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Korea faces 12.5% tariff under new U.S. Section 301 SEOUL, July 24 (AJP) -South Korean exports to the United States will effectively face a tariff floor of 12.5 percent under President Donald Trump's new Section 301 action targeting imports linked to forced labor, but Seoul avoided being placed in the blanket tariff category after Washington cited its bilateral trade agreement with Korea. Trump on Thursday signed a memorandum directing the U.S. Trade Representative to impose tariffs of 10 percent to 12.5 percent on imports from 60 trading partners following Section 301 investigations into whether they failed to prohibit or effectively enforce bans on imports made with forced labor. The measures took effect at 12:01 a.m. Friday, immediately replacing the temporary 10 percent global tariff imposed under Section 122 of the Trade Act after the Supreme Court struck down Trump's reciprocal tariffs earlier this year. Rather than imposing a flat 12.5 percent tariff on Korean goods, however, the White House created a separate category for South Korea, Japan and Switzerland. Under the presidential memorandum, products from South Korea whose existing most-favored-nation (MFN) tariff is below 12.5 percent will be subject to an additional Section 301 duty sufficient to raise the total tariff to 12.5 percent. Products already facing MFN duties of 12.5 percent or higher will pay no additional Section 301 tariff. The White House said capping the total duty at 12.5 percent was "feasible, consistent with the terms of the Agreements on Reciprocal Trade or similar arrangements," and was intended to encourage Korea and the other economies to fulfill commitments on forced-labor import prohibitions. That treatment differs from the majority of economies investigated under Section 301, which were assigned either a flat 10 percent or flat 12.5 percent tariff. South Korea therefore avoided being classified among countries that failed outright to adopt forced-labor import prohibitions, while also avoiding an across-the-board additional tariff. Seoul dispatched Trade, Industry and Energy Minister Kim Jung-kwan to Washington ahead of the announcement, coinciding with the launch of the Korea-U.S. Shipbuilding Partnership Center, to advance the "Make American Shipbuilding Great Again" (MASGA) initiative — the centerpiece of South Korea's proposed $350 billion investment package under the bilateral trade and tariff agreement. The White House memorandum followed USTR's final determination that the acts, policies and practices of all 60 investigated economies were unreasonable and burdened U.S. commerce. The investigations concluded that the economies had either failed to prohibit or failed to effectively enforce bans on imports produced with forced labor. The USTR fact sheet described the action as applying to the top 60 U.S. trading partners accounting for 99.4 percent of U.S. imports, calling it the "most sweeping international labor rights action" ever undertaken by the United States. "The United States is the only country in the world to adopt, and effectively enforce, a ban on imports made with forced labor," USTR said, urging trading partners to adopt comparable restrictions. The memorandum also provides broad product exemptions. Products already subject to Section 232 national security tariffs, including steel and aluminum, are excluded from the new duties, as are informational materials, donations and accompanied baggage. Additional exemptions cover raw materials that could create domestic supply shortages, products whose tariffs could disrupt the U.S. economy, goods unavailable from alternative suppliers, and products whose exemption would better encourage trading partners to adopt forced-labor import bans. The accompanying 55-page Annex modifies the Harmonized Tariff Schedule of the United States by creating country-specific tariff headings. For South Korea, it establishes two separate tariff codes: one for products already subject to MFN tariffs of at least 12.5 percent, which receive no additional duty, and another for products with MFN tariffs below 12.5 percent, which are subject to a Section 301 duty bringing the total tariff to 12.5 percent. The Annex makes the changes effective for goods entering the United States from 12:01 a.m. Eastern Time on July 24. The White House said the structure preserves reciprocal trade arrangements while maintaining pressure on trading partners to strengthen enforcement against forced-labor imports. For South Korea, it means many exports will continue to face an overall tariff burden capped at 12.5 percent rather than a blanket additional duty, although Seoul still faces the prospect of further U.S. tariffs from a separate Section 301 investigation into structural excess capacity later this year. 2026-07-24 08:09:14 -
Hanwha Ocean Advances Joint Development of U.S. Naval Vessels Hanwha Ocean is solidifying its position as a leader in promoting joint growth in the Korea-U.S. shipbuilding industry by establishing collaborative relationships with key partners in the United States, encompassing vessel design and development, workforce training, and supply chain development.On July 23, during the opening ceremony of the 'Korea-U.S. Shipbuilding Cooperation Center' in Washington, D.C., Hanwha Ocean announced the signing of contracts for the design and development of a Global Fast Sealift vessel, along with two memorandums of understanding (MOUs) aimed at workforce training and supply chain development in the shipbuilding sector.Hanwha Ocean has entered into a 'professional services contract' with Leidos Gibbs & Cox, a renowned name in vessel design, for the joint design of the Global Fast Sealift. This agreement marks a significant step forward from the MOU signed in April, which focused on enhancing naval shipbuilding capabilities for the U.S. and allied nations.Through this contract, the two companies will commence joint design efforts for the Global Fast Sealift, promoting collaborative technology development and establishing a cooperative framework to ensure design quality. This partnership aims to combine Hanwha Ocean's shipbuilding capabilities with the design and engineering expertise of Leidos Gibbs & Cox, which has designed over 70% of U.S. Navy surface vessels since World War II, to present a reliable and validated platform to the U.S. and global markets.Additionally, Hanwha Ocean signed an MOU with Hanwha Philadelphia Shipyard and Delaware County Community College to collaborate on shipbuilding technology education and development. This initiative aims to respond to the demand for skilled labor in the U.S. shipbuilding industry by developing instructor training programs.Delaware County Community College, located in eastern Pennsylvania, is a two-year institution that provides workforce training and technical education programs to the local community. It participates as a technical training institution linked to the apprenticeship program operated by Hanwha Philadelphia Shipyard, offering job-related theoretical education to apprentices.Furthermore, Hanwha Ocean has signed an MOU with Hanwha Philadelphia Shipyard, the Philadelphia Chamber of Commerce, and the Philadelphia Growth Partnership to enhance supply chain cooperation in the shipbuilding industry. This collaboration aims to identify local shipbuilding supply chains and build a regional shipbuilding ecosystem, seeking to strengthen the supply chain in the U.S. and expand the production capacity of Hanwha Philadelphia Shipyard.Jung In-seop, head of Hanwha Ocean's management support division, stated, "Hanwha Ocean is fully prepared to contribute to the revitalization of the U.S. shipbuilding industry and the advancement of the Korean shipbuilding sector. We will expand collaboration in areas where the U.S. has the greatest need, becoming a key driver of the MASGA project."MASGA is a Korea-U.S. shipbuilding cooperation initiative inspired by former President Donald Trump's 'MAGA' slogan, representing a $150 billion project for the revitalization and investment in the U.S. shipbuilding industry.* This article has been translated by AI. 2026-07-24 08:04:00 -
Turkish Airlines and Malta Tourism Board Strengthen Focus on Korean Market Turkish Airlines, the airline serving the most countries worldwide, and the Malta Tourism Board are enhancing their focus on the Korean market by increasing engagement with domestic travelers.On July 23, Turkish Airlines and the Malta Tourism Board jointly hosted a 'Media Day' for major domestic media at the Courtyard Marriott Seoul Myeongdong.The event aimed to promote the Incheon-Istanbul-Malta route and the convenience of transfers at Istanbul Airport, while also showcasing Malta's cultural, natural, and culinary tourism resources.Attendees included Endo Shingo, the head of the Malta Tourism Board's Japan-Korea office, and Ilker Basaran, the country manager for Turkish Airlines in Korea, who delivered welcoming remarks.Malta's 7,000-Year History Meets Demand for Individual and Experiential TravelThe Malta Tourism Board presented its tourism resources, including UNESCO World Heritage sites such as megalithic temples with a history of approximately 7,000 years, Mediterranean landscapes, gourmet experiences, luxury travel, and marine activities. The board also introduced tourism content tailored to the growing demand among Korean travelers for individual and experiential travel.Following this, Turkish Airlines explained its flight route from Incheon to Malta via Istanbul and highlighted the transfer system at Istanbul Airport, emphasizing connectivity to Malta and major European cities based on its global network. During a networking session that followed, participants discussed the outlook for the Maltese tourism market, European travel trends, and potential collaboration between the two organizations.Daily Flights to Malta via IstanbulTurkish Airlines operates as a global airline connecting Europe, the Middle East, and Africa, with Istanbul as its hub. Currently, it offers two daily flights to Malta via Istanbul, providing convenient connections for passengers traveling from Korea to Malta and other major European cities.Recently, the airline was recognized for having the 'World's Best In-Flight Meal' by AirlineRatings and won the 'Best In-Flight Meal in Europe' at the 2026 APEX Best Airline Awards.Founded in 1933 with five aircraft, Turkish Airlines is now a member of the Star Alliance and operates a fleet of 556 passenger and cargo aircraft. It serves 358 destinations in 133 countries worldwide, including 305 international and 53 domestic routes.* This article has been translated by AI. 2026-07-24 07:52:00
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Washington keeps Seoul on FX watchlist, backs KRW stabilization actions SEOUL, July 24 (AJP) -The United States kept South Korea on its currency monitoring list on Thursday, saying the country continued to run large external surpluses while acknowledging Seoul's intervention to curb excessive volatility in the won and its efforts to further liberalize the foreign exchange market. The U.S. Treasury again designated South Korea as a currency monitoring country in its semiannual report to Congress on the macroeconomic and foreign exchange policies of major trading partners, alongside China, Japan, Taiwan, Singapore, Vietnam, Germany, Ireland, Switzerland and Thailand. All 10 economies were also included in the previous report released in January. The Treasury did not designate any major U.S. trading partner as a currency manipulator. South Korea remained on the monitoring list because it continued to meet two of the Treasury's three criteria for enhanced analysis: a current account surplus exceeding 3 percent of gross domestic product and a goods and services trade surplus with the United States of more than $15 billion. It did not meet the third criterion of persistent, one-sided foreign exchange purchases, as authorities were net sellers of dollars during the review period. The Treasury generally keeps economies that meet two of the three criteria on the monitoring list for at least two consecutive reports to ensure that improvements are sustained. According to the report, South Korea's current account surplus widened to 6.6 percent of GDP, or $123 billion, in 2025 from 5.3 percent a year earlier, reflecting strong exports led by semiconductors and other technology products. Its goods and services surplus with the United States narrowed to $45 billion from $54 billion in 2024 as U.S. imports of Korean products, particularly automobiles, declined, but remained well above the Treasury's monitoring threshold. The Treasury said Korean authorities sold a net $28 billion in foreign exchange, equivalent to 1.5 percent of GDP, during 2025 to slow the won's depreciation, with about $22.5 billion of the intervention taking place in the fourth quarter. It assessed the intervention as aimed at smoothing excessive volatility amid depreciation pressure on the won rather than securing a competitive trade advantage. The report said the won's appreciation against the dollar was concentrated in the final trading sessions of 2025, strengthening 2.6 percent from 1,481 won per dollar on Dec. 23 to 1,445 won on Dec. 31 amid heavy reported intervention by Korean authorities. Depreciation deepened this year. After floating above 1,500 won in June, the dollar has come down to 1,476.5 won Friday. Referring to its Jan. 14 statement, the Treasury reiterated that the recent depreciation pressure on the won was not consistent with South Korea's strong economic fundamentals and stressed that excessive volatility in the foreign exchange market was undesirable. The Treasury also gave a positive assessment of Seoul's foreign exchange market reforms. "Authorities are making progress in reducing restrictions on foreign investor participation in onshore foreign exchange markets," the report said, adding that the measures "should help liquidity and price discovery in local markets over the medium term." It also noted a bilateral understanding under which South Korea has begun sharing monthly information on foreign exchange intervention with the United States and publishing additional reserve data in line with International Monetary Fund standards. The Treasury's monitoring framework is based on three criteria: a bilateral goods and services surplus with the United States of at least $15 billion, a current account surplus of at least 3 percent of GDP and persistent, one-sided net foreign currency purchases totaling at least 2 percent of GDP over a 12-month period. No major U.S. trading partner met all three criteria during the latest review period, the Treasury said, concluding that none manipulated its currency to gain an unfair competitive advantage. 2026-07-24 07:45:19 -
Nasdaq Drops 2.15% as Alphabet and Tesla Shares Plunge; Oil Prices Exceed $100 The three major U.S. stock indices fell sharply, led by significant declines in shares of Alphabet and Tesla, as rising international oil prices and U.S. Treasury yields dampened investor sentiment in the tech sector.On July 23, the Dow Jones Industrial Average closed down 506.93 points (0.97%) at 51,711.65. The S&P 500 dropped 90.66 points (1.21%) to finish at 7,408.30, while the tech-heavy Nasdaq Composite plummeted 553.21 points (2.15%) to close at 25,137.69.Alphabet and Tesla were the primary drivers of the market decline.Alphabet, Google's parent company, reported second-quarter earnings that exceeded market expectations. However, concerns over the financial burden of its substantial investments in artificial intelligence (AI) led to a 7% drop in its stock price. The company also raised its capital expenditure forecast to as much as $200 billion, increasing investor caution.Tesla's stock fell 14.5% after its second-quarter results fell short of market expectations, coupled with worries about cash flow deterioration due to expanded investments in AI and robotics.The sharp declines in these two stocks contributed to a 5.20% drop in the S&P 500's communication services sector and a 5.12% decline in consumer discretionary stocks. On the New York Stock Exchange, the number of declining stocks outnumbered advancing stocks by nearly three to one.Rising international oil prices also added pressure to the stock market. Amid escalating military tensions in the Middle East, Brent crude oil surged 7% to close at $100.69 a barrel, surpassing the $100 mark for the first time since May. West Texas Intermediate (WTI) crude also jumped 6.2% to $92.19 a barrel.Concerns over potential disruptions to oil supply grew after Yemen's Iran-aligned Houthi rebels attacked a Saudi oil tanker in the Red Sea, and ongoing military clashes between the U.S. and Iran continued.The rise in oil prices raised fears of renewed inflation, leading to a spike in U.S. Treasury yields. The yield on the 10-year Treasury note reached as high as 4.7% during trading, marking its highest level since January 2025. Rising interest rates tend to lower the present value of future earnings, placing a heavier burden on growth and tech stocks.In contrast, defense stocks performed well. Lockheed Martin raised its earnings outlook for the year, resulting in a 10.5% increase in its stock price, while RTX rose 7.3%. Consequently, the S&P 500 industrials sector gained 1.77%, the highest increase among the 11 sectors.Semiconductor stocks experienced relatively limited declines, with the Philadelphia Semiconductor Index falling 0.5%. Texas Instruments provided a revenue forecast that exceeded market expectations, yet its stock fell 3%.After the market closed, Intel reported second-quarter earnings that surpassed expectations, along with a positive outlook for the third quarter. The company posted a 25.4% year-over-year increase in revenue to $16.13 billion, with adjusted earnings per share (EPS) of 42 cents. Following the earnings announcement, Intel's stock rose in after-hours trading.* This article has been translated by AI. 2026-07-24 07:36:00
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Hanwha Eagles' Hah Joo-seok traded to KIA Tigers; Lee Hyung-beom joins Hanwha Hanwha Eagles infielder Hah Joo-seok will don the KIA Tigers uniform. According to a report from Yonhap News on July 23, the two teams announced in a press release that they have completed a player trade. KIA stated, "Hah Joo-seok is a versatile player capable of playing second base and shortstop, and we expect his extensive first-team experience will contribute to our team's strength." KIA highly values Hah's offensive capabilities, which led to the agreement on the trade. Hah, a franchise player for Hanwha, recorded a batting average of .297 in 95 games during the 2025 season. This season, he has struggled with a .256 average in 27 first-team games but has performed well in the Futures League, hitting .327 in 32 games. Meanwhile, Hanwha selected Lee Hyung-beom to bolster their pitching staff. The Eagles explained, "This trade was conducted to strengthen our bullpen and address redundancy in the infield positions." Hanwha General Manager Son Hyuk stated, "Lee Hyung-beom is a veteran pitcher with closing experience, and recent data shows that his velocity and the movement of his two-seam fastball are impressive." Lee, who joined KIA in 2024 after stints with the NC Dinos and Doosan Bears, has posted a 3.00 ERA in 19 games this year without a win or loss.* This article has been translated by AI. 2026-07-24 07:32:00
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Korea and U.S. launch shipbuilding center to drive MASGA SEOUL, July 24 (AJP) -South Korea and the United States on Thursday launched a shipbuilding cooperation center in Washington to facilitate the planned US$150 billion investment in the U.S. shipbuilding sector that Seoul committed to under last year's bilateral trade and investment agreement. Senior government officials, lawmakers and industry executives from both countries attended the opening of the Korea-U.S. Shipbuilding Partnership Center (KUSPC), which will serve as the operational hub for the "Make American Shipbuilding Great Again" (MASGA) initiative aimed at rebuilding America's shipbuilding industry. The launch came just two months after Seoul and Washington signed a memorandum of understanding in May to establish the center as part of a broader bilateral shipbuilding partnership. Industry Minister Kim Jung-kwan called the center a symbol of South Korea's "strong" commitment to supporting the revival of the U.S. shipbuilding industry. "Korea strongly supports President Trump's maritime action plan. We are ready to work side by side with the U.S. Today is the beginning of a new chapter -- a new chapter for our shipbuilding industry, a new chapter for our maritime partnership and a new chapter for our alliance," he said. At the heart of that new chapter is the MASGA initiative, which Kim described as a "bold" vision to strengthen America's shipbuilding capabilities, maritime power and regional economies. "Korea is ready to be America's strongest partner in making this vision real," he said. "Together with (Commerce) Secretary (Howard) Lutnick and our U.S. colleagues, we will deliver results. We will build naval vessels. We will build LNG carriers and we will build them here in America." Kim said Korean companies are already developing projects to acquire, expand and modernize shipyards across the United States, while Korean financial institutions will work together to support the investment initiative. He also called on Washington to provide sustained ship orders, investment incentives and regulatory support to ensure the successful execution of the $150 billion shipbuilding cooperation program. Commerce Secretary Howard Lutnick stressed that the partnership would ultimately be judged by tangible industrial output rather than diplomatic symbolism. "The center is not an outcome. It is the most important work that produces the outcome of how many ships that are built," he said. "Talking is not a thing. It sets the stage, but the reality is (that) it is vital for America to produce ships in America. Not talk about producing ships in America, not having meetings about ships in America, but actually building ships in America." Lutnick said the Trump administration would evaluate the center by the amount of capital deployed, facilities modernized, workers trained, supply chains established and, ultimately, the number of ships built in the United States through bilateral cooperation. He also pledged Washington's support in removing regulatory obstacles facing Korean companies investing in the United States. "We are committed to removing barriers to production," he said. "If, when you are building and bumping into roadblocks, or you are feeling that the environment is not completely embracing of you, call the Department of Commerce. We will clear the regulatory roadblocks for you to build in America." Among the prominent attendees was newly confirmed U.S. Ambassador to South Korea Michelle Steel, who described the initiative as evidence that the alliance is expanding into a "new" and "important" area of industrial cooperation. "What we have discussed today is proof that our alliance is expanding into a new, incredibly important territory: the vitalization of the American industry, including in shipbuilding," she said. "This undertaking is part of a much larger vision -- one in which Korea's investment in American manufacturing, shipbuilding and strategic sectors works (for) a fair, reciprocal and resilient trade relationship between our two nations." South Korea's Ambassador to the United States Kang Kyung-wha called the launch of the KUSPC "a major milestone" and the starting point for building "a safe, resilient and trusted joint maritime industrial ecosystem." "To this day and into the future, ship production, maintenance and repair remain critically important for national security, global trade and economic stability," she said. "That is why the opening of the KUSPC is such a uniquely important milestone." The Defense Acquisition Program Administration (DAPA) said it will seek new opportunities for bilateral cooperation in naval shipbuilding and support Korean companies seeking to join U.S. shipbuilding and defense supply chains. During the ceremony, the two countries signed 15 memorandums of understanding covering four areas: establishing "Team Korea" to promote joint growth of the two countries' shipbuilding industries, strengthening supply-chain cooperation, expanding workforce training and pursuing joint technology development. Team Korea brings together KUSPC, HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries, the Korea Offshore & Shipbuilding Association (KOSHIPA) and the Korea Research Institute of Ships & Ocean Engineering (KRISO). The Industry Ministry also announced a five-year joint research and development program worth 120 billion won (about $80 million), under which Korean and U.S. companies and research institutions will collaborate on eight projects including AI-assisted ship design, autonomous welding, shipyard automation, intelligent heavy-block transport, smart manufacturing and autonomous navigation technologies. Based in Washington, the KUSPC will serve as the local command center for the MASGA initiative, coordinating productivity consulting for U.S. shipyards, workforce training, technology cooperation and investment projects while helping Korean companies work with U.S. federal and state authorities, shipyards and industry partners as the two countries seek to translate their shipbuilding partnership into commercial production. 2026-07-24 07:23:11 -
Financial Commission Expands Audit Opportunities for Mid-Sized Firms The Financial Commission is set to expand audit opportunities for mid-sized accounting firms with strong audit quality, while mandating major firms to establish external expert-led audit quality oversight bodies as part of a reform of the accounting and auditing system.On July 24, the Financial Commission announced a proposed amendment to the 'Regulations on External Audits and Accounting.' This amendment follows the 'Measures to Enhance Accounting and Audit Quality' announced in February, aiming to provide incentives for high-quality accounting firms and strengthen internal quality control systems at large firms.First, the compensation system for firms with excellent audit quality will be enhanced. Previously, accounting firms were categorized into groups A to C based on the number of certified public accountants and their liability capacity, allowing only group A firms to conduct audits for large listed companies. This structure has drawn criticism for making it difficult for mid-sized firms with strong audit quality to audit large companies.In response, the Financial Commission plans to double the liability capacity requirements and introduce a new 'group elevation exception.' Mid-sized firms that achieve top-tier scores in audit quality evaluations will be allowed to audit companies with asset sizes permitted for higher groups. However, to audit these higher-tier companies, they must secure liability capacity of at least 150% of the standard for that group.For example, if a group B firm scores 95% or higher compared to the average score of group A and ranks within the top 20% of group B while maintaining liability capacity above 150% of group B standards, it will be designated as an exception group A firm and can audit companies with assets ranging from 2 trillion to 5 trillion won.The method for calculating auditor scores will also be improved. The current system, which only allows for a maximum 10% bonus based on quality evaluation results, will be revised to include a potential 10% penalty and introduce relative evaluations by group to widen the score differences based on audit quality.For major accounting firms, the Financial Commission will establish an external expert-led audit quality oversight system. It will require group A firms auditing large listed companies to set up an independent 'Audit Quality Oversight Committee.'This committee must consist of a majority of independent external experts, including the chairperson. Their role will be to monitor whether the management of accounting firms is neglecting audit quality for profitability reasons and to oversee key related decisions in advance. The Financial Commission is also considering expanding this oversight system to all registered auditors for listed companies in the medium to long term after evaluating its operational performance.Additionally, the requirements for the CEO and the director responsible for quality control of registered auditors will be revised. Going forward, the CEO must have at least seven years of experience in external audits, while the quality control director must have at least five years. Previously, the CEO only needed to meet a 10-year experience requirement in accounting or external audits, which allowed individuals without external audit experience to qualify based solely on accounting advisory experience.The Financial Commission will announce the proposed changes for public comment from today until September 2, after which it will be finalized and implemented following approval from the Securities and Futures Commission and the Financial Commission.* This article has been translated by AI. 2026-07-24 07:00:00
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Intel Reports Strong Q2 Earnings Driven by AI Server Demand Intel, the American semiconductor company, reported second-quarter earnings that significantly exceeded market expectations, driven by increased demand for central processing units (CPUs) for artificial intelligence (AI) data centers. The company also provided a positive outlook for its third-quarter performance, leading to a nearly 10% surge in its stock price in after-hours trading.On July 23, Intel announced that its revenue for the second quarter reached $16.128 billion, a 25.4% increase from the same period last year, far surpassing the market forecast of $14.42 billion.Excluding one-time costs, the adjusted earnings per share (EPS) stood at 42 cents, double the market expectation of 21 cents. The adjusted net income was $2.197 billion, a turnaround from a loss in the same quarter last year.The adjusted gross margin, which is revenue minus production costs, was 41.8%, exceeding the market estimate of 38.8%.However, under Generally Accepted Accounting Principles (GAAP), Intel reported a net loss of $11.033 billion. This was influenced by a $12.529 billion accounting loss related to the value of Intel shares held under a contract with the U.S. government. This loss reflects changes in stock value and does not represent actual cash outflow. The operating income, which reflects the company's core performance, was $1.796 billion, a recovery from a loss in the same quarter last year.The improvement in performance was driven by the data center and AI business, which generated $6.262 billion in revenue, a 59% increase year-over-year. Operating income for this segment rose nearly fourfold to $2.474 billion, attributed to the growing demand for server CPUs as AI services expand.Revenue from semiconductors for PCs and internal data processing increased by 13% to $8.877 billion. Although product sales volume declined, the overall revenue grew due to a higher proportion of sales from premium products.Intel's foundry business revenue rose 31% to $5.765 billion, with operating losses reduced by over $1 billion to $2.089 billion compared to the same period last year. This foundry revenue includes internal transactions from other Intel divisions.Looking ahead, Intel forecasts third-quarter revenue between $15.8 billion and $16.8 billion. The midpoint of $16 billion significantly exceeds the market estimate of $15.1 billion. The adjusted EPS forecast is also higher at 38 cents, compared to the market expectation of 27 cents.To meet the rising demand for AI semiconductors, Intel plans to increase its capital investment for the year from $18 billion to $20 billion, focusing on expanding production equipment, factory facilities, and semiconductor substrate production capacity.Intel CEO Pat Gelsinger stated, “AI is driving unprecedented demand for computing. We will secure growth opportunities in CPUs, custom semiconductors, semiconductor assembly technology, and our foundry business.”* This article has been translated by AI. 2026-07-24 06:56:00
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U.S. Imposes 12.5% Tariff on South Korea for Forced Labor Violations The Trump administration is imposing additional tariffs of 10% to 12.5% on 60 trading partners, including South Korea, due to inadequate measures to prevent the import of products made with forced labor. South Korea will face a 12.5% tariff.According to the U.S. Trade Representative (USTR) and the Associated Press, the tariffs will take effect at 12:01 a.m. Eastern Time on July 24.The USTR has established a system to ban the import of forced labor products but decided to apply a 10% tariff to countries with insufficient enforcement and a 12.5% tariff to those lacking adequate regulations.South Korea, along with Japan, has been included in the 12.5% tariff category. The USTR determined that South Korea has not implemented sufficient systems and enforcement to effectively block imports of products made with forced labor.This 12.5% tariff is an additional charge on top of existing tariffs. However, it will not apply to products subject to separate tariffs, such as automobiles and steel, as well as certain exempt items. Not all South Korean products will incur a uniform 12.5% increase.This action effectively replaces the 10% global tariff that is set to expire on the same day.In February, the U.S. Supreme Court ruled that the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were illegal. In response, the Trump administration implemented a temporary 10% tariff on all imports under Section 122 of the Trade Act.Tariffs under Section 122 can only be maintained for a maximum of 150 days without congressional approval for an extension. As the expiration of the previous tariffs approached, the Trump administration invoked Section 301 of the Trade Act, which allows for retaliation against unfair or discriminatory trade practices.In March, the USTR launched an investigation into the implementation and enforcement of systems to block imports of forced labor products in South Korea and 59 other trading partners. After announcing the proposed tariffs of 10% to 12.5% last month, the USTR finalized this action after gathering feedback from various countries.* This article has been translated by AI. 2026-07-24 06:48:00