Lee Jae-myung urges end to 'pro-labor vs. pro-business' divide in Labor Day speech President Lee Jae-myung said Thursday that South Korea can move toward a better future only by breaking what he called an outdated binary that “pro-labor is anti-business” and “pro-business is anti-labor.” Speaking at a Labor Day ceremony at the Blue House, Lee said he would “open a path of shared growth where labor and business move forward together.” Lee said growth that leaves no future for workers — who make up most of the public — “cannot be called real growth.” He described workers as the key economic actors, supporting the economy through production at work and driving development as consumers outside the workplace. The following is the full text of President Lee’s Labor Day address. Dear fellow citizens, And workers — the proud name that moves the world, Today, we gather to honor the sweat, dedication and value of labor as we mark Labor Day, which has “reclaimed its name” for the first time in 63 years. With us are senior figures from the labor community and representatives of economic organizations. Workers from many fields — including civil servants and teachers — and those engaged in new forms of work are also here. Because workers across the country quietly fulfilled their responsibilities and kept workplaces running, today’s Republic of Korea was possible. I extend my respect and gratitude to all workers in this land — the drivers of production, the core engine of economic growth and the leading force behind our nation’s development. Most people in Korea work for a living. The forms of work vary, but people provide their labor and sustain their lives in return. Yet labor is not only a means of making a living. Through work, we realize ourselves, change our lives and bring change to the world. Labor supports an individual’s daily life, protects a family’s present and is the source of strength that carries our community into tomorrow. I, too, worked in a factory as a child laborer. I would head to work early in the morning and end the day late at night — sometimes at dawn — with hands stained with grease. It would be a lie to say it was not exhausting. But being able to protect my family with the sweat I shed at work was a great comfort and the strength that made me who I am today. I was a child “worker,” and I am still proud of that name. That is why today, when we use the name “Labor Day” rather than “Workers’ Day,” feels especially meaningful to me. A moment ago, we heard the voices of many workers. Though their jobs, generations and genders differ, their voices carried the same dream — a dream no different from what I felt as a child factory worker. The desire to work safely and have one’s labor respected does not change, no matter the era or circumstances. As a president who once was a child factory worker, I will answer your voices with a deep sense of duty. Dear workers, We stand in the middle of enormous change. Artificial intelligence is reshaping industries and the way we work. The climate crisis is also redefining the standards of national competitiveness. Rapid change may be an opportunity for some, but a major threat to survival for others. Many forecasts say machines and AI will replace much of human labor as technology advances. But we must not demand one-sided sacrifice from workers in the name of productivity alone. Growth without a future for workers — who make up most of the public — cannot be real growth. Workers are the most important economic actors, sustaining our economy through production and driving development as consumers. Even if this wave of change is unavoidable, finding a path of shared growth is the way to a sustainable tomorrow for all of us. In this great transition, the government will take special care so that each working citizen can build a life that is safer, fairer and more dignified. On this Labor Day, I make three promises to the public and to workers. First, we will never compromise on workplace safety. We will build a normal country where workers do not have to risk death to do their jobs. At any worksite in Korea, life and safety must never be placed behind profit and performance. I will make clear that protecting safety is not a cost or an option, but the minimum basic duty that the state and companies must uphold. Second, we will ensure that all workers can enjoy basic labor rights. Rights must not vary because employment types or ways of working differ. Whether regular or nonregular, prime contractor or subcontractor, platform worker or freelancer, anyone who works should be treated fairly. We will pay close attention so that no one falls into blind spots of protection. Third, we will open a path of shared growth where labor and business move forward together. A society that respects labor and a country where it is good to do business are not incompatible. There are no workers without companies, and no companies without workers. Only by breaking the outdated binary of “pro-labor is anti-business” and “pro-business is anti-labor” can we move toward a better future. Respect for labor is not a matter of charity or favor. Growth without labor is only half a growth and cannot be sustainable. Growth with labor is growth with a future. We will build an ecosystem of shared growth where labor and management can respect each other and talk. We will realize “real growth” in which labor and business, fairness and innovation, and growth and distribution reinforce one another in a virtuous cycle. Dear fellow citizens, Today, along with this Labor Day ceremony, various events are being held nationwide, including a street festival at Cheonggye Plaza. These events were prepared over a long period with labor, management, government and civil society working together. I believe that the fact that labor and management are together here today shows the efforts made so far for respect and shared growth. People with different positions cannot always think the same way. But we must not turn away from one another or become hostile because of differences. The first step toward dialogue already began in the preparation process. The fact that everyone has started drawing a blueprint for shared growth together is, in itself, one of the greatest meanings of today’s Labor Day. Today’s dialogue must continue. We will turn what we discussed here into changes in workplaces and into policies that improve people’s lives. We will, together with the public and with workers, build a normal country where people can return safely to their families after the workday ends — a Korea where labor is respected, workers are treated with dignity, and everyone who works hard can shine. Thank you.* This article has been translated by AI. 2026-05-01 10:33:20

Lee Jae-myung Says Growth Without Labor Is ‘Only Half’ as He Marks Labor Day President Lee Jae-myung said May 1 that “growth with labor is growth with a future,” calling for a sustainable economy built on respect between workers and companies. Speaking at a Labor Day ceremony at the Cheong Wa Dae State Guest House, Lee said respect for labor “is not simply a matter of consideration or charity.” “Growth without labor is only half, and it is not sustainable,” he said, pledging to build “a cooperative ecosystem” in which labor and management respect each other and can hold dialogue. Lee stressed that a society that respects labor and a country that is good for doing business are not mutually exclusive. “There are no workers without companies, and no companies without workers,” he said. He said he would pursue “real growth” in which labor and business, fairness and innovation, and growth and distribution reinforce one another. Lee also pointed to Labor Day events being held nationwide, calling them the result of long preparation by labor, management, government and civil society. He said the joint presence of labor and business at the ceremony itself reflected efforts toward respect and coexistence. On the era of artificial intelligence, Lee said many expect machines and AI to replace most human labor, but warned that workers should not be forced into “one-sided sacrifice” solely for productivity gains. “Growth without a future for workers, who make up the majority of the public, cannot be called real growth,” he said, adding that even amid unavoidable change, finding a path of coexistence is key to a sustainable tomorrow. Lee, who noted he once worked as a factory boy, recalled starting early for work and ending late at night, sometimes at dawn, with oil-stained hands. He said being able to protect his family through the sweat of labor was a comfort and a source of strength that helped shape who he is today. Lee made three pledges. First, he said he would “never compromise” on workplace safety. Second, he promised to ensure all workers can enjoy basic labor rights, including regular and nonregular workers, prime contractors and subcontractors, platform workers and freelancers. Third, he pledged to open a path of coexistence in which labor and business move forward together, again saying a labor-respecting society and a business-friendly country can coexist. The ceremony was the first Labor Day event since “Workers’ Day” was renamed “Labor Day” after 63 years. It was also Lee’s first Labor Day since taking office, and the first time Cheong Wa Dae has hosted the ceremony. The day had been called “Workers’ Day” since a 1963 law established it. The official name changed after a legal revision in October last year. About 120 workers from various occupations and generations attended. For the first time, both major umbrella labor groups — the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions — took part, the report said.* This article has been translated by AI. 2026-05-01 10:24:17

South Korea Exports Top $80B for Second Straight Month on AI Chip Surge South Korea’s exports stayed above $80 billion for a second straight month in April, extending the momentum after first crossing the threshold in March, led by a sharp rise in semiconductor shipments tied to the global boom in artificial intelligence. With the Middle East war sending shock waves across industries, exports are being seen as a key support for the economy. According to Yonhap, the Ministry of Trade, Industry and Energy released April trade figures on Thursday. Exports rose 48.0% from a year earlier to $85.89 billion despite the war in the Middle East. After never having posted a $70 billion month, South Korea exceeded $80 billion in March for the first time and remained above that level in April. April’s total was the second-highest monthly export figure on record, following March’s $86.6 billion. Average daily exports, adjusted for working days, also rose 48.0% to $3.58 billion, topping $3 billion for a third consecutive month. Semiconductors drove the gains. Chip exports surged 173.5% to $31.9 billion, the second-highest monthly total on record after $32.8 billion in March. Semiconductors exceeded $30 billion for a second straight month and posted a record for the month for the 13th consecutive month. Auto exports fell 5.5% to $6.17 billion, as logistics disruptions from the Middle East war and increased local production in the United States following U.S. tariffs weighed on shipments. Exports of eco-friendly vehicles, including electric and hybrid models, increased. Petroleum product exports rose 39.9% to $5.11 billion on higher oil prices, but export volumes fell 36.0%. The ministry said exports of gasoline (down 43.0%), diesel (down 23.2%) and kerosene (down 99.9%) dropped sharply from a year earlier after export control measures were introduced for petroleum products. Petrochemical exports increased 7.8% to $4.09 billion, though export volumes fell 20.9% as domestic supply rose. Among 15 major export items, eight posted gains, including computers ($4.08 billion, up 515.8%) and wireless communications equipment ($1.62 billion, up 11.6%). Exports to China climbed 62.5% to $17.7 billion, extending gains for a sixth straight month on stronger shipments of semiconductors and other IT products such as computers and wireless communications equipment. Exports to the United States rose 54.0% to $16.33 billion, led by items such as semiconductors and computers that were described as exempt from tariffs. Shipments to ASEAN rose 64.0% to $15.41 billion, and exports to the European Union increased 8.5% to $7.19 billion, also supported by semiconductors. Exports to the Middle East, however, fell 25.1% to $1.27 billion due to factors including logistics disruptions. Imports increased 16.7% to $62.11 billion. Energy imports rose 7.5% to $10.61 billion, while non-energy imports climbed 18.8% to $51.51 billion. The trade balance posted a $23.77 billion surplus in April, extending the surplus streak to 15 months. Industry Minister Kim Jeong-gwan said April marked the first time the country recorded exports of more than $80 billion and a trade surplus of more than $20 billion for two consecutive months while the Middle East war continued for more than two months. He attributed the results to expanding global AI investment, higher unit prices for petroleum products amid rising oil prices, and companies securing supply chains in advance. Kim warned that export volatility could increase due to intensifying competition in key products and difficulties in securing raw materials linked to the Middle East war. He said the government would seek to reduce burdens on companies through marketing, financing and insurance support and policies to diversify export markets, while actively using trade networks to secure additional alternative supplies of crude oil and naphtha. * This article has been translated by AI. 2026-05-01 10:18:18

Apple's incoming CEO signals new products as quarterly revenue hits record SEOUL, May 01 (AJP) - Apple's incoming chief executive John Ternus voiced strong confidence in the company's product pipeline, hinting at new categories on the horizon as the iPhone maker posted record fiscal second-quarter revenue. Speaking on a conference call on Thursday (local time) after Apple reported results for the January-March quarter, Ternus, who takes the helm in September from Tim Cook, said the company had "an incredible roadmap" ahead and was preparing fresh offerings, though he declined to disclose details. "Suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services.," Ternus said, suggesting work was under way on new product forms. He pledged to carry on the financial discipline that defined Cook's 15-year tenure. Apple posted revenue of $111.18 billion for the quarter, up 17 percent from a year earlier and surpassing the LSEG consensus estimate of $109.66 billion for an all-time high in the period. Earnings per share came in at $2.01, beating Wall Street's $1.95 forecast. iPhone sales jumped 21.7 percent to a record $56.99 billion but fell just shy of the $57.21 billion analysts had projected, while the iPad, Mac, wearables and services divisions all topped expectations. Services revenue reached $30.98 billion, and research and development spending climbed 33.6 percent to $11.42 billion as the company widened its artificial intelligence push. Cook flagged supply constraints during the quarter, particularly for the iPhone, tied to limited capacity at advanced chip nodes operated by Taiwan's TSMC, and warned that the squeeze would tighten in the April-June quarter. 2026-05-01 10:02:18

Holiday Weekend Forecast: Cool Mornings, Highs Up to 26C; Dry Air and Poor Dust in Seoul Area Saturday, the second day of the holiday weekend, is expected to bring chilly mornings and evenings but warmer conditions during the day. Yonhap News Agency reported Friday that morning lows are forecast at 8C to 16C, with daytime highs of 19C to 26C. Temperatures are expected to vary by about 15C between day and night, and starting on the 3rd, readings are forecast to fall below seasonal averages. With dry weather alerts in effect, the air will be very dry in Seoul, inland parts of the Chungcheong region, northeastern inland North Jeolla Province and inland North Gyeongsang Province. Authorities urged caution against wildfires and other fire risks. Skies will be mostly cloudy nationwide. Fine dust levels are expected to be "bad" in the greater Seoul area and "moderate" elsewhere, due to inflow of dust from overseas. Concentrations are forecast to ease gradually from the south. Waves are expected at 0.5 to 2.0 meters in the East Sea, 0.5 to 1.0 meters in the Yellow Sea and 0.5 to 1.5 meters in the South Sea. In offshore waters about 200 kilometers from the coast, wave heights are forecast at 0.5 to 2.0 meters in the East Sea and 0.5 to 1.5 meters in the Yellow Sea and South Sea.* This article has been translated by AI. 2026-05-01 09:42:17

UPDATE: Samsung Biologics union demands immediate talks as first-ever strike begins SEOUL, May 1 (AJP) - Samsung Biologics, the world's largest contract drug manufacturer by volume, was rocked on Friday by the first full-scale walkout in its 15-year history, with the union demanding management return to the bargaining table at once and the company warning of losses of up to 640 billion won ($434 million). The Samsung Biologics chapter of the Samsung Group labor union launched the strike on Friday, Labor Day, after 13 rounds of wage talks since December collapsed without a deal. The union has vowed to walk off the job through May 5. In a sharply worded statement issued as the strike began, the union accused executives of resorting to legal pressure and intimidation rather than substantive dialogue, blaming boardroom missteps — chronic understaffing, aggressive cost-cutting, and decisions made without input from the production floor — for the company's recent order shortfalls. "If the company is truly worried about losses and damage to client trust, it should stop shifting responsibility to employees and immediately enter genuine negotiations," the union said. Workers are demanding a 14 percent average pay raise, a one-off bonus of 30 million won per employee, and 20 percent of operating profit to be distributed as performance pay. Management has countered with a 6.2 percent wage hike, leaving the two sides far apart. The projected hit of 640 billion won amounts to about half of the company's first-quarter revenue of 1.26 trillion won. Samsung Biologics warns that biopharmaceutical manufacturing relies on a continuous, nine-stage process in which a single interruption can spoil entire batches of living cells, forcing them to be discarded as waste. A partial strike from April 28 to 30, joined by some 60 workers in the materials handling division, has already disrupted output of 23 products including cancer treatments, HIV medicines, and atopic dermatitis therapies, with damage estimated at 150 billion won. Chief Executive John Rim convened a town hall on Thursday and apologized to staff before issuing an afternoon message urging workers to reconsider joining the walkout, saying prolonged disruption could inflict irreversible damage on both the firm and its employees. Ahead of the walkout, the company filed for an injunction to block the strike. A South Korean court last month barred industrial action only on the final three stages — concentration and buffer exchange, drug-substance filling, and buffer manufacturing — while allowing the union to halt the other six. Samsung Biologics appealed the same day, arguing the entire production line must be tightly controlled. Industry observers warn that supply-chain disruption could erode Samsung Biologics' standing with global clients, who may shift orders to overseas rivals if delivery deadlines slip. The U.S. Food and Drug Administration and other regulators place heavy emphasis on process integrity, meaning even minor disruptions typically trigger full batch disposal regardless of actual quality outcomes. The walkout underscores deepening labor unrest across the Samsung empire. Affiliate Samsung Electronics, the world's largest memory chipmaker, faces an 18-day general strike from May 21 through June 7, with tens of thousands of workers demanding bonuses tied to 15 percent of operating profit — a sum that could reach 45 trillion won. The South Korean government has cautioned that a stoppage at the chip giant could ripple through the broader economy. 2026-05-01 09:25:08

As romance revives from recession in Korea, dating mimics reality TV SEOUL, April 30 (AJP) - For Jason Park, a corporate analyst in his mid-30s, the math of modern romance simply wasn’t adding up. Buried in work under lingering post-pandemic social atrophy, the prospect of a chance encounter felt less like a possibility and more like a statistical anomaly. "If I hadn't been there that day two years ago, I would still be wrapped up in work," Park says, glancing shyly at his girlfriend, Choi, a freelance announcer in her 30s. The pair met not through a serendipitous coffee spill or a mutual friend, but in the polished confines of a premium lounge bar—a curated "rotation dating" event designed for Seoul’s high-achieving singles. "That day, I didn’t just meet my life companion; I found a community." In South Korea, where the "dating desert" has become a matter of national discourse, romance is staging a comeback—not through traditional slow-burn courtships, but through high-end, highly structured social engineering. The statistics tell a story of romantic recession. As of 2024, nearly 75% of South Korean men aged 30 to 34 remain unmarried; for women in the same bracket, the figure sits at 58%. Yet, despite the narrative of a "non-marriage generation," the desire for partnership is rebounding. Recent data from the Planned Parenthood Federation of Korea shows that over 60% of single men and nearly half of single women express a desire to wed—a figure that has climbed for two consecutive years. This gap between desire and reality has birthed a burgeoning industry of "curated" dating. These are not the sterile, interview-like sessions of traditional matchmaking agencies. Instead, they are immersive experiences that feel, by design, like a localized episode of Heart Signal. From Screen to Script At a private lounge in Gangnam on a recent April afternoon, the air is thick with the "syntax of curated romance." Here, 40 participants in coordinated black-and-white attire mingle over wine. The atmosphere is less "blind date" and more "reality TV set." "The traditional setup invests an entire evening in a single proposition that may immediately fail," explains Helen Shin, a professor of Media and Communications at Korea University. "The rotation format diversifies that investment across many short exposures." Shin calls this "emotional portfolio logic." By meeting 20 people in one evening, the psychological sting of rejection is diluted, dispersed across a dozen micro-interactions rather than concentrated in one failed dinner. For Lee, a 36-year-old participant, the appeal is the escape from the "credential-checking" fatigue of apps and agencies. "Traditional agencies felt like interviews," she says. "You evaluate people as resumes. Here, you begin to realize what kind of person you’re genuinely drawn to naturally." At elite clubs like The Grace Club, the "natural" feel is underpinned by rigorous gatekeeping. Entry requires mandatory identity verification, employment screening, and a pre-screening of photographs. Most participants are professionals from "top-tier" backgrounds—lawyers, doctors, and engineers from conglomerates like Samsung and Hyundai. While critics might view this as cold calculation, Professor Shin suggests it is a form of "defensive realism." "Verification functions as a technology of trust in a moment when the social institutions that once underwrote courtship—family introductions, workplace circles, neighborhood networks—have substantially eroded," Shin says. In this new ecology, the dating app, the reality show, and the premium event have merged into a single, recursive loop. Participants arrive already fluent in the observational habits of the screen, viewing their own lives through the "evaluative gaze" of an invisible camera. Despite the rise of AI-driven matching and the efficiency of digital filters, the participants in Yeongdeungpo date night remain firm on one point: chemistry cannot be coded. Even during the height of Covid-19, when "online rotation" sessions were held via group chats, the goal was always the eventual physical meeting. As 10 p.m. nears on a rooftop in western Seoul, the clinking of glasses signals the end of the "event" and the beginning of something more traditional. Phone numbers are exchanged; future dinners are planned. Whether this represents a permanent shift in Korean courtship or a temporary adaptation to economic strain remains to be seen. But for a generation navigating scarcity and uncertainty, the most rational response to a chaotic world appears to be a perfectly curated evening. 2026-05-01 09:00:00

Busan mayoral race tight as voters split between change and conservative unity With the June 3 Busan mayoral election approaching, voter sentiment appears split with no clear direction, clouding the outlook. The contest is taking shape as a clash between calls for a change in government and appeals for conservatives to unite, with televised debates and the Buk-gu Gap by-election emerging as key variables. Democratic Party candidate Jeon Jae-su and People Power Party candidate Park Hyung-joon plan to face off in at least three TV debates before Election Day: May 12 on Busan MBC, May 19 on KNN and May 27 on Busan KBS. The only official debate hosted by the election commission is the KBS event. Both camps say additional debates remain possible if requested. With both sides already trading sharp attacks over pledges and Park’s record at City Hall, the debate performances are seen as a potential late decider. On the ground, views are sharply divided. In a recent field report by Aju Business Daily in parts of Haeundae and Buk districts, some residents argued it is time for change, saying, “I’ve voted conservative for 75 years, but now feels like the time to change,” and “The People Power Party doesn’t seem sorry to the public.” Some voters also voiced expectations for Jeon, saying they had heard “Jeon Jae-su gets things done.” Others cited uneven policy focus and weak communication. A self-employed man in his 30s who runs a private academy in Dongnae District said, “With policies centered on Haeundae, other areas feel left out,” explaining his support for Jeon. Another office worker said a ruling-party candidate could have an advantage “considering cooperation with the central government,” pointing to the value of alignment. At the same time, calls for conservative unity remain strong. Some residents said Park “ran city administration smoothly” during his term, backing a stability argument. Many also raised allegations that Jeon accepted money, with comments such as, “He should have cleared that up before running,” and “Because of that, it’s hard to support him.” Among older voters, the view that “Busan should vote for the People Power Party” was still evident. The split is reflected in polling. In a survey commissioned by KBS Busan, Jeon had 40% support and Park 34%, a tight race within the margin of error, making the outcome difficult to predict. The Buk-gu Gap by-election is also drawing attention. High-profile politicians, including Han Dong-hoon, the former People Power Party leader, have joined campaign stops, potentially boosting turnout and influencing the mayoral race. One voter said the by-election would bring them to the polls and that they would vote in the mayoral contest as well, adding, “I think I’ll end up voting for the conservative candidate.” Visits by senior figures from both parties are also intensifying the campaign, as they fan out across Busan to rally support and frame local issues in national political terms. With debates, possible spillover from the by-election and an all-out push by national party leaders, the Busan mayoral race is expected to remain a close contest through the final days.* This article has been translated by AI. 2026-05-01 08:48:21

Hanwha Solutions Rights Offering Stalled as Regulators Seek More Disclosure Hanwha Solutions’ plan for a rights offering has been held up after financial regulators repeatedly demanded revisions. Even after the company cut the size and resubmitted the filing, it was blocked twice, underscoring that the issue goes beyond paperwork. The episode shows that corporate fundraising is no longer treated simply as a matter of raising money, but as a test of market trust and disclosure. A rights offering is a basic way for companies to strengthen capital. Raising funds to reduce debt and improve financial stability is generally viewed positively, since debt repayment is central to improving a balance sheet. But this case drew skepticism because saying the money will reduce debt is not enough to persuade investors. The core question is not debt repayment itself, but what comes next. The company did not sufficiently explain whether the offering was aimed only at short-term liquidity or tied to a medium- to long-term growth strategy. Markets look beyond near-term financial repairs to a credible path to future value creation. For investors, the key is not only why money is needed now, but what future it is expected to produce. Without that link, a rights offering can be read less as a necessary step and more as a warning sign. Another point is the role of the Financial Supervisory Service. The entity that put the brakes on the offering was not the market but the regulator, indicating that minimum disclosure standards were not met even before investors could make their own judgments. Regulators check transparency and formal requirements; markets then assess value based on that information. This case suggests the basic conditions for such evaluation were not in place. Regulatory intervention, however, should not be dismissed as excessive. Capital markets run on trust. In South Korea, where retail investors make up a large share of trading, information gaps can be significant, making a degree of advance screening necessary. The goal is not to replace the market, but to ensure the minimum foundation for it to function. Stronger oversight does not automatically mean a more mature market, but it can be part of a transition toward building trust. For companies, the episode offers clear lessons. First, the purpose of fundraising must be specific. Vague references to “financial improvement” are not enough; companies should explain what they will invest in, what returns they expect and when results may appear. Second, advance communication with investors is essential. Because a rights offering dilutes existing shareholders, companies need a process to build understanding and consent. Third, companies should present realistic measures to address concerns about shareholder value. It may be impractical to demand share buybacks or higher dividends from a cash-strapped firm. Instead, companies can build trust by setting a reasonable discount rate, attaching clear conditions to how funds will be used and strengthening management accountability. What matters is not formal fixes, but a plan investors can accept. Financial authorities also need a balanced approach. Investor protection matters, but oversight should not choke off normal corporate fundraising. Consistent standards and a predictable review process would help companies prepare and support broader market confidence. Ultimately, the point is straightforward: Raising capital is not simply a right; it is a process of persuasion. When a company asks the market for money without adequate explanation, the effort loses legitimacy. A rights offering is not just numbers; it is a narrative about what future a company intends to build. The Hanwha Solutions case is not only about one company. It reflects a South Korean capital market moving toward demanding more detailed disclosure and higher trust. Companies should raise transparency, regulators should clarify standards, and markets should judge on that basis. Only when those pieces align can the capital market function properly. Fundraising without trust eventually stops. And that trust begins not with figures, but with clear explanations.* This article has been translated by AI. 2026-05-01 08:42:58

Lesson From Korea Mine Reclamation Corp.’s Boleo Exit: Overseas Resource Investment Needs Clear Rules After investing 3 trillion won, it exited for about 2,900 won. By the numbers alone, the outcome is shocking and, judged only by the result, a clear failure. The Mexico Boleo copper mine project involving the Korea Mine Reclamation Corp. ended with a withdrawal that effectively wiped out most of the investment. The case is more than a bad deal; it highlights where South Korea’s approach to overseas resource development broke down. But drawing the conclusion that South Korea should scale back overseas resource investment misreads the lesson. The need is the opposite: to do more, but in a fundamentally different way. Minerals are not optional; they underpin industrial survival. Semiconductors, batteries, electric vehicles and defense industries all depend on minerals. Without copper, nickel, lithium and cobalt, production itself is not possible. The problem is not investing. It is how to invest. This case can be summed up in one line: There was willingness to invest, but no clear investment standards. A look at global resource development makes the contrast clearer. Japan has a well-known success story: the Escondida copper mine in Chile, backed by Japanese trading houses and the government, remains a steady profit-maker. Japan spent years in the early stage verifying geological data and cost structures, then reduced risk through long-term purchase contracts. The pace was slow, but the standards were clear. Japan’s approach to Australian iron ore followed a similar logic. It did not stop at buying stakes; it designed long-term supply chains linked to steelmakers, tying resource security to industrial strategy. The result was stable raw-material supply and returns. Japan has also had failures, including losses in some oil and gas projects in Indonesia after underestimating political risk. The key difference was the speed of cutting losses. When profitability collapsed, it chose withdrawal over additional investment, limiting damage. There were setbacks, but the system held. China’s model is different. China National Petroleum Corp. and Aluminum Corp. of China pursued aggressive resource acquisitions in Africa and South America. Some projects were maintained despite losses, with risk managed through a combination of diplomacy and financial support. China had the capacity and political leverage to absorb failures. South Korea also has successes. The Roy Hill iron ore project in Australia, involving POSCO, is a leading example. POSCO secured a stable production structure after its initial investment and has generated long-term returns, aided by a strategic approach tied to steel production rather than a simple equity stake. Another example is SK Innovation’s Peru LNG project. SK Innovation invested step by step from exploration to production, spreading risk and ultimately building a stable profit structure. In both cases, selection mattered more than speed. Failures, however, are familiar. Past overseas oil development and some mineral projects expanded losses after investing on optimistic early forecasts, then facing price declines and rising costs. The common thread was unclear investment standards and delayed decisions to withdraw. Boleo was not fundamentally different. Weak geological conditions, high production costs and local risks were present from the start. Investment proceeded anyway, and losses accumulated. The problem is often described as poor screening. That is true, but incomplete. In resource development, what happens after the investment can matter more than the entry point. Policy shifts by host governments, tighter environmental rules and swings in global prices are hard to predict. Resource development is therefore about screening and geopolitics at the same time. South Korea sits in the middle: it lacks China’s ability to push through risk and has not fully built Japan’s refined system. That makes standards more important than ever. First, projects must be classified. Not every project should be judged by the same yardstick. Strategic assets tied directly to supply chains, such as rare earths and other critical minerals, may warrant accepting a certain level of loss to secure access. More common metal projects should be approached on profitability. Without this distinction, every investment becomes ambiguous. Second, exit rules must be explicit. As Japan’s experience shows, acknowledging failure quickly is the way to limit losses. A structure is needed in which losses beyond a set threshold trigger an automatic review. Decisions should be made by system, not instinct. Third, the roles of the public and private sectors should be separated. Early-stage exploration has a high failure rate, making private participation difficult, so a public role is necessary. But if decisions remain vulnerable to politics and bureaucracy, the same problems will recur. The decision-making structure should change through outside expert review, independent investment committees and mandatory exit standards. Fourth, the approach to failure must change. Resource development is an industry with frequent failures. The issue is not failure itself, but unmanaged failure. A system that ignores foreseeable risks or withdraws only after losses balloon must be corrected. The core lesson is straightforward: Overseas resource investment should continue, but not in the current way. The priority is not increasing the size of investment, but establishing decision standards first. The case of turning 3 trillion won into 2,700 won is not only a record of loss; it is evidence of missing standards. Without resources, industry is shaken. But misguided investment also shakes industry. National strategy is to balance those risks. Resources are necessary. But more important than knowing where to invest is knowing when to stop. The success or failure of overseas resource development ultimately comes down not to willingness, but to the ability to screen and decide. 2026-05-01 08:39:19