Polarization deepens as two chip giants dominate KOSPI SEOUL, April 22 (AJP) -South Korea's main bourse is flying to new heights and exports remain resilient despite Gulf shocks, but the momentum is increasingly powered by a single engine — chips. Memory giants Samsung Electronics and SK hynix now account for about 67 percent, or 137.3 trillion won ($XX billion), of total first-quarter operating profits among South Korean companies, according to financial data provider FnGuide. That is more than double last year’s share, when the two firms contributed less than 30 percent of the total. Samsung Electronics alone posted more than 57 trillion won in operating profit for the first quarter, surpassing the combined total of all KOSPI-listed companies during the same period last year. SK hynix, a pure-play memory chipmaker, is also on track for outsized results, with its first-quarter operating profit expected to exceed 40 trillion won in its earnings report due Thursday — nearing its full-year earnings level. Their stellar performances are attributed to both companies securing strong positions in the semiconductor market while achieving sustained growth in high-value chips such as high-bandwidth memory (HBM), used in artificial intelligence (AI)-related infrastructure. The outlook for other major players, however, remains bleak. Hyundai Motor Company, despite steady sales, is expected to see its first-quarter operating profit decline by more than 1 trillion won year-on-year, partly due to a 15 percent reciprocal tariff in the North American market. LG Energy Solution is also projected to remain in the red following the termination of contracts with Ford Motor Company and Freudenberg Battery Power Systems. This imbalance has fueled a rally in the stock market. On Wednesday, the benchmark KOSPI closed at 6,417.93, up 0.46 percent, hitting an all-time high for the second consecutive day. However, the gains have been largely concentrated in the two tech giants. According to the Korea Exchange, as of Wednesday, the combined market capitalization of Samsung Electronics and SK hynix reached approximately 2,140 trillion won. This represents 41 percent of the total KOSPI market cap of 5,200 trillion won ($3.5 trillion). A year earlier, the two companies' combined market cap stood at 1,350 trillion won or around 30 percent of the total. The most significant risk factor is the surge in debt-leveraged trading. According to the Korea Financial Investment Association, the outstanding balance of margin loans reached 34.7 trillion won as of Tuesday, marking another all-time high. The figure has been on a steady upward trajectory since surpassing 30 trillion won on Jan. 29. In response to rising volatility, brokerages have raised margin requirements and banned new transactions in contracts for difference (CFDs) - derivative products that allow investors to settle price differences in cash without owning the underlying asset. Despite these measures, implementation for Samsung Electronics and SK hynix has been slower than for other stocks, raising questions about their effectiveness. Non-bank lending is also increasing. Card loan balances reached nearly 43 trillion won in the first quarter, another record high. Data submitted by the Financial Supervisory Service to the office of Lee Hun-seung of the People Power Party shows that new card loan issuance to high-credit borrowers - those with scores above 800 - exceeded 3 trillion won in the fourth quarter. High-credit borrowers are increasingly turning to high-interest card loans, which can carry rates of around 15 percent, to fund real estate and stock investments, the FSS said. The trend is driven by tighter mortgage lending at commercial banks and efforts to capitalize on the surging KOSPI. While household financial assets have grown significantly from 960 trillion won in 2024 to 1,430 trillion won last year, the KOSPI's volatility remains a concern, as a growing number of investors may struggle to repay their debts. When the KOSPI plunged more than 12 percent on March 4 following the blockade of the Strait of Hormuz, the ratio of forced liquidations to outstanding credit reached 6.5 percent - the highest level since the market shock during the early stages of the coronavirus pandemic in March 2020. 2026-04-22 17:34:19

WSJ: Trump Asked Aides Whether to Resume Strikes on Iran After Talks Collapse U.S. President Donald Trump asked aides whether the United States should consider resuming attacks on Iran after talks aimed at ending the war between the two countries fell apart, The Wall Street Journal reported. The newspaper, citing U.S. officials, said Trump on April 21 asked advisers whether to review the option of restarting airstrikes on Iran. The officials said Trump weighed the possibility but was cautious about restarting a war that lacks broad public support and could drag on. Inside the White House, optimism had been high that the talks could produce a written agreement with Iran, the report said. Air Force Two, the plane used by Vice President JD Vance, was said to be waiting to depart from Joint Base Andrews in Maryland. Pakistani intermediaries also told the U.S. side they expected the Iranian delegation to travel to Islamabad. But Iran shifted its position as a cease-fire deadline neared and did not enter negotiations, the Journal reported. Vance’s planned trip to Pakistan was paused in the early afternoon and later postponed indefinitely. Trump continued meetings at the White House with Vance, Middle East envoy Steve Witkoff and Jared Kushner to review response options, according to the report. Aides said Iran’s government was divided and that hard-liners were unwilling to accept U.S. demands. Some in the White House also questioned whether Iran could carry out any commitments made in talks. Trump and his team ultimately chose a middle course: keep pressure on Iran while leaving the door open to negotiations until Iran presents a specific proposal, the report said. The United States is expected to maintain existing pressure measures, including a maritime blockade, while watching for a possible return to talks. On Truth Social, Trump said the blockade would remain in place and that the cease-fire would be extended as long as negotiations continue. Iran’s U.N. ambassador, Amir-Saeid Iravani, said Iran could return to talks if the United States lifts the maritime blockade. Al Jazeera reported that Iravani told reporters the United States must stop what he called “cease-fire violations” before further negotiations. “As soon as they lift the blockade, the next negotiations will be held in Islamabad,” he said, adding, “Iran is prepared for any scenario.”* This article has been translated by AI. 2026-04-22 17:30:11

South Korea to Normalize Q2 Treasury Bond Issuance as Foreign Inflows Rise The government decided to return to normal issuance of Korean Treasury bonds and other public-sector bonds in the second quarter. The Finance and Economy Ministry said it held the second meeting of a consultative group of bond-issuing agencies on the 22nd, chaired by Hwang Sun-gwan, director general of the Treasury Bureau, to discuss second-quarter issuance plans. For Korean Treasury bonds, issuance for May and June will be set within the first-half target range of 55% to 60%. Issuance of major public-sector bonds other than Treasury bonds in the second quarter is expected to rise by about 6 trillion won from the original plan. The government and issuing agencies had previously agreed to scale back first-quarter issuance to stabilize markets ahead of inclusion in the World Government Bond Index, or WGBI. A review of first-quarter results showed Treasury bond issuance came in at 61.5 trillion won, the minimum level within the 27% to 30% target range, at 27.5%. For public-sector bonds excluding Treasury bonds, issuance was reduced by about 7 trillion won from the original plan. The government said it decided to normalize second-quarter issuance after judging that Treasury yields have stabilized on a downward trend despite uncertainty such as the Middle East war and inflation concerns, and that foreign investment inflows have been smooth since WGBI inclusion. Foreign investors’ net purchases of Treasury bonds totaled 8.5 trillion won on a trade-date basis from March 30 through April 21, and 6.4 trillion won on a settlement-date basis from April 1 through April 21. Given that most public-sector bonds are short-term issues with maturities of three years or less, the government said it plans to increase the share of medium- to long-term Treasury bonds with maturities of five years or more in the second quarter to minimize supply-demand pressure on the market. Hwang said, “Since April, the bond market has stabilized with the steady inflow of WGBI funds, but external uncertainty still exists, so monitoring market conditions and coordination among agencies are necessary.” He added, “If needed, we will hold meetings as necessary to consult and adjust issuance volumes and timing.”* This article has been translated by AI. 2026-04-22 17:22:22

Kim Han-jeong Camp Files Police Complaint Against Choi Hyeon-deok Over Alleged Fake Address Registration Kim Han-jeong, who has declared his bid for Namyangju mayor, said on the 22nd that he filed a complaint with police over allegations that rival preliminary candidate Choi Hyeon-deok registered a false address in connection with the June 3 local elections. In a media notice, Kim’s camp said it submitted the complaint on suspicion of violating the Public Official Election Act. The camp said Choi is registered at a one-room unit in Byeollae-myeon, Namyangju, describing it as about 6 pyeong in size and saying its layout makes typical family living difficult, raising questions about whether he actually lives there. The camp added that claims have circulated in the community and in some reports that Choi’s family lives in Goyang, and that verification is needed on where his day-to-day life was based. “Taken together, these circumstances require clear confirmation of whether the address change was merely formal for the purpose of running for office,” the camp said, calling for a thorough investigation. It said the timing of the address change, actual residence and the existence of a living base are key factors in determining a fake address registration and should be checked carefully through objective materials. The camp said fake address registration can significantly affect election fairness and voters’ judgment, adding, “This is not an attack targeting a specific person but an unavoidable step to protect public trust in election order.” It urged authorities to strictly determine the facts. 2026-04-22 17:21:18

Democratic Party, government and presidential office to form PM-led task force for balanced regional development The Democratic Party, the government and the presidential office said they will form a task force led by the Prime Minister’s Office to pursue balanced regional development and move into full implementation once personnel appointments are completed. Rep. Kim Young-bae, a member of the Democratic Party’s Special Committee on Balanced Growth, told reporters after a ruling party-government-presidential office policy meeting on the 22nd that the session broadly reviewed the Lee Jae-myung government’s strategy for balanced growth. “First, the Prime Minister’s Office’s task force for a major national land and spatial transformation has been formed, and the personnel process is nearly at the final stage,” Kim said. Kim said participants agreed that once vetting and appointments are finished, the prime minister-chaired task force and a pan-government consultative body will serve as the main pillars, with the Local Era Committee and the party’s special committee working together in a ruling party-government-presidential office framework to carry out balanced-growth policy tasks. Kim also outlined a timetable for follow-up talks. He said the three sides plan to hold another consultative meeting by the end of June, with the special committee and the presidential office meeting together, and then use those discussions to shape legislative and budget strategies to be addressed by the end of August. Kim said the meeting focused in particular on a special law for “mega special zones.” He described it as legislation that would consolidate various sandbox-based pilot projects and support their designation and operation at a broader regional level, including tax, fiscal and financial support systems, with provisions aimed at backing corporate activity and industrial ecosystems. He said the goal is to pursue legislation within the regular session of the National Assembly, with relevant ministries and standing committees moving quickly on deliberations. Kim added that participants also discussed other local-related campaign pledges as key bills, including legislation to establish an investment corporation for the southeastern region, a special law to create an Arctic shipping route committee, and a bill to establish a public medical school.* This article has been translated by AI. 2026-04-22 17:18:19

South Korea projects 2040 peak power demand at 131.8 GW, factoring in electrification of advanced industries The government projected South Korea’s 2040 target peak electricity demand at 131.8 gigawatts, reflecting expected growth from electrification and advanced industries. That is 2.5 GW higher than the target demand through 2038 in the 11th Basic Plan for Electricity Supply and Demand, despite only a two-year extension in the horizon. The Climate, Energy and Environment Ministry presented the outlook on Tuesday at a public forum in Seoul on demand projections for the 12th power supply-and-demand plan. The ministry said it separately forecast minimum demand during spring and fall shoulder seasons to improve year-round accuracy. On the demand-management side, it said it reviewed load-shifting resources to encourage optimal electricity use in response to renewable-energy variability. For 2040 electricity consumption, the ministry put baseline-scenario “base demand” at 780.8 terawatt-hours and “target demand” at 657.6 TWh. Under an upside scenario, it projected 819.6 TWh for base demand and 694.1 TWh for target demand. For annual peak demand in 2040, the baseline scenario projected 149.9 GW for base demand and 131.8 GW for target demand. Under the upside scenario, it projected 156.8 GW for base demand and 138.2 GW for target demand. The ministry said the forecast combines “modeled demand” with “additional demand” tied to electrification, including new investment in advanced industries, data centers, and the spread of electric vehicles and heat pumps. It said rising data-center demand linked to the development of artificial intelligence was reflected in the outlook. For 2040, it projected data-center electricity consumption at 26.5 TWh and peak demand at 4.0 GW. Compared with the 11th plan’s 2038 projection of 15.5 TWh and 4.4 GW, consumption rose while peak demand edged down. The outlook for advanced industries was also sharply revised. The ministry estimated 2040 electricity consumption at 27.4 to 29.3 TWh and peak demand at 3.7 to 4.0 GW. That compares with the 11th plan’s 2038 projection of 1.1 TWh and 1.4 GW. Still, some participants said the ministry should have prepared a downside scenario, such as slower economic growth or a case in which the 2035 nationally determined contribution, or NDC, is not met. At the forum, Yu Seung-hoon, a professor at Seoul National University of Science and Technology, said Japan’s 7th Strategic Energy Plan, finalized in February, included a scenario in which NDCs are not implemented. “If there is an upside scenario, there should also be a downside scenario as an emergency plan,” he said.* This article has been translated by AI. 2026-04-22 17:16:27

Japan’s Weak Yen May Face a Second Wave as Energy Costs Spur Real-Trade Selling With the Bank of Japan’s rate hike effectively pushed back to June, market participants are warning that Iran-related energy price swings could drive the yen’s weakness into a new phase. Analysts say yen selling led by corporate demand — rather than speculative money — is harder for policymakers to counter, raising the risk of a prolonged weak-yen cycle. Nikkei reported on April 22 that more investors are now talking about a “second wave” of yen weakness in the second half of this year. It said the yen has recently traded in a narrow band of 158 to 160 per dollar largely because hedge funds and other speculative players are making short-term trades while watching for possible Japanese government intervention, limiting day-to-day volatility. Nikkei said the bigger risk lies in what comes next. If oil prices that surged amid the Iran situation settle and crude imports normalize, demand for dollars to pay for energy imports could rise again, intensifying yen selling. It noted that military clashes have damaged parts of oil refining facilities in the Middle East and that tensions around the Strait of Hormuz persist, meaning a risk premium could remain embedded in shipping costs for some time. Takahide Kiuchi, an economist at Nomura Research Institute, said it could take several months to half a year for oil prices to stabilize. That shift could change the nature of the yen’s decline. Speculative yen selling is often followed by yen buying to lock in profits, but yen selling tied to real demand — such as import payments — is less likely to be reversed later. Nikkei said if real-demand selling expands, there may be few forces to pull the exchange rate back, increasing the odds of a long-lasting weak yen. Policy options are also limited. Authorities can more easily seek understanding from the United States and others for intervention against speculative moves, but it is difficult to suppress exchange-rate shifts driven by corporate activity. Koji Fukaya, head of Market Risk Advisory, said, “It is hard to predict where the Iran situation is headed, but a scenario in which the yen-dollar rate breaks above 160 yen is entirely possible.” Nikkei said real-demand selling could also deepen pressure through the trade balance. Many foreign-exchange market sources expect a large trade deficit this year, it reported. More than half projected a deficit of 5 trillion to 15 trillion yen (about 46 trillion to 139 trillion won), and not a few forecast it could reach 20 trillion yen. In 2022, when the trade deficit swelled to 20 trillion yen amid a surge in resource prices after Russia’s invasion of Ukraine, the yen weakened from the 115-per-dollar range early in the year to 150. Concerns about a prolonged weak yen also matter for South Korea. A cheaper yen can boost the price competitiveness of Japanese exporters, increasing pressure on South Korean firms in sectors where they compete directly in global markets, including semiconductors, automobiles and steel. It could also lift demand for travel to Japan while shifting some domestic spending overseas. South Korea, which relies heavily on energy and raw-material imports, is also directly exposed to higher global oil prices.* This article has been translated by AI. 2026-04-22 17:15:20

Prosecutors seek 15-year prison sentence for ex-interior minister in appeals case SEOUL, April 22 (AJP) - Prosecutors on Wednesday again sought a 15-year prison term for former Interior and Safety Minister Lee Sang-min in his appeals trial over allegations related to disgraced former President Yoon Suk Yeol's martial law debacle in December 2024. Lee was sentenced to seven years in prison in his first trial in February this year. During a hearing at the Seoul High Court, prosecutors said Lee played a key role in carrying out Yoon's botched declaration of martial law by instructing police and fire agencies to cut off power and water to major institutions and news outlets on Yoon's orders with the aim of "completely paralyzing" media critical of the abrupt overnight fiasco. "The case is tantamount to terrorism against democracy," they criticized, adding that insurrection or its attempt is a serious crime that would make heavy punishment unavoidable even if it is merely planned. They argued that the absence of casualties and the fact that the debacle failed should not be grounds for a reduced sentence, and called for strict punishment to prevent a recurrence. They also pointed to his uncooperative behavior in investigations and perjury during hearings, saying these should be considered in sentencing. Prosecutors also suspected that he was aware of Yoon's plan in advance, citing evidence that he had spoken with key officials such as former Prime Minister Han Duck-soo and former Defense Minister Kim Yong-hyun. The appellate court is expected to deliver a sentence sometime next month as it must be concluded within three months of the first trial verdict, meaning the ruling would be made before May 12. 2026-04-22 17:14:27

Panel urges overhaul of Korea broadcasting development fund to include platforms Calls are growing to overhaul South Korea’s Broadcasting and Communications Development Fund beyond temporary fee reductions, as media consumption shifts toward platform-based services. Speakers said the current system, built largely around traditional broadcasters, needs a redesign to remain sustainable. Lee Sang-geun, a non-standing member of the Broadcast Media and Communications Commission, said at an April 22 seminar at the National Assembly that “the fund can be addressed in the short term through reductions, but it is difficult for that to be a fundamental solution.” He added that a broader reset is needed, “including revisions to the Broadcasting Act.” The fund supports the development of the broadcasting and telecommunications industry and efforts to strengthen public interest programming. Under the Framework Act on the Development of Broadcasting and Communications, it is collected from terrestrial broadcasters, general programming channels and mobile carriers, among others, and is currently structured around legacy broadcasting operators such as cable TV system operators. Lee said the approach of placing the burden mainly on existing operators has clear limits as the overall market shrinks. He said platform operators that do not pay into the fund are expanding their influence, deepening imbalances across the system. That has fueled arguments for expanding the fund’s scope to include new media operators such as over-the-top streaming services. Lee said, however, that the current legal framework makes that difficult and that legal groundwork, including changes to the Broadcasting Act, would need to come first. The commission also signaled support for structural changes. Seong Jae-sik, the planning and coordination officer and head of the finance team in the innovation planning office, said collection rates have been adjusted by sector to reflect crises, but “the overall market has now reached a critical point,” making it time to reexamine the system broadly. As a key task, Seong pointed to integrating currently separate fund notices and unifying the collection framework. “Applying different standards even among similar operators raises fairness issues,” he said, adding that consolidation is needed to set consistent criteria. Still, changes to collection rates are unlikely to move quickly. Seong said that even if reforms are pursued within the year, time is tight. He said the commission plans first to commission research covering the overall collection system, including pay TV and terrestrial broadcasters and general programming program providers. Seong said a central issue is how to fill any funding gap if burdens are reduced. He said imposing the fund on platform operators such as OTT services and portals should be reviewed over the long term. He also said spending may need adjustment, but noted that fund projects are decided through consultations with fiscal authorities, making unilateral changes by the commission difficult. Any spending restructuring, he said, would need to be pursued step by step through interagency talks. Because interests are deeply intertwined, Seong said, reforms require sufficient deliberation. He said the commission will push mid- to long-term changes based on research and discussion. 2026-04-22 17:09:21

China’s ‘Streetlight Escape Challenge’ Sends Woman to Police for Rescue A woman trying a viral “streetlight escape challenge” in China became stuck around a streetlight pole and had to be rescued by police. Hong Kong’s South China Morning Post reported on April 22 that the woman, identified by her surname Song, lives in Jiangsu province in eastern China. She attempted the challenge while out for a walk after dinner, after seeing it online. The stunt involves sitting with a streetlight pole between the legs, crossing the legs around it, then trying to untangle and free oneself. While it can look easy on video, participants can end up tightly locked in place and unable to get out. Song initially tried it casually, but the more she struggled, the more firmly her legs caught on the pole. Unable to free herself, she called police. Officers who responded calmed her and guided her to adjust her posture, then helped her unwind her legs. She suffered only temporary numbness in her legs and was not seriously injured, the report said. Videos of successful attempts have circulated on mainland Chinese social media, with participants slowly rotating around the pole to find an angle to pull one leg free. Failures, however, have led to commotions involving passersby, family members, food delivery workers and, in some cases, police. Police involved in Song’s rescue warned that the challenge carries hidden safety risks. They said people without sufficient knee flexibility, or who cannot support their body weight, could suffer joint injuries. Prolonged pressure on leg blood vessels can also cause tingling and swelling and, in severe cases, damage to lower-limb tissue. “Just because it’s popular online doesn’t mean you should try it blindly,” police said, urging people to avoid actions that put themselves in danger. The incident sparked debate on Chinese social media. One user wrote that most viral challenges are simply meant to attract attention and questioned why people follow them without thinking. Others said they wanted to try it. Another user said the belief that one can do better than the people in videos appears to encourage such attempts. China has repeatedly seen waves of unusual online challenges. Past trends have included tying ankles with cable ties and trying to escape, climbing into deep buckets, and wrapping the body in multiple layers of winter blankets.* This article has been translated by AI. 2026-04-22 17:06:24