Samsung, SK to retire $14 bn worth shares to steady KOSPI after war shock SEOUL, March 10 (AJP) -South Korea’s two most influential corporate names unveiled more than 21 trillion won ($14.3 billion) worth of share retirements on Tuesday, a sweeping shareholder-return move that could help stabilize the country’s stock market after the Middle East war abruptly halted its record rally. Samsung Electronics said it will retire roughly 87 million treasury shares in the first half of this year, equivalent to about 16 trillion won based on Tuesday’s closing price. SK Inc., the holding company of SK Group, on the same day announced it will cancel about 14.69 million shares — roughly 5.16 trillion won worth — representing nearly 20 percent of its outstanding shares. Combined, the buyback retirements exceed 21 trillion won, marking one of the largest shareholder-return actions ever undertaken by Korean corporations. The move comes as Korean equities attempt to recover from a sharp selloff triggered by the outbreak of war involving Iran in late February, which sent oil prices soaring and rattled markets heavily exposed to Middle Eastern energy supply routes. Shares of Samsung Electronics, the world’s largest memory chipmaker, have fallen 13 percent to 187,900 won since Feb. 27, just before hostilities erupted. SK Corp. declined 12.5 percent over the same period to 351,000 won, while SK hynix — the world’s second-largest memory producer — slid 11.6 percent from 1,061,000 won. SK owns 32.14 percent of SK Square which is the single largest shareholder of the chipmaking unit. The declines helped drag the KOSPI lower after months of record gains as the economy relies largely on fuel imports from the Middle East. Analysts say the massive share retirements could provide a counterweight to the market turbulence by shrinking share supply and signaling stronger capital discipline among Korea’s largest companies. “Large-scale treasury share cancellations by flagship companies such as Samsung Electronics and SK could support valuations and help restore investor confidence,” a Seoul-based strategist said. The announcements also align with broader corporate governance reforms introduced under President Lee Jae Myung, whose administration has pushed policies aimed at boosting shareholder returns and narrowing Korea’s longstanding “valuation discount” relative to global peers. Under the latest revision of Korea’s Commercial Act that took effect last week, companies must cancel newly acquired treasury shares within one year and existing holdings within 18 months, except for limited purposes such as employee compensation. Market watchers expect the policy shift — combined with the actions of market bellwethers like Samsung and SK — to accelerate share retirements across corporate Korea. With the country’s two largest memory chip ecosystems taking the lead, the buyback wave could become an early test of whether shareholder-friendly reforms can help cushion Korean equities against global shocks. 2026-03-10 20:11:01

South Korea Moves L-SAM Into Mass Production as Middle East Air Defense Demand Rises Demand for air defense networks is rising in the Middle East following the war involving the United States and Israel and Iran. After the midrange Cheongung-II was deployed in combat, South Korea has moved its long-range surface-to-air missile system, L-SAM — often described domestically as a “Korean-style THAAD” — into mass production. The rollout of new Korean air defense systems is expected to speed efforts to target the Middle East arms market. According to the defense industry on Monday, L-SAM has entered the mass-production phase. Designed to intercept ballistic missiles in the upper atmosphere, L-SAM can engage targets at an interception altitude of 40 to 60 kilometers (25 to 37 miles), a capability that has led to comparisons with the U.S. THAAD system. Along with Cheongung-II, which covers altitudes of 30 to 40 kilometers (19 to 25 miles) and below, L-SAM is considered a core component of South Korea’s missile defense architecture. Deployment is approaching. The Defense Acquisition Program Administration last year reviewed and approved the final mass-production plan for L-SAM. The total project cost is about 1.7302 trillion won, with the goal of fielding the system with South Korean forces starting next year. LIG Nex1, Hanwha Aerospace and Hanwha Systems are participating in production. LIG Nex1 is responsible for overall system integration, Hanwha Aerospace for the launcher, and Hanwha Systems for the multifunction radar. Interest is also building overseas. With Cheongung-II deployed in the United Arab Emirates and credited with proving its performance, Middle Eastern countries have shown growing interest in L-SAM, the report said. In Europe, Switzerland has recently expressed interest. Swiss online outlet Watson reported Monday that South Korea’s L-SAM, under development, could play an important role in defending Swiss airspace. South Korea is also pursuing follow-on systems. Development is underway for L-SAM II, an upgraded version of the system now entering mass production. Work has also begun on Cheongung-III (M-SAM III), which aims to significantly improve interception altitude, detection range and simultaneous engagement capability compared with Cheongung-II. In the securities industry, analysts forecast LIG Nex1’s consensus operating profit this year at 435.2 billion won, up 34.8% from a year earlier. Operating profit is also expected to rise sharply at Hanwha Aerospace (43.1%) and Hanwha Systems (183.9%). Jang Won-jun a professor in the Department of Advanced Defense Industry Studies at Jeonbuk National University, said many countries built air defenses focused on mid- and low-altitude threats, making interest in an upper-tier interceptor like L-SAM likely to grow. "The Middle East and Europe are facing urgent conditions, so discussions on adoption could move faster there than in Korea," he said.* This article has been translated by AI. 2026-03-10 18:09:12

Naphtha Surge Triggers Negative Margins for South Korea Petrochemical Makers in Rare Price Inversion Rising naphtha prices driven by Middle East geopolitical risks have pushed South Korea’s petrochemical industry into a “negative margin shock,” with feedstock costs overtaking product prices and losses mounting the more companies produce. The price inversion — naphtha above ethylene — is the first since the oil shocks of the 1970s. Industry officials said naphtha has climbed sharply since the Iran situation. Based on Japan’s import price on a C&F basis, a key benchmark for domestic pricing, naphtha rose from about $557 per ton in January to $785 as of March 9, a jump of about 41% in a little over two months. Ethylene, meanwhile, fell to $663.75 per ton in March from about $800 in September last year, a decline attributed to weaker demand amid a global economic slowdown. Profitability in petrochemicals largely depends on the gap between naphtha and ethylene prices. Ethylene is a basic building block for widely used products such as plastics, fibers and film. Companies refine naphtha derived from crude oil into ethylene for sale, and the industry says an ethylene spread of at least $250 is generally needed to turn a profit. Recently, however, supply concerns tied to the Iran war have lifted feedstock costs above product prices, creating a negative-margin structure. Companies say they are struggling to raise prices for ethylene and other products because demand remains weak and supply is excessive, even as naphtha costs surge. The squeeze is also hitting operating rates. Major naphtha cracking centers (NCCs) including those run by LG Chem, Daehan Oil Chemical and GS Caltex are known to be cutting runs. Some companies’ average operating rates have fallen into the 50% range, down from 80% to 90% just a few years ago. Companies say it is difficult to halt NCC operations outright because the ethylene process also produces other chemicals such as butadiene and propylene. They say they must keep plants running at a minimum level, even at a loss, to supply certain products. Concerns are also growing that management burdens will rise further as the government pushes an NCC restructuring policy. The government said it is closely monitoring developments in the Middle East and will respond flexibly. The Ministry of Trade, Industry and Energy said it has no immediate plan to convene a meeting of petrochemical company CEOs, but is checking conditions through frequent communication with the industry. A ministry official said the government is in daily contact with petrochemical companies to assess on-the-ground conditions and is weighing response steps while watching Middle East developments and feedstock price swings. Trade, Industry and Energy Minister Kim Jeong-gwan told reporters on March 8 that petrochemical companies affiliated with refiners have relatively more room, but firms with petrochemicals-centered structures such as Yeochun NCC could face a bigger impact. He said the government would soon prepare and announce measures related to naphtha supply and demand. 2026-03-10 18:06:43

Government, Creditors Press Petrochemical Firms for Ethylene Cuts by Late March South Korea’s petrochemical makers are facing an unprecedented squeeze as instability in the Middle East disrupts supplies of raw materials, but the government and major creditors are holding firm on cutting domestic ethylene output. The Ministry of Trade, Industry and Energy and creditor institutions led by the Korea Development Bank are telling companies that if they want government support to weather the downturn, they must produce a voluntary plan by the end of March to reduce output at naphtha cracking centers, or NCCs. The main focus is the Yeosu industrial complex, where competing interests have slowed progress, unlike the Daesan complex, which has prepared merger and reduction plans, and the Ulsan complex, which has more financial room after earlier voluntary cuts. Industry officials said March 10 that Hanwha Solutions, DL Chemical and Lotte Chemical, along with GS Caltex and LG Chem, are in talks to meet the government-creditor demand. The companies have broadly agreed to set up a jointly funded subsidiary to operate NCCs together, but are reported to differ over how much capacity to cut. Government and creditors are watching Hanwha Solutions, DL Chemical and Lotte Chemical most closely, expecting the biggest potential reduction if the three reach a deal. Annual ethylene capacity at Yeocheon NCC’s No. 1 and No. 2 plants — a joint venture of Hanwha Solutions and DL Chemical — and at Lotte Chemical’s Yeosu NC plant totals about 3.05 million tons, about 25% of South Korea’s overall ethylene output. A senior creditor official visited Yeocheon NCC late last year to discuss reductions with company executives. The three companies favor a “merge first, cut later” approach: establishing the joint subsidiary within the year and then finalizing reductions based on changes in global market conditions. Government and creditors, however, are said to be pushing “cut first, merge later,” using the prospect of financial and tax support to press for a reduction plan by the end of March before creating the joint unit. A key obstacle is that all three run downstream petrochemical businesses that rely on basic feedstocks supplied by the NCC operations, making it difficult to agree quickly on cuts. Yeocheon NCC’s No. 1 plant is known to mainly produce feedstocks for DL Chemical, while No. 2 largely supplies Hanwha Solutions. Some creditors are seen as favoring shutting No. 2 and having the three companies jointly source feedstocks from Lotte Chemical’s Yeosu NC plant, but it is unclear whether companies that have had stable supplies will accept that plan. Tensions between Hanwha Group and DL Group, deepened by last year’s debt-default scare, are also cited as complicating a broader compromise. Even if the companies agree on additional cuts, they still face likely resistance from workers and unions. Industry officials say that for every 300,000 tons of NCC output reduced, about 100 workers are believed to lose their jobs. With the implementation of a revised Trade Union and Labor Relations Adjustment Act — known as the “Yellow Envelope Act” — expanding protections for strikes, the companies could face the risk of a general strike if they move unilaterally on reductions. Still, industry officials said it will be difficult for the companies to reject government and creditor demands as their finances have deteriorated after accumulated losses, including at Yeocheon NCC. They said the government and creditors are pressing their case with offers of new funding support and conversion to perpetual bonds. “Variables such as the Iran war and differences among companies make it hard to reach a voluntary reduction agreement,” a petrochemical industry official said. “This is a time when flexible policy management is needed, such as extending the deadline set by the government.”* This article has been translated by AI. 2026-03-10 18:05:02

Yeocheon NCC Weighs Halting Butadiene Unit as Naphtha Supply Tightens Yeocheon NCC, which declared force majeure after disruptions in raw-material supplies linked to U.S. and Israeli strikes on Iran, may halt its butadiene (BD) production facilities at its Yeosu No. 2 plant, industry sources said. With the Strait of Hormuz blocked and Middle East naphtha supplies disrupted, the company is expected to suspend output first for products with weaker customer demand. The move could push already strained operating rates — which had fallen below 70% due to supply uncertainty — down into the 50% range, heightening concerns across the Yeosu industrial complex. Industry officials said Tuesday that Yeocheon NCC began cutting naphtha feedstock input last week to lower the operating rate at its BD2 plant. Some in the industry say the company could gradually reduce feedstock further and ultimately suspend the facility temporarily. The review reflects difficulties securing naphtha from Middle Eastern countries such as the United Arab Emirates amid the war involving Iran, the officials said. South Korean petrochemical companies typically source about half of their naphtha from domestic refiners and import the rest from the Middle East and elsewhere. Companies with vertically integrated refining and petrochemical operations can draw on crude inventories to better withstand supply disruptions from the Hormuz blockade, but firms focused solely on petrochemicals face immediate constraints on producing basic petrochemical feedstocks such as ethylene. Yeocheon NCC was established as a 50-50 venture between Hanwha Solutions and DL Chemical to refine basic feedstocks used to make petrochemical products including ethylene, aromatics and butadiene. It supplies most of its output to Hanwha Solutions and DL Chemical, while exporting some to Germany’s BASF and other customers. The force majeure notice was sent to BASF, and the disclosure is said to have leaked through foreign media reports. Petrochemical industry officials warn that naphtha shortages could lead companies at South Korea’s three major petrochemical complexes to suspend operations or sharply cut run rates, starting with Yeocheon NCC. If the war drags on, they said, companies already suffering prolonged losses from structural downturn conditions tied to oversupply from China and the Middle East could see sales and customer networks erode further. Yeocheon NCC is also under pressure to produce a voluntary cutback plan for its naphtha cracking center (NCC), as requested by the government and creditors, industry officials said. The Ministry of Trade, Industry and Energy and creditor groups led by the Korea Development Bank have asked petrochemical companies in the Yeosu complex — including Hanwha Solutions, DL Chemical, Lotte Chemical, GS Caltex and LG Chem — to submit voluntary reduction plans by no later than the end of March, the officials said. Lee Deok-hwan, an emeritus professor of chemistry at Sogang University, said diversifying crude oil and naphtha supply chains is difficult. “Because of U.N. sanctions, imports from Russia are impossible, and most Canadian supplies are already pre-purchased,” he said. “The crisis in the refining and petrochemical industries caused by the war involving Iran is only beginning, and the situation is very serious. Government authorities need to recognize that.” A Yeocheon NCC official said, “As of now, there are no plans to shut down the BD2 plant.” 2026-03-10 18:03:43

Tools to detect deepfakes and voting fraud showcased ahead of local elections SEOUL, March 10 (AJP) - A demonstration to detect artificial intelligence (AI)-generated deepfakes and prevent other election-related fraud was held at the government complex in central Seoul on Tuesday. It was part of efforts by the Ministry of the Interior and Safety to prevent any illegal activities in voting and other violations ahead of local elections slated for early June. The ministry said it has worked with the National Forensic Service since 2024 and can now detect deepfakes with 92 percent of accuracy, a significant improvement from the previous 76 percent. The ministry pledged to work closely with relevant agencies to protect citizens and crack down on false information and deepfakes. 2026-03-10 17:58:23

No booze, just brews: Morning rave in Seoul SEOUL, March 10 (AJP) -Music filled a beauty brand store in Bukchon, central Seoul, early in the morning as people gathered with coffee cups in hand, swaying to a DJ set to begin the day. The gathering followed the format of a “morning rave,” a lifestyle event gaining popularity overseas. Instead of alcohol and late-night partying, participants came for music, coffee and conversation. Around 200 people attended, moving between dance space, makeup experiences and personal color consultations. Inside the venue, the mood was relaxed and curious. Some danced freely near the DJ booth while others chatted, took photos or watched the scene unfold. Despite the early hour, the room stayed lively as the music continued through the morning. Despite the early hour, the room stayed lively as the music continued through the morning. The event reflects a growing “sober curious” trend among younger generations, particularly millennials and Gen Z. Coffee, music and community are beginning to replace the traditional nightlife centered on drinking, offering a different rhythm to start the day. 2026-03-10 17:57:00

Inbee Park Tells Korea’s National Team Golfers: Confidence Is Good, Arrogance Isn’t Korean golf star Inbee Park met with younger players on the national team and national reserve squad and offered practical advice, urging them not to become complacent. The Korea Golf Association said it held a call-up training program for the 2026 national team and reserve squad from March 7-8 at the Berlin Hall on the fourth floor of Seoul Olympic Parktel. Park, who serves as an International Golf Federation board member and executive committee member, attended. Park, a seven-time major champion with 21 LPGA Tour victories, also won the gold medal at the 2016 Rio de Janeiro Olympics. Reflecting on her career, Park told the players they should keep confidence in check. He said, “You can’t be arrogant. Up until I turned pro, I felt like I wouldn’t lose to anyone. But when I got to the pro stage, all the best players from around the world were there.” She added, “Confidence is good, but I thought, ‘I shouldn’t be arrogant.’ You may be the best here, but you may not be outside.” Park also stressed the importance of embracing setbacks. “You shouldn’t be afraid of failure. I hope you pour everything you can into it,” she said. “Challenge yourself until there’s nothing left you want to try, and learn through failure.” The KGA said the first day of training covered mindset and mental preparation, operating rules and the KGA ranking system, media training, sports human rights education, anti-doping education, golf rules and a session titled “Players who keep shining because they are happy.” On the second day, the program included golf training, a biomechanics approach to the golf swing, drug misuse and intake, self-directed injury care, and guidance on putter fitting and selection. The 2026 national team and reserve squad were selected through the KGA ranking system. The national team includes six men and six women, and the reserve squad includes 10 men and 10 women. The men’s national team is Kang Seung-gu (Namseong High School, 2nd year), Kim Min-su (Howon High School Affiliated Broadcast and Correspondence High School, 3rd year), Park Geon-ung (Korea National Sport University, 1st year), Son Jae-i (Dongnae High School Affiliated Broadcast and Correspondence High School, 1st year), Ahn Hae-cheon (Korea National Sport University, 2nd year) and Yoo Min-hyeok (Seogang High School, 3rd year). The women’s national team is Koo Min-ji (Korea National Sport University, 1st year), Kim Gyu-bin (Haksan Girls’ High School, 2nd year), Park Seo-jin (Seomun Girls’ High School, 3rd year), Yang Yun-seo (Incheon Girls’ High School Affiliated Broadcast and Correspondence High School, 3rd year), Oh Su-min (Shinseong High School, 3rd year) and Yoon Gyu-ri (Haksan Girls’ High School, 1st year). The season begins with the 4th Imsil Cheese Cup Amateur Golf Championship, to be held for four days from April 7-10 at Jeonju Shangri-La Country Club in Imsil County, North Jeolla Province.* This article has been translated by AI. 2026-03-10 17:52:41

Seoul may revive decades-old fuel price cap, but experts urge caution SEOUL, March 10 (AJP) - South Korea is considering reviving a rarely used cap on retail gasoline prices as policymakers brace for a potential third wave of global oil shocks if the Middle East conflict drags on, though economists warn the government should move cautiously given the risks of distorting market prices. President Lee Jae Myung on Tuesday instructed his cabinet to explore emergency measures to curb surging fuel costs, urging officials to move beyond “normal procedures and manuals” during crisis conditions and quickly prepare a workable price ceiling system. Finance Minister Koo Yun-cheol said the government aims to introduce a framework for a cap within the week. The authority for such a measure comes from the Petroleum and Petroleum Substitute Fuel Business Act, introduced during the oil shocks of the 1970s. The law allows the finance minister to impose price ceilings or floors on petroleum products if prices fluctuate severely and threaten economic stability or daily life. The provision, however, has not been used for nearly three decades since South Korea liberalized its fuel pricing system to enable market forces to determine retail prices. The debate over reviving the mechanism comes as oil prices swing sharply amid the Middle East conflict. Domestic gasoline prices briefly rose above 2,000 won per liter over the weekend, reflecting the volatility in global crude markets. Economists warn against rushing intervention Some economists say introducing a price cap too early could create unintended consequences. Kim Jin-young, a professor of economics at Korea University, argued it is premature to adopt strong interventionist policies while the trajectory of the conflict remains uncertain. “I believe there is a fairly high possibility that the war in Iran will not end soon,” Kim said. “If the conflict becomes prolonged, oil prices could rise even further. But since the war has only just begun, we should focus on conserving supply and managing demand rather than immediately introducing this system.” Kim warned that price ceilings often impose hidden costs. “A price ceiling introduces a different kind of price — not a monetary one,” he said. “During the oil crisis in the United States, government price controls led to long lines at gas stations. In effect, the system imposes a higher cost on those who value their time.” Others say a cap for temporary purpose could help prevent excessive price spikes and protect consumers during periods of extreme volatility. Im Tobin, a professor at Seoul National University’s Graduate School of Public Administration, said the policy could serve as a corrective tool if market prices overshoot. “When crude oil has already been imported and stored, raising retail prices immediately simply because war breaks out allows oil companies to earn excessive profits,” Im said. “In that sense, the policy can help correct market distortions.” He stressed that any price cap should be strictly temporary. “The key is to shorten the duration of this system,” he said. Chang Yenjae, an economics professor at Soongsil University, also said the measure could help cushion the impact of surging energy costs. “During periods of rapidly rising energy prices, a price ceiling can help protect the real purchasing power of low- and middle-income households and stabilize transportation costs,” Chang said. However, Chang emphasized that price regulation alone cannot address structural energy challenges. “It is essential to clearly define the temporary and conditional nature of the price ceiling,” he said. “Relying solely on price controls is not a fundamental solution to energy problems.” Instead, he suggested improving fuel distribution systems and expanding fiscal support for vulnerable households as potentially more effective tools to manage the inflationary ripple effects of higher energy prices. 2026-03-10 17:50:44

Korea spearheads Asia rebound as crude falls below $90 SEOUL, March 10 (AJP) -South Korean stocks posted the strongest advance in Asia on Tuesday, reversing course after leading the region’s losses a day earlier as oil prices retreated sharply from above $100 a barrel and eased fears of a prolonged energy shock from the Middle East conflict. Korea’s benchmark KOSPI closed up 5.35 percent at 5,532.6, recouping much of Monday’s nearly 6 percent drop triggered by the surge in crude prices. The rally gathered momentum after oil prices slid overnight to below $90 per barrel, reviving investor sentiment and triggering a buy-side sidecar shortly after the opening bell as the main index jumped more than 6 percent. Foreign and institutional investors drove the rebound in Seoul. Foreigners bought a net 1.1 trillion won ($749 million) worth of shares on the KOSPI, while institutions added 847 billion won. Individual investors locked in profits, selling a net 1.8 trillion won. Technology shares led the advance. Samsung Electronics surged 8.3 percent to 187,900 won, while SK hynix jumped 12.2 percent to 938,000 won. Automakers also gained, with Hyundai Motor rising 3.6 percent. The smaller KOSDAQ also climbed 3.21 percent to finish at 1,137.7. Foreign investors purchased 128 billion won worth of shares on the KOSDAQ, while institutions added 72 billion won. Retail investors were heavy sellers, offloading about 200 billion won. Japan’s Nikkei 225 rose 2.9 percent to close at 54,248.39, while the broader TOPIX gained 2.2 percent. Semiconductor equipment makers supported the rally, with Tokyo Electron advancing 2.9 percent and Advantest climbing 5.3 percent. Taiwan’s TAIEX added 2.1 percent to close at 32,771.9, tracking gains in global semiconductor stocks. Hong Kong’s Hang Seng Index climbed 1.9 percent to 25,888, while mainland China’s Shanghai Composite rose 0.6 percent. The rebound in regional markets came after U.S. President Donald Trump suggested the conflict with Iran could end soon, easing concerns over prolonged disruption to global energy supplies. “We are going to have a much safer world as soon as it ends, and it's going to finish pretty quickly,” Trump said during a speech at the Republican Members’ Issues Conference in Florida. Brent crude dropped about 8 percent to $90.25 per barrel, while U.S. benchmark West Texas Intermediate fell nearly 8 percent to $87.24. The Korean won also strengthened as easing oil prices improved investor sentiment, closing at 1,469.3 per dollar compared with 1,467.5 won the previous session. 2026-03-10 17:47:22