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South Korea scrambles over EU's new steel trade curbs SEOUL, October 08 (AJP) -South Korea’s government and steelmakers are rushing to respond to the European Union’s latest protectionist move on steel imports, which adds to the heavy tariffs already imposed by the United States on steel and aluminum. The EU has issued a new set of barriers that halve import quotas and double tariffs beyond those limits, the Ministry of Trade, Industry and Energy said Tuesday. Under the European Commission’s proposed tariff-rate quota (TRQ) scheme, which would replace the current safeguard mechanism, the global duty-free quota for imported steel will be cut from 30.53 million tons to 18.3 million tons, a 47 percent reduction. Imports exceeding the quota will face tariffs raised from 25 percent to 50 percent. The EU will also introduce a “melt-and-pour” standard requiring proof of the origin of steel production, aimed at blocking indirect exports through third countries. Pending legislative approval, the new TRQ system will take effect at the end of 2026 at the latest, when the current safeguards expire. Individual country quotas will be negotiated separately, affecting non-EU exporters such as South Korea, which shipped about 3.8 million tons of steel to the EU last year, 2.63 million tons under the quota and the rest via the global quota. The measure poses a double blow to Korean steel, aluminum, and downstream exporters already facing 50 percent tariffs in the U.S. market. Korea’s steel exports to the EU totaled $4.48 billion last year, nearly matching the $4.35 billion shipped to the United States, according to the Korea International Trade Association. Korean steel exports have been sliding since a 12.4 percent year-on-year drop in May, with a cumulative decline of 15.4 percent by August. The EU has pledged possible relief for countries with free trade agreements, and the Korean government plans to leverage its FTA to secure the largest possible quota share. “The EU has indicated it will consider free-trade relationships when allocating quotas,” the ministry said. Trade Minister Yeon Han-koo is expected to meet Maros Sefcovic, the EU’s executive vice president for trade, to argue Korea’s case after consultations with domestic steelmakers. The government, major producers such as POSCO and Hyundai Steel, and industry associations will convene Friday to discuss coordinated countermeasures. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-08 14:40:37 -
Prices of daily necessities rise faster than wages over past five years SEOUL, October 08 (AJP) - Data shows that the cost of living in South Korea has climbed sharply over the past five years, with food and basic consumer goods becoming noticeably more expensive while wage growth lags behind. Data released by the National Data Office on Wednesday showed that the price index for food and non-alcoholic beverages in September THIS YEAR rose 22.9 percent compared with five years earlier. The increase far exceeds the overall consumer price rise of about 14 percent during the same period. Essential items have become especially costly. Fruit prices jumped 35.2 percent, while milk, cheese, and eggs rose 30.7 percent. Bread climbed 38.5 percent, cakes 31.7 percent, and instant noodles 25.3 percent. Confectionery and sweet products also rose 27.8 percent, and coffee, tea, and cocoa were up 38.2 percent. Dining out has not been spared. The cost of restaurant meals rose 25.1 percent, pushing the broader "food and lodging" category up 24.8 percent. Analysts said rising ingredient costs and higher operating expenses have been passed directly to consumers. Other everyday expenses followed the same pattern. The category including soap, shampoo, and personal care items rose 24.1 percent, while household goods and cleaning services climbed 19.4 percent. Housing-related costs, including rent and utilities, rose 16.7 percent, and clothing and footwear increased 16.2 percent. Transportation costs, including fuel and public transit, went up 15.9 percent, while healthcare and education costs rose by smaller margins. In contrast, wages have not kept pace. According to the Ministry of Employment and Labor, South Korea's minimum wage has risen at an average annual rate of just over 5 percent from 2021 to 2025. The rate was 1.5 percent in 2021, 5.1 percent in 2022, 5 percent in 2023, 2.5 percent in 2024, and only 1.7 percent this year. The widening gap between rising consumer prices and slower wage growth underscores the strain on lower- and middle-income households. For many, everyday purchases such as bread, fruit, and coffee have become noticeably more expensive, leaving less room for savings or discretionary spending. 2025-10-08 14:03:18 -
Korean treasuries set for WGBI entry in April 2026 as planned: FTSE Russell SEOUL, October 08 (AJP) - South Korean government bonds will join the World Government Bond Index (WGBI) in April 2026 as scheduled, global index provider FTSE Russell confirmed Tuesday. The timeline, originally announced last year, had been revised from November 2025 to April 2026, triggering investor jitters over possible second thoughts about Korea’s sovereign credibility. The adjustment came just days after the Constitutional Court removed former President Yoon Suk Yeol from office for his brief imposition of martial law. The WGBI, which includes 25 major government bond markets, is the world’s largest bond index, tracking about $3 trillion in assets. Korea’s entry is expected to attract at least $56 billion in inflows, according to estimates by the National Pension Service, the country’s leading institutional investor. Korean bonds will be phased into the index over eight months from April to November next year, with “equal weighting” each month, FTSE Russell said. “We will work closely with the South Korean government, investors, and market infrastructure to ensure a smooth transition,” the index provider added. As of October 2025, Korean treasuries are projected to account for about 2.08 percent of the index, ranking ninth among sovereigns. The United States leads with 40.9 percent, followed by China with 10.1 percent and Japan with 9.2 percent. “This marks the final official review before Korea’s inclusion in April 2026,” the Ministry of Economy and Finance said in a statement. “The confirmation enhances market predictability and reaffirms confidence in Korea’s fiscal and financial soundness.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-08 11:01:57 -
K-pop girl bands Hearts2Hearts and Babymonster to make October comebacks SEOUL, October 08 (AJP) - Two of South Korea's most talked-about girl groups are returning with new albums this month. Super rookie band Hearts2Hearts from SM Entertainment and YG Entertainment's Babymonster are both preparing October comebacks, drawing attention from K-pop fans worldwide. Hearts2Hearts (H2H), which debuted in February this year with the single album "The Chase," will release its first mini-album "FOCUS" on October 20. The six-track album includes the title song of the same name and the eight-member group's June single "STYLE." Ahead of the release, H2H has been promoting "Pretty Please," a collaboration with Japan's Pokémon franchise. SM Entertainment said the album will capture the group's expanding range of stage performances. "As Hearts2Hearts' first mini-album, 'FOCUS' reflects their expanding sound and confident identity," the agency said. "Fans can also expect to see their new performances, following their rising popularity at international events and South Korean university festivals." The five-member group has gained notice for their choreography, youthful energy, and strong vocals. As SM's newest girl group, they are viewed as continuing the label’s pop-centered production style seen in acts like Red Velvet and Aespa. Ten days before H2H's comeback, YG Entertainment’s Babymonster will release its second mini-album "WE GO UP" on October 10. The album includes four tracks, led by the title song "We Go Up," a hip-hop-based track with strong rhythm, and "Psycho," known for its catchy melody. According to YG Entertainment, Babymonster's new album marks their first project since completing a 20-city world tour. "After their tour, Babymonster are returning with stronger stage experience and a more mature sound," the agency said. Babymonster, which officially debuted on April 1, 2024, with the EP "Babymons7er" and lead single "Sheesh," is YG’s first girl group since BLACKPINK. The six-member band gained early global attention through their YouTube pre-debut series and topped iTunes charts in several countries following their debut. 2025-10-08 10:57:26 -
Discount stores crowd Korea's $5 billion health supplement market SEOUL, October 08 (AJP) - The race for South Korea’s fast-growing health and dietary supplement market is intensifying as bargain retailers and convenience stores challenge traditional drugstores for a share of a wellness-driven, aging society where eight out of 10 households regularly take preventive supplements. According to Expert Market Research, Korea’s health supplement market was valued at $5.45 billion in 2024 and is projected to expand at a compound annual growth rate of 5.2 percent, reaching $9 billion by 2034. A separate survey by the Korea Health Supplements Association found 81.2 percent of Korean households purchased health supplements in 2023. The surge in both online and offline distribution channels to meet this demand is reshaping the market structure. Daiso and convenience store chains are entering the space with low-cost, easy-access options, while the Korean Pharmaceutical Association is partnering with major drugmakers to develop pharmacy-exclusive products. ] Daiso, a popular budget franchise, has teamed up with domestic drugmakers such as Daewoong Pharmaceutical, which released 26 products priced between 3,000 and 5,000 won ($3.5) for a month’s supply. Jongkundang Health also introduced its competitively priced probiotics “Lactofit Gold” line. “We offer a variety of products like vitamins and probiotics, mostly priced at 3,000 or 5,000 won,” a Daiso official said. Convenience stores are likewise expanding their shelves. Dong-A Pharmaceutical launched its “Cellparex Baro” line exclusively through CU stores, targeting single-person households with five- to ten-day packs. “We aim to provide products that address modern health concerns with immediacy and convenience,” a Dong-A representative said. The industry is closely watching how the market evolves in the latter half of the year as low-price, convenience-driven products go head-to-head with pharmacy-exclusive, trust-based brands. In response to Daiso’s push, the Korean Pharmaceutical Association signed MOUs with Yuhan Corporation and Dong-A Pharmaceutical to co-develop affordable supplements sold exclusively through pharmacies. Eight new Yuhan-made products are due by year-end, and Dong-A’s lineup will debut in October. With online availability expanding rapidly, experts are also warning of potential misuse. “With increased accessibility, improper guidance could lead to overuse or misuse,” an industry insider said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-08 09:12:57 -
Foreign Ownership of Seoul Apartments Surges, Americans Lead SEOUL, October 07 (AJP) - Americans own the most foreign-held apartments in Seoul, followed by Chinese and Canadians. According to data analyzed by Rep. Jeong Jun-ho of the Democratic Party, as of last December, Americans owned 5,678 apartments, accounting for 45.4% of the 12,516 foreign-owned units in Seoul. Notably, 63% of American-owned apartments are in the 'Han River Belt,' including Gangnam, Seocho, Songpa, Mapo, Yongsan, Seongdong, and Gwangjin. In Gangnam alone, Americans own 2,228 units, while Mapo, Yongsan, Seongdong, and Gwangjin account for 1,348 units. By district, Gangnam has 1,028 units, Seocho 742, and Songpa 458. Chinese nationals own 2,536 units, mainly in Guro (610), Yeongdeungpo (284), Dongdaemun (150), and Geumcheon (138), with 159 in Gangnam. Canadians own 1,831 units, followed by Taiwanese (790), Australians (500), and British, French, and Germans (334). New Zealanders own 229, and Japanese 220. An official from the Korea Construction Policy Institute noted a dual trend in foreign housing transactions: investment in high-priced areas like Gangnam and Seocho, and real demand in areas like Guro and Incheon. Rep. Jeong highlighted that many foreign owners in the Han River Belt are believed to be 'black-haired foreigners,' with 40% of 49 foreigners investigated by the National Tax Service being of Korean descent. He emphasized the need for balanced policies to protect foreign residents' rights while curbing speculative real estate purchases. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-07 15:40:00 -
China's No. 2 official to visit Pyongyang for party anniversary as Xi skips trip SEOUL, October 07 (AJP) - Although Chinese President Xi Jinping will not visit North Korea this week, Beijing's decision to send Premier Li Qiang — the country's No. 2 official — to Pyongyang for the 80th anniversary of the Workers' Party of Korea is being seen as a clear sign of strengthening ties between the two neighbors. The move marks a noticeable upgrade from the 2015 celebrations, when China sent Liu Yunshan, then fifth in the Communist Party hierarchy. Both North Korean and Chinese state media confirmed on Monday that Li will lead a senior delegation of party and government officials to Pyongyang from October 9 to 11. North Korea's Korean Central News Agency (KCNA) said the visit, made at the invitation of the Central Committee of the Workers' Party of Korea and the North Korean government, will be an "official goodwill visit." China's Foreign Ministry said Li will attend the anniversary celebrations and meet senior North Korean officials during his stay. His trip will be the highest-level Chinese presence in Pyongyang since Xi's own state visit in 2019, signaling Beijing's renewed willingness to show support for North Korea while avoiding a personal appearance by Xi himself. The decision to send Li reflects a visible warming of relations between Beijing and Pyongyang after several years of limited contact. Kim Jong-un's visit to Beijing in early September for China's "Victory Day" military parade — his first trip to China in five years — helped reopen high-level dialogue between the two sides. Speculation about a possible Xi visit had circulated for weeks after North Korean Foreign Minister Choe Son-hui met Chinese Foreign Minister Wang Yi in Beijing late last month. The two officials agreed to deepen cooperation following Kim's attendance at the Chinese parade, which many analysts viewed as a symbolic step toward restoring ties. Xi is expected to travel to Gyeongju, South Korea, later this month to attend the Asia-Pacific Economic Cooperation (APEC) summit, where he is likely to hold his first face-to-face meeting with U.S. President Donald Trump since the start of Trump's second term. Other socialist nations are also sending senior representatives to Pyongyang for the October 10 anniversary. Vietnam's Communist Party General Secretary To Lam and Lao President Thongloun Sisoulith are expected to attend, while Russia will send Dmitry Medvedev, deputy chair of its Security Council and a close ally of President Vladimir Putin. 2025-10-07 14:29:19 -
Creativity and farsightedness, key to global IB outreach: SK Securities global chief SEOUL, October 06 (AJP) - Abundant investment opportunities lie in diverse global markets when matched with Korea’s high-tech, manufacturing, and soft-power competitiveness, said Patrick Han, head of Global Business at SK Securities. "Identifying needs before demand arises and aligning them with Korean capital is the path forward for Korean investment banking," Han told AJP in an exclusive interview, highlighting that Korea’s financial sector lags far behind its industrial peers. While Korean manufacturers dominate global markets in semiconductors, batteries, shipbuilding, and culture, Korean financial institutions still rank below even some Southeast Asian peers, Han noted, blaming the weakness on a complacent focus on traditional corporate financing at home and a lack of bold overseas outreach. "Korean IB evolves around large companies, and such an inward approach acts as a constraint. The blue ocean lies in global finance," he said. He added that Korea’s IB culture of chasing quick returns is why domestic names remain absent from multi-billion-dollar international government procurements and public projects that demand long-term commitment. Han is steering SK Securities toward large-scale, strategic projects. His office is advising Lithuania’s finance ministry, brokering the sale of a major Indonesian bank, investing in a Southeast Asian hospital group, and exploring a food-security zone project in the region. It is also working on a cross-investment venture between a U.S. consortium and Korean shipbuilders in the maintenance, repair, and overhaul (MRO) sector. With 25 years of international banking experience—including stints at JPMorgan, RBS, and CGS-CIMB—Han has been reshaping SK Securities’ Global Business Division since taking charge last year. "As head of Global Business, I cover the entire spectrum — trading, brokerage, corporate finance, and wealth management. Our priorities center on inbound deals, outbound deals, and offshore transactions," he said. Inbound and outbound deals will be the division’s main focus this year, while offshore business will expand gradually. Han applies a differentiated approach to each market. The United States poses as the most strategic market, rich with M&A, licensing, and real estate opportunities. "Advanced manufacturing, semiconductors, AI, shipbuilding, defense, and nuclear energy are the most promising sectors," he said. He has already organized a Korean roadshow for Primary Wave, the world’s largest music IP investment firm, and helped raise funds for LA Golf Partners. Asia is a diverse, fragmented landscape. Southeast Asia will serve as the hub for M&A and consumer industry investments, particularly K-content, cosmetics, and knowledge services. India offers potential in manufacturing and finance, while China’s reopening hinges on political and regulatory shifts. In Japan, Korean SMEs can leverage ultra-low financing by pairing Japanese capital with Korean technology. Drawing on his long regional experience, Han sees selective opportunities in the GCC states. "The region is not as cash-rich as before, so projects must be chosen carefully," he cautioned. Korea’s track record in construction and energy gives it an edge. Han emphasizes cultural fluency alongside financial acumen. Sixteen years in the U.K. taught him that understanding local codes of business and culture is as critical as market data. His humanistic approach blends creativity with finance. At a recent Seoul event hosted by Indonesia’s Ministry of Tourism, he proposed building retirement "silver towns" for Koreans instead of traditional resorts, while linking Korean healthcare to wealthy Southeast Asian clients. On market outlook, Han expects global markets to take a breather after this year’s bull runs, particularly on Wall Street. Still, he forecasts select Korean sectors — notably AI, semiconductors, defense, shipbuilding, and nuclear — will sustain long-term momentum into next year. 2025-10-07 13:49:10 -
Hwang You-min rises to world No. 33 after Hawaii LPGA win SEOUL, October 07 (AJP) - South Korean female golfer Hwang You-min climbed to 33rd in the world rankings after capturing her first Ladies Professional Golf Association (LPGA) Tour title at the Lotte Championship in Hawaii, securing a direct entry to the U.S.-based circuit. In the latest Women's World Golf Rankings released Tuesday, Hwang jumped 20 spots from 53rd to 33rd following her victory at Hoakalei Country Club in Oahu on Sunday. The 22-year-old carded a final-round 5-under 67 to finish at 17-under 271 overall, edging out compatriot Kim Hyo-joo and becoming the sixth South Korean player to win on the LPGA Tour this year. The win, achieved through a sponsor’s invitation from her main backer Lotte, earned her $450,000 in prize money and a full LPGA Tour membership. Under LPGA rules, Hwang can either begin her U.S. career immediately or defer her status until the start of the 2026 season. Before her breakout in Hawaii, Hwang had already established herself as one of the most promising players on the Korea Ladies Professional Golf Association (KLPGA) Tour. She joined the KLPGA in 2023 and captured two titles within her first two seasons. Known for her calm temperament and precise iron play, she quickly built a reputation as one of the most consistent young players on tour. Born in 2003, Hwang began playing golf as a child and represented South Korea internationally as an amateur before turning professional. Her strong fundamentals and level-headed style have drawn comparisons to veteran Kim Hyo-joo, who finished runner-up at the same event. The Lotte Championship victory also boosted the global standing of South Korean golf, which continues to be a dominant force in women’s golf. Kim Hyo-joo moved up one place to eighth in the world rankings, Yoo Hae-ran stayed at 13th, and Ko Jin-young climbed three spots to 18th. Kim Min-sol, who won last week’s KLPGA Dongbu Construction–Korea Land & Housing Championship, rose 43 places to 75th. Hwang’s path now mirrors that of several South Korean players who made their names on the LPGA Tour, including Pak Se-ri, Park In-bee, and Shin Ji-yai. 2025-10-07 12:13:17 -
Kang Kyung-hwa takes post as South Korean ambassador to Washington, vows stronger alliance SEOUL, October 07 (AJP) - Kang Kyung-hwa, South Korea's new ambassador to the United States and former foreign minister under the Moon Jae-in administration, began her first day of official duties on Monday (local time), pledging to reinforce the South Korea–U.S. alliance through what she called "pragmatic diplomacy centered on national interest." At her inauguration ceremony held at the South Korean Embassy in Washington, Kang said the Lee Jae Myung government will continue to uphold a people-centered approach to diplomacy. "Our government is a people-sovereignty administration that places citizens at the center of all policies, pursuing democracy, common sense, and pragmatism to improve people's lives," she said. "That philosophy will also carry over to diplomacy." Kang said South Korea will pursue a flexible and practical foreign policy to respond to growing global challenges. "There are many complex challenges in the world, but our government will respond swiftly through pragmatic diplomacy that puts national interests first. At the core of that diplomacy lies the South Korea–U.S. alliance," she said. She emphasized that the alliance has evolved over the past seven decades from a traditional military partnership into what she described as a "comprehensive strategic alliance" built on three main pillars: security, economy, and advanced technology. "We will continue to build on that foundation and strengthen it further," she said. Kang, who served as South Korea's first female foreign minister from 2017 to 2021, is known for her negotiation skills and steady, principled approach to diplomacy. Her appointment to Washington is seen as a signal that the Lee administration is seeking to stabilize ties with Washington through experienced leadership as regional dynamics shift ahead of major international summits. Earlier in the day, Kang visited the White House Guest House, where she met Monica Crowley, Chief of Protocol at the U.S. State Department, and presented a copy of her credentials — a process completed just two days after her arrival in Washington on October 4, which the embassy described as unusually swift. Kang said she intends to serve as "a bridge of communication" between the two governments ahead of U.S. President Donald Trump's visit to South Korea for the Asia-Pacific Economic Cooperation summit at the end of the month. "As ambassador on the front line of South Korea–U.S. diplomacy, I will do my utmost to ensure that the relationship continues to move forward in all areas, including President Trump's upcoming visit," she said. Crowley congratulated Kang on her appointment and said Washington would "make every effort to coordinate closely on all bilateral issues, including preparations for President Trump's visit." The South Korean Embassy said the prompt delivery of credentials underscored both the significance and urgency of Kang's appointment, highlighting Seoul's commitment to close coordination with Washington ahead of key diplomatic events this month. 2025-10-07 10:07:07