Park Jong-jun Acquitted in First Trial Over Deletion of Secret Phone Data Park Jong-jun, the former head of the Presidential Security Service, was acquitted in a first trial on charges of deleting information from secret phones used by key figures during the martial law period, including former President Yoon Suk Yeol. On May 21, the Seoul Central District Court's Criminal Division 32, presided over by Judge Ryu Kyung-jin, ruled in favor of Park, stating that the evidence for the charges of evidence destruction was insufficient. The court explained that the prosecution's claims were not substantiated, noting that the screen of Hong Jang-won, the former first deputy director of the National Intelligence Service, was publicly revealed, exposing the secret phone ID of the president. In this context, the court stated that the head of the security service's support headquarters and others acted based on their best judgment to consider and report the deletion of accounts. Furthermore, the court indicated that just because the actions taken afterward might have been inadequate or that better methods could have been employed does not imply an intention to destroy evidence. It emphasized that Park's decision was made after consulting with the National Intelligence Service director and considering the advice of staff, leading to a lack of evidence supporting the claim of evidence destruction. The court also pointed out that Park did not take similar actions regarding other individuals, such as former Police Chief Jo Ji-ho, which further weakened the argument for intentional evidence destruction. Previously, the special prosecution team had uncovered that Park deleted information from the secret phones of Yoon, Hong, and former Seoul Police Chief Kim Bong-sik during their investigation last year. The secret phones, managed by the security service, can be operated remotely, and the service deleted the information from these phones using a remote logout method. The special prosecution team charged Park with intentionally deleting evidence related to the martial law. During the sentencing hearing, they sought a three-year prison term for him. The team plans to review the ruling in detail before deciding whether to appeal.* This article has been translated by AI. 2026-05-21 19:05:41

Ministry of SMEs to Develop Five Global Startup Cities by 2030 The Ministry of SMEs and Startups is launching a project to cultivate five cities that rank among the top 100 global startup hubs by 2030. On May 21, the ministry held a "Startup City Development Project Strategy Presentation" at the Daegu Gyeongbuk Institute of Science and Technology (DGIST) Convention Hall, in collaboration with local governments, four major science and technology institutes, and regional startup support organizations. This event followed the "National Startup Era Strategy Meeting" held in April, where the initial project plan was announced. The "Startup City Development Project" aims to create a sustainable regional startup ecosystem led by local initiatives, based on government support packages for startup growth in areas such as talent development, commercialization, investment, and infrastructure. The project reflects the specialized strategies of four cities: Daegu, Gwangju, Daejeon, and Ulsan. Daegu's strategy focuses on becoming a leading city in advanced manufacturing driven by AI and robotics startups, leveraging DGIST's research capabilities to establish a deep tech testing ground. Daejeon announced its strategy to develop a deep tech startup ecosystem centered around three key sectors: space and defense, AI and robotics, and biotechnology, utilizing the strengths of the Korea Advanced Institute of Science and Technology (KAIST). Gwangju proposed a model for a testing city based on research personnel from the Gwangju Institute of Science and Technology (GIST), fostering development in future mobility, energy, AI, and semiconductors. Ulsan plans to create an open testing city that facilitates the immediate commercialization of innovative technologies from local industries such as automotive, shipbuilding, and petrochemicals. The Ministry of SMEs and Startups and the four local governments also signed a memorandum of understanding (MOU) to ensure the successful implementation of the "Startup City Development Project." Minister Han Seung-sook emphasized the importance of fostering a virtuous cycle where technology startups thrive outside the capital region and companies that grow in these areas remain rooted locally. She stated, "Through the Startup City Project, we will create a self-sustaining startup ecosystem that generates growth momentum from within the regions."* This article has been translated by AI. 2026-05-21 19:00:15

Supreme Court Rules HD Hyundai Heavy Industries Not Obligated to Bargain with Subcontractor Union HD Hyundai Heavy Industries has been confirmed by the Supreme Court to have no obligation to engage in collective bargaining with a subcontractor union. The court upheld existing legal principles under the labor union law prior to its amendment, which expanded the definition of employers.On May 21, the Supreme Court's full bench, led by Justice Oh Kyung-mi, upheld the lower court's ruling that dismissed a lawsuit filed by the subcontractor union of the Hyundai Heavy Industries branch of the Korean Metal Workers' Union. This decision comes 7 years and 6 months after the appeals court's ruling.The subcontractor union had requested collective bargaining with HD Hyundai Heavy Industries regarding the protection of union activities from April 11 to May 20, 2016. However, the company rejected the request, arguing that it was not the employer of the workers at the subcontractor and therefore not obligated to engage in collective bargaining. In response, the union filed a lawsuit demanding that the company fulfill its bargaining obligations.Both the first and second trials concluded that there was no explicit or implicit employment relationship between the defendant and the workers at the subcontractor, thus ruling that HD Hyundai Heavy Industries did not have a bargaining obligation toward the union.The Supreme Court's review focused on whether to maintain the previous legal principles regarding the scope of 'employers obligated to bargain' under the old labor union law, specifically Article 2.Article 2, Clause 2 of the labor union law defines an employer as a business owner, a manager responsible for business operations, or anyone acting on behalf of the business concerning its workers. The law was amended last September, often referred to as the 'Yellow Envelope Law,' to include individuals who, even if not parties to the employment contract, can substantially and concretely control or determine the working conditions of employees.The Supreme Court stated, "Since there is no explicit or implicit employment relationship between the defendant and the workers at the subcontractor, the lower court's determination that the defendant does not qualify as an employer obligated to bargain is not in violation of logical and experiential principles, nor does it misinterpret the legal principles regarding employers and collective bargaining under the old labor union law."The court emphasized that the previous legal principles regarding employers obligated to bargain under the old labor union law should be maintained as valid. The Supreme Court had previously ruled in 1986 that an employer with a bargaining obligation is one who has an explicit or implicit employment relationship with workers, directing and supervising them while providing wages in return for their labor.The court further explained that the wording of Article 2, Clause 2 of the old labor union law does not allow for the interpretation that all concepts of 'employers' defined in the labor union law include those who can substantially and concretely control or determine the working conditions of employees, even if they are not parties to the employment contract.Additionally, the court noted that Article 90 of the labor union law imposes criminal penalties of up to two years in prison or fines of up to 20 million won for unfair labor practices, and that the criteria for unfair labor practices related to refusal to bargain include the requirement of being an 'employer obligated to bargain,' necessitating a strict interpretation of this concept under the principle of legality.However, Justices Lee Heung-gu, Oh Kyung-mi, Shin Sook-hee, and Ma Yong-joo expressed dissent, arguing that previous case law should be changed. They pointed out that considering the legislative intent of the old labor union law, which guarantees workers' rights to collective bargaining and aims to improve working conditions and the economic and social status of workers, a contractor should be deemed an employer obligated to bargain with the union of subcontracted workers if they can substantially and concretely control or determine the working conditions, barring exceptional circumstances.* This article has been translated by AI. 2026-05-21 18:57:30

Korea's Financial Authority to Appoint Chief Inclusion Officer to Address Financial Exclusion The Financial Services Commission (FSC) is moving to designate Chief Inclusion Officers (CIFOs) within banks and financial institutions to address the issue of financial exclusion, which President Lee Jae-myung has described as a form of "predatory finance." The initiative aims to implement structural changes to remedy this problem. Additionally, to attract more foreign individual investors to the domestic stock market, the FSC plans to expand the scope of foreign integrated accounts to include exchange-traded funds (ETFs) and will hold a large-scale overseas investment briefing in September. During a press briefing on May 21, Lee Ok-yeon, chairman of the FSC, stated, "We need fundamental improvements to address the structural issues that create financial exclusion." He announced plans to establish a strategy promotion team for inclusive finance in June, which will consist of four divisions: general, policy for the underprivileged, financial industry, and credit infrastructure. The general division will focus on designating CIFOs within financial institutions to discuss ways to improve access to finance for low-income and vulnerable groups at the board and governance levels. The FSC is also considering measures such as providing immunity for employees actively engaged in inclusive finance, establishing a comprehensive evaluation system for inclusive finance, and linking evaluation results to financial institutions' incentives and compensation. Lee emphasized, "While we have focused on urgently rescuing marginalized groups pushed out of the formal financial system, it is now time to improve the very structures that lead to financial exclusion." Improvements to the credit evaluation system will also be discussed. The FSC has noted that the current credit evaluation system, which primarily relies on past delinquency and financial transaction history, fails to adequately assess individuals with limited financial transaction histories or those who have consistently repaid their debts. As a result, the FSC plans to rationally adjust the criteria for utilizing delinquency information and explore the introduction of credit growth accounts and alternative information centers that leverage non-financial data. Additional incentives to stimulate the stock market are also in the works. Specifically, to increase the influx of foreign individual investors into the domestic stock market, the FSC will expand the scope of foreign integrated accounts to include ETFs, which were previously limited to stocks. The large-scale overseas investment briefing, dubbed "Korea Premium Week," is set to take place throughout September. This event aims to systematically consolidate previously dispersed investment briefings into an international event representing the Korean capital market. * This article has been translated by AI. 2026-05-21 18:55:12

South Korea's Financial Authority Shifts Toward Inclusive Finance The Financial Services Commission (FSC) is set to implement a structural shift toward inclusive finance. This initiative follows President Lee Jae-myung's criticism of predatory lending practices and Policy Chief Kim Yong-beom's concerns regarding interest rate stratification and the exclusion of mid- and low-credit borrowers. The FSC has identified financial sector reform as a key priority for the second half of this year. To this end, Chairman Lee Ok-yeon proposed the 'Three-Tiered Inclusive Finance' model, aiming to address the systemic issues that push vulnerable borrowers into policy-backed microfinance and illegal lending. ◆ Lee Ok-yeon Proposes 'Three-Tiered Inclusive Finance' During a press briefing on May 21, Chairman Lee outlined the 'Three-Tiered Inclusive Finance' model. The first tier consists of formal financial institutions such as banks and savings banks, the second tier includes policy-backed microfinance, and the third tier offers alternative recovery financing for borrowers who cannot be accommodated by the existing financial system. He noted that the first tier has failed to adequately manage risk, resulting in mid- and low-credit borrowers being pushed into the second and third tiers. Lee explained that the role of financial institutions is to assess and manage risk, determining the future potential of borrowers. However, he pointed out that financial companies often gravitate toward the safest options, leading to a situation where vulnerable borrowers are not sufficiently absorbed by formal finance. This results in increased demand for policy-backed microfinance, which in turn cannot handle the overflow, forcing some borrowers into illegal lending. The second tier, policy-backed microfinance, and the third tier, recovery financing, serve as safety nets for borrowers excluded from formal finance. However, as demand from the first tier grows, policy-backed microfinance must operate on a large-scale, standardized basis, limiting its ability to manage individual cases. Lee emphasized the need for a long-term financial approach that utilizes relaxed funding sources, such as donations, rather than traditional bank deposit-based loans, focusing on the potential for recovery over five to ten years rather than the likelihood of default within one year. This movement by the financial authorities aligns with the concerns raised by the presidential office. President Lee Jae-myung recently stated, "Financial institutions are quasi-public entities, and inclusive finance is one of their obligations," urging action against predatory lending practices. Policy Chief Kim Yong-beom has also publicly addressed the limitations of the credit evaluation system and the issues of interest rate stratification and exclusion of mid- and low-credit borrowers. Amid the ongoing scrutiny of long-term debt collection practices, there is a growing recognition of the need to reform both conservative lending practices and the credit evaluation system within the financial sector. ◆ Expanding 'Korea Premium' In conjunction with the shift toward inclusive finance, Chairman Lee also outlined plans for capital market globalization. While efforts have previously focused on eliminating the 'Korea Discount' in domestic markets, the aim is now to attract foreign investment into the domestic stock market, transforming it into a 'Korea Premium.' Lee stated, "We will actively pursue the globalization of capital markets to facilitate the influx of global funds and high-quality assets," noting that while foreign individual investors are interested in purchasing Korean stocks, the existing mechanisms are insufficient to accommodate this demand. To facilitate this, the FSC plans to expand the scope of foreign integrated accounts from stocks to include exchange-traded funds (ETFs). The foreign integrated account system allows overseas investors to invest in the domestic stock market without needing to open separate accounts with domestic securities firms. Additionally, the government will host a large-scale overseas investor relations event named 'Korea Premium Week' in September, similar to Japan's 'Japan Week' and Taiwan's 'Taiwan Week.' This event aims to consolidate various overseas IR activities into a single international event representing the Korean capital market. The FSC is also accelerating efforts to improve capital market regulations. It is preparing to implement a ban on duplicate listings by July. To this end, two seminars will be held this month, and a draft of detailed regulations and guidelines will be released by the end of May or early June. Furthermore, the FSC reiterated plans to ease network separation regulations for financial companies that possess a certain level of security capabilities and are willing to enhance security using artificial intelligence (AI). There is also a possibility of completely lifting network separation regulations for financial companies with advanced security capabilities and AI integration.* This article has been translated by AI. 2026-05-21 18:49:55

KOSPI Surges Above 7800 as Foreign Investors Continue Selling The KOSPI index surged above 7800 for the first time since April 1, climbing more than 8% amid easing geopolitical tensions in the Middle East, a resolution in labor negotiations at Samsung Electronics, and strong performance from Nvidia. According to the Korea Exchange, the KOSPI closed at 7815.59, up 606.64 points (8.42%) from the previous trading day, marking the largest single-day gain in history. Kang Jin-hyuk, an analyst at Shinhan Investment Corp, stated, "The resolution of uncertainties surrounding the Samsung Electronics strike, Middle East tensions, and Nvidia's earnings has boosted risk appetite, leading to a strong upward trend in the index. Most sectors, including secondary batteries, biotech, and robotics, rebounded significantly." Lee Kyung-min, an analyst at Daishin Securities, noted, "Increased institutional buying and a stabilization in foreign selling have expanded the gains. The negative pressures that had been weighing down the market have eased, resulting in a strong rebound." In the securities market, institutions purchased over 3.2 trillion won worth of stocks, driving prices higher, while individuals sold approximately 2.8 trillion won. Foreign investors continued their selling streak for the 11th consecutive trading day, offloading around 400 billion won in stocks. Notably, Samsung Electronics reached a record high, closing at 299,500 won, up 8.51%. SK Hynix also recovered, rising 11.17% to 1,940,000 won. In the KOSPI market, nearly all sectors rose, particularly semiconductors and automobiles. The electric and electronics sector increased by 9.69%, transportation equipment and parts by 9.10%, manufacturing by 8.96%, insurance by 8.63%, machinery and equipment by 8.50%, retail by 8.32%, securities by 7.51%, finance by 7.01%, construction by 6.30%, and electric and gas by 5.71%. Samsung affiliates saw significant gains, with Samsung Life rising 13.78%, Samsung Electro-Mechanics up 13.48%, and Samsung C&T increasing by 12.96%. Hyundai Motor Group stocks also surged, with Hyundai Mobis up 25.23%, Hyundai Motor rising 12.50%, and Kia increasing 12.38%. LG Electronics hit its upper limit, while LG Electronics preferred shares rose by over 26%. The KOSDAQ index closed at 1105.97, up 49.90 points (4.73%) from the previous trading day. In the KOSDAQ market, foreign investors purchased 160 billion won, and institutions bought 140 billion won, supporting the index, while individuals showed a selling trend of nearly 300 billion won. EcoPro BM, the top KOSDAQ stock by market capitalization, rose 10.36%, while Iot Technics surged 18.83%, Rainbow Robotics increased by 16.46%, and Wonik IPS rose by 11.97%.* This article has been translated by AI. 2026-05-21 18:46:50

Domestic Insurers Provide War Insurance for 10 Ships in Hormuz Strait Ten domestic non-life insurance companies will jointly provide war insurance at the lowest applicable rates for ten vessels from small and medium-sized shipping companies operating in the Hormuz Strait. Eo Ik-yeon, chairman of the Financial Services Commission, announced on May 21 during a meeting with the shipping industry, policy finance institutions, and the insurance sector in Jongno, Seoul, that "domestic insurers will take responsibility for the return of the ten vessels from small and medium-sized shipping companies in the Hormuz Strait." He noted, "Given the nature of marine insurance, there is an unavoidable reliance on overseas reinsurers. This can create challenges for small and medium-sized shipping companies, which may struggle to secure insurance to return home safely due to their limited negotiating power." The support involves a risk-sharing arrangement among ten domestic non-life insurers, including Hyundai Marine & Fire Insurance, Samsung Fire & Marine Insurance, Meritz Fire & Marine Insurance, KB Insurance, and Hanwha General Insurance. Korean Re, a domestic reinsurer, will also participate. Previously, high reliance on overseas reinsurers raised concerns about soaring premiums or denial of coverage amid escalating war risks in the Middle East. To alleviate the burden of higher premiums faced by small and medium-sized shipping companies compared to larger firms, the Financial Services Commission decided to apply the lowest rates adopted by domestic insurers. The support targets the ten vessels currently waiting in the Hormuz Strait. Larger shipping companies were excluded due to their stronger negotiating power and the capacity of domestic insurers. The government plans to continue providing additional support within this framework if the conflict prolongs. The support measures will take effect immediately. Additionally, the Financial Services Commission urged insurers to expedite the relevant procedures to ensure appropriate compensation for the HMM-operated small bulk carrier Namoo, which experienced a fire incident while waiting in the Hormuz Strait on May 4.* This article has been translated by AI. 2026-05-21 18:45:00

Intensified Pressure for Candidate Unification in Busan North Gap Election 6.3 National Assembly by-elections are heating up in Busan North Gap, where Hah Jung-woo of the Democratic Party and Han Dong-hoon, an independent candidate, are in a tight race. As pressure mounts for unification between Han and Park Min-sik of the People Power Party, the party is showing signs of division.According to political sources on May 21, Han has recorded a lead in support for the first time in the three-way race for the Busan North Gap by-election. Previously, Hah had consistently led in polls, but recent data shows a shift. A survey conducted by Channel A and Research & Research from May 17 to 19 among 500 eligible voters in the Busan North Gap district revealed Han with 34.6% support, Hah with 32.9%, and Park with 20.5%. The margin between Han and Hah is within the poll's margin of error of 1.7 percentage points (conducted via 100% mobile phone interviews, with a sample error of ±4.4 percentage points at a 95% confidence level and a response rate of 10%).In a hypothetical two-candidate scenario, Han also outperformed Hah. In a potential matchup between Hah and Park, Hah led with 42.6% to Park's 32.4%. However, in a direct contest between Han and Hah, Han garnered 44.1% compared to Hah's 37.6%. This suggests that calls for unification behind Han may gain traction.Within the People Power Party, voices urging for unification are growing louder. Representative Park Soo-young called on party leadership to make a decision regarding candidate unification for Busan North Gap. He reportedly stated in a group chat among lawmakers, "My district, Busan Nam-gu, is currently trailing by 10-15 percentage points against the Democratic Party, and without decisive action from the Busan city party and the central party, the election will be difficult." Most Busan lawmakers who gathered on May 17 also expressed support for unifying conservative candidates.Busan mayoral candidate Park Hyung-jun said on May 19, "If we create momentum through candidate unification in Busan North Gap, it will positively impact the overall elections in Busan, Ulsan, and Gyeongnam. Nearly 70% of the People Power Party's supporters want unification, and responding to this is the candidates' public duty."However, Park and other leaders within the People Power Party maintain their opposition to unification. Park stated that a strategic unification would be a betrayal of the residents of North Gap, asserting, "Han is someone who has inflicted irreparable damage on the conservative camp." Earlier, party leader Jang Dong-hyuk also remarked on May 15 that "a unification based solely on vote calculations does not align with conservative values," emphasizing that the issue of unification should reflect the will of party members and the party itself.* This article has been translated by AI. 2026-05-21 18:42:35

KOSPI Soars as Market Reacts to Positive Developments It was a day filled with positive news. Following a dramatic resolution in negotiations involving Samsung Electronics, strong earnings from Nvidia, and hopes for progress in the Middle East ceasefire, the stock market saw a significant rebound on May 21. The KOSPI index rose by 606 points, marking an increase of 8.42%, the highest since April 1. The total market capitalization of the KOSPI surged nearly 500 trillion won, from 5904 trillion won the previous day to 6396 trillion won today. The KOSPI opened at 7486.37, up 3.85%, and continued to climb throughout the day, reaching a peak of 7819.23. It closed at 7815.59, the highest level since May 14. The KOSDAQ also finished strong, up 49.90 points (4.73%) at 1105.97, after starting at 1085.30, a 2.77% increase, and peaking at 1115.66. The semiconductor sector showed remarkable strength. Early in the session, investor sentiment focused on major semiconductor stocks like Samsung Electronics and SK Hynix, prompting a trading halt due to excessive buying. Samsung Electronics recorded over 10 trillion won in trading volume, with foreign and institutional investors net buying more than 1 trillion and 773 billion won, respectively. SK Hynix saw institutional net purchases exceeding 1.4 trillion won. Samsung Electronics experienced a significant surge, closing at 299,500 won, an 8.51% increase from the previous day. In pre-market trading, it even reached 300,000 won, up 6.95%. The market interpreted the resolution of a potential strike, just hours before it was set to begin, as a relief for investors. SK Hynix also surged by over 11%, reaching 1,900,000 won. The rise of Samsung Electronics and SK Hynix positively impacted other stocks, including SK Square, Samsung Electronics preferred shares, Samsung Life Insurance, and Samsung C&T. LG Electronics benefited from the KOSPI's surge and expectations related to its robotics value chain, closing at the daily limit of 235,000 won. The market's rebound was attributed to a calming of U.S. Treasury yields and international oil prices, which mirrored the upward trend in the New York stock market. Additionally, U.S. President Donald Trump mentioned that negotiations with Iran are in the final stages, further easing geopolitical risks. Nvidia, a global leader in AI, reported earnings that exceeded market expectations, igniting a rally in tech stocks. Nvidia has set a new revenue record for 12 consecutive quarters, with adjusted earnings per share (EPS) of $1.87, surpassing Wall Street's consensus and reaffirming the momentum of AI growth. KOSDAQ leading stocks also saw gains. Among the top market cap stocks, EcoProBM rose by 10.36%, reclaiming the top position. EcoPro and Rainbow Robotics increased by 9.35% and 16.46%, respectively. Alteogen fell by 2.23%.* This article has been translated by AI. 2026-05-21 18:40:08

Taiwan President Tsai Ing-wen Declares Taiwan a Sovereign Nation Tsai Ing-wen, the President of Taiwan, stated that "Taiwan is already a sovereign independent nation." Her remarks came as U.S. President Donald Trump mentioned the possibility of a call with her. Tsai reaffirmed her stance of rejecting China's claims of sovereignty while emphasizing the need to maintain the status quo across the Taiwan Strait. According to Reuters on May 20, during a press conference marking her second anniversary in office, Tsai declared, "The Republic of China, Taiwan, is a sovereign independent nation." She asserted, "No country has the right to annex Taiwan," and added, "Taiwan's future cannot be determined by external forces." Tsai emphasized that the Taiwanese people pursue democracy and freedom, which should not be seen as a provocation. On the same day, Trump indicated he would speak with Tsai. Direct communication between the leaders of the U.S. and Taiwan has been considered a sensitive issue in U.S.-China relations since the U.S. severed diplomatic ties with Taiwan in favor of recognizing China in 1979. Tsai expressed her intent to convey to Trump that China is undermining peace and stability in the Taiwan Strait. She reiterated that Taiwan supports maintaining the status quo and that cross-strait dialogue should occur on the principles of equality and dignity. The necessity of strengthening Taiwan's defense capabilities was also highlighted. Tsai noted that acquiring U.S. weapons is essential for maintaining peace and stability in the Taiwan Strait. Taiwan aims to continue its security cooperation with the U.S. amid increasing military pressure from China. China responded strongly to Tsai's statements. The Taiwan Affairs Office of the State Council criticized her remarks as filled with falsehoods, deception, and hostility. They pointed out that Tsai's assertions of "sovereign independence" and "mutual non-subordination" reflect a narrative that China views as advocating for Taiwan's independence. The Chinese Foreign Ministry also stated that it would not accept any attempts to support Taiwan's independence. China considers Taiwan part of its territory and has not ruled out the use of force. In contrast, the Taiwanese government rejects China's sovereignty claims and maintains that the future of Taiwan should be determined by its people. The outcome of any potential call between Trump and Tsai could further escalate tensions in U.S.-China relations.* This article has been translated by AI. 2026-05-21 18:32:32