South Korea gears up for local elections SUWON, April 13 (AJP) - With just two months left until local elections, large banners have begun appearing across the country, urging voters to cast their ballots. This year's local elections to elect about 4,000 metropolitan mayors, provincial governors and other heads of local governments nationwide are slated for June 3. 2026-04-13 17:49:54

Union Berlin Names Marie-Louise Eta as Interim Coach, First Woman to Lead a Top 5 Men’s League Club Germany’s Union Berlin, the club of South Korea international Jeong Woo-yeong, has appointed a woman to lead a men’s first team in Europe’s top five leagues for the first time. The Berlin club said on the 12th (Korean time) it named coach Marie-Louise Eta interim head coach to replace Steffen Baumgart, who was fired after poor results. Eta is the first woman to take charge of a senior men’s first team across the English Premier League, Spain’s La Liga, Germany’s Bundesliga, Italy’s Serie A and France’s Ligue 1. She will lead Union through the end of the season, with five matches left and the goal of staying in the top flight. Union is 11th at 8-8-13 (32 points), seven points clear of 16th-place St. Pauli at 6-7-16 (25 points). Eta won league and UEFA Women’s Champions League titles as a player with Turbine Potsdam. After retiring in 2018, she coached Werder Bremen’s youth teams and Germany’s age-group national teams, building her career in the men’s game. She drew attention in 2023 when Union appointed her the Bundesliga’s first female assistant coach. She later coached the club’s under-19 team. “I’m grateful the club trusted me with this challenging task,” Eta said. “Union’s strength is sticking together in a crisis. Together with the team, I will make sure we earn the points we need to stay in the Bundesliga.” Jeong, who has moved between the starting lineup and the bench, has four goals and one assist in all competitions this season.* This article has been translated by AI. 2026-04-13 17:45:00

Finance chief to attend series of key financial meetings in US this week SEOUL, April 13 (AJP) - Finance Minister Koo Yun-cheol is set to depart for the U.S. on Monday to attend a series of international meetings and other events, the Ministry of Finance and Economy said on Monday. Koo is scheduled to host an investor blitz in New York on Tuesday for major global investment banks, outlining South Korea's economic fundamentals and key policy priorities to attract investment in the country. He will also meet top executives of global asset managers to discuss global economic and financial market trends and seek support for the government's efforts to reform foreign exchange and capital markets. Koo will then travel to Washington, D.C. later in the week to attend the G20 Finance Ministers and Central Bank Governors Meeting, which coincides with the annual gatherings of the International Monetary Fund (IMF) and the World Bank. Participants are expected to discuss constraints on global economic growth and imbalances among countries, as well as ways to boost investment. During the trip, Koo is also scheduled to meet the heads of international financial institutions including the IMF, World Bank, Inter-American Development Bank, and Asian Infrastructure Investment Bank, as well as finance ministers from major countries including Australia, France and Uzbekistan. 2026-04-13 17:32:48

WGBI impact muted as external shocks pressure Korean bonds, won SEOUL, April 13 (AJP) - South Korean sovereigns joining the World Government Bond Index (WGBI) hardly proved to be a magic wand for both the currency and bonds in the first month. Extraordinary factors — including escalating Middle East conflicts and a shifting interest rate and inflation environment — have partly undermined the honeymoon period. Some experts say Korea’s structural challenges run too deep to rely simply on a WGBI boost. Since FTSE Russell began including Korean bonds in the WGBI on April 1, authorities have highlighted expectations of strong foreign inflows to ease pressure on the won and bond market. Finance Minister Gu Yun-cheol reiterated that stance Friday, pointing to foreign net purchases of 6.8 trillion won ($4.57 billion) in government bonds so far this month. Yet the impact on markets has been limited. Despite steady foreign buying, the won and bonds have shown little sign of relief. Entering its third week of inclusion, the Korean won closed Monday at 1,489.3 per dollar and has hovered near the 1,500 level — territory last seen in the aftermath of the 2008 global financial crisis. The bond market has shown similar strain. The three-year government bond yield rose 4.7 basis points to 3.407 percent, while the 10-year yield climbed 5.7 basis points to 3.743 percent — still 30 to 40 basis points higher than at the start of the year. Foreign participation has also underwhelmed relative to expectations. According to the Korea Financial Investment Association (KOFIA), foreign holdings of domestic bonds stood at 340.4 trillion won at the end of March, down 10.2 trillion won from a month earlier. A key driver has been the shift in the rate environment. The Hyundai Research Institute warned that if Middle East maritime disruptions persist and oil prices exceed $100 per barrel, South Korea’s consumer inflation could rise to 3.1 percent — more than one percentage point above the Bank of Korea’s 2 percent target. That outlook is pushing the central bank toward a more hawkish stance. After removing references to a rate cut in January, the Bank of Korea is now widely expected to consider rate hikes as early as July, reinforced by the policy stance of governor-nominee Shin Hyun-song. Major financial institutions, including Shinyoung Securities and Citi, say this shift is reducing the relative attractiveness of Korean bonds and diluting the impact of WGBI inclusion. Such over-optimism is not new. New Zealand, which began phased inclusion in the WGBI in November 2022, initially expected $4.5 billion in inflows. However, aggressive rate hikes by the Reserve Bank of New Zealand in response to inflation reduced actual inflows to roughly one-third of that estimate. South Africa offers a similar case. Despite high yields — with its 10-year bond yield around 8.4 percent — the rand weakened 5.9 percent as of April 7 from February levels, a steeper decline than the won’s 4.3 percent drop over the same period. Analysts attribute this to the high share of foreign ownership in South African bonds, about 40 percent compared with Korea’s 15 percent, which amplifies capital outflow risks. Broader structural factors, including social instability, have also weighed on investor sentiment. Experts stress that strengthening economic fundamentals must take priority over one-off catalysts such as index inclusion. Reflecting concerns over Korea’s heavy reliance on Middle East energy supply chains, Natixis recently cut its growth forecast for the country to 1.0 percent from 1.8 percent, well below the OECD average of 1.7 percent. “We must abandon the illusion that WGBI inclusion alone will dictate the trajectory of bonds and the exchange rate,” said Kim Chan-hee, an analyst at Shinhan Securities, pointing to the need to address structural vulnerabilities such as energy dependence. Goldman Sachs echoed that view, noting that capital flows are driven primarily by global rates and risk sentiment rather than index events, and that improving the structural appeal of the Korean market remains key to supporting both the won and government bonds. 2026-04-13 17:32:01

Na Hong-jin’s Cannes Competition Film ‘Hope’ Lands NEON for North American Release Na Hong-jin’s new film “Hope” (HOPE), invited to compete at the 79th Cannes Film Festival, has secured a North American release through a partnership with U.S. distributor NEON. Founded in 2017, NEON has handled North American distribution for high-profile international titles, including multiple Palme d’Or winners at Cannes and an Academy Award best picture winner. NEON has brought a run of Cannes Palme d’Or winners to North American audiences since 2019, including Bong Joon-ho’s “Parasite,” “Titane,” “Triangle of Sadness,” “Anatomy of a Fall,” “Anora” and “It Was Just an Accident.” With the new deal, NEON is set to present six films at the 79th Cannes Film Festival across competition and noncompetition sections, including “Hope,” “Sheep in a Box” and “Suddenly Worsening Condition.” NEON also recently handled North American distribution for Park Chan-wook’s “No Choice,” continuing its role in expanding the global reach of Korean cinema. In a statement on taking North American distribution rights for “Hope,” NEON said it was “very pleased” to partner with the “one and only” Na, along with Forged Films and Plus M Entertainment, to bring the film to audiences worldwide, adding, “Please look forward to it.” “Hope” begins at a police outpost in Hopohang, near the Demilitarized Zone, where chief Beomseok hears from local young men that a tiger has appeared, putting the village on alert as he confronts an unbelievable reality. The film is Na’s first in 10 years since “The Wailing.” It is set to premiere as a world premiere at Cannes in May and is scheduled to reach theaters this summer.* This article has been translated by AI. 2026-04-13 17:30:18

INTERVIEW: BTS wear them, but hanbok is still misunderstood SEOUL, April 13 (AJP) — Hanbok is everywhere — on global stages, red carpets and tourist hotspots. Recognition, however, remains elusive. From BTS’s Gwanghwamun comeback performance in armor-inspired hanbok to the Oscar-stage showcase of K-pop Demon Hunters, Korean traditional dress is increasingly projected onto the global screen. The imagery travels easily. It resonates visually. To many, it simply registers as something “cool.” But familiarity stops there. Samuel Chung, chairman of the Korean Culture Association who has spent nearly two decades promoting hanbok abroad, draws a clear line between exposure and understanding. “It is seriously misleading to think hanbok is as popular as K-wave,” Chung said. “Only about 5 percent of foreigners can truly identify hanbok.” “To the 95 percent, hanbok cannot be differentiated from Chinese clothing hanfu or Japanese kimono.” The disconnect is borne out in data. According to the Ministry of Culture, Sports and Tourism and the Korean Foundation for International Cultural Exchange, favorability toward Korean cultural content reached 69.7 percent in the 2026 Overseas Hallyu Survey. Yet global interest remains concentrated in food, music and television, with traditional culture largely absent from primary recognition categories. “Even when people see hanbok, many can’t tell whether it’s Korean, Japanese or Chinese,” Chung said. “They cannot tell if they are wearing the Korean traditional wardrobe from the giant ads of Korean celebrities at Times Square in New York.” “Simply put, foreigners can tell Shin Ramyun from non-Korean instant noodles, but cannot tell the difference in the traditional Asian wear.” Chung attributes the gap not to a lack of exposure, but to the absence of clear identity-building. “We take it for granted as our own culture, but overseas perception is entirely different,” he said. “The more attention, the greater Korea should pay to the original identity.” That tension is visible on the ground. At major heritage sites such as Gyeongbokgung Palace and Bukchon Hanok Village, hanbok-clad visitors have become a defining scene. The number has surged from about 150,000 in 2020 to more than 2 million in 2024, according to the Korea Heritage Service. Yet many of the outfits worn by tourists bear only a loose resemblance to traditional hanbok — often simplified, over-stylized and mass-produced abroad. “The rentals not just derail from the original form but also cannot be claimed Korean at all as they are produced in China,” Chung said. Price has driven that shift. A domestically made hanbok costs around 400,000 won, while imported versions can be sourced for as little as 10,000 to 20,000 won. The Korea Heritage Service allows modernized hanbok at palace sites but stresses adherence to core structure, advising against heavily mixed styles such as pairing a jeogori with jeans. For Chung, however, the issue runs deeper than design. He recalls being greeted with “ni hao” while wearing hanbok in front of the Eiffel Tower — a moment that, for him, encapsulates the blurred identity of Korean traditional dress abroad. The problem, he warns, could intensify in the age of artificial intelligence. “The misrepresentation can deepen in the AI era,” he said. “If information and visual references on hanbok lag behind those of kimono or hanfu, distorted perceptions can take hold more quickly.” Concerns are already emerging. Generative AI models often return Japanese-style clothing or mixed East Asian imagery when prompted with “hanbok.” A 2025 study by researchers at Chung-Ang University found that leading vision-language models frequently misidentified hanbok, describing it as Japanese attire or unrelated cultural garments — a pattern attributed to imbalances in training data. The disparity is also visible in global search trends. Interest in “kimono” has consistently outpaced “hanbok” by more than tenfold. “We shouldn’t assume hanbok is widely recognized just because K-pop stars wear it,” Chung said. Efforts to address the gap are now beginning to take shape. First lady Kim Hye-kyung recently hosted a meeting at the presidential office to support UNESCO recognition of hanbok culture, signaling a more coordinated push. “Government moves through systems and policy, while the private sector builds relationships on the ground. Both need to work together,” Chung said. For Chung, the solution begins with familiarity — not as an abstract concept, but as lived experience. “Culture isn’t about competition — it’s about familiarity,” he said. “It spreads not just by being shown, but by being worn and experienced.” His organization has pursued that approach through global events, including fashion shows, exhibitions and the Hanbok Model Contest, which emphasizes participation over spectacle. “Modeling is something anyone can take part in,” Chung said. “In a globally accessible format, it becomes a powerful way to present hanbok visually — even without language.” “The moment someone steps on stage in hanbok, it becomes cultural diplomacy.” Yet at home, hanbok faces a different challenge — one of contraction. “Hanbok has largely disappeared from everyday life and largely exists ceremonial and symbolic,” Chung said. “Hanbok should not be something people simply experience — it should be part of everyday life.” For hanbok to be recognized as distinctly Korean, he argues, it must move beyond being consumed as a “Korean-style” costume. “What is needed now is not the confidence that hanbok is already global, but a recognition that it is still not fully understood.” 2026-04-13 17:29:31

Following the tracks, following the taste (Gangneung) -1 SEOUL, April 13 (AJP) - The journey begins before the sea comes into view.Steel rails draw a quiet line from Seoul to the East Coast, and along that line, time seems to fold. Since the opening of the KTX Gangneung Line in 2017 ahead of the 2018 PyeongChang Winter Olympics, the city has moved closer (two hours) —not just in distance, but in rhythm. What once required a night’s stay now fits within a single day. The train does not merely carry passengers; it reshapes intention. A city once reserved for weekends becomes an impulse, a pause, a breath between obligations. Gangneung is no longer a destination you prepare for. It is a place you slip into. At Anmok Beach, the sea does not rush you. Cafés line the shore like open windows, each framing the same horizon differently. Coffee here is not hurried—it lingers, like the salt in the air. People walk, stop, sit, and stay. Time stretches between sips. What was once a simple coastline has become a choreography of movement and pause. You arrive, you wander, you settle. The act of drinking coffee turns into a way of inhabiting the city.The sea is still the destination. But now, so is everything around it. Around Gyeongpo Lake, the rhythm shifts with the seasons. During spring, cherry blossoms draw crowds along the water, while programs such as the traditional boating experience near Ojukheon add another layer to the landscape. Here, the city extends beyond the shoreline, blending water, season and movement into a broader flow. Wolhwa Street traces the path of a former railway, now softened into a pedestrian corridor. Here, the city breathes differently. Shops, light, and footsteps replace the rumble of steel. The line that once carried people through the city now invites them to linger within it. The coastline no longer holds the entire story. Movement extends inward, weaving the sea into the streets, the journey into the city’s core. Yet beneath these new rhythms, older stories remain. 2026-04-13 17:29:01

Mortgage Rates Near 7% While Deposit Rates Stay in 2% Range, Widening Bank Spreads Mortgage loan rates have pushed toward 7% while deposit rates remain stuck in the 2% to 3% range, widening the gap between what banks charge borrowers and what they pay savers. With loan rates jumping amid the Middle East situation, borrowers’ interest burdens are rising. According to the financial sector on the 13th, fixed-rate (five-year) mortgage rates at the five major commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — stood at 4.16% to 6.76% a year, with the top end nearing 7%. The upper bound briefly exceeded 7% as of March 27 after the benchmark five-year bank bond yield (AAA) surged on fallout from the Middle East situation. Deposit rates, however, have remained in the 2% to 3% range, widening the spread. Disclosures from the Korea Federation of Banks show the headline rates on the five banks’ flagship 12-month time deposits at 2.85% to 3.10% a year. Base rates, excluding preferential rates, were in the low 2% range. Loan rates tend to move faster than deposit rates because they are set off market benchmarks. Banks typically calculate lending rates by adding a spread to a base rate that reflects indicators such as the Bank of Korea’s policy rate and COFIX (the cost of funds index), then subtracting discounts. Data from the Korea Financial Investment Association show the five-year unsecured AAA bank bond yield rose from 3.57% at the end of February to 4.05% at the end of last month, up nearly 0.5 percentage point. A recent government move to tighten oversight of high-value mortgages by revising contribution rates to the Korea Housing Finance Credit Guarantee Fund has also added upward pressure, as differentiated rates apply to larger loans. Deposit rates that had topped 4% under the high-rate environment fell into the 2% range early this year and have not rebounded. Analysts say tighter household lending rules have curbed loan demand, reducing banks’ need to raise funding and weakening incentives to lift deposit rates. Market watchers expect the widening spread to persist for now. If market rates keep rising while banks maintain a focus on managing household lending, lenders are likely to keep loan rates elevated. The Bank of Korea has held its policy rate at 2.5% for seven straight meetings, but expectations of a rate hike later this year continue to circulate, also supporting higher loan rates. The concern is that a wider spread translates directly into heavier interest burdens for borrowers. The Bank of Korea said variable-rate loans accounted for 28.9% of outstanding mortgages as of the end of February, the highest level in three years and seven months. As rates rise, more borrowers are falling behind. A Financial Supervisory Service survey found the delinquency rate on banks’ household loans was 0.42% at the end of January, up 0.04 percentage point from a month earlier. Mortgage delinquencies rose 0.02 percentage point to 0.29%. A financial industry official said uncertainty has not fully eased and some analyses suggest central banks at home and abroad could begin raising policy rates in the second half even if they do not move immediately. The official added that market rates feed quickly into loan rates while deposit rates tend to follow later, making the widening spread difficult to reverse soon.* This article has been translated by AI. 2026-04-13 17:21:00

Korean Air posts record Q1 revenue as Middle East risks loom SEOUL, April 13 (AJP) - Korean Air posted record first-quarter revenue despite rising geopolitical risks in the Middle East. The airline said Monday it recorded 4.52 trillion won ($3.03 billion) in revenue and 516.9 billion won in operating profit for the first quarter on a standalone basis. Revenue rose 14.1 percent from a year earlier, marking the highest first-quarter performance in the company’s history. Operating profit climbed 47.3 percent year-on-year, while net profit increased 25.6 percent to 242.7 billion won. Korean Air said both passenger and cargo businesses contributed to improved earnings despite ongoing instability in the Middle East. Passenger revenue rose 7.3 percent from a year earlier to 2.61 trillion won, supported by solid travel demand during the Lunar New Year holiday in February and increased sales on key transfer routes, including Europe. Industry officials said disruptions at Middle Eastern airports, including Dubai, due to the regional conflict may have boosted transfer demand through Asian hub airports such as Incheon. According to aviation data from the Ministry of Land, Infrastructure and Transport, Korean Air carried 8.04 million passengers in the first quarter, up 5 percent from a year earlier. Cargo revenue increased 3.5 percent to 1.09 trillion won. The airline attributed the growth to expanding fixed-volume contracts and flexible route operations, including additional charter and ad hoc flights on strong-demand routes to North America. Cargo volume reached 431,500 tons, up 2.7 percent from the same period last year. However, Korean Air warned that the impact of geopolitical tensions in the Middle East would likely intensify in the second quarter, as rising fuel costs and exchange rate volatility weigh on profitability. A Korean Air official said the airline had shifted to an emergency management in April to prepare for surging fuel costs and would pursue cost efficiency measures. “We are strengthening our financial fundamentals and using this period as an opportunity to build a stable foundation for future growth,” the official said. 2026-04-13 17:10:48

Korean stocks fall as Hormuz blockade threat triggers risk-off SEOUL, April 13 (AJP) — Korean stocks closed lower Monday as investors moved to the sidelines amid fresh uncertainty in the Middle East, following U.S. threats to launch a maritime blockage operation in the Strait of Hormuz starting later in the day. The benchmark KOSPI fell 0.9 percent to 5,808.6, after trading between a high of 5,827.73 and a low of 5,730.23. Regional markets moved in tandem. Japan’s Nikkei 225 declined 0.7 percent and Hong Kong’s Hang Seng Index dropped 1.2 percent, while China’s Shanghai Composite Index edged up 0.06 percent, the only major market in the region to remain in positive territory. Investor positioning reflected a clear shift to risk aversion. Foreign investors sold a net 456.4 billion won ($306.6 million), while institutions offloaded 701.6 billion won. Retail investors absorbed the selling, buying a net 750 billion won. The retreat came as oil prices surged on escalating geopolitical tensions. Brent crude jumped 6.8 percent to $101.6 a barrel, while West Texas Intermediate rose 7.3 percent to $103.6, after Washington moved to impose targeted maritime restrictions on vessels linked to Iranian ports following failed weekend negotiations. The escalation followed the collapse of ceasefire talks between the United States and Iran in Islamabad, with both sides trading blame for the breakdown, deepening uncertainty over energy supply routes through the Gulf. Large-cap stocks in Seoul were broadly weaker. Samsung Electronics fell 2.4 percent to 201,000 won, Hyundai Motor dropped 2.3 percent to 478,500 won, LG Energy Solution declined 2.6 percent to 401,500 won, and Samsung Biologics slipped 1.3 percent. In contrast, SK hynix rose 1.3 percent to 1,040,000 won, extending gains in line with global semiconductor strength, as the Philadelphia Semiconductor Index advanced 2.3 percent. Hanwha Aerospace also added 1.5 percent. Losses were concentrated in industrial and cyclical sectors. Doosan Enerbility fell 0.9 percent, while the KRX Construction Index dropped 1.6 percent to 1,721.7, as expectations for Middle East reconstruction demand weakened after the diplomatic breakdown. Despite the decline, volatility remained relatively contained. The CBOE Volatility Index fell 1.3 percent to 19.23, suggesting markets are still pricing in a controlled disruption rather than a full-scale supply shock. In currency markets, the won strengthened slightly to 1,488.7 per dollar, while the dollar index rose 0.3 percent to 98.99. The junior KOSDAQ outperformed, rising 0.6 percent to 1,099.8. Retail investors led gains on the secondary board, buying a net 264 billion won, while foreign and institutional investors sold 148.7 billion won and 93.2 billion won, respectively. Sector gains were concentrated in digital infrastructure themes. Optical communication stocks surged 10.5 percent, while telecom equipment and 5G-related shares climbed 10.4 percent and 7.8 percent. Among notable movers, Silicon Two jumped 10.7 percent to 47,200 won, while Pearl Abyss rose 3.1 percent to 57,300 won. EcoPro fell 1.8 percent to 143,700 won, extending weakness in secondary battery shares. 2026-04-13 17:09:57