South Korea’s Fuel Price Cap Faces Strain as Refiners, Gas Stations Near Breaking Point As the war in the Middle East drags on and global crude inventories shrink, pressure is building on international oil prices, raising doubts that the government’s cap on petroleum product prices can be maintained.  Industry officials said Tuesday that since the cap took effect, refiners’ losses and gas stations’ weakening profitability have mounted. If oil prices rise further, the government’s fiscal burden and industry pushback are expected to intensify. According to the industry on Tuesday, both gas stations and refiners are struggling to secure supply and set prices under the current system. With supply prices and settlement rules unstable, uncertainty in the market is growing. Gas stations say volatile supply prices and thinner margins are making it harder to lock in volumes. A gas station industry official said, “With no way to know how the next price-cap bracket will be set, it feels like a gamble, so it’s hard to either increase or cut volumes.” Refiners also say the burden is rising because the government has set a ceiling on supply prices without clearly defining how losses will be compensated or what standards will apply. The industry estimates that since the cap began, losses at the country’s four major refiners have run to about 500 billion won a week and may have exceeded 3 trillion won in total, as price increases have not been fully reflected. The government and the industry remain far apart on how to calculate compensation. Refiners argue that because petroleum products are produced jointly from crude oil, it is effectively impossible to calculate costs for each product, and losses should be assessed based on actual market prices. The government, however, is sticking to settlements based on verified costs, citing concerns about excessive compensation, fiscal strain and market distortions. The industry also points to repeated gaps between market signals and policy decisions. In the second adjustment, factors pointed to increases of 260 won for gasoline and 480 won for diesel, but the actual increase was limited to 210 won. In the third price notice, gasoline was frozen despite upward pressure, while diesel rose 300 won. In the fourth, downward factors emerged but prices were again frozen. As a result, the suppressed increase factors have reached 125 won for gasoline and 628 won for diesel. Industry officials say that apart from any short-term inflation relief, prolonged controls could shrink supply and raise the risk of a sharp price jump later. They also warn that if international oil prices climb further, refiners’ losses and the government’s fiscal burden would rise together, making the cap difficult to sustain. Song Heon-jae, a professor of economics at the University of Seoul, said the cap “had some effect in the short term, but it will not be easy to keep it in place.” He added, “If enough crude does not come in, gas stations will not be able to get gasoline properly, and in extreme cases it would be hard to rule out sales only during certain hours or cars concentrating at some stations.”* This article has been translated by AI. 2026-05-07 05:04:36

Korean Industries Brace for Prolonged High Oil Prices as $150-a-Barrel Fears Grow The prospect of an extended Middle East war pushing global crude prices to around $150 a barrel is heightening anxiety across South Korean industry, with executives warning that an era of ultra-high oil prices could be difficult for government, public institutions and companies to withstand. While government policy has so far helped restrain some energy price increases, including electricity rates, analysts say preparations are needed in case the oil rally becomes unmanageable and damages domestic industry and exports.  Industry officials said Tuesday that global crude inventories released to limit price spikes after the war began are increasingly being depleted, fueling concerns that international oil prices could surge above $150 a barrel as early as late this month. Energy-intensive sectors such as semiconductors, autos and petrochemicals would face sharply higher costs.  Semiconductor manufacturing requires massive electricity to run 24-hour clean rooms and lithography equipment. Industry officials said annual power costs to operate a single chip plant run into the trillions of won. With multiple plants operating at once, even a modest rise in electricity rates can directly hit earnings.  Airlines are on high alert as fuel bills climb, leaving carriers in a position where more flying can mean bigger losses. Fuel accounts for more than 30% of total airline spending. Korean Air said a $1 increase in oil prices adds $30.5 million (about 45 billion won) in annual costs. Domestic fuel surcharges on air tickets moved in May to the highest level, stage 33, for the first time since the current system was introduced in 2016.  Korean Air said the one-way fuel surcharge on its Incheon-to-New York route jumped to 564,000 won in May from 76,500 won in February, rising more than sevenfold in three months and nearly doubling from the previous month. Asiana Airlines is also charging fuel surcharges of up to 476,200 won per one-way international ticket.  Automakers and defense-related manufacturers are also watching closely as higher energy costs threaten to raise production costs. While the impact has not been as immediate as in aviation, an ultra-high oil environment would likely increase industrial electricity rates and logistics costs. Automakers, already facing higher oil prices and weaker consumer sentiment, have complained that "there’s nothing left even if we sell."  Petrochemical companies are also bracing for the risk that the high-price trend worsens. After the war began, firms struggled to secure key inputs such as crude and naphtha, but they managed to defend results with expanded government support and improved margins. If oil prices surge again, those buffers could prove ineffective. With global oversupply, companies may find it difficult to pass a sudden rise in feedstock costs on to product prices, raising the risk of another profitability slump.  Calls are growing for the government and companies to step up efforts to stabilize energy supply chains. Some argue that until postwar supply shortages ease, authorities should use every available measure — including maintaining fuel tax cuts and releasing strategic stockpiles — to reduce corporate cost burdens. Cho Hong-jong, a professor of economics at Dankook University, said high oil prices are likely to persist for a considerable period even if the war ends, citing geopolitical risks around the Strait of Hormuz. He urged securing crude supplies in advance by mobilizing global supply networks and, if necessary, seeking cooperation with countries such as Russia to help stabilize energy prices. * This article has been translated by AI. 2026-05-07 05:03:59

Korean Air Weighs Cutting Captain Promotions by About 17% Amid First Officer Shortage Korean Air is moving to reduce the number of first officers promoted to captain, a step the airline says is aimed at smoother crew operations but one that has drawn growing pushback from pilots who are nearing eligibility. Some in the industry also see it as an effort to adjust cockpit staffing ahead of the planned year-end integration with Asiana Airlines. According to industry officials on Tuesday, Korean Air is reviewing a plan to cut annual captain promotions to 120 from 144, a reduction of about 17%. Under the current system, 12 first officers can be promoted each month; the plan would lower that to 10. The move is tied to a shortage of first officers, according to people familiar with the matter. Airlines typically schedule captains and first officers in equal numbers for flights, and as more first officers move up, gaps in the first-officer pool widen. The airline’s difficulty in securing new first officers has also influenced the decision, the officials said. One key variable has been a decline in the number of military pilots able to move to civilian airlines. For fixed-wing pilot officers who did not graduate from the Air Force Academy — including ROTC and officer-candidate programs — the mandatory service period for those commissioned after July 1, 2015, was extended to 13 years from 10. Starting in the second half of last year, their discharge dates began shifting to the second half of 2028 or later. Airlines say that has tightened the supply of military-experienced pilots this year. An industry official said, “I understand the number of first officers coming in with military experience this year has fallen to about one-third of the usual level.” With a major pipeline for new first officers constrained, Korean Air’s staffing burden has increased. Korean Air pilots have strongly objected to the plan. They say that even if they meet the requirements for promotion, fewer slots would keep them in first-officer roles longer and could worsen a promotion backlog. Asiana has not discussed cutting captain promotions, but adjustments are expected as an integrated airline takes shape. Some observers argue Korean Air is moving early to reorganize cockpit staffing ahead of the integration. They say aircraft and personnel redeployments will be unavoidable before the year-end launch of the combined carrier, and that managing the scale of captain promotions is intended to reduce operational strain after integration. Korean Air has recently been holding job-specific briefings on post-merger human resources integration. For pilots, a central issue is how seniority will be combined and whether that could delay captain upgrades. “Even as more pilots continue to meet the time requirements for captain promotion, the time spent as a first officer can only get longer,” an industry official said. “Combined with the seniority issue ahead of integration, internal dissatisfaction could grow further.”* This article has been translated by AI. 2026-05-07 05:03:00

HMM Begins Towing Fire-Damaged Bulk Carrier Namu; Dubai Arrival Possible as Early as May 7 HMM has begun towing operations for the bulk carrier Namu, which caught fire while anchored in the Strait of Hormuz. HMM said a tugboat left Dubai port in the United Arab Emirates at about 8:30 p.m. on May 6 to assist the vessel. Once the tug reaches the area, it will secure the Namu and begin towing it to Dubai port, where a repair shipyard is located. Based on the distance, the ship is expected to arrive as early as the night of May 7 or early May 8. HMM said it will conduct a detailed inspection after the vessel arrives safely at the shipyard, then move to determine the cause of the fire and begin full repairs. The fire broke out after an explosion at about 8:40 p.m. on May 4 (Korea time) on the port side of the engine room while the Namu was anchored inside the Strait of Hormuz, north of Sharjah in the UAE. The Panama-flagged ship is operated by HMM, South Korea’s largest shipping company. It has 24 crew members on board: six South Koreans and 18 foreign nationals. No injuries were reported. HMM currently has five vessels stuck inside the Persian Gulf: two crude oil and petroleum product carriers, two bulk carriers and one container ship. The Namu is a bulk carrier.* This article has been translated by AI. 2026-05-06 23:24:15

KOSPI Closes Above 7,300 as Chip Stocks Lead Rally; Government, Elections and Fund Updates Semiconductor exports jump 139% while non-chip exports rise 11% South Korea posted its largest-ever first-quarter exports, helped by an artificial intelligence boom and a recovery in the semiconductor cycle. But the surge also deepened concerns about overreliance on a narrow set of items, especially memory chips, raising questions about the stability of the export structure. The Ministry of Trade, Industry and Energy said Tuesday that first-quarter exports rose 37.8% from a year earlier to $219.9 billion, the highest for the period. The ministry cited expanded investment in AI servers and strong semiconductor conditions as factors boosting competitiveness. The concentration risk remains, officials said. First-quarter semiconductor exports rose 139% from a year earlier to $78.5 billion.* This article has been translated by AI. 2026-05-06 21:54:20

CMA CGM Ship Hit While Transiting Strait of Hormuz; Iran Suspected France’s CMA CGM, the world’s third-largest shipping company, said one of its vessels was attacked while transiting the Strait of Hormuz. According to Yonhap News Agency and Reuters, CMA CGM said in a statement Tuesday that its ship San Antonio was hit, injuring crew members and damaging the vessel. The company said the injured crew were evacuated and are receiving medical care. “We are closely monitoring the situation and are doing everything possible in response alongside our crew,” CMA CGM said. The attacker was not identified, but the ship was reported to have come under an Iranian missile strike. A day earlier, the naval command of Iran’s Revolutionary Guard warned on X that any vessel seeking to pass through the Strait of Hormuz must use routes designated by Iran, and said those that do not would face a military response. Separately, at about 8:40 p.m. on May 4 (Korea time), a fire broke out after an explosion on the port side of the engine room of the HMM Namu while it was anchored north of Sharjah in the United Arab Emirates, inside the Strait of Hormuz. * This article has been translated by AI. 2026-05-06 21:51:15

Lee Calls for Accountability in Review of Illegal Stream and Valley Facilities President Lee Jae-myung said a joint safety inspection by relevant agencies to verify follow-through on a renewed review of illegal occupation facilities along streams and valleys must be conducted thoroughly, warning that any omissions after repeated crackdowns would be a serious problem. Lee made the remarks Tuesday on X, formerly Twitter, while sharing a related post by the Ministry of the Interior and Safety. "We must conduct a thorough inspection and completely restore public trust in the officials in charge," Lee wrote. "If they failed to properly detect and crack down even after being given two chances, then as previously warned, we must strictly hold the responsible public officials accountable for dereliction of duty." Earlier, Lee raised the issue at a Cabinet meeting after Interior and Safety Minister Yoon Ho-jung reported that the number of illegal facilities along streams and valleys exceeded 33,000, calling it "a matter of trust in state administration." Lee said the government must not let the issue slide, warning that people would criticize it as another case of authorities looking the other way. He added that while 880 illegal valley business facilities had been cited when officials were asked to report them, the figure rose to 33,000 once a full effort began. Lee ordered inspectors to focus on which officials allowed the facilities to remain and, if necessary, to have cases investigated for dereliction of duty.* This article has been translated by AI. 2026-05-06 21:09:14

South Korea's Cho Hyun, Jordan foreign minister discuss Middle East reconstruction cooperation South Korean Foreign Minister Cho Hyun spoke by phone on Tuesday with Jordanian Foreign Minister Ayman Hussein al-Safadi at Jordan’s request, exchanging views on bilateral ties and recent developments in the Middle East, the Foreign Ministry said. Cho expressed condolences over damage suffered by Jordan amid the war in the Middle East and said he hoped peace and stability in the region would be restored soon, noting the impact of regional stability on global security and economic conditions, the ministry said. Al-Safadi thanked Cho for the message and asked for South Korea’s continued support and attention toward stability and peace in the Middle East. He also said he hoped the two countries would cooperate on regional reconstruction projects, the ministry said. The ministry said the two ministers agreed to stay in close communication on related issues. * This article has been translated by AI. 2026-05-06 20:36:13

Zelenskyy Vows ‘Same Response’ After Russian Strikes Ahead of Victory Day 러시아의 제2차 세계대전 승리기념일(5월 9일)을 앞두고 러시아와 우크라이나가 공방을 계속 이어가고 있다. 6일 연합뉴스와 AFP통신 등에 따르면 우크라이나 당국은 휴전 발효 시점인 키이우 시간 6일 0시 이후에도 러시아군이 자포리자의 기반 시설을 공격했다고 밝혔다. 이고르 클리멘코 내무부 장관은 이날 공격으로 28명이 사망하고 최소 120명이 다친 것으로 파악됐다고 언급했다. 러시아 국방부는 전술기, 공격용 무인기(드론), 미사일, 포병대 등을 동원해 우크라이나의 고정익 드론 조립공장, 연료 저장소, 우크라이나군 및 외인 용병 주둔지 등을 타격했다고 밝혔다. 앞서 지난 4일 러시아 국방부는 전승절을 맞아 8~9일 휴전하겠다는 계획을 발표했으나, 우크라이나는 러시아가 휴전 발효 이후에도 공격을 이어갔다고 주장했다. 볼로디미르 젤렌스키 우크라이나 대통령은 성명에서 "우크라이나는 러시아가 모스크바 열병식 기간 휴전을 촉구한 것을 고려해 우리도 같은 방식으로 대응할 것임을 분명히 밝힌 바 있다"며 "우리는 러시아가 휴전 체제를 위반했음을 확인하며 군과 정보기관의 저녁 보고를 바탕으로 향후 조치를 결정하겠다"고 말했다.* This article has been translated by AI. 2026-05-06 20:33:16

U.S., Iran Near One-Page MOU on Nuclear Enrichment Pause and Steps to End War The United States and Iran are said to be close to a one-page memorandum of understanding outlining positions on the nuclear issue as part of efforts to end the war. According to Yonhap News Agency and U.S. online outlet Axios on the 6th, the draft MOU contains 14 items setting basic principles for ending the war and for detailed nuclear talks. The White House is waiting for Iran’s response on key issues within 48 hours. While a final agreement has not been reached, the two sides are reported to have come to terms since the war began in February. The MOU includes a temporary moratorium on Iran’s nuclear enrichment; U.S. relief from sanctions on Iran and the partial release of frozen funds; a gradual easing of Iran’s restrictions on passage through the Strait of Hormuz; and a gradual easing of the U.S. maritime blockade of Iran. The talks are seen as gaining momentum after President Donald Trump abruptly suspended the “liberation project” in the Strait of Hormuz. Trump said on his social media platform Truth Social on the 5th that he would temporarily halt the project, citing “requests from Pakistan and other countries,” what he called “tremendous military achievements” during operations against Iran, and “big progress” toward a “complete and final agreement” with an Iranian delegation.* This article has been translated by AI. 2026-05-06 19:39:14