Ukraine Launches Large-Scale Drone Attack on Russia, Casualties Reported Near Moscow Ukraine has launched a large-scale drone attack targeting Russian territory, a response following airstrikes by Russia on Kyiv that resulted in the deaths of 24 civilians. The conflict has escalated as both sides engage in long-range strikes, reaching areas near Moscow. According to reports from Reuters and the Associated Press, Ukraine began its drone assaults on various regions, including Moscow and Belgorod, late on the night of May 17. Russian authorities reported that at least four people were killed in the attacks, including three near Moscow and one in Belgorod. More than 12 others were reported injured according to Russian sources. The Russian Defense Ministry claimed to have intercepted 556 drones nationwide. Additionally, separate reports indicated that over 1,000 Ukrainian drones were shot down within a 24-hour period. Moscow Mayor Sergey Sobyanin stated that 81 drones were aimed specifically at Moscow. Damage was reported in the Moscow area, with some drones landing near residential areas and infrastructure. Debris was also found near Sheremetyevo Airport, causing delays and cancellations of some flights. Damage was reported near Moscow's oil facilities, with injuries occurring as a result. Ukraine emphasized that the attacks were a justified response to Russian airstrikes. Ukrainian President Volodymyr Zelensky stated, "Ukraine's response is legitimate as Russia continues its war and attacks on cities." Zelensky had previously warned of a strong response following the deadly airstrikes on Kyiv that killed 24 people the previous week. This attack demonstrates Ukraine's long-range strike capabilities, reaching areas near Moscow. Ukraine has recently increased its attacks on Russian oil and military facilities, aiming to pressure Russia's energy and military infrastructure and raise the costs of the ongoing war. On the same day, Russia continued its drone attacks on Ukraine. The AP reported that Russian strikes on central Ukraine's Dnipropetrovsk region resulted in injuries to eight civilians. 2026-05-18 08:51:00

Meritz Securities Maintains Target Price of 7,500 Won for CJ CGV Amid Film Industry Recovery Meritz Securities on May 18 maintained its target price of 7,500 won and a "buy" rating for CJ CGV, citing the potential recovery of the South Korean film industry. In a report, analyst Jeong Ji-soo noted that the government's distribution of 4.5 million movie tickets, combined with an increase in film productions, positions the Korean film industry on the brink of recovering to pre-COVID-19 levels. Jeong pointed out that while audience attendance has shifted towards general screenings, leading to a decrease in average ticket prices and an increase in rental costs, the company still recorded an operating loss of 6.6 billion won. However, he highlighted that achieving profitability on a monthly basis in March is a positive sign. For the first quarter of this year, CJ CGV reported consolidated revenue of 573.4 billion won, a 7.5% increase from the same period last year, with operating profit rising 172.4% to 8.7 billion won. Nevertheless, these figures fell short of market expectations. Jeong stated that the combined revenue of its subsidiaries decreased by 1.8% year-on-year to 398 billion won, while operating profit dropped by 28% to 24.6 billion won. He explained that although all business divisions, including Turkey, 4D PLEX, and ONS, experienced steady growth, the revenue decline to 66.2 billion won—down 37% year-on-year—was largely due to the base effect from the blockbuster film "The Roundup 2," which had ranked fourth in the Chinese box office last year. Looking ahead, Jeong projected that consolidated revenue and operating profit for 2026 would increase by 4.1% year-on-year to 2.3692 trillion won and 100.1 billion won, respectively. He noted that 4D PLEX is expected to resume growth in the second half of the year as it becomes capable of shipping major global contracts. With anticipated domestic releases such as "The Roundup" and "HOPE" set to debut sequentially, and the allocation of a 450 million won budget for government movie ticket subsidies available from July to September, an increase in audience numbers is expected. Jeong added that alongside revenue growth, ongoing structural reforms for domestic and international sites are likely to improve profitability.* This article has been translated by AI. 2026-05-18 08:46:38

South Korea Aims to Boost Regional Tourism with Global Tourism Zones and Festivals To address the disproportionate concentration of foreign tourists in Seoul, where over 80% of visitors stay, the South Korean government is focusing on revitalizing regional tourism. The plan involves designating local hubs outside the Seoul metropolitan area and Jeju as "global tourism zones" to enhance their capacity for foreign visitors. Additionally, the government aims to promote ten major "global festivals" to attract tourists to these regions. On May 18, the Ministry of Culture, Sports and Tourism announced the launch of a two-track strategy to boost regional tourism. This initiative goes beyond one-time budget support and aligns with recent efforts to amend the Tourism Promotion Act. The goal is to innovate both the infrastructure (tourism zones) and the offerings (festivals) to provide a breakthrough for struggling local economies. Seeking True 'Local' Global Tourism Zones The ministry will accept applications from local governments for the "Global Tourism Zone Development Project" until July 6. Notably, the application process excludes the Seoul metropolitan area, including Incheon and Gyeonggi Province, as well as Jeju, which has its own tourism funding system. The clear objective is to cultivate neglected regional tourism hubs into world-class destinations. Applications will be divided into two categories based on characteristics. The "Future Convergence Type" targets regions that attracted over 200,000 foreign tourists in the past year and incorporate smart technology, while the "Local Self-Sustaining Type" is for areas with over 100,000 visitors that possess unique historical and scenic resources. Two selected regions will receive 3 billion won (approximately $2.3 million) in national funding over two years. Local governments will use these funds to enhance multilingual services, improve payment convenience at key tourist sites, and develop tailored products for foreign visitors. Targeting 30 Million Visitors with Global Festivals Festivals will be the key content to fill these regional tourism zones. The ministry, in collaboration with the Korea Tourism Organization, will launch a joint planning team to strengthen the competitiveness of ten global festivals and initiate precision marketing strategies. Specific marketing approaches have been developed for different target markets. For instance, the Incheon Pentaport Rock Festival will implement the "eplus" ticketing system to lower barriers for Japanese tourists, who have a strong preference for rock music. The Boryeong Mud Festival plans to enhance autonomy and introduce nighttime mud experiences to significantly increase visitor stay duration. Business-to-business (B2B) sales linking festivals and local attractions will also be strengthened. The Jinju Namgang Lantern Festival will collaborate with major overseas travel agencies such as Japan's HIS, Taiwan's Cola Tour, and Hong Kong's Easyel Tour to promote combined packages that include daytime visits to Jinju Castle and nighttime lantern viewing. The Jeongnamjin Jangheung Water Festival will offer unique stay packages contrasting daytime water fights with evening relaxation at zip houses to attract foreign tourists. This initiative to develop tourism zones and support global festivals is an attempt to overcome the structural limitations of regional tourism that have been highlighted in the past. The ministry's two-track strategy is expected to serve as a practical catalyst to alleviate the persistent issue of foreign tourists flocking to Seoul. The final selection of two global tourism zones is planned for July, following written and presentation evaluations.* This article has been translated by AI. 2026-05-18 08:45:28

Korea Investment & Securities Raises PSK Target Price by 21% Amid Strong Growth Korea Investment & Securities announced on May 18 that PSK is expected to experience strong performance growth momentum this year and in the medium to long term, as both top-line and bottom-line figures continue to grow. The firm raised its target price for PSK to 160,000 won, an increase of 21%, while maintaining a "buy" rating. Kim Yeon-jun, a researcher at Korea Investment & Securities, stated, "This year, we can expect benefits from the capital expenditures of Samsung Electronics, SK Hynix, and Micron, as well as the resumption of investments by China's CXMT." He added, "This trend is likely to lead to new fab investments, further strengthening PSK's performance growth momentum." Additionally, he noted, "As demand for AI inference spreads into the CPU market, Intel, which has been conservative with its capital expenditures, may increase its CapEx. Intel has signed a consulting contract with Tesla, which is pursuing a terafab, suggesting a strong connection between Intel's value chain and Tesla's terafab value chain." Kim also analyzed that, given PSK's long-standing partnership with Intel, the company is likely to seek additional opportunities through Intel. According to Korea Investment & Securities, PSK's revenue for the first quarter of this year was 156.6 billion won, with an operating profit of 47.2 billion won, exceeding consensus estimates by 19.8% and 46.5%, respectively. The operating profit margin reached 30.1%, an increase of 7.9 percentage points year-on-year and 14.8 percentage points quarter-on-quarter. Kim explained, "With steady orders from domestic and overseas clients, the top line has grown, and the proportion of high ASP clients in the U.S. and China has improved the operating profit margin. The share of overseas clients is expected to remain similar to that of the first quarter throughout the year, indicating that operating profit margins will continue to improve annually." He also stated, "This year, top-line growth is expected to exceed the average growth rate of 30% for the World Federation of Exchanges, along with improvements in profitability due to the increased share of overseas clients."* This article has been translated by AI. 2026-05-18 08:42:00

Bitcoin Fluctuates Around $77,000 Amid U.S. Inflation Concerns Bitcoin is showing weakness, trading around $77,000 as concerns over inflation in the U.S. rise following a sharp increase in the Producer Price Index (PPI). This surge in inflation has led to a spike in U.S. government bond rates, dampening investor sentiment towards riskier assets. According to CoinMarketCap, Bitcoin was trading at $77,937, down 0.28% from the previous day as of 8 a.m. on May 18. Major altcoins also experienced declines. At the same time, Ripple (XRP) fell 0.23% to $1.41, Ethereum decreased by 0.07% to $2,178.03, and Solana (SOL) dropped 0.41% to $86.15. Market analysts attribute the downturn to rising U.S. government bond rates and inflation concerns. The U.S. PPI for April saw a seasonally adjusted increase of 1.4% compared to the previous month, marking the largest rise since March 2022, nearly four years ago. As inflation fears grow, U.S. government bond rates have surged. As of May 15, the yield on the 10-year Treasury note rose by 0.138 percentage points to 4.597%. The yield on the 30-year Treasury bond also increased by 0.11 percentage points to 5.12%. This is the first time the 30-year bond yield has exceeded 5% since just before the global financial crisis in 2007. Typically, rising U.S. government bond rates lead to a stronger preference for safe-haven assets, which can negatively impact riskier assets like Bitcoin. Meanwhile, on the domestic exchange Bithumb, Bitcoin was trading at approximately 116.17 million won ($77,552), down 0.14% from the previous day. The so-called 'Kimchi Premium,' which reflects the difference between domestic and international prices, was recorded at -0.509%, indicating that domestic prices are lower than overseas prices.* This article has been translated by AI. 2026-05-18 08:31:14

GIST Develops VR Technology to Reduce Motion Sickness in Vehicles Researchers in South Korea have developed a virtual reality (VR) technology that converts physical sensations experienced during vehicle acceleration and turns into visual effects, aiming to reduce motion sickness and enhance immersion. On May 18, the Gwangju Institute of Science and Technology (GIST) announced that a research team led by Professor Kim Seung-jun from the AI Convergence Department has created 'Force Mapping' technology, which transforms the actual movements of vehicles into visual and spatial changes in a VR environment. The findings were presented at the prestigious ACM CHI 2026 conference in April, focusing on human-computer interaction. Force Mapping utilizes an Inertial Measurement Unit (IMU) device and GPS module to detect real-time vehicle movements, including acceleration, deceleration, rotation, and road vibrations. These movements are then represented in the VR environment through effects such as falling objects, spatial shaking, waves, and ripples. Previous VR research for vehicles primarily focused on aligning the vehicle's travel path with virtual scenes to mitigate motion sickness. However, this approach failed to bridge the gap between the physical sensations of acceleration and rotation felt by the body and the virtual space displayed on the screen, resulting in a passive content experience. The research team conducted comparative experiments between the traditional method of simply reflecting vehicle movements on the screen and the Force Mapping approach. The results showed that the Force Mapping condition significantly improved immersion and situational awareness while statistically reducing motion sickness. Notably, emphasizing directionality and intensity rather than merely replicating physical forces led to a greater sense of alignment with bodily sensations. The effects of ground tilt and spatial shaking were particularly pronounced in enhancing immersion during acceleration and deceleration scenarios. This research highlights the potential for VR technology in vehicles to go beyond merely alleviating motion sickness, suggesting that it could transform travel time into an opportunity for gaming, entertainment, education, and remote collaboration through various extended reality (XR) content experiences. As the era of autonomous driving becomes more tangible, the commercial value of this technology is expected to grow significantly. Professor Kim Seung-jun stated, "We plan to further develop sophisticated and diverse environmental feedback technologies to expand vehicle movement itself into an immersive interface, considering future autonomous driving environments."* This article has been translated by AI. 2026-05-18 08:28:23

Hanwha Investment Upgrades Kolon Target Price Amid Chinese Consumer Recovery Hanwha Investment & Securities maintained its "buy" rating for Kolon and raised its target price to 100,000 won, citing a significant improvement in Kolon Sports China's performance due to the recovery of Chinese consumer spending. Lee Jin-hyup, an analyst at Hanwha Investment & Securities, reported that Kolon's consolidated revenue for the first quarter reached 1.5188 trillion won, a 5% increase compared to the same period last year, while operating profit surged by 149% to 98.8 billion won. He attributed this strong performance to improved profitability in both Kolon Global's construction sector and Kolon Mobility Group's retail sector. On a standalone basis, revenue and operating profit were 34.1 billion won and 25.6 billion won, respectively, reflecting decreases of 15% and 20% year-on-year. However, the performance of consolidated subsidiaries showed significant improvement. Kolon Global's operating profit increased by 100% to 21.7 billion won, while Kolon Mobility Group's profit rose by 71% to 20.9 billion won. Notably, Kolon Sports China exhibited remarkable growth, with first-quarter revenue of 362.8 billion won and net profit of 99.9 billion won, marking increases of 66% and 101% year-on-year, respectively. The net profit margin rose by 5 percentage points to 28%. Lee noted, "With a solid brand presence in China and the recent recovery of the Chinese consumer market, Kolon Sports China continues to experience high growth, exceeding our previous forecasts." As a result, Hanwha Investment & Securities has also revised its annual performance outlook for Kolon Sports China, projecting revenue of 1.4724 trillion won and net profit of 335.2 billion won for the year, representing increases of 61% and 98% compared to last year. These estimates are 9% and 11% higher than previous projections. Lee added, "The current market capitalization of approximately 800 billion won is significantly undervalued. Even when excluding the value of Tissue Jin, there is ample room for further growth based on a conservative NAV calculation that discounts Kolon Sports China's value by 50%."* This article has been translated by AI. 2026-05-18 08:27:19

Study Links Urban Green Spaces to Gentrification in Africa A study has found that climate adaptation policies, such as the creation of parks and wetland restoration, can lead to rising property values and an influx of residents, potentially displacing low-income native populations—a phenomenon referred to as the "gentrification paradox." KAIST announced on May 18 that a research team led by Professor Kim Seung-kyum from the Department of AI Future Studies, in collaboration with researchers from Peking University and New York University Shanghai, has empirically identified this paradox by analyzing urban areas across 32 African countries. The team tracked changes in 5,503 administrative units across 221 urban areas from 2005 to 2024. They found that the overall gentrification index in areas with climate adaptation facilities rose by an average of 41% compared to areas without such developments. The findings were published in the international journal Nature Cities on April 13. Gentrification refers to the phenomenon where environmental improvements inadvertently lead to the displacement of native residents. As urban redevelopment and facility investments increase local property values, economically vulnerable groups may find it difficult to afford rising housing costs, leading them to leave their communities. The research team employed satellite imagery analysis combined with socioeconomic data and applied a difference-in-differences method to verify the causal effects of climate adaptation policies. This is the first study to empirically demonstrate the causal relationship between climate adaptation and gentrification on a continental scale in Africa. The analysis revealed that housing prices in areas with climate adaptation facilities increased by approximately 13%, and there was a significant rise in the influx of external populations. This indicates that facilities created for citizen protection may paradoxically exacerbate housing insecurity for economically vulnerable groups. The research team emphasized that climate adaptation policies should not merely focus on infrastructure development but also address the distribution of benefits and burdens. They recommend implementing measures for housing stability, including land ownership protection, public housing supply, and the recovery of development profits, alongside the expansion of green and blue spaces. Professor Kim Seung-kyum stated, "While climate adaptation policies can make cities safer, they can also lead to rising housing costs and population displacement, increasing housing insecurity for existing residents. Future climate policies must consider not only environmental improvements but also the protection of vulnerable groups and housing stability." This research was conducted as part of a project supported by the Ministry of Science and ICT, focusing on the development of an AI-based integrated assessment model for climate-human interactions.* This article has been translated by AI. 2026-05-18 08:22:24

Hanwha Investment Securities Raises Korean Re's Target Price Following Record Performance Hanwha Investment Securities announced on May 18 that Korean Re achieved its highest-ever performance due to the absence of major claims and improved investment results. The firm raised its target price from 12,500 won to 19,000 won and upgraded its investment recommendation to "buy." Kim Do-ha, a researcher at Hanwha Investment Securities, stated, "In the first quarter, net profit reached 209.5 billion won, a 131% increase compared to the same period last year, marking the highest level ever recorded." He noted that unlike the previous year, which saw significant incidents such as the earthquake in Myanmar, wildfires in Los Angeles, and fires in the Yeongnam region, this quarter did not have any noteworthy major claims. He added, "The profit from the Premium Allocation Approach (PAA) reached an all-time high, driving an earnings surprise, and both incurred insurance claims and adjustments to claim factors showed positive trends. The effects of the profitability-focused portfolio adjustments that have been ongoing for several years are also becoming evident." Kim further explained, "Investment income also rose by 136% year-on-year due to improved stock management results, with stock returns showing a strong performance nearing annual levels alongside an increase in managed assets." He projected, "With the upgraded credit rating and improved profitability, it will be possible to expand volumes starting in 2027. Considering the complete retirement of treasury shares and the continuation of a high dividend policy, the attractiveness of shareholder returns is expected to increase."* This article has been translated by AI. 2026-05-18 08:21:29

KOSPI Attempts Recovery Amid U.S. Interest Rates and NVIDIA Earnings Concerns Following a sharp decline in U.S. stock markets and a significant drop in the KOSPI, attention turns to whether the domestic market can attempt a rebound this week. External factors such as rising long-term U.S. interest rates, geopolitical risks from the Middle East, and concerns over NVIDIA's earnings are expected to increase market volatility. On May 18, the Korea Exchange reported that the KOSPI closed at 7493.18, down 488.23 points (-6.12%) from the previous trading day. The index briefly surpassed 8000 during the session but experienced significant fluctuations as profit-taking emerged. This week, the KOSPI is expected to continue its high volatility as it reacts to U.S. interest rate trends, comments from Federal Reserve officials, and NVIDIA's earnings report. Kiwoom Securities has projected a weekly KOSPI range of 7150 to 7700. Analysts are also considering the possibility of a technical rebound following the recent sharp decline. The KOSPI's drop of over 6% last Friday has led to perceptions that the recent losses were excessive. The rapid rise of major global stock markets, driven by an AI rally, is also seen as a factor for correction. From the beginning of this month until May 14, the KOSPI surged 21.0%, while the Nasdaq rose 7.0% and Japan's Nikkei 225 increased by 5.7%. The biggest focus this week will be NVIDIA's earnings. The company is set to release its first-quarter results on May 21 at approximately 5 a.m. Korean time. Market participants are keenly watching how NVIDIA's revenue and profitability will compare to expectations. The current market consensus anticipates revenue of $78 billion and a gross profit margin (GPM) of 75.0%. Key variables include demand for the Blackwell (B200) and the production schedule for the next-generation Rubin (R100), as well as the impact of sales to China. These factors are directly linked to the earnings outlook for domestic semiconductor companies like Samsung Electronics and SK Hynix. Analysts believe that if NVIDIA exceeds market expectations with its earnings and guidance, it could reverse the recent negative sentiment in global markets affected by concerns over interest rates and inflation. Additionally, this week will see comments from key Federal Reserve officials, the release of the April FOMC minutes, U.S. May inflation expectations data, and Japan's April Consumer Price Index (CPI), all of which are likely to heighten market sensitivity to macroeconomic events. In South Korea, the planned strike by Samsung Electronics' labor union on May 21 is also seen as a potential variable. If negotiations fail, the possibility of an actual strike and the government's consideration of emergency mediation could impact investor sentiment in the domestic market. Han Ji-young, an analyst at Kiwoom Securities, stated, "While we may see a technical buying trend due to perceptions of excessive short-term losses early this week, macroeconomic uncertainties are likely to persist." Meanwhile, as of 8:09 a.m., major large-cap stocks are showing weakness in pre-market trading. Samsung Electronics is trading down 0.55% at 269,000 won, while SK Hynix (-1.65%), Hyundai Motor (-1.71%), and Kia (-1.31%) are also experiencing declines. Stocks related to shipbuilding and nuclear power, which had recently seen significant gains, are also facing notable declines. HD Hyundai Heavy Industries is down 3.44%, and Doosan Enerbility has dropped 3.34%. SK Square is also down 3.10%. Additionally, most of the top market capitalization stocks, including LG Energy Solution (-1.68%), Samsung Electro-Mechanics (-0.89%), and Samsung Biologics (-0.35%), are showing downward trends.* This article has been translated by AI. 2026-05-18 08:18:33