Defense Minister Ahn to attend Shangri-La Dialogue, meet Japanese counterpart SEOUL, May 28 (AJP) - South Korean Defense Minister Ahn Gyu-back will attend the 23rd Asia Security Summit in Singapore from May 29 to 31 and hold talks with defense ministers from several countries, the Ministry of National Defense said Thursday. The Asia Security Summit, also known as the Shangri-La Dialogue, is an annual security forum hosted by the International Institute for Strategic Studies in Singapore, bringing together defense ministers and senior officials for multilateral and bilateral talks. During the forum, Ahn is scheduled to hold a bilateral meeting with Japanese Defense Minister Shinjiro Koizumi. It will be their first in-person meeting since January, when Ahn visited Japan and held talks with Koizumi in Yokosuka, Kanagawa Prefecture. The two ministers are expected to discuss ways to expand defense exchanges between Seoul and Tokyo, which have recently gained momentum. In particular, they may discuss plans to hold a Korea-Japan search and rescue exercise, or SAREX, which had been suspended for about nine years before the two sides agreed to resume it during the Yokosuka meeting. Seoul and Tokyo are reportedly in the final stages of coordinating the schedule for the exercise. Momentum for closer defense exchanges between the two countries is expected to continue, as Koizumi’s bilateral visit to South Korea is also being discussed following the Shangri-La meeting. However, it remains unclear whether there will be progress on Japan’s push for an Acquisition and Cross-Servicing Agreement, or ACSA, with South Korea, as Seoul has maintained a cautious stance on the issue. U.S. Secretary of Defense Pete Hegseth is also set to attend this year’s Shangri-La Dialogue. A separate bilateral meeting between Ahn and Hegseth is considered unlikely, as the two already held talks during Ahn’s visit to the U.S. on May 11. Still, if the two meet on the sidelines of the forum, Ahn may again explain Seoul’s recently announced basic plan for a nuclear-powered submarine and discuss its progress. Attention is also focused on whether the defense chiefs of South Korea, the U.S. and Japan will hold a trilateral meeting during the forum. Ahn is also scheduled to meet delegations from the U.S. Senate and House of Representatives, as well as the defense ministers of Australia, Norway, the Philippines and Thailand, to discuss ways to expand defense and defense industry cooperation. On May 30, Ahn will deliver a speech during a plenary session of the Shangri-La Dialogue under the theme, “Regional Security Challenges and the Republic of Korea’s Strategic Response.” Through the speech, Ahn is expected to explain the government’s defense policy in response to the rapidly changing security environment, the ministry said. 2026-05-28 13:09:27

AJP DEEP INSIGHT: Hormuz's final tug-of-war — nuclear stakes, civilizational fault lines, and a new world order in the AI age SEOUL, May 28 (AJP) - In late May 2026, the world is watching the Middle East once again with unflinching attention. Explosions continue to echo across the Strait of Hormuz. The United States and Iran are simultaneously pursuing negotiations and military action. The White House signals "progress." Yet in the same breath, President Donald Trump warns that he could "finish it again" if necessary. Iran insists it intends to uphold the ceasefire, while condemning limited American airstrikes as violations of it. What the world is witnessing is a strange kind of war. Not a full-scale conflict, but not genuine peace either. Neither a ceasefire nor a true end to hostilities. Negotiations proceed even as the guns keep firing. This is the defining character of the 21st-century gray zone war. But its essence runs deeper than any conventional military clash. Beneath the surface lie nuclear ambitions and oil, the dollar system and the U.S.–China rivalry for global supremacy, the collision of Islamic and Jewish civilizations, and the contest over supply chains in the age of artificial intelligence. The Strait of Hormuz has become more than a body of water. It is the fault line of the entire world order. The most striking feature of the current crisis is that war and diplomacy are advancing in parallel. Washington and Tehran are reportedly discussing a memorandum of understanding toward an end to hostilities, and both sides have sent signals that progress is being made. The U.S. State Department and White House have indicated that negotiations have not collapsed entirely, and Iran has officially kept the door to a diplomatic resolution open. Yet simultaneously, U.S. forces launched fresh airstrikes on Iranian military installations near the Strait of Hormuz within days of the latest exchange. Washington described the strikes as defensive, citing the interception of four Iranian drones and the destruction of a ground control station preparing to launch a fifth. On the surface, it appears a limited confrontation. Yet global financial markets and the international community do not view it that way. The reason is simple: the Strait of Hormuz is the heart of the world's oil supply chain. A critical share of the world's seaborne crude passes through this narrow passage each day. It is the energy lifeline of manufacturing nations such as South Korea, China, and Japan. Any prolonged blockade or sustained instability here would send oil prices surging, fracture global logistics, and risk reigniting inflation. Washington understands this better than anyone. Trump has cultivated the image of a president who does not drag out wars. His preferred method is coercion and negotiation punctuated by limited military action — a strategy designed to bend adversaries without committing to full-scale conflict. But Iran does not operate on an American timetable. Where the United States wants speed, Iran deploys time itself as a weapon. That is an ancient Persian survival strategy. America is a young superpower, barely 250 years old. Iran is a civilization with 5,000 years of memory. It has learned, across centuries of foreign pressure and imperial domination, how to endure. And so, as American military pressure intensifies, Iran's response is not frontal confrontation but a strategy of delay and psychological attrition. In the current crisis, rather than launching immediate large-scale retaliation, Tehran has pursued managed tension. It knows the dangers of total war all too well. The Iranian economy has been hollowed out by sanctions. Youth unemployment, rising prices, and deep systemic fatigue have accumulated at home. But Washington, too, has no appetite for a full war. The American economy has not fully escaped inflationary pressure. For Trump, with domestic politics always in view, a prolonged conflict carries serious political risk. The result is a dangerously balanced standoff in which neither side can deliver a decisive blow nor easily back down. Four Fault Lines at the Heart of the Negotiations The current U.S.–Iran negotiations revolve around four core disputes. The first, and most fundamental, is the nuclear question. Trump has repeatedly and unequivocally stated that Iran acquiring a nuclear weapon is an absolute red line. Washington's most acute concern is Iran's stockpile of approximately 440 kilograms of uranium enriched to 60 percent purity. Nuclear experts generally define weapons-grade uranium as enriched to around 90 percent, but material at 60 percent is already considered a significant danger threshold — technically, further enrichment to weapons-grade levels is achievable within a short window. The United States sees no path to a post-war settlement without eliminating or placing that material under verifiable control. From Tehran's perspective, however, nuclear capability is not merely a weapon. It is an insurance policy for regime survival. The fate of Libya's Muammar Gaddafi — who dismantled his nuclear program only to see his government collapse and himself killed — remains a defining trauma for Iran's leadership. No Iranian government can lightly surrender that leverage. The second dispute concerns the handling of enriched uranium. Washington has expressed strong reluctance to allow China or Russia to take custody of Iran's highly enriched stockpile. The logic is straightforward: both are American strategic rivals. The more realistic alternative may be third-country management. Pakistan presents a particularly intriguing option. It is the Muslim world's first nuclear-armed state, maintains a strategic relationship with China, is not fully hostile to the United States, and has deep ties with Saudi Arabia. A model under which some portion of Iran's highly enriched uranium is stored temporarily in an internationally co-managed facility on Pakistani soil — under International Atomic Energy Agency supervision — could allow Washington to address its proliferation concerns while offering Tehran a face-saving exit. Diplomacy, after all, is ultimately the art of creating an off-ramp for the other side without demanding their complete humiliation. The third issue is the Strait of Hormuz itself. This is not merely a shipping lane. It is a vein of modern civilization. The global economy still runs on oil and liquefied natural gas. The AI age has arrived, but semiconductor fabrication plants and data centers consume extraordinary quantities of energy. AI is, at its core, a massive energy consumer. The data centers, chip factories, cloud server farms, and hyperscale AI computing systems that power the new economy require energy on a scale that strains the imagination. That is precisely why America's big tech companies are racing to secure nuclear power, LNG, and renewable energy sources. The AI age is less an era "after oil" than an era of energy power restructuring. The Strait of Hormuz will therefore remain a critical variable in the global economy for the foreseeable future. For China in particular, Hormuz is a lifeline. China is the world's largest manufacturing economy and one of its largest crude oil importers. Its factories, logistics networks, cities, and industrial zones run on Middle Eastern energy flows. A prolonged disruption to Hormuz would deliver a potentially crippling blow to the Chinese economy. Washington understands this clearly. The American strategy in the region therefore extends beyond pressuring Iran. It also functions as a means of exerting leverage over China's energy supply chain — linking the Middle East crisis directly to the broader U.S.–China contest for global primacy. China, in turn, has deepened its strategic ties with Iran, as has Russia. Meanwhile, the United States seeks to build a new regional order centered on Saudi Arabia, the UAE, and Israel. The Middle East is becoming the intersection of a new cold war. If the original Cold War was a clash between liberalism and communism, the present contest is far more complex. AI supremacy and semiconductor supply chains, control over energy and maritime logistics, the dollar system and digital finance, religion and civilization — all of these are simultaneously in play. The dollar question is particularly important. The United States has used dollar dominance to exert control over the global economy. The SWIFT payment system and the international financial architecture are, in practice, American-centered structures. Sanctions against Iran were ultimately a financial blockade executed through that dollar system. Yet China, Russia, and certain Middle Eastern states have been quietly expanding their use of alternative arrangements — renminbi-denominated payments, gold transactions, and energy trades settled in local currencies. None of this yet threatens dollar hegemony. But Washington senses the risk. The reason is that one of the foundational pillars of dollar primacy has always been the petrodollar system — the convention by which Middle Eastern oil is priced and settled in dollars. If the Middle East order shifts from American dominance toward a multipolar framework, the dollar system itself will face long-term structural pressure. Beyond the Abraham Accords: The Case for a 'Noah Covenant' The conflicts now tearing through the Middle East are not simply clashes of national interest. They carry within them the collision of Jewish and Islamic civilizations, the rivalry between Shia and Sunni power blocs, and the confrontation between an American-led order and a multipolar alternative. The Trump era's Abraham Accords opened a new current in the region — the emergence of a pragmatic framework for coexistence centered on Israel, the UAE, and Saudi Arabia. But Iran remains outside that framework. That absence matters enormously. The path forward must go beyond the Abraham Accords toward something that might be called a "Noah Covenant." Judaism, Christianity, and Islam ultimately share a common root. Among the descendants of Noah in the biblical tradition, the line of Shem — the Semitic lineage — connects to the spiritual origins of the Jewish, Arab, and Persian worlds. The region's genuine peace can only begin from the honest recognition that "the other side cannot be completely eliminated." Coexistence is not defeat. It is survival. Three Axes Moving Global Financial Markets Global financial markets are currently moving along three great axes. The first is the AI revolution. The second is the U.S.–China rivalry for supremacy. The third is Middle East risk. Until now, global equity markets have been driven by the AI rally. American AI semiconductor companies and big tech firms remain the dominant force. But the Middle East variable represents the single greatest risk capable of destabilizing that trajectory at any moment. If Washington and Tehran achieve a limited agreement and Hormuz stability is preserved, global markets will likely resume their AI-led advance. But if negotiations collapse entirely and the Hormuz crisis escalates in earnest, international oil prices could spike sharply and global inflation could re-emerge. The U.S. Federal Reserve would be unable to cut interest rates freely. The world economy would face the prospect of stagflation. Chinese manufacturing and European industry would absorb severe damage — and South Korea would not be spared. What This Means for South Korea South Korea is geographically distant from the Middle East, but it sits in no safe zone. The Korean economy is export-driven and heavily dependent on energy imports. Instability in the Strait of Hormuz translates directly into higher costs for Korean industry. Companies such as Samsung Electronics and SK hynix ultimately grow atop a foundation of global financial and energy stability. A surge in international oil prices and geopolitical turbulence would weigh on the entire Korean equity market. South Korea must therefore pursue three objectives simultaneously: diversification of its energy supply chain, reinforcement of its competitive industrial capabilities in AI and semiconductors, and a strategy of calibrated diplomatic balance in the Middle East. The world today does not move on military force alone. This is an era in which energy and AI, finance and supply chains, civilization and geopolitics all move together. The Strait of Hormuz is not simply a body of water. It is a microcosm of the entire 21st-century world order. And at this moment, humanity is testing that order on the surface of that sea. What is needed is not a balance of war, but an architecture of coexistence. Not the terror of nuclear weapons, but a system of trust and verifiable management. Not the transactional pragmatism of the Abraham Accords alone, but the civilizational imagination to move toward a Noah Covenant. That may be the only path through which the Middle East — and the world — survives what comes next. 2026-05-28 12:48:30

Labor Minister Kim Young-hoon Addresses Controversy Over Excess Profit Distribution Kim Young-hoon, the Minister of Employment and Labor, stated on May 28 that there are misconceptions suggesting the government intends to seize and redistribute profits from large corporations. He emphasized, "The government has neither the authority nor the intention to forcibly intervene in legitimate corporate profits." In a post on his social media, Minister Kim addressed the ongoing debate regarding the distribution of excess profits by large companies, asserting that it misinterprets the government's concerns and the essence of social dialogue. Earlier, during a meeting with reporters, Kim mentioned the need for social discussions on how to redistribute excess profits from large corporations. He announced plans for an urgent discussion hosted by the ministry next week, aiming to explore a 'Korean-style social solidarity wage' for the redistribution of excess profits. He added, "The success of Samsung Electronics today is the result of the dedicated efforts of labor and management, combined with support from the state and local communities. If we agree that this redistribution should also occur socially, then the solution must come through social dialogue." However, some critics argue that this approach represents excessive government intervention. The ruling People Power Party expressed concerns through a statement by Choi Bo-yun, head of the party's central election committee, describing it as a "dangerous state intervention that undermines the foundations of a free market economy." They noted that no other country has a government defining what constitutes 'normal profit' versus 'excess profit' for social distribution. Minister Kim acknowledged that while the wage agreement between Samsung Electronics and its labor union has been finalized, significant challenges remain for society. He pointed out that in the era of artificial intelligence (AI), various voices have emerged regarding the fairness of performance-based pay distribution, conflicts among labor, management, and shareholders, and risks in the capital market. This indicates a high level of public interest in these issues. He remarked, "The essence of this is a pressing question about 'how to live well together' in our society. I believe the solution lies in social dialogue, where we listen to diverse voices from the public, empathize with their concerns, and collaboratively seek alternatives and solutions. This is why I proposed the urgent discussion." Kim stressed that the widening gap among workers cannot be ignored, reflecting the will of the sovereign people. He called for labor, management, and the government to unite in wisdom to create a society where all can grow together through cooperation between primary and subcontractors. "We must listen and engage in dialogue with unwavering passion," he concluded. He further stated, "There are no companies without workers, and no unions created for companies to fail. Ultimately, we must live together."* This article has been translated by AI. 2026-05-28 12:33:00

AJP Watch: BOK's strongest-yet hike signal rattles markets SEOUL, May 28 (AJP) - After sitting on the benchmark at 2.50 percent for a full year, the Bank of Korea on Thursday issued the strongest-yet signal of a shift towards hikes of between 25 to 75 basis points, splashing cold waters on chip-blind stock frenzy. New Governor Shin Hyun-song, presiding over his first rate-setting meeting and media briefing, could hardly have been blunter about the direction ahead. "All the signs — price pressure, the growth trajectory, the exchange rate and the real estate market — point in one clear direction," Shin said, adding that the case for the rate path was so "exceptionally clear" that there could be little conflict in policymaking. Shin framed the policy debate around three questions — “when,” “how fast,” and “how far” rates may rise, pointing to the latest dot plot as guidance for the second-half policy path. "The BOK will manage all the factors feeding into prices by raising the base rate," he said. On the same day, the Bank of Korea sharply revised up both its growth and inflation forecasts for this year, reflecting stronger-than-expected chip demand and the prolonged Gulf crisis. Shin said the upgraded growth outlook reflected not only stronger semiconductor exports but also an exceptional improvement in Korea’s terms of trade, noting that first-quarter gross domestic income surged 12.3 percent from a year earlier. Policymakers, however, deemed it premature to judge the full scope of inflationary shocks. “Everyone broadly shared the same recognition about inflation, growth and financial stability risks,” Shin said. “The differences were more strategic — about timing rather than direction.” According to the central bank’s updated six-month rate outlook, or “dot plot,” released after the Monetary Policy Board meeting, 10 of the 21 projected policy-rate dots submitted by the seven board members pointed to a benchmark rate of 3.00 percent within six months. Seven projected 2.75 percent, two indicated 3.25 percent and only two suggested rates would remain at 2.50 percent. The distribution implies the board’s strongest consensus now leans toward two additional quarter-point hikes — or 50 basis points in total — over the next six months. The smaller cluster at 3.25 percent suggests some policymakers see room for a third hike should inflation and financial imbalances worsen. The latest projections marked a dramatic reversal from February, when 16 of the 21 dots pointed to rates remaining unchanged at 2.50 percent and four suggested a cut to 2.25 percent. Internally, the earnings and stock-market boom spilling over into wage and bonus increases was also adding to inflationary pressure, according to the BOK chief. Apart from inflationary risks, the won’s persistent weakness also remains a concern for authorities, Shin said, vowing to respond firmly to excessive one-sided market moves. “We will not tolerate disorderly herd behavior in the exchange rate,” he said, adding that offshore non-deliverable forward (NDF) trading could at times amplify volatility in the domestic market. The clearest signal yet of a monetary-policy shift was enough to shake capital markets that had been fixated on the chip rally. Bond yields jumped after the central bank’s hawkish guidance. The three-year government bond yield rose 4.1 basis points to 3.752 percent, while the 10-year yield climbed 2.9 basis points to 4.131 percent by midday. Stocks tumbled, with the KOSPI retreating nearly 3 percent and the KOSDAQ falling more than 4.6 percent. The won weakened 5.1 won to 1,507.10 against the U.S. dollar. 2026-05-28 12:29:49

Bank of Korea Governor Shin Hyun-sung: Semiconductor Boom to Benefit All Citizens Bank of Korea Governor Shin Hyun-sung stated on May 28 that the ongoing semiconductor boom will lead to increased benefits for all citizens through fiscal measures. During a press conference following the Monetary Policy Committee meeting, Shin noted that the bonuses distributed due to the semiconductor boom will be subject to income tax, contributing to a trickle-down effect. He anticipates that these benefits will materialize through government spending next year. He added, "While the semiconductor sector will initially reap the most benefits, it is inaccurate to say there will be no trickle-down effects. The positive impact will extend to wage increases, facility investments, construction investments, and overall consumption in the economy." Regarding the significant rise in Gross Domestic Income (GDI) in the first quarter of this year, Shin explained, "The increase in GDI compared to Gross Domestic Product (GDP) is largely due to the price effect from export prices rising more than costs. Even though oil prices have increased, the substantial rise in semiconductor prices has led to a higher GDI increase this time." The Bank of Korea has revised its economic growth forecast for this year upward from 2.0% to 2.6% due to the semiconductor boom. Despite downward pressure on the economy from the conflict in the Middle East, analysts believe growth will expand thanks to the strong semiconductor market. Shin remarked, "The conflict in the Middle East is expected to lower the growth rate by 0.4 percentage points, but the stronger-than-expected semiconductor market and the resulting increase in IT exports will raise the growth rate by about 0.7 percentage points. Additionally, government supplementary budgets and a booming stock market are projected to contribute 0.2 and 0.1 percentage points to growth, respectively." He also mentioned the potential inflationary pressures arising from Samsung's bonuses, stating, "The bonuses from Samsung could lead to increased demand through higher purchasing power, which may create inflationary pressures."* This article has been translated by AI. 2026-05-28 12:21:00

People Power Party Reports Competitive Races Ahead of Local Elections People Power Party officials classified Daegu and Gyeongbuk as strongholds and identified Seoul, Daejeon, Chungcheong, Busan, Ulsan, and Gyeongnam as competitive regions on May 28, one day before early voting for the June 3 local elections and National Assembly by-elections. For the by-elections, they deemed Daegu's Dalseong County a stronghold, while Ulsan's Nam-gu and Chungnam's Gongju, Buyeo, and Cheongyang were seen as competitive areas.Jung Hee-yong, the party's secretary-general, held a press briefing at the party's headquarters in Yeouido, Seoul, stating, "The official campaign led by Representative Jang Dong-hyuk, which began with support rallies in Daejeon and Chungnam, was primarily focused on targeting public sentiment in the central region and spreading that momentum nationwide."He added, "The passionate campaigning by our candidates, combined with recent support from former President Park Geun-hye, has led to a consolidation of our base, resulting in highly competitive races in various areas."Jung categorized the gubernatorial races as strongholds in Gyeongbuk and Daegu, while labeling Seoul, Busan, Gangwon, Chungnam, Daejeon, Ulsan, and Gyeongnam as competitive regions. For the National Assembly by-elections, he reiterated that Dalseong County in Daegu is a stronghold, while Ulsan's Nam-gu and Chungnam's Gongju, Buyeo, and Cheongyang are competitive areas.He emphasized, "Our candidates will do their utmost to regain the support of the public in every region until the very last moment. Each vote from our supporters can create a turning point for us." He also urged voters to participate in the upcoming elections, stating, "Voting begins tomorrow. Please support the People Power Party candidate, number 2, and rest assured that we will meticulously oversee the entire early voting process."Regarding candidate unification in Pyeongtaek, he mentioned, "I heard that candidates Yoo Yi-dong and Hwang Kyo-ahn communicated yesterday. If there is a role for the central party to facilitate finding common ground between the two candidates, we will approach it with a flexible and open attitude." On the Ulsan mayoral election, he called on independent candidate Park Maeng-woo to respond to the citizens' wishes and urged for unification.On the candidate unification in Busan's Buk-gu Gap, he stated, "The central party respects the candidates' positions and will work closely with the candidates for district chief, city council, and district council, including Park Min-sik, to conduct a vigorous campaign together."He concluded, "The essence of this election is clear. It is a battle to uphold the spirit of the Constitution and the rule of law against attempts to cancel the trial of the president's crimes, and to protect my home, my property, and my salary from the arrogant Lee Jae-myung administration. It is also an election to defend our regions from morally and incompetently unqualified candidates."Jung criticized the Democratic Party's candidates, stating, "The candidates presented by the Democratic Party, such as the candidate who avoids debates in Seoul, the candidate involved in power abuse allegations in Busan, the candidate facing allegations of prostitution in Ulsan, the parachute candidate in Gangwon who is unfamiliar with his own region, and the candidate linked to loan sharking in Pyeongtaek, are at a level where basic qualifications for public office are hard to expect." He urged voters to check the arrogant Lee Jae-myung administration and to deliver a stern judgment on the unqualified Democratic Party candidates through their votes.* This article has been translated by AI. 2026-05-28 12:18:00

HD Hyundai Heavy Industries Intensifies Efforts to Secure Canadian Submarine Contract HD Hyundai Heavy Industries is ramping up efforts to secure a contract for the Canadian submarine acquisition project by expanding collaboration with local shipyards. On May 28, the company announced that executives from both HD Hyundai Heavy Industries and Davie Shipyard met on May 26 at Davie's Ottawa office to discuss strengthening strategic cooperation across shipbuilding and naval operations. The meeting included Park Yong-yeol, head of HD Hyundai Heavy Industries' naval business division, and James Davies, CEO of Davie Shipyard. During the discussions, HD Hyundai Heavy Industries highlighted its status as the world's leading shipbuilder and showcased the excellence of its K-Submarine technology. They exchanged in-depth opinions on potential collaboration to contribute to the development of Canada's shipbuilding industry. Davie Shipyard, located in Quebec, is Canada's largest shipyard, established in the early 19th century, with a track record of building various types of vessels, including icebreakers, offshore plants, and military support ships. Davie also owns a subsidiary in Helsinki, Finland, which is expected to enhance the partnership between HD Hyundai Heavy Industries and Davie Shipyard, combining HD Hyundai's technological expertise with Davie's local infrastructure to develop a long-term strategic partnership that spans the Arctic market. Additionally, on May 23, HD Hyundai Heavy Industries President Joo Won-ho, along with other executives, participated in the welcoming ceremony for the entry of the Dosan Ahn Chang-ho submarine at the Esquimalt naval base in British Columbia, Canada, and attended a reception hosted by the South Korean ambassador to Canada, further supporting their bid for the contract. Notably, HD Hyundai Heavy Industries is enhancing its competitiveness by proposing offset trade initiatives that include not only the export of naval vessels but also the expansion of imports of Canadian crude oil, technology transfer, and collaboration with the local shipbuilding industry. This move is seen as an effort to strengthen the solid partnership between the two countries ahead of the expected decision in June regarding the selection of a contractor for the Canadian Patrol Submarine Project (CPSP), which is valued at up to 60 trillion won. HD Hyundai Heavy Industries is participating in the CPSP project as part of a 'one team' effort with Hanwha Ocean. Joo Won-ho stated, "We are committed to sharing capabilities and expanding business areas with leading Canadian shipyards like Davie and Irving. We will do our utmost to secure the Canadian submarine project as part of the K-defense one team." 2026-05-28 12:18:00

Jung Won-o Urges Against Political Conflict Over Seosomun Incident Jung Won-o, the Democratic Party's candidate for Seoul Mayor, stated on the 28th that the political conflict surrounding the Seosomun incident should not be politicized. He called on his rival, Oh Se-hoon of the People Power Party, to stop negative campaigning. During a press conference at his campaign office in Sogong-dong, Jung announced the resumption of his campaign activities, which had been paused for two days due to the aftermath of the Seosomun overpass collapse. Focusing on safety, Jung outlined his safety policies, emphasizing the need to address the complacency regarding safety within public institutions and prioritize the lives and safety of citizens. He stressed that politicizing an incident that resulted in casualties is unacceptable, stating, "I have instructed my campaign team not to use this for electoral gain." The People Power Party has criticized Jung's supporters for allegedly discussing the incident as a potential advantage in a KakaoTalk group chat shortly after the accident. Regarding the upcoming televised debate for mayoral candidates scheduled for that night, Jung asserted, "There will be no debate that politicizes the Seosomun incident." However, he expressed hope for discussions on improving life safety in Seoul, pointing out that many safety incidents occurred during Oh's administration. Jung also criticized Oh's campaign for engaging in negative tactics throughout the election. He claimed, "From the beginning, I proposed a policy-focused campaign without negative attacks, but I have faced consistent smear campaigns against me." He added, "To insist on a debate while relying on negative tactics is clearly intentional," rejecting Oh's repeated requests for a one-on-one debate. Jung urged, "Stop the negative campaigning now." In response to the narrowing gap in polling numbers, which have reached a tie at 39% for both candidates, Jung remarked, "I anticipated a close race from the start and have prepared for the consolidation of supporters as we approach the final stretch." He concluded, "Regardless of the polls, I will remain truthful and do my best at every moment, aiming for victory in the end." A recent poll conducted by Embrain Public for the Culture Daily from May 25 to 27 surveyed 805 Seoul voters, showing both candidates with equal support at 39%. The survey was conducted via mobile phone interviews, with a response rate of 14.0% and a margin of error of ±3.5 percentage points at a 95% confidence level. For more details, please refer to the Central Election Survey Deliberation Commission's website. 2026-05-28 12:18:00

Bank of Korea Governor Shin Hyun-song Vows Firm Action Against Currency Volatility Bank of Korea Governor Shin Hyun-song stated on May 28 that he will take decisive action against the recent volatility in the won-dollar exchange rate. Following a monetary policy committee meeting where the base rate was held steady at 2.50%, Shin emphasized, "We will not tolerate exchange rate volatility, and we have the means and will to address it through various methods." He identified the ongoing conflict in the Middle East as the primary factor contributing to the weakening of the currency. "The situation in the Middle East triggers risk-averse sentiment and affects markets not only in Korea but also in countries that heavily import oil," he said. "Countries that import oil see their exchange rates significantly influenced by oil prices, and if the situation in the Middle East stabilizes quickly, there is a strong possibility that the won will appreciate considerably in the future." Regarding the recent surge in the exchange rate, Shin pointed to the non-deliverable forward (NDF) market, noting, "NDF transactions lack transparency and often require anonymity. Particularly, when NDF trading occurs in offshore markets during Korean nighttime, it necessitates hedging, which can impact the domestic market." He proposed that a key solution would be to promote the internationalization of the won, bringing it into the formal financial system. "This would involve securing won through swap market transactions with the U.S. dollar, allowing for the reinvestment of principal. To achieve this, the use of the won must be expanded and formalized," he explained. Shin also commented on remarks made by Kim Yong-beom, head of the Presidential Policy Office, who stated on May 24 that high interest rates, inflation, and exchange rates are unavoidable costs of success as the Korean economy transitions to a new phase. Shin interpreted this as a sign of foreign investors' confidence in Korea. He added, "From the central bank's perspective, the exchange rate is a crucial factor in terms of liquidity, financial stability, and its impact on import prices, which can stimulate inflation." On the recent rise in market interest rates, Shin attributed it to international conditions but emphasized the importance of balance among market participants. He noted, "The recent increase in Korean government bond yields is part of a global trend, primarily driven by the conflict in the Middle East. Concerns about inflation and fiscal stability in major countries have led to rising bond yields, and Korean bonds are following suit." He concluded, "Stabilizing the bond market fundamentally requires participants to find balance. It is desirable for buyers and sellers to reach a consensus on price determination."* This article has been translated by AI. 2026-05-28 12:06:00

34 Businesses Caught Engaging in Unpaid Labor, Owing 448 Million Won 34 businesses have been caught by labor authorities for engaging in what is termed "unpaid labor" by misusing comprehensive wage systems, including fixed overtime pay. The Ministry of Employment and Labor announced on May 28 that it identified these businesses during a two-month oversight initiative aimed at eradicating the misuse of comprehensive wage systems, which began on February 26. The total amount of unpaid wages owed by these businesses is 448 million won. Comprehensive wage systems are intended for limited use in sectors where calculating working hours is challenging. However, they have faced criticism for being exploited as a means to evade paying overtime. This raises concerns about the normalization of excessive working hours through fixed overtime or flat-rate allowances. In response, the Ministry launched targeted oversight on 79 businesses suspected of misusing comprehensive wage systems, based on external complaints, petitions, and anonymous tips. Among these, 73 utilized fixed overtime, while six employed flat-rate pay systems. It was found that 43% of these businesses misused the comprehensive wage system. Of the 34 businesses that violated overtime limits, many failed to manage overtime properly. Additionally, 27 businesses did not accurately record actual hours worked, including overtime, night, and holiday hours, violating labor time record-keeping regulations. The government focused on confirming violations related to unpaid wages due to the misuse of comprehensive wage systems, as well as breaches of overtime limits and labor time record-keeping. For instance, a software development company paid only fixed overtime without verifying actual working hours. One cosmetics manufacturer failed to maintain any records of employee attendance while neglecting to pay over 100 million won in overtime and night work allowances. The Ministry has ordered these violating businesses to rectify their labor time violations and pay all owed wages. Failure to comply will result in legal action. Businesses that have completed corrections will be subject to repeated oversight until all legal violations are resolved. The Ministry of Employment and Labor plans to establish a continuous oversight system to prevent the misuse of comprehensive wage systems from being a one-time issue. Given the high detection rate of legal violations reported through the anonymous tip-off center, efforts to promote this reporting mechanism will be strengthened. Minister of Employment and Labor Kim Young-hoon emphasized, "Ensuring that workers receive fair compensation is a fundamental principle for normalizing the labor market. Compensation for labor must not be denied under the guise of comprehensive wages."* This article has been translated by AI. 2026-05-28 12:03:00