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Heavy Rain Causes Flooding in Daejeon, Sejong, and Chungnam Regions Heavy rain has inundated the Daejeon, Sejong, and Chungnam regions, leading to flooded roads and landslides. The downpour was particularly intense during the morning hours, causing significant disruptions for commuters.According to Yonhap News, on July 9, several roads in the area, including the Gapsan Expressway near Sinil-dong and the road leading to the Mati Tunnel in Gongju, were temporarily submerged due to rainwater.In Yuseong District, Daejeon, two individuals were rescued by firefighters from a vehicle trapped on a flooded road around 5:33 a.m.Reports also indicated that vehicles were stranded in Mokcheon-eup and Daga-dong in Cheonan, as well as in Sejong City, prompting rescue operations by the fire department.Additionally, in Sejong City, a dedicated bus rapid transit (BRT) lane was submerged, forcing buses to reroute. This led to severe traffic congestion as other vehicles joined the detour during the morning rush hour.In Songgang-dong, Yuseong District, parked cars were damaged by mudslides, and a restaurant area near Donghaksa in Gongju was also affected by landslides.As of 3 p.m., Yonhap reported that flood warnings were in effect for areas including Sangjocheon Bridge and the Asan City Chunmugyo. However, the flood warnings for the Doam Bridge in Sejong and the Pukgaedari in Nonsan were lifted as the rain subsided.In Chungnam, 69 locations, including riverside parking lots and pedestrian bridges, were temporarily closed, leading to the evacuation of 85 residents to safer areas.The Chungnam provincial government reported that farms in Buyeo, including melon, cucumber, and watermelon fields, as well as ginseng fields in Geumsan, suffered damage due to the rain that began the previous day. The Chungnam Fire Department received a total of 247 reports of damage from the heavy rain, and safety measures were implemented.Furthermore, the Daejeon Fire Department reported 57 incidents, while the Sejong Fire Department received 50 reports of damage, according to Yonhap.As of 3 p.m. on July 9, rainfall amounts included 266.6 mm in Cheonan, 257.5 mm in Gyeryong, 244 mm in Sejong's Gowoon, 239.5 mm in Daejeon's Jangdong, and 235.5 mm in Buyeo's Yanghwa. The Korea Meteorological Administration forecasted additional rain of 10 to 50 mm throughout the night, with some areas experiencing a lull in rainfall.* This article has been translated by AI. 2026-07-09 17:48:00 -
Debate Over Single-Stock Leverage ETFs Amid KOSPI Decline The recent decline in the KOSPI index has reignited discussions surrounding the volatility of single-stock leverage exchange-traded funds (ETFs) linked to Samsung Electronics and SK Hynix. While some argue that the rebalancing trades of these leverage products have exacerbated the market downturn, others contend that it is excessive to label these stocks as the primary culprits behind the decline.According to the Korea Exchange, the KOSPI index fell by 10.40% from July 7. During this period, Samsung Electronics and SK Hynix saw declines of 12.58% and 6.70%, respectively, leading to even larger drops in their single-stock leverage products. Seven of these products recorded declines of 12% to 13% compared to July 7, while another seven experienced drops of around 23%. All but one, the 'KODEX SK Hynix Single-Stock Leverage' ETF (priced at 21,930 won), fell below the initial listing price of 20,000 won.Single-stock leverage products have previously been identified as factors contributing to increased index volatility. Critics argue that the rebalancing trades of these ETFs amplify market fluctuations. Rebalancing involves adjusting the proportion of underlying assets by buying more when prices rise and selling when they fall to meet targeted returns. This process is similar to the 'short gamma' phenomenon in the options market. Han Ji-young, a researcher at Kiwoom Securities, stated, "The surge in single-stock leverage trading has artificially intensified the downward pressure due to the short gamma effect in the derivatives market."Conversely, some analysts suggest that individual investors' counter-trend trading may actually help mitigate volatility. This trading style involves increasing net purchases when stock prices fall and decreasing them when prices rise. Jang Geun-hyuk, a senior researcher at the Capital Market Research Institute, noted, "Since the first week after the launch of leverage products, individual investors have been engaging in counter-trend trading, which may partially offset the volatility caused by rebalancing effects."In fact, during the two days of the market decline, individual investors heavily purchased these single-stock leverage products. According to the Korea Exchange, from July 7 to 8, individual investors net bought 758.8 billion won worth of Samsung Electronics and SK Hynix single-stock leverage products, accounting for 46.9% of the total net purchases in all ETF products. Individuals net bought 288.6 billion won in Samsung Electronics single-stock leverage products and 470.2 billion won in SK Hynix single-stock leverage products, betting nearly twice as much on SK Hynix.There are also claims that the premium rates for these products remain stable. Lee Sang-hyun, a researcher at Meritz Securities, explained, "The premium rate for the Samsung Electronics leverage ETF averages 0.84%, while the SK Hynix leverage ETF averages 0.90%, both tracking net asset value (NAV) well under 1%. Since their listing until July 6, the cumulative rate exceeding 1% has been 34.3% for Samsung Electronics and 25.7% for SK Hynix, indicating relatively faithful management." According to exchange regulations, if the daily premium rate of a leverage ETF exceeds 1%, disclosure obligations arise.Industry insiders also agree that interpreting single-stock leverage products as the sole cause of market volatility is excessive. One industry source stated, "When the market rises, individual investors tend to realize profits, leading to redemption demands for fund managers. In this process, fund managers may sell underlying assets to meet redemption requests, which can offset one-sided supply shocks due to buying pressure from new investments."Another market participant remarked, "The recent increase in volatility for Samsung Electronics and SK Hynix should be viewed as a result of macro uncertainties stemming from the U.S.-Iran conflict and concerns over the global semiconductor industry's peak. It is unreasonable to attribute this solely to single-stock leverage products."* This article has been translated by AI. 2026-07-09 17:40:00
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Ruling Party Proposes Criminal Procedure Law Amendment to Abolish Prosecutors' Supplementary Investigation Rights The Democratic Party has proposed an amendment to the Criminal Procedure Law that aims to completely abolish prosecutors' supplementary investigation rights in line with the upcoming establishment of the Serious Crimes Investigation Agency and the Public Prosecution Agency in October.On the afternoon of July 9, lawmakers Kim Han-kyu, Kim Seung-won, Park Sang-hyuk, and Lee Hae-sik, who are part of the task force handling the amendment within the Democratic Party, submitted the proposal to the National Assembly's Office of Legislation.Kim Han-kyu stated, "This amendment can be divided into three main parts: adjusting investigative authority in line with the establishment of the Serious Crimes Investigation Agency and the Public Prosecution Agency, strengthening oversight and supervision of investigative agencies, and enhancing protections for victims and complainants."He explained that the adjustment of investigative authority involves clarifying that the investigative authority is primarily held by the judicial police throughout the Criminal Procedure Law, while also strengthening corrective measures and the rights to request supplementary and re-investigations, allowing the Public Prosecution Agency to oversee investigative agencies.Kim added, "Currently, there is no deadline for investigative agencies to complete supplementary investigations. The amendment stipulates that judicial police must complete investigations within one month and allows prosecutors to request supplementary investigations based on their judgment." He also noted that the corrective measure request would enable judicial police to transfer cases to other investigative agencies if they deem themselves unsuitable to handle the case.Furthermore, he mentioned that the task force is not only focusing on adjusting investigative authority but also on enhancing the rights of victims and complainants, ensuring accurate assessments of facts during investigative procedures. He emphasized that these strengthened powers and expanded sanctions are intended to prepare measures to control potential abuses of investigative authority by prosecutors resulting from the adjustments.In light of recent public concerns regarding the fairness of police investigations, particularly following the 'Jang Yoon-ki incident,' the task force announced plans to develop measures to prevent such issues.Lee Hae-sik, the ruling party's secretary of the National Assembly's Administrative Safety Committee, remarked, "Discussions on how to oversee the strengthening of police authority have been ongoing for a long time. We aim to substantiate the Police Commission as a key measure. In the long term, efforts to decentralize police authority through the introduction of a local police system are necessary."Meanwhile, since the task force has prepared the amendment to the Criminal Procedure Law, discussions are expected to begin promptly within the National Assembly's Legislative Judiciary Committee.Kim Seung-won, the ruling party's secretary of the Legislative Judiciary Committee and chair of the first subcommittee on bill review, stated, "The proposed amendment will be reviewed in the subcommittee starting at 10 a.m. on July 10, and we will do our utmost to establish a swift and fair criminal justice system."* This article has been translated by AI. 2026-07-09 17:40:00
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PPP leader turns to hardline conservatives amid loosening grip within party SEOUL, July 9 (AJP) - Jang Dong-hyuk, the leader of the main opposition People Power Party (PPP) has taken his fight over a ballot shortage in last month's local elections out of Parliament and onto the streets, alarming lawmakers in his own party who fear that the campaign could pull conservatives back toward election fraud conspiracy theories. Jang began a nationwide tour on Wednesday to demand a re-run of the June 3 local elections along with an investigation into the ballot shortage controversy. His first stop was Incheon, west of Seoul, where he met young supporters before joining a rally at a busy shopping and nightlife district there. It was the first time Jang had joined a field rally on the ballot issue outside Seoul's Olympic Park, where protests over the election controversy had already drawn attention from hard-line conservatives. Party officials said the Incheon event was intended to build momentum for similar gatherings in other cities, including Busan and Gwangju. To Jang and his allies, the campaign is a fight for voting rights. To some lawmakers and strategists inside the party, it is something riskier: an attempt to mobilize a restless conservative base at a moment when the party's poll numbers are falling and Jang's leadership is under pressure. The dispute began with a shortage of ballots during the elections, a logistical failure that opposition lawmakers have seized upon as evidence of serious election mismanagement. Jang has called for a special prosecutor recommended by the opposition, arguing that an inquiry led by the governing side would lack credibility. Park Sung-hoon, the party's chief spokesman, told reporters at the National Assembly that the special counsel now being discussed "must be led by a person recommended by the opposition." He said the party would "properly reflect voices from outside Parliament" to ensure that a meaningful investigation is carried out. But the language of election integrity has begun to unsettle some conservatives, who worry that the campaign could blur into the kind of voter-fraud claims long associated with far-right activists. The distinction has not fully eased concerns inside the party. The People Power Party has been losing ground in several recent polls. A Realmeter survey conducted on July 2 and 3 found the ruling Democratic Party (DP) at 43 percent and the PPP at 40.3 percent, reversing the conservatives' brief lead from three weeks earlier. A Gallup Korea survey conducted from June 30 to July 2 put the PPP at 26 percent, far behind the DP's 41 percent. The regional numbers have been especially troubling for conservatives. According to Gallup, the party's support in Busan, Ulsan and South Gyeongsang Province — a traditional conservative stronghold — fell from 37 percent in the second week of June to 25 percent in the first week of July. In Daejeon, Sejong and the Chungcheong region, support dropped from 40 percent in the fourth week of June to 20 percent a week later. For critics inside the party, Jang's turn to rally politics looks less like a disciplined opposition strategy than an effort to survive a leadership crisis. Since the elections, he has faced criticism for what some lawmakers describe as "disciplinary politics" aimed at rivals aligned with former party leader Han Dong-hoon. He has also overseen an escalating boycott of parliamentary committees, deepening internal frustration among lawmakers who believe the party should focus on legislative work and rebuilding its image with moderate voters. Jang's current strategy has reminded some party members of his conduct during the campaign, when calls emerged for him to step back from the front line. At that time, he tried to hold his ground by visiting Chungcheong, his home region, and Daegu and North Gyeongsang Province, the conservative heartland. Now, critics say, he is again leaning on the party's most loyal supporters rather than broadening its appeal. Jang had initially planned to travel to Daegu on Friday for a youth meeting and a voting-rights rally. The trip was later postponed. Party officials said the schedule had been adjusted because a weekday event would have limited political impact. But people familiar with the matter said lawmakers from the Daegu area had conveyed concerns about the nature of the rally. The sensitivities were heightened by the expected appearance of Jeon Han-gil, the far-right YouTuber, at the same rally on Saturday. Most PPP lawmakers who spoke with AJP expressed concern. "It is difficult to justify trying to rally the party's support base through street protests while at the same time weakening internal unity through disciplinary politics," said a four-term PPP lawmaker. "The party chairman represents the entire party. Whatever he intends to do, he should first discuss it with fellow lawmakers at a general meeting of the parliamentary party or through other internal channels," said a three-term lawmaker. "I didn't even know Jang was considering a nationwide tour," the lawmaker said. "At some point, he stopped consulting other lawmakers and began making decisions on his own." "His credibility as a leader is finished," said a first-term lawmaker. "The chairman has been pursuing an increasingly unilateral course, and I don't know whether it is for the good of the party or for his own political interests." "Even PPP lawmakers are not rallying behind Jang," the lawmaker added. "Politics is not something you do alone." "The best thing Chairman Jang can do for our party is to step down as soon as possible," said another first-term lawmaker. Rep. Ahn Sang-hoon criticized Jang's nationwide tour, saying it was "nothing more than one of many desperate attempts to preserve power that has already outlived its legitimacy." "A small stream cannot change the course of the mighty Han River," he added. Some within the People Power Party, however, argued that Jang's nationwide tour to attend rallies was appropriate. Yoon Sang-hyun, a five-term lawmaker and chair of the National Assembly's special committee investigating the elections' ballot shortage, said it is only natural for the leader of the main opposition party to travel across the country to listen to the voices of the people and gather public opinion. "The voices of the people gathering in the public squares today are not the voices of any particular political camp," Yoon said. "They are the voices of sovereign citizens who, after experiencing the ballot shortage, have begun asking whether their votes are being properly safeguarded." Yoon also stressed that winning over moderate voters and those in the greater Seoul metropolitan area depends on politicians fulfilling their responsibilities. "The trust of moderates and metropolitan-area voters is a reward that politicians earn by doing their jobs," he said. "The party can win their support when the party leader gathers the public's urgent concerns on the ground while the special committee and the parliamentary leadership work in tandem to produce institutional reforms based on evidence and facts." "The important thing is to build party-wide consensus around that shared task," he added. 2026-07-09 17:33:11 -
What Will Libraries Look Like in the Age of AI? Global Experts to Gather in Busan "The age of artificial intelligence (AI) marks the third transformation for libraries. The next four to five years will determine the future of libraries." This statement was made by Cha Ji-ho, co-organizer of the 2026 Busan World Library and Information Congress, during a press conference held at the Korea Press Center in Seoul on July 9. The World Library and Information Congress will take place from August 10 to 13 at BEXCO in Busan. Co-hosted by the International Federation of Library Associations and Institutions, the Korean Library Association, and the National Committee, the event is expected to attract over 3,000 participants from more than 150 countries. The agenda includes keynote speeches and discussions on AI and library innovation, presentations of global library innovation cases, poster sessions, K-Culture experience zones, exhibitions, and cultural events. This will be the first time the congress is held in South Korea since the 2006 event in Seoul. Participants at the press conference emphasized the need for libraries to serve as spaces that uphold public value and address the information gap as AI rapidly changes access to information. Cha noted that libraries have evolved from a print-centric era to an information age and are now entering another transition into an "intelligence system" era based on AI. He highlighted the role of public libraries in reducing knowledge and information disparities, stressing the importance of examining how the knowledge system centered on public value will change in the AI era. The congress is expected to focus on the public accessibility of knowledge as a key agenda item. Kim Sung-eon, an associate professor at Yonsei University’s Department of Library and Information Science, pointed out that as the level of AI technology utilization widens the information gap, libraries must become digital education spaces and hubs for AI training for citizens. He anticipates that discussions on the library's role as a community space connecting people through reading, discussions, lectures, and cultural programs will gain prominence at the event. Actor Yoo Ji-tae, appointed as a promotional ambassador for the World Library and Information Congress, expressed concern that books and films are losing their unique value amid the rapid development of AI. He lamented that libraries and cinemas are often perceived merely as buildings rather than cultural assets. He stated, "If food shapes our bodies, culture nurtures our minds and spirits. Just as we learn emotions and life through good books and films, libraries are invaluable cultural assets that preserve our spirit and culture." The International Federation of Library Associations and Institutions, established in 1927 in The Hague, Netherlands, is an international organization that sets global standards for library operations and supports cooperation among member countries. 2026-07-09 17:32:00
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The mystery behind the near-flat Korea-U.S. sovereign yield gap SEOUL, July 09 (AJP) - Foreign appetite for South Korean sovereign bonds has stayed firm this year even as investors dumped Korean equities, but that has not stopped bond prices from falling. The spread between Korean and U.S. 10-year government debt has narrowed to less than 30 basis points, even though the policy-rate gap between the Bank of Korea and the Federal Reserve remains wider than 100 basis points. As of midday Thursday, Korea’s 10-year government bond yielded 4.282 percent, while the corresponding U.S. Treasury yield was quoted around 4.56 to 4.58 percent in Asian trading. Such a narrow gap between Korean debt and bonds issued by the world’s largest economy and reserve-currency issuer is rare. On a monthly-average basis, the spread was last this narrow in July 2023, near the final phase of the postpandemic tightening cycle, when U.S. rates were still rising while Korean markets were already pricing in the end of BOK rate increases. The BOK’s base rate stands at 2.50 percent, while the Federal Reserve’s target range for the federal funds rate is 3.50 percent to 3.75 percent. If long-term yields simply tracked current policy rates, U.S. 10-year yields would be much further above Korean yields. The compressed spread shows that long-term yields are pricing far more than current central bank settings. They also reflect expectations for future rate paths, inflation, currency risk, bond supply and the term premium investors demand to hold longer-dated debt. In Korea, those risk factors have pushed the 10-year yield higher even as weak domestic demand limits expectations for how far the BOK can raise rates. The narrowing gap therefore does not simply mean Korean bonds have become more attractive against U.S. Treasuries. It suggests investors are demanding greater compensation to hold Korean long-term debt. The latest rise shows that the recent sideways movement in Korean yields did not mean pressure had faded. The 10-year yield has struggled to move below 4.2 percent and is now approaching the 4.3 percent threshold. Trading Economics data showed Korea’s 10-year yield was 1.10 percentage points higher than a year earlier, while the U.S. 10-year yield was up 0.22 percentage point over the same period. That suggests the narrowing Korea-U.S. 10-year yield gap has been driven mainly by Korean bond weakness, not by any meaningful decline in U.S. Treasury yields. Bond strategists attribute the move to a mix of rate-hike expectations, inflation risk and supply pressure. Some analysts say Korean government bonds are already pricing in multiple rate increases, while geopolitical risks from the Middle East have revived inflation concerns through oil prices. The won is another source of pressure. For foreign investors, Korean bonds are not just a yield trade. They also carry exchange-rate risk. When the won stays near 1,500 per dollar, interest income from Korean bonds can be offset by currency losses. That risk has persisted even after Korea posted a record current account surplus of $38.61 billion in May, led by a record goods surplus of $37.86 billion. For long-term investors, the issue is not only whether Korea generates dollars through trade, but whether portfolio flows and currency expectations can stabilize enough to reduce the risk premium on won-denominated debt. Inflation is another reason investors are demanding more compensation, especially as price growth remains above the BOK’s 2 percent target and renewed oil-price pressure revives global inflation concerns. Still, the rise in Korea’s 10-year yield is not simply a bet on aggressive BOK tightening. Strong semiconductor exports have supported growth, but weak consumption and pressure on small businesses are expected to limit how far the BOK can push rates above 3 percent. Bond supply has added to the pressure, with heavier government issuance reflecting front-loaded budget execution and refinancing needs. Even planned issuance can weigh on the long end when global bond yields are elevated and domestic inflation risks remain priced in. That has left the Korean bond market in an unusual position: foreign investors continue to absorb Korean debt, but the inflows have not been strong enough to pull long-term yields lower. The main source of foreign demand is Korea’s inclusion in the World Government Bond Index this year, creating benchmark-driven buying from global passive funds and index-tracking investors. Analysts say the WGBI effect has so far been uneven, with inflows concentrated more in short- and medium-term maturities than in longer-dated bonds. May balance-of-payments data also pointed to the split in foreign flows. Foreign portfolio investment in Korean securities fell by $24.65 billion, while foreign investment in Korean debt securities increased by $6.4 billion on WGBI-related inflows. Foreign investors, in other words, are cutting Korean equity exposure but remaining committed to Korean debt. Korea’s yield shortfall against U.S. Treasuries has shrunk, but Korean bonds are also trading at higher yields as investors price in currency, inflation and supply risks. For markets, the key question is no longer simply whether the Korea-U.S. yield gap narrows further. It is whether Korea’s 10-year yield breaks above 4.3 percent — and whether WGBI-driven demand can absorb the pressure from government bond supply. 2026-07-09 17:28:40 -
Jaseng Hospital Denies Insurance Fraud Allegations Amid Police Raid Jaseng Hospital has strongly denied allegations of insurance fraud as police have reportedly launched a raid over claims involving hundreds of billions of won. The hospital stated that the accusations are "unfounded" and emphasized its cooperation with the ongoing investigation. According to police sources, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency executed a search warrant at Jaseng Hospital and the Jaseng Medical Foundation in Gangnam on the morning of July 9. Four insurance companies, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, have filed complaints against Jaseng Hospital for violating the Special Act on the Prevention of Insurance Fraud. The insurers allege that the hospital indiscriminately prescribed herbal medicine to traffic accident patients, regardless of their symptoms, resulting in fraudulent claims amounting to hundreds of billions of won. In a statement released on the same day, Jaseng Hospital affirmed its commitment to cooperating with the investigation but insisted that the claims are inaccurate, stating that it is providing necessary documents to clarify the situation. Specifically addressing the allegations of indiscriminately prescribing pre-manufactured herbal medicine to traffic accident patients, the hospital described these reports as "one-sided claims without objective evidence." A representative from Jaseng Hospital explained, "Herbal medicine is prescribed based on a comprehensive assessment of the patient's symptoms, constitution, medical history, and diagnostic results. All herbal medicine is prepared individually according to the patient's prescription." The representative also noted that similar complaints and accusations have been made in the past, but investigations have consistently concluded with no charges or dismissals. To date, there have been eight cases of non-prosecution decisions related to similar allegations. Finally, Jaseng Hospital stated that it is considering all possible legal actions, including charges of false accusations, against those who damage the reputation of the medical institution with false or distorted claims. Meanwhile, it has been reported that complaints and dispute resolution requests to non-life insurance companies increased in the first quarter of this year. As conflicts over insurance payments rise, consumer dissatisfaction is also growing. According to the General Insurance Association, the number of complaints received by non-life insurance companies in the first quarter reached 11,108, a 17.1% increase compared to the same period last year. Notably, complaints related to insurance compensation accounted for 8,224 cases, or 74.0% of the total, marking an 18.8% increase. Complaints specifically related to automobile insurance rose to 2,990, a 22.6% increase. Industry experts attribute the rise in complaints to a combination of heightened consumer awareness of rights and the proliferation of generative AI. * This article has been translated by AI. 2026-07-09 17:24:00
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Bidding for Yeouido Mokhwa Apartment Reconstruction Fails as Only Samsung C&T Participates The selection of a contractor for the Yeouido Mokhwa Apartment reconstruction project in Seoul's Yeongdeungpo District did not succeed in its initial phase. The bidding was deemed invalid as only Samsung C&T participated, failing to meet the requirement for competitive bidding.According to the construction industry on July 9, the Mokhwa Apartment reconstruction association closed the bidding for contractor selection on this day, but only Samsung C&T submitted a proposal. Under relevant regulations, a bidding process requires participation from at least two construction companies to be valid, leading to the automatic invalidation of this bid.The reconstruction project aims to transform the existing 312-unit Mokhwa Apartment into a mixed-use complex with a maximum of 49 floors and a total of 416 units. The estimated construction cost is set at approximately 13.7 million won per 3.3 square meters.In a prior site briefing held in May, seven construction companies, including Samsung C&T, Daewoo Engineering & Construction, GS Engineering & Construction, Lotte Engineering & Construction, and IPARK Hyundai Industrial Development, attended. However, during the actual bidding, most withdrew, leaving only Samsung C&T. This trend is interpreted as a result of rising raw material prices, increased construction costs, and a slowdown in the real estate market, prompting construction firms to adopt a selective bidding strategy focused on projects with higher profitability. Additionally, the limited size of the project site, the requirement for high-rise design, and the location's proximity to the Han River and Yeouinaru Station have contributed to higher-than-average construction costs compared to typical small-scale reconstruction projects.The association plans to issue a re-announcement to proceed with the bidding process again. If only one company participates in the re-bid, the contractor may be selected through a negotiated contract process following the relevant procedures.Meanwhile, industry experts suggest that the outcome of the upcoming re-bid could serve as a benchmark for the competitive atmosphere among contractors for major reconstruction projects in Yeouido.* This article has been translated by AI. 2026-07-09 17:24:00
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Korea pivots to U.S. warship market after Canada setback SEOUL, July 09 (AJP) - South Korea's shipbuilders wasted no time dwelling on their loss in Canada's multibillion-dollar submarine contest, shifting their focus to the far larger U.S. naval market as Presidents Lee Jae Myung and Donald Trump elevated shipbuilding cooperation to the highest political level. The issue featured prominently during a reception and dinner hosted by Turkish President Recep Tayyip Erdogan on Tuesday on the sidelines of the NATO summit in Ankara, where Lee and Trump held follow-up discussions on military shipbuilding just three weeks after the subject was raised during the Group of Seven summit in France. According to South Korea's presidential office, Lee told Trump that Seoul would cooperate "as much as possible" with the U.S. request and introduced Korean shipbuilders with world-class manufacturing capabilities. The two leaders agreed to continue working-level discussions on specific forms of cooperation. The renewed talks followed Trump's request during the G7 summit asking whether South Korea could rapidly build 10 U.S. warships, reflecting Washington's urgency in naval production bottlenecks and fleet capacity strains after its Gulf engagement. According to industry sources, the U.S. Department of Defense and the Navy recently sent requests for information (RFIs) to major Korean shipbuilders seeking detailed data on their capabilities to design and build combat vessels and medium-sized replenishment oilers. Among the vessels drawing particular U.S. interest is the Republic of Korea Navy's newest 3,600-ton Chungnam-class frigate, formally known as the Ulsan-class Batch-III. The 129-meter vessel incorporates significantly upgraded combat systems over the earlier Incheon- and Daegu-class frigates. HD Hyundai Heavy Industries designed and built the lead ship, Hanwha Ocean is constructing the fifth and sixth vessels, while SK Oceanplant is building the second through fourth ships. A U.S. Defense Department inspection team reportedly visited SK Oceanplant's shipyard in Goseong in May, boarding a Chungnam-class frigate under construction and closely inspecting the vessel's interior, exterior and production process. The American outreach comes on the heels of Hanwha Ocean's narrow defeat to Germany's TKMS in Canada's submarine competition, a setback that underscored the high barriers to cracking NATO-linked procurement despite Korea's technological competitiveness. Although the United States is NATO's leading military power, procurement decisions rest primarily with Washington rather than a smaller ally balancing alliance politics and European industrial interests. That gives the United States greater flexibility to prioritize industrial capability, production speed and cost efficiency over broader political considerations. Still, legal hurdles remain formidable. U.S. law effectively prohibits Navy vessels and major hull or superstructure components from being constructed overseas under the Byrnes-Tollefson Amendment unless specific exceptions are granted. That means Korean shipbuilders cannot simply build combat ships in domestic yards and export them directly to the United States. Instead, analysts expect any cooperation to evolve through more practical channels, including localized production in the United States, Korean-designed platforms, component supply and maintenance, repair and overhaul (MRO) services. "Words alone will not make it happen," said Ryu Yeon-seung, head of the Defense and Security Research Institute, cautioning that Trump's remarks should not be interpreted as a guaranteed contract. Still, Ryu said discussions between the two governments are already underway and could develop into commercially viable cooperation. "Construction is more likely to take place in the United States," he said. "But that does not mean all the benefits would go to the United States." Korean companies could supply high-value components, contribute ship designs and establish long-term maintenance businesses as vessels require replacement parts, upgrades and overhauls throughout their service lives, he said. Korean shipbuilders have already begun building credibility in precisely that area. Hanwha Ocean completed a seven-month regular overhaul of the USNS Wally Schirra, a U.S. Navy Military Sealift Command dry cargo and ammunition ship, at its Geoje shipyard in March 2025. The U.S. Navy described the project as the first regular overhaul of that scale performed by a South Korean shipyard for one of its Military Sealift Command vessels. The work included dry docking, hull corrosion repairs and complete rudder replacement. HD Hyundai Heavy Industries has since secured an MRO contract for the USNS Alan Shepard, a 41,000-ton dry cargo and ammunition ship assigned to the U.S. Seventh Fleet, with work carried out at HD Hyundai Mipo's Ulsan yard. HJ Shipbuilding & Construction has also entered the market through maintenance work on the USNS Amelia Earhart at its Busan shipyard. Those projects are increasingly viewed not as isolated repair contracts but as stepping stones toward deeper participation in the U.S. naval supply chain through component manufacturing, engineering support and, eventually, naval shipbuilding partnerships. For Korean shipbuilders, Canada may have demonstrated how difficult it is to crack NATO procurement. The United States could prove whether Korea's biggest competitive advantage — building sophisticated warships faster than almost anyone else — can ultimately outweigh legal and political barriers. 2026-07-09 17:15:31 -
Convenience store chain CU opens 600th store in Mongolia SEOUL, July 9 (AJP) - Convenience store chain CU has opened its 600th store in Mongolia, about eight years after entering the market, BGF Retail, which operates CU, said on Thursday. The 600th store, located in Bulgan province about 600 kilometers west of Ulaanbaatar, opened on June 26. Spanning about 281 square meters, it targets tourists and long-haul transport drivers. Unlike typical convenience stores, the store offers shower facilities for travelers, following a similar strategy to installing public restrooms at other CU stores. The move has received positive responses from locals in a country with limited social infrastructure. CU made inroads into Mongolia in 2018 after signing a franchise agreement with Mongolian retailer Premium Nexus Group, becoming the first South Korean convenience store brand to enter the market. The number of its outlets grew from 56 in 2019 to 541 last year, surpassing 600 last month. CU adapted to the local market by selling popular Mongolian foods - like buuz (steamed buns) and khuushuur (fried dumplings) alongside traditional South Korean foods. It also operates about 50 specialty stores featuring South Korean cosmetics and beauty products, where customers can try them. Jin Young-ho, head of CU's overseas business, said the opening of its 600th store will help strengthen CU's position as a "lifestyle platform" in the steppe nation. Meanwhile, CU also opened its first store in Hawaii in November last year, with plans to open more stores in major tourist spots and upscale residential neighborhoods on the resort island. 2026-07-09 17:15:13