Lee hosts U.S., Chinese economic chiefs ahead of Trump-Xi summit SEOUL, May 13 (AJP) - President Lee Jae Myung on Wednesday had back-to-back meetings with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, who visited South Korea just a day before the scheduled U.S.-China summit in Beijing. According to the presidential office, Lee met He and Bessent separately on Wednesday morning. Following their meetings with the president, the two officials united at Incheon International Airport for last-minute fine-tuning ahead May 13, 2026

KDI bumps up 2026 growth estimate to 2.5%, chips drive half of upgrade SEOUL, May 13 (AJP) -State think tank Korea Development Institute on Wednesday projected South Korea’s economy to grow at its fastest pace in three years at 2.5 percent this year, while inflation is expected to accelerate to 2.7 percent — a combination suggesting the economy may sidestep stagflation fears for now even as growth momentum is likely to cool next year alongside moderating chip demand. At the same time, the institute warned inflation risks were intensifying f May 13, 2026

U.S. appeals court revives Trump tariff, renewing uncertainty for Korean Inc. SEOUL, May 13 (AJP) - A U.S. federal appeals court ruling temporarily reinstating the Trump administration’s 10 percent global tariff has created fresh uncertainty for South Korean exporters and the $350 billion investment commitment underpinning Seoul’s trade deal with Washington. The ruling came just days after a lower court declared the 10 percent global tariff unlawful. The U.S. Court of Appeals for the Federal Circuit issued the administrative stay Tuesday, accor May 13, 2026

US treasury secretary arrives in Seoul SEOUL, May 13 (AJP) - U.S. Treasury Secretary Scott Bessent arrived in Seoul on Wednesday for talks with a Chinese official, just a day ahead of U.S. President Donald Trump's visit to Beijing for a summit with Chinese President Xi Jinping. Bessent is set to meet with South Korean President Lee Jae Muing at Cheong Wa Dae in the morning before holding talks with visiting Chinese Vice Premier He Lifeng later in the day. He is also expected to meet with South Korean Finance Minis May 13, 2026

Seoul signals phased support for US-led Hormuz mission SEOUL, May 13 (AJP) -South Korea has told the United States it is willing to consider a phased contribution toward restoring safe passage through the Strait of Hormuz, Defense Minister Ahn Gyu-back said Tuesday. Seoul conveyed to Washington that it would “participate as a responsible member of the international community” and review “step-by-step contribution measures” related to the reopening and protection of maritime traffic through the strategic waterway May 13, 2026

South Korea outpaces peers in Q1 growth; structural risks persist SEOUL, May 12 (AJP) — The South Korean economy was the best performer among major economies in the first quarter of this year, benefiting from a base effect from a contraction in the fourth quarter of last year and chip boom. South Korea's real gross domestic product (GDP) increased by 1.7 percent in the first quarter from the previous quarter - the highest growth rate among the 22 countries that have released first-quarter flash estimates as of Monday. This outper May 12, 2026

Policy chief floats 'AI dividend' concept amid AI boom in Korea SEOUL, May 12 (AJP) - South Korea's top presidential policy aide floated the idea of a national "AI dividend" on Tuesday, proposing that part of the massive profits and tax windfall expected from the artificial intelligence and semiconductor boom be structurally shared with the broader public. Presidential policy chief Kim Yong-beom argued in a social media post that the emerging AI boom was not created solely by individual firms, but by decades of national investment May 12, 2026

Seoul hints at fiscal expansion for H2 and 2027, sending bond yields to hike-cycle highs SEOUL, May 12 (AJP) — President Lee Jae Myung on Tuesday openly challenged the long-held policy rationale for fiscal tightening to rein in South Korea’s highly leveraged economy, signaling a more expansionary fiscal stance for the second half of this year and 2026 as growth concerns deepen amid prolonged Middle East tensions. “This is a time for investment to bolster growth potential,” Lee said during an emergency cabinet meeting, ordering the government to May 12, 2026

Fuel shock pushes Korean LCCs back into pandemic-like survival mode SEOUL, May 12 (AJP) - A spike in fuel prices, war-related travel restrictions and passenger jitters are pushing South Korea's budget carriers back into pandemic-era survival mode, forcing them to delay hiring as well as streamlining payrolls and flights as they try to ride out the Gulf crisis. Jin Air, a low-cost carrier under Korean Air, has informed 50 newly hired cabin crew members that they will start work in the fall instead of this week as originally planned, citing " May 12, 2026

Seoul walks tightrope at Korea-U.S. defense talks amid Hormuz crisis SEOUL, May 12 (AJP) - South Korea and the United States used their first defense ministerial meeting in six months to steady alliance coordination at a moment when the widening Iran conflict and mounting U.S. pressure over the Strait of Hormuz are testing Seoul’s strategic balancing act. The talks between South Korean Defense Minister Ahn Gyu-back and U.S. Secretary of War Pete Hegseth at the Pentagon came as Washington intensifies calls for allies, including Seoul, to play a May 12, 2026