SK Telecom Recovers 500 Billion Won Operating Profit; LG Uplus Continues Growth Amid Hacking Concerns The three major telecom companies in South Korea—SK Telecom, KT, and LG Uplus—released their Q1 2026 results, with SK Telecom recovering to an operating profit of 500 billion won, moving past the fallout from last year's USIM hacking incident. LG Uplus was the only company to report increases in both revenue and operating profit, demonstrating stable growth. According to SK Telecom, its consolidated revenue for Q1 reached 4.39 trillion won, with an operating profit of 537.6 billion won. Although revenue decreased by 1.4% and operating profit by 5.3% compared to the previous year, the recovery of operating profit above 500 billion won raised expectations for improved performance in the second half of the year. The wireless segment reported a 3% decline in revenue to 2.58 trillion won. However, the proportion of 5G subscribers grew to 81% of total handset subscribers, maintaining a market share of 45.7%. In the wired segment, revenue increased by 2.2% year-over-year to 295.4 billion won, driven by a rise in high-speed internet subscribers and an increase in gigabit internet users. Conversely, revenue from paid broadcasting fell by 1.3% to 471.9 billion won, and enterprise revenue decreased by 1.7% to 274.7 billion won. LG Uplus reported growth in both revenue and operating profit for Q1, with consolidated revenue of 3.80 trillion won, up 1.5%, and operating profit of 272.3 billion won, up 6.6% year-over-year. The mobile segment's total revenue reached 1.65 trillion won, a 3.2% increase from the previous year, attributed to an increase in subscriber lines and enhanced competitiveness in core telecom operations. The total mobile subscriber lines grew by 6.4% year-over-year to approximately 39.03 million. Mobile network operator (MNO) lines increased by 7.1% to about 21.97 million, while mobile virtual network operator (MVNO) lines rose by 4.7% to about 8.96 million. Revenue from the smart form segment, which includes IPTV and internet services, rose by 4.1% year-over-year to 656.3 billion won. IPTV revenue increased by 1.5% to 335.1 billion won, while internet revenue grew by 7.9% to 320 billion won. Both companies' performance was bolstered by their AI businesses. SK Telecom's AI revenue nearly doubled compared to its sluggish telecom segment, with AIDC revenue soaring by 89.3% year-over-year to 131.4 billion won, driven by increased data center utilization and GPU as a Service (GPUaaS) sales. LG Uplus also experienced growth in its AIDC business, with revenue increasing by 31% year-over-year to 114.4 billion won. An Hyung-kyun, head of the Enterprise AI Business Group, stated during the Q1 earnings call that the revenue from contracts secured last year is now being reflected, and he expects continued high growth. He added that the company plans to strategically expand its business in line with market conditions while reliably executing existing projects. KT is set to announce its Q1 results on the 12th. Analysts predict KT's consolidated revenue for the quarter will be around 6.8 trillion to 6.9 trillion won, with operating profit expected between 480 billion and 520 billion won. The market anticipates that the impact of last year's femtocell hacking incident, increased security investments, customer compensation policies, and one-time gains from real estate sales will affect its performance.* This article has been translated by AI. 2026-05-08 07:21:26

Korea and Japan Stock Markets Surge Amid AI Semiconductor Rally In just a few days, the stock markets in South Korea and Japan have set historic records. The KOSPI index in South Korea surpassed 7,000, while Japan's Nikkei average soared by 3,320 yen to reach an all-time high. The surge is largely driven by the demand for AI semiconductors. Interestingly, the market dynamics in the two countries differ. The South Korean market is primarily influenced by Samsung Electronics and SK Hynix, fueled by expectations of explosive demand for memory semiconductors due to the expansion of AI servers and data centers. Samsung's market capitalization has now exceeded $1 trillion, positioning South Korea as a key player in the 'AI memory supply chain.' Conversely, the Japanese market is also experiencing an AI rally, with Advantest, Tokyo Electron, and SoftBank Group seeing significant gains, and Kioxia hitting its upper limit. The strong performance of U.S. companies like AMD and Micron, along with the Philadelphia Semiconductor Index reaching new heights, has also boosted Japanese stocks. However, there are concerns in Japan regarding the concentration of gains in certain AI and semiconductor stocks. The NT ratio, which quickly gauges market trends, has reached historic highs, prompting experts to caution that the sustainability of this tech-focused rally may be limited. Currently, the market is not merely searching for 'good companies' but is instead seeking supply chains that can thrive in the AI era. In this context, South Korea and Japan find themselves in different positions. South Korea holds the critical component of memory semiconductors, benefiting directly from the increase in AI servers. In contrast, Japan excels in semiconductor equipment, materials, and testing tools. In simple terms, South Korea produces the 'heart,' while Japan manufactures the 'surgical tools.' Both are essential, but the market reacts more strongly to core components. This shift also reflects a reversal in the industrial histories of South Korea and Japan. In the 1980s, Japan was the dominant force in the global semiconductor and electronics industry, while South Korea was learning from Japanese technology. However, the AI era has changed the order. Japan has remained focused on finished products and precision manufacturing, while South Korea has bet on a memory-centric strategy. The greatest anxiety for the Japanese economy lies here. In the past, Japan viewed South Korea as a country within its industrial ecosystem. Now, however, the Japanese market is increasingly following the trends set by Samsung and SK Hynix. The surge in Japanese semiconductor stocks is ultimately underpinned by expectations of an AI boom among South Korean and American memory firms. While the current rally may not last indefinitely, there is a risk of overheating in AI investments, and the semiconductor cycle can be volatile. Japan's market has already begun to signal risks associated with a 'semiconductor concentration.' South Korea faces similar risks due to the overwhelming influence of Samsung and SK Hynix. Nonetheless, it is clear that the global market is shifting from an era dominated by automobiles, steel, and home appliances to one focused on AI infrastructure. In this transformation, the positions of South Korea and Japan are also changing. Japan's recent sensitivity to Samsung and the KOSPI reflects this reality: for the first time in the AI era, South Korea is beginning to take the lead over Japan in industrial order.* This article has been translated by AI. 2026-05-08 07:03:28

Explosions Reported in Hormuz Strait Amid U.S.-Iran Tensions On May 7, Iranian media reported explosions in the Hormuz Strait linked to U.S. military actions. According to Yonhap News, around 10 p.m. local time, the semi-official Mehr news agency noted that explosions were heard near Qeshm Island, close to Bandar Abbas in southern Iran. A source told Mehr that two drones were shot down near Bandar Abbas, separate from the situation at Qeshm Island. Additionally, the judiciary-run Mizan news agency reported that the Iranian military engaged in combat, targeting the Bahman dock on Qeshm Island. State-run IRIB claimed that U.S. forces attacked an Iranian oil tanker, prompting a missile counterattack from Iran that forced U.S. troops to retreat. The U.S. has not yet commented on these incidents. Just a day earlier, U.S. media, including Axios, reported that the U.S. and Iran were nearing a one-page memorandum of understanding regarding a ceasefire. However, the renewed clashes in the Hormuz Strait have escalated tensions once again. Mohammad Bagher Ghalibaf, the head of Iran's negotiating team, criticized the situation, stating, "We have returned to the typical 'fake Axios' operation," dismissing prospects for progress in negotiations.* This article has been translated by AI. 2026-05-08 06:09:19

South Korea Moves to Revamp Compensation System for Humidifier Disinfectant Victims South Korea is initiating a process to gather feedback from victims as it prepares to transition to a government-led compensation system for those affected by humidifier disinfectants. This shift is expected to accelerate discussions on compensation standards and support scope.The Ministry of Climate, Energy and Environment announced that it will hold a briefing on the complete revision of the enforcement decree for the "Special Act on Compensation for Humidifier Disinfectant Victims" on May 8 in Seoul. The law is set to take effect on October 8.During the briefing, details regarding the application process for compensation, criteria for determining damages, ongoing treatment costs, and health monitoring procedures will be disclosed. The government plans to incorporate additional feedback from victims before the legislative notice is issued.As the compensation system shifts from a victim-centered approach to a state-led model, key issues such as expanding the scope of compensation and long-term treatment support are expected to be major points of discussion. Some victim advocacy groups are calling for clearer definitions regarding health impacts and support for bereaved families.To facilitate compensation reviews, the government will establish a support organization under the Office for Government Policy Coordination and form a committee to develop detailed compensation standards.The humidifier disinfectant crisis began in 1994 when products linked to lung damage were sold. A 2011 epidemiological study confirmed the connection between these disinfectants and lung injuries. To date, 8,065 individuals have applied for compensation, with 6,011 recognized as victims.In June 2024, 13 years after the causal link was first established, the Supreme Court acknowledged government responsibility in the humidifier disinfectant case. Subsequently, on December 24, the government announced a comprehensive support plan for victims, transitioning to a state-led compensation system.According to the revised law's provisions, individuals already recognized as victims under the previous law will be considered to have applied for compensation as of the new law's effective date. However, new applicants who have not yet been recognized must apply for compensation within six months after the new law takes effect, by April 8, 2027.First Vice Minister of Climate, Kim Han-seung, expressed sincere apologies to victims and their families for their suffering, stating, "We will finalize the subordinate regulations by the law's implementation date and ensure a smooth transition to the new support system for victims."* This article has been translated by AI. 2026-05-08 06:03:25

Middle East Conflict Impacts Industries: Shipbuilding and Refining Thrive, Aviation and Battery Sectors Struggle Although the U.S. and Iran have entered negotiations to end hostilities, the domestic industrial sector is expected to feel the impact starting in the second quarter. Industries are experiencing mixed fortunes, with some benefiting while others face challenges. The blockade of the Strait of Hormuz has led to unprecedented logistics disruptions, benefiting the shipbuilding and refining sectors, while the aviation and battery industries are likely to see declines in performance. ◆ Shipbuilding and Refining Benefit from Crisis According to industry reports, shipbuilding has shown the most significant growth due to the Middle East conflict. The blockade has caused a surge in demand for alternative vessels, leading to a substantial increase in high-value ship orders. HD Hyundai's intermediate holding company, HD Korea Shipbuilding & Marine Engineering, reported a 57.8% increase in operating profit for the first quarter, reaching 1.356 trillion won, the highest quarterly profit since its establishment in 2019. Revenue also rose by 20.2% to 8.1409 trillion won, with net profit increasing by 86.6% to 1.1414 trillion won. Hanwha Ocean also saw a 70.6% increase in operating profit to 441.1 billion won, driven by high-value orders for liquefied natural gas (LNG) carriers. Samsung Heavy Industries reported a 16% increase in revenue to 2.9023 trillion won and a 122% rise in operating profit to 273.1 billion won, attributed to increased construction of high-profit vessels amid rising maritime logistics risks. The refining sector has also benefited from sustained high oil prices due to the conflict, improving refining margins as oil product prices rise. Analysts estimate that the combined operating profit of South Korea's four major refiners could reach around 4 trillion won in the first quarter. The petrochemical industry has managed to defend its profits despite soaring raw material costs, leveraging existing low-cost materials to improve performance. LG Chem reported an operating profit of 164.8 billion won in its petrochemical division for the first quarter, while Hanwha Solutions' chemical sector turned a profit of 34.1 billion won, recovering from a loss of 91.2 billion won in the same period last year. Lotte Chemical is also expected to report a profit. ◆ Airlines and Battery Sector Face Challenges Airlines are expected to shift from a brief profit period in the first quarter to significant losses starting in the second quarter. Jeju Air reported an operating profit of 49.7 billion won in the first quarter, but a loss is anticipated in the second quarter. T'way Air's operating loss is expected to widen from 7 billion won in the first quarter to 132 billion won in the second quarter. Jin Air, which posted an operating profit of 42.7 billion won in the first quarter, is projected to incur a loss of 53 billion won in the second quarter. Air Busan is also expected to shift from a profit of 30.4 billion won in the first quarter to a loss of 8 billion won in the second quarter. An airline official stated, "The war has caused international oil prices to soar, directly impacting the cost of aviation fuel, which is based on Dubai crude prices. Aviation fuel is difficult to store in large quantities due to its high risk of deterioration, and refiners are passing on cost increases from the blockade to aviation fuel margins, leading to ongoing losses for airlines since April." The battery sector is also experiencing a downturn. Rising energy prices and prolonged high interest rates due to the conflict have dampened electric vehicle demand, resulting in losses for all three major battery companies. LG Energy Solution reported an operating loss of 207.8 billion won in the first quarter, while Samsung SDI recorded a loss of 155.6 billion won, and SK On is expected to face losses between 300 billion and 400 billion won.* This article has been translated by AI. 2026-05-08 05:03:34

South Korea's Blue House Responds to North Korea's Constitutional Changes On May 7, the Blue House stated it will conduct a comprehensive review of North Korea's recent constitutional changes, which include the establishment of a territorial clause defining its territory solely as the northern region. A Blue House official emphasized that the government will consistently pursue a policy of peaceful coexistence on the Korean Peninsula based on this review. North Korea recently amended its constitution, removing references to national reunification and the concept of a unified Korea. According to the new constitution disclosed during a press briefing for the Unification Ministry, terms such as 'North Korean Peninsula,' 'national reunification,' and 'complete victory of socialism' were eliminated from the preamble and main text. Additionally, a new territorial clause was added, stating that the territory includes areas bordering the People's Republic of China and the Russian Federation to the north, and the Republic of Korea to the south, along with the associated territorial waters and airspace.* This article has been translated by AI. 2026-05-08 00:51:19

President Yoon Discusses Semiconductor Cooperation with Dutch Prime Minister President Yoon Suk Yeol spoke with Dutch Prime Minister Rob Jetten on May 7, emphasizing the need to enhance cooperation in advanced industries. This was their first conversation since Jetten took office in February. In a written briefing, Chief Presidential Spokesperson Kang Yu-jeong stated, "President Yoon expressed the desire for both countries to explore practical cooperation in semiconductors, artificial intelligence (AI), and quantum technology." Kang noted that Yoon highlighted the significance of this year, marking the 65th anniversary of diplomatic relations between South Korea and the Netherlands, and praised the mutually beneficial development of their strategic partnership. Jetten responded, expressing hope for continued strong collaboration in the semiconductor sector and expanding cooperation in areas like batteries and offshore wind energy. Kang added that both leaders acknowledged the importance of their partnership amid increasing global uncertainties, particularly due to the situation in the Middle East, and agreed to maintain close communication. In a post on X (formerly Twitter), President Yoon stated, "If South Korea, a semiconductor manufacturing powerhouse, and the Netherlands, strong in advanced semiconductor equipment, continue to collaborate, we can significantly contribute to stabilizing the global semiconductor supply chain." Yoon described the conversation as meaningful, allowing for open discussions on various issues, including the situation in the Middle East, and expressed commitment to deepening cooperation between the two nations. 2026-05-08 00:08:04

Trump Signals Potential Iran Peace Deal Before China Visit Trump hints at Iran peace deal ahead of China visit, warns of military pressure Donald Trump, the U.S. President, indicated a possible resolution to peace talks with Iran before his visit to China. Reports suggest that the U.S. and Iran are nearing a memorandum of understanding (MOU) to end hostilities, with Trump warning of increased military pressure if an agreement fails. On May 6, during a White House event, Trump told reporters, "Iran cannot and will not have nuclear weapons," adding that they have agreed on several issues. He noted, "We had very good discussions with Iran over the last 24 hours," expressing optimism about reaching an agreement. According to CNN and Axios, the MOU under discussion includes a temporary halt to Iran's nuclear enrichment, the lifting of U.S. sanctions, and a gradual easing of maritime restrictions in the Strait of Hormuz. President Lee's approval rating at 67%; Democratic Party leads President Lee Jae-myung's approval rating has dropped by 2 percentage points to 67%, according to a nationwide survey released on May 7. The poll conducted by Embrain Public, K-Stat Research, Korea Research, and Hankook Research from May 4 to 6 showed that more than half of respondents across all age groups, except those under 20, rated his performance positively. Among those under 20, 37% approved while 27% disapproved, with 36% unsure or not responding. Among ideological groups, approval was high at 92% among progressives and 69% among moderates, while 48% of conservatives disapproved. Korean stock market jumps to 7th largest globally, surpassing Canada The Korean stock market has reached a historic milestone, becoming the seventh largest in the world. As of May 7, Bloomberg reported that the market capitalization stood at approximately $4.59 trillion, surpassing Canada's $4.5 trillion. Korea now ranks behind the U.S. ($77.08 trillion), China ($15.27 trillion), Japan ($8.33 trillion), Hong Kong ($7.47 trillion), India ($5.1 trillion), and Taiwan ($4.67 trillion). Government faces uncertainty over oil reserve release amid rising costs As the government approaches the end of its oil reserve release policy aimed at stabilizing prices, uncertainty remains regarding future actions. With international oil prices rising, concerns about the sustainability of the policy are growing, especially as the refining industry faces increased financial burdens. The government has relied on short-term measures like price caps and reserve releases, but the lack of a clear exit strategy is contributing to market uncertainty. Industry estimates suggest that the combined operating profit of the four major refiners (SK Innovation, S-Oil, GS Caltex, and HD Hyundai Oilbank) could approach 5 trillion won for the first quarter, a significant improvement from the previous year, largely due to soaring oil prices from the Middle East conflict. Korea and Japan elevate security talks to deputy minister level High-ranking officials from South Korea and Japan met on May 7 in Seoul to discuss security cooperation. Deputy Foreign Minister Park Yoon-joo and Deputy Defense Minister Lee Doo-hee, along with Japan's Deputy Foreign Minister Takehiro Funakoshi and Defense Policy Director Koji Kano, held the 14th Korea-Japan Security Policy Council meeting, which has been upgraded from director-level discussions. The Foreign Ministry stated that both sides evaluated the recent trust and ties between the leaders of Korea and Japan, emphasizing the importance of continuing exchanges and cooperation at all levels. NIS reports reduced hostility in North Korea's new constitution On May 7, the National Intelligence Service (NIS) assessed that North Korea's constitutional amendments clarify the existence of two states but have significantly reduced hostility towards South Korea. Democratic Party lawmaker Park Sun-won, after a National Assembly intelligence committee meeting, reported that the NIS noted the new constitution includes a territorial clause defining areas adjacent to South Korea but does not label South Korea as an enemy or a target for military action. Iranian media claims physical action against South Korean vessel, government denies Iranian state media reported that Iran took 'physical action' against a South Korean vessel. According to Yonhap News, Press TV stated on May 6 that Iran had targeted a South Korean ship for violating newly defined maritime rules, signaling its intent to defend sovereignty. While the specific vessel was not named, it is believed to refer to the HMM Namoo. The column also claimed that the U.S. halted 'Project Freedom' not out of goodwill but due to Iran's asymmetric military deterrence and calculated responses.* This article has been translated by AI. 2026-05-08 00:02:00

Special Prosecutor Clears Kim Kwan-young of Insurrection Charges Independent candidate Kim Kwan-young received a no-charge notice from the second special prosecutor team led by Kwon Chang-young regarding insurrection charges on May 7. Kim received the notice around 6 p.m. and stated, "We received the no-charge notice via fax at the provincial office," confirming that there were no allegations of insurrection or dereliction of duty. The allegations stemmed from actions taken by the Jeonbuk provincial government during former President Yoon Suk Yeol's martial law declaration on December 3, 2024, which included closing the provincial office and cooperating with the regional martial law command. Lee Won-taek, the Democratic Party's candidate for Jeonbuk governor, had raised concerns about possible insurrection. In a press conference on May 4, Kim had stated, "If the special prosecutor indicts me, I will retire from politics," emphasizing that politicians must be accountable for their statements. He also called for Lee to take political responsibility, as Lee had promised to clarify the facts surrounding the allegations. However, some in the political sphere questioned whether the investigation was warranted based solely on the allegations. Critics argued that the provincial government's actions during the martial law should have undergone thorough legal review before a formal investigation was initiated. With the special prosecutor's no-charge decision, Kim is expected to continue his campaign for the Jeonbuk governorship.* This article has been translated by AI. 2026-05-07 23:59:52

Prosecutors Reject Arrest Warrant for HYBE's Bang Si-hyuk, Citing Incomplete Investigation Prosecutors have once again returned an arrest warrant for Bang Si-hyuk, chairman of HYBE, to the police, citing incomplete supplementary investigations regarding allegations of deceiving investors before the company's IPO. According to Yonhap News, the Seoul Southern District Prosecutors' Office rejected the police's renewed request for the warrant on May 6. Prosecutors stated, "We found that the requested supplementary investigations were not completed, leading to the warrant's dismissal." In response, the police have stated they have no further comment on the prosecutors' decision. Just six days after the initial warrant was rejected, the police refiled the request on April 30, alleging fraudulent trading under the Capital Markets Act. When the warrant was initially returned, prosecutors indicated that there was insufficient justification for the arrest at that stage, prompting the request for further investigation. After receiving the warrant back, the police conducted supplementary investigations regarding Bang's potential flight risk, evidence tampering, and recidivism, concluding that an arrest was still necessary. Bang is accused of misleading HYBE investors in 2019 by claiming there were no plans for an IPO while selling shares to a private equity fund, which later profited from the IPO. Police estimate that Bang gained approximately 260 billion won ($190 million) in illicit profits from this scheme. The Capital Markets Act prohibits obtaining financial benefits through false statements or fraudulent schemes, with penalties of life imprisonment or a minimum of five years in prison for profits exceeding 5 billion won. The police began investigating Bang in late 2024 after receiving tips, transitioning to a public investigation in mid-2025 following searches of the Korea Exchange and HYBE. In early August 2025, the police imposed a travel ban on Bang upon his return from the U.S. and summoned him for questioning five times between September and November of that year. They also froze his HYBE shares valued at approximately 156.8 billion won. Meanwhile, while the total number of cases referred last year decreased compared to 2024, the number of requests for supplementary investigations has risen, raising concerns about escalating tensions between police and prosecutors. Since the introduction of the supplementary investigation request authority in 2021, there has been an increase in back-and-forth demands for further inquiries, highlighting ongoing friction between the two agencies.* This article has been translated by AI. 2026-05-07 23:58:19