Middle East Conflict and El Niño Could Drive Oil Prices to $180 The ongoing conflict in the Middle East, combined with climate factors, is creating significant energy shocks. With the blockade of the Strait of Hormuz halting oil exports from the Gulf region, global oil inventories are rapidly depleting. The potential for increased demand due to summer cooling and travel, along with a strong El Niño, has led to warnings that international oil prices could rise to $180 per barrel (approximately 260,000 won). According to the Financial Times (FT) on May 17, the International Energy Agency (IEA) estimates that the number of countries implementing emergency measures for fuel security and consumption restraint has risen to 76, up from 55 at the end of March. This increase occurred within just two months. Australia plans to invest $10 billion (about 14.7 trillion won) to expand its fuel and fertilizer reserves, while India is advising its citizens to refrain from gold purchases and international travel to defend its foreign exchange reserves. Countries are responding urgently as energy supplies tighten. The IEA projects that from March to June, global oil demand will exceed production by about 6 million barrels per day. Some analysts estimate the shortfall could reach 8 to 9 million barrels daily. Since the onset of the conflict, global oil inventories have decreased by approximately 380 million barrels, excluding amounts that could not leave the Gulf region. Releasing government reserves has its limits. Currently, more than 2 million barrels of emergency oil are being supplied to the market daily, but many of these release measures are set to end in July. JP Morgan warns that the inventories of OECD member countries could drop to levels that strain oil distribution and refinery operations by early June. The forecast of $180 per barrel arises from these circumstances. Paul Diggle, chief economist at Aberdeen Asset Management, stated, "We are considering a scenario where Brent crude could rise to $180 per barrel (approximately 260,000 won)." He noted that while this is not his base case, it is a serious consideration. Currently, Brent crude is priced above $105 per barrel (about 150,000 won). However, analysts suggest this level may not exert enough price pressure to significantly reduce oil consumption. Morgan Stanley warns that if prices exceed $150 (about 220,000 won), it could lead to actual fuel shortages, supply chain disruptions, and a simultaneous economic recession. A key variable is the reopening of the Strait of Hormuz. Apostolos Tzitzikostas, the European Union's Commissioner for Transport, cautioned at an FT conference that if the Middle East conflict does not resolve within weeks and the Strait remains closed, the possibility of a global recession cannot be ruled out. In this scenario, the volume of oil reaching the market becomes more critical than production levels. El Niño Complicates Matters Adding to the uncertainty is the emergence of El Niño. According to CNN, the National Oceanic and Atmospheric Administration (NOAA) reports that El Niño is forming more rapidly than expected, with a significant likelihood of developing into a strong event this fall or winter. NOAA estimates a two-thirds chance that this El Niño could reach strong or very strong levels at its peak, with a 96% probability of lasting through winter. El Niño is characterized by higher-than-average sea surface temperatures in the tropical Pacific, which can alter global weather patterns. A strong El Niño increases the risks of droughts, heatwaves, and floods in various regions. Heatwaves can lead to higher air conditioning use, increasing power demand, while droughts can worsen conditions for hydropower generation. Increased reliance on oil, gas, and coal to meet energy needs could further pressure overall energy prices. Rising oil prices also pose challenges for monetary policy. Jeffrey Gundlach, CEO of DoubleLine Capital and known as the 'Bond King,' stated that rising oil prices and tariff burdens due to the Middle East conflict could push inflation higher, complicating the Federal Reserve's ability to cut interest rates this year. He suggested that the next Consumer Price Index (CPI) could rise to around 4%, indicating that the Fed's next policy move might be an increase rather than a decrease.* This article has been translated by AI. 2026-05-18 17:36:00

Upstage's Lee Geon-soo Appointed as New CEO of AXZ Following Acquisition AXZ, the operator of the portal Daum, has initiated a management change just over a week after acquiring Upstage. Yang Joo-il, the current CEO of AXZ, is set to leave the company at the end of this month, with Lee Geon-soo, the head of Upstage's AI search division, reportedly appointed as his successor. According to sources in the information technology (IT) industry on May 18, Upstage has designated Lee Geon-soo as the new CEO of AXZ. Lee was recruited by Upstage in April from his previous role as CEO of Connectwave. Lee is known as an expert with a strong understanding of platform sectors, having graduated from Seoul National University with a degree in business administration. He became an executive at Naver in 2014 and oversaw the Naver Place business and the Naver Glace (CIC, Global Place) organization until 2023. During his tenure at Connectwave, Lee was involved in a large-scale private language model (LLM) development project with Upstage. He is expected to play a key role in linking Upstage's LLM, 'Solar,' with Daum's AI search portal. Yang Joo-il has served as CEO of AXZ since May 2023, when Kakao launched the Daum business unit as a corporate independent company (CIC). He reportedly expressed his intention to resign following the confirmation of Upstage's acquisition of Daum. Upstage plans to transform Daum into an AI search portal following the acquisition. The goal is to enhance the existing portal search into a generative AI-based search service, utilizing Daum's long-accumulated data and traffic from news, cafes, and searches, based on its LLM, Solar. The IT industry anticipates that the management change at AXZ may lead to further organizational restructuring. Kakao reportedly checked with AXZ employees last December regarding their willingness to return to Kakao or remain at AXZ. Industry insiders believe that the likelihood of AXZ personnel moving back to Kakao is low. Upstage stated that Lee's appointment as CEO is not yet finalized and that there are no decisions made regarding the personnel reallocation within Daum's organization, which is primarily composed of Upstage employees. Meanwhile, the Kakao branch of the National Chemical Fiber Food Industry Labor Union has expressed opposition to Yang Joo-il's resignation in connection with the AXZ sale. In an official statement on May 14, the union criticized Yang, stating, "Yang Joo-il, who encouraged employees by saying, 'We are setting sail into a vast ocean' at the time of the spin-off, decided to resign immediately after the sale through a share exchange with Upstage was confirmed, which is a deceptive exit." The union also criticized Kakao CEO Jeong Shin-ah, saying, "Despite assuring employees that 'we will not consider a sale' during the spin-off, the company moved forward with a sale just months later, which is a unilateral restructuring aimed at meeting financial metrics and removing personnel." They highlighted that the repeated spin-offs and sales, along with the management's 'exit' actions, pose significant risks to the value of Kakao as a company. The union has also raised concerns that the AXZ sale could lead to internal restructuring at AXZ, stating, "Given that there have been many cases of restructuring following sales in the past, we are worried that this could lead to job insecurity once again."* This article has been translated by AI. 2026-05-18 17:30:40

Ministry of Oceans and Fisheries to Enhance Port Security with Increased Funding The Ministry of Oceans and Fisheries is taking steps to enhance port security by securing additional personnel and improving security facilities and equipment. To support this initiative, the ministry has decided to raise the cap on port facility security fees for the first time in 16 years. According to the ministry, starting July 1, the cap on port facility security fees will increase by 68% compared to the previous year. Facility owners will collect a certain fee from shipping companies, cargo owners, and passengers to cover the costs of hiring security personnel and installing security facilities and equipment. When the basis for collecting security fees was established in 2010, the cap was set at around 10% of the costs incurred for security to alleviate the burden on logistics expenses. Since then, incidents such as cyberattacks on port facilities and illegal drone activities have increased, yet the existing security fees were lower than those at major overseas ports. For instance, the fees at Busan Port were 4.6 times lower than those in China and 70 times lower than in the Netherlands. Concerns about the inadequacy of the port security system were also raised during the confirmation hearing for Minister of Oceans and Fisheries Hwang Jong-woo. In response, the ministry conducted a study on the security costs of major port facilities nationwide starting in 2022 to raise the security fee cap. Based on the research findings, the ministry established the final increase criteria through consultations with stakeholders and financial authorities. As a result, the security fee, which was previously 3 won per ton of vessel weight, will rise to 5 won, while the fee for each passenger, which was 120 won, is expected to increase to 200 won. However, fees for empty containers and transshipments will be exempt. Kim Hye-jung, director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, stated, "The increase in the cap on security fees is expected to provide a more secure management of ports, which are critical national facilities. We also plan to carefully assess the impact on port cargo volumes."* This article has been translated by AI. 2026-05-18 17:27:57

Daewoo Engineering Wins Public Redevelopment Project in Gangdong Daewoo Engineering has secured a public redevelopment project in the Han River area of Cheonho-dong, Gangdong District, marking the first application of its high-end brand 'Summit' in a public redevelopment initiative.On May 16, Daewoo Engineering was selected as the final contractor for the public redevelopment project in the A1-1 zone of Cheonho, Gangdong District, the company announced on May 18.The project will involve the construction of eight apartment buildings, ranging from five underground floors to 40 above ground, totaling 747 units along with community facilities. The total construction cost is estimated at 372 billion won.Daewoo Engineering emphasized the project's views of the Han River and distinctive exterior design. The complex will be named 'Summit Triver,' reflecting the three main buildings and the river view. This is the first time Daewoo Engineering has proposed its high-end brand 'Summit' for a public redevelopment project.In terms of design, the company has partnered with the global architectural firm UNStudio, known for its design of the Mercedes-Benz Museum in Germany. The project aims to differentiate itself from nearby complexes by using curtain wall materials that reflect changes in light.A sky lounge, offering 360-degree views at a height of 120 meters, will provide vistas of the Han River and the city. Some units will feature specialized layouts, including penthouses with river views. Additionally, a themed garden spanning approximately 6,346 square meters will be developed as part of the landscaping.A Daewoo Engineering representative stated, "The A1-1 zone in Cheonho is symbolically significant due to its location along the Han River. We aim to create a new landmark complex in Gangdong District through differentiated design and view specialization."Lee Eun-sang, a researcher at NH Investment & Securities, noted, "Daewoo Engineering is expected to complete several construction sites that have previously incurred high material and labor costs this year, increasing the proportion of high-margin self-developed projects. Consequently, the total gross profit from the housing sector is projected to reach 916.3 billion won in 2026, with a profit margin of 16%."* This article has been translated by AI. 2026-05-18 17:25:52

HD Hyundai Marine Solution to maintain power engines for US data center SEOUL, May 18 (AJP) - HD Hyundai Marine Solution is entering the North American data center power market. The company said Monday that it recently signed a memorandum of understanding with Aperion Energy Group, or AEG, a U.S. energy infrastructure developer, to provide maintenance services for power engines used at a data center. Under the agreement, the two companies will cooperate for the long-term maintenance and operation of 33 power engines at a data center AEG is building in Texas. HD Hyundai Heavy Industries previously signed a contract with AEG in April to supply 684 megawatts of data center equipment based on 20-megawatt HiMSEN engines. As the rapid development of artificial intelligence drives up electricity consumption at data centers, the reliability of backup and primary power supply systems has become a key factor in ensuring efficient data center operations. HD Hyundai Marine Solution plans to use its cooperation with AEG as an opportunity to expand its presence in North America by highlighting the proven performance of HiMSEN engines and its engine maintenance capabilities. The company said the partnership is expected to go beyond engine supply and lead to long-term service agreements, as well as operation and maintenance contracts. “Through this cooperation, we aim to capture new demand in the North American data center market,” an HD Hyundai Marine Solution official said. 2026-05-18 17:20:27

Hyundai Engineering Bets on 240-Degree Han River Panorama in Apgujeong 5 District "We have an advantage over competitors in every aspect." On the morning of May 18, Park Seong-ha, head of Hyundai Engineering's Apgujeong redevelopment team, expressed confidence ahead of the upcoming construction company selection meeting at the promotional center near Apgujeong Station in Gangnam, Seoul. The Apgujeong 5 District will be rebuilt through the redevelopment of the Hanyang 1st and 2nd apartments, featuring six underground floors and 68 above-ground floors, comprising eight buildings with a total of 1,397 units. The total construction cost is estimated at approximately 1.496 trillion won. As the construction company selection meeting approaches on May 30, the competition is expected to be primarily between Hyundai Engineering and DL E&C, the only two bidders among the five districts in Apgujeong. Hyundai Engineering claims that while competitors may appear to have advantages in construction duration and financial conditions, the practical differences are negligible, asserting that their company holds the upper hand. Hyundai Engineering proposed a construction period of 67 months, while DL E&C suggested 57 months. Park explained that the Apgujeong 5 District has over 50% bedrock, which limits blasting operations, and that the project involves four more floors than the Apgujeong 2 District. He also cited Samsung C&T's proposal of 68 months for the Apgujeong 4 District as further justification. "Competitors have a low understanding of the construction timeline for high-rise buildings," Park stated, adding that the examples they cite of other high-rise projects were built before the implementation of the 52-hour workweek and the Serious Accident Punishment Act. He emphasized that Hyundai Engineering offers broader financial guarantees for construction and relocation costs. The company proposed a fixed interest rate of 'COFIX + 0.49%' for the total project cost, which applies to essential project expenses, including additional relocation costs. In contrast, competitors offer a 0% margin on COFIX but limit it to essential project costs. Park noted, "Competitors explicitly excluded additional relocation financing costs that members apply for individually, which only accounts for about 20% of the total project cost." Regarding the construction cost per 3.3 square meters (pyeong), he stated, "Competitors claimed they would cover the construction costs for commercial buildings but calculated the cost per pyeong including commercial space. Excluding the commercial construction costs, the evaluation construction cost exceeds 1.08 million won, making their claim of lower per-pyeong costs completely false." Despite its prime location near the Galleria Department Store and Rodeo Street, the Apgujeong 5 District has lower market prices compared to other areas. Hyundai Engineering stated that it focused on high-end design to align with market prices. To enhance the Han River view, the windows are designed to be 2.9 meters high and 13 meters wide. The promotional center includes a 'Schüco window experience area' that combines curved windows with a rear LED screen, allowing visitors to experience the panoramic view. Hyundai Engineering is proposing Korea's first custom-made units, allowing for flexible interior arrangements based on residents' preferences through a column-style structure. This includes private spaces for one- or two-person households and tailored spaces for families of three or four. The entire basement level is dedicated to community spaces, excluding parking, to enhance the luxury living experience. The basement will be connected to the Galleria Department Store through a collaboration with Hanwha. Each of the eight buildings will feature a guesthouse, and the top floor will include a sky guesthouse managed by Hanwha Group's Hotel and Resort Plaza Hotel. Hyundai Engineering has invested over 10 billion won in landscaping. Notably, a forest covering over 3,800 pyeong surrounds the complex, providing complete privacy, while an elevated walkway to the Han River is closely connected to each building. The company is actively utilizing advanced robotics technology from Hyundai Motor Group in the residential complex. This includes a 'Spot Safety Service Robot' capable of patrolling the area 24/7, as well as 'Mobed' and 'Sharing Mobility' for food delivery and recycling waste disposal, along with an 'unmanned firefighting robot.' * This article has been translated by AI. 2026-05-18 17:18:00

Financial Services Commission Adapts Rapid Response Strategy Recently, the Financial Services Commission (FSC) has accelerated its response time to pressing issues. While the so-called "six-hour rule"—the guideline to respond to sensitive matters within six hours—has been discussed in government circles, the FSC has been able to shorten its response time through real-time communication channels like Telegram. The FSC's improved response speed was evident in the recent controversy surrounding Sangnoksoo, a company established to manage private bad debts during the 2003 credit card crisis. Following a media report on May 12 that criticized the financial sector's lukewarm attitude toward transferring funds to the New Leap Fund, the FSC's actions drew significant attention. According to the financial sector, the issue gained prominence immediately after the report. FSC Chairman Lee Ok-won instructed his team to verify the facts before President Yoon Suk-yeol mentioned the matter on social media around 8 a.m. the same day. Later, Chairman Lee attended a Cabinet meeting at 9 a.m., where he outlined the FSC's response strategy regarding Sangnoksoo. Throughout the morning, the FSC confirmed the stance of member companies regarding the sale of bonds related to Sangnoksoo. By 4 p.m., a full meeting was convened, marking approximately 10 hours from the initial report to the gathering of member opinions and the meeting itself. The financial sector views this meeting as a turning point for quickly resolving discussions about the sale of Sangnoksoo bonds. The FSC's internal communication methods appear to support this rapid response. An FSC official noted, "These days, the FSC shares issues and directives in real-time through Telegram group chats. Initially, matters were shared mainly among the chairman and department heads, but now they are quickly communicated to junior staff as well." However, the swift timeline has led to various interpretations within the financial sector. The rapid sequence of events—from the morning report to the president's message, the Cabinet meeting discussions, and the FSC's confirmations and subsequent meeting—has raised questions. Some speculate that the government may have highlighted the Sangnoksoo issue to pressure the financial sector into participating in the New Leap Fund. The FSC has distanced itself from such interpretations, stating that it acted promptly to verify facts and implement necessary follow-up measures without any intent to pressure specific financial institutions or prior coordination with the presidential office.* This article has been translated by AI. 2026-05-18 17:15:25

Shinhan Bank Strengthens Its Position as a Leading Bank in Institutional Sales Shinhan Bank has successfully retained its position as a leader in institutional sales by securing the Seoul City treasury accounts, valued at over 50 trillion won. With major bids for the Incheon City treasury and other large institutions scheduled for the second half of the year, attention is focused on whether Shinhan can maintain its title as a leading bank.According to the financial sector on May 18, Shinhan Bank was selected as a priority candidate for both the first and second treasury accounts during the Seoul City treasury designation review committee held on May 12. The bank received top scores of 973.904 for the first treasury and 925.760 for the second treasury.In this bidding process, Shinhan Bank, Woori Bank, KB Kookmin Bank, and Hana Bank all participated for the first and second treasury accounts, with Shinhan successfully retaining both. The total budget for Seoul City this year is 51.4778 trillion won, the largest among local governments nationwide.The Seoul City treasury accounts are not only symbolic but also crucial for evaluating institutional sales competitiveness in future bids for local government, education offices, and public institutions. By securing a stable source of funding worth tens of trillions of won over several years, Shinhan Bank has gained a significant advantage in the competition among leading banks.As government policies on household loan management have hindered the expansion of interest income, institutional sales have emerged as a key strategy for securing large deposits and future clients.Shinhan Bank is accelerating its institutional sales efforts through the newly established Institutional and Partnership Sales Group, formed during a reorganization at the end of last year. After being reselected as the third operator for the National Love Card, the bank captured more than half of all issuances in the first quarter of this year. The Legal Fund Payment Center supports the management of court-related funds, including deposits, delivery fees, and court custody funds. The average balance of court custody funds has increased from 1.8 trillion won in 2021 to 2.8 trillion won last year, with Shinhan reportedly handling over 60% of this amount.Launched in 2022, the Heyoung Campus mobile platform for university students is currently used by over 130 universities. Recently, Shinhan Bank signed a memorandum of understanding with Seoul National University for long-term mutual growth. Universities are seen as a key channel for banks to secure future clients.A financial sector official stated, "The importance of institutional sales, which can secure large funds and clients amid the trend of household loan management, will continue to rise. With bids for the Incheon City treasury and others expected in the second half of the year, strategic competition is likely to unfold."* This article has been translated by AI. 2026-05-18 17:13:10

Conflict Erupts Between Jeong Cheong-rae and Jang Dong-hyuk at 5·18 Commemoration Jeong Cheong-rae, leader of the Democratic Party, and Jang Dong-hyuk, leader of the People Power Party, attended the 5·18 Democratic Movement commemoration on May 18, expressing condolences while engaging in a heated exchange. Jeong stated, "We must judge the insurrection nominations," to which Jang retorted, "5·18 has become a tool for power expansion." Jeong arrived at the national cemetery at 8:40 a.m. and paid his respects for about 20 minutes before speaking with reporters. He reiterated the need to resolve the insurrection through victory in the upcoming June 3 local elections. "Seeing the insurrection party's nominations that still advocate insurrection and shout for Yoon Seok-youl, I prayed to the spirits of the Gwangju democracy martyrs to judge them," Jeong said. "If there is a will from heaven, the insurrection nominations will be sternly judged in the name of history, the constitution, and democracy." He emphasized the historical significance of the 5·18 Gwangju Democratic Movement and reiterated plans to include its spirit in the preamble of the constitution. "If it weren't for the 5·18 Democratic Movement, the current constitution, created through the June struggle of 1987, would not exist. The martial law of December 3 would have succeeded, and many citizens would still be suffering in a dark tunnel of dictatorship. I deeply thank the spirits of 5·18," he said. Jeong also expressed regret for failing to include the spirit of 5·18 in the constitution's preamble, stating, "I feel ashamed and sorry to the spirits of Gwangju. However, I will do my best to ensure that the spirit of 5·18 is included in the preamble and that we can never dream of martial law again." Jeong made remarks seemingly directed at Jang, who was also attending the commemoration. During a campaign meeting earlier that morning, he asked, "It seems that officials from the People Power Party will also attend. Even if you are unhappy and angry, please remain silent." Jang, who attended the ceremony, acknowledged the significance of May 1980 in preserving South Korea's liberal democracy but criticized the policies of the Lee Jae-myung administration and the Democratic Party. He stated on Facebook, "The true meaning of the 5·18 spirit is noble sacrifice for freedom and human rights, but to them, it is merely a tool for power expansion," labeling the judicial reform proposals pushed by the Lee administration and the Democratic Party as 'bulletproof' and 'removal of political opponents.' After the ceremony, Jang remarked, "It is truly strange and inappropriate for a president who seeks to eliminate his own trial to read a commemorative speech at the 5·18 site. The spirits were crying out that even the president must face trial if he commits a crime. Lee Jae-myung's speech could not even fill the 5·18 square." He added, "Our citizens will no longer tolerate the destruction of democracy by Lee Jae-myung. The People Power Party will fight alongside the people with our lives on the line," hinting at a struggle against the ruling party. Despite Jeong's request for silence during the ceremony, attendees shouted and criticized Jang upon his arrival.* This article has been translated by AI. 2026-05-18 17:07:32

SK Ecoplant to Implement 'DE'FINE' in Shinbanpo 20 Reconstruction Project SK Ecoplant has secured the reconstruction project for the Shinbanpo 20 apartment complex, one of the prominent redevelopment sites in Gangnam, Seoul.On May 18, SK Ecoplant announced that it has been selected as the construction company for the Shinbanpo 20 reconstruction project. The project will involve the development of four buildings with a total of 190 residential units, spanning four underground levels and 35 above-ground floors, at the site located in Jamwon-dong, Seocho-gu. The total contract amount is approximately 204.8 billion won.The site is situated within the Banpo and Jamwon living area and is just a two-minute walk from Banpo Station on Subway Line 7. It offers easy access to the Olympic Highway and the Gyeongbu Expressway, facilitating convenient vehicle movement throughout Seoul and the surrounding metropolitan area. Jamwon Station on Line 3 is also a seven-minute walk away.Nearby educational institutions include Banwon Elementary School, Wonchon Elementary School, Gyeongwon Middle School, Wonchon Middle School, and Cheongdam High School, providing excellent educational opportunities. Additionally, major shopping and convenience facilities such as Shinsegae Department Store Gangnam, Newcore Outlet, Banpo Shopping Town, and the underground shopping mall at Seoul Express Bus Terminal are in close proximity, enhancing the convenience of daily life.With this contract, SK Ecoplant aims to solidify the position of its high-end premium brand 'DE'FINE' in the Gangnam redevelopment market.Lee Gi-yeol, head of SK Ecoplant's Solution Sales Division, stated, "Based on our extensive experience and superior construction capabilities accumulated in urban redevelopment projects, we will provide the highest residential value to the residents. We plan to use this Shinbanpo 20 contract as a stepping stone to continuously enhance our competitiveness in redevelopment projects through our premium brand DE'FINE."An SK Ecoplant official noted, "This contract marks the second application of the 'DE'FINE' brand in the Jamwon-dong area, which is significant for expanding our brand presence in the high-end market of Gangnam. We will finalize the project name after discussions and general meetings with the association before construction begins, including integrated reviews and project approvals."* This article has been translated by AI. 2026-05-18 17:01:53