Milk Production Costs Decrease 0.4% Last Year, Price Freeze Likely This Year As negotiations for raw milk prices approach, the likelihood of a price freeze is increasing. This is due to a decrease in production costs, which has reduced the pressure for price hikes compared to previous years. According to the National Data Agency's "2025 Livestock Production Cost Survey Results" released on May 15, the production cost of milk last year was 1,014 won per liter, a decrease of 0.4% (4 won) from the previous year. This reduction is attributed to a decline in the cost of dairy feed, which fell from 629 won to 615 won per kilogram, a drop of 2.2% (-14 won). Raw milk prices are determined through negotiations between the Dairy Promotion Association, which includes both the dairy industry and dairy farmers, based on the previous year's production cost fluctuations. Under the current raw milk price linkage system, negotiations can occur if the production cost fluctuation exceeds ±4% from the previous year, with price adjustments made within a maximum range of 70% of the cost change. This year, the fluctuation in production costs did not reach the ±4% threshold, and the government's strong focus on price stability further increases the likelihood of a price freeze. However, since raw milk prices have been frozen for two consecutive years, and due to rising labor costs and exchange rates, there remains a possibility for price increases. The Dairy Promotion Association may still conduct separate negotiations based on the supply and demand situation for raw milk and market conditions, even if the previous year's production cost fluctuation does not meet the criteria. Meanwhile, the profitability of livestock farms varied by type last year.For beef cattle, the net loss per animal was 999,000 won, a reduction of 615,000 won (38.1%) from the previous year, indicating some improvement in losses. However, this marks the fourth consecutive year of deficits since 2022. While rising beef prices have somewhat restored profitability, the increase in calf prices has continued to burden production costs. In fact, the production cost for beef cattle rose to 1,289,000 won, an increase of 13,000 won (1.0%) from the previous year. For other cattle, the net loss was 1,493,000 won, down 315,000 won (17.4%) from the previous year. This reduction is attributed to lower feed costs and higher market prices. In contrast, the profitability of dairy cows and pigs and chickens improved. Dairy cows saw a net profit of 2,235,000 won per animal, an increase of 85,000 won (3.9%) from the previous year, driven by higher raw milk selling prices and calf prices. Finishing pig farmers reported a net profit of 81,000 won per animal, a significant increase of 50,000 won (157.6%) from the previous year due to rising pork prices. Layer hens experienced a net profit of 12,561 won per animal, up 4,519 won (56.2%) due to rising egg prices, while broiler chickens saw a net profit of 213 won per animal, an increase of 85 won (66.0%) due to lower rearing costs. 2026-05-15 12:04:14

Jung Won-oh Promises Additional 2.5 Trillion Won in Local Love Gift Certificates Jung Won-oh, the Democratic Party's candidate for Seoul mayor, has pledged to issue an additional 2.5 trillion won in local love gift certificates. He also intensified his criticism of Oh Se-hoon, the candidate from the People Power Party, regarding his debate stance and the 'Garden of Gratitude'. At a press conference held on the morning of May 15 at the National Assembly in Yeouido, Jung stated, "Local love gift certificates are the most effective livelihood policy to alleviate citizens' living costs and boost sales in local businesses." Jung criticized the reduction in support during the administration of former President Yoon Suk-yeol and under Oh Se-hoon's tenure as mayor. He noted, "The Yoon administration has cut national funding for local love gift certificates and plans to halt it in 2024," adding that "Mayor Oh has only provided matching support for special issues like delivery and online sales since last year." He plans to expand the purchase and holding limits for local love gift certificates and increase the discount rate to 10%, the same as during the COVID-19 pandemic. Funding for this initiative is expected to come from a supplementary budget. Jung explained, "I will discuss this with newly elected city council members and during the transition period after taking office," adding that discussions with candidates for district mayor positions are already underway. Regarding recent polling showing a close race with Oh, Jung remarked, "The Seoul election is a tight contest." He stated, "Regardless of my approval ratings, the Seoul election is competitive, with some areas showing significant differences and others being very close." He criticized Oh's recent proposal for additional joint debates, saying, "It is more problematic that Oh changes his stance based on the situation rather than the debates themselves." Jung pointed out, "A month ago, Oh said, 'TV debates are not everything' and refused to debate his opponents in the primary. It is unreliable to frame it differently now that circumstances have changed. I hope he reflects on his own statements." Additionally, regarding the controversy surrounding the Garden of Gratitude, Jung indicated that he is considering relocating the sculpture. He stated, "The intention to express gratitude to the 22 UN participating countries is appropriate," but added, "The current location lacks contextual significance. I will consult with citizens about relocating it to the War Memorial in Yongsan."* This article has been translated by AI. 2026-05-15 12:01:06

Choo Mi-ae Defends AI National Dividend Proposal Amid Controversy Choo Mi-ae, the Democratic Party's candidate for Gyeonggi governor, addressed the recent controversy surrounding the AI national dividend proposal suggested by policy chief Kim Yong-beom. She stated that while misunderstandings could influence voter sentiment, it is impossible to determine which side would benefit politically. In an interview on KBS 1 Radio's "Current Affairs," Choo remarked, "As robotics and AI technology advance, productivity can significantly increase, but existing jobs may decline. This is not an unreasonable statement." She emphasized the need for political and administrative leaders to create opportunities for all citizens to benefit during this technological transition. Choo described the national dividend system as a concept of considerable significance, noting that similar ideas are being explored internationally, thus necessitating public discussion alongside system design. Choo also cautioned that if the People Power Party continues to incite public sentiment, uninformed citizens might misinterpret the proposal as nonsensical. She added, "There are positive aspects to this system, so we cannot definitively say which side it will favor in terms of voter sentiment." Meanwhile, after Kim proposed the AI dividend system on May 12 via Facebook, People Power Party leader Jang Dong-hyuk has been consistently critical. Jang posted on Facebook the previous day, accusing Lee Jae-myung of being motivated solely by greed, stating, "Whether it’s excess profits or surplus tax revenue, the money is not earned by Lee Jae-myung." He criticized the notion of forcibly taking money while hindering industrial development as a typical gang mentality. The Blue House clarified that Kim's proposal reflects his personal opinion and is based on the concept of utilizing surplus tax revenue rather than excess profits. The Democratic Party indicated that while no discussions have taken place regarding the proposal, it should be reviewed by academia in the future. 2026-05-15 11:49:06

First Case of Apple Fire Blight Detected in Chungju; Alert Level Raised On May 15, the Rural Development Administration (RDA) raised the alert level to caution after the first case of fire blight was detected this year in an apple orchard in Chungju, North Chungcheong Province.According to the RDA, the disease was discovered during a routine inspection period this month, following a report from a local farm. Officials from the Chungju Agricultural Technology Center conducted a preliminary test on May 14, which returned a positive result. Subsequent detailed testing confirmed the presence of fire blight. The affected orchard will be disposed of according to guidelines.In response, the RDA has activated its emergency response team and is operating a field diagnostic lab to quickly assess suspected samples collected from the outbreak area.Currently, the North Chungcheong Agricultural Technology Institute and the Chungju Agricultural Technology Center are collaborating on urgent pest control measures. Additionally, they plan to conduct intensive inspections of all orchards within a 2-kilometer radius of the outbreak site until May 19 to prevent further spread.The RDA emphasizes the importance of preventive measures by farmers to curb the spread of fire blight. They are urging agricultural workers to complete pest prevention training and adhere to safety protocols, as well as to enhance self-monitoring for apple and pear growers.Furthermore, the RDA warns that farmers who respond passively to suspected symptoms of fire blight may face penalties, including reduced compensation for losses, and encourages immediate reporting to agricultural technology centers upon detection of any symptoms.Cha Eui-seok, head of the RDA's Disaster Response Division, stated, "Currently, fire blight is not expected to significantly impact the supply of apples and pears. However, since new cases emerge in more than two regions each year, thorough monitoring and pest control must be prioritized in areas without outbreaks."* This article has been translated by AI. 2026-05-15 11:39:10

Seoul Housing Prices Rise After End of Capital Gains Tax Exemption Seoul's housing prices have resumed their upward trend following the end of the capital gains tax exemption. Even Gangnam has turned positive, while areas like Seongbuk and Jongno have recorded their highest growth rates since statistics began, reflecting a significant increase in mid-priced apartment areas. According to the Korea Real Estate Agency's April national housing price trend survey released on May 15, the comprehensive housing price index in Seoul rose by 0.55%. The increase was driven by strong demand in mid-priced areas. By district, Gwangjin saw the highest growth rate at 0.96%, primarily in the Junggok and Guui-dong areas. Seongbuk followed with a 0.92% increase, focusing on small to medium-sized apartments in Seongbuk and Gileum-dong, while Nowon recorded a 0.79% rise, mainly in the large complexes of Wolgye and Junggye-dong. Seodaemun (0.78%) and Dongdaemun (0.77%) also saw increases in areas like Bukgajwa and Hong-eun-dong, and Dapsimni and Huigyeong-dong, respectively. Gangseo (0.87%) showed growth in redevelopment areas of Gayang and Yeomchang-dong, Yeongdeungpo (0.83%) in the station areas of Singil and Yangpyeong-dong, Gwanak (0.74%) in Sinlim and Bongcheon-dong, and Guro (0.72%) in Gaebong and Gocheok-dong. However, Gangnam reported a decline of -0.22% in April, particularly in high-priced areas like Apgujeong and Gaepo-dong. However, the mood shifted dramatically this month following the end of the capital gains tax exemption. According to the Korea Real Estate Agency, the apartment sale prices in Gangnam rose by 0.19% in the second week of May, marking a turnaround after 12 weeks of decline. Major areas like Songpa (0.35%), Seocho (0.17%), and Yongsan (0.21%) also increased their growth rates. The rise in prices is also accelerating in the outer areas where mid-priced apartments are concentrated. In the second week of May, Seongbuk (0.54%) and Jongno (0.36%) recorded their highest growth rates since statistics began. Areas with strong demand, such as Seodaemun, Gangseo, Dongdaemun, and Nowon, continued to see upward trends, contributing to the overall increase in the market. Consequently, Seoul's apartment sale prices rose by 0.28% in the same week, significantly up from 0.15% the previous week. This marks the largest increase since the fourth week of January this year. Analysts suggest that the surge in sales aimed at tax savings, which occurred before the end of the capital gains tax exemption, has depleted available listings, leading to a simultaneous decrease in inventory and an increase in prices. The Ministry of Land, Infrastructure and Transport is encouraging listings by expanding the exemption of occupancy requirements in designated land transaction areas from certain multi-homeowners to all homes with tenants. Yoon Soo-min, a real estate expert at NH Nonghyup Financial Group, noted, "Price impacts vary by region. Areas with many mid-priced apartments have steady demand, making price stabilization difficult, while high-priced apartments have limited demand, suggesting a more stable trend may continue." Nam Hyuk-woo from Woori Bank's real estate research institute stated, "The upward trend has resumed, particularly in so-called 'value-for-money areas' where price burdens are lighter and living conditions are favorable. Areas like Seodaemun, Dongdaemun, and Gangseo have a small gap between transaction prices and listing prices, resulting in lower buyer resistance, and there seems to be an influx of demand from lower-tier to higher-tier areas." * This article has been translated by AI. 2026-05-15 11:36:45

Wonju DB Basketball Team Appoints Lee Gyu-seob as New Head Coach Wonju DB has appointed Lee Gyu-seob, the former head coach of Busan KCC, as its new head coach. The DB team announced on May 15 that it has signed a three-year contract with Lee, who will lead the team until May 2029. Lee, a graduate of Korea University, was selected first overall in the 2000 rookie draft and played for Seoul Samsung. He won the Rookie of the Year award in his debut season and significantly contributed to the team's championships in the 2000-2001 and 2005-2006 seasons. Additionally, he represented the national team for a decade, winning a gold medal at the 2002 Busan Asian Games and a silver medal at the 2010 Guangzhou Asian Games. After retiring in 2013, Lee became the first Korean coach in the NBA G League, serving as a regular coach for the Santa Cruz Warriors. From 2014, he spent eight years with Samsung as a coach and interim head coach, later working as a broadcaster. In the 2025-2026 season, he joined KCC as an assistant coach, helping the team secure a championship. DB explained that Lee's extensive coaching experience and understanding of amateur basketball will aid in the development of rookie players like Yoo Jin and Kim Bo-bae. The team expressed confidence that he would effectively identify players' strengths and weaknesses, contributing to building a strong team in collaboration with the organization. Additionally, DB has re-signed Park Ji-hyun as the head coach to assist Lee. Previously, DB parted ways with head coach Kim Joo-sung, who led the team for three years. A franchise star who joined Wonju TG (the predecessor of DB) in 2002 and retired in 2018, Kim achieved a regular season championship in the 2023-2024 season, a seventh-place finish in 2024-2025, and a third-place finish in 2025-2026. However, the team faced disappointment in the playoffs, failing to reach the finals after being eliminated in the semifinals of the 2023-2024 season and losing to KCC in the quarterfinals of the 2025-2026 season. After careful consideration, DB decided to end its partnership with Kim and pursue a new direction.* This article has been translated by AI. 2026-05-15 11:33:00

Han Byeong-do Criticizes Jang Dong-hyuk for Disrespectful Remarks Towards President Lee Han Byeong-do, the floor leader of the Democratic Party, criticized Jang Dong-hyuk, the leader of the People Power Party, for his disrespectful comments directed at President Lee Jae-myung. He urged Jang to maintain the dignity expected of the leader of the main opposition party. During a Central Election Campaign Committee meeting held in Jeju on May 15, Han stated, "Jang has been using informal language towards President Lee, the head of state, and engaging in slander and defamation." He added, "I hope you will stop trying to mislead the public with low-level remarks and focus more on developing local election promises." Han also pointed out that Jang made inappropriate comments during the official launch of the Central Election Campaign Committee, questioning, 'Shouldn't Lee Jae-myung also face trial and go to prison?' and 'Does Lee have the qualification or ability to protect the citizens of South Korea?' He noted that Jang had also posted on Facebook, stating, 'If you don't like Lee Jae-myung, everything is fake news,' and 'If Lee is an innocent victim, then so are Jo Joo-bin from the Nth Room case and drug lord Park Wang-yeol.' Han warned, "Remember that such behavior undermines your own credibility."* This article has been translated by AI. 2026-05-15 11:30:41

Seoul to unveil nuclear-powered submarine roadmap as early as this month SEOUL, May 15 (AJP) - South Korea is expected to unveil a roadmap for its nuclear-powered submarine program as early as the end of this month, government sources said Friday. The move is seen as an attempt by Seoul to present its own timeline for the long-sought project, as follow-up talks with Washington have been slow. The Ministry of National Defense, which leads an interagency task force on the issue, is expected to announce the plan, though the exact timing has yet to be finalized. The basic plan is expected to outline the mission and role of the submarines, including their defensive nature, as well as Seoul’s commitment to complying with the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). During a visit to Seoul in April, International Atomic Energy Agency (IAEA) Director General Rafael Grossi said South Korea would need a separate safeguards arrangement with the agency if it moves ahead with nuclear-powered submarines, noting that “the nuclear material is not continuously accessible to inspectors” because of the nature of such vessels. He stressed the need for “technically sound arrangements” to verify that the material is used only for propulsion and does not contribute to nuclear proliferation. Nuclear-powered submarines have long been a priority for South Korea’s military, with discussions dating back to the Kim Young-sam administration. After years of failed attempts, the project gained momentum after South Korea and the United States agreed on the issue during their summit on the sidelines of last year’s APEC summit in Gyeongju. Defense Minister Ahn Gyu-back recently discussed cooperation on South Korea’s nuclear-powered submarine program during his visit to the U.S., where he met with U.S. Defense Secretary Pete Hegseth, the acting secretary of the Navy and key members of Congress. Powered by small nuclear reactors, nuclear-powered submarines can theoretically remain submerged for months and travel much faster than conventional diesel-electric submarines, making them a strategic asset. South Korea’s military has reviewed plans to build at least four nuclear-powered submarines with a displacement of 5,000 tons or more after the mid-2030s. As the project would mark the first domestic use of a nuclear reactor on a submarine, the government is also seeking to enact a special law on nuclear-powered submarines to establish a management framework for military nuclear energy. 2026-05-15 11:27:10

SM Vexel Returns to Profitability in Q1 with 500 Million Won Operating Income SM Vexel, a manufacturing affiliate of the SM Group, has successfully returned to profitability in the first quarter. According to a disclosure on May 15, SM Vexel reported consolidated sales of 36.6 billion won and an operating income of 500 million won for the first quarter of this year. While these figures show a slight decline compared to the same period last year (sales of 42.2 billion won and operating income of 800 million won), they represent an improvement over the previous quarter, which saw an operating loss of 300 million won and sales of 32.3 billion won. The defense boom has driven this strong performance. Earlier in February, SM Vexel successfully supplied lithium ampule batteries for the Cheonmu (K-239, Korean Multiple Launch Rocket System), a key weapon system in the K-defense sector. In the automotive division, diversification of the product portfolio has had a positive impact. SM Vexel has stabilized its business base for internal combustion engine parts while also expanding its portfolio to include hybrid vehicle engines. A company representative stated, "The automotive division has entered a recovery phase after confirming its lowest point, and the battery division continues to generate stable profits. With the notable performance of K-defense, we expect the high-profit structure of the defense business to contribute to our growth moving forward." Additionally, SM Vexel was awarded the top prize in the battery category at the 2026 Korea First Brand Awards for the second consecutive year in January. The company is also working to enhance its competitiveness by signing a memorandum of understanding (MOU) with Kongju National University for technology exchange and joint research and development (R&D) in eco-friendly automotive parts.* This article has been translated by AI. 2026-05-15 11:27:00

AI Boom and Hormuz Crisis Create Diverging Economic Trends in Asia The booming artificial intelligence (AI) sector and the blockade of the Hormuz Strait are sharply dividing the economic landscape in Asia. While semiconductor powerhouses South Korea and Taiwan are experiencing unprecedented growth, manufacturing-heavy countries like India, Thailand, and the Philippines are suffering from a historic oil price shock. Economists describe this phenomenon as an "Asian K-shaped recovery," where the benefits of the AI boom and the pains of fuel shortages are moving in opposite directions within the same region. The ongoing conflict between the U.S. and Israel against Iran has effectively closed the Hormuz Strait, exacerbating the widening gap between these two economic trajectories. The upper curve is dominated by semiconductor giants. Taiwan's GDP grew by 13.69% in the first quarter, marking its highest growth in 39 years. The Taiwanese stock market has risen to become the sixth largest globally, surpassing Canada. South Korea's KOSPI has surged nearly 80% this year, achieving the best performance among major global indices. South Korea has now overtaken the UK to become the seventh-largest stock market in the world, valued at $4.04 trillion. Six of the world's top ten stock markets are now in Asia, as investors begin to prioritize AI over geopolitical concerns. This shift is reflected in record operating profits for Samsung Electronics and SK Hynix in the first quarter. Samsung's market capitalization has surpassed $1 trillion, while Taiwan's TSMC accounts for over 40% of the market capitalization of the Taiwanese stock market. The United Nations Conference on Trade and Development (UNCTAD) projects that the global AI market will grow to $4.8 trillion by 2033, approximately 25 times larger than in 2023. This indicates that the semiconductor supercycle is solidifying into a new industrial paradigm. In stark contrast, the economic outlook for countries in southern and western Asia is grim. In the Philippines, where over 36% of the consumer price index (CPI) is linked to fuel, gasoline prices have exceeded 100 pesos (about $5.81) per liter. The Bangko Sentral ng Pilipinas (BSP) is caught in a dilemma over whether to raise interest rates to curb inflation or keep them steady to protect growth. The Manila government has even introduced a four-day workweek to reduce fuel demand. Thailand is facing a nationwide fuel shortage, and the Pakistani government has urged cricket fans to watch matches at home to conserve gasoline. Such administrative measures, typically unimaginable, are now being implemented. The United Nations Development Programme (UNDP) estimates that approximately 8.8 million people in the Asia-Pacific region are at risk of falling into poverty due to the war, which could reduce regional GDP by 0.3 to 0.8 percentage points. Households near the poverty line are being exposed to soaring fuel and food prices, shaking the social safety net. At the center of this divergence is the competition for heavy and medium crude oil, which is crucial for refining margins and underpins Middle Eastern exports. While the U.S. is the world's largest oil producer, most of its output is light shale oil, leading Asian refiners to engage in fierce bidding for non-Middle Eastern sour crude oil that bypasses the Hormuz Strait. The competition among South Korea, China, and Japan for the same quantities is intensifying, causing premiums to rise sharply. Jang Tae-hoon, a senior researcher at the Korea Energy Economics Institute, stated, "Unless a reasonable and effective resolution to the war is reached that can persuade shipowners and insurers, it will be extremely difficult for oil prices to return to pre-war levels in the long term." He added, "If the conflict continues, competition for crude oil outside the Middle East will become inevitable, with China and Japan also bidding for the same quantities." As of April 14, Brent crude was trading at around $106 per barrel. The number of vessels transiting the Hormuz Strait has plummeted from an average of 135 before the war to about 18. The World Bank reported that Brent crude prices surged by approximately 65% as of the end of March, marking the largest monthly increase on record. However, the benefits of the AI boom are not evenly distributed among the winning groups. The labor union representing about 30,000 members in Samsung Electronics' semiconductor division announced a strike from May 21 to June 7 after wage negotiations broke down on May 13. The union is demanding a 15% performance bonus based on operating profits and a 7% increase in base salary. JP Morgan Chase estimates that if the strike lasts 18 days, Samsung's quarterly operating profit could decline by as much as 12%. The situation in Taiwan is similarly concerning. Although the semiconductor industry accounts for only 4% of total employment, starting salaries for new hires are five times higher than in other sectors, raising concerns about polarization and economic concentration. As wealth and talent are drawn into one industry, the wage gap between traditional manufacturing and service sectors is widening. Officials and market experts warn that this growing disparity could have repercussions beyond Asia, impacting the global economy. Increasing inequality may dampen consumption, complicate monetary policy, and disrupt global trade flows. There are also concerns that fuel shortages could soon reach a critical point. Andy O'Brien, Chief Financial Officer of ConocoPhillips, stated during the first-quarter earnings call that some import-dependent countries could face severe shortages by June or July. Valero Energy, a U.S. refining company, also warned that supply chain pressures are likely to intensify. Valero CEO Lane Riggs noted, "Every day that the Hormuz Strait remains blocked adds at least three days to our inventory replenishment time," adding that it could take six to twelve months to fully restore inventory. The question remains: when will the upward curve driven by AI and the downward pressure from oil prices converge again? Market consensus suggests that this will ultimately depend on the resolution of the Hormuz Strait blockade. South Korea, benefiting from the semiconductor supercycle while grappling with the shocks to its energy and petrochemical supply chains, is particularly vulnerable to shifts in balance that could have more direct repercussions than in any other Asian country.* This article has been translated by AI. 2026-05-15 11:23:20