South Korea Seeks Central-Local Partnership to Reach 30 Million Foreign Visitors The Ministry of Culture, Sports and Tourism said it met with officials from all 17 provinces and major cities to discuss ways to overhaul inbound tourism, a follow-up to the National Tourism Strategy Council’s elevation to a presidential body. The ministry said it plans to strengthen cooperation between central and local governments, saying revitalizing regional tourism is essential to reaching an era of 30 million foreign visitors. The ministry said it held a meeting of tourism bureau directors from the 17 local governments on the 28th at the Government Complex Sejong, chaired by Kang Jeong-won, director general for tourism policy. The meeting was convened to discuss how to carry out the “inbound tourism transformation and regional tourism leap” measures drawn up at the 11th National Tourism Strategy Council meeting in February. The ministry said it was the first session aimed at strengthening a central-local communication channel since the council, the top decision-making body for tourism policy, was upgraded under revisions to the Tourism Promotion Act. ◆Local governments seen as key to targeting 30 million inbound visitors The ministry and local governments agreed that the decisive factor for the inbound tourism overhaul is a leading role by local governments. They said they will work to identify and develop tourism content tailored to each region in line with the government’s push to foster tourism as a national strategic industry. Officials focused on tasks including making regional airports hubs for inbound tourism, strengthening the lodging industry support system, setting directions for region-specific tourism zones, introducing a performance management system for tourism development projects, developing region-by-region tourism content such as identifying notable destinations in South Korea, and improving visitor readiness by stamping out price gouging. ◆Ministry hears local concerns, pledges “noticeable” tourism gains The ministry said it heard practical difficulties and pending issues local governments face in implementing policies, and that the feedback will be reflected in detailed policy steps going forward. Kang said, “The battleground for an era of 30 million inbound visitors is ultimately the regions, and local governments hold the key to success.” He added, “With the National Tourism Strategy Council elevated to a presidential body, the ministry will communicate more closely with local governments to deliver a tourism leap that both the public and foreign visitors can feel.” 2026-04-28 16:48:19

Kia Modernizes South Korea’s Military Trucks, Expands Exports Military trucks remain the South Korean military’s workhorse for moving troops and supplies. Many reservists remember riding in the troop carriers commonly known as “Yukgong” or “Dudonban.” As battlefield systems modernize, so do the trucks — now designed for combat use and equipped with features once unthinkable in the field, including navigation. Kia says the vehicles are also finding buyers abroad, including in Europe and the Middle East. ◆Military trucks as infantry transport During battalion-level and larger exercises, 2.5-ton K511 trucks — widely called Yukgong trucks — are a familiar sight filling parade grounds. Troops typically board assigned vehicles after orders are issued. About 10 to 20 soldiers ride in the back, holding their rifles close between their legs. Depending on the mission, they may ride in a “four-direction security” posture, aiming outward. Military trucks are central to infantry movement and logistics, carrying both personnel and the supplies needed for operations. K511 trucks assigned to rapid-response units carry platoon-level troops along with equipment such as ammunition. The trucks long used by troops carry little visible branding, but most are produced by Kia, which also supplies the military with vehicles including the Retona command vehicle, ambulances for medical evacuation and armored reconnaissance vehicles. Kia has produced standard vehicles for the South Korean military since being designated a defense contractor in 1973. After establishing a special-vehicle research center in 1985, it built a standard platform by producing models including the 2.5-ton Yukgong truck and 5-ton trucks. Kia’s special business division said deliveries of military special-purpose vehicles totaled 6,122 units in 2024 and 5,789 in 2025. In the first quarter of this year, deliveries rose to 1,129 units, up 36% from 830 a year earlier. Based on performance proven at home, the vehicles are exported to about 30 countries, including Poland. ◆From familiar trucks to next-generation vehicles Older military trucks were difficult to operate, with no power steering and drivers forced to muscle the wheel. Newer models have changed sharply, adding power steering, navigation and driver-assistance systems to improve operating conditions. The K511 Yukgong truck and the Retona are also being replaced over time. The shift began with the light tactical vehicle, the KLTV (K151). Mass-produced in 2017, the K151 was newly developed on Kia’s Mohave platform and is intended to replace command vehicles such as the Retona and reconnaissance vehicles over the long term. The K151 uses a 3-liter diesel engine rated at 225 horsepower and an eight-speed automatic transmission, allowing speeds up to 130 kph. In 2023, it secured a 400 billion won export contract with Poland, a deal cited as evidence of South Korea’s competitiveness in military vehicles. A next-generation medium standard vehicle, the KMTV, intended to replace the Yukgong truck over the long term, began deliveries to the South Korean military in the second half of last year. Developed on Hyundai Motor Co.’s Pavise truck, it includes navigation, front and rear cameras and an around-view monitor — features comparable to commercial trucks. With a 280-horsepower diesel engine and an eight-speed automatic transmission, it can operate on 60% grades and in water up to 1 meter deep. Kia is also pointing to electrification and unmanned systems as the next step. The company has recently showcased a hydrogen ATV concept vehicle, “Black Veil,” at defense exhibitions in South Korea and overseas. Using a hydrogen fuel cell, it produces less noise and heat and can travel farther than internal-combustion vehicles, Kia says. It has been assessed as suitable for situations requiring rapid movement in high-risk areas. A Kia official said the company is presenting a range of special-purpose vehicles applying its technology, “from medium trucks to pickups,” and added, “We will build customized special-mission vehicles the military needs and present a future vision for military mobility.”* This article has been translated by AI. 2026-04-28 16:45:45

Minsky moment looming for Korea's financial sector SEOUL, April 28 (AJP) — Loose liquidity binges tend to end in a Minsky moment — the payback for easy gains. For South Korea’s financial sector, that moment may be inching closer, as a domestic slowdown, supply-side inflation and accumulated leverage begin to converge. Delinquency rates are rising with unusual speed. The country’s five largest commercial banks reported an average delinquency rate of 0.4 percent for the first quarter of 2026, up from 0.34 percent in the previous quarter. As of April 7, the figure had already climbed to 0.46 percent — the highest level in about a decade, since the 2015 collapse of STX Group. The first cracks appeared in loans to small and medium-sized enterprises (SMEs). At Hana Bank, SME delinquency rose to 0.61 percent from 0.47 percent a quarter earlier, the highest since its 2015 relaunch. Woori Bank reported a similar jump to 0.61 percent, the highest since the creation of Woori Financial Group in 2019. Large corporates remain relatively insulated, though pockets of risk persist. KB Kookmin Bank stands out for its exposure to troubled real estate project financing. The deterioration is no longer just marginal — it is accumulating in size. Non-performing loans (NPLs) at four major banks, excluding NH, surged 11.6 percent in the first quarter to 5.77 trillion won ($3.92 billion), crossing the 5 trillion won mark for the first time in nearly eight years, since the fallout from the Hanjin Shipping bankruptcy. While industry insiders say most loans are unlikely to be written off, the worsening economic outlook is casting doubt on that view. "Internally, we acknowledge the growing risks and are working to diversify our exposure," said an official from one of the four major banks, speaking on condition of anonymity. Banks plan to secure maximum loan-loss provisions while tightening lending regulations for distressed borrowers. The average NPL coverage ratio fell to 153.8 percent from 172.0 percent at end-2025, even as banks posted robust earnings of nearly 4 trillion won in the first quarter, including a record 1.16 trillion won at Shinhan Bank. Households are showing similar fault lines. Total household debt, already above 1,850 trillion won, expanded by another 3.5 trillion won last month. Mortgage rates — tied to more than 1,000 trillion won of that debt — continue to rise. According to the Bank of Korea, the average rate on new household loans climbed to 4.34 percent in March, the highest in nearly two and a half years. More concerning is the shift in debt quality. High-interest card loans, typically exceeding 10 percent, have ballooned to a record 43 trillion won. Long-term delinquencies of more than six months reached 470 billion won, surpassing 1 percent of total credit — the highest level in 11 years. The macro backdrop offers little relief. Stronger-than-expected first-quarter growth of 1.7 percent has reinforced the central bank’s hawkish stance, keeping the possibility of a rate hike alive. Under Governor Shin Hyun-song, price stability remains the priority — even at the risk of further squeezing already vulnerable borrowers. “Higher rates are boosting bank earnings, but at the cost of rising systemic risk,” said Park Hye-jin, a researcher at Daishin Securities. “It is a paradox where profitability and instability rise together.” While Korean equities remain among the best performers this year, other asset classes are weakening. The won traded at 1,473.6 per dollar on Tuesday, down more than 2 percent from the start of the year. Bond yields have surged, with the three-year Treasury at 3.529 percent and the 10-year at 3.861 percent — both up more than 60 basis points year to date. The signals are not yet a crisis. But the pattern is familiar: leverage builds quietly, stress emerges at the edges, and buffers erode faster than expected. That is typically how a Minsky cycle turns. 2026-04-28 16:43:26

Korean Bar Association, LAWASIA sign MOU to support 2026 Seoul general meeting The Korean Bar Association and LAWASIA said April 28 they signed a memorandum of understanding to help ensure the successful staging of the 2026 LAWASIA Seoul general meeting. The signing ceremony was held April 27 in the main conference room of the Korean Bar Association building in Seoul’s Seocho District. Attendees included Korean Bar Association President Kim Jeong-uk, LAWASIA President Yap Teong Liang and other officials from both organizations. Under the agreement, the two sides will jointly organize and promote an international conference for legal professionals across the Asia-Pacific region, recruit speakers for each session together, and work to secure sponsors to support the event. The 39th LAWASIA Seoul general meeting is scheduled for Sept. 14, Monday, through Sept. 16, Wednesday, at The Plaza Seoul and the Koreana Hotel under the theme “Global New Order - Challenges and Perspectives.” Organizers said it will be the fourth time the LAWASIA general meeting is held in Seoul and will take place in the year marking LAWASIA’s 60th anniversary. Planned events include an opening ceremony and welcome reception, practice-area sessions, networking programs and a gala dinner at the Four Seasons Hotel. Kim said the Korean Bar Association will “do its best” to prepare the opening ceremony and key events to ensure the meeting is held successfully. He added that the association will work with LAWASIA so that many Korean lawyers can take part and cooperate with legal professionals from the Asia-Pacific region and around the world. The Korean Bar Association said it will use the MOU to further strengthen cooperation with LAWASIA and make thorough preparations so the 2026 Seoul meeting serves as a venue for exchange and collaboration among legal professionals in Korea and abroad. 2026-04-28 16:42:18

Netflix wins tax battle in Seoul to pay little despite massive revenue in Korea SEOUL, April 28 (AJP) - A South Korean court ruled in favor of Netflix, ordering tax authorities to refund most of the roughly 80 billion won ($58 million) it had imposed on the global streaming giant, in a decision that underscores the limits of taxing cross-border digital services. The Seoul Administrative Court sided with Netflix Services Korea in a lawsuit filed in November 2023 seeking to cancel 76.2 billion won of the total tax assessment following a probe into its income. At issue was whether payments made by the Korean unit to its Netherlands-based affiliate, Netflix International B.V., should be treated as royalty income — subject to domestic taxation — or business income, which is exempt under the South Korea–Netherlands tax treaty if the foreign entity lacks a permanent establishment in Korea. Tax authorities argued the payments were royalties tied to the use of intellectual property. Netflix maintained they were business income derived from services provided overseas. The court ruled that the payments were not compensation for copyrights but service fees related to streaming services, noting that key functions such as content storage and transmission were performed by the overseas entity. It found that the Korean unit mainly handled platform operations, marketing and user management, while operating under a structure in which it retained a fixed margin and remitted the bulk of revenue to its parent — a model consistent with a service arrangement rather than intellectual property licensing. The ruling comes as Netflix continues to expand its presence in Korea’s over-the-top (OTT) market. According to its disclosure last week, Netflix Services Korea posted revenue of 1.05 trillion won last year, up 17 percent from a year earlier, marking its highest level since launching in the country in 2016. Operating profit rose to 20.3 billion won. Netflix’s monthly active users reached 15.6 million in December, up 20 percent on year and nearly double that of second-ranked Coupang Play. Despite strong top-line growth, profitability remains limited. The company’s operating margin has hovered around 2 percent for several years, as more than 80 percent of its local revenue is paid to its headquarters under “membership purchase” costs. Last year, about 8.5 trillion won — roughly 81 percent of domestic revenue — was remitted overseas. As a result, Netflix paid 6.6 billion won in corporate tax in Korea, equivalent to 0.6 percent of revenue, below the 1.1 percent average for foreign firms, according to CEO Score. The tax authority has not yet indicated whether it will appeal the ruling. However, Netflix Korea said "Netflix complies with tax laws and regulations in all countries where it operates and will continue to invest in Korean content and its broader ecosystem while cooperating with local authorities, regardless of the court’s decision." 2026-04-28 16:39:12

Vance Questions Accuracy of Pentagon’s Iran War Briefings to Trump, The Atlantic Reports With U.S.-Iran talks to end the war stalled, Vice President JD Vance has questioned whether the Pentagon is accurately reporting the state of the war and U.S. weapons stockpiles to President Donald Trump, The Atlantic reported. Citing the magazine’s report dated April 27 (local time), Vance has raised concerns about the accuracy of war-related information coming from the Defense Department led by Defense Secretary Pete Hegseth. He has also directly brought up the availability of certain missile systems, according to the report. The Pentagon has publicly said U.S. weapons stockpiles are sufficient and that eight weeks of fighting inflicted significant damage on Iranian forces. People close to Vance, however, have suggested those assessments may not fully reflect conditions on the ground. Vance is said to have conveyed his concerns as personal views, seeking to limit internal friction rather than openly criticize the Pentagon. Still, some allies believe the department’s assessments have been presented too positively. The report also said Vance delivered ammunition-related concerns directly to Trump in a meeting attended by key national security officials. From the early stages of the war, Vance has been among the more cautious voices within the Trump administration, warning that if the conflict dragged on it could be “a disaster,” the report said. The concerns come as analysts point to shrinking U.S. inventories. The New York Times reported on April 23 that the war has rapidly reduced U.S. stocks of missiles and other precision-guided munitions, weakening readiness in Asia and Europe for potential competitors such as China and Russia. Citing U.S. administration and congressional officials, the Times said the U.S. military has used about 1,100 JASSM-ER long-range stealth cruise missiles since the start of Operation “Grand Fury,” leaving an estimated 1,500 remaining. The Center for Strategic and International Studies said in a report issued March 27, citing The Washington Post, that U.S. forces have used about 850 Tomahawk missiles, with remaining stocks estimated in the low 3,000s. Despite the large-scale missile strikes, assessments say Iran’s military threat remains. According to an internal U.S. intelligence assessment cited in the report, Iran still retains about two-thirds of its air power and key missile-launch capabilities, and has preserved much of its fleet of small fast boats that could be used to lay mines and disrupt maritime operations in the Strait of Hormuz. One source said those forces remain a central threat to resuming maritime trade.* This article has been translated by AI. 2026-04-28 16:36:18

South Korea Launches WAVE Strategy Council to Link Shipbuilding and Shipping South Korea’s oceans and industry ministries and private-sector partners on Monday launched a joint cooperation framework aimed at strengthening competitiveness by more closely linking the shipbuilding and shipping industries. The Ministry of Oceans and Fisheries and the Ministry of Trade, Industry and Energy held a launch ceremony in Seoul for the Shipbuilding-Shipping Mutual Growth Strategic Council. Attendees included the two ministers, officials from Korea Gas Corp., the Korea Offshore & Shipbuilding Association and the Korea Shipowners’ Association, and executives from major domestic shipbuilders and shipping companies, totaling about 100 people. The ministries said major competitors have been expanding domestic orders by tying their shipping and shipbuilding sectors together, while South Korea has lagged in coordination despite ranking second in global ship orders and fourth in shipping capacity. With geopolitical risks rising, including the war in the Middle East, they said it has become more important to build a maritime supply chain that connects ships built at home with transport by Korean-flagged vessels. Centered on the two industry associations and joined by government, industry and academia, the council announced its W.A.V.E. strategy. It calls for securing world-leading “super-gap” technologies; building an industrywide alliance across shipbuilding and shipping; expanding the Korean-flag fleet while ensuring work for domestic shipyards; and creating a shared innovation ecosystem that supports regional economies. Within the council, the industries agreed to quickly identify detailed tasks under the four pillars and draw up concrete execution plans by year’s end. The council will run standing expert task forces on issues including technology development, demonstrations, orders, finance and regulatory reform, and will link policy proposals to quarterly meetings. The government and industry also reaffirmed plans to build a “one-team” structure in which shipbuilding and shipping move under a single industrial strategy, including joint work on technology development, demonstrations and fleet expansion. The two ministries said they will pursue regulatory improvements, budget support, demonstration infrastructure and links to regional industrial bases. The ministries said they are jointly operating the Autonomous Ship M.AX Alliance and plan to push ahead in earnest this year with a 600 billion won project to develop fully autonomous, artificial intelligence-based ship technology, reflecting corporate demand. They also said they will support future growth areas such as eco-friendly ships powered by ammonia or electricity and the localization of liquefied natural gas cargo tanks, with the oceans ministry focusing on identifying demonstration demand and the industry ministry backing core technology development. The ministries said they will also discuss expanding cooperation to shipping and ports under the Korea-U.S. shipbuilding cooperation project known as MASGA. Oceans Minister Hwang Jong-woo said shipping and shipbuilding have developed as “key partners” supporting the national economy and import-export logistics. “The launch of this strategic council will be an important opportunity for the two industries to be reborn as a strong public-private ‘one team’ and further enhance global competitiveness,” he said, adding the ministry will strengthen cooperation with the industry ministry in areas including autonomous ship technology development and energy security. Industry Minister Kim Jeong-gwan said the move was significant because it activates an “execution-oriented” cooperation system that jointly designs and advances demand, technology, demonstrations and institutional improvements beyond the level of separate industries. “Based on the W.A.V.E. strategy, I hope shipbuilding and shipping will ride the coming wave of prosperity and leap forward together,” he said.* This article has been translated by AI. 2026-04-28 16:33:19

President Lee Jae-myung urges unity at Admiral Yi Sun-sin birthday ceremony "Just as Gen. Yi Sun-sin saved the nation from a national crisis, it is our mission to overcome today’s challenges together," President Lee Jae-myung said Monday, calling for national unity at a ceremony in Asan, South Chungcheong Province, marking the 481st birthday of the naval commander honored as Chungmugong. It was the first time an incumbent president attended the annual event since the late former President Kim Young-sam. Lee said the country faces headwinds comparable to the turbulent seas Yi confronted. He cited a rapidly shifting international order that has increased uncertainty, and said rising energy prices and inflation pressures tied to the war in the Middle East are affecting people’s lives. "To withstand the fierce winds blowing from outside, strong unity that does not waver from within is essential," Lee said. "No matter how great the crisis, if the people join forces as one, we can overcome it." He pointed to Yi’s famed victory with 13 ships against a Japanese fleet more than 10 times larger, saying it was possible because everyone — from the commander to soldiers and civilians — was united. Lee pledged that his "people-sovereignty government" would take Yi’s spirit as a guiding light and use national unity as the driving force to confront national challenges. Lee also vowed to turn the crisis into an opportunity for a new leap forward. He said his government would establish a system in which the gains from growth are shared broadly, build a fair society where privilege and rule-breaking are not tolerated, and restore social trust. He said the government would speed up the energy transition and concentrate its capabilities so South Korea can become a global leader in advanced technologies, including artificial intelligence. "Together with our great people, we will overcome today’s challenges and move forward steadily toward a country where everyone is happy," he said. Lee called Yi an enduring national hero who achieved victories rarely matched in naval warfare history. He said Yi prepared in advance of the Imjin War by building the turtle ship and conducting practical training. Lee said Yi’s key to repeated battlefield victories was a stern sense of duty and devotion to the people, captured in the phrase "live and you die; die and you live," meaning a willingness to face death to protect civilians. "That is why, even with scarce resources and amid despair, he united soldiers and the people and saved the country at a moment of extreme peril," Lee said, offering renewed respect and gratitude. * This article has been translated by AI. 2026-04-28 16:28:04

Daeryuk Ajou Signs MOU With Small Business Federation to Expand Legal Aid Daeryuk Ajou has partnered with the Korea Federation of Micro Enterprises to provide legal support for small business owners struggling with high prices and an economic slowdown. Daeryuk Ajou, led by managing partner Lee Gyu-cheol, said it signed a memorandum of understanding on the 28th with the federation, chaired by Song Chi-young, at the Small Business Digital Center in the Dohwa-dong area of Seoul’s Mapo District. Attending from Daeryuk Ajou were managing partner Kim Jin-dong and attorney Kim Seung-jin. The federation was represented by standing vice chairman Lee Wang-jae and team leaders Jeong Yun-ho and Kim Hyo-jin. Under the agreement, the federation will identify small business owners who are closing their businesses or who have suffered from unfair trade practices and request support from Daeryuk Ajou. The firm will provide legal advice and services aimed at securing relief for those affected. Daeryuk Ajou also said it will work with the federation and its member companies to help address legal issues that arise during business operations. Kim said he hopes the agreement will provide “practical help” to small business owners in legal blind spots. “Based on Daeryuk Ajou’s professional legal capabilities, we will do our best to create an environment where small business owners can focus on their livelihoods with peace of mind,” he said. Daeryuk Ajou said it was selected this year as an operator of a legal support program run by the Small Enterprise and Market Service. The firm said it is providing legal advice and debt restructuring assistance to small business owners preparing to close, and legal support for relief efforts for those harmed by unfair trade practices. Small business owners seeking legal advice and debt restructuring related to closures can apply through the Hope Return Package website (sbiz.or.kr/nhrp/main.do). Applications for relief support, including counseling and litigation assistance related to unfair trade practices, can be made through the Unfair Trade Damage Counseling Center website (sbiz.or.kr/unfair/main.do) or by phone. In-person consultations are available by appointment with the 담당 변호사 at Donghun Tower, 8th floor, 317 Teheran-ro, Gangnam District, Seoul.* This article has been translated by AI. 2026-04-28 16:24:07

Korea to List 2x Leveraged ETFs Tied to Samsung Electronics, SK Hynix; Hong Kong Funds May Return South Korea is set to list 2x leveraged exchange-traded funds next month tied to Samsung Electronics and SK Hynix, raising expectations that some retail money that moved to Hong Kong for similar products could shift back to the domestic market. According to the Korea Securities Depository, as of April 24 the “CSOP SK Hynix Daily 2X Leveraged ETF (XL2CSOPHYNIX)” ranked seventh and the “CSOP Samsung Electronics Daily 2X Leveraged ETF (XL2CSOPSMSN)” ranked 10th among Hong Kong stocks held by South Korean investors. The custody amounts were $104.78 million and $74.11 million, respectively — nearly 264 billion won in total. Both ranking and holdings rose from the end of March, when the two products stood at 10th ($54.95 million) and 11th ($43.45 million). With upbeat expectations for the semiconductor cycle, demand from South Korean investors had continued to flow into Hong Kong, where single-stock 2x leveraged ETFs have been available. The underlying shares also climbed sharply from April 1 to 24: Samsung Electronics rose 31.28% and SK Hynix gained 51.43%. Over the same period, South Korean investors’ Hong Kong trading was concentrated in the two ETFs. For the SK Hynix 2x ETF, investors bought $40.27 million and sold $48.96 million. For the Samsung Electronics 2x ETF, they bought $23.75 million and sold $19.36 million. With the domestic launch of single-stock leveraged ETFs approaching on May 22, the financial investment industry is increasingly discussing whether demand that headed to Hong Kong could return. Industry officials point to convenience and taxes. Hong Kong-listed ETFs require converting won into Hong Kong dollars and factoring in foreign-exchange gains or losses, while domestic ETFs can be traded without currency conversion. Tax treatment also differs: capital gains on overseas-listed ETFs are subject to capital gains tax, while trading gains on domestically listed ETFs are effectively not taxed. Another factor is the so-called domestic market return account (RIA). Investors who bought the Hong Kong-listed Samsung Electronics or SK Hynix 2x ETFs before Dec. 23 last year can sell them by the end of May and reinvest in domestic ETFs to receive a 100% deduction benefit. At the time, South Korean investors’ custody amount in those products was about $49.61 million, or roughly 73.2 billion won. “Because there were no single-stock leveraged products in Korea, a large share of demand moved to the Hong Kong market,” a financial investment industry official said. “After domestic listing, the lack of currency-conversion burden and the tax advantages could lead to a shift of funds into domestic ETFs, especially among individual investors.”* This article has been translated by AI. 2026-04-28 16:22:53