Prime Minister Kim Min-seok Launches Global AI Hub to Tackle Global Challenges "International organizations, governments, academia, industry, and civil society must come together to innovate towards 'AI for All' and 'human-centered inclusive AI.'" Prime Minister Kim Min-seok made this statement during his opening remarks at the 'Global AI Hub Vision Declaration Ceremony' held on May 21 at the Grand Hyatt Seoul. He introduced the vision of 'AI for All, AI to Solve Global Challenges.' The Global AI Hub is a global AI cooperation platform being established in South Korea. It aims to create a collaborative framework for addressing global issues by jointly utilizing AI technology and infrastructure among international organizations, governments, academia, research institutions, and non-profit organizations. Kim announced that the South Korean government will pursue three initiatives centered around the Global AI Hub. He stated, "We will work with the international community to establish safe and reliable AI norms and standards. The hub will lead in developing technical standards and guidelines, as well as control mechanisms for human safety and protection, clear ethical boundaries, and human accountability regarding AI norms." He emphasized that humanity is facing multifaceted and complex crises, such as infectious diseases, climate change, and food security, which cannot be resolved by individual countries or institutions alone, and that the AI Hub will take the lead in addressing these global challenges. Kim expressed hope that various stakeholders, including the United Nations, multilateral development banks, governments, businesses, and universities, will gather at the AI Hub to solve global problems. He also pledged to work towards bridging the AI divide, stating, "We will strengthen the capabilities of various organizations and countries through AI policy, technical advice, education, and training, creating inclusive cooperation pathways to ensure that the benefits of technology reach developing countries and vulnerable populations." The event was attended by representatives from nine international organizations, including the International Labour Organization (ILO), International Organization for Migration (IOM), International Telecommunication Union (ITU), United Nations Development Programme (UNDP), United Nations Environment Programme (UNEP), United Nations High Commissioner for Refugees (UNHCR), United Nations Children's Fund (UNICEF), World Food Programme (WFP), and World Health Organization (WHO). The South Korean government and these organizations issued a joint statement expressing their commitment to advancing the Global AI Hub. * This article has been translated by AI. 2026-05-21 21:13:27

Iran's Internet Shutdown Hits Economy, Leaving Over 1 Million Jobless The ongoing internet shutdown in Iran, now in its third month, is exacerbating the country's already strained economy, which has been affected by war and sanctions. More than 1 million people have lost their jobs as online sales, international transactions, and remote work have come to a standstill. According to the Wall Street Journal on May 20, Iran's internet connectivity has remained at just 1-2% of its total capacity in recent weeks, a stark decline from 90-100% before anti-government protests erupted last year. Alp Toker, founder of the internet monitoring group NetBlocks, described the situation as “the most extensive and prolonged shutdown in modern internet history.” The Iranian government began imposing access restrictions on January 8, eased them on January 23, but then tightened them again after the U.S. and Israel launched attacks against Iran on February 28. The impact is particularly severe for businesses and freelancers. Merchants who relied on international clients have lost contact, while online retailers have lost both orders and marketing channels. Software developers and freelancers are also struggling to continue their remote work. The employment crisis could worsen. Mohammad Reza Farzanegan, a Middle East economic expert at Philipps-Marburg University in Germany, estimates that around 10 million jobs are directly or indirectly linked to Iran's digital economy. He noted that large-scale connectivity restrictions diminish productivity and weaken business confidence. The Iranian government defends the measures as necessary due to wartime conditions. Iran's Minister of Communications, Sattar Hashemi, stated earlier this month through state media that the internet restrictions are a response to the war situation. However, the government is also expanding selective access systems alongside the full shutdown. The so-called 'Internet Pro' system allows some users to regain limited access. The state-owned Iran Mobile Communications Company has been providing partial internet access and international IP connectivity through 'white SIM cards' since March. Experts warn that these restrictions could leave a lasting burden on Iran's economy even after the conflict ends, as countries with potentially restricted internet access are viewed as high-risk markets for investment and trade.* This article has been translated by AI. 2026-05-21 21:12:00

Kim Boo-kyum Aims to Transform Daegu into Southern Korea's Tech Hub Kim Boo-kyum, the Democratic Party's candidate for mayor of Daegu, stated that to revive the city's economy, a fundamental change in its industrial structure is necessary. He plans to integrate artificial intelligence (AI) into Daegu's traditional manufacturing sectors, including machinery, metals, automotive parts, and textiles, while positioning AI robotics, future mobility, healthcare, and quantum technology as new growth engines. In an interview with Aju Economy, Kim described his top campaign promise, 'Industrial Transformation,' asserting, "I will make Daegu the southern region's version of Pangyo," a reference to the tech hub near Seoul. On April 19, Kim held his first campaign promise announcement at his election office in Daegu's Dalseo District, where he outlined 'Industrial Transformation and Job Creation' as his core pledge. He aims to double Daegu's Gross Regional Domestic Product (GRDP) to 150 trillion won by 2035 and create 100,000 quality jobs. The starting point for Kim's industrial transformation is the advancement of existing manufacturing. He stated, "We will innovate design, processes, quality, and logistics by integrating AI into Daegu's robust manufacturing base." He envisions connecting the Su-seong Alpha City, Technopolis, DGIST, local universities, research institutions, and businesses to create an environment where young people can learn, work, and grow in Daegu. Kim also emphasized the importance of fostering youth entrepreneurship and cultural industries. He plans to establish an Asian Global Youth Entrepreneurship and Cultural Convergence Special Zone and create a 100 billion won youth entrepreneurship fund to help turn ideas into businesses and facilitate global expansion. He stressed, "We will create a city where young people can learn about future industries and challenge themselves to start businesses without leaving for the metropolitan area." "GRDP 150 trillion is not just a numerical promise" Kim has committed to achieving a GRDP of 150 trillion won and creating 100,000 quality jobs by 2035. He emphasized, "This is not just a numerical promise; it is a goal to change the industrial structure of Daegu and attract corporate investment." As part of his plan, he proposed a 'Five-Year Industrial Transformation Plan' that will be established immediately upon taking office, with annual goals that the mayor will personally oversee. Kim stated, "I will form a large company attraction team to directly engage with key firms in AI semiconductors, robotics, future mobility, and healthcare." He also revealed plans to expand investment cooperation with major companies in future industries, such as Samsung Electronics, SK Hynix, and Hyundai Motor. His aim is to create an ecosystem that connects not only production facilities but also partner companies, research and development functions, and local mid-sized enterprises. To achieve this, he plans to create a 'Daegu Support Package' that integrates industrial land, talent, finance, and regulatory improvements. Recent economic conditions in the region underscore Kim's concerns. According to data released by the National Statistical Office on June 26 last year, Daegu's GRDP decreased by 3.9%, the largest decline among cities and provinces nationwide. Kim stated, "I will personally meet with CEOs of companies and actively engage with them. We need to make Daegu an attractive destination for businesses," adding that he would shift from an administrative approach that waits for investment to one that actively attracts it. "Daegu's strength lies in directly applying advanced technology to manufacturing" As regions like the metropolitan area, Chungcheong, and Busan-Ulsan-Gyeongnam compete to attract advanced industries, Kim identified Daegu's comparative advantage. He said, "Daegu's strength is its ability to directly connect advanced technology with actual manufacturing sites." He believes that by combining the digital capabilities of Su-seong Alpha City with the manufacturing base in Seongseo and West Daegu, practical applications of AI in design, processes, quality control, and logistics can be achieved. In the robotics sector, he highlighted the strengths of the Korea Robot Industry Promotion Agency, the National Robot Test Field, and the Outdoor Mobile Robot Performance Evaluation Center. Regarding the quantum industry, he mentioned DGIST and the Daegu Digital Innovation Promotion Agency. Kim stated, "We will focus on quantum sensing, devices, equipment, optoelectronics, and sensors first," indicating a phased approach to developing Daegu as a hub for all advanced industries, starting with areas that can be connected to manufacturing. Kim also plans to adopt a different approach to attracting anchor companies. He noted, "Relying solely on demands for headquarters relocation has its limits," and proposed a package approach that combines testing, certification, talent, demand companies, funds, land, and tax incentives. He added, "We will create a structure where companies can validate and commercialize their products more quickly by coming to Daegu." "The key to youth outflow is jobs and wages" Addressing the issue of youth outflow from Daegu, Kim diagnosed it as fundamentally a matter of jobs and wages. He reported that young people he met expressed concerns that "the starting salary for new IT employees in Daegu is only 70% of that in Pangyo," and that they feel compelled to leave despite not wanting to be away from their families. Kim believes that supporting entrepreneurship alone will not solve the youth issue. His strategy includes opening opportunities for aspiring young entrepreneurs through a 100 billion won youth entrepreneurship fund and a youth entrepreneurship and cultural convergence special zone, while also creating stable jobs through corporate attraction and industrial advancement for those seeking employment. Nationally, the employment conditions for youth are challenging. According to the employment trends released by the National Data Portal last month, the number of employed youth decreased by 147,000 compared to the previous year, marking a continuous decline for 41 months since November 2022. The youth employment rate fell to 43.6%, down 0.9 percentage points, while the unemployment rate rose to 7.6%, up 0.1 percentage points. Kim asserted, "Youth outflow cannot be resolved with short-term support alone. We need to create a structure that allows for good jobs and better wages within the region through industrial transformation, attracting large companies, and nurturing future industries." He also proposed asset formation support measures, stating, "We will support asset formation of up to 30 million won for a maximum of five years through the 'Youth Dan-di-Chaeum Fund,'" adding, "We want our sons and daughters to be able to work and prepare for their futures in their hometowns." "Results matter more than the title of Deputy Prime Minister of Economy" In response to rival candidate Choo Kyung-ho's emphasis on his experience as a former Deputy Prime Minister of Economy, Kim directly countered, saying, "The title of Deputy Prime Minister is just a title, not an achievement in itself." He claimed that during his tenure as Prime Minister, Daegu's national funding growth rate was 10.94% in 2021 and 15.47% in 2022. In contrast, he noted that during Choo's time as Deputy Prime Minister, the growth rates were only 0.59% in 2023 and 0.94% in 2024. Kim also raised concerns about revenue shortfalls, stating, "In 2023, there was a revenue shortfall of about 56 trillion won, and in 2024, about 30 trillion won, which were passed on to local governments through cuts in local allocation taxes." Regarding the dynamics of the Daegu mayoral election, he emphasized the importance of cooperation with the central government and the National Assembly. Kim stated, "The new mayor will work on the same timeline as the remaining four years of the president's term, and the success of key issues like the TK New Airport will depend on who can better attract support and cooperation from the ruling party in the central government and the National Assembly." He concluded, "My strength lies in the political power and execution ability to turn Daegu's demands into reality. What Daegu needs now is a mayor who can deliver results, not just talk." * This article has been translated by AI. 2026-05-21 21:06:44

Foreign Shoppers Boost South Korea's Duty-Free Sales in Q1 After a prolonged slump, South Korea's duty-free industry is showing signs of recovery this year. The shift away from the costly daigong (Chinese personal shoppers) model to a focus on foreign high-spenders through K-content and experiential strategies is credited for this turnaround. The second quarter is expected to see continued growth, bolstered by the influx of foreign visitors during China's Labor Day and Japan's Golden Week holidays. According to the Korea Duty Free Association, total sales at domestic duty-free shops in March reached 1.08 trillion won, a 12.5% increase from the previous month (962.4 billion won). After starting the year with 1.07 trillion won in January, sales dipped in February but rebounded in March. The surge in sales is largely attributed to foreign tourists, with March's foreign sales climbing to 851.3 billion won, up 20.8% from February's 704.7 billion won. The number of foreign buyers also rose from 910,954 in February to 1,089,209 in March, marking a 19.6% increase. Compared to last March's 846,148 foreign buyers, this represents a 28.7% year-on-year increase. City duty-free shops led the recovery, with March sales reaching 803.3 billion won, a 16.8% increase from the previous month. Foreign sales accounted for 705.3 billion won, or 88% of the total. In contrast, domestic sales at duty-free shops fell from 257.6 billion won in February to 231.2 billion won in March, highlighting the stark difference in performance between foreign and domestic shoppers. Thanks to the rise in foreign sales, Lotte Duty Free reported Q1 sales of 792.2 billion won and an operating profit of 32.3 billion won, representing year-on-year growth of 24% and 111%, respectively, marking five consecutive quarters of profit. Shilla Duty Free also turned a profit in Q1 with sales of 884.6 billion won and an operating profit of 12.2 billion won. Shinsegae Duty Free reported sales of 589.8 billion won and an operating profit of 10.6 billion won, emerging from losses, while Hyundai Duty Free returned to profitability with an operating profit of 3.4 billion won. The simultaneous profitability of duty-free operators is seen as a sign of effective "qualitative restructuring." The industry has shifted away from its previous reliance on high-cost overseas luxury goods and daigong, quickly adapting to focus on K-beauty and content. By enhancing experiential content tailored to the diverse preferences of individual tourists (FIT), profitability has significantly improved. Shinsegae Duty Free has introduced K-pop themed stores like "K-Wave Zone" and a food curation space called "Taste of Shinsegae" to emphasize experiential content. Lotte Duty Free has revamped its K-culture experiential space, "Star Avenue," into an immersive exhibition area. Hyundai Duty Free has prominently featured over 40 K-beauty brands in its newly opened DF2 area at Incheon International Airport, which focuses on perfumes, cosmetics, liquor, and tobacco. Market analysts are optimistic about the duty-free sector's performance in the second quarter. According to the Korea Tourism Organization, the number of foreign tourists visiting South Korea in April reached 202,786, a 19% increase compared to the same period last year. The overlap of China's Labor Day and Japan's Golden Week in early May is expected to further boost foreign visitor numbers. An industry insider noted, "As the number of multinational individual tourists who prefer K-brands increases, the dynamics of attracting customers to duty-free shops are changing. With significant holiday effects and the upcoming summer peak season, we anticipate a continued positive trend in performance for the second quarter."* This article has been translated by AI. 2026-05-21 21:04:41

LG Electronics Shares Surge Amid Optimism for AI and Robotics LG Electronics saw its shares hit the daily limit increase as investor optimism grew around its new robotics and artificial intelligence (AI) ventures. The company’s shift away from a traditional home appliance focus has renewed expectations for growth, significantly improving investor sentiment. On May 21, the Korea Exchange reported that LG Electronics' stock closed at 235,000 won, up 54,000 won (29.83%) from the previous trading day. The surge in buying interest is attributed to expectations surrounding the expansion of its physical AI-related businesses, including humanoid robots, industrial automation solutions, and AI-based smart home technologies. The company has been re-evaluated as a beneficiary of the global expansion in AI infrastructure investment, leading to a rapid influx of capital. Additionally, the recent perception of being undervalued has contributed to a rebound in buying activity. The influx of foreign and institutional investors has further amplified the upward momentum. Market analysts suggest that this sharp rise in LG Electronics' stock is not merely a short-term event but reflects broader expectations for structural changes in the company amid an AI transition. There are predictions that the expansion of its robotics and B2B (business-to-business) operations could lead to a long-term re-evaluation of its valuation. Earlier, Kim Min-kyung, a researcher at Hana Securities, noted, "Despite a challenging operating environment, the company has secured profit resilience through comprehensive cost structure improvements and efficient marketing spending. At the same time, it is aggressively pursuing new business opportunities in robotics, solidifying its future growth drivers." He added, "The rapid increase in new orders for data center cooling solutions, along with discussions for collaboration with NVIDIA on physical AI, AI data centers, and mobility, are creating strong momentum for the company's AI-related business initiatives."* This article has been translated by AI. 2026-05-21 21:01:13

Labor Minister Discusses People-Centered AI Transition with ILO Chief Labor Minister Kim Young-hoon stated on May 21 that as the world faces significant changes due to artificial intelligence (AI) and digital transformation, a "people-centered AI transition" is more important than ever. He emphasized the need to create a model that harmonizes technological innovation with labor rights protection in collaboration with the International Labor Organization (ILO). During a meeting with ILO Director-General Gilbert Houngbo, who is visiting South Korea, the two discussed ways to strengthen strategic cooperation and expand South Korea's role within the ILO. This was Houngbo's first visit to the Ministry of Labor since taking office in October 2022. The discussions included topics such as the direction of people-centered AI policies, the South Korean government's approach to realizing a labor-respecting society, and enhancing partnerships in ILO cooperation projects, as well as ways to elevate South Korea's status within the ILO. Kim reflected on his past experiences representing the labor sector at ILO conferences, stating, "I was deeply impressed by the ILO's commitment to realizing people-centered labor values based on tripartism. It is particularly meaningful for me to welcome the ILO Director-General as the Labor Minister today." He noted that while technological innovation has historically created new opportunities, it has also significantly altered labor market structures and jobs. "In this era of transition, the direction of technological advancement must focus on people, ensuring that labor is not excluded," he said. Kim added, "South Korea aims to fulfill its role as a responsible nation amid the AI transition and changes in the international community. The Ministry of Labor intends to lead the AI transition in employment administration and internal operations provided to the public." He reiterated that a society where labor is respected and everyone can work happily is a universal core value promoted by the ILO. "The spirit of the ILO's Philadelphia Declaration, which asserts that labor is not a commodity but a right and value deserving respect, remains a solid foundation that we will actively participate in discussions to spread throughout the international community," he stated. Houngbo expressed gratitude for South Korea's proposal for a global AI initiative, emphasizing the need for international cooperation to create quality jobs and facilitate a people-centered transition in the AI era. Meanwhile, Houngbo's visit to South Korea will continue until May 22, during which he is scheduled to meet with the President and labor representatives, as well as visit the Seoul Employment Center.* This article has been translated by AI. 2026-05-21 20:58:20

Jin Air Introduces Simulator for Aircraft Fire Response Training Jin Air has completed the introduction of a simulator aimed at enhancing flight safety in preparation for the Airbus aircraft. The A320neo simulator is a training device that allows pilots to conduct simulated flights in an environment identical to the aircraft cockpit. It provides a realistic training environment through precise movements and high-resolution 4K projectors. The simulator can replicate extreme situations where visibility is compromised, including takeoffs, adverse weather conditions, and emergency scenarios. Earlier this year, a series of incidents involving portable battery fires on domestic and international flights highlighted the importance of pilots being familiar with response protocols. U.S. aviation authorities have also recommended smoke response training that simulates real-life conditions. Jin Air is focusing on enhancing pilots' ability to react instinctively, moving beyond mere memorization of manuals. A Jin Air official stated, "Pilots undergo regular training to respond to in-flight fires." Currently, five affiliated airlines, including Korean Air, have completely banned the use of auxiliary batteries on board. Following the simulator, Jin Air plans to introduce a Flight Training Device (FTD) as well. This training device will help pilots master normal and abnormal response procedures using systems identical to those in actual aircraft. Once implemented, Jin Air will operate two Full Flight Simulators (FFS) and one FTD, with an investment totaling approximately 22 billion won.* This article has been translated by AI. 2026-05-21 20:57:00

CJ CheilJedang Promotes K-Food at PGA's The CJ Cup CJ CheilJedang is set to promote K-Food and Korean culinary culture at the PGA Tour's The CJ Cup Byron Nelson, taking place from May 20 to 24 at TPC Craig Ranch in McKinney, Texas. The company announced on May 21 that it will operate a Bibigo brand experience space and food booths at the event. This year’s event features an expanded scale and enhanced interactive content. Attendees will find the "House of CJ" and two Bibigo concessions throughout the course. The "House of CJ" will be a large pantry-themed space showcasing Bibigo products, complete with a display area, photo opportunities, and tasting events for new products. A casual dining area designed to reflect the atmosphere of Hangang Park will be set up at the 7th hole, allowing spectators to enjoy Bibigo menu items while watching the tournament. Collaborative menus featuring both domestic and international chefs will also be highlighted. Notable participants include Chef Bo McMillan, winner of the American cooking show "Iron Chef"; Chef Park Jung-hyun from the New York fine dining restaurant "Atomix"; and Chef Yoo Yong-wook, who appeared on "Black and White Chef Season 2." Each day, the chefs will present different dishes using Bibigo dumplings, kimchi, K-sauces, and soba chicken. At the 17th hole, a grab-and-go menu will offer convenient meal options, featuring snacks made with Bibigo dumplings and gochujang in both original and spicy versions. Cocktails made with Korean distilled spirits will also be available. CJ CheilJedang plans to showcase four cocktail varieties using Munbaeju and Gamuchisoju through its premium distilled spirit brand "Jari," which is set to launch in the U.S. market later this year after collaborating with local breweries. Since 2018, CJ CheilJedang has introduced the Bibigo brand and Korean cuisine to the global market through The CJ Cup. The players' dining area has been recognized as the "best dining spot" on the PGA Tour, becoming a signature feature of the tournament. A CJ CheilJedang representative stated, "This year, we have prepared a wider range of content and an expanded scale to allow global audiences to experience Korean culinary culture. We plan to continue promoting the appeal of K-Food in the future." The CJ Cup is a PGA Tour event hosted by CJ Group. Launched in 2017 as the first PGA Tour event in South Korea, it has provided local golf fans with the opportunity to watch global star players. Following the COVID-19 pandemic, the tournament moved to the U.S. and has been held under the name "The CJ Cup Byron Nelson" since merging with the 80-year-old Byron Nelson tournament in 2024.* This article has been translated by AI. 2026-05-21 20:54:21

Japan Faces Supply Chain Concerns Amid Rising Naphta Procurement Issues Concerns over naphta procurement, triggered by escalating tensions in the Middle East, are spreading beyond Japan's industrial sectors into the political arena. While the Japanese government asserts that "overall supplies are sufficient" to mitigate these concerns, industries are preparing for potential disruptions and price increases in packaging materials, printing inks, paints, and housing equipment. On May 20, a parliamentary debate took place where Prime Minister Sanae Takaiichi clashed with opposition leaders. The worsening situation in the Middle East and the issue of naphta supply emerged as key topics, elevating raw material supply challenges from an industrial issue to a political one. Asahi Shimbun reported on May 21 that during the debate, Takaiichi acknowledged, "There are bottlenecks occurring in various locations regarding naphta supply," adding that "naphta, which should be sufficient, is not being properly supplied to the field." While maintaining that the total amount of naphta is not lacking, she indicated that issues are arising in the distribution process. Opposition members cited material procurement difficulties and soaring prices, calling for support for supply-side companies, to which Takaiichi responded that she would address these issues. Naphta, a petrochemical raw material extracted from crude oil, is used as a fundamental component in various industrial products, including plastics, synthetic resins, printing inks, paints, and packaging materials. Japan heavily relies on the Middle East for its crude oil and naphta supply, and the prolonged blockade of the Strait of Hormuz has increased burdens across industrial sectors. A notable example illustrating the disconnect between government and industry perceptions is the packaging change by food giant Calbee. On May 12, Calbee announced it would switch the packaging of 14 key products, including potato chips, to black and white due to instability in securing printing inks derived from naphta. According to Asahi, a senior official from the Prime Minister's office expressed strong displeasure at Calbee's response, suggesting it exaggerated supply concerns for media attention, while dismissing the possibility of ink shortages. Following Calbee's announcement, the government quickly contacted the company to clarify that the overall supply of naphta was adequate. Officials close to the Prime Minister viewed Calbee's actions as an overreaction, fearing that such reports could spread anxiety to other companies. However, Calbee has maintained its decision to switch to black and white packaging, stating it is a measure to ensure stable product supply. Takaiichi's Government on Edge The government's sensitive reaction stems from concerns that raw material shortages could dampen consumer spending and business activities. With high approval ratings serving as a driving force for Takaiichi's administration, there is apprehension that supply issues could lead to inflationary pressures and dissatisfaction with the government. In April, TOTO, a major housing equipment company in Japan, temporarily halted new orders for unit baths due to concerns over procuring naphta-derived solvents, prompting the Ministry of Economy, Trade and Industry to swiftly assess the supply situation and adjust supply chains. TOTO has since gradually resumed new orders. However, similar procurement issues have arisen, leading to discussions within the government about the limitations of responding reactively to each individual problem as they arise, Asahi reported. The government's assertion that "naphta is sufficient" is based on total volume calculations. According to Asahi, Japan's typical monthly naphta supply is approximately 2.8 million kiloliters, comprising about 1.2 million kiloliters from imports from the Middle East, 1.1 million kiloliters from domestic refining, and 450,000 kiloliters from non-Middle Eastern imports. With the blockade of the Strait of Hormuz drastically reducing imports from the Middle East, the Japanese government plans to utilize its oil reserves to maintain domestic production and increase procurement from regions outside the Middle East, such as the United States and Peru, to fill the shortfall. Additionally, the government claims to have secured 1.8 months' worth of supply based on the conversion of intermediate products held by the private sector into naphta equivalents. The issue lies in the potential discrepancy between the government's "total" figures and the "item-specific quantities" needed by companies. Intermediate products are often tailored for specific uses and are not easily interchangeable, meaning that even if the overall supply is adequate, shortages can occur for specific products. Matsuo Ko, head of the Energy Economics and Social Research Institute, pointed out to Asahi that "there is a risk of shortages for certain products." The gap between the government's reported naphta inventory and the actual usable inventory in the field is contributing to the confusion. In addition to quantity, price is also a concern. While the government maintains that there is "sufficient" supply based on overall figures, the process of sourcing alternatives from outside the Middle East can lead to increased raw material costs and transportation expenses, ultimately raising the burden on companies. Reports indicate that some companies in the printing ink sector have already raised prices by more than 30%. Price increases are also being observed in consumer goods that use naphta-derived materials for packaging, such as paper diapers and natto. Asahi noted that while the Japanese government continues to repeat the message that "overall supplies are sufficient" to prevent social unrest, companies are proactively preparing for potential procurement disruptions and price hikes. The supply chain concerns originating from the Middle East are extending beyond energy prices, affecting the broader economy, including consumer goods and housing equipment, putting Takaiichi's administration's crisis management capabilities to the test.* This article has been translated by AI. 2026-05-21 20:49:20

Labor Minister Kim Young-hoon: Negotiations Require Compromise "Negotiations are harder than strikes. Both sides made concessions." On May 21, Labor Minister Kim Young-hoon appeared on the YouTube program "Choi Wook's Maebul Show" and stated, "I believed that making public moves could create resistance, so I continued to persuade and coordinate behind the scenes." Minister Kim personally mediated the final negotiations between Samsung Electronics and its labor union the previous day at the Gyeonggi Regional Employment and Labor Office. The two sides reached a tentative agreement just over an hour before a planned general strike. In the tentative agreement, 40% of the special management performance bonus for the DS division will be prioritized for the entire semiconductor sector, while the remaining 60% will be distributed differentially among business units. Additionally, the implementation of penalties for loss-making divisions will be postponed until next year. The union plans to hold a vote from 2 p.m. on May 22 to 10 a.m. on May 27 to decide whether to accept the agreement. Minister Kim noted, "The Central Labor Relations Commission's pre-adjustment and two post-adjustments did not find common ground," adding, "While Samsung Electronics is a representative company in our country, it has been a non-union company for a long time, leading to a lack of experience in labor relations. The Samsung Electronics super-large union is also a newly formed union without a higher-level organization." He continued, "The clash of desires over how to distribute the enormous added value generated by technological innovation is a growing pain that our society must experience at some point." Minister Kim specifically mentioned that persuading management was challenging. "If both sides had demanded 10% and 5%, a compromise could have been reached at the midpoint of 7.5%. However, when principles clash, it becomes difficult to resolve," he said. "Management's principle that 'there should be rewards where there is performance' was very firm." He identified the 'clash of principles' as the biggest obstacle in the negotiations. "The union accepted the terms, but management did not, making it difficult for the second post-adjustment to proceed. It was not easy to persuade management. Adjustments involve both quantitative and qualitative aspects, including values and principles," he explained. "Quantitative aspects can allow for some compromise, but when principles clash, resolution is difficult," he added. "For example, the company argued that since this is a special performance bonus, rewards should be given where there is performance, questioning how to compensate loss-making areas. While I believe we should respect the company's principles, there are no principles without exceptions." Minister Kim suggested, "When introducing new systems, just as laws have transition provisions and preparation periods, we should propose a postponement of the implementation date," noting that this proposal helped break the deadlock. Regarding the adjustment process, he stated, "Both labor and management made concessions. The union stepped back from its previous position, and by proposing a postponement of the implementation date, we were able to create a breakthrough in dialogue." He also addressed Samsung Electronics union members, saying, "Not all demands can be met at once. It is important to understand that the leadership has been deeply concerned while leading 70,000 members, and we should approach the next steps with the mindset that any shortcomings can be addressed later." He cautioned, "If the union becomes divided and each member looks out for themselves, any future agreements will become even more difficult. We must consider not only short-term gains but also sustainability." In response to claims that the recent labor conflict at Samsung Electronics is a result of the so-called 'Yellow Envelope Law,' he countered, "Criticizing the Samsung Electronics union as an aristocratic union that does not care for its partner companies, while arguing that the Yellow Envelope Law aims to reduce the gap between primary and subcontractors, is a contradiction in terms."* This article has been translated by AI. 2026-05-21 20:46:25