Implications of Japan's Defense Industry Opening for South Korea The recent revision of Japan's "Three Principles on Transfer of Defense Equipment" marks a significant turning point in the country's post-war security policy, which has long been constrained by restrictions on arms exports. While the limitations are not entirely lifted, institutional constraints have been significantly eased, broadening the scope for defense exports. This change is not merely a shift in export policy; it is part of a structural transformation linked to increased defense spending, the acquisition of counter-strike capabilities, the development of long-range missiles, the strengthening of the U.S.-Japan alliance, and Japan's expanding role in the Indo-Pacific strategy. One area that South Korea should particularly focus on is submarines. Submarines are strategic platforms that combine shipbuilding technology, batteries, acoustic detection, combat systems, weapon integration, and operational experience. If a country like Japan, which has strengths in shipbuilding, electronics, materials, and batteries, enters the submarine market in earnest, its technological prowess and industrial base could become significant competitive factors. The Japan Maritime Self-Defense Force has operated conventional submarines such as the Oyashio, Soryu, and Taigei classes for an extended period, accumulating low noise levels, underwater mobility, and long operational capabilities. The later Soryu-class submarines have introduced lithium-ion batteries, and the latest Taigei-class is regarded as a submarine that fully applies this technology. However, the revision of Japan's defense export principles does not immediately imply an expansion of submarine exports. Given the strategic nature and sensitivity of submarines, actual exports will depend on various factors, including political considerations, technology protection, security relations with the operating country, and post-sale support capabilities. Nevertheless, the easing of institutional constraints increases the likelihood of Japan entering the high-performance conventional submarine market in the future, which South Korea should recognize as a medium- to long-term competitive variable. South Korea's submarine technology has also accumulated significant competitiveness through an independent development path. From the Changbogo-I and Changbogo-II to the Changbogo-III class, South Korea has rapidly advanced its independent design and construction capabilities, combat system integration, weapon integration, and domestic production capabilities. Notably, the Changbogo-III Batch-I, represented by the Dosan Ahn Chang-ho class, is equipped with vertical launch systems, and the subsequent Batch-II is being developed to further enhance vertical launch capabilities and operational sustainability. This indicates that South Korean submarines are evolving into stealthy, strategically precise strike platforms beyond just anti-submarine and anti-ship capabilities. It is important to note that the competitive landscape between the two countries in the international defense market may become more pronounced. South Korea has grown by emphasizing price competitiveness, quick delivery, local production, industrial cooperation, and tailored support for operating countries. In contrast, despite Japan's high technological capabilities, its presence in the international defense market has been limited due to export regulations and political constraints. However, if Japan actively enters the market, it is likely to leverage its advanced technology, quality reliability, close U.S.-Japan security cooperation, and long operational experience as strengths. While the situations of each country differ, a competitive dynamic may emerge in countries interested in high-performance conventional submarines, such as Canada, India, the Philippines, and Indonesia. However, it is unnecessary to view the submarine competition between South Korea and Japan solely as a zero-sum game. While competition in the international defense market is inevitable, it does not necessarily mean a weakening of overall South Korea-Japan security cooperation. Issues such as the threat of North Korean submarine-launched ballistic missiles (SLBMs), the expansion of the Chinese navy, and the protection of underwater infrastructure are common security challenges that both countries face. Therefore, South Korea should recognize the potential for Japan's submarine export expansion as a competitive factor while managing the competition in the defense market separately from the necessary cooperation in security matters. What South Korea needs is not a short-term reaction but a strategic assessment. Simply relying on price and delivery times will no longer suffice. Quality, reliability, long-term logistical support, technological standards, and interoperability with allies will become more critical competitive factors. South Korea's submarine exports should also evolve from merely providing platforms to developing long-term support models that encompass construction, operation, maintenance, and performance upgrades. Additionally, tailored packages should be presented that consider the security environment, budget constraints, operational personnel levels, and maintenance infrastructure of the exporting countries. Japan's opening of its defense industry presents both a new challenge and an opportunity for South Korea's defense sector. South Korea must connect this change to strengthening its defense competitiveness and enhancing its export models.* This article has been translated by AI. 2026-05-19 06:10:07

Kurosel CEO Kim Geon-soo: Building Global Strength with Domestic CAR-T "While many biotech companies focus on technology licensing, Kurosel aims to grow as a company that generates its own revenue," said Kim Geon-soo, CEO of Kurosel, in a recent interview at the company's headquarters in Yuseong-gu, Daejeon. CAR-T therapy is a personalized gene therapy that genetically modifies a patient's immune cells to precisely target cancer cells. Limcato (ingredient name: Anbalcaptagen autoleucel) is Korea's first CAR-T therapy and was granted product approval by the Ministry of Food and Drug Safety on April 29. The company plans to use Limcato's approval as a stepping stone for both domestic market establishment and global expansion. Kurosel has set several records as a pioneer in the history of CAR-T therapy in South Korea. In 2021, it received approval for the country's first CAR-T clinical trial application (IND) and administered the first CAR-T treatment to a patient. In 2023, the company established the largest commercial CAR-T Good Manufacturing Practice (GMP) production facility in Daejeon, laying the groundwork for commercialization. Below is a Q&A with CEO Kim. - Starting from a situation where there was virtually no CAR-T infrastructure in Korea, you have reached the point of having the 'first domestic CAR-T.' Wasn't it particularly challenging? "The most difficult part was the lack of experience with CAR-T in Korea. There were no clinical research organizations (CROs), and even the essential materials for drug development were not reliably available domestically. We essentially started from scratch. Nevertheless, our goal was clear: to create a treatment that is better than global products, not just Korea's first CAR-T. I co-founded Kurosel with Professor Kim Chan-hyuk from KAIST and Professor Shim Hyun-bo from Ewha Womans University, whom I had never met before, but we quickly aligned on our vision." - There is great anticipation in being able to produce and supply CAR-T therapy domestically. "Until now, many CAR-T therapies used in Korea involved sending patient cells to overseas factories for production and then bringing them back, which could take over a month. For patients with relapsed or refractory hematologic cancers, missing the treatment window can lead to rapid deterioration. Reducing the manufacturing time is not just about production efficiency; it directly impacts survival. Kurosel has established a domestic production system based on our Daejeon CAR-T dedicated GMP facility." - Your proprietary OVIS platform is mentioned as a differentiating technology. "The OVIS platform is our self-developed technology for controlling immune suppression signals. Typically, immune cells (T-cells) experience 'exhaustion' during the process of attacking cancer cells. OVIS can reduce T-cell exhaustion based on platform technology that simultaneously inhibits PD-1 and TIGIT." - How do you view the market potential and business viability of Limcato? "In Korea, approximately 4,000 patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) are diagnosed each year, and those who do not respond to existing treatments become candidates for CAR-T therapy. We estimate that around 700 to 1,000 patients will be eligible annually. Even if we share the market with competing products, securing just 300 patients under health insurance coverage could generate about 90 billion won in revenue. We believe this is a sufficiently meaningful scale for business (currently, the reimbursement price for Kimriah is about 360 million won). Importantly, our focus is on investing in ongoing research and development (R&D) to grow the company rather than seeking short-term profits." - As a latecomer in the global CAR-T market, how will you prove your competitiveness? "CAR-T is a treatment administered once in a lifetime. For patients, it is a single choice, so the most critical factors are treatment efficacy and safety. Limcato achieved a complete response rate (CR) of 67.1% in clinical trials, which we believe is competitive compared to Kimriah (about 40%), Yescarta (about 54-58%), and Breyanzi (about 53%). Hospitals and medical professionals ultimately rely on objective data. The key is which drug can more effectively eliminate cancer cells and prolong patient survival." - What is the production capacity of the Daejeon GMP facility, and what are your future plans for its utilization? "Currently, the maximum manufacturing period is 16 days, with the capacity to produce about 700 treatments annually. If needed, we can expand this capacity to double. We can adequately cover DLBCL at this time. Recently, there has been growing interest in the potential of CAR-T for treating autoimmune diseases in the global market. Conditions like systemic lupus erythematosus (SLE) are areas of focus, and we believe this could be feasible within the next 3 to 5 years." - What direction is Kurosel aiming for? "We aspire to be a company that grows steadily based on our own revenue. Rather than packaging the company based on the number of technology exports, we aim to solidify our foundation. Many view Kurosel as the leading company in CAR-T in Korea, but we intend to gradually build our strength and capabilities, expanding from the domestic market to the global stage."* This article has been translated by AI. 2026-05-19 06:05:18

CureCell Aims for Global Expansion with Solid Tumor and In Vivo CAR-T Therapies CureCell, the first domestic developer of chimeric antigen receptor T-cell (CAR-T) therapies, is focusing on solid tumors and next-generation in vivo CAR-T as key growth areas for global expansion. The company aims to secure competitiveness in the global market rather than settling for short-term achievements. In an interview with Aju Economy, CEO Kim Geon-soo stated, "The development of domestic CAR-T therapies is just the beginning. While we have been known for our domestic operations, we are now looking to move to the next stage." This underscores the company's commitment to global expansion. CureCell is prioritizing solid tumor CAR-T as a core area of its next-generation growth strategy. Although the development is challenging, success could lead to significant market potential and clinical impact, intensifying competition in the global pharmaceutical industry. The company plans to validate treatment possibilities focusing on high unmet medical needs in cancers such as liver, stomach, pancreatic, and colorectal cancers, leveraging its next-generation platform technology. China has been chosen as a key location for its development strategy due to its large patient population and relatively fast clinical approval processes. Currently, CureCell is in discussions with local companies regarding clinical execution structures and business models, with plans to refine its global development strategy based on initial data obtained. As a mid- to long-term growth pillar, CureCell is introducing in vivo CAR-T technology. This next-generation approach involves directly administering genetic material or vectors to patients, enabling the production of CAR-T cells within the body. In vivo CAR-T has garnered increasing interest from global pharmaceutical and biotech companies due to its potential to reduce manufacturing complexity and supply timelines while enhancing treatment accessibility and scalability. CEO Kim Geon-soo remarked, "Our goal is to secure meaningful data this year that demonstrates the potential of our technology." CureCell's product, Rimkato, has been selected as a target item for the Ministry of Health and Welfare's 'Concurrent Approval-Assessment-Negotiation Pilot Project,' which is expected to expedite health insurance coverage compared to standard procedures. The company is currently negotiating product supply with over ten medical institutions, including major hospitals in Seoul, and plans to expand treatment centers to 30 nationwide by the end of the year, ensuring accessibility for patients across the country.* This article has been translated by AI. 2026-05-19 06:03:00

POSCO Faces Unprecedented Uncertainty Amid Direct Employment Controversy POSCO is facing unprecedented uncertainty as tensions escalate between labor and management over the company's plan to directly employ workers from its partner companies. The labor union has initiated dispute procedures, claiming the move was made unilaterally without prior consultation. There are even discussions about the possibility of a first-ever general strike in the company's history. In April, POSCO announced its decision to directly hire 7,000 employees from partner companies through the Pohang and Gwangyang steelworks' cooperative council, citing the establishment of a 'coexistence labor-management model.' The company also revealed specific hiring methods, conditions, and treatment systems. A new job category, 'Operational Synergy (S) Group,' was created, with a promotion system ranging from S1 to S7. Direct employment of partner company workers is not unprecedented in the steel industry. In 2021, Hyundai Steel became the first private company in South Korea to hire over 4,500 employees from in-house partner companies as regular staff, followed by Dongkuk Steel, which directly employed 889 subcontracted workers in 2024. However, POSCO's case stands out due to its scale and potential impact. The direct employment plan affects about 40% of POSCO's workforce of approximately 17,000 employees, including those at its steelworks, which could influence the existing regular employment system and overall organizational operations. The main issue lies in the lack of sufficient dialogue with the workforce during the implementation of such a significant change. The union is particularly concerned about the absence of consultation during the process rather than the direct employment itself. Existing employees have also expressed concerns about potential changes to job structures, personnel management, and wage systems. Kim Sung-ho, chairman of the POSCO labor union, stated in a press release at the time of the announcement, "The management ignored the minimum procedure of building consensus among employees, causing deep wounds among union members. The intense efforts and unique values of each employee in the hiring process must not be undermined." Employees of partner companies targeted for direct employment have also voiced their dissatisfaction. They are raising concerns about being segregated into a separate S group, distinct from the existing regular production E group, which they see as discriminatory. Some employees from certain partner companies at the Pohang and Gwangyang steelworks have already refused to report to work due to grievances over the wage system, disrupting operations. Those affected include employees from companies like POTL and PSC, who are being considered for the S group transition. POSCO has reportedly deployed direct workers to replace them on-site. Currently, the wage system for the S group is set at over 70% of the equivalent E group for the same years of service, with the same benefits as direct employees. The company's challenges are understandable. Recently, there has been increasing demand in the industry for stronger accountability from primary contractors and improvements in safety systems. The issue of 'outsourcing risk' in manufacturing has become an urgent matter that cannot be postponed. It appears that POSCO has made a significant decision for large-scale direct employment in response to these societal trends. However, having the right direction does not guarantee that the process will be accepted by all. In industries like steel, where workplace culture is strong and job structures have been maintained for a long time, the process of persuading members is crucial. Concerns have been raised that if this conflict continues for an extended period, it could affect not only labor-management relations but also the stability of production sites. POSCO has consistently emphasized 'coexistence' as a core corporate value. The company must consider the mutual growth with its partners and the enhancement of safety as essential tasks. However, true coexistence cannot be achieved through declarations alone. Equally important is how well the members can understand and accept these policies. What POSCO needs now is not rapid decision-making but sufficient communication to restore trust among its workforce. 2026-05-19 05:17:26

High Oil Prices and Exchange Rates Strain Steel and Oil Industries The prolonged conflict in the Middle East has led to rising international oil prices and a surge in the won-dollar exchange rate, which has now exceeded 1500 won, increasing the burden on heavy industries such as steel and oil. According to industry sources on May 18, there are concerns that the exchange rate, which has surpassed 1400 won, may become a new norm at 1500 won. In March, the won-dollar exchange rate briefly crossed 1500 won for the first time in nearly 17 years since the financial crisis. The rate has remained above 1500 won, continuing the trend of high exchange rates. Meanwhile, the price of West Texas Intermediate (WTI) crude oil rose from $65.21 per barrel on February 26, before the conflict began, to $105.41 as of May 15, marking an increase of approximately 61.6%. With the ongoing conflict in the Middle East driving up oil prices, companies are expected to face even greater challenges in managing costs. The structure of industries that import key raw materials such as iron ore and crude oil in dollars and sell them in won means that rising exchange rates directly translate into increased costs. The steel industry is particularly vulnerable to high exchange rates. Major South Korean steelmakers, including POSCO, Hyundai Steel, and Dongkuk Steel, rely heavily on imports for iron ore and coking coal. While raw material payments are made in dollars, a significant portion of their sales is supplied to domestic shipbuilding, construction, and automotive sectors in won. The challenge lies in the difficulty of passing on increased costs to product prices. The influx of low-priced steel plates and products from China has limited the ability of domestic steelmakers to raise prices. With a downturn in the construction market leading to weak domestic demand, the combined pressure of rising exchange rates is rapidly deteriorating profitability. The steel industry is increasingly burdened as it struggles to transfer rising costs to product prices while facing additional pressures from exchange rates. The oil industry is also feeling the strain. The four major oil companies—SK Innovation, GS Caltex, S-Oil, and HD Hyundai Oilbank—are entirely reliant on imported crude oil, making them vulnerable to fluctuations in oil prices and exchange rates. The simultaneous rise in international oil prices and the sharp increase in exchange rates have significantly raised the costs of crude oil imports and increased cash outflow burdens. An industry insider stated, "The price of crude oil we are currently importing has risen significantly, and once supply shocks ease, oil prices will normalize. However, if that happens, the rising exchange rates combined with declining inventory asset values will create risks that the oil companies must fully bear, leading to significant operational burdens." While the first quarter saw some performance protection due to inventory valuation gains from soaring oil prices following the outbreak of the Middle East conflict, industry experts predict that if high exchange rates persist, the burdens of raw material procurement and increased financial costs will become more pronounced starting in the second quarter. Professor Heo Jun-young of Sogang University’s Department of Economics noted, "It seems increasingly difficult for the exchange rate to drop back to the 1300 won range this year." Regarding strategies to cope with the prolonged high exchange rates and the Middle East conflict, he explained, "While the oil industry has alternatives like the Red Sea if crude oil cannot pass through the Strait of Hormuz, the steel industry currently lacks effective short-term responses. Ultimately, they will have to endure."* This article has been translated by AI. 2026-05-19 05:15:00

Vietnam to Send Trade Delegation to Seoul in July to Enhance Cooperation The Vietnamese government is taking proactive steps to restructure its cooperation framework aimed at penetrating the South Korean market. With bilateral trade reaching an all-time high, Vietnam is shifting from mere support to a partnership focused on creating shared value. According to various Vietnamese media outlets, on May 14, the Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade (MoIT) held a seminar on trade and investment promotion in the South Korean market. The event was attended by representatives from relevant ministries, associations, and Vietnamese companies, as well as officials from the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea International Trade Association (KITA) Hanoi office. In his opening remarks, Le Hoang Thai, Deputy Director of VIETRADE, noted, "This year marks the 34th anniversary of diplomatic relations between Korea and Vietnam. Last year, the trade volume between the two countries reached $94.5 billion, a 9% increase from the previous year, with Vietnam's exports to Korea amounting to $28.9 billion, up 12.9%." He also reported that the trade volume for the first quarter of this year was approximately $26.9 billion, reflecting a 29.5% increase compared to the same period last year. However, there are calls to reassess the cooperation model itself. Dao Trong Tien, a second secretary at the Vietnamese Embassy in South Korea, emphasized that the priority now is to revisit the cooperation model. He stated, "We are rapidly transitioning from a past approach focused on unilateral support to a partner model that creates value and data together." He explained that South Korea's economic growth rate has remained between 1.8% and 2.1% in recent years, with key criteria emerging around technological competitiveness, digital transformation capabilities, compliance with international standards, ESG (environmental, social, and governance) practices, data transparency, and rapid response capabilities. Need to Strengthen Competitiveness of Vietnamese Partners Currently, South Korea is Vietnam's largest source of foreign direct investment (FDI). The cumulative registered investment exceeds $90 billion, with over 10,000 projects currently in operation. However, it has been noted that Vietnamese companies remain stuck in low-value-added processing stages. Strategies to address this include expanding the use of free trade agreements (FTAs), enhancing digital infrastructure in industrial zones, refining ESG standards, and entering the supply chains of large FDI companies. Kang Heon-woo, head of the KITA Hanoi office, stated, "From 2025, semiconductors will become the top export item from Vietnam to South Korea." He highlighted that semiconductors and flat-panel displays account for approximately 55.7% of South Korea's exports to Vietnam, with intermediate goods making up over 50%. He stressed the need for Vietnamese companies to improve quality, pricing, delivery, safety certifications, and responsiveness to establish themselves as key suppliers for South Korean FDI firms. Examples from the field were also shared. Bui Thi Hoa, vice president of Viet Han High-Tech Production Joint Stock Company, described her company's entry into the global supply chain through a strategy called "3I" (Investment, Absorption, Innovation). She noted that investments in equipment, automation, and the application of Korean-style quality management systems have been foundational in enhancing competitiveness. Building on these discussions, VIETRADE announced it will operate a "Korea Trade and Investment Delegation" in Seoul from July 12 to 17. The delegation will include 25 member companies from various sectors, including industrial products, electronics, manufacturing, furniture, textiles, and agricultural products. Furthermore, the delegation will hold a "Vietnam-Korea Trade and Investment Cooperation Conference" at KOTRA headquarters, followed by a "Vietnam-Korea Business Conference" at the KITA headquarters. One-on-one business consultations will also be conducted in collaboration with the Korea Importers Association (KOIMA) and the Korea-ASEAN Center. A visit to the Incheon Free Economic Zone Authority (IFEZ) is also scheduled to facilitate discussions from multiple angles.* This article has been translated by AI. 2026-05-19 05:11:58

Korea-Vietnam Manufacturing Alliance Expands into Robotics Amid Chinese Competition As the global wave of robotization accelerates, Vietnam faces pressure to overhaul its manufacturing model, which has long relied on cheap labor. With supply chain strategies being challenged, both South Korea and China are vying for a foothold in the Vietnamese market by leveraging robotics and artificial intelligence (AI), creating a clear competitive landscape. Attention is now on whether Korea-Vietnam cooperation can extend beyond manufacturing to become a key partnership in robotics. According to Bloomberg Vietnam, the density of robots in Vietnam's electronics industry is about 90 to 150 per 10,000 workers, falling short of the global average of 162. In contrast, South Korea leads the world with 1,220 robots per 10,000 workers, followed by Singapore with 818 and China with 470. China's dominance is particularly evident in terms of volume. In 2024 alone, approximately 295,000 new robots are expected to be installed in China, capturing 54% of the global market. Currently, around 2 million robots are operational in China, which is 4.5 times more than in Japan. The food and beverage sector has seen an 86% increase in new robot installations, while the textile industry has grown by 29%, indicating rapid robotization even in labor-intensive sectors. Vietnam holds a 24.5% share of the Southeast Asian robotics market, emerging as the largest market in the region last year. However, much of this growth has been driven by foreign direct investment (FDI) in the electronics sector. Global companies like Samsung, LG, and Foxconn have relocated their operations to Vietnam as part of a 'China Plus One' strategy, bringing robots along with them. Consequently, Vietnam is still considered to be in the 'user' stage of robotics, with the need to enhance its capabilities in system integration and industry-specific optimization. Korea and China Compete in Vietnam's Robotics Market Amid this backdrop, South Korea is intensifying its efforts to position Vietnam as a next-generation advanced manufacturing hub. The Korea Trade-Investment Promotion Agency (KOTRA) recently operated a 'Korean Robotics Pavilion' at the 'VINAMAC EXPO 2026' held in Hanoi from May 14 to 16, showcasing five Korean tech companies that presented their robotic products and automation solutions. Approximately 50 export consultations were conducted with 17 buyers, including Vietnamese automation firm ITEK Automation Solutions. South Korea's exports of industrial robots to Vietnam have surged sharply. In 2022, exports increased by 67% year-on-year, and they are projected to grow by another 12.4% to approximately $15.29 million (about 230 billion won) by 2025. Over the past three years, exports of transport and handling robots have skyrocketed 13-fold, while automation solutions have risen by about 40%. KOTRA is set to host the 'Korea-Vietnam AI Innovation Day' on May 20 in Ho Chi Minh City to discuss collaborative strategies for digital transformation in manufacturing. Chinese companies are also making significant inroads. The 'China Home Life Vietnam 2026' exhibition, which opened on May 13, featured around 500 Chinese firms showcasing industrial machinery, automation equipment, and AI-based smart devices. The exhibition included delivery and cleaning robots, voice-controlled smart home systems, and automated production lines for small and medium-sized enterprises. Some companies actively emphasized the potential for technology transfer and customized production partnerships. With both South Korea and China targeting Vietnam, local firms face a crucial decision in choosing their partners. Moreover, Vietnam's internal supply chain operations are rapidly evolving. Factories are now operating 24/7, demanding speed and precision in raw material procurement, logistics, and warehouse management. As robot-based quality control becomes commonplace, defects that were difficult to detect through manual inspection are now being monitored, and real-time data integration has become a fundamental requirement for entering the primary supply chain. Ultimately, Vietnam's ability to enhance its robot system integration and industry-specific optimization capabilities will be a decisive factor in determining its future standing. Combining imported robots with management software in sectors such as food, textiles, and cold chain logistics presents a realistic opportunity. Historically, Korea and Vietnam's collaboration has primarily focused on production networks centered around electronics and manufacturing. However, as robotics and AI emerge as core infrastructure in supply chains, the potential for the two countries to evolve into major partners encompassing system integration and technological advancement is increasingly significant.* This article has been translated by AI. 2026-05-19 05:04:05

U.S. CDC Prepares to Increase Personnel Amid Ebola Spread in Congo As Ebola virus infections emerge in the Central African nation of the Democratic Republic of the Congo, CBS News reported on May 17 that at least six Americans in the country have been exposed to the virus, although their infection status remains unclear. According to sources, three of these individuals are considered high-risk contacts, with one showing symptoms. It has not been confirmed whether they are still in the Democratic Republic of the Congo. On May 17, the World Health Organization (WHO) declared an "international public health emergency" regarding the recent Ebola outbreaks in the Democratic Republic of the Congo and Uganda. As of May 16, the WHO reported eight confirmed cases, 246 suspected cases, and 80 suspected deaths in Ituri Province, where the outbreak has surged. This region is located about 1,500 kilometers from the capital, Kinshasa, and borders Uganda. Ituri Province is already designated as a Level 4 travel advisory area by the U.S. government due to risks from armed group activities, kidnappings, murders, and sexual violence. Additionally, two travelers from the Democratic Republic of the Congo tested positive for Ebola in Uganda's capital, Kampala, with one of them reported dead. According to the BBC, Ugandan authorities confirmed that a 59-year-old man from the Democratic Republic of the Congo died while positive for Ebola, and his body has been handed over to Congolese authorities. The CDC reported that more than 300 suspected cases of Ebola have emerged in the Democratic Republic of the Congo as of May 17, with eight confirmed cases through laboratory testing. The agency stated, "We are supporting partner organizations to safely evacuate a small number of Americans directly affected by this outbreak." The CDC also advised Americans traveling to the Democratic Republic of the Congo and Uganda to avoid contact with anyone exhibiting fever, muscle pain, or rash. The CDC assessed that the current risk to U.S. citizens from Ebola is low but is closely monitoring the situation. The agency is activating its emergency response center and plans to send additional personnel to its offices in the Democratic Republic of the Congo and Uganda, according to Reuters. However, Dr. Tom Frieden, who led the CDC during the large Ebola outbreak in West Africa in 2014, warned that this could potentially lead to a serious spread of the virus. According to the CDC, Ebola virus disease is a type of viral hemorrhagic fever caused by the Ebola virus. It spreads through contact with the blood, bodily fluids, or direct contact with infected animals and corpses. The incubation period ranges from 2 to 21 days. Currently, there are no specific actions from the U.S. government regarding travelers to the Democratic Republic of the Congo or Uganda. However, if the situation worsens, measures similar to those implemented in 2022, which required travelers who visited Uganda within the last 21 days to enter through five major airports for CDC and Customs and Border Protection inspections, may be considered. 2026-05-19 05:03:34

Rising Costs and End of Tax Cuts Signal Upcoming Car Price Increases The automotive industry is facing increasing pressure to raise prices due to soaring raw material costs, including batteries and semiconductors, compounded by high exchange rates. As signs of significant price adjustments emerge for the second half of the year, concerns are growing over a potential decline in demand with the expiration of individual consumption tax cuts at the end of the year. ◆ Global Car Prices Rise Amid Raw Material Costs According to industry sources on May 18, the prices of key components for electric vehicles, such as lithium, aluminum, copper, and semiconductors, have surged, prompting price increases across the global automotive sector. BYD raised the prices of optional advanced driver-assistance systems (ADAS) for several models, including the Dynasty, Ocean, and Formula Leopard, by over 2,000 yuan last month. Xiaomi also increased the prices of all models in its new SU7 series by 4,000 yuan. Companies like Weilai and Xiaopeng plan to raise prices for major models in the second quarter. The rise in battery raw material prices is particularly steep. Batteries account for 30% to 50% of the production cost of electric vehicles. According to market research firm Fastmarkets, the price of lithium, a key material for lithium iron phosphate (LFP) batteries used in budget electric vehicles, has risen to $25.15 per kilogram as of May 13, a 212% increase compared to the average of $8.10 in June of last year. The price of nickel, a core raw material for nickel-cobalt-manganese (NCM) batteries, has also increased by 28.4%, reaching $19,016.50 per ton, up from $14,879 at the end of last year. Additionally, prices for high-performance DDR and storage memory semiconductors used in cars have risen by 70% to 100% compared to the end of last year. An industry insider noted, "As semiconductor companies like Samsung Electronics and SK Hynix focus on producing chips for big tech AI servers, the supply of vehicle memory, which has lower margins and stricter certification requirements, is becoming increasingly unstable. Demand for semiconductors is rising due to developments in software-defined vehicles and autonomous driving, but supply shortages are causing prices to skyrocket." ◆ Price Increases Expected in the Korean Market Starting in June In South Korea, the trend of price increases is becoming evident. Tesla recently raised prices for some Model Y variants by 4 million to 5 million won, following increases in the U.S. The price of the Model Y Long Range AWD rose from 59.99 million won to 63.99 million won, an increase of 4 million won, while the Model 3 Performance and Model Y Long Body each saw a 5 million won increase. BMW Korea plans to raise prices for some models starting in June, with increases expected to be around 1%. Models likely to be affected include the 5 Series, X6, and electric models such as the i4 and i5. A BMW Korea representative stated, "As the high exchange rate becomes entrenched, our ability to absorb exchange rate burdens is diminishing. We will finalize specific models, timing, and extent of the increases based on domestic conditions." If the individual consumption tax cuts expire on December 31, consumer prices are expected to rise further. With car price increases coupled with higher tax burdens, demand is likely to weaken. An industry representative commented, "While we will increase our own promotions, such as interest-free financing and option discounts, the rapid rise in vehicle manufacturing costs limits our ability to offer significant discounts."* This article has been translated by AI. 2026-05-19 05:03:00

Japan's Defense Industry Sees Investor Interest Amid Market Changes Despite no factory expansions or major arms export contracts yet, the market is reacting. Mitsubishi Electric has emerged as one of the standout stocks in Japan's spring market, with its share price climbing to record highs since late March. Investors are drawn to the company due to its air defense and space technologies, particularly in light of U.S. President Donald Trump's plans for a next-generation air defense system, the "Iron Dome," and Japan's efforts to enhance its air defense capabilities. Investors are betting not on the current state of Japan's defense industry, but on future prospects fueled by increased defense spending, the lifting of export restrictions, and rising global military expenditures. According to the Stockholm International Peace Research Institute (SIPRI), global military spending is projected to reach a record $2.887 trillion in 2025, a 2.9% increase from the previous year. As geopolitical risks grow, demand for defense equipment is expected to rise. The Nikkei reported that the combined market capitalization of Japan's three major heavy industries has increased more than 14 times over the past six years, significantly outpacing the growth in net profits during the same period. A shift in profitability structures is also contributing to this trend. Historically, Japan's defense sector has been viewed as a "money-losing business." However, starting in 2023, the Ministry of Defense has raised the expected operating profit margin for defense equipment suppliers from about 8% to as high as 15%. This change makes it easier to reflect costs related to inflation and quality improvements in pricing. Kawasaki Heavy Industries has reported that contracts awarded under these new conditions are expected to increase to about 90% by the 2026 fiscal year, indicating a significant improvement in profitability. Market expectations for industry restructuring are also growing. Unlike the U.S. defense giant Lockheed Martin, which derives nearly 90% of its revenue from defense, Mitsubishi Heavy Industries generates less than 20% from this sector. The defense segment is dispersed among large corporations, making it vulnerable to underinvestment and inadequate resource allocation. Calls for reform are emerging from within the government as well. A research group led by former Defense Minister Yasukazu Hamada has proposed separating and consolidating the aircraft, drone, and missile sectors from private companies by the end of 2025. The market hopes for the emergence of a leading company akin to "the Toyota of the defense industry" that can unify fragmented defense capabilities to enhance quality, profitability, and scale. Changes are also occurring outside the traditional defense sector. According to the Nikkei, Japanese drone startup Terra Drone released a video in April showing its technology intercepting and targeting Russia's Shahed suicide drones. The company’s "Terra A1" drones cost less than 500,000 yen (approximately $3,700) each, significantly reducing the financial burden compared to existing intercept missiles, which can cost tens of millions to billions of yen. Last month, the Defense Equipment Agency gathered around 100 startups and venture capital firms, previously distant from the defense sector, to announce a "fast-track procurement" system aimed at shortening procurement processes that typically take over a year. The focus of defense manufacturing is beginning to expand beyond traditional heavy industries to include drones, AI, and robotics companies. However, rising stock prices and regulatory changes do not immediately translate into industrial competitiveness. Japan's defense sector will find it challenging to quickly match South Korea in terms of pricing, delivery, and mass production capabilities. Without increased overseas demand, economies of scale will not materialize, and it will take time to reestablish factories, partnerships, and skilled labor. The entry of drone and AI companies cannot replace the foundational heavy industries that produce destroyers, fighter jets, and missiles. Nonetheless, regulations have been relaxed, the government is restructuring profitability, and investment capital is beginning to flow. The focus should not be solely on today's Japanese defense industry but on how these changes will accumulate over the next decade.* This article has been translated by AI. 2026-05-19 04:15:00