Spirit Airlines Shuts Down, Sparking Consumer Backlash and a Buyout Push Spirit Airlines, the U.S. ultra-low-cost carrier known for charging extra for nearly everything, abruptly announced it was shutting down on May 2 (local time), drawing mixed reactions from consumers. Some supporters have even launched a website to raise money in a public buyout effort. According to USA Today and other outlets, Spirit said it would end operations at 3 a.m. on May 2 and close. The airline had planned to operate more than 4,000 domestic flights through May 15, but all future flights were canceled. Most tickets were refunded the day the shutdown was announced, the newspaper reported. Passengers who bought tickets using vouchers or miles, however, must wait while bankruptcy proceedings continue. Spirit’s collapse had been widely anticipated in the industry. The airline sought bankruptcy protection twice, in 2024 and last year. Reuters reported that the Donald Trump administration recently held talks to provide Spirit with $500 million (about 739 billion won) in exchange for 90% of its shares, but the effort failed. A creditor-side official told Reuters, “The Trump administration tried hard to save Spirit, but you can’t bring a dead body back to life.” Spirit was founded in 1983 as Charter One Airlines, operating charter flights, and renamed itself Spirit in 1992 after introducing jet aircraft. Beginning in 2007, it shifted to an ultra-low-cost strategy, charging separately for services such as seat selection, baggage, onboard drinks and counter service. That model worked for years. Spirit posted annual profits through 2020, even as the travel industry was hit by COVID-19, and other budget carriers — including Frontier, Sun Country, Avelo and Allegiant — adopted similar approaches. Major U.S. airlines such as Delta and American have also introduced comparable tactics, including basic economy fares and fees for seat selection. After the pandemic, Spirit’s losses mounted. The airline ultimately said it could not withstand a surge in fuel prices tied to the Iran war. Spirit had built its recovery plan on jet fuel forecasts of about $2.24 a gallon this year and $2.14 next year, but prices jumped to $4.24 a gallon after the war began. Consumers have long criticized Spirit for frequent schedule changes and cancellations with little compensation, and for charging for nearly all add-ons. Online, bags are even marketed to fit Spirit’s allowed “personal item” size. One consumer told Fox News that while the ticket itself cost $75 (about 110,000 won), adding baggage and a seat brought the total to $300 (about 440,000 won). “Spirit is good only when you’re traveling with just a backpack and no luggage,” the consumer said. Korean online travel communities have echoed the complaints, with posts saying the airline “takes even your spirit” through fees and that “everything is paid except the staff’s smile.” The shutdown has also raised concerns about mass job losses and consumer harm. The U.S. airline industry is running hiring programs for Spirit employees and offering discounted tickets to customers holding canceled Spirit bookings. In Washington, blame has become a political issue. Transportation Secretary Sean Duffy criticized the Biden administration, saying then-Secretary Pete Buttigieg blocked a Spirit-JetBlue merger and contributed to the crisis. Buttigieg responded that Spirit went bankrupt after jet fuel prices doubled during Trump’s term because of the Iran war. A grassroots effort to buy the airline has also emerged. A site called “Spirit 2.0,” set up by internet users, is raising funds with a minimum contribution of $45 (about 66,000 won). The New York Post reported that 120,000 people have visited the site so far and that $88 million (about 130 billion won) has been pledged.* This article has been translated by AI. 2026-05-05 13:51:15

Hyundai Department Store’s Mokdong Branch Revamps Living Floor in Biggest Renovation Since 2002 Hyundai Department Store’s Mokdong branch has overhauled its living floor, targeting strong local demand for premium home goods. It is the store’s largest renovation since it opened in 2002. Hyundai Department Store said Tuesday it has reopened the living floor on the B1 level after a full renovation of about 500 pyeong (1,652 square meters), redesigning it as a curated space tailored to customers’ lifestyles. The most prominent addition is a sleep-focused experience zone called the “sleep fitting room.” Customers can lie down in a cozy, private room with dimmed lighting to try high-end mattresses from brands including Simmons and Tempur. The merchandise mix was also adjusted for shoppers seeking both premium products and practicality. The store strengthened its lineup of Nordic-style living brands, a trend that has taken hold in the interior market, adding brands including Fritz Hansen, &Tradition, Stay H, BD and Radof. The branch will also run pop-up stores aimed at consumers in their 30s and 40s, a key customer group. Participants include sink specialist Baekjo Sink, custom chair brand Size of, and lifestyle furniture brand Ceres Home, the company said. A Hyundai Department Store official said the company will continue to build “distinctive content and a premium shopping experience” to position the Mokdong branch as a leading living destination in western Seoul. Department stores have been accelerating renovations at major locations as they seek to offer experiences that differ from online shopping. Shinsegae Department Store’s Hanam branch recently renovated 10 young fashion brands and 18 children’s brands on the first floor, opening new stores including young fashion labels Rave and Duelring and children’s brand Apricot Studio, the first in the Hanam area. The branch reduced the number of brands while expanding individual store size and walkways by about 1.5 times to create a more comfortable shopping environment. Lotte Department Store’s Incheon branch completed a reorganization of its first-floor luxury section, reopening it on the first of this month with hands-on content.* This article has been translated by AI. 2026-05-05 13:47:59

U.S. to Start Reciprocal Tariff Refunds as Soon as May 12, Total Seen at $166 Billion U.S. tax refund procedures tied to the Supreme Court’s ruling invalidating reciprocal tariffs are expected to begin as soon as May 12 (local time), according to reports. Reuters reported on May 4 (local time), citing a statement from U.S. Customs and Border Protection, that the refund process had been set to start May 11 but was delayed by one day to May 12. Even after the process begins, it is expected to take 60 to 90 days for refunds to be deposited to importers. The move follows a Feb. 20 U.S. Supreme Court decision, by a 6-3 vote, striking down tariffs imposed by the Trump administration under the International Emergency Economic Powers Act, including reciprocal tariffs. The refund process is set to start about three months after the ruling. CBP is estimated to have collected about $166 billion (about 245 trillion won) in tariffs from 330,000 importers under IEEPA, and refunds are expected to be comparable. CBS, citing CBP data, reported that as of April 26 more than 11 million refund claims had been filed. The refunds will go to U.S. importers that brought goods in from overseas, not directly to American consumers. However, major U.S. logistics companies including FedEx and UPS said they plan to pass refunded amounts back to consumers. 2026-05-05 13:47:26

OpenAI Faces Rising Cost Pressures as AI Spending Surges and Rivals Gain Ground Even after big U.S. tech companies posted first-quarter earnings surprises, market attention shifted to privately held OpenAI. As a “capex shock” — capital spending rising far faster than revenue — ripples across the AI industry, some investors are even discussing bankruptcy scenarios for OpenAI. According to the IT industry on May 3, Evercore and Bank of America raised their forecast for total AI capital spending in 2027 to more than $1 trillion after big tech companies reported first-quarter results. While major U.S. tech companies posted revenue growth of 17% to 33%, their capex growth ran at more than twice the pace. In after-hours trading following earnings, shares of Meta and Microsoft fell sharply. The concern is that it remains unclear when the surge in spending will translate into profits, reinforcing fears of an AI bubble. After those earnings reports, attention focused on OpenAI. The company has signed capital spending commitments totaling $1.4 trillion for 2025 to 2032, including investments by partners such as Azure, AWS, Oracle and CoreWeave. Over the same period, its AI operating and training costs — computing spending — are estimated at $600 billion. Market analysts say OpenAI’s revenue growth is likely to lag that of big tech. Major tech companies can lean on steady income from advertising, cloud services and commerce to support AI investment, but OpenAI lacks that kind of cushion, increasing its risk. Sebastian Mallaby, an economist at the Council on Foreign Relations, wrote in a New York Times opinion piece that OpenAI’s annual losses are widening rapidly and that cumulative cash burn could reach $115 billion by 2029. If current trends continue, he warned, the company could face a liquidity crunch by mid-2027. The argument is that OpenAI’s computing infrastructure is expanding much faster than revenue, and cash could run out before that gap narrows. Similar concerns have been reported inside the company. The Wall Street Journal reported that Chief Financial Officer Sarah Friar formally raised with executives that actual revenue is not keeping pace with the scale of data center computing contracts already signed. Altman and Friar quickly issued a joint statement disputing the report, but the fallout spread beyond OpenAI. Oracle shares fell 7%, and CoreWeave and SoftBank also declined. Bloomberg Intelligence said, “OpenAI missing its revenue targets is a direct risk factor for Oracle’s financial targets.” The episode underscored how dependent the broader ecosystem has become on OpenAI, with even reports of internal friction moving publicly traded tech stocks. Shifts in competition are also adding to OpenAI’s financial pressure. Anthropic has rapidly absorbed enterprise demand since launching its coding agent “Claude Code,” and as of April 7 it had surpassed OpenAI in annualized revenue. Google’s Gemini is gaining share in the consumer market by linking to its search and Android ecosystem. As rivals push into a market OpenAI helped create, OpenAI faces a dilemma: spending more just to hold its position. Some observers say OpenAI has bought time by raising money. In March, OpenAI raised $122 billion from investors including Amazon, Nvidia and SoftBank, securing a valuation of $852 billion. That has led to assessments that near-term bankruptcy risk is limited. Still, if much of that funding has already been committed upfront through data center and computing contracts, the key question is whether revenue can catch up with the pace of expanding capital spending before the next funding round.* This article has been translated by AI. 2026-05-05 13:40:59

Big Tech Earnings Beat Expectations, but AI Bubble Fears Persist; OpenAI Faces Financial Scrutiny Global Big Tech companies posted strong first-quarter results that underscored the potential to make money from artificial intelligence, but concerns about an AI bubble have not eased. With massive capital spending far outpacing revenue growth, stock-market reactions were mixed, and financial worries surrounding OpenAI — a symbolic name in the AI industry — have intensified. According to the IT industry on May 3, four major Big Tech companies — Alphabet, Meta, Microsoft and Amazon — released their first-quarter results after the market close late last month. The numbers beat expectations. Alphabet reported revenue of $109.9 billion, up 22% from a year earlier and above the market estimate of $107.2 billion. Google Cloud revenue rose 63% to $20.0 billion. Microsoft posted revenue of $82.9 billion, up 18%, with Azure growth reaching 40%. Meta’s revenue climbed 33% to $56.3 billion. Amazon reported revenue of $181.5 billion, up 17%, while AWS revenue grew 28% to $37.6 billion, its fastest growth rate in 15 quarters. Even with the earnings surprise, some stocks fell after companies raised capital spending plans alongside their results. Meta lifted its annual capital expenditure guidance to $125 billion to $145 billion, sending its shares down more than 8% in after-hours trading. Microsoft’s shares slipped about 4% after it reported first-quarter capital spending of $34.9 billion, a 74% jump from a year earlier. Alphabet raised its annual capital spending guidance to $180 billion to $190 billion, and Amazon pledged AI infrastructure investment totaling $200 billion. Estimated AI capital spending this year by the five largest hyperscalers combined is expected to exceed $650 billion. The sharpest focus is on privately held OpenAI. Analysts have said it is losing share to Anthropic in the coding market and to Google’s Gemini in the broader consumer market. Reports of missing revenue targets and internal conflict have added to unease. In particular, OpenAI’s unusually high share of capital spending compared with rivals has emerged as a key variable as it approaches a public listing.* This article has been translated by AI. 2026-05-05 13:40:07

Aju News Corp. Chairman Kwak Young-gil Wins Korea University Alumni Award Kwak Young-gil, chairman of Aju News Corp., received Korea University’s “Proud Korea University Alumni Award” in recognition of raising the honor of his alma mater and contributing to social development. Korea University, led by President Kim Dong-won, presented the award to Kwak (English Language and Literature, class of ’74) during its 121st anniversary ceremony and anniversary events held May 5 morning at the Inchon Memorial Hall in Seongbuk-gu, Seoul. Also honored were Samyang International Chairman Heo Kwang-soo (Business, ’65) and Ace Bed CEO Ahn Sung-ho (Geology, ’87). The university said Kwak has “always looked at the world with a clear and upright eye” and devoted himself to delivering the truth, calling his work “a true guide” for society. It also cited his pioneering spirit, strong support for his alma mater and commitment to nurturing younger generations. In his remarks, Kwak said he learned not just language but a “humanities mindset” after entering the English department “without even knowing the difference between ‘camp’ and ‘English.’” He added, “For me, English literature was a ‘door to spirituality’ beyond language.” Kwak said that over the past five years he studied humanity’s classics and artificial intelligence and concluded that the essence of spirituality connects to the university’s motto of “freedom, justice and truth.” He said he reached the view that altruism — “public good first, private interest later” — is the door to spirituality. Calling spirituality a key driver in the AI era, Kwak said, “Ten years ago I thought about ‘human-centered AI,’ but now we must pursue ‘spirit-centered AI.’” He added, “If spirituality cannot govern AI, humans will inevitably be ruled by technology.” As a manager leading a global news media organization, Kwak said his company is using a multilingual news system to promote the global rise of “K-series,” including K-defense. He added, “If South Korea was once the ‘light of the East,’ now Korea University must become the ‘light of humanity’ in the AI era,” and said he hopes his efforts will help advance his alma mater. The event also honored K-Net Investment Partners CEO Kim Dae-young (Public Administration, ’81) and Eugene Investment & Securities CEO Yoo Chang-soo (Sociology, ’81) with the “Community Service and Development Merit Award.” 2026-05-05 13:39:14

Samsung Electronics board chair urges talks to resolve labor dispute Shin Je-yoon, chairman of Samsung Electronics' board, posted a public message to employees urging management and labor to resolve their dispute through dialogue. In a post on the company's internal bulletin board on the 5th, Shin said he was concerned about the situation and felt a strong sense of responsibility.  "Many people, including shareholders and customers, as well as the public, are deeply worried about the company's recent situation," he wrote. "As board chairman, I feel a heavy responsibility and I am sorry for causing concern." Shin warned that a worsening standoff could damage the company's overall competitiveness. "Both labor and management could lose their footing," he said, adding that the fallout could include weaker business competitiveness, loss of customer trust, losses for shareholders and investors, and "serious negative effects" on the national economy. He pointed to the semiconductor business as particularly vulnerable. "In semiconductors, a foundational national industry, timing and customer trust are key," Shin wrote. He said disruptions in development and production, or missed delivery deadlines, could undermine core competitiveness and lead customers to shift to rivals, eroding market dominance. Shin also warned of broader economic consequences if a strike leads to heavy losses and customer departures. If the company's value falls, he said, it would cause serious losses for shareholders, investors, employees and local communities. He added that exports could drop by "hundreds of billions of dollars" and tax revenue by "tens of trillions of won," and that a weaker currency could reduce GDP. Inside Samsung Electronics, tensions have continued over wages and the performance-based pay system, with some unions leaving open the possibility of labor action. The standoff has persisted as the sides have failed to narrow differences in negotiations. Shin called for cooperation and talks. "Now is the time for all employees to unite for sustainable growth amid relentless competition and to resolve issues through sincere dialogue," he wrote. He urged employees to work together so the current conflict can become a foundation for a more constructive labor-management relationship, adding that he would do his best to work with management to find a solution. The message is notable as a case of the board directly stating its position on the labor dispute, and it could influence the course of negotiations.* This article has been translated by AI. 2026-05-05 13:33:04

South Korea vows full response after fire on HMM NAMU cargo ship in Strait of Hormuz A blast and fire broke out on May 4 (local time) aboard the HMM NAMU, a cargo ship operated by a South Korean shipping company, while it was anchored in the Strait of Hormuz, prompting a government response. Maritime authorities said they are working to determine the cause and ensure the safety of the crew. The Ministry of Oceans and Fisheries said May 5 that it notified relevant agencies immediately after receiving the report and began an emergency situation review meeting chaired by the minister at about 10 p.m. Hwang Jong-woo instructed officials to “do their utmost to take necessary measures to protect the safety of our seafarers and vessels,” and ordered nearby South Korean ships to move to safer waters. Hwang chaired another situation review meeting at 9 a.m. May 5 to check developments. A ministry official said the government is in close contact with the shipping company and the vessel, and is working with related agencies, including the Foreign Ministry, to secure the safety of the ship and South Korean seafarers. As of May 5, a total of 160 South Korean seafarers were confirmed to be in the inner area of the Strait of Hormuz: 123 aboard South Korean vessels and 37 aboard foreign vessels. The ministry official said the government is communicating frequently with shipping companies to protect seafarers, adding that it will respect their wishes but will safely bring to South Korea those who choose to exercise their right to request disembarkation. 2026-05-05 13:27:13

Korea to Launch Public Zoo Safety Council After Wolf Escape The government will launch a consultative body to strengthen zoo safety management and improve animal welfare standards, following a recent wolf escape at Daejeon O-World that heightened calls for broader checks of zoo operations. The Ministry of Climate, Energy and Environment said it will hold the inaugural meeting of a nationwide council of public zoos on Tuesday at the Korea Public Institution Research Institute in Seoul. The council is intended to reinforce the leading role of public zoos as public concern grows over zoo safety after animal escape incidents. It will diagnose on-the-ground problems such as aging facilities, staffing shortages and weak safety systems, and discuss practical steps for improvement. The ministry also plans to review how public zoos are preparing for a shift to a permit-based system under the Act on the Management of Zoos and Aquariums. The system took effect in December 2023, but zoos already registered were granted a grace period through December 2028, allowing a phased transition. Through the council, the government plans to share difficulties reported by operators during implementation and develop support measures. Participants in the launch meeting will include Lee Chae-eun, director general for nature conservation at the ministry, along with officials from regional environment offices, the National Institute of Ecology, the Korea Association of Zoos and Aquariums, and representatives of public zoos nationwide. The ministry said it will use the council to build a standing cooperation framework among public zoos and jointly review implementation levels in key areas including facilities, staffing, safety management and animal welfare. It also said it will actively support the permit system so it can take root smoothly based on feedback from the field. Lee said the ministry will focus its policy efforts on encouraging the transition to the permit system while refining related standards to raise zoo safety and welfare levels. She added that the ministry will continue working with relevant agencies so public zoos can meet permit requirements in a substantive way. 2026-05-05 12:33:14

People Power Party Picks Park Min-sik for Busan Buk-gu Gap By-Election, Setting Three-Way Race The People Power Party’s nomination committee on May 5 confirmed Park Min-sik, described as a former minister of the Ministry of Patriots and Veterans Affairs, as its candidate in the June 3 parliamentary by-election in Busan’s Buk-gu Gap district. Park will face Ha Jeong-woo of the Democratic Party and independent candidate Han Dong-hoon. Park dismissed the possibility of unifying candidacies with Han as “zero.” After his nomination was finalized, Park held a news conference at the party’s headquarters in Yeongdeungpo-gu, Seoul, saying, “With the strength of Buk-gu alone, I will deliver victory for Buk-gu,” and adding that he was confident of winning “whether it’s a two-way race or a three-way race.” Park criticized what he called talk by people close to Han about unification or the party not fielding a candidate. “If you entered the race, you should stand tall and accept the residents’ judgment,” he said, adding, “Stop running ‘wishful thinking.’” He said the election was not simply about “one seat in the National Assembly,” but about developing Buk-gu and “retaking the Nakdong River front line,” arguing that political calculations such as unification or no nomination were neither fair nor consistent with the stated purpose. On a series of controversies involving Ha’s camp, including an issue referred to as “shaking off,” Park said he was “personally hurt” and viewed it as serious. He said it was not merely a mistake by a “political rookie,” but “an expression of elitism deeply rooted inside.” Asked about claims that his support lags behind rival candidates, Park said he would not be swayed by polls. He also said affiliations should not be presented ambiguously in surveys or media coverage, adding, “The People Power Party candidate is Park Min-sik, and Han is an independent,” and that candidates should campaign fairly with their ballot numbers. 2026-05-05 12:24:48