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Mastin Investment Management Acquires Four Points by Sheraton Seoul Guro for 859 Billion Won Mastin Investment Management announced it has acquired the Four Points by Sheraton Seoul Guro, a four-star hotel located in Guro District, Seoul. The hotel was purchased for approximately 859 billion won from a fund managed by Mirae Asset Management. The Four Points by Sheraton Seoul Guro features 201 guest rooms and spans 18,500 square meters across 15 floors above ground and four basement levels. Originally opened in 2010, the hotel underwent renovations and reopened in 2019 under the Four Points by Sheraton brand, part of Marriott International. Conveniently located near Guro Digital Complex subway station on Line 2, the hotel offers easy access to major business districts such as Yeouido and Gangnam. It is also well-positioned for tourists, with quick transport links to popular attractions in Myeongdong and Hongdae, making it suitable for both business and leisure travelers. The hotel is situated in the heart of the G-Valley, which includes the Guro Digital Complex and the Geumcheon Digital Complex, promising a stable demand from businesses. G-Valley is home to approximately 14,000 companies and over 140,000 workers. Amenities at the hotel include a restaurant, café, bar, fitness center, and business corner. It also features a banquet hall of about 400 square meters and several meeting rooms, catering to corporate events and conferences. Park Hyung-seok, CEO of Mastin Investment Management, stated, "With the recent recovery in global tourism demand, interest in hotel assets is increasing. We will strive to generate stable returns through selective investments in competitive hotel properties."* This article has been translated by AI. 2026-06-11 13:51:00 -
Ildong Pharmaceutical Partners with Welt to Develop AI-Driven Digital Therapeutics Ildong Pharmaceutical announced on June 11 that it has signed a memorandum of understanding (MOU) with digital healthcare company Welt to jointly develop and commercialize AI-based digital therapeutics. The agreement aims to combine Ildong's pharmaceutical and health supplement portfolio with Welt's AI agent platform, DrugOS, to enhance medication adherence and treatment outcomes through digital therapeutics. DrugOS is a platform that supports medication timing management, adverse reaction monitoring, and prediction of treatment discontinuation risks, allowing for interaction with patients to manage their treatment processes. It operates based on the digital guidelines for prescription drug use established by the U.S. Food and Drug Administration (FDA) and the domestic digital medical product regulations. The two companies plan to accumulate real-world evidence (RWE) and validate improvements in medication adherence and treatment efficacy in response to the implementation of the digital medical product law and the introduction of digital therapeutic guidelines in the second half of this year. Initially, they will apply DrugOS to over-the-counter medications and health supplements, such as the Aranamin series, to validate the market and gather data. They intend to expand the application to prescription drugs and new or improved medications in the future. Additionally, they will gradually apply the platform to key product lines, enhancing the existing portfolio into AI-based digital therapeutics through joint development. Ildong Pharmaceutical will handle commercialization and regulatory compliance, while Welt will manage platform operations and data analysis. They also plan to pursue joint licensing opportunities with global pharmaceutical companies based on the RWE and clinical evidence obtained in South Korea. Welt established a foundation for global expansion by signing a partnership with the German Digital Health Association in 2024, becoming the first Asian company to do so, and setting up a local office in Munich. Last year, it obtained CE certification, which meets European medical device regulatory requirements, and ISO 27001, an international standard for information security management systems. Yoon Woong-seob, CEO of Ildong Pharmaceutical, stated, "The integration of pharmaceuticals and digital technology will create a new paradigm that improves patient treatment experiences and outcomes beyond just medication reminder services. Through our collaboration with Welt, we aim to provide differentiated value to users and lead the digital therapeutics market."* This article has been translated by AI. 2026-06-11 13:51:00 -
OpenAI Considers Lowering AI Service Fees to Compete with Anthropic OpenAI is reportedly considering a significant reduction in its artificial intelligence (AI) service fees to gain an edge in the competition for corporate clients against Anthropic, according to a report by The Wall Street Journal on June 10. The WSJ indicated that OpenAI is discussing a substantial decrease in the price of 'tokens,' which are the units used to measure AI usage based on the number of characters and words processed when the AI reads questions and generates answers. Generative AI companies typically charge clients based on the number of tokens they use. This discussion comes amid expectations that Anthropic may also lower its prices. The consideration for price cuts arises as corporate clients face increasing costs associated with AI services. Sam Altman, CEO of OpenAI, recently stated at an event, "AI costs have become a significant issue." He added, "There are many ways to help achieve more value with less spending." Another factor driving OpenAI's review of pricing is Anthropic's rapid growth. Anthropic's AI coding tool, Claude Code, has gained traction among software developers, leading to a swift increase in its revenue. Reports suggest that Anthropic has recently surpassed OpenAI in terms of corporate valuation for the first time. In response, OpenAI is focusing on expanding its own coding tool, Codex, as a key part of its business. However, lowering prices could impact profitability. Both OpenAI and Anthropic are already facing billions of dollars in losses due to the substantial computing costs required to operate their AI models. Reducing token prices may decrease the profit margin per service, even if customer usage increases. Meanwhile, OpenAI has submitted confidential documents for an initial public offering (IPO) this week. Anthropic has also initiated its own listing process. CEO Altman recently informed employees that the company plans to go public within the next year.* This article has been translated by AI. 2026-06-11 13:51:00 -
Debate Renewed Over Large Retail Store Regulations in South Korea Debate over the mandatory closure regulations for large retail stores is reigniting. Park Yong-jin, vice chairman of the Presidential Regulatory Reform Committee, recently stated that "regulations established over a decade ago based on market conditions should be reassessed to align with today’s consumer environment." This raises the question of whether these regulations still hold effectiveness today, without denying their original purpose. It is a reasonable demand to evaluate whether policies reflect the realities of a changed retail environment beyond the interests of specific industries. The mandatory closure system for large retail stores was introduced in 2012 through amendments to the Distribution Industry Development Act. The aim was to curb the indiscriminate expansion of large retailers and protect traditional markets and local businesses. At that time, the rapid market dominance of large stores posed a significant threat to the survival of small businesses, leading to a consensus on the need for institutional responses. However, the market landscape has drastically changed over the past decade. Consumers can now order products anytime and anywhere via mobile devices, with same-day and early morning deliveries becoming commonplace. Online platforms and e-commerce companies have long taken the lead in the retail market. According to Statistics Korea, the domestic online shopping transaction volume has reached record highs annually, with consumer purchasing behavior shifting rapidly from offline to online. The effectiveness of a policy is determined by its outcomes rather than its intentions. Regardless of the good intentions behind regulations, if they fail to achieve the desired effects, they should be reconsidered. Yet, questions about the effectiveness of the mandatory closure system for large retail stores have persisted for over ten years. In reality, consumers do not flock to traditional markets when large stores close. Particularly for dual-income households, weekends have become the primary shopping time, and their options are mobile apps rather than traditional markets. When stores close, consumer spending naturally shifts online. Recent research supports this reality. The Korea Development Institute (KDI) analyzed regions that switched mandatory closure days to weekdays and found no evidence of decreased sales in traditional markets. Instead, there was an observed trend of some consumer spending moving from online to offline, leading to increased visits to surrounding businesses and traditional markets. This suggests that the existing premise that mandatory closures are essential for revitalizing traditional markets may not hold true. It is time to ask, "Who does the current regulation serve?" If a system intended to protect traditional markets only aids the growth of online platforms while sacrificing consumer convenience, it is responsible policy-making to reassess the direction of these regulations. A survey conducted by the Korean Retail Association with 2,000 adults found that about 60% of respondents agreed with abolishing or relaxing the mandatory closure regulations for large retail stores. Regulations are merely a means, not an end. As market conditions change, policies must adapt. Regulations that were reasonable in the past may yield unreasonable results today. The success of a policy is measured by its outcomes, not its good intentions. It is time to critically evaluate whether the mandatory closure system for large retail stores has sufficiently achieved its original goal of protecting traditional markets or if it has created new side effects amid changing times. The government should not maintain regulations for the sake of regulation. It must boldly revise those that are out of touch with reality and strengthen necessary support. A fair competitive environment should be established that aligns with the changed consumer landscape and retail ecosystem, seeking new models of coexistence where traditional markets, large retail stores, and online platforms can thrive together. This is the sensible path for consumers, small businesses, and our economy.* This article has been translated by AI. 2026-06-11 13:45:00 -
KOSPI Shows Mixed Trends Amid Investor Tug-of-War Following Drop Below 7400 The KOSPI and KOSDAQ indexes are showing mixed trends after a sharp drop at the market's opening. Initially, investor sentiment was dampened by geopolitical risks in the Middle East, leading to a significant decline. However, buying interest in semiconductor stocks helped the KOSPI recover to a stable range, while the KOSDAQ rebounded with gains exceeding 3%. As of 1:30 PM, the KOSPI was trading at 7740.72, up 9.90 points (0.13%) from the previous trading day, according to the Korea Exchange. The index opened down 221.20 points (2.86%) at 7509.62 and fell to as low as 7394.46, breaching the 7400 mark. It later turned upward, reaching a high of 7800.62 during the session before retreating again, currently fluctuating in a mixed trend amid a tug-of-war between individual and foreign investors. Individuals have net bought 1.68 trillion won, while institutions purchased 766.5 billion won. In contrast, foreign investors have net sold 2.55 trillion won. Among the top market capitalization stocks, trends were mixed. SK Hynix (up 2.44%), SK Square (up 3.47%), HD Hyundai Heavy Industries (up 1.09%), Samsung C&T (up 2.09%), and Samsung Electronics preferred shares (up 0.94%) saw gains, while Samsung Electronics (down 1.16%), Samsung Electro-Mechanics (down 1.05%), Hyundai Motor (down 1.50%), LG Energy Solution (down 0.65%), Samsung Life Insurance (down 0.27%), and Kia (down 3.63%) faced losses. Market analysts suggest that today’s fluctuations are more a result of macroeconomic variables rather than a deterioration in fundamentals. Kang Jin-hyuk, a researcher at Shinhan Investment Corp, noted, "Despite the U.S. Consumer Price Index (CPI) meeting expectations, concerns over instability in the Middle East have heightened risk aversion. However, semiconductor exports from June 1 to 10 increased by 205.8% compared to the same period last year, indicating solid fundamentals. This has led to a wave of bargain buying in semiconductor stocks, helping the KOSPI recover to a stable range." At the same time, the KOSDAQ index was trading at 980.61, up 28.98 points (3.05%) from the previous day. The index opened down 14.46 points (1.52%) at 937.17 and fell to 921.08 before successfully turning upward during the session. While individuals and foreign investors net sold 71.5 billion won and 344.8 billion won respectively, institutions led the index's rise with a net purchase of 398.1 billion won. Among the top market capitalization stocks, Alteogen (up 7.46%), JUSUNG Engineering (up 26.38%), Rino Technology (up 5.05%), and Wonik IPS (up 19.28%) showed strong performance, while EcoPro BM (down 2.92%), EcoPro (down 0.19%), Rainbow Robotics (down 2.51%), and HLB (down 1.96%) experienced declines.* This article has been translated by AI. 2026-06-11 13:45:00 -
Inequality deepens for Korean households on wealth gap and AI rise SEOUL, June 11 (AJP) - South Korea's household inequality is becoming more complex as property-driven wealth gaps combine with renewed income polarization, the Bank of Korea said Thursday. Rising real estate prices have widened wealth gaps between homeowners and non-homeowners, regions and generations. The net wealth Gini coefficient rose to 0.625 in 2025 from 0.584 in 2017, with a higher reading indicating a more unequal distribution. The central bank identified rising property prices as the main driver of the widening wealth gap. Property ownership is concentrated among older households, making intergenerational wealth inequality more entrenched. The trend has weakened the wealth-building ladder for young people. A growing number of high-income young Koreans are unable to move into the upper wealth bracket because they do not own property, a phenomenon similar to the so-called HENRY group, or "High Earners, Not Rich Yet." Income inequality is also showing signs of widening again. The income Gini coefficient edged up to 0.325 in 2024 from 0.323 in 2023, after years of decline supported by redistribution policies. K-shaped growth, marked by strong IT manufacturing and sluggish growth in non-IT sectors, has widened wage gaps across industries. Artificial intelligence could add further pressure by replacing tasks performed by low-income workers and young people at the early stages of their careers. A BOK survey showed that lower-income groups were more likely to believe their jobs could be replaced by AI, while their actual use of AI was lower than that of higher-income groups. Employment data also showed signs of pressure on young people. Youth employment has fallen faster in industries with high exposure to AI since the launch of generative AI, while employment among people in their 50s has increased in those sectors. The BOK described the trend as "seniority-biased technical change." The combined wealth and income divide is lowering the economic standing of young households. The share of households in both the bottom net wealth and income quintiles that were headed by people in their 20s and 30s rose to 15.2 percent in 2025 from 7.9 percent in 2020. Household polarization could hurt productivity and domestic demand. A panel analysis of 120 countries cited by the BOK showed that a 1 percentage point rise in the wealth share of the top 10 percent lowers total factor productivity by 0.16 percent two years later. The concentration of household assets in real estate can reduce the efficiency of resource allocation by keeping capital tied up in unproductive assets rather than innovative companies and new technologies. Higher housing costs could also reduce discretionary spending by young and low-income households, which tend to have a higher propensity to consume. Broader social costs could increase if people believe wealth gaps cannot be overcome through work alone. High housing costs could also weigh on marriage and childbirth among young people. The BOK said traditional income-support policies are not enough to address the problem. It called for policies that encourage household assets to move away from real estate and into more productive sectors, while expanding wealth-building channels for young and non-homeowning households. The central bank also urged policymakers to redesign redistribution systems for the AI era, strengthen job training for workers exposed to technological displacement and broaden the tax base as labor income becomes more vulnerable to automation. 2026-06-11 13:40:49 -
FOMO stock bet fuels household loans in Korea in May SEOUL, June 11 (AJP) - Bank loans rose sharply in May as South Koreans frantically borrowed out of the fear of missing out (FOMO) on record stock bull and for housing on expectations for rate hikes, central bank data showed Thursday. Bank household loans increased by 6.9 trillion won ($4.52 billion) in May, widening from a 2.1 trillion won gain in April and exceeding the 5.2 trillion won increase recorded a year earlier, according to the Bank of Korea. The sharpest turnaround came from other loans, which include unsecured credit loans, credit lines and stock-backed loans. Other household loans rose by 3.7 trillion won in May after falling by 600 billion won in April, with the BOK citing large-scale stock investment by individuals and seasonal funding demand linked to Family Month. Mortgage lending also increased. Bank mortgage loans rose by 3.2 trillion won, compared with a 2.7 trillion won gain in April, supported by mid- to low-priced housing transactions in the Seoul metropolitan area and demand for interim payments on presold homes. The loan growth came as the stock market extended a steep rally. The KOSPI climbed on optimism over the semiconductor cycle and stronger corporate earnings, hitting a record high of 8,801 on June 2. The index later corrected, led by semiconductor shares, as expectations for U.S. Federal Reserve rate hikes strengthened. Still, as of June 10, the KOSPI remained 17.2 percent above its end-April level. Bond yields have been rising in line with the expectations of a rate hike as early as July on inflationary pressure. The three-year Treasury yield rose to 3.88 percent Wednesday from 3.60 percent at the end of April, while the 10-year yield climbed to 4.27 percent from 3.92 percent over the same period. The BOK said government bond yields were affected by inflation concerns at home and abroad and changing expectations for monetary policy. Corporate funding also showed signs of shifting toward bank loans. Bank lending to companies rose by 10.6 trillion won in May, following a 10.7 trillion won increase in April. Loans to large companies increased by 5.2 trillion won, while lending to small and medium-sized enterprises rose by 5.4 trillion won. The BOK said SME lending remained strong as banks continued to expand corporate credit under their productive finance push, while large companies sought working capital, including funds to redeem corporate bonds. Corporate bond issuance remained weak, with companies recording a net redemption of 1.1 trillion won in May as higher interest rates raised issuance costs and pushed firms toward alternative funding sources such as bank loans. Commercial paper and short-term bonds also shifted to a net redemption of 2.1 trillion won. Deposits at financial institutions rose sharply. Bank deposits increased by 48.8 trillion won in May after falling by 6.8 trillion won in April, helped by short-term funds placed by some large companies and banks' efforts to secure lending resources and manage regulatory ratios. Asset management firms also saw large inflows. Their deposits rose by 86.4 trillion won in May, led by stock funds, which increased by 58.8 trillion won on valuation gains from higher domestic and overseas share prices and continued new investment inflows. 2026-06-11 13:37:04 -
Japanese Companies Accelerate Development with AI Amid Cost Concerns Japanese companies are leveraging artificial intelligence (AI) to enhance software development speed. As productivity becomes a top priority, businesses are adopting generative AI as a means of operational innovation. However, the increasing costs associated with high-performance AI models present new challenges in measuring their effectiveness and managing expenses. On June 11, the Nihon Keizai Shimbun reported that the American AI startup Anthropic held a developer event titled "Code with Claude" in Tokyo the previous day, marking its entry into the Japanese market. This year's event, the third following those in San Francisco and London, attracted around 500 engineers from Japanese companies. Anthropic plans to establish its first Asian office in Japan by October 2025 and has formed partnerships with NEC and Hitachi. During the event, Anthropic announced the public release of its new AI model, "Claude Fable 5." This model utilizes the same foundational technology as the previously limited-release high-performance AI "Claude Mythos," but has enhanced safety measures to refuse responses to potentially harmful instructions, such as those related to cyberattacks. The Nikkei evaluated Fable 5 as capable of autonomously working for extended periods in complex fields like programming, mathematics, and finance. Caitlin Lesh, Anthropic's head of platform engineering, stated in her keynote address, "The performance of AI models like Fable is improving exponentially, but their roles in business do not yet match that progress. We want to bridge that gap with Claude." One of the tools aimed at closing this gap is "Claude Code," introduced in 2025, which automates programming tasks and leads to the development of AI agents capable of handling complex assignments autonomously. Anthropic continues to invest in high-performance AI development based on usage fees from businesses and institutions. Japanese companies are already intensifying their use of AI. According to the Nikkei, Mercari, a leading second-hand trading platform, reported a 90% increase in engineering productivity due to AI implementation. An AI representative from Rakuten Group explained that the release cycle for major features has been shortened from every three months to every two weeks. Fujitsu partnered with Anthropic in May to enable approximately 100,000 employees to utilize Claude in their daily tasks, aiming to transition to an AI-driven development system over the next decade, with plans to incorporate AI in over 90% of all projects. They anticipate productivity will more than double compared to 2025 levels. The spread of AI is prompting changes in the business structure of Japan's system development industry. Traditionally, compensation has been based on the number of developers and hours worked. If AI reduces development time, this model could lead to decreased revenues for development firms. Fujitsu's Takahito Tokita stated that without changing the business model, "significant growth is unlikely." Cost is a pressing issue. The rise of "vibe coding," where programming tasks are delegated to AI, has led to a rapid increase in the usage of "tokens," which represent the amount of data exchanged between users and AI models. Anthropic employs a pay-per-use model based on token consumption for businesses and developers, with fees for the new high-performance model set at double that of its previous flagship model, "Opus." As AI usage costs rise, companies are now faced with the need to evaluate cost-effectiveness. The Nikkei reported that Uber Technologies in the U.S. has already exhausted its annual AI budget, imposing limits on employee AI usage. In Japan, many companies tout their AI adoption rates as a measure of success. However, increased usage does not necessarily translate to higher revenues, shorter development times, or cost savings. The Nikkei highlighted the lack of appropriate metrics to measure actual effectiveness. Shinpei Miyoshi, an executive at PwC Consulting, noted, "Many Japanese companies are using generative AI adoption rates as evaluation metrics, failing to design proper performance indicators linked to results. There are numerous cases where usage increases without effective measurement, leading to rising costs." As AI establishes itself as a tool for enhancing workplace productivity, companies' concerns are evolving. They are moving beyond the decision of whether to adopt AI to determining which tasks to assign to AI and how to justify costs based on performance metrics. The competition among Japanese companies is shifting from the speed of technology adoption to the precision of managing cost-effectiveness.* This article has been translated by AI. 2026-06-11 13:33:00 -
Court Dismisses Charges Against Kwon Soon-il in Hwacheon Daeyu Case Kwon Soon-il, a former Supreme Court Justice, received a dismissal of charges in a first trial regarding allegations of providing legal advice while not registered as a lawyer. The court concluded the case without determining whether Kwon violated attorney law, citing illegal procedures in the prosecutor's investigation initiation and indictment process. On June 11, the Seoul Central District Court's Criminal Division 21, presided over by Judge Kim Dae-kyu, ruled to dismiss the charges against Kwon, who was indicted for violating attorney law. A dismissal occurs when the court finds that the indictment process violates legal provisions, thus concluding the case without examining the facts. The court determined that the prosecution had initiated an investigation into a case that did not legally permit direct investigation at the time, and that the transfer of the case between police and prosecutors was also improper. Kwon was indicted in August 2024 for allegedly performing legal work as an advisor to Hwacheon Daeyu, a company linked to private developer Kim Man-bae, without being registered with the Korean Bar Association from January to August 2021. Prosecutors argued that during this period, Kwon analyzed civil appeals and administrative lawsuits related to Hwacheon Daeyu and provided legal documents and strategies, thus performing attorney duties. According to the prosecution, Kwon received 150 million won (approximately $130,000) in advisory fees. Hwacheon Daeyu has faced allegations of favoritism in the Daejang-dong development project. As part of the investigation into corruption related to this project, prosecutors also examined Kwon's advisory role at Hwacheon Daeyu. The attorney law prohibits individuals from handling legal matters or providing legal advice for compensation without being registered with the Bar Association. In April, during the closing arguments, prosecutors sought a one-year prison sentence for Kwon, stating that the violation of attorney law by a former Supreme Court Justice was a serious matter. However, the court focused on the legality of the investigation procedures rather than the substance of the allegations. The court ruled that Kwon's alleged violation of attorney law did not constitute a crime that allowed for the initiation of a direct investigation by prosecutors under the Prosecutor's Office Act, which permits direct investigations only for certain serious crimes, such as corruption and economic crimes, and does not include violations of attorney law. The court noted, "For a prosecutor's investigation initiation rights to be recognized, the crime must be one that the prosecutor has cognizance of; however, the alleged violation of attorney law in this case was merely included in a complaint and not recognized by the prosecutor." Prosecutors had received a complaint from a civic group in September 2021 and investigated Kwon twice as a suspect. The case was then transferred to the Gyeongnam Southern Police Agency in January 2022, with prosecutors reportedly believing that the allegations did not fall under the scope of direct investigation at that time. The police returned the case to prosecutors in September 2023, and after further investigation, Kwon was indicted. The charges related to the Public Officials Ethics Act were dismissed due to insufficient evidence. During the trial, prosecutors argued that since Kwon's actions were related to the Daejang-dong case, the investigation rights should be recognized, but this was not accepted by the court. The court also questioned the legality of the police's re-transfer of the case, stating that transferring the case to prosecutors merely because it needed to be reviewed in conjunction with other Daejang-dong cases did not meet the legal criteria for necessary transfer. The court emphasized, "Considering the intent of the investigation rights adjustment between the police and prosecutors, circumventing the prosecutor's investigation initiation rights is not permissible," and concluded that the prosecutor's investigation was illegal due to the lack of proper initiation and closure of the investigation by the police. The court ruled that the indictment based on this illegal investigation was also unlawful and void. However, it did not determine whether Kwon actually violated attorney law. Questions regarding whether Kwon's advisory role at Hwacheon Daeyu constituted legal work under attorney law and whether the 150 million won received was considered attorney fees remain unresolved without a substantive ruling. This ruling marks the first court decision regarding Kwon's advisory role at Hwacheon Daeyu, with the court dismissing the indictment based on issues related to the prosecutor's investigation rights rather than addressing the violation of attorney law. After the ruling, Kwon expressed gratitude to the court for its courageous declaration of the law, stating, "The distortion of the law for political purposes and the creation of crimes should no longer be tolerated."* This article has been translated by AI. 2026-06-11 13:33:00 -
Korea's job decline exposes weakness beneath chip boom SEOUL, June 11 (AJP) - South Korea’s employment rate fell by the steepest pace in five years as weakness in manufacturing and youth hiring exposed the limited spillover from a recovery increasingly driven by memory chip exports. According to data released Thursday by Ministry of Data and Statistics, the employment rate for people aged 15 and older fell 0.5 percentage point to 63.3 percent, marking the sharpest decline since February 2021. The number of employed people aged 15 and older was tallied at 29.12 million in May, 40,000 short from a year earlier, It marked the first year-on-year decline in employment since December 2024. Manufacturing was at the center of the downturn. The number of manufacturing jobs fell by 140,000 from a year earlier to 4.295 million. Employment in agriculture, forestry and fisheries dropped by 121,000, while professional, scientific and technical services shed 89,000 jobs. Health and social welfare services, a sector reliant on senior and temporary hires, added 212,000 jobs, but the gains were not enough to offset losses in manufacturing, agriculture and higher-value service sectors. Youth employment deteriorated sharply. The number of employed people aged 15 to 29 fell by 255,000 from a year earlier to 3.427 million, while the youth employment rate dropped 2.4 percentage points to 43.8 percent. The youth unemployment rate rose 0.6 percentage point to 7.2 percent. The decline in manufacturing jobs, combined with weakness in professional and technical services, appears to have further narrowed opportunities for young people entering the labor market. The composition of employment also weakened. The economically inactive population increased by 264,000 from a year earlier to 15.986 million. Regular employees declined by 7,000 and temporary workers by 121,000. Instead, the number of daily workers rose by 14,000. The weak labor market data stand in stark contrast to robust headline exports and economic growth. Exports jumped 53.2 percent from a year earlier to $87.75 billion in May, while imports rose 20.8 percent to $60.8 billion, leaving a trade surplus of $26.95 billion. Monthly exports topped $80 billion for a third consecutive month for the first time, setting a fresh record. The divergence highlights the increasingly concentrated nature of South Korea's recovery. While exports continue to reach new highs, much of the growth has been driven by semiconductors and data center-related demand, sectors that generate relatively few jobs compared with traditional manufacturing industries. Exports excluding semiconductors rose 16.4 percent from a year earlier, while exports excluding both semiconductors and computers increased 9.5 percent — far below the 53.2 percent increase in overall exports. Outbound shipments from traditional job-intensive sectors continued to struggle. Automobile exports fell 5.9 percent from a year earlier in May, while steel exports declined 2.1 percent. A Bank of Korea official said at an April 23 briefing that growth in industries excluding semiconductors was estimated at around 0.9 percent, roughly half of the economy's 1.8 percent expansion in the first quarter. The figures suggest that record semiconductor exports mask worsening in much parts of the domestic economy. Semiconductors are highly capital-intensive, limiting the extent to which higher production translates into employment gains. According to the Bank of Korea's Economic Statistics System (ECOS), the semiconductor sector generates about 2.0 jobs per 1 billion won ($656,000) of output, less than half the 4.3 jobs generated by the automobile industry. The weak labor market data added to pressure on already fragile financial markets. The benchmark KOSPI fell more than 2 percent, while the Korean won weakened 3.60 won to 1,528.1 against the U.S. dollar. The yield on three-year government bonds edged up to 3.88 percent as of 11:30 a.m. 2026-06-11 13:29:51