KDI: Rising International Oil Prices Could Increase Inflation by 1.6% Rising international oil prices, triggered by the conflict in the Middle East, could increase South Korea's consumer price inflation rate by as much as 1.6 percentage points this year, according to a report from a national research institute. The report also suggests that core inflation, which has been less affected by oil price fluctuations, may rise by 0.1 percentage points. The Korea Development Institute (KDI) released its report on May 11, analyzing the effects of recent increases in international oil prices on consumer prices. KDI forecasts that fluctuations in oil prices could raise the consumer price inflation rate by 1.0 to 1.6 percentage points starting in the second quarter of this year. If high oil prices persist, core inflation could face upward pressure through next year. Research indicates that a 10 percentage point increase in international oil prices (Dubai crude) leads to a 2.69 percentage point rise in domestic oil product prices. Typically, increases in Dubai crude do not affect core inflation. However, due to uncertainties in transportation, a 10 percentage point rise in Dubai crude could push core inflation up by 0.10 percentage points. This means that transportation uncertainties could trigger cost increases not only in oil products but also in industrial goods and services. While the initial impact of rising international oil prices on core inflation is smaller than on consumer prices, its persistence is expected to be greater. Nevertheless, some analysts believe that government measures, such as price ceilings on oil products, will prevent inflation from exceeding 3%. As of March, the price ceiling was estimated to lower the consumer price inflation rate by 0.8 percentage points, while recent reductions in fuel taxes are believed to have contributed to a 0.2 percentage point decrease. These high oil price countermeasures are also expected to partially alleviate the rise in core inflation. Ma Chang-seok, a KDI researcher, stated, "If we measure without considering the effects of the price ceiling on oil products and add in the impact of fuel tax reductions, inflation is unlikely to exceed 3%. However, without the price ceiling, a rate above 3% would be quite possible." The institute views the ongoing developments in the Middle East as uncertain, leading to significant uncertainty regarding future consumer price trends. It suggests that policies should be formulated considering the varying impacts of rising international oil prices on inflation. Ma emphasized, "While the rise in international oil prices may temporarily affect the prices of certain items, the degree of inflation and its ripple effects can vary depending on the core factors. Policies aimed at stabilizing prices must also prepare for the possibility that prolonged increases in international oil prices could destabilize expected inflation."* This article has been translated by AI. 2026-05-11 12:05:30

Employment Insurance Enrollment Rises by Nearly 200,000 for Four Consecutive Months The number of regular enrollees in employment insurance has increased by nearly 200,000 for four consecutive months, driven by growth in the service sector. However, the manufacturing and construction industries continue to see declines, and the employment situation for those under 29 remains challenging. According to the Ministry of Labor's "Labor Market Trends Based on April Employment Statistics" released on May 11, the total number of regular enrollees in employment insurance reached 15.807 million at the end of April, an increase of 269,000 (1.7%) compared to the same period last year. The growth in regular enrollees has consistently been in the high 200,000s since January (263,000). This increase is primarily attributed to a robust rise in the service sector, which saw an increase of 284,000 enrollees (2.6%) compared to a year ago. Notable growth was observed in health and welfare (117,000), accommodation and food services (54,000), business services (26,000), and professional, scientific, and technical services (23,000). In contrast, the manufacturing sector experienced a decline of 8,000 (-0.2%) enrollees, marking 11 consecutive months of decrease. While there were increases in sectors such as other transportation equipment, electronics and communications, food, and medical substances and pharmaceuticals, significant reductions were seen in metal processing, textiles, rubber and plastics, and electrical equipment. Regarding the recent decline in manufacturing enrollment due to the impact of the Middle East conflict, Cheon Gyeong-gi, head of the Ministry of Labor's Future Employment Analysis Division, stated, "We need to closely examine the decreases in the oil refining and chemical manufacturing sectors. However, given the ongoing trend of decline, we should monitor the situation a bit longer." The construction sector also saw a decrease of 8,800 enrollees, bringing the total to 746,000, marking 33 consecutive months of decline. However, the rate of decrease has slightly lessened recently due to a reduction in sluggish construction investment. Cheon noted, "New applications for unemployment benefits in the construction sector have been on a downward trend since the second half of last year." By age group, there were increases among those in their 30s (88,000), 50s (47,000), and those aged 60 and above (206,000), while there were declines among those under 29 (-64,000) and in their 40s (-7,000). The number of young enrollees has been decreasing for 44 consecutive months since September 2022. The number of new applicants for unemployment benefits was 100,000, down by 3,000 (-2.7%) compared to a year earlier, marking three consecutive months of decline. The total number of beneficiaries was 667,000, a decrease of 34,000 from the previous year, and the total payout was 1.1091 trillion won, down 4.1%. The job vacancy ratio, which indicates the number of job openings per job seeker, rose slightly to 0.45 from 0.43 a year ago. Cheon remarked, "There has been an upward trend in job openings for two consecutive months; however, considering the long-term decline, it is still difficult to view this as a recovery."* This article has been translated by AI. 2026-05-11 12:03:28

S-Oil swings to $837 million Q1 operating profit on crude price surge SEOUL, May 11 (AJP) - S-Oil returned to profit in the first quarter as a jump in crude prices triggered by the Middle East conflict delivered hefty inventory gains, more than offsetting headwinds from scheduled maintenance and a domestic petroleum price cap. According to regulatory filings released Monday, the Aramco-controlled refiner posted a consolidated operating profit of 1.23 trillion won ($835.7 million) for the January to March period, swinging from an operating loss of 21.5 billion won a year earlier. Net profit came in at 721 billion won, also reversing a year-ago loss. Revenue edged down 0.5 percent from a year earlier to 8.94 trillion won, as the hit from lower utilization during turnaround maintenance was largely cushioned by surging oil prices. More than half of the quarterly operating profit stemmed from inventory-related gains tied to the crude rally, the company said, with the so-called lagging effect — the timing gap between crude purchases and product sales — widening refining margins despite the drag from maintenance and Seoul's petroleum price ceiling. The refining division led the gains with an operating profit of 1.04 trillion won on revenue of 7.10 trillion won, as the blockade of the Strait of Hormuz disrupted global crude flows, trimmed regional refinery runs and lifted Asian crack spreads for gasoline and diesel. Petrochemicals eked out a 25.5 billion-won operating profit on revenue of 1.10 trillion won, while the lubricants unit booked 166.6 billion won in operating profit on revenue of 737 billion won, down sequentially as feedstock costs outran product prices. Despite the tighter regional supply backdrop, S-Oil said it has preserved stable crude procurement through long-term contracts with parent Saudi Aramco and shipping affiliate Bahri. "Although supply-demand conditions remain tight due to the Middle East war, we are maintaining stable crude supply through long-term purchase agreements with our parent company Aramco," said a company spokesperson. Looking ahead, S-Oil expects firm refining margins in the second quarter as supply disruptions outweigh demand concerns from high prices, while flagging widening uncertainty over petrochemical feedstocks and a recovery in lubricant spreads. The Shaheen Project, the company's flagship petrochemical complex, stood at 96.9 percent EPC progress as of end-April and remains on track for mechanical completion by the end of June, with commercial operations to be readied after trial runs through the end of the year. Shares of S-Oil traded at 111,600 won per stock at 11:43 a.m., 4.45 percent lower than the previous session. 2026-05-11 11:47:51

Jung Kyung-tae Announces Candidacy for National Assembly Vice Speaker Jung Kyung-tae, a member of the People Power Party, has declared his candidacy for the position of Vice Speaker of the National Assembly, describing himself as the only six-term lawmaker who has experienced both progressive and conservative politics in South Korea.At a press conference held on May 11 in the National Assembly's communication hall, Jung stated, "I will become a Vice Speaker who listens to the rational and sensible voices of the people, opening a new chapter of cooperation and checks in the 22nd National Assembly."He criticized the ruling party's unilateral legislative actions and autocratic management of the National Assembly, saying, "The dialogue and compromise that are essential to parliamentary democracy have faded away due to the ruling party's legislative rush. If the People Power Party fails to properly check the Democratic Party, it will lead to greater arrogance from them, and the consequences will return to the people's livelihoods, pushing South Korea into crisis."Jung emphasized that the upcoming Vice Speaker election will be a critical juncture for the People Power Party, determining whether it will signal a renewal or fade into history. He urged the party to step out boldly from behind a curtain of military rule.He added, "The Vice Speaker position allocated to the opposition is not merely an honorary role. It must serve as a frontline barrier against the unchecked power of the ruling party, correcting the imbalance in the political landscape. The standards for cooperation and checks must be solely based on the livelihoods of the people."Jung vowed to confront any legislative actions that disregard the people and to uphold the values of constitutional spirit and rule of law by preventing self-cancellation of charges against the president.He also expressed his commitment to establishing the presence of the People Power Party as the leading opposition party through strategic negotiations that transcend partisan lines and by actively negotiating with the ruling party on behalf of the smaller opposition party.Furthermore, he pledged to lead the realization of parliamentary democracy, stating, "We must correct the unilateral proceedings of plenary sessions, the autocratic operation of standing committees, and the issues surrounding the allocation of the chair of the Legislation and Judiciary Committee, which have undermined parliamentary democracy due to the majority party's abuses, and restore the traditions of cooperation and respect for the opposition in the National Assembly."The People Power Party will select its candidate for Vice Speaker at a general meeting on May 13. So far, lawmakers Cho Bae-sook and Park Deok-heum have also announced their candidacies.* This article has been translated by AI. 2026-05-11 11:45:23

Reform Party Launches Central Election Committee Amid Local Elections The Reform Party officially launched its Central Election Committee on May 11, gearing up for the June 3 local elections and the National Assembly by-elections. Lee Jun-seok, the party leader, criticized the exclusion of Jung Ji-han, the party's candidate for Busan mayor, from a local TV debate, urging the Democratic Party's candidate, Jeon Jae-soo, not to ignore this issue. The Reform Party's election committee held its inaugural meeting at the National Assembly, marking the start of its activities. During the meeting, Lee presented nomination certificates to candidates including Kim Seong-yeol, who is running in the Hanam Gap district, and Park Il-ha, the candidate for the Dongjak District mayor, who recently left the People Power Party to join the Reform Party. Lee also dressed the candidates in orange jackets as a symbol of their commitment to victory in the elections. In his opening remarks, Lee highlighted Jung's exclusion from the TV debate and his ongoing hunger strike, stating, "Jeon Jae-soo, the candidate from the Democratic Party, should not turn a blind eye to this. A 30-something challenger like Jeon should not leave Jung, who is of a similar age, outside the debate venue." He emphasized the importance of acknowledging Jung's situation. Lee urged Jeon to abandon his privileged stance and return to the mindset of a challenger, saying, "Today’s Jeon should reach out to the Jeon who was once ignored and left alone at that debate. This is a matter of respect for the citizens of Busan who supported Jung and a minimal duty to the debate where he once sat alone." He also criticized the joint investigation team of the police and prosecutors for indicting Jung's aides on charges of evidence destruction while dismissing allegations of Jung's involvement in receiving money from the Unification Church. Lee called the decision to exclude Jung from the debate "unacceptable," likening it to broadcasting a game with three players while only covering two.* This article has been translated by AI. 2026-05-11 11:43:41

President Lee Calls Donghak Peasant Revolution the First Step for Democracy in Korea President Lee Jae-myung stated on May 11 that the Donghak Peasant Revolution, which awakened the people to their role as the foundation and masters of the nation, was a significant first step for democracy in South Korea. Speaking at the 132nd anniversary ceremony of the Donghak Peasant Revolution held at the National Museum of Korea in Yongsan, President Lee, through a speech read by Minister of Culture, Sports and Tourism Choi Hwi-young, remarked, "The spirit of the Donghak Peasant Revolution, which resisted unjust power while dreaming of a world where everyone lives well, has become an unquenchable light in our hearts." He reflected, "The spirit that has continued through the independence movement, the April 19 Revolution, the May 18 Democratization Movement, and the 'Candlelight Revolution' and 'Light Revolution' is the source that has blossomed South Korea into a model democratic nation that the world pays attention to today." President Lee emphasized that the value of a government based on popular sovereignty is closely aligned with the ideal of a community where citizens share the fruits of growth and enjoy their rightful rights, as envisioned by the farmers in 1894. He pledged, "The government will do its utmost to create a warm community where the people are the true masters of the nation and can enjoy their legitimate rights and share the fruits of growth together." He expressed deep respect for the courage, loud cries, and noble sacrifices of those who participated in the Donghak Peasant Revolution, which planted the seeds of precious democracy in this land. President Lee added, "Together with the people, I will work to build a nation where no neighbor is left behind, where everyone enjoys fair opportunities, and where we achieve a more developed and mature democracy in a country that belongs to its citizens." * This article has been translated by AI. 2026-05-11 11:42:21

Controversy Erupts Over Democratic Party Candidate's Threatening Remarks Controversy is growing around Seo Bo-hwan, a candidate for the Jeonju city council in the Masan district, following allegations of abusive language and threats. Recently, the Daily Jeonbuk reported on a recording that includes Seo's profane and threatening remarks. Notably, one recording allegedly contains a statement directed at a local newspaper reporter, suggesting, "I will quietly bury you using Joseonjok at night." Other recordings reportedly feature coarse language and expressions that threaten others. In response, community members have criticized Seo's behavior as "inappropriate for a public office candidate." As the controversy escalated, calls emerged from local political circles and civic groups for a response from the Democratic Party. Criticism intensified after it was revealed that Seo had received a certificate of appreciation from the Jeonbuk Provincial Police shortly after the controversy arose. Some online communities have also revisited the case of former Seoul city councilor Kim Hyung-sik, who was affiliated with the Democratic Party and was sentenced to 25 years in prison by the Supreme Court in 2014 for his involvement in the contract killing of a wealthy individual. In reaction to the reports, internet users commented, "Asura was really a documentary," "He doesn't seem like a Korean," and "Was the drum barrel controversy real?"* This article has been translated by AI. 2026-05-11 11:38:26

Kakao Union Seeks Mediation Amid Heightened Labor Disputes Kakao, a leading platform company in South Korea, is facing its most significant labor dispute since its founding. The Kakao union recently filed for mediation with the Gyeonggi Regional Labor Relations Commission after negotiations over wages and collective agreements with management broke down. If mediation fails, the possibility of strikes and other forms of industrial action could arise. This application includes not only the main Kakao office but also unions from major subsidiaries such as Kakao Pay, Kakao Entertainment, and DK Tech, prompting the entire platform industry to closely monitor the situation.The primary issue at stake is the performance bonus and compensation system. The union claims that the company has repeatedly altered its bonus structure and is demanding a more stable and predictable compensation system. Industry insiders estimate that the union's demands could amount to 13-15% of the company's operating profit. There are interpretations suggesting that a recent agreement on performance bonuses between SK Hynix and its union may have influenced this situation. Kakao stated, "We have not reached a final agreement on the detailed compensation structure, but we will strive for an amicable resolution."However, this conflict should not be viewed merely as a wage negotiation issue. The Kakao situation reflects a structural clash occurring as the platform industry transitions from a growth phase to a maturity phase. In the past, platform companies attracted talent by offering rapid growth and high compensation under the banner of being 'innovative companies.' A horizontal organizational culture, autonomous work environments, stock options, and performance-based compensation systems became characteristic of the IT industry.But the landscape has changed. Amid global economic slowdowns and stagnation in the platform industry, cost control and profitability have become central management challenges. In fact, Kakao has been undergoing organizational efficiency measures, restructuring subsidiaries, and reorganizing its business in recent years. Platform companies are now prioritizing profitability and survival over 'infinite growth.' The problem is that the gap between workers' expectations and corporate realities is widening rapidly during this process.Labor disputes in the platform industry differ significantly from those in manufacturing. While past manufacturing labor conflicts centered on wages and working hours, the platform industry intertwines issues of performance compensation structures, organizational management styles, and the distribution of corporate growth benefits. Developers and IT personnel see themselves not merely as workers but as key contributors to corporate growth. Conversely, companies believe they must operate compensation systems flexibly based on market conditions and performance fluctuations. If this conflict continues, the labor relations landscape across the platform industry may enter a new phase.That said, it is crucial to avoid escalating labor disputes to extremes. The platform industry experiences market changes much more rapidly than manufacturing. Performance volatility is high, and global competitive pressures are intense. An overly rigid performance bonus formula or uniform compensation system could undermine a company's strategic flexibility. On the other hand, if companies unilaterally change compensation structures or fail to share management information adequately, internal trust will inevitably erode.The current conflict between Kakao's management and labor serves as a litmus test for how far the South Korean platform industry has grown and how it will find a balance between labor and management in the future. The platform industry is no longer an exceptional space. It is time to establish social standards on how to share the fruits of growth and harmonize corporate competitiveness with labor rights. This conflict should not end in extreme opposition but rather serve as an opportunity to create a new labor-management order in the platform industry. 2026-05-11 11:35:51

Hyundai Rotem partners with Korea Aerospace University to strengthen space business SEOUL, May 11 (AJP) - Hyundai Rotem has signed a memorandum of understanding with Korea Aerospace University to cooperate in the space industry, the company said Monday. The agreement, signed on Friday, is aimed at building an industry-academia cooperation platform in the space sector through joint research, networking and talent development. Under the MOU, the two sides will work together on joint research and commercialization of next-generation space technologies, establish a virtuous cycle of technology and academic information sharing, and foster future space professionals through field-based training programs. As part of efforts to strengthen joint research and commercialization capabilities, Hyundai Rotem and Korea Aerospace University will cooperate in planning and carrying out national research and development projects, while the university’s expert groups will support technical verification of Hyundai Rotem’s projects. The two sides also plan to jointly utilize research infrastructure. “We expect this partnership with Korea Aerospace University’s expert groups and research infrastructure to help strengthen our space technology capabilities,” a Hyundai Rotem official said. “We will put strong momentum behind our space business and build a virtuous cycle of shared growth with partners contributing to the development of Korea’s space industry.” 2026-05-11 11:35:07

Summer Delights: Premium Bingsu at Luxury Hotels It is officially bingsu season. As the midday sun grows hotter, the craving for refreshing and sweet relief intensifies. Premium bingsu offerings from luxury hotels are making their debut, ready to satisfy weary palates. Despite tight budgets, the allure of 'small luxury' remains strong among the 2030 generation and foreign tourists. Hotel bingsu has transcended mere dessert status, becoming a culinary experience that provides a delightful escape from everyday life during the summer. ◆ The Unrivaled Favorite: Apple Mango Bingsu, A Feast for the Senses Leading the hotel bingsu market is the undeniable star: Jeju apple mango bingsu. Its melt-in-your-mouth sweetness has made it a reliable favorite among customers. Despite its hefty price tag, hotels are elevating bingsu to an art form through unique presentations and collaborations. Lotte Hotel Seoul has partnered with the beauty brand Maison Margiela Fragrance to create a delicate crossover that embodies dessert in scent. Four Seasons Hotel Seoul has introduced a 'mango sphere' that bursts with sauce when cut, showcasing the art of molecular gastronomy. Sofitel Ambassador Seoul serves bingsu in a silver dome container, piquing curiosity. Grand InterContinental Seoul Parnas and Paradise Hotel & Resort focus on selecting the finest, sweetest fruits to enhance the flavor experience. ◆ Health and Refreshment in a Bowl: The Rise of Unique Ingredients Moving beyond just mango, the use of fresh, natural ingredients is gaining attention. In line with the 'healthy luxury' trend, menus that maximize the refreshing qualities of fruits are emerging. One of the most surprising innovations is the transformation of tomatoes. Grand InterContinental Seoul Parnas has launched 'jewel tomato bingsu,' featuring organic tomatoes presented in a traditional Korean mother-of-pearl jewelry box, capturing attention. Paradise Hotel has also adopted the traditional Sicilian dessert technique of granita, enhancing its 'tomato bingsu' with basil sorbet for added freshness. JW Marriott Hotel Seoul utilizes juicy pears from Naju, South Jeolla Province, creating 'cinnamon pear bingsu' with four different textures for a subtle yet luxurious sweetness. ◆ Beyond Dessert: The Aesthetic Experience of Sweet Comfort Once a loss leader to attract customers, bingsu has now become a symbol of summer creativity for hotels, achieving double-digit growth annually. A bowl of bingsu priced at over 100,000 won may seem like an extravagant indulgence to some, but it encompasses a luxurious lounge atmosphere, breathtaking views, and impeccable service. It is not just about eating fruit mixed with ice; it is about savoring a moment of sweet comfort that allows one to momentarily forget the hectic pace of life. As this summer is expected to be particularly long and hot, why not take a spoonful of carefully crafted bingsu and soothe your weary body and mind? Within that refreshing melt-in-your-mouth experience, a small oasis of relaxation may be waiting for you. 2026-05-11 11:33:43