Korea’s Resident Foreign-Currency Deposits Post Record $15.37B Drop as Won Slides Into 1,500s Resident foreign-currency deposits in South Korea posted their biggest monthly drop on record last month as the won-dollar exchange rate surged and moved in the 1,500-won range. The Bank of Korea said increased demand for currency exchange and outflows tied to overseas investment both weighed on balances. According to the central bank’s “Trends in Resident Foreign-Currency Deposits” released on April 22, resident FX deposits at foreign-exchange banks totaled $102.17 billion at the end of March, down $15.37 billion from a month earlier. Resident FX deposits refer to foreign-currency deposits held domestically by Korean nationals and companies, foreigners who have lived in South Korea for at least six months, and foreign companies operating in the country. The balance rose in November last year (+$1.7 billion) and December (+$15.9 billion), then fell in January (-$1.4 billion) and February (-$490 million). By currency, dollar deposits totaled $85.64 billion, down $10.36 billion. The central bank cited stronger corporate demand for won and larger currency conversions as the exchange rate rose to 1,530.1 won per dollar at the end of March from 1,439.7 at the end of February. It also pointed to declines in securities firms’ client deposits, overseas investment execution and payments for current transactions. Euro deposits fell $3.28 billion to $6.31 billion, reflecting settlement remittances to overseas parent companies. Yen deposits declined $1.49 billion to $7.82 billion due to securities firms’ client deposits and current-transaction payments. By holder, corporate deposits dropped $13.43 billion to $86.8 billion, while individual deposits fell $1.93 billion to $15.37 billion. By bank type, FX deposits at domestic banks decreased $11.36 billion to $87.24 billion. Deposits at local branches of foreign banks fell $4.0 billion to $14.93 billion.* This article has been translated by AI. 2026-04-22 12:04:47

Korea Fines SM Hwajin, Korea Cubic 2.6 Billion Won for Bid-Rigging Auto Interior Contracts South Korea’s Fair Trade Commission said Tuesday it issued corrective orders and fined SM Hwajin and Korea Cubic a combined 2.6 billion won ($1.9 million) for colluding in bids for surface treatment of vehicle interior materials. The two companies are suppliers to Hyundai and Kia and together hold a 100% share of the automakers’ bidding market for hydrographic transfer, a surface-treatment method used on interior materials, the commission said. The commission said the firms took part in Hyundai and Kia bids held from September 2020 to April 2023 to select contractors for interior surface-treatment work for five new models, including the Sportage, EV9, Santa Fe and EV3. According to the commission, the companies agreed in advance on the expected winners and bid prices. SM Hwajin was to win the interior surface-treatment volume for four models, including the Sportage and EV9, while Korea Cubic was to win the volume for the Palisade. The commission said the conduct violated Article 40(1) of the Monopoly Regulation and Fair Trade Act. It imposed fines totaling 2.591 billion won — 1.632 billion won on SM Hwajin and 959 million won on Korea Cubic — along with corrective orders. The commission said it will strengthen monitoring of collusion in intermediate goods and parts, citing the sector’s broad spillover effects across upstream and downstream industries, and will respond strictly when violations are confirmed.* This article has been translated by AI. 2026-04-22 12:03:27

South Korea’s February Births Rise 13.6% for 20th Straight Month, but Population Still Shrinks South Korea’s number of births in February rose 13.6% from a year earlier, extending an increase to 20 straight months, according to the National Data Center. Births increased in every province and major city, and the total fertility rate moved closer to 1.0. Still, the country’s overall population continued to decline for the 76th consecutive month. In its “February 2026 Population Trends” report released Tuesday, the agency said 22,898 babies were born in February, up 2,747 (13.6%) from the same month a year earlier. Births have been rising for 20 months since July 2024, when they increased 7.8%. The total fertility rate — the average number of children a woman is expected to have over her lifetime — was 0.93, up 0.10 from a year earlier. Births rose year over year in all provinces and major cities. By birth order, the share of first-born children rose 1.2 percentage points from a year earlier, while the shares of second-born and third-or-higher births fell 0.5 and 0.6 points, respectively. Deaths totaled 29,172 in February, down 1,069 (-3.5%) from a year earlier. Deaths increased in five provinces and major cities, including Busan and North Chungcheong, and decreased in 12, including Seoul and Daegu. With deaths exceeding births, the natural population change was minus 6,275. Natural decrease has continued for 76 consecutive months since November 2019, when it was minus 1,685. Marriages, often seen as a leading indicator for births, totaled 18,557, down 811 (-4.2%) from a year earlier. Divorces fell to 6,197, down 1,149 (-15.6%). In the first quarter, the number of people who moved was 1.792 million, up 2.3% (40,000) from a year earlier. The migration rate rose 0.3 percentage points to 14.3%. Net migration by province and major city showed net inflows in seven areas, led by Gyeonggi (11,946), Seoul (3,955) and Incheon (3,740). Ten areas posted net outflows, including South Gyeongsang (-5,707), Gwangju (-3,973) and North Gyeongsang (-3,480). By age, movers were most concentrated in their 20s (453,000) and 30s (378,000). Migration rates were highest among people in their 20s (32.6%) and 30s (23.0%). Last month, 609,000 people moved, up 11.0% from March 2025. The March migration rate — movers per 100 people — was 14.1%, up 1.4 percentage points from a year earlier. Moves within the same province or major city accounted for 61.2%, while moves between provinces and major cities made up 38.8%. From a year earlier, within-area moves rose 9.1% and between-area moves increased 14.5%. Net migration in March showed net inflows in seven areas, including Gyeonggi (2,165), Incheon (1,586) and North Chungcheong (1,533). Net outflows were recorded in South Gyeongsang (-1,648), Gwangju (-1,547) and Ulsan (-1,143). * This article has been translated by AI. 2026-04-22 12:03:00

USFK commander warns against 'political expediency' in wartime opcon transfer SEOUL, April 22 (AJP) - Gen. Xavier Brunson, commander of United States Forces Korea (USFK), warned Tuesday that “political expediency should not outpace the conditions” in discussions over the transfer of wartime operational control (OPCON), as Seoul pushes to complete the transition within the current administration. Testifying before the U.S. Senate Armed Services Committee, Brunson stressed that the focus should remain on meeting the necessary requirements rather than adhering to a fixed timeline. His remarks come as the government of Lee Jae Myung pushes to complete the wartime OPCON transfer within its term, with the timeline to be determined based on agreed conditions under the allies’ framework. “We’ve got to stay focused on the conditions because the United States is safer that way and the Republic of Korea is safer that way,” Brunson said. Under this framework, the OPCON transition hinges on three key conditions: South Korea’s military capability to lead combined defense; the alliance’s comprehensive ability to respond to North Korea’s nuclear and missile threats; and a security environment on the Korean Peninsula and in the broader region conducive to a stable transfer. Seoul’s five-year state policy plan, unveiled in August, includes the goal of reclaiming OPCON, with speculation that a target year for the transition could be proposed at the annual Security Consultative Meeting (SCM) in Washington in October. The USFK commander also reaffirmed his position that the focus of U.S. forces in Korea is shifting from troop levels to capabilities. “The Korean Peninsula is key strategic terrain vital to defending the American homeland and advancing American interests in the region,” he said, noting that USFK is undergoing modernization to address rapidly evolving strategic challenges. “That’s why my focus remains strictly on capabilities over numbers,” Brunson added, emphasizing that while forward deployment remains a baseline, understanding the shift from force size to operational capability requires prioritizing the specific capabilities needed on the peninsula. His remarks come amid broader discussions under the administration of Donald Trump on adjusting the global posture of U.S. forces in line with a new National Security Strategy, fueling speculation that some USFK units could be redeployed or restructured as part of efforts to counter China. Brunson also pointed to USFK participation in Indo-Pacific Command exercises, saying it demonstrates the potential to project capabilities from Korea to support deterrence across the region. His comments are seen as signaling a possible expansion of USFK’s role beyond deterring North Korea to contributing to broader efforts to counter China in the Indo-Pacific. On reports that a Terminal High Altitude Area Defense (THAAD) system had been moved to the Middle East amid tensions involving Iran, Brunson denied any such transfer. “We’ve not moved any THAAD systems. So THAAD still remains on the peninsula currently,” he said, marking the first public confirmation by a senior U.S. official. He added that munitions are being sent “forward” and are “sitting right now waiting to move,” though it remains unclear whether he was referring to THAAD-related components or general ammunition. 2026-04-22 11:57:30

South Korea Returns 12 Chinese Troops’ Remains From Korean War, Resumes Vice-Minister Ceremony South Korea’s Ministry of National Defense said it held the 13th handover ceremony for the remains of Chinese troops from the 6·25 War on the morning of April 22 at Incheon International Airport. The ministry said the event was co-hosted by Defense Vice Minister Lee Doo-hee and Xu Yao, a vice minister at China’s Ministry of Veterans Affairs. South Korea repatriated 12 sets of remains this year. From 2014 through last year, it returned a total of 1,011 sets, bringing the cumulative number repatriated to 1,023, the ministry said. The ceremony included the signing of documents for the transfer, a Chinese memorial service, the movement of the remains and placement aboard a military aircraft, and remarks by representatives from both sides. South Korea has held official events, including handover ceremonies, each year since 2014. It skipped public ceremonies for the 11th repatriation in November 2024 and for last year’s 12th repatriation, then resumed a vice-minister-level public event for the first time in three years. China Central Television reported that China’s delegation tasked with receiving the remains of Chinese People’s Volunteers soldiers in South Korea departed for South Korea on April 19 and was to take custody of the remains on April 22 before returning. CCTV said China deployed its newest large transport aircraft, the Y-20B, for the mission. * This article has been translated by AI. 2026-04-22 11:45:00

Toyota Indonesia Unit to Produce Hybrid Battery Cells, Modules With China’s CATL Toyota Motor Manufacturing Indonesia, Toyota Motor Corp.’s manufacturing unit in Indonesia, said on the 20th it will work with China’s automotive battery maker CATL to produce battery cells and modules for hybrid vehicles. TMMIN said it will invest 1.3 trillion rupiah (about 12.0639 billion yen) and plans to begin exports in the second half of this year. The cells and modules, now largely imported, will be made at a CATL plant being built in West Java. TMMIN currently packages batteries for hybrid versions of the multipurpose vehicle KIJANG INNOVA ZENIX, the small MPV VELOZ and the small SUV YARiS CROSS at its Karawang plant in the same province. By producing cells and modules locally, the company aims to raise the local content ratio, known as TKDN. TMMIN said the project will help develop Indonesian talent, reduce reliance on imports and strengthen Indonesia’s position as a production and export hub for vehicles and auto parts. CATL, through its subsidiary CBL, is also pursuing an integrated production project with Indonesian state-owned companies, including Indonesia Battery Corp., a holding company for automotive battery manufacturing, and mining firm Aneka Tambang Tbk. The project includes a nickel smelter and an electric-vehicle battery plant. Nickel is also used in hybrid-vehicle batteries.* This article has been translated by AI. 2026-04-22 11:40:16

AI Search Battle Intensifies in South Korea as Naver Faces New Rivals South Korea’s search market is entering a major turning point as the long-standing dominance of Naver is being tested by the spread of AI technology. Google has introduced “Gemini in Chrome” in the Korean market, while Naver has responded with an AI tab. Kakao has also joined the race by adding AI search inside KakaoTalk. For years, Korea’s search market has been shaped by local strengths. Naver has held an edge in Korean-language processing, local information, and links to everyday services such as cafes, blogs and shopping. Market research tallies have put Naver’s share in the 60% range, at times topping 70%, reflecting that foundation. But the rules of competition are changing in the AI era. Search is shifting from showing lists of links to understanding user intent and summarizing, comparing and recommending information. That shift helps explain the attention on Google’s push. Few companies control a search engine, browser, operating system and a global AI model at the same time. If AI is embedded directly into the Chrome browser so users can search, summarize and compare without switching services, user habits could change. The battleground would move from a portal homepage to the browser and operating system. Naver is not standing still. Its strategy of using an AI tab to pull together its large in-house ecosystem — including news, blogs and cafes — and expand into conversational search is a practical approach. Its Korean-language data and understanding of domestic users remain clear assets. Still, the company cannot rely on familiar market standing. Users want the most accurate, fast and convenient service, not simply the No. 1 provider by share. Kakao’s move also bears watching. If AI search becomes a routine feature inside KakaoTalk, the starting point for search could shift. Solving questions immediately during a chat is a different pattern from portal-based searching. It suggests the market is moving from competition on a single platform to competition across multiple daily-life platforms. The outcome matters beyond corporate rivalry, with implications for South Korea’s broader digital industry. If domestic companies fall behind in AI search, the effects could ripple through the advertising market, content distribution, data sovereignty and the ability to secure technical talent. If homegrown firms prove competitive, the Korean-language AI ecosystem could advance. Policymakers also have a role, with the priority on building fair conditions rather than protecting specific companies. Authorities should move quickly to clarify rules for data use, copyright, algorithm transparency and systems to address misinformation. Markets should compete through innovation, while the state supports order. Naver’s 70% share is a record of past performance, not a guarantee of the future. In the AI era, the search market is effectively back at the starting line, with the focus shifting from defending an old throne to building future competitiveness.* This article has been translated by AI. 2026-04-22 11:39:21

Democratic Party infighting flares as Rep. Ahn Ho-young’s hunger strike drags on As Rep. Ahn Ho-young continues a hunger strike demanding a renewed party inspection into allegations that rival candidate Rep. Lee Won-taek had meal expenses paid by someone else in the Democratic Party’s North Jeolla governor primary, two senior party officials publicly criticized party leader Jung Cheong-rae for what they called an indifferent response. The dispute appears to be deepening within the party’s top leadership. Supreme Council Senior Member Lee Eon-ju and Supreme Council Member Kang Deuk-gu held a news conference in front of Ahn’s tent site at the National Assembly, saying Ahn had entered his 12th day of fasting and that they had come to ask him to stop. Lee said that when the allegations against Lee Won-taek surfaced, she argued the party should conduct a proper inspection and proceed with the primary in the interest of fairness, citing what she called the need for balance with the case involving allegations of cash envelopes tied to North Jeolla Gov. Kim Kwan-young. She said she was unable to press that position through and warned that optimism about the local elections appeared to be overshadowing procedural and fairness concerns. “Showing fairness is the minimum duty to voters, the public and the president,” Lee said, questioning how the party leader could fail to visit a fellow lawmaker who is fasting while raising concerns. “At least show the minimum decency to someone on a hunger strike,” she said. She also pointed to the leadership’s decision to hold a Supreme Council meeting on a boat near Yokjido, saying that while one side was “holding back tears and crying out,” the leadership looked as if it were “posing for a photo shoot” at sea. Kang also appealed to Jung, saying politicians must focus on people’s livelihoods but should also listen to Ahn and “take his hand.” Kang said he and Lee, as members of the leadership, felt “boundless responsibility” and even “a sense of shame.” North Jeolla Gov. Kim, who has said he supports Ahn, also visited the site, according to the officials.* This article has been translated by AI. 2026-04-22 11:35:43

Vietnam Festival 2026 Set for Late May at Tokyo’s Yoyogi Park, Featuring Water Puppetry The Vietnam Festival 2026 executive committee said April 21 that “Vietnam Festival 2026” will be held in late May at Yoyogi Park in Tokyo’s Shibuya Ward. The two-day event is scheduled for May 30-31 at the park’s event plaza. Organizers said it will feature 120 booths and is expected to draw 180,000 visitors. With “immersive festival” as its theme, the event will expand hands-on content and include performances of Vietnam’s traditional water puppet theater, along with concerts by popular Vietnamese artists. Organizers said a mobile ordering system will be introduced for the first time, allowing visitors to order and pay by smartphone via QR codes at the venue, in an effort to reduce wait times and improve the overall experience. The water puppet shows, typically staged in theaters, will be performed several times a day in the festival’s open-air setting. Concerts will feature ERIK and Ngô Lan Hương, organizers said. The Vietnam Festival has been held annually since 2008 and is Japan’s largest Japan-Vietnam exchange event, drawing more than 100,000 visitors each year. In 2025, it attracted 140,000 visitors.* This article has been translated by AI. 2026-04-22 11:35:11

KelpDAO Hit by $290M DeFi Hack; Possible Link to North Korea’s Lazarus Cited A major hack has hit the decentralized finance platform KelpDAO, with a North Korea-linked hacking group cited as a possible culprit. The attack has not been officially confirmed as North Korean. LayerZero, which operates the underlying infrastructure, said in a preliminary review that the incident may be connected to the Lazarus Group, specifically a subgroup known as TraderTraitor. LayerZero said on April 21 (local time) that the hack occurred April 18 and caused losses of about $290 million, or about 4.285 trillion won. Investigators believe the attacker interfered with KelpDAO’s process for verifying asset transfers, allowing nonexistent transactions to be approved as if they were legitimate — effectively tricking the validation system to siphon funds. The two sides are disputing how the breach was possible and who is responsible. LayerZero said KelpDAO’s verification design was overly simple, creating a single point of failure. KelpDAO countered that the root cause was a breach of LayerZero-provided infrastructure, not a flaw in KelpDAO’s service. Fallout is spreading. The Arbitrum Security Council froze 30,766 ether tied to the hack, worth about $71 million, or about 104.9 billion won. Crypto lending service Aave also temporarily halted transactions involving assets linked to the incident while it assesses the scale of losses.* This article has been translated by AI. 2026-04-22 11:34:29