Outgoing BOK dove delivers hawkish swan song amid inflation risks SEOUL, May 11 (AJP) — Inflation has become increasingly worrisome and is likely to dominate upcoming monetary policy discussions at the Bank of Korea, outgoing Monetary Policy Board member Shin Sung-hwan said Monday, in a notable hawkish turn from one of the central bank’s most dovish voices. Shin, whose term ends Tuesday, admitted during a press conference that he had previously favored rate cuts, but said that if he were still to remain on the board, he would now be more concerned about inflation risks. Shin had been the sole dissenter advocating a rate cut when the BOK held its benchmark interest rate steady in January, April, August, October and November last year. “Inflation is always the policy priority,” he said, arguing that central banks should prioritize price stability over growth, particularly when inflation risks drifting above the BOK’s 2 percent target. He warned that if oil prices remain elevated through year-end, secondary inflationary pressures across the broader economy would become unavoidable, making the fight against inflation more difficult than initially expected. Shin identified the surge in global crude prices following the Middle East conflict as the single biggest variable facing policymakers. “We initially expected oil prices to stabilize around $70 per barrel by the end of this year, but under the current situation, it now appears likely to hover closer to $90,” he said. Brent crude climbed as high as $105 a barrel during intraday trading Monday, roughly 50 percent above prewar levels. Since joining the board in May 2022, Shin had been widely viewed as a representative dove within the committee. During his tenure, he issued seven dissenting votes in favor of rate cuts. Even as former Governor Rhee Chang-yong maintained a cautious policy stance, Shin consistently argued for easing to support weak domestic demand and relieve pressure on the real economy. But he said the environment had shifted rapidly in recent months. “Just as the housing market was already making it difficult to lower rates, the Middle East situation deteriorated immediately afterward,” Shin said. “At this point, it is not desirable to add inflationary pressure through a rate cut.” Shin also described “polarization” within the South Korean economy as the most difficult challenge during his tenure. “Economic growth represents the overall performance of the economy, but now we have a situation where a sector accounting for roughly 10 percent of the economy determines the headline figure,” he said, referring to the growing dominance of the semiconductor sector. He warned that disparities across industries have widened to the point where appropriate interest-rate levels differ sharply depending on the sector. In the past, strong growth in leading industries generated broader trickle-down effects across the economy, Shin said, but that transmission mechanism has weakened considerably. As a result, higher interest rates risk placing even greater burdens on already struggling sectors. Regarding the recent rise in government bond yields, Shin said a combination of surging long-term U.S. Treasury yields and mounting inflation expectations had contributed to the move. “Long-term U.S. interest rates reflect concerns over inflation expectations,” he said, adding that similar concerns are also likely influencing the rise in South Korean government bond yields. Shin is not the only BOK official signaling a more hawkish shift. “We need to stop thinking about lowering the benchmark interest rate and begin considering the possibility of raising it,” Ryoo Sang-dai said earlier this month during a press conference at the Asian Development Bank annual meeting in Samarkand, Uzbekistan. Ryoo added that clearer signals regarding the BOK’s future policy direction could emerge during the May monetary policy meeting. Bond prices continued to fall amid a growing atmosphere for an interest rate hike. The yield on the three-year government bonds closed at 3.598 percent, up 2.9 basis points, while the ten-year yield finished at 3.950 percent, up 4.1 basis points. 2026-05-11 17:01:12

KOSPI Hits Record High Amid Semiconductor Surge, Deepening 'K-Shaped' Market The KOSPI has once again reached an all-time high, driven by a rally in major semiconductor stocks, particularly Samsung Electronics and SK Hynix, as the index approaches the 7,900 mark. However, the surge is concentrated on these two large-cap semiconductor companies, exacerbating the 'K-shaped' market phenomenon where performance varies significantly among different sectors. On this day, the KOSPI closed at 7,822.24, marking a record high with an increase of 324.24 points (4.32%) from the previous trading day, which closed at 7,498.00. The index has surged over 54% since the end of March, when it stood at 5,052.46. Compared to the closing figure of 4,214.17 at the end of last year, the KOSPI has risen by 85.62% this year. Market analysts are optimistic, with domestic brokerages suggesting that the KOSPI could surpass 8,000 and even reach 9,000. Foreign investment bank JP Morgan has projected that the index could exceed 10,000. The recent upward trend is largely attributed to the semiconductor sector. On this day, Samsung Electronics and SK Hynix saw their shares rise by 6% and 13%, respectively, fueled by growing expectations for increased demand for AI semiconductors. However, the concentration of gains in the semiconductor sector raises concerns. The recent rise in the domestic stock market has increasingly focused on Samsung Electronics and SK Hynix. On this day, the combined market capitalization of Samsung Electronics (including preferred shares), SK Hynix, and SK Square accounted for 52% of the KOSPI's total market cap. Among the 34 KRX indices calculated by the Korea Exchange, all nine indices with the highest recent gains included Samsung Electronics and SK Hynix. The semiconductor index topped the list with a 22.98% increase, followed by the value-up index at 22.16%. The average increase for indices that included these two stocks was 19.45%, while the average for other indices without them was only 0.27%. This indicates a market where returns are heavily influenced by the inclusion of major semiconductor stocks. The trend of concentration is also evident in trading volumes. The average daily trading volume of the KOSPI this month reached 48.4982 trillion won, a 64.1% increase from last month's 29.555 trillion won. In contrast, the average daily trading volume decreased from 947.18 million shares to 773.96 million shares, reflecting a decline in the number of traded stocks but a surge in trading volume for specific large-cap stocks. So far this month, the average daily trading volume for Samsung Electronics and SK Hynix combined has reached 74.5353 trillion won, accounting for 37% of the total KOSPI trading volume. Including Samsung Electronics' preferred shares and SK Square, the combined share of these four stocks rises to 42%, up from 34.6% last month, indicating a deepening concentration trend. Market experts believe there is still potential for further KOSPI gains. Analysts suggest that while the current concentration in the semiconductor sector may continue for some time, there is also a possibility that market momentum could gradually spread to other sectors. Kim Jong-min, a researcher at Samsung Securities, noted in a recent report, "Behind the explosive rise lies extreme polarization in returns. In the future, we are likely to see a rotation of investments toward semiconductor materials, alternative energy, and physical AI beneficiaries." He added, "A gradual rotation following extreme concentration could serve as a stepping stone for the KOSPI's resurgence."* This article has been translated by AI. 2026-05-11 16:59:49

Memorial space for Korean War heroes set to open at Gwanghwamun SEOUL, May 11 (AJP) - A memorial garden honoring soldiers who died in the Korean War and other war veterans is set to open this week at Gwanghwamun in central Seoul, according to the Seoul Metropolitan Government. City officials and workers were busy making final preparations on Monday, just a day ahead of the opening of the space, dubbed the "Garden of Gratitude," which commemorates the sacrifices and contributions of around 22 countries that sent troops and provided support during the 1950–53 Korean War. The space also features an installation selected through a public competition. The 6.25-meter-tall piece includes 23 rifle-shaped sculptures, symbolizing the countries that assisted during the war. City officials said the space is expected to give visitors a place to reflect on the history of the Korean War and international solidarity. Earlier in 2024, the city government initially proposed erecting a 100-meter-tall flagpole to hoist a giant national flag as a new symbol meant to inspire patriotism. But the plan immediately sparked controversy, with critics arguing it would be excessive and a waste of public funds, and was eventually scrapped. 2026-05-11 16:58:05

Toss Bank Hires Strategy Expert Amid Focus on Expanding Loans for Low-Middle Credit Borrowers Amid growing concerns over the practice of "cherry-picking" high-quality customers by internet banks, Toss Bank has taken steps to improve its operations by hiring a strategy expert from Coupang. With the average credit score of its borrowers being higher than that of traditional banks, Toss Bank faces the challenge of expanding loans for low and middle credit borrowers while balancing profitability and soundness.According to the financial sector on May 11, Toss Bank has established a new position for Chief Strategy Officer and appointed Im Seung-hyun to the role.The creation of this position aims to accelerate the company’s overall strategy and strengthen its role as a strategic hub directly connected to various business departments. Born in 1985, Im has extensive experience in strategic planning at various platform companies, including Coupang and Deloitte Consulting.Im is expected to play a central role in strategy and operations to achieve common goals based on a deep understanding of the business and execution capabilities.He is also anticipated to prioritize the expansion of loans for low and middle credit borrowers. The proportion of low and middle credit borrowers at internet banks has increased from 30% to 32% this year. On May 3, Kim Yong-beom, head of the policy office, criticized the practice of cherry-picking, stating on Facebook, "Cherry-picking is not the mission of internet banks."As of the end of last year, Toss Bank's loans to low and middle credit borrowers accounted for 34.9%, exceeding the government’s benchmark of 30%. However, the reality remains that loans are primarily granted to high-credit borrowers. According to the Korea Bankers Association, the average credit score of Toss Bank's general credit loan customers last month was 930, higher than that of Shinhan Bank (911), Hana Bank (911), and Woori Bank (928), based on Korea Credit Bureau (KCB) standards.Thus, reducing loans to high-credit borrowers or increasing loans to low-credit borrowers will likely be Im's first task in response to government demands. To increase loans for low and middle credit borrowers while maintaining soundness, enhancing alternative credit assessment models (CSS) will be necessary. Im is expected to leverage his experience in data to identify suitable low and middle credit borrowers.Additionally, to support the continued expansion of loans for low and middle credit borrowers, it will be essential to back this with secured loans and loans to large corporations. Therefore, diversifying mortgage products and personal business loans will also be key responsibilities for Im this year.Furthermore, he will need to explore ways to increase non-interest income and seek new business opportunities, such as stablecoins, to support reduced lending. Plans to enter the fund direct sales market, as well as the trust and retirement pension markets, and to develop financial services for senior customers and expand guarantee-based loans, will be additional tasks for Im.A financial industry source stated, "As we enter the fifth year of operations, we have reached an important turning point," adding, "The creation of this position is intended to accelerate efforts in inclusive finance, non-interest income, new business, and product partnerships." 2026-05-11 16:57:35

Han Byeong-do: Democratic Party Did Not Disadvantage Kim Kwan-young Han Byeong-do, floor leader of the Democratic Party, stated on May 11 that "to realize physical AI and promote the development of Jeonbuk, a candidate from the ruling party must be elected." He firmly rejected claims by Kim Kwan-young, the former governor of Jeonbuk who was expelled from the party over allegations of distributing money envelopes, that he faced disadvantages from the Democratic Party, saying, "That is absolutely not the case." During a press conference held in Jeonbuk, Han emphasized that there was no dissent among the party's top officials regarding the investigation results concerning Governor Kim, stating, "Not a single member expressed disagreement with the findings." He also addressed public concerns about the fairness of Kim's expulsion, suggesting that a clear explanation is necessary. He contrasted this with the investigation results regarding Lee Won-taek, who faced allegations of covering meal expenses, asserting that no issues were found in that case. Additionally, Han mentioned Ahn Ho-young, a lawmaker who staged a hunger strike during the party's primary process, expressing confidence that Ahn would take the lead in ensuring the Democratic Party's victory. Responding to opinions suggesting that the upcoming Jeonbuk gubernatorial election is a battle between pro-Lee and pro-Cho factions, Han clarified, "In the Lee Jae-myung administration, there are no pro-Lee and pro-Cho factions. It is all pro-Lee."* This article has been translated by AI. 2026-05-11 16:47:34

LG Electronics to supply OLED monitors for Hyundai's N racing simulators SEOUL, May 11 (AJP) - LG Electronics (LGE) announced Monday it will supply high-end OLED monitors for Hyundai Motor’s high-performance "Hyundai N Racing Simulator," expanding its display business into the virtual driving sector. Under the partnership, LG will provide the 65-inch LG OLED Pro monitor for the "Pro" simulator model and 65-inch OLED TVs for the "Racer" model. The professional-grade OLED Pro features 4K resolution and a specialized interface designed to transmit high-capacity data without compression, ensuring stable performance for high-definition virtual environments. The monitors are equipped with self-calibration tools and optimization features that maintain uniform brightness and color accuracy, according to the company. While LG’s OLED Pro series has primarily been utilized in broadcasting and film production, this collaboration marks a strategic push to diversify its client base into the simulation market. The move aligns with LGE's broader strategy to leverage its OLED and signage competitiveness to secure bespoke business opportunities across various industrial fields. 2026-05-11 16:46:57

Special Prosecutor's Office Marks 75 Days of Investigation with Limited Progress The second comprehensive special prosecutor team, led by Kwon Chang-young, marked its 75th day of investigation on May 11. As the investigation period, set for a maximum of 150 days, reaches its halfway point, search and seizure operations and witness interrogations continue. However, the team has yet to secure the detention of key suspects or move to the indictment stage. The special prosecutor is focusing on the investigation into the alleged conspiracy to commit murder for rebellion related to the 'Noh Sang-won notebook' in hopes of finding a breakthrough. Since its launch on February 25, the special prosecutor's office announced its first investigation results last week. It cleared Kim Kwan-young, the former governor of North Jeolla Province, and Oh Young-hoon, the governor of Jeju Province, of charges related to the martial law situation on December 3, citing a lack of evidence to support the allegations. The case against Kim was initiated following a complaint from the Justice Innovation Party, but the special prosecutor determined there was insufficient evidence to substantiate the claims. Similarly, the case against Oh was closed without further judgment, as no new evidence emerged since the previous investigation into the rebellion last year. While these two cases were deemed to have relatively limited issues compared to other major allegations under investigation, it took nearly two months to reach a conclusion. Legal experts note that although forced investigations and data collection are ongoing, there has been little clear progress toward interrogating key suspects or moving toward indictments. Some observers have pointed out that this contrasts with the earlier special investigation teams, which sought to secure the detention of key suspects, including former President Yoon Suk-yeol and Kim Geon-hee, from the outset. The comprehensive special prosecutor's office has also been investigating allegations of complicity in rebellion involving the Joint Chiefs of Staff leadership and claims of covering up the investigation into Kim Geon-hee, but has not yet moved to request arrest warrants or indictments against major suspects. During a briefing on the same day, the special prosecutor's office stated that related investigations are ongoing. They are continuing searches at the Gwangju Center of the National Intelligence Resource Management Agency related to former Prosecutor General Shim Woo-jung's allegations of important duties in rebellion and abuse of power. Additionally, after the Supreme Prosecutors' Office refused to submit materials for a constitutional respect task force, they executed a search warrant to secure relevant documents. In connection with the allegations of covering up the Deutsche Motors stock manipulation case, the prosecutor's office is also conducting witness interrogations of the prosecutors involved in the investigation at that time. Furthermore, searches have been conducted regarding the allegations of Kim Geon-hee receiving a Dior bag. The special prosecutor's office is also pursuing allegations of complicity in rebellion within the Joint Chiefs of Staff. They reported conducting the first suspect interrogation of a Joint Chiefs of Staff official last week. In relation to the blacklist allegations involving the Military Counterintelligence Command, they executed a verification warrant to check personnel information databases. Recently, the focus has shifted significantly to the investigation related to the 'Noh Sang-won notebook.' Following verification at facilities in Yeonpyeong on May 6 and in Gwanak-gu, Seoul, on May 8, the special prosecutor's office is examining whether these locations could have served as detention sites for key figures listed in the notebook. The special prosecutor's office explained that the verification aims to confirm whether the facilities have the structure and environment suitable for use as detention sites. This is part of their efforts to substantiate the allegations against former Intelligence Commander Noh Sang-won regarding conspiracy to commit murder for rebellion. The investigation has also expanded to include charges against former Defense Minister Kim Yong-hyun and Noh for organizing a criminal group. In the legal community, opinions are divided on the effectiveness of applying additional charges to already indicted facts related to rebellion. Given the broad scope of the investigation, there are calls for focused efforts in the remaining time. Additionally, the special prosecutor's office is looking into allegations of preferential treatment in the Yangpyeong Expressway project, the cover-up of gambling investigations involving the Unification Church, and illegal budget execution related to the relocation of the presidential office. Kim O-jin, former first vice minister of the Ministry of Land, Infrastructure and Transport, is scheduled to be investigated on May 13, followed by Yoon Jae-soon, former chief secretary to the president, on May 14, and Kim Dae-ki, former head of the presidential office, on May 15, all for abuse of power. However, it is anticipated that investigations involving related parties and data collection will take considerable time, raising concerns about the potential for prolonged investigations.* This article has been translated by AI. 2026-05-11 16:45:08

Hanwha Aerospace to supply additional Chunmoo launchers to Estonia SEOUL, May 11 (AJP) - Hanwha Aerospace will supply three additional Chunmoo multiple rocket launchers to Estonia, the company said Monday, marking a follow-up deal just five months after its first contract with the Baltic nation. The latest purchase reflects the growing defense partnership between South Korea and Estonia, which began with Estonia’s acquisition of K9 self-propelled howitzers and has since expanded to include precision-guided multiple rocket launchers. Hanwha Aerospace said the additional supply was confirmed after the Korea Trade-Investment Promotion Agency (KOTRA) and the Estonian Centre for Defence Investments (ECDI) signed a government-to-government export contract earlier in the day. The deal follows a contract signed in December last year, worth about 290 million euros, or around $336 million based on the exchange rate at the time. The initial agreement included six Chunmoo launchers, three types of missiles — the CGR-080, CTM-MR and CTM-290 — as well as operational and training support. Estonia is currently moving quickly to acquire and modernize a multiple rocket launcher capability under its National Defence Development Plan 2031, known as RKAK 2031. The follow-up contract is seen as a result of Hanwha’s ability to meet Estonia’s delivery requirements and the trust built between the two sides during the implementation of the first contract. “The additional purchase of three Chunmoo launchers is highly significant for strengthening Estonia’s defense capabilities,” Estonian Defense Minister Hanno Pevkur said. “It also shows that our cooperation with Hanwha continues to deepen.” “We are pleased to further contribute to strengthening Estonia’s national defense and defense industry ecosystem through this additional supply,” Hanwha Aerospace CEO Son Jae-il said. “We will continue to introduce Hanwha’s defense solutions across the Baltic region and strengthen our position as Estonia’s trusted strategic partner.” 2026-05-11 16:44:04

How to Win Against Narcissists: New Book Offers Insights Safe Breakup with X = Written by Rebecca Jung, translated by Ko Young-hoon, published by Think Station. The author, an American lawyer and negotiation expert, has developed the "Safe Breakup Formula (SLAY Method)" to help individuals win against narcissists. A mixed-race individual of Chinese descent, he overcame childhood experiences of racism but later fell into despair after encountering a narcissistic business partner. This experience led him to delve deeply into the nature of narcissists, resulting in his own "Narcissist Defeating Formula." Narcissists typically approach their victims with excessive praise and affection, a tactic known as "love bombing." They then employ a "hot and cold" strategy, ridiculing their victims behind their backs or humiliating them in public. They also use "flying monkeys"—people around them—to demonize their victims. Narcissists employ various strategies, such as emotional invalidation and projection, to crush their opponents. The author asserts that narcissists are not ordinary people, and conventional methods will not work against them. He advises maintaining composure, focusing on written communication, and keeping records of texts and emails. Phrases like "I will not respond to that" can disarm narcissists. Keeping a detailed daily log and creating a timeline of events can help individuals avoid being manipulated in future confrontations. "I loved the movie . Looking back, Oz shares many traits with narcissists. Behind the curtain, he was actually a cowardly and pathetic little man. Dorothy, the Scarecrow, the Tin Man, and the Cowardly Lion believed he was all-knowing and could provide everything, but they ultimately realized they needed to find the answers within themselves. At the end of the movie, Dorothy clicks the heels of her red shoes to return home, symbolizing her return to her true self. The Safe Breakup Formula reveals the narcissist by pulling back that curtain or threatening to do so." (p. 41) The Land That Deceived Three Times = Written by Je Yun-kyung, published by Icon. The author, a former finance professional and civic activist, has woven the structures of failure and accountability he witnessed in finance, politics, and civic movements into a novel. The book realistically depicts why development projects and public policies often fail and the lack of accountability in these processes. It is an engaging read for those curious about the reasons behind the frequent failures of major development projects and public policies reported in the news or for readers seeking to understand politics and administration through real-life narratives rather than theory. This novel, described as a "hyper-realistic black comedy," traces how a local development project culminated in failure over 15 years. Set in the fictional coastal city of "Reed Bay," it repeatedly presents rosy promises of wealth through land reclamation, plans to attract large corporations and global universities, and investment agreements worth trillions of won. However, the reality left behind is one of construction halts, lawsuits, and massive debts, with no one taking responsibility. The novel also reflects the author's hometown story. Returning to his hometown of Hadong, the author witnessed a series of absurd scams and remarked, "It was such an unbelievable reality that I had no choice but to write it as a novel. The landscape I faced upon returning home was too absurd to be a tragedy and too tragic to be a comedy, making it impossible to comprehend with a sane mind." "There are people who are deceived, but those who deceive are nowhere to be found." Duri slowly walked along the embankment, separating the land and marine departments of Reed Bay. The once-praised "artery of industry" was now overgrown with reeds beside the drainage ditch. Whenever the wind blew, the reeds seemed to nod to each other, as if holding a secret meeting." (p. 10) * This article has been translated by AI. 2026-05-11 16:42:25

People Power Party Launches Election Campaign in Ulsan, Targets Yeongnam Region People Power Party held a campaign launch event in Ulsan on May 11, aiming to secure votes in the Yeongnam region. The party called for overwhelming support for its Ulsan mayoral candidate Kim Du-gyeom and National Assembly candidate Kim Tae-kyu while also countering Democratic Party candidate Kim Sang-wook, who switched parties after leaving People Power Party.At the event, Jang Dong-hyuk, the party leader, stated, "This local election is a war to protect Ulsan and South Korea. I urge you to judge the forces that ignore the people and trample on the Constitution, which are destroying the roots of our nation, in this election."Jang criticized the current state of law enforcement and media, saying, "The prosecution has been dismantled, the police have become slaves to power, and now the media can no longer represent the people freely. The judiciary has also been seized. Now, they are even considering a special investigation to erase the president's crimes. This is unimaginable."He added, "If a special investigation to dismiss charges against the president passes, this will not be a country anymore. We must secure victory in Ulsan to resume Lee Jae-myung's trial and send him to prison."Jang praised Kim Du-gyeom, saying, "He has extensive political experience and administrative expertise. No matter how difficult it gets, he has stood by People Power Party and protected Ulsan."In contrast, he targeted Kim Sang-wook, stating, "Can someone who set fire to the boat they were on during a storm and escaped in a lifeboat be responsible for the citizens of Ulsan? Show with your votes what the price of betraying the citizens who elected you is in this election."Floor leader Song Eon-seok emphasized, "One must not forget their roots. It is unacceptable to spit on the party that nurtured you and the residents who elected you. Allowing such betrayal would tarnish the pride of Ulsan citizens."He expressed confidence in Kim Tae-kyu's victory, stating, "I believe the victory for Ulsan mayor is already secured. To restore the National Assembly's Science, Technology, Information, and Broadcasting Committee, we need someone who is well-versed in that work."Jang Dong-hyuk and the party leadership are continuing their regional campaign schedule, having visited Busan and Daegu the previous day, and are now focusing on solidifying their support in conservative strongholds. Jang plans to expand his outreach by visiting the Chungnam and Gyeongbuk party offices on May 12.* This article has been translated by AI. 2026-05-11 16:40:14