laying mines and cease collecting transit fees. It also demands that Iran disclose the locations of mines it has placed, cooperate in mine removal and work to establish humanitarian corridors. The new text takes a more cautious approach than a measure that failed last month. Reuters and other outlets reported the draft, mindful of Russia and China, removes language that would explicitly authorize military action. It retains the framework of Chapter VII of the U.N. Charter, leaving a basis for enforcement measures that could include sanctions and military steps. The resolution condemns alleged recent ceasefire violations by Iran and describes any attempt to close or obstruct navigation through the strait, or to impose transit fees, as a threat to international peace and security. It says disruptions from a blockade are affecting shipments of essential goods, including relief supplies and fertilizer, and urges Iran to cooperate in creating routes for humanitarian assistance. Under the draft, the U.N. secretary-general would report to the Security Council within 30 days on whether Iran is complying. If Iran fails to meet the demands, the council would reconvene to consider additional measures, including sanctions. The United States aims to circulate the text by May 8 and seek a vote next week. At a White House briefing, Rubio said, “Everyone doesn’t want this to be blocked by a veto again, and we adjusted the wording slightly.” He added, “I don’t know if we can avoid a veto,” and said he believes the effort is “a real test of whether the U.N. is actually a functioning body.” Reuters also reported the United States has proposed creating a multinational maritime coalition called the Maritime Freedom Construct (MFC). The MFC would work with a separate maritime mission led by the United Kingdom and France, aiming to fully resume transit through the Strait of Hormuz once conditions stabilize. About 30 countries are reported to be under discussion for participation in that maritime mission.* This article has been translated by AI. 2026-05-06 09:56:26

Bank of Korea Warns May Inflation Could Accelerate on Oil Prices, Base Effects The Bank of Korea said May consumer inflation is likely to pick up further as petroleum product prices stay elevated and base effects from agricultural, livestock and fisheries items add upward pressure. Senior Deputy Gov. Yoo Sang-dae said at an inflation review meeting Tuesday at the central bank’s headquarters in Jung-gu, Seoul, that “May prices will rise more as petroleum product prices remain high and base effects from agricultural, livestock and fisheries prices are added.” The National Data Center said the consumer price index in April rose 2.6% from a year earlier, the biggest increase in 1 year and 9 months. Petroleum products jumped 21.9% as global oil prices climbed, while agricultural, livestock and fisheries products fell 0.5% as shipments of major farm goods increased. Yoo said April inflation accelerated from the previous month as petroleum product prices surged on a sharp rise in global oil prices. He added that government measures to stabilize prices — including a cap on maximum oil prices and cuts to fuel taxes — were estimated to have cushioned much of the shock. He said the inflation outlook remains highly uncertain, citing developments in the Middle East, the resulting path of oil prices and the risk of spillover beyond petroleum products. “We will stay vigilant and closely monitor price conditions,” he said.* This article has been translated by AI. 2026-05-06 09:49:14

Wine Switch Allegation at Michelin 3-Star Mosu Renews Scrutiny of Sommeliers A wine-switching incident at Michelin three-star fine-dining restaurant Mosu, run by chef Ahn Sung-jae, has prompted renewed attention to past controversies involving sommeliers and high-end restaurants in South Korea’s fine-dining scene. In recent days, online communities and social media have circulated a post criticizing what it called ongoing ethical lapses by sommeliers, while listing earlier cases involving wine service and alleged misconduct. The post cited a case at two-star Kwon Sooksoo, saying a sommelier was found guilty in a first trial and fined 7 million won for allegedly stealing 106 bottles of wine from the restaurant. It said the incident surfaced after the person left the job, claiming they were opening their own wine bar. It also alleged that at Vampire Weekend, a sommelier drank customers’ expensive corkage wines out of sight, posted about it on social media and was caught, after which the business changed its name. The post further claimed that at two-star Jungsik, a sommelier poured about 100 milliliters from a customer’s corkage wine worth about 900,000 won, saying it was “to taste later.” It added that Mosu — described as previously three-star and currently two-star — was exposed for deceiving customers. The writer said it was “embarrassing” that allegations about Seoul fine dining were being revealed at a time when Korean food is drawing global attention, and questioned whether the Mosu case could lead to change. Commenters said the incidents showed that basic trust was not being upheld even at upscale restaurants. Some compared it to delivery workers skimming food, while others said the controversy would fuel ridicule that harms professionals who take pride in their work. Separately, Mosu’s Kakao Map page drew a wave of hostile comments. Reviews included remarks urging the restaurant to change its name, accusations that YouTube comments were being deleted, and criticism of the alleged wine switching. One commenter wrote that the issue could have ended quickly with a proper apology video or penalties for the sommelier, and expressed frustration that it was being dragged out. * This article has been translated by AI. 2026-05-06 09:48:16

Stella Artois Launches 'Taste Worth More' Campaign Highlighting Perfect Serve Belgian beer brand Stella Artois is rolling out a marketing push that puts taste and quality front and center. OB Beer, which distributes Stella Artois in South Korea, said Tuesday the brand has launched a new campaign, “Taste Worth More,” aimed at highlighting a top-tier beer-drinking experience. The campaign expands the brand experience to the full process of completing a single pour. The ads focus on the brand’s signature “chalice” glass and visually lay out a “five-step serving ritual,” including how the beer is poured, the height of the foam and the order in which the glass is handled. Stella Artois is also expanding on-site quality control. It plans to increase the number of locations using “Perfect Serve,” its global draft-beer quality management program, from about 1,500 to about 2,500 this year. The company will also hold the “Stella Artois Perfect Serve Awards Korea” competition for venues that complete the training program. Using an AI-powered “Perfect Serve Scanner” app, the brand will select the top 20 venues based on scores submitted by consumers. Those venues will then compete on the accuracy and consistency of the five-step serving ritual. The brand is also updating packaging and running a limited-time promotion. It has changed the logo on its cans from a horizontal to a vertical layout, a design intended to keep the logo upright when the can is tilted to pour into the chalice. For May, it will also sell a limited-edition package that includes a temperature-sensitive chalice through major supermarkets nationwide and convenience-store smart orders online. When cold beer at the optimal temperature touches the glass, the logo on the outside turns red, allowing drinkers to confirm the beer is chilled. “S Stella Artois believes the brand should be responsible not only for how the beer is made, but also for the moment consumers experience it,” said Park Sang-young, an OB Beer marketing executive director. “We will continue to set standards for delivering the best possible beer experience.” Stella Artois also participated as the official beer partner at the Michelin Guide Seoul & Busan 2026 publication event held in March at Signiel Busan. The brand has partnered with the Michelin Guide Seoul & Busan for a second consecutive year.* This article has been translated by AI. 2026-05-06 09:45:26

SK Square shares jump 11% to top 1 million won as chip rally lifts outlook SK Square surged in early trading after joining the so-called “emperor stock” club, a term for shares priced at 1 million won or more. According to the Korea Exchange, SK Square was trading at 1.10 million won as of 9:24 a.m. on Tuesday, up 109,000 won, or 11.00%, from the previous session. It briefly climbed to 1.149 million won, setting a new intraday record high. Its market capitalization rose to about 145 trillion won, ranking it roughly third on the benchmark KOSPI behind Samsung Electronics and SK hynix. Its market-cap weighting expanded to the mid-2% range. The rally has been attributed to a sharp rise in the value of key subsidiary SK hynix, as an AI-driven boom in memory semiconductors has highlighted the value of SK Square’s stake. Investor sentiment has also been supported by an aggressive shareholder-return policy. SK Square has continued share buybacks and cancellations in recent years and is also planning a 200 billion won cash dividend this year, raising expectations for improved shareholder value. Analysts are watching whether structural changes in the semiconductor cycle could further lift SK Square’s valuation. “A trend toward ‘layering of computing’ driven by the spread of AI is expanding overall memory demand, not only for HBM but also for server DRAM and eSSD,” said Ahn Jaemin, an analyst at NH Investment & Securities. “If this trend continues, SK Square’s value is likely to rise alongside improved results at SK hynix.” He added that a stronger virtuous cycle could take hold, with cash inflows from higher subsidiary dividends feeding back into shareholder returns and semiconductor-related investment. * This article has been translated by AI. 2026-05-06 09:43:20

Hyundai Rotem’s Korean-Built High-Speed Train Begins Commercial Service in Uzbekistan Korean-built high-speed trains have entered service on a major rail route in Uzbekistan, marking their first commercial operation overseas. Hyundai Rotem said May 6 that it began revenue service for the new high-speed rolling stock on May 5 local time. The trains will run on the country’s longest rail line, about 1,020 kilometers (634 miles), linking the capital, Tashkent, with Khiva, a Silk Road city in the west. The fleet consists of 42 cars, with seven cars per trainset, designed based on the KTX-Eum (EMU-260). The trains have a top speed of 250 kph (155 mph) and can carry up to 389 passengers. Hyundai Rotem said the distributed-power design offers better acceleration and deceleration efficiency than the locomotive-style high-speed trains previously used locally. Seating is divided into three classes: VIP, business and economy. Hyundai Rotem said the trains were tailored for local conditions, including dust-resistant design for extreme heat and desert environments, to provide safe and comfortable long-distance travel. The company signed a supply contract in 2024 with Uzbekistan Railways (UTY), which it described as the first overseas export of a domestically developed Korean high-speed train. Hyundai Rotem said more than 600 South Korean parts suppliers involved in the project will be able to demonstrate to global markets a stable production, delivery and handover supply chain built with the company. The company said it expects the launch to help improve Uzbekistan’s transportation infrastructure and left open the possibility of entering Vietnam’s high-speed rail market. On April 23, Hyundai Rotem signed a 491 billion won contract with Vietnam’s THACO Group for the Ho Chi Minh City Metro Line 2 project. A Hyundai Rotem official said the company is moving into commercial operations after holding a launch ceremony in November and starting test runs this year. The official said the company will work to expand additional export bases, including Vietnam, where it has already entered the market.* This article has been translated by AI. 2026-05-06 09:39:16

Lee Seong-yoon to Receive 7.63 Million Won in Compensation After Acquittal in Kim Hak-ui Case Lee Seong-yoon, a lawmaker from the Democratic Party who was indicted on allegations of improperly pressuring investigators in the so-called “Kim Hak-ui travel ban case” but was ultimately acquitted by the Supreme Court, will receive criminal compensation. According to the government gazette published on the 6th, the Seoul Central District Court’s Criminal Division 51, chaired by Senior Judge Jeon Bo-seong, ordered the government to pay Lee 7,631,000 won in cost compensation. Under the criminal compensation system, the state compensates defendants whose acquittals are finalized for losses tied to detention or trial. Payments are divided into detention compensation and cost compensation, which covers expenses such as attorney fees and transportation. Lee was indicted by prosecutors in May 2021 on charges that, while serving as head of the Supreme Prosecutors’ Office’s Anti-Corruption and Strong Force Department in June 2019, he pressured the Anyang branch of the Suwon District Prosecutors Office to halt its investigation into the travel ban imposed on former Justice Ministry Vice Minister Kim Hak-ui. Trial courts in the first and second instances found Lee not guilty, and the Supreme Court finalized the acquittal in June last year. The court said it could not rule out the possibility that the investigative team ended the probe on its own, rather than because Lee exerted improper pressure. The gazette also said criminal compensation was approved for others whose acquittals were finalized. Kim Tae-han, former CEO of Samsung Biologics, and Kim Shin, former head of Samsung C&T, who were tried alongside Samsung Electronics Chairman Lee Jae-yong over allegations of an improper merger and accounting fraud, will receive 13.77 million won and 5.65 million won, respectively. Park Hyeong-cheol, former Blue House senior secretary for anti-corruption, who was tried over allegations of covering up an internal inspection involving former Busan Vice Mayor for Economic Affairs Yoo Jae-soo, will receive 7,448,000 won. Jang Hwan-seok, former senior administrative officer in the Blue House’s Balanced Development Secretariat, who was acquitted in a case tied to alleged interference in the Ulsan mayoral election during the Moon Jae-in government, will receive 8,851,000 won in cost compensation.* This article has been translated by AI. 2026-05-06 09:37:16

KOSPI Tops 7,000 as Middle East Tensions Ease; Won Gains Early South Korea’s won strengthened early Tuesday as local stocks rallied, with the KOSPI breaking above 7,000 amid expectations of easing geopolitical risks in the Middle East. In Seoul’s foreign exchange market, the won was trading at 1,461.4 per U.S. dollar as of 9:23 a.m., according to the market. The exchange rate opened at 1,465.8 won, up 3.0 won from the previous session, then moved lower. Clashes have continued in the Strait of Hormuz, but the U.S. confirmed that a cease-fire agreement with Iran remains in place, feeding hopes that tensions may ease. Overnight, U.S. stocks rose as Middle East risk concerns eased and expectations for artificial intelligence-driven demand lifted semiconductor shares. In New York on May 5 (local time), the S&P 500 and the Nasdaq both set record highs. The S&P 500 gained 0.81% to 7,259.22, and the Nasdaq rose 1.03% to 25,326.13. The KOSPI moved above 7,000 immediately after the open. With foreign funds flowing into local shares, led by semiconductors, the market is expected to support the won’s strength. Min Kyeong-won, an economist at Woori Bank, said the exchange rate is expected to fall during the session, tracking Monday’s closing level, as risk appetite improves on reduced fears of a renewed full-scale U.S.-Iran conflict. He added that the stock-market rally is a factor that can tilt supply and demand toward net selling, led by offshore selling.* This article has been translated by AI. 2026-05-06 09:36:05

Celltrion posts record Q1 as new biosimilars drive earnings surge SEOUL, May 06 (AJP) - South Korean biopharmaceutical firm Celltrion reported its strongest first-quarter results on record, as a wave of newly launched biosimilars accelerated overseas sales and pushed operating profit more than twofold higher. According to regulatory filings released Wednesday, the company logged consolidated revenue of 1.14 trillion won ($779.43 million) and operating profit of 321.9 billion won for the three months ended March 31, up 36 percent and 115.5 percent, respectively, from a year earlier. The operating margin widened to about 28.1 percent. Sales of five high-margin biosimilars launched last year jumped 67 percent on year to 581.2 billion won, accounting for 60 percent of total product revenue for the first time. Omlyclo, rolled out across Europe in September, has captured market shares of 98 percent in Denmark, 80 percent in Spain and 70 percent in the Netherlands within roughly four months of launch. Momentum has carried into the United States, where Zymfentra, the world's only subcutaneous infliximab, is logging its highest-ever monthly prescription volumes, more than triple year-earlier levels. SteQeyma held an IQVIA-tracked share above 10 percent as of March, supported by reimbursement coverage secured through major pharmacy benefit managers. "Achieving sharp growth in the seasonally weak first quarter reflects the full-fledged market entry of our high-margin product lineup," said a Celltrion spokesperson, adding that the results mark a successful start toward exceeding annual targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit. Celltrion's board on Wednesday also approved cancelling about 100 billion won of recently bought treasury shares, following last month's retirement of 9.11 million shares worth roughly 1.8 trillion won. The company plans to expand its biosimilar portfolio to 18 products by 2030 and 41 by 2038, while broadening its novel drug pipeline to 20 candidates by 2027. Shares of Celltrion traded at 197,000 won per stock on 9:30 a.m., 0.4 percent lower than the previous session. 2026-05-06 09:35:41