National Pension Service Increases Domestic Stock Target Allocation to 20.8% The National Pension Service has decided to increase its target allocation for domestic stocks from 14.9% to 20.8% this year. This adjustment reflects the significant rise in the KOSPI index, which has pushed the actual share of domestic stocks held well above the initial target. According to Yonhap News Agency, the National Pension Fund Management Committee held its fifth meeting on May 28, where it reviewed and approved a proposal to adjust the target allocations for various asset classes and the medium-term asset allocation plan for 2027 to 2031. The medium-term asset allocation plan outlines the target allocations and management directions for stocks, bonds, and alternative investments over the next five years. It serves as a guideline to enhance the fund's profitability and stability. Initially, the target allocation for domestic stocks was set at 14.4% as per the fund management plan approved in May of last year. However, as the domestic stock market continued to rise, the committee raised the target allocation to 14.9% in January, with an upper limit of 19.9% including allowable ranges. As the KOSPI continued to surge, the actual allocation of domestic stocks reached 24.5% by the end of February. In light of this, the committee decided to raise the target allocation to 20.8%, considering market conditions, fund profitability and stability, and the impact on financial markets. The committee explained that this decision was made to enhance long-term profitability and stability while considering the potential structural changes in the domestic stock market and the need to mitigate market shocks from rebalancing. The adjusted target allocation will take effect at the end of next month, when the current rebalancing suspension ends. Other asset class target allocations will also be adjusted in line with the increased domestic stock allocation. By the end of this year, the target allocations for various asset classes will be 34.7% for overseas stocks, 23.1% for domestic bonds, 7.4% for overseas bonds, and 14.0% for alternative investments. To respond to the volatile domestic stock market, the committee has temporarily expanded the allowable range for strategic asset allocation (SAA) for domestic stocks. However, specific allowable ranges will not be disclosed to ensure market stability and fairness in fund management. Additionally, to minimize market impact, the committee has improved related rules, including reducing the maximum daily rebalancing size. The committee plans to reassess the SAA allowable range by the end of this year. The committee also confirmed the medium-term asset allocation plan for 2027 to 2031, which maintains the focus on expanding overseas and alternative investments. By the end of 2031, the target allocations for various asset classes are expected to be approximately 55% for stocks, 30% for bonds, and 15% for alternative investments. For next year, the target allocation for domestic stocks will remain at 20.8%. The allocations for overseas stocks, domestic bonds, overseas bonds, and alternative investments have been set at 35.6%, 21.8%, 7.4%, and 14.3%, respectively. Jeong Eun-kyung, Minister of Health and Welfare, stated, "This medium-term asset allocation is a decision made in response to recent market changes, aimed at enhancing the long-term profitability and stability of the fund while also considering its impact on financial markets. We will continue to closely monitor market conditions to ensure that fund management balances principles and flexibility."* This article has been translated by AI. 2026-05-28 20:06:00

Dabangti Raises Prices of Coffee and Beverages by Up to 500 Won, Americano Prices Unchanged Dabangti will raise prices of its coffee and beverages by up to 500 won, excluding the Americano. According to a notice posted on Dabangti's website on May 28, prices for some beverages will increase by 100 to 500 won starting May 29. The price of a large Vanilla Deep Latte will rise from 3,500 won to 3,700 won, while the jumbo size will increase from 5,500 won to 5,700 won. Cold Brew prices will go up from 3,300 won to 3,700 won, and the jumbo size will increase from 5,300 won to 5,700 won. The price of the Icheon Rice Latte will increase from 2,800 won to 3,300 won, and the Jeju Cheonggyul Sparkling will rise from 3,200 won to 3,300 won. Other coffee menu items, including Hazelnut Vanilla Latte, Cold Brew Latte, Vanilla Cream Cold Brew, and Hazelnut Cream Cold Brew, as well as some beverages like Icheon Black Sesame Red Bean Latte, Tropical Sparkling, and Lychee Chamomile Sparkling, will also see price increases. Dabangti explained, "Due to ongoing cost pressures from unstable international conditions and difficulties in store operations, we have had to adjust the prices of some menu items."* This article has been translated by AI. 2026-05-28 20:02:00

SK On CEO Lee Seok-hee Resigns, Yoon Wook Takes Over Sole Leadership Lee Seok-hee, CEO of SK On, is resigning due to health issues. On May 28, industry sources reported that Lee announced his decision in a letter to SK On employees, stating, "I wish to conclude my duties as CEO of SK On by the end of May," and added, "It has been a great honor to work alongside SK On members at the center of the secondary battery industry." He explained, "I have been deeply contemplating the significant responsibilities of the CEO role since the end of last year, but I delayed my resignation to ensure the successful completion of key management issues, including the conclusion of our U.S. joint venture." Appointed as president of SK On in December 2023, Lee previously held positions at Intel and served as a professor in the Department of Electrical and Electronic Engineering at KAIST. He also worked as the head of DRAM development at SK Hynix and as Chief Operating Officer. Lee is recognized as an expert in global manufacturing, having received the Intel Technology Award three times, and is seen as the ideal leader to transform SK On into a top-tier global battery company focused on advanced technology. He has played a crucial role in expanding SK On's presence in the North American market and establishing partnerships with automotive manufacturers. In October of last year, SK On appointed Yoon Wook, former CEO of SK Siltron, as president, creating a dual leadership structure alongside Lee. With Lee's resignation, SK On will transition from a dual leadership model to a sole leadership structure under Yoon Wook.* This article has been translated by AI. 2026-05-28 19:42:00

Candidates Present Visions for Integrated Gwangju-Jeonnam City in Debate In a televised debate ahead of the June 3 local elections, candidates for the Gwangju-Jeonnam integrated special city mayoralty presented their visions for integration and balanced development. However, their proposals for utilizing the allocated 20 trillion won in resources differed significantly. The candidates also addressed the need to check the dominance of the ruling party and the call for accountability from the opposition party. Min Hyung-bae of the Democratic Party, Lee Jung-hyun of the People Power Party, and Kang Eun-mi of the Justice Party participated in the candidate debate held on May 28 at the KBS Gwangju Broadcasting Center. As the first candidates for the newly established Gwangju-Jeonnam mayoralty, they outlined plans for integrated development. Min emphasized, "As I stated in my candidacy announcement, the first priority is growth, followed by balance. By fostering growth in each region, we can expand the economic pie, leading to improved living standards for ordinary citizens through balanced development." Kang also stressed the importance of tangible balanced development for successful integration, stating, "We must publicly address sensitive issues like the location of the government office and financial distribution through a citizens' deliberation committee to prevent power and resources from concentrating in any one area." Conversely, Lee criticized the rushed nature of the Gwangju-Jeonnam integration, saying, "Issues like the medical school and airport relocation have remained unresolved for 20 years, yet the integration was completed in just two months. We do not know what disasters or failures this may bring to our region. We will proceed slowly, centering on Gwangju." The candidates' plans for utilizing the 20 trillion won set aside for the integrated city varied. Min proposed using 80% of the funds to develop industries that will secure the future of Gwangju and Jeonnam, with 10% allocated for talent development and 10% for building community safety nets. He stated, "This 20 trillion won should not just be spent and disappear; it must be invested to yield returns for the citizens, serving as seed money for the next 100 years." Lee focused on job creation, asserting, "We need to concentrate on attracting ten major corporations to Gwangju and Jeonnam, bringing in partner companies and research institutes to create more jobs." Kang added, "We must invest for future generations, create sustainable foundations, and contribute to reducing regional disparities through balanced development." The debate also highlighted the longstanding narrative of the Democratic Party's dominance in Gwangju and Jeonnam, alongside calls for accountability from the People Power Party regarding the December 3 martial law. Kang diagnosed, "Monopolistic politics without competition has harmed Gwangju and Jeonnam." In response, Min acknowledged the negative aspects of a lack of competition but countered that the People Power Party has failed to fulfill its role as the main opposition party. Lee pointed out that while the Gwangyang steel mill produces 27 million tons, there are no manufacturing plants for shipbuilding or automobiles nearby, criticizing the monopolistic power for failing to create jobs. Min challenged Lee's approach, questioning whether he was running as a candidate for the integrated mayoralty or attempting to suppress his opponent through political rhetoric. The candidates continued their attacks on the People Power Party. Min noted, "The failure to include the May 18 Democratic Movement in the constitutional preamble was due to the People Power Party," while Kang criticized the party for politicizing the controversy surrounding Starbucks' trivialization of the May 18 movement. Lee stated he has always supported including the May 18 movement in the constitutional preamble and expressed regret over the party's actions regarding the Starbucks marketing controversy, saying, "As a member of the People Power Party, I feel disappointed and angry about these remarks and behaviors. I apologize for this."* This article has been translated by AI. 2026-05-28 19:24:00

Campus dips into May festival mood SEOUL, May 28 (AJP) - Students and visitors filled the campus of Yonsei University in western Seoul on Wednesday as university festival season continued across South Korea. Club band performances and student-run booths took place throughout the Sinchon campus near central Seoul, while students wearing school uniforms and varsity jackets moved between food stalls and performance areas, enjoying the festive atmosphere. International students were also seen joining the celebrations and experiencing South Korea’s distinctive campus festival culture. Yonsei University is holding its four-day Muak Daedongje festival, titled “UNIT:Y,” to mark the school’s 141st anniversary. The festival began on May 26 with the “Blue Run” event organized with the student council’s athletics department. On May 27, the university’s international campus in Songdo, Incheon, hosted water slide attractions, performances and food events. Events at the Sinchon campus in Seoul continue through May 29, featuring student booths, live performances and celebrity appearances along Baekyang-ro. Crowds gathered across the campus as students waited for celebrity performances and enjoyed live music by campus bands, adding to the lively atmosphere of the annual university festival. 2026-05-28 18:59:39

A siren song from the BOK: the leverage party is over SEOUL, May 28 (AJP) -For a full year, the Bank of Korea sat motionless on a 2.50 percent benchmark while the KOSPI staged the most spectacular rally on the planet — up more than 93 percent since year-end, briefly flirting with 8,450 before Wednesday's close. On Thursday, the central bank's new governor finally said out loud what the bond market had been bracing for: the only questions left are when, how fast, and how far rates rise. A plain-spoken siren to the leverage crowd. New governor Shin Hyun-song could hardly have been blunter in his first rate-setting meeting and media briefing. "All the signs — price pressure, the growth trajectory, the exchange rate and the real estate market — point in one clear direction," he said, calling the case "exceptionally clear." A new governor living up to a hawkish reputation on day one is, in itself, a market event. But the substance behind the posture is what should sober up a frenzied retail base. The freshly released six-month dot plot tells the story with unusual candor. Ten of the 21 projected policy-rate dots now cluster at 3.00 percent, seven at 2.75 percent, and two reach 3.25 percent — leaving only two laggards still betting on a hold at 2.50. The board's center of gravity has shifted to two more quarter-point hikes, with a credible tail toward a third. Rewind to February, when 16 of 21 dots saw no change and four saw a cut, and the reversal is nothing short of dramatic. The BOK simultaneously revised up both growth and inflation forecasts, citing stronger-than-expected chip demand, the prolonged Gulf crisis, and an extraordinary terms-of-trade windfall that lifted first-quarter gross domestic income 12.3 percent year on year. Here is the uncomfortable part Shin was unusually willing to name: the boom is feeding on itself. Earnings and stock gains are spilling into wages and bonuses, adding to price pressure — and the rally has been bankrolled, dangerously, on leverage. Margin trading balances stood at 36.7 trillion won, up a startling 34 percent since the start of the year. "The capital losses from highly leveraged, debt-fueled trading are ultimately borne by market participants who do not carry debt," Shin warned. "This behavior distorts the normal economic demand curve." Translated from central-bank diction: the party financed on credit will hand the bill to everyone, and the BOK would rather deflate the foam now than clean up after it bursts. And the data show that bill is already coming due for the most over-extended traders. According to a think tank affiliated with the Korea Financial Investment Association, the forced-liquidation ratio — the share of margin debt that ends up dumped onto the market when investors fail to meet collateral calls — breached its 2 percent warning line on 20 of the 122 trading days between Nov. 22 and May 22. In stable conditions that ratio hovers near 1 percent; that retail investors were force-sold on roughly one of every six sessions is a sign the leverage has turned from accelerant into liability. The damage clustered in March and May, with nine days above the threshold in March and seven in May. The ratio blew through the severe 4 percent level five times, peaking at 7.6 percent on May 20 — when 145.8 billion won of stock was liquidated against 1.64 trillion won in outstanding margin credit — followed by 6.5 percent on March 5, 6.0 percent on May 18, 5.4 percent on May 11 and 4.6 percent on May 19. The deterioration is stark against history. In the six months to November 2024 the ratio topped 2 percent just three times; in the half-year before that it never did, peaking at a mild 1.8 percent. Now the average daily ratio has nearly doubled to 1.45 percent, from a prior 0.6-to-0.8 percent range, while average daily forced liquidations have tripled to 17.33 billion won from 5-to-8 billion won. And those figures capture only brokerage margin credit — they exclude margin loans, stock loans and contracts for difference. Brokerage margin loan balances alone have nearly doubled to about 36 trillion won as of Wednesday from 18.5 trillion a year ago; stock-collateralized loans have climbed to 25.7 trillion won. The true exposure to a forced-selling cascade is almost certainly larger than the headline numbers suggest. The market got the message in real time. Bond prices collapsed — the three-year government yield jumped 5.5 basis points to 3.766 percent and the ten-year rose 4.5 to 4.147 percent, both at roughly 15-year highs not seen since the 2011 eurozone crisis. Equities convulsed: the KOSPI plunged more than 4 percent intraday, briefly breaching the psychologically critical 8,000 line, before clawing back to close at 8,185.29, down just 0.53 percent on bets that a "healthy" hike won't derail the chip story. The KOSDAQ, with thinner semiconductor cover, found no such floor, shedding 2.54 percent to 1,104.36 after diving more than 5.7 percent at its worst. The won slid 5.1 to 1,507.10 per dollar — and Shin made clear he "will not tolerate disorderly herd behavior" there either. That split-screen — bonds breaking, stocks half-recovering on chip faith — is precisely the imbalance worth worrying about. The rally has never been broad. On Wednesday, with the index near a record 8,330, decliners crushed gainers 826 to 75. A market this narrow, this concentrated in Samsung Electronics and SK hynix (whose combined weighting topped 50 percent intraday), is structurally fragile, and the leverage layered on top makes it brittle. And that leverage keeps finding new outlets. Just this week, sixteen single-stock leveraged and inverse ETFs tied to the two chip giants debuted to roughly 10.4 trillion won in first-day turnover, pushing Korea's total ETF market past 500 trillion won for the first time. Investors who watched the chip rally from the sidelines are now chasing it with amplified, FOMO-driven exposure — even as a record 258.65 trillion won sits parked in money market funds and the VKOSPI clings to panic-adjacent territory above 70. That is the psychology of a market simultaneously greedy and terrified: a textbook late-cycle signature. As one Korea Investment & Securities analyst warned, when leverage accumulates this far, "massive volumes of forced liquidations can hit the market with a time lag" — amplifying volatility precisely when investors can least afford it. None of this means the chip thesis is wrong. Samsung and SK hynix posted combined operating profits north of 90 trillion won, and Nomura and others have lifted KOSPI targets toward 10,000 and beyond. But valuation built on real earnings is one thing; a record index propped up by borrowed money and 5-to-6 percent daily swings is another. Shin's hawkish turn is, at bottom, an attempt to normalize asset prices before the foam hardens into a bubble — and bubbles, unlike rallies, do not get to choose how they end. The governor framed the dissent on his board as "strategic — about timing rather than direction." That is the whole point. Direction is no longer in doubt. The dots have moved, the bonds have repriced, and the man holding the gavel has shown his hand on his very first day. For the leveraged longs still dancing to the chip rally's tune, this was the clearest reality check yet: it is simply a matter of time. *The author is the managing editor of AJP. 2026-05-28 18:56:53

Dream of Falling into Dirty Water Leads to Simultaneous Lottery Wins "The day after dreaming of falling into dirty water, I bought the pension lottery as usual in that area." As interest mounts in the winning numbers for the 317th Pension Lottery 720+ on May 28, the story of the winner of the 292nd Pension Lottery 720+, who won 1st place (1 ticket) and 2nd place (4 tickets), has captured attention. In a recent post on the Donghaeng Lottery winners' bulletin board, the winner shared, "Due to the nature of my job, I often travel throughout Daejeon and Chungnam to buy lotto tickets, and I purchase the pension lottery in a specific area." The winner continued, "The day after I dreamed of falling into dirty water, I bought the pension lottery in that area as usual. On Sunday afternoon, while checking the lotto and pension lottery at home, I noticed an unusual number of zeros and realized I had won 2nd place." "In shock, I checked the remaining tickets and found that I had won both 1st and 2nd place simultaneously. When I told my family, they were even happier than I was and congratulated me. My parents passed away early, and I feel grateful that they seem to be helping me as I’ve worked hard in life," the winner reflected. The winner, who purchased the lottery ticket at a sales outlet in Asan, Chungnam, responded to a question about their usual lottery purchases by saying, "I mainly buy lotto tickets and occasionally purchase the pension lottery and Spitto." Regarding plans for the winnings, the winner stated, "I plan to pay off my loans and take a trip with my family." Meanwhile, the winning numbers for the 317th Pension Lottery 720+ will be available after 7:05 PM today (28th).* This article has been translated by AI. 2026-05-28 18:56:00

President Yoon Appoints Seven Officials, Including Kang Chang-il and Shin Hyun-sung Lee Jae-myung, the President of South Korea, awarded appointment letters to seven officials, including Kang Chang-il, Chief Vice Chair of the National Unification Advisory Council, and Shin Hyun-sung, Governor of the Bank of Korea, on May 28 at the Blue House.This information was conveyed through a written briefing by Kang Yu-jeong, the Chief Spokesperson of the Blue House.Kang was appointed on April 17, succeeding the late Lee Hae-chan. A historian by training, he has served four terms as a lawmaker from Jeju City and was the South Korean ambassador to Japan during the Moon Jae-in administration.In addition to Kang and Shin, the appointments included Yoon Kwang-il and Jeon Hyun-jeong as members of the National Election Commission, and Ko Kwang-heon as the chair of the Broadcasting and Communications Review Committee. Also appointed were Lee Chang-hoon as chair of the National Climate Crisis Response Committee and Kim Jin-oh as vice chair of the Low Birthrate and Aging Society Committee.* This article has been translated by AI. 2026-05-28 18:48:00

Democratic Party and Progressive Party Unite Behind Kim Sang-wook for Ulsan Mayor On May 28, one day before early voting for the Ulsan mayoral election, the Democratic Party and the Progressive Party unified their candidate selection, naming Kim Sang-wook as their joint candidate. At a joint press conference held around 5:50 p.m. in front of the Ulsan Election Commission, Kim Sang-wook and Kim Jong-hoon announced the results of a public opinion poll conducted to determine the unified candidate. Throughout the day, both candidates used polling firms of their choice to conduct surveys utilizing a secure phone number system, resulting in Kim Sang-wook being selected as the unified candidate for both parties. Kim Jong-hoon, who lost in the selection process, accepted the results and submitted his resignation as a candidate to the Ulsan Election Commission just before the announcement. Kim Sang-wook expressed his gratitude, stating, "I will carry the hopes and aspirations of our Progressive Party comrades in my heart and work to create a citizen-led Ulsan and true democracy. I extend my respect and thanks to Kim Jong-hoon for making a difficult choice and showing courage." The initial unification poll was conducted from May 23 to 24. However, on the morning of May 24, Kim Sang-wook's camp raised concerns about the omission of a clause to prevent reverse selection, leading to the suspension of the selection process. Subsequently, Kim Sang-wook's camp proposed a re-election contingent upon implementing safeguards against organized interference from specific factions, which Kim Jong-hoon accepted on May 27, allowing the re-election to proceed. Meanwhile, a survey commissioned by Gyeongsang Ilbo and Ulsan MBC, conducted by Hankyung Research from May 25 to 26 among 1,102 Ulsan voters, showed Kim Sang-wook with 35.8%, Kim Du-gyeom of the People Power Party with 35.5%, and Kim Jong-hoon with 19.0%. In a poll based on the premise of Kim Sang-wook's unification, he garnered 43.6%, while Kim Du-gyeom received 36.9%. The survey utilized random digit dialing (RDD) for 17.2% of responses and automated response systems (ARS) for 82.8%, with a response rate of 4.3% and a margin of error of ±3.0 percentage points at a 95% confidence level.* This article has been translated by AI. 2026-05-28 18:42:00

Government to Import 20 Million Eggs and 9 Million Chicken Breeding Eggs Amid Price Concerns As concerns over the supply of eggs and chicken continue due to the impact of highly pathogenic avian influenza (AI), the South Korean government plans to import an additional 20 million fresh eggs and 9 million chicken breeding eggs. This move aims to alleviate the financial burden on consumers.The Ministry of Agriculture, Food and Rural Affairs announced on May 28 that it will import 20 million fresh eggs from the United States and Thailand between June and July. Since January, the ministry has already imported 7.87 million fresh eggs from these countries through the Korea Agro-Fisheries & Food Trade Corporation (aT) and plans to bring in an additional 2.24 million eggs by next month. The government aims to counteract the expected decrease in egg supply during the summer months by importing these additional eggs.A ministry official stated, "The number of laying hens aged six months and older has decreased, raising concerns about a drop in egg production next month. The average daily egg production in June is projected to decline by 3.6% compared to last year, totaling 46.92 million eggs."Due to the supply shortage, egg prices have remained high. According to the Korea Agricultural Products Quality Evaluation Institute, the average retail price for a carton of eggs (30 eggs) nationwide is 7,547 won, a 7.58% increase from the same period last year.The government is also expanding discounts on eggs. Starting today until July 1, the discount support price will increase from 1,000 won to 1,500 won. The National Agricultural Cooperative Federation (Nonghyup) is implementing a program to lower the supply price of eggs delivered to Hanaro Mart by 2,000 won per carton, in collaboration with the Korea Poultry Association, Daejeon-Chungnam Poultry Association, and Pocheon Livestock Association.In addition to eggs, the government is taking steps to stabilize chicken prices by increasing supply. The average retail price for chicken nationwide is currently 6,504 won per kilogram, a 15% increase from last year.The ministry plans to import an additional 900,000 chicken breeding eggs by August, following the previous import of 800,000. The imported breeding eggs will be hatched and raised in domestic broiler farms for 33 days before being supplied to the market, aiming to restore chicken production levels to last year's figures.The government will also implement a tariff quota on 30,000 tons of chicken starting at the end of this month. Additionally, it will provide discount support for chicken until July 1 and plans to supply chicken to markets at prices reduced by more than 1,000 won per bird through self-help funds during the summer.A ministry official expressed optimism, stating, "We expect these measures to contribute to market supply stability and alleviate consumer price burdens. We will continue to monitor the supply and demand situation for livestock products and respond actively to maintain stable supply conditions and reduce consumer burdens."* This article has been translated by AI. 2026-05-28 18:40:00