Refinery Sector Anticipates Earnings Surprise Amid High Oil Prices Domestic refiners are expected to report an earnings surprise for the first quarter of 2026 due to high oil prices stemming from the ongoing conflict in the Middle East. However, the increase in profits is attributed to low-cost crude oil inventories, raising concerns about deteriorating performance in the second quarter without compensation for losses incurred under the price cap policy. On May 11, S-Oil announced an operating profit of 1.2311 trillion won for the first quarter. According to securities firms, SK Innovation is projected to report 2 trillion won, GS Caltex around 1.9 trillion won, and HD Hyundai Oilbank approximately 200 billion won in operating profit. In the same period last year, the combined operating profit of the four refiners was only 811 billion won, but this year it is expected to exceed 5 trillion won. The significant profits are largely due to the sale of crude oil purchased at relatively low prices before the conflict, resulting in substantial inventory valuation gains. However, these gains are seen as temporary, and the sustainability of improved performance in the second quarter remains uncertain, depending on oil price trends. The refining sector argues that reasonable compensation for losses related to the price cap policy is urgently needed following the war. The government has been controlling the prices of petroleum products sold at gas stations under a "price cap policy" since March 13, aimed at stabilizing oil prices and living costs. The government also announced that it would provide financial support in the event of losses incurred by refiners due to this measure. The lack of clarity regarding the compensation method and criteria is problematic. It is estimated that the cumulative losses for the four domestic refiners have exceeded 3 trillion won, with weekly losses around 500 billion won. The rapid accumulation of losses is due to insufficient reflection of price increases. Industry insiders contend that the first-quarter earnings surprise is merely an illusion caused by inventory valuation gains, emphasizing the necessity for loss compensation. With high oil prices persisting, the cost burden is expected to be significantly reflected starting in the second quarter. Additionally, if international oil prices plummet due to a ceasefire or peace agreement, there are concerns about reduced refining margins and substantial inventory valuation losses. A representative from the refining sector stated, "The improvement in first-quarter results reflects the benefits of low-cost crude oil inventories secured before the surge in oil prices. Currently, we are purchasing crude oil at high prices, but the selling prices are restricted by the price cap, creating significant pressure. Furthermore, the lack of clear criteria for loss compensation could greatly increase performance volatility if oil prices decline in the future."* This article has been translated by AI. 2026-05-12 03:42:28

Apple Faces Ongoing Controversy Over False Advertising Claims Apple has strongly refuted allegations of false advertising regarding its artificial intelligence (AI) system, Apple Intelligence, as a domestic civic group has officially urged the Fair Trade Commission (FTC) to disclose investigation materials.On May 11, the Seoul YMCA's Civic Mediation Office criticized Apple’s official statement released on May 8, interpreting it as a denial of violations of the Fair Labeling and Advertising Act. They stated, "It is absurd for Apple to discuss negotiations while ignoring the FTC's request for documentation for over a year."The YMCA added, "Before discussing negotiations with the FTC, Apple should prioritize communication with consumers."On the same day, the Seoul YMCA sent a letter of inquiry to the FTC to hear updates on the situation. They specifically questioned why the FTC has not taken action despite Apple failing to submit requested documents for over a year, what discussions are currently ongoing with Apple, and what future investigation plans are in light of a recent compensation agreement reached in the U.S.The YMCA stated, "We plan to transparently disclose the FTC's responses and will continue to monitor and act strongly to prevent Apple from misusing the FTC's consent decree system to gain immunity with insufficient content."Previously, the Seoul YMCA pointed out that the FTC has not reached a clear conclusion on Apple’s alleged violations of the Fair Labeling and Advertising Act, which were reported in March of last year.In response, Apple issued a statement on May 8, strongly opposing the YMCA's claims and asserting, "We will continue to engage in discussions with the Fair Trade Commission regarding this matter."Meanwhile, Apple recently reached a settlement of $250 million (approximately 360 billion won) to resolve a class-action lawsuit in the U.S. According to Reuters, Apple faced a lawsuit from American consumers in 2024 for allegedly misleadingly advertising its Apple Intelligence and next-generation Siri features to sell iPhones.* This article has been translated by AI. 2026-05-12 03:41:07

T'way Air Returns to Profit After Two Years, Boosted by Winter Travel and Cargo Business T'way Air has successfully returned to profitability for the first time in two years, driven by increased passenger numbers and a robust cargo transport business. On May 11, T'way Air announced that its operating profit for the first quarter reached 19.9 billion won, marking a return to the black after eight quarters. Revenue totaled 612.2 billion won, a 37% increase compared to the same period last year. The airline's improved performance is attributed to a surge in travel demand during the winter peak season and the stabilization of its route operations. The number of passengers in the first quarter surpassed 3.13 million, reflecting a 17% increase year-on-year. Notably, international passenger numbers rose by over 23% to 2,188,463. Analysts suggest that the airline's strategy of expanding new routes and diversifying its offerings, which began last year, is yielding positive results. Passenger load factors for both domestic and international routes exceeded 90%. T'way Air's cargo transport business is also experiencing steady growth. In the first quarter of 2026, cargo volume reached approximately 9,000 tons, a 130% increase compared to the first quarter of 2024, effectively tripling the scale of the operation. Following its acquisition by the Sonot Trinity Group, T'way Air has thoroughly reviewed its route operations structure. The airline has restructured its operations to focus on efficiency, contributing to the improved performance in the first quarter. Recently, T'way Air held a shareholders' meeting where it announced a name change to Trinity Air. Full operations under the new name will commence once approval from relevant domestic and international authorities is secured. A T'way Air official stated, "We plan to enhance operational efficiency with the introduction of new A330-900NEO aircraft in the second half of the year. We will continue to drive performance through efficient operations in passenger and cargo transport and stabilization of medium- to long-haul routes."* This article has been translated by AI. 2026-05-12 03:39:24

KOSPI Approaches 8000 Mark Amid Strong Buying from Retail Investors On May 11, the KOSPI index surged close to the 8000 mark, buoyed by strong buying from both retail and institutional investors. The index rose more than 4%, surpassing the 7800 level. According to the Korea Exchange, the KOSPI closed at 7822.24, up 324.24 points (4.32%) from the previous trading day. It opened at 7775.31, gaining 277.31 points (3.70%) as retail buying momentum increased. Lee Kyung-min, a researcher at Daishin Securities, noted, "The KOSPI continues its upward trend, driven by a concentration in large-cap semiconductor stocks, marking five consecutive days of gains. On this day, 159 stocks rose, 6 remained unchanged, and 734 declined, indicating that a few large-cap stocks led the index's increase." In the securities market, retail and institutional investors made net purchases of 3.1711 trillion won and 753.1 billion won, respectively, driving the index higher. Foreign investors, however, sold a net 3.9432 trillion won. Among the top market capitalization stocks, Samsung Electronics (up 6.33%), SK Hynix (up 11.51%), SK Square (up 8.11%), Hyundai Motor (up 5.38%), Samsung C&T (up 6.98%), and HD Hyundai Heavy Industries (up 4.10%) all saw gains, while LG Energy Solution (down 1.78%) and Doosan Enerbility (down 1.23%) declined. On this day, SK Hynix traded at 1.45 million won, setting a new all-time high. Samsung Electronics, which had reached 230,000 won on the 30th, experienced a drop due to profit-taking but rebounded to 232,500 won within a day. The KOSDAQ index closed at 1213.74, up 21.39 points (1.79%). It started at 1212.28, an increase of 19.93 points (1.67%) from the previous day. In the KOSDAQ market, retail and foreign investors made net purchases of 147 billion won and 55.4 billion won, respectively, while institutions sold a net 172 billion won. Among the top KOSDAQ stocks, EcoPro BM (down 6.53%), EcoPro (down 5.55%), Alteogen (down 4.55%), HLB (down 2.92%), and ABL Bio (down 1.84%) closed lower, while Rainbow Robotics (up 10.33%), Kolon TissueGene (up 3.99%), Samchundang Pharm (up 1.36%), and Lino Industry (up 2.84%) finished higher.* This article has been translated by AI. 2026-05-12 03:37:23

Court Fines Yoon Woo-jin 3 Million Won for Failing to Appear as Witness in Yoon Suk Yeol Case In a trial concerning allegations of disseminating false information during the 20th presidential election, former President Yoon Suk Yeol's witness, former tax office chief Yoon Woo-jin, failed to appear. As a result, the court imposed a fine on Yoon Woo-jin and issued an arrest warrant. On May 11, the Seoul Central District Court's Criminal Division 21, presided over by Judge Cho Soon-pyo, fined Yoon Woo-jin 3 million won for his absence from the trial related to the violation of the Public Election Act. The court noted that Yoon Woo-jin submitted a notice of absence citing panic disorder and lung disease. In response, the special prosecutor's team, led by Min Jung-ki, expressed their intention to execute the arrest warrant for Yoon Woo-jin, which the court accepted. The next hearing is scheduled for June 8, and the court decided to conclude arguments and deliver a ruling on July 10 at 2 p.m., regardless of Yoon Woo-jin's attendance. During the court proceedings, there was a heated debate regarding the special prosecutor's investigation procedures. The defense for Yoon Suk Yeol argued that the special prosecutor filed charges without investigating key witnesses, including attorney Lee Nam-seok and Yoon Woo-jin, claiming it was a politically motivated indictment. Specifically, Yoon Suk Yeol stated, "It is common sense to investigate witnesses before calling in suspects. They seem to have aimed to sensationalize the issue by indicting without any investigation. If they had questioned this attorney, they could not have possibly filed charges against me." Yoon's attorney also added that the indictment was politically motivated, considering the context of a specific party's election funding return. In response, the special prosecutor's team countered that delays in summoning the defendant until December made the timeline very tight, stating, "The submission of supplementary evidence occurred after the indictment due to the delay in investigating key defendants." Additionally, Yoon Suk Yeol firmly denied allegations of disseminating false information regarding the presence of Jeon Seong-bae, a shaman, and First Lady Kim Geon-hee. He claimed, "I understand Jeon to be a Buddhist, not a shaman. Meeting a Buddhist during the election should not be an issue, as it was merely a response to attempts to separate a leading candidate from the religious community." Conversely, the special prosecutor's team presented media reports, asserting that there was clear evidence and testimonies indicating that Jeon and Kim had met in a three-person gathering, accusing the defendant of spreading false information to deny the connection with his spouse. Furthermore, the special prosecutor's team submitted a text message from 2012 in which attorney Lee Nam-seok stated, "I texted after hearing from Yoon Suk Yeol," to pressure the former president. After hearing arguments from both sides, the court requested additional relevant press materials from both parties.* This article has been translated by AI. 2026-05-12 03:35:26

Culley Reports Record Quarterly Earnings with 1,277% Surge in Operating Profit Retail tech company Culley reported its highest quarterly performance since its founding in the first quarter of this year. Culley announced on May 11 that its consolidated operating profit for the first quarter reached 24.2 billion won, a staggering 1,277% increase compared to the same period last year. During the same period, revenue grew by 28.4% to 745.7 billion won. The company also reported a net profit of 20.3 billion won, marking a return to profitability. The total gross merchandise volume (GMV) for the first quarter hit a record high of 1.08 trillion won, reflecting a 29% increase year-over-year. Considering that the domestic online shopping transaction growth rate for the first quarter, as reported by the National Data Agency, was 9.7%, Culley’s growth rate significantly outpaces the industry average. Culley attributed its success to the growth in its core fresh and beauty sectors, as well as diversification efforts including seller delivery (3P), fulfillment services (FBK), and Culley N-Mart. The transaction volume in the food category for the first quarter increased by 27.8% compared to the same period last year. The beauty segment also saw a 20.2% growth, driven by strong sales of luxury beauty products and the rise of indie brands. Seller delivery, which includes fulfillment services, surged by 52.6%, contributing to the overall improvement in performance. Strategies to differentiate fashion and living products, along with enhanced logistics service competitiveness, also played a role in this growth. Culley N-Mart, which launched in September last year, quickly gained traction, with transaction volume in March increasing nearly ninefold compared to its initial launch. Logistics innovation has been crucial for improving profitability. In February, Culley introduced a new delivery service called 'Midnight Star Delivery,' which guarantees delivery by midnight for orders placed before 3 p.m. This addition, alongside existing early morning delivery options, has enhanced logistics operational efficiency. Furthermore, long-term enhancements at logistics centers in Gimpo, Pyeongtaek, and Changwon have begun to yield cost savings this quarter. The gross profit margin for the first quarter improved by 0.8 percentage points to 33.1%, while the selling and administrative expense ratio decreased by 2.2 percentage points, strengthening the company’s profit capacity. In conjunction with the earnings announcement, Culley’s strategic alliance with Naver has garnered attention. On May 6, Culley conducted a third-party allocation capital increase worth 33 billion won for Naver. Following this investment, Naver's stake in Culley increased to 6.2%, valuing the company at 2.8 trillion won. Culley plans to utilize the 33 billion won raised from this capital increase as a solid foundation for long-term growth. Specifically, the funds will be used to further enhance logistics infrastructure, which is critical for delivery competitiveness, and to finance new business initiatives aimed at discovering future revenue streams. Kim Jong-hoon, Culley’s Chief Financial Officer, stated, "Through consistent efforts in product, logistics, and technology, we have differentiated the customer experience, and our attempts at business diversification to secure new growth drivers are now showing results from the first quarter." He added, "Having demonstrated both growth and profitability through the establishment of a clear business model that a differentiated technology platform company should have, we plan to solidify and accelerate our IPO roadmap."* This article has been translated by AI. 2026-05-12 03:32:53

LVMH Chairman Bernard Arnault Visits South Korea After Three Years Bernard Arnault, chairman of Louis Vuitton Moët Hennessy (LVMH), visited South Korea for the first time in three years, touring major domestic retail channels such as Shinsegae and Lotte. His visit underscores the strategic importance of the Korean market as Louis Vuitton has recorded its highest-ever performance in the country amid a slowdown in global luxury market growth.According to the retail industry, Arnault arrived at Shinsegae Department Store's flagship location in Sogong-dong, Seoul, around 12:30 p.m. on May 11, accompanied by his daughter, Delphine Arnault, CEO of Christian Dior. The store features the "Louis Vuitton Visionary Journey Seoul," which opened at the end of last year. This location is the largest Louis Vuitton store in the world, spanning six floors and offering both product sales and experiential spaces showcasing the brand's history and culture.Shinsegae representatives, including CEO Park Joo-hyung and Head of Merchandise Division Jang Soo-jin, welcomed Arnault. The department store was closed to the public that day, so specific internal routes were not disclosed. However, during his previous visit to Korea in 2023, Arnault toured stores of LVMH brands such as Dior and Tiffany & Co., suggesting he likely visited key brand outlets again this time. Arnault then visited the nearby Lotte Department Store, where CEO Jeong Hyun-seok personally greeted him. After touring the Louis Vuitton store in the Avenue L section, Arnault moved to the Tiffany & Co. store, where he conversed with CEO Jeong for about ten minutes. He later returned to Avenue L to check out the Bulgari store. At Lotte Department Store in Jamsil, Shin Dong-bin welcomed Arnault and accompanied him throughout the 40-minute visit. Shin's eldest son, Shin Yoo-yeol, head of future growth at Lotte Holdings, was also present.Although the Jamsil location was bustling with regular customers, Arnault toured the main and basement floors without any crowd control, visiting key stores.Arnault's visit highlights the growing stature of the Korean luxury market. Since his last visit three years ago, luxury consumption in Korea has remained robust, particularly for high-end brands. According to Louis Vuitton Korea's audit report, the company's domestic sales reached 1.85 trillion won last year, a 6.1% increase from the previous year, while operating profit rose by 35.1% to 525.6 billion won.Experts predict that this growth trend in the Korean luxury market will continue. Kim Myung-joo, a researcher at Korea Investment & Securities, stated, "The high growth in the luxury category that began last year has become even more pronounced this year," adding that the rise in semiconductor companies' stock prices and substantial bonuses have contributed to increased liquidity in the market. 2026-05-12 03:30:41

South Korea Condemns Attack on HMM Namoo in Hormuz Strait The Blue House stated on May 11 that the fire on the South Korean vessel HMM Namoo in the Hormuz Strait was confirmed to be caused by an external attack. The government emphasized that attacks on civilian vessels, including the Namoo, cannot be justified or tolerated. However, officials refrained from speculating on the identity of the attackers, maintaining a cautious stance. Wi Sung-lak, Chief of the National Security Office, expressed strong condemnation of the attack during a briefing with reporters, stating, "We strongly condemn this attack." A senior official from the Blue House noted, "While it is clear that attacks on commercial vessels are condemnable, the government is not currently identifying the attackers. We are in the process of determining the responsible party and will respond appropriately once we have clarity." On May 4, an explosion and fire occurred aboard the HMM Namoo, which was docked in the Hormuz Strait. Wi explained that two unidentified aircraft struck the stern of the Namoo approximately one minute apart, resulting in flames and smoke. He added that the damage occurred above the waterline, approximately 1 to 1.5 meters high, suggesting that the possibility of a mine or torpedo attack is low based on the damage pattern. He further stated, "Additional investigation is needed to gather information about the aircraft involved in the attack," indicating that a more specialized inquiry would be conducted to identify the attackers and the type of aircraft used. The government has towed the Namoo, which is currently unable to operate on its own, to the port of Dubai. An investigative team consisting of three officials from the Ministry of Oceans and Fisheries and four forensic experts from the National Fire Agency has been dispatched to investigate the cause of the fire. Military experts are also reported to be involved in the investigation. Wi mentioned that future response measures will be considered based on the results of this investigation. Wi also stated, "We will enhance communication with relevant countries to prevent such incidents from recurring and will intensify efforts to ensure the safety of our vessels and crew in nearby straits. We will continue to participate in international efforts to ensure the safety and freedom of navigation for all vessels, including those from South Korea." Yu Ji-hoon, a researcher at the Korea Institute for Defense Analysis (KIDA), advised that efforts should be made to secure evidence and pursue accountability through international cooperation. He emphasized the need for systematic improvements in sharing navigation information for high-risk areas, providing vessel escorts and evacuation support, and enhancing the navy's long-range maritime security response capabilities, as well as establishing a cooperative framework within the South Korea-U.S. alliance.* This article has been translated by AI. 2026-05-12 03:25:48

Solum to Participate in Qatar Electricity Authority EV Charger Pilot Project Solum has taken its first step into the Middle Eastern public charging infrastructure market by participating in a pilot project for electric vehicle (EV) chargers with the Qatar Electricity Authority. On May 11, Solum announced that it secured a contract on April 12 to implement the EV charger pilot project in collaboration with Chaevi, targeting the public sector of the Qatar Electricity Authority. Solum will supply one Chaevi third-generation 180kW fast charger utilizing its 30kW power module. A representative from Solum stated, "This is the first instance of a domestic EV charging company entering the Qatar Electricity Authority's public sector proof of concept (PoC)." Qatar has set carbon footprint reduction and the electrification of public transport as key goals in its National Vision 2030. Member countries of the Gulf Cooperation Council (GCC) are accelerating the expansion of EV infrastructure as part of their strategies to transition to a post-oil economy, with Qatar including the establishment of EV charging infrastructure as a major task in its national transportation strategy. To support this initiative, the Qatar Electricity Authority (Kahramaa) is overseeing the installation and bidding for EV charging stations, with plans to gradually expand the charging infrastructure to 300 stations by the end of 2024, 600 by 2025, and 1,000 by 2030. Qatar is gaining recognition as a leading country in building EV infrastructure in the Middle East. Kahramaa is the public agency responsible for managing Qatar's national power and water resources and plays a crucial role in implementing the country's energy infrastructure policies. Beyond merely supplying electricity, it is also a key demand source for national energy transition projects, including EV charging infrastructure. Solum explained that securing this PoC was not a straightforward process. Through local business development activities led by Lee Chang-seop, Solum's head of Middle East operations, the company identified influential partners in Qatar and opened access channels to the public sector of the electricity authority. Lee Chang-seop stated, "The pilot project with the Qatar Electricity Authority allows us to directly assess the high entry barriers in the Middle Eastern market and objectively validate the performance of our products. Based on this reference, we will deepen our collaboration with local partners and gradually establish a business model suitable for the GCC market."* This article has been translated by AI. 2026-05-12 03:24:05

Rain brings relief to Seoul after weeks of early summer heat SEOUL, May 11 (AJP) - Rain began to fall in Seoul on Monday afternoon, bringing some relief from the early summer heat of recent weeks. According to the Korea Meteorological Administration (KMA), rain that began earlier in the day in central regions has spread nationwide and is expected to continue through Tuesday. Up to 20 mm of rainfall is forecast for Seoul, while up to 40 mm is expected in Gyeonggi Province and other southern regions. The KMA warned of strong gusts, thunderstorms, and lightning in some areas, urging the public to be cautious on slippery roads. 2026-05-11 18:07:37