Middle East Conflict Leads to $4.2 Billion Loss in Foreign Stock Investments In the first quarter, South Korea's major institutional investors saw their foreign securities investments decrease by more than $4.2 billion. According to a report released by the Bank of Korea on June 1, the balance of foreign securities investments by institutional investors stood at $503.33 billion as of the end of March, down $4.26 billion from the previous quarter. This decline was attributed to stock market adjustments due to the ongoing conflict in the Middle East and rising U.S. Treasury yields, which resulted in greater valuation losses than net investments in foreign stocks and bonds. During the first quarter, the global financial market experienced a sharp decline in risk appetite due to the Middle East conflict. Notably, the rise in U.S. Treasury yields contributed to falling bond prices and weakened emerging market currencies, negatively impacting the value of domestic institutional investors' overseas portfolios. By investment type, asset management companies reported a decrease of $4.75 billion, securities firms saw a drop of $400 million, and insurance companies lost $40 million, while foreign exchange banks increased their balances by $930 million. In terms of products, foreign stocks saw the largest decline, with a balance reduction of $4.01 billion. Foreign bonds decreased by $450 million. Conversely, investments in Korean Paper (KP), foreign currency-denominated securities issued abroad, increased by $200 million, primarily driven by foreign exchange banks. Although foreign stocks experienced an influx of bargain-buying due to price adjustments from the Middle East conflict, the valuation losses were more significant. In the first quarter, the S&P 500 index fell by 4.6%.* This article has been translated by AI. 2026-06-01 12:03:00

Surge in Abalone and Flounder Exports Boosts Fisheries in Japan "We aim to enhance the income of Korean fishermen by expanding the export of seafood products. Since our opening last March, we have achieved export results totaling 5.5 billion won," said Kim Dong-hee, head of the Korea Fisheries Association's Osaka office, during a meeting in Osaka on May 28. The Osaka office represents more than just a foreign branch; it serves as a 'local direct distribution platform.' Moving away from a reliance on private exporters, the association has established its own distribution network in Japan. Osaka is a major hub for seafood consumption in Japan, conveniently located near large cities like Kyoto, Kobe, and Nara, making it advantageous for securing significant consumer markets. The association has chosen Osaka as its first overseas office to develop a supply base for K-seafood in western Japan. Since its opening on March 18 of last year, the Osaka office has focused on exporting live abalone and flounder. Previously, Korean seafood had to go through intermediaries or local wholesalers before reaching the market. Now, the association manages the entire process—from production to export to local distribution—ensuring the freshness of the seafood. The office is collaborating with York Benimaru, a prominent Japanese distribution market, to supply seafood products and has confirmed exports of frozen abalone and salt. Additionally, efforts are underway to develop new products tailored to buyer demands, such as flower crabs. From March to December last year, the office exported 3.8 billion won (180 tons) of live abalone and 1.3 billion won (60 tons) of live flounder, totaling 5.5 billion won in exports, while also diversifying its key products to include frozen abalone and live octopus. These achievements were not easily attained. The Japanese market has high barriers for new entrants due to its established relationships. Kim shared, "I approached buyers as if I were hitting the ground running, making calls and visits to find potential partners." The sales efforts involved sending emails to import buyers and arranging meetings with those who responded. Kim noted, "Once we meet, I feel confident. When I introduce our organization as similar to the National Federation of Fisheries Cooperatives in Japan, trust begins to build with buyers. Once mutual understanding is established, we can start transactions." There is a growing interest among Japanese consumers in Korean abalone. Kim stated, "Farmed abalone from Korea is regarded as top quality and is a must-have in high-end restaurants for dishes like teppanyaki and butter-grilled abalone." The Korea Fisheries Association is also accelerating the process of incorporating the Osaka office as a local entity. The association believes that formal incorporation will further contribute to diversifying exports. Kim explained, "Once we are incorporated, we hope to expand our network to include small-scale businesses that want to import Korean seafood but are currently unable due to their size. This will enhance the diversification of Korean seafood exports. We are also considering storage facilities like tanks." However, the increasing competition in the abalone market poses a challenge. In 2017, Japan imported between 1,600 and 1,700 tons of abalone, but this figure surged to 2,500 tons last year. This influx has led to a decline in abalone prices. Kim remarked, "Intense internal competition within the Korean aquaculture industry has resulted in overproduction, which is driving down export prices. I understand that some regions are even beginning to reduce their aquaculture operations as a means of addressing this issue." 2026-06-01 12:03:00

Kobe Port Combines Logistics and Entertainment, Showcasing the Future of Harbors Kobe Port, located in Hyogo Prefecture, Japan, is challenging the perception of harbors as merely functional spaces for container and cargo ships. On May 29, the port was revealed as a waterfront area inviting visitors to explore. Opened in 1868, Kobe Port is one of Japan's three major trading ports, handling an average of over 2.1 million TEUs annually. The modern port began to take shape in the early 1900s, with significant developments in the new and central wharves by 1940. Kensuke Kitagawa, an official from the Kobe Port Authority, explained, "From 1965 to 2005, we expanded the port's logistics capabilities by reclaiming land from the sea." The period from the 1960s to the 1980s was marked by a focus on containerization in port logistics. Until 1963, smaller vessels were used for transportation, but the introduction of container ships transformed maritime logistics. Consequently, the existing port areas began to transition into urban spaces. Since 1970, the development of Meriken Park Harborland has added entertainment features, attracting tourists. The redevelopment of a former container terminal into Harborland has integrated dining, shopping, and recreational activities in one location. However, the port's redevelopment faced a setback due to the Great Hanshin-Awaji Earthquake in 1995. Although port facilities were restored within two years, the recovery process incurred significant debt, straining Kobe's finances and delaying redevelopment projects. The repayment of this debt was completed in 2011, allowing redevelopment efforts to accelerate. Kitagawa noted, "You are currently at the G-Lion Hours building, which houses a museum, aquarium, food court, and residential units." He added, "Across from you is the G-Lion Arena Kobe, a next-generation arena with a capacity of 10,000, operated through private investment on Kobe's land." Kobe Port Tower, established in 1964, is another key tourist attraction. Following renovations to enhance earthquake resilience in 2024, the tower opened some outdoor observation decks. Visitor numbers, which had previously plateaued at around 300,000 annually, doubled to 600,000 after the reopening. Kobe City plans to continue its port redevelopment efforts with a focus on "creating new value that connects history and the future" by 2040. Naoki Sekiguchi, an official from the Kobe Port Authority, stated, "We will operate the port primarily for logistics while enhancing tourism and entertainment features. Given that the port has a history of over 100 years, we aim to preserve as many of the historical buildings as possible during redevelopment." 2026-06-01 12:03:00

AI Command in Action: LIG D&A Unveils Intelligent USV Demonstration Unmanned vessels operating under artificial intelligence (AI) command are becoming a reality. LIG Defense & Aerospace (LIG D&A) announced on June 1 that it held an "Intelligent Command and Control Demonstration for Unmanned Surface Vessels (USV)" on May 27 at Korea Maritime University in Busan, showcasing the operational capabilities of AI-based multi-purpose unmanned systems. The demonstration focused on the technology that integrates different types of unmanned systems under a single satellite communication system. The AI-based command and control system operated unmanned vessels, illustrating the future of warfare. Four vessels were deployed in the waters near Korea Maritime University, including the Haegum III, Haegum V, and two small multi-purpose unmanned surface vessels, Haegum S. Each fleet demonstrated scenarios for anti-surface and anti-submarine warfare. In the anti-surface scenario, the operation simulated an enemy vessel breaching the Northern Limit Line (NLL), executing plans from initial strategy development to warning shots, engagement fire, and unmanned vessel collision attacks. The anti-submarine scenario involved detecting enemy submarines, deploying sonobuoys, operating towed array sonar (TASS), launching Shark torpedoes, and confirming sinkings, all executed through the AI-based command and control system. LIG D&A explained that implementing this system could reduce the time from detection to decision-making and engagement to one-tenth of the current duration. Due to the nature of unmanned systems, continuous operations for 24 hours are also possible. In the future, LIG D&A plans to establish an open platform that can integrate various unmanned systems, while pursuing a strategy of "Open Platform, Closed Core" for independent learning and operation of defense data. Lee Seung-yong, CTO of LIG D&A, stated, "Integrating unmanned platforms and commanding the battlefield situation in real-time through AI is key to future defense competitiveness. We will continue to expand the integrated platform and promote early product commercialization to facilitate global package solution exports." A representative from Palantir remarked, "Our collaboration with LIG D&A has accelerated AI integration, and this demonstration showcases the achievements both companies have made in a short period." Meanwhile, as AI emerges as a cornerstone of future warfare, domestic defense companies equipped with big tech capabilities are also emerging. In South Korea, major firms like LIG D&A and Hanwha Systems, along with startups like MakinaRocks and Human Technology, are leading the development of domestic AI defense platforms.* This article has been translated by AI. 2026-06-01 11:30:00

Lotte Home Shopping Expands AIGLE's Retail Presence with Second Store in Seoul Lotte Home Shopping has launched the second official store of the global outdoor brand AIGLE in South Korea, marking a significant expansion in its offline retail operations. The company announced on June 1 that the AIGLE Dosan store opened on May 29 in Gangnam, Seoul. This location follows the concept of AIGLE's first flagship store, which opened in 1989 in Saint-Germain, France. It is the third global store to open, following locations in France and Hong Kong, and reflects the brand's philosophy and the ambiance of its French headquarters throughout the space. To adapt to stagnation in the TV home shopping market and diversify consumer channels, Lotte Home Shopping is expanding its retail business by securing exclusive domestic rights for overseas brands. Previously, the company signed an exclusive domestic rights contract with AIGLE in 2024 and has operated pop-up stores in key fashion districts such as Apgujeong and Hannam-dong. In April, Lotte Home Shopping opened AIGLE's first official store in Lotte World Mall in Jamsil, Seoul. With the opening of the Dosan store, the company aims to enhance brand experience through its official retail locations. Lotte Home Shopping plans to operate pop-up stores in department stores in Daejeon and the Chungcheong region in the first half of this year and expand to new locations in Busan and Gyeongsang by the end of the year. Kim Hyun-jung, head of the Fashion DT team at Lotte Home Shopping, stated, "By opening AIGLE's second official store in Dosan-daero, a key fashion district, we have strengthened customer experience elements. We expect to attract significant interest from customers who value a differentiated brand experience that allows them to feel AIGLE's unique brand sensibility."* This article has been translated by AI. 2026-06-01 11:30:00

Bank of Korea Governor Shin Hyun-sung: South Korea's Economic Conditions Favorable Compared to Eurozone Bank of Korea Governor Shin Hyun-sung reiterated his commitment to raising the benchmark interest rate, stating that the challenges in implementing monetary policy arise from conflicting indicators such as growth rates and inflation. He noted that currently, all indicators in South Korea point in the same direction. During a policy discussion with Isabel Schnabel, Executive Board Member of the European Central Bank (ECB), at the '2026 BOK International Conference' on June 1, Shin remarked, "It is difficult to determine how much attention should be paid to inflation when the economy is weak, but I expect the GDP gap to be positive next year. When the economy is strong, the dilemmas decrease." He highlighted that South Korea shares significant similarities with the Eurozone, particularly in its sensitivity to energy price shocks, noting the country's high dependence on energy imports from the Middle East. Shin explained, "When oil prices rise, the deterioration in trade conditions slows down growth in gross domestic income (GDI) compared to GDP. However, this time, GDI has outpaced GDP, thanks to strong semiconductor exports that have provided more than adequate compensation for price increases." He added, "The Bank of Korea has much greater flexibility in conducting monetary policy and is likely to manage inflation effectively. Strong semiconductor figures are expected to reflect positively on nominal GDP, which will have beneficial effects on household and public debt." Shin concluded that he believes South Korea's situation is more favorable than that of the Eurozone and emphasized the need to leverage the current favorable conditions to the fullest extent. In response, Schnabel noted, "Global pipeline pressures are higher now than they were in 2022 when Russia invaded Ukraine," and pointed out that even China is experiencing relatively strong producer price inflation, which could impact supply chains. She forecasted that inflationary pressures are likely to rise globally, stating, "The Eurozone has experienced relatively strong service inflation over the past few years, while goods inflation has not been as pronounced. However, price pressures are expected to be higher in goods." Schnabel also mentioned the uncertainty surrounding future interest rate decisions due to ongoing conflicts in the Middle East, adding, "Compared to 2022, we are unlikely to see prices rise to double digits again. Whether there will be interest rate hikes remains to be seen."* This article has been translated by AI. 2026-06-01 11:27:00

Innovation Party Criticizes Kim Yong-nam's Pursuit of Power and Wealth The Jo Kuk Innovation Party recently criticized Kim Yong-nam, a candidate from the Democratic Party running in Pyeongtaek, saying he is merely chasing power and wealth while questioning the authenticity of others. They emphasized that for true unity, Jo Kuk, who is also running in the same district, must win. Lee Hae-min, the party's secretary-general, spoke to reporters on June 1 at the National Assembly, stating that the Innovation Party's decision to unify with the Democratic Party during the last presidential election was a significant move for the victory of the broader democratic camp. "Our focus on solidarity is because we share the values that led to the success of the progressive government," he said. Targeting Kim, Lee remarked, "Just a year ago, he was wearing red for a long time, then briefly switched to orange, and now, since he didn't receive a nomination, he has changed to blue in pursuit of power. He is the one questioning who is genuine and who is fake. His values are not those of the democratic camp but rather of power and money." Lee referred to Kim as 'filth' and questioned whether the Democratic Party should share in this disgrace. "Is it necessary for the Democratic Party to get involved in this filth? Is the shame solely the responsibility of the party members?" he asked. He further asserted that for the sake of true solidarity with the Lee Jae-myung government, Jo Kuk must be elected in the upcoming by-election. "Considering the future political landscape, it is crucial for Jo, who has consistently worked to create meaning in unity and solidarity with the Lee Jae-myung government, to be elected to realize these values as quickly as possible," he concluded.* This article has been translated by AI. 2026-06-01 11:27:00

[[6·3 Local Elections]] People Power Party Pushes 'Park Chan-dae Fraud Prevention Laws' and 'Jung Won-oh Prevention Law' The People Power Party announced plans to introduce the 'Park Chan-dae Fraud Prevention Laws,' which would require candidates to clarify their relationships with independence activists during registration, and the 'Jung Won-oh Prevention Law,' mandating at least three debates for candidates running for provincial governor. At a press conference on June 1, Song Eon-seok stated, "We will work to judge Democratic Party candidates who evade debates and create confusion in elections with false backgrounds, aiming to establish a fair election culture." He confirmed that these proposals would be pursued as party policy. The laws related to the Park Chan-dae Fraud Prevention Laws include amendments to the Public Official Election Act, the Public Officials Ethics Act, and the Act on the Honoring of Independence Activists. Specifically, candidates registering as descendants of independence activists would be required to disclose their exact relationship. The proposals also aim to prohibit public officials from falsifying familial ties and to punish acts that tarnish the names and reputations of independence fighters. The Jung Won-oh Prevention Law focuses on amending the Public Official Election Act to require at least three debates among candidates for provincial governor. The People Power Party has expressed strong dissatisfaction, alleging that Jung Won-oh, the Democratic Party's candidate for Seoul mayor, has been avoiding candidate debates during the local election process. During the press conference, Song criticized Jung, saying, "He is a cowardly and incompetent candidate who has failed to adequately explain allegations of coercing female employees at entertainment venues, a trip to Cancun, and the 'Baby Good' incident, while avoiding debates and only participating in a late-night surprise debate the night before early voting." The press conference also addressed the recent release on bail of accountant Jeong Yeong-hak and lawyer Jeong Min-yong, who were sentenced to prison in the first trial for their involvement in the 'Daejang-dong development preferential treatment' case. Song emphasized, "Criminals are being released freely, and due to their decision to forgo appeal, 780 billion won in criminal proceeds will end up in their pockets." He also mentioned that Park Sang-yong, the investigator involved in the case related to President Lee Jae-myung's alleged North Korean remittance, has been indefinitely suspended from duty, stating, "This is the current state of South Korea under the Lee Jae-myung administration, where those who commit crimes thrive while those who uncover them are punished." Jung Jeong-sik, the party's policy committee chairman, who attended the press conference, remarked, "The public is struggling with high exchange rates, inflation, high interest rates, job shortages, and economic recession, while the Lee Jae-myung administration and the Democratic Party are solely focused on resolving the 'Lee Jae-myung judicial risk.'" He assessed the competitive landscape for the June 3 local elections, stating, "The outcome will depend on who mobilizes more voters on election day." He added, "We deeply reflect on our shortcomings in the People Power Party. If you unite your strength to check us, we will humbly and desperately renew ourselves to prevent the Lee Jae-myung administration's reckless governance and work for the people's livelihoods."* This article has been translated by AI. 2026-06-01 11:27:00

Jeong Cheong-rae: Record Voter Turnout Proves Claims of Election Fraud Are Baseless Jeong Cheong-rae, the head of the Democratic Party's Central Election Campaign Committee, emphasized that the record early voting turnout in the June 3 local elections demonstrates how disconnected claims of election fraud are from public sentiment. He criticized former Presidents Lee Myung-bak and Park Geun-hye for their involvement in the campaign, labeling it as a disregard for the public. Speaking at a campaign committee meeting in Cheonan on June 1, Jeong stated, "The fervor for early voting reflects the people's earnest desire to eradicate the forces of insurrection and normalize South Korea." He urged supporters to embody the spirit of the Constitution, which asserts that "sovereignty resides with the people and all power emanates from the people." Jeong also condemned the participation of conservative former presidents in the campaign, saying, "There are still those dreaming of a revival of the insurrection led by Yoon Suk-yeol, while Park Geun-hye, who was impeached through the candlelight revolution, and Lee Myung-bak, a symbol of corruption who has served time in prison, are trying to undermine President Lee Jae-myung." He warned, "If we do not completely extinguish the embers of insurrection, we cannot predict when they might flare up again," asserting that Yoon Suk-yeol and the imprisoned trio of Lee Myung-bak and Park Geun-hye must be consigned to history.* This article has been translated by AI. 2026-06-01 11:27:00

Seoul Mayor Candidate Oh Se-hoon Criticizes Rival Over 'Kiss' Controversy Oh Se-hoon, the People Power Party candidate for Seoul mayor, criticized his rival Jung Won-o of the Democratic Party over a controversy involving a forced kiss at a campaign event in Yangcheon-gu the previous day. He stated, "Jung did not intervene and just laughed, which shows he lacks the qualities needed for a mayor." Speaking to reporters before a rally near Wolgok Station in Seongbuk-gu on June 1, Oh pointed out, "Based on his immediate judgment in handling the situation, Jung is an unprepared candidate in many ways." Oh specifically condemned Jung for not reacting when Woo Hyung-chan, the Democratic Party's candidate for Yangcheon-gu mayor, urged a child in Jung's arms to "give a kiss." He said, "Jung just smiled. If he had any awareness of the issue, he should have politely intervened, but there was no such intervention at all." He added, "Such behavior will serve as material for citizens to make wise judgments." Oh further remarked, "Although the election period seems short, it is sufficient to reveal all the qualities of a candidate. The kiss controversy also reflects the usual thoughts of the Democratic Party and candidate Jung." Meanwhile, Jung responded to the controversy by stating, "There was an unexpected action from the Yangcheon-gu mayoral candidate yesterday, but our camp addressed the issue on-site." After holding a press conference titled 'An Appeal to the Citizens of Seoul' at Seoul Station in Yongsan-gu on the same day, Jung added, "I feel a deep sense of responsibility to ensure that such issues do not recur."* This article has been translated by AI. 2026-06-01 11:24:00