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Mexico Raises Concerns Over Higher Auto Tariffs in US Trade Talks Mexico has raised concerns in trade negotiations with the United States, arguing that its cars face a higher tariff burden compared to vehicles from South Korea and Japan. On June 9, Bloomberg reported that the Mexican government highlighted to U.S. officials that its cars exported to the U.S. incur an average effective tariff rate of 18.75%, which is higher than the 15% tariff applied to some vehicles from South Korea and Japan. Mexico contends that it is unreasonable for its cars, which are produced in a USMCA member country, to bear a higher tariff while competing against vehicles from South Korea and Japan in the U.S. market. Under current USMCA regulations, Mexican cars and certain parts imported into the U.S. are subject to nominal tariffs of up to 25%. However, no tariffs are applied to U.S.-made parts included in the vehicles, meaning the actual tariff rate varies based on the composition of parts in each vehicle. Mexican vehicles that do not meet USMCA requirements face an additional 25% tariff along with a 2.5% Most-Favored-Nation (MFN) tariff. The Mexican automotive industry has also argued that proving the origin of parts incurs additional costs. Marcelo Ebrard, Mexicos Secretary of Economy, stated at an event last month, The U.S. applies a flat 15% tariff to major competitors like South Korea and Japan in the automotive sector without requiring proof of origin. These countries can freely use the parts they want. Jamieson Greer, a representative from the Office of the United States Trade Representative (USTR), and his staff reportedly acknowledged to the Mexican delegation that Mexican cars should have a more favorable position compared to vehicles from other countries and that alternatives are being considered. However, Bloomberg noted that the U.S. side did not fully agree with the data presented by the Mexican negotiators. Mexico is the largest trading partner of the U.S., with its automotive industry accounting for 4.5% of the countrys GDP. However, rising costs due to President Trumps tariff policies have led some companies to reassess the economic viability of production in Mexico. Nissan announced plans to halt production at its Compass plant in Mexico last October. While the U.S. and Mexico are discussing auto tariffs and origin rules in the USMCA review negotiations, progress has been slow. Diego Marroquín, a researcher at the Center for Strategic and International Studies (CSIS) in Washington, predicted that given President Trumps America First trade policy, it would be challenging to eliminate or reduce tariffs. However, he suggested that a compromise could involve requiring a certain percentage of U.S.-made parts or value-added labor to qualify for tariff exemptions.* This article has been translated by AI. June 10, 2026 14:39 -
KOSPI Rebounds Over 8% to Near 8100 After Previous Day's Plunge The KOSPI index surged more than 8% on June 9, recovering from the previous days sharp decline and approaching the 8100 mark. The rebound was fueled by a significant rise in U.S. semiconductor stocks and a recovery in investor sentiment following a reduction in geopolitical risks in the Middle East, leading to a wave of bargain buying by institutional investors. According to the Korea Exchange, the KOSPI closed at 8096.93, up 612.52 points (8.18%) from the previous trading day. The index experienced a rapid increase early in the session, triggering a temporary trading halt due to program buying. Although it gave back some gains, buying pressure returned after the lunch break, boosting momentum. In the securities market, institutions were net buyers of 24.98 trillion won, driving the index higher. In contrast, foreign and individual investors sold a net 2.02 trillion won and 615.2 billion won, respectively. The market showed strength across various sectors due to the influx of bargain buying, although some differentiation among sectors emerged during the process of digesting the recent volatility. Notably, the semiconductor sector saw significant gains. Expectations for improved earnings driven by increased investment in artificial intelligence (AI) data centers, combined with bargain buying following recent declines, were supported by the strong performance of U.S. semiconductor stocks. Samsung Electronics rose 8.97% to close at 322,000 won, while SK Hynix surged 15.91% to finish at 2,215,000 won. Other notable gainers included SK Square, which rose 13.51%, and Hanmi Semiconductor, which increased by 9.07%. Stocks related to domestic consumption also performed well. Expectations for domestic economic recovery and improved earnings forecasts due to an increase in foreign visitors contributed to gains for Hyundai Department Store (12.25%), Shinsegae (9.09%), A.P. (10.79%), and Amorepacific (6.67%). Conversely, stocks that had surged recently due to expectations of collaboration with NVIDIA faced profit-taking, resulting in declines. NAVER fell 7.89%, LG Electronics dropped 7.46%, LG CNS decreased by 7.04%, and Hyundai AutoEver declined 8.64%. The KOSDAQ index also rose, closing at 967.81, up 56.42 points (6.19%) from the previous day. In the KOSDAQ market, foreign and institutional investors were net buyers of 311.3 billion won and 201.4 billion won, while individual investors sold a net 512.1 billion won. Among the top market capitalization stocks, Alteogen (12.78%), Rino Industry (16.33%), Kolon TissueGene (15.23%), Peptron (6.29%), EcoPro BM (4.95%), EcoPro (2.09%), Rainbow Robotics (2.13%), JUSUNG Engineering (4.87%), and Samchundang Pharm (1.46%) all rose, contributing to the indexs rebound. Lee Kyung-min, a researcher at Daishin Securities, noted, The domestic market plummeted the previous day due to rising U.S. Treasury yields, a sharp drop in U.S. semiconductor stocks, and escalating military conflicts in the Middle East. However, today, bargain buying has led to a rebound in both the KOSPI and KOSDAQ. He added, U.S. semiconductor stocks have recovered from their declines based on expectations for the AI investment cycle, and the easing of tensions between Iran and Israel has also positively influenced investor sentiment. He further stated, A rebound is occurring primarily among large semiconductor stocks that had seen significant declines, and the recent concentration on large-cap stocks appears to be easing.* This article has been translated by AI. June 9, 2026 15:51 -
Hana Asset Management Launches Hyundai and Kia ETF Amid AI Focus Jensen Huang, CEO of NVIDIA, has declared that the next phase of AI is Physical AI. As we enter the era of Physical AI, South Korean companies with global manufacturing competitiveness, particularly Hyundai and Kia, are increasingly standing out in the market, said Kim Tae-woo, CEO of Hana Asset Management, during a press conference on June 9 in Seoul. Investor interest has recently shifted from major semiconductor stocks like Samsung Electronics and SK Hynix to the Hyundai Group. As Physical AI emerges as the next growth axis in the AI industry, the launch of exchange-traded funds (ETFs) featuring Hyundai and Kia is gaining momentum. On this day, Hana Asset Management launched the 1Q Hyundai Kia Bond Mixed 50 ETF. This product invests 25% each in Hyundai and Kia, totaling 50%, while the remaining 50% is allocated to government bonds and monetary stabilization securities with a maturity of six months or less. It tracks the KEDI Hyundai & Kia Bond Mixed 50 Index and has a total expense ratio of 0.10% per year. The structure of the ETF is also notable for targeting retirement pension investors. While the investment in risk assets is limited to 70% in retirement pension accounts, this product, as a second-generation bond mixed ETF reflecting retirement pension supervision regulations, is not subject to risk asset investment limits, allowing for a maximum 100% allocation within retirement pension accounts. Additionally, when investing alongside stock ETFs like 1Q 200 Active, the stock exposure in retirement pension accounts can be increased to as much as 85%. Kim Seung-hyun, head of the ETF and Quant Solutions Division, emphasized, At this point, the core of the AI wave is Physical AI. The Hyundai Group, with its global manufacturing competitiveness, particularly Hyundai and Kia, is at the center of this development. He further described the product as one that combines the advantages of stocks and bonds by investing in both companies and short-duration bonds. As the perception of Hyundai Group as a leading beneficiary of Physical AI spreads, competition among asset management firms to launch ETFs is intensifying. On the same day, Samsung Asset Management also launched the KODEX Hyundai Robotics Value Chain TOP3 Plus ETF, which includes Hyundai, Kia, Hyundai Mobis, Hyundai AutoEver, and Hyundai Glovis.* This article has been translated by AI. June 9, 2026 15:51 -
KG Group to Return Half of Profits to Shareholders Over Next Five Years KG Group announced that it will return half of its net profits to shareholders over the next five years, focusing on a robust shareholder return policy while presenting long-term growth strategies. The company aims to prioritize the normalization of its undervalued corporate worth as a key management task.On June 9, KG Group held a press conference in Yeouido to unveil its long-term management plan.The event featured CEOs from six major listed subsidiaries, including KG Chemical, KG Eco Solutions, KG Mobility (KGM), KG Steel, KG Inicis, and KG Financial, who each shared their future development strategies.The subsidiaries plan to increase their total shareholder return rate to 50% over the next five years. This decision stems from the belief that the market value does not adequately reflect the companies solid performance and financial health. Chairman Kwak Jae-sun stated, We have decided to return 50% of our net profits to shareholders, and we promise that all six listed companies and K Car will maintain this commitment for five years.To achieve this, KGM will focus on two tracks: eco-friendly vehicles and the KD (knock-down) assembly business, aiming to sell 200,000 units and generate over 10 trillion won in revenue by 2030. The company plans to sequentially launch seven types of eco-friendly SUVs, including pure electric vehicles (EVs), hybrids (HEVs), and plug-in hybrids (PHEVs). Additionally, KGM will target the Middle East and Southeast Asia as key markets for its KD business.KGM CEO Hwang Gi-young announced, We will start operations at our KD factory in Vietnam this September, adding that plans for Bangladesh, Myanmar, and Cambodia are still under consideration. Chairman Kwak also mentioned, We recently launched the Musso in Chile, and our executive is currently in Brazil and Colombia, working with various partners to begin certification processes for our KD business in Latin America.Furthermore, KG Group is pursuing synergy strategies with K Car, the largest direct-used car platform company in South Korea, which is set to join the group. In April, KG Steel agreed to acquire a 400 billion won stake in K Car from Han & Co Auto Service. K Car will be fully integrated into KG Group as of June 30.This integration will allow KGM to enhance its certified used car business by leveraging K Cars capabilities, expanding its offerings to a wider range of vehicle brands. Additionally, K Car, which absorbed Joy Rent-a-Car in 2020, is expected to incorporate KGM vehicles into its corporate leasing and rental sectors. Chairman Kwak emphasized, KGM must continue to invest, and in that sense, K Car is a financially stable company, so investing in it will create synergies.* This article has been translated by AI. June 9, 2026 14:03 -
Toss FacePay Surpasses 6 Million Users, 60% Continue to Use Service Viva Republica, the company behind Toss, announced on June 9 that its facial recognition payment service, FacePay, has surpassed 6 million registered users.The rapid increase in available merchants and a growing rate of actual transactions have led to assessments that facial recognition payments are becoming a mainstream offline payment method.The number of FacePay users doubled in just three months, rising from 3 million in February to 6 million in May. The user count reached 4 million in March and 5 million in April.User engagement is also expanding. According to Toss, 60% of users who have made at least one payment with FacePay continue to use the service regularly.The payment infrastructure is also growing quickly. As of early June, the number of merchants equipped with Toss front terminals for FacePay transactions exceeded 370,000. The service is now available in 226 cities and districts nationwide, including cafes, restaurants, convenience stores, bookstores, rest areas, and auto repair shops.Toss attributes the increase in users to the expansion of merchant partnerships and ongoing improvements in payment speed and facial recognition accuracy.A Toss representative stated, This growth trend shows that facial recognition payments are establishing themselves as a common payment method beyond just a new technology. We will continue to enhance our technology and services to allow more users to experience facial recognition payments seamlessly.* This article has been translated by AI. June 9, 2026 09:06 -
DB Insurance Surpasses 650,000 Sign-Ups for Pedestrian Accident Coverage DB Insurance announced on June 9 that its Pedestrian Accident Legal Consultation Fee Support Special Clause, developed in collaboration with attorney Han Moon-cheol, has surpassed 650,000 sign-ups just nine months after its launch. Introduced in August 2025, this special clause is designed to provide professional legal assessments regarding liability and fault in pedestrian accidents involving vehicles. It covers a wide range of pedestrian incidents, including those involving bicycles and personal mobility devices. The coverage applies to personal auto insurance and limited-use business vehicle insurance, specifically for accidents that occur during the operation, use, or management of the insured vehicle, resulting in death or injury to pedestrians. The coverage structure reimburses up to 500,000 won for actual expenses incurred when obtaining legal advice and an advisory opinion letter. Additionally, if a lawyer is hired directly to proceed with litigation without an advisory opinion, 10% of the attorneys fees will be supported. This design aims to reduce the accessibility barriers to legal advice regarding disputes over fault in pedestrian accidents, thereby alleviating the burden on drivers when responding to incidents and encouraging more sign-ups. Since its launch, the program has averaged about 76,000 new sign-ups per month. A representative from DB Insurance stated, We will continue to expand products and services that ensure peace of mind for both drivers and pedestrians. DB Insurance has been collaborating with attorney Han Moon-cheol since 2022.* This article has been translated by AI. June 9, 2026 09:03 -
Discussions Intensify on Expanding Emergency Auto Insurance Services in Remote Areas Major property and casualty insurers are set to engage in follow-up discussions aimed at expanding emergency auto insurance services for residents in island and mountainous regions. This initiative comes in response to concerns raised during last years National Assembly audit, where it was highlighted that subscribers in these areas pay the same premiums as urban residents but are excluded from emergency service coverage. According to reports from the National Assembly on June 8, a forum is scheduled for July to discuss the expansion of emergency services in remote areas. Participants will include representatives from insurance companies, the Korea Insurance Association, relevant government agencies, and towing and repair firms to explore specific operational plans. Initial discussions were intended to occur before the local elections, but were delayed due to the election schedule. Previously, five major insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, Hanwha General Insurance, KB Insurance, and DB Insurance—expressed their intention to revise their policies to include coverage for island and mountainous regions. During the National Assembly audit, it was pointed out that vehicle breakdowns, such as battery failures, flat tires, and emergency refueling, can occur regardless of location, yet some insurers classify remote areas as service exclusion zones, causing inconvenience for subscribers. However, challenges remain before implementation. Emergency services are not provided directly by insurers but are operated through partnerships with local towing and repair companies. The lack of infrastructure in mountainous areas and the need for ferry transport in island regions complicate the application of existing operational models. The National Assembly and the insurance industry have completed preliminary data collection through the Ministry of the Interior and Safety and the Ministry of Oceans and Fisheries, and are currently reviewing potential service areas, operational methods, and cost-sharing structures. Key issues include the transportation of tow trucks by ferry, response systems after passenger ferry operations cease, and additional cost-sharing measures. Ultimately, the focus of these discussions is not merely on whether to introduce the service, but on establishing a sustainable operational framework. Alongside policy revisions, discussions will also cover rate calculations, securing partner companies, and cost-sharing strategies. An industry representative stated, We agree on the need to address the issue of neglect faced by subscribers in island and mountainous regions, but emphasized that practical reviews considering infrastructure, transportation, and cost issues are necessary. June 8, 2026 15:15 -
BYD Korea Expands Daegu Service Center to Enhance EV After-Sales Network BYD Korea announced on June 8 that it has relocated and expanded its BYD Auto Daegu Service Center to strengthen its after-sales service (AS) capabilities for electric vehicles in the Yeongnam region. The Daegu Service Center opened in January 2025, coinciding with the launch of BYD Koreas passenger vehicle division. It was one of the initial AS hubs established to enhance customer satisfaction and trust. This expansion, occurring approximately 1 year and 5 months after its opening, aims to significantly improve after-sales service capabilities based on initial operational experiences. GNB Mobility, BYD Koreas official dealer, decided to relocate and expand the service center in response to the rapidly increasing demand for AS services, which has surged alongside the growing distribution of BYD vehicles in South Korea. The newly opened BYD Auto Daegu Service Center offers specialized one-stop services for electric vehicles. It spans approximately 971 square meters and features work bays capable of servicing up to five vehicles simultaneously. A dedicated area for high-level battery maintenance has also been established. To enhance customer flow and work efficiency, the customer reception area, service reception, and large parts warehouse are interconnected. The two-story design includes a premium customer lounge and office space on the second floor. The BYD Auto Daegu Service Center is strategically located near major highways, including the Daegu-Busan Expressway and Gyeongbu Expressway, improving connectivity with regions such as Gyeongsan, Yeongcheon, and Pohang. A representative from GNB Mobility stated, We pursued this expansion based on our operational experience at the previous location, creating a space that ensures customer safety and trust beyond just vehicle repairs. According to the Korea Imported Car Association, BYDs sales reached 1,032 units last month, marking the third consecutive month of sales exceeding 1,000 units. Since officially starting sales in April 2025, BYD has surpassed a cumulative total of 10,000 units by April 2026, achieving the fastest cumulative sales milestone for imported vehicles in South Korea. Thanks to the increase in sales, BYD Korea plans to establish a total of 26 service centers by the end of this year. A BYD Korea representative remarked, The relocation and expansion of the Daegu Service Center is part of our efforts to rapidly enhance customer touchpoints and service capabilities. We will continue to improve both quantitatively and qualitatively to provide a reliable service environment nationwide. * This article has been translated by AI. June 8, 2026 09:33 -
Why Xi Jinping Cannot Abandon Taiwan During a summit between U.S. President Donald Trump and Chinese President Xi Jinping, Taiwan emerged as the most discussed and sensitive topic. Trump himself revealed that Xi asked whether the U.S. would defend Taiwan, indicating that Taiwan was at the forefront of Xis concerns, despite discussions on tariffs, trade, and supply chains.China has long referred to the Taiwan issue as a core interest, but its obsession has intensified recently, primarily because Taiwan has become the heart of the global artificial intelligence (AI) industry.Until a few years ago, the Taiwan issue was mainly interpreted through the lenses of history, nationalism, and territorial sovereignty. While these factors remain significant, under Xis regime, the great rejuvenation of the Chinese nation is not merely a slogan for economic growth; it is a political project aimed at achieving unification with Taiwan by 2049, the centenary of the founding of the Peoples Republic of China. For the Chinese Communist Party, Taiwan is not just an island but a symbol tied to its legitimacy. However, Taiwan now also represents a strategic asset in the realm of AI supremacy.Today, the global AI industry cannot function without Taiwan. NVIDIAs AI semiconductors, as well as servers from Apple and Meta, and Teslas autonomous driving systems, all rely on advanced processes from Taiwans TSMC. No matter how well U.S. tech companies design their products, they depend on Taiwan for production, making Taiwan the focal point of the worlds cutting-edge semiconductor supply chain.Interestingly, the situation is similar for China. Amid U.S. semiconductor sanctions, China has been advocating for an AI ecosystem without NVIDIA, yet many AI semiconductors developed by Chinese companies still rely on TSMCs production lines. Even the AI vehicle chips showcased by Chinese semiconductor firms at the Beijing International Auto Show were noted to be produced using TSMCs 4-nanometer process.Ultimately, both the U.S. and China, as well as the entire global AI industry, are dependent on Taiwan. This is why Xi cannot abandon Taiwan. While Taiwan was once a political symbol, it has now become a strategic asset for future industries. Semiconductors are no longer just components; they are critical infrastructure that influences military power, economic strength, and AI competitiveness. For Xi, Taiwan is a territory that must be unified and a technological hub that cannot be surrendered to the U.S.Another crucial aspect is the Chinese leaderships perception of time. While U.S. policies can shift dramatically with elections, China operates on a 10- to 20-year timeline. There is a strong belief within China that time is on Chinas side. In fact, economic ties between China and Taiwan have deepened significantly, with cross-strait trade volumes increasing substantially over the past decade and industrial connections strengthening.Xis regime is also solidifying its long-term governance structure. China has entered a new five-year plan, and discussions suggest that Xis leadership could continue beyond 2027. This indicates that Taiwan strategy is not a short-term event but a long-term project.The challenge is that as the AI era progresses, Taiwans strategic value will only increase. Just as past struggles over oil shook the Middle East, future competition over semiconductors is likely to disrupt East Asia, with Taiwan at its center.In 1954, Mao Zedong stated, The most important issue in U.S.-China relations is the Taiwan issue, and it is a long-term problem. Nearly 70 years later, that statement remains largely true. The difference now is that while Taiwan was once a geopolitical issue of the Cold War, it has become a key engine of the global economy in the AI era.This is why Xi cannot relinquish Taiwan—not just for territorial reasons, but because the future world order hinges on that island.* This article has been translated by AI. June 5, 2026 16:36 -
South Korea pushes hydrogen trucks in final pitch for Canada's submarine race SEOUL, June 5 (AJP) - South Korea has proposed a multibillion-dollar hydrogen truck project in Canada as part of its final push to win Ottawa's next-generation submarine contract, turning an earlier request for automotive investment into a broader industrial package centered on hydrogen mobility, local manufacturing and jobs. The proposal, code-named "Project Beaver," was disclosed by Presidential chief of staff Kang Hoon-sik in an interview with Canada's CTV News, as a South Korean government-led consortium intensifies last-minute efforts ahead of Canada's final decision by the end of June. According to CTV News, South Korea has offered to invest 3.1 billion Canadian dollars to build a hydrogen truck ecosystem in Canada if Hanwha Ocean wins the Canadian Patrol Submarine Project, or CPSP. The project would use Hyundai Motor's hydrogen vehicle technology and include a liquefied hydrogen plant in British Columbia, 32 hydrogen refueling stations in British Columbia and Alberta, and a hydrogen vehicle manufacturing plant in Ontario. More than 160 additional refueling stations would be built after 2035. Kang said the project would create about 9,000 jobs in Canada and help build a local hydrogen truck industry. "It will be a Korean brand that uses Canadian raw materials and Canadian-made parts in the manufacturing process," Kang said. "Once we win the submarine contract, Hyundai Motor will help Canada build its hydrogen ecosystem." The proposal adds a new layer to South Korea's submarine bid, which has increasingly become a competition over industrial benefits as much as naval capability. Hanwha Ocean, together with HD Hyundai Heavy Industries, is competing against Germany's Thyssenkrupp Marine Systems, or TKMS, for Canada's plan to acquire up to 12 conventionally powered submarines to replace its aging Victoria-class fleet. From the early stages of the race, Canadian officials made clear that the winning bidder would be judged not only on submarine performance, but also on what kind of economic return it could bring to Canada. In February, Stephen Fuhr, Canada's special envoy for defense procurement, visited Hanwha Ocean's Geoje shipyard and toured a KSS-III submarine undergoing sea trials. "Both South Korea and Germany are automotive manufacturing nations," Fuhr said during the visit. "If there are areas where we can cooperate in sectors like automobiles, we are looking to pursue broader partnerships that go beyond defense." The message reflected Canada's effort to protect and revive its auto industry at a time of U.S. tariff pressure, production cuts and uncertainty over the future of North American supply chains. Reuters reported in January that Kang traveled to Canada with officials and executives from Hyundai Motor, Hanwha and HD Hyundai to lobby for the submarine project. At the time, Hyundai Motor said it had no current plan to build a car factory in Canada, but was exploring other partnerships, particularly in hydrogen. Project Beaver appears to be Seoul's answer to that industrial demand. Kang told CTV that South Korea chose hydrogen trucks, rather than consumer electric vehicles, partly because of U.S. pressure on automakers and growing Chinese competition in Canada's EV market. He cited the case of Stellantis, which announced last year that it would move production of a Jeep model from Ontario to Illinois, saying Korean companies face similar pressure from the U.S. "The U.S. told them it would be more advantageous to come to the U.S.," Kang said, referring to Stellantis. "South Korean companies are under similar pressure." He also said it would be difficult for Korea to compete directly with China in the EV sector, given Beijing's strength in electric vehicles and Canada's ties with China on EV imports. Project Beaver could mark a renewed attempt by Hyundai to expand its hydrogen business in North America, this time through heavy-duty trucks and infrastructure rather than passenger cars. Hydrogen has been one of Hyundai Motor Group chairman Chung Eui-sun's key future strategies, with the group declaring 2040 as the target year for the mass adoption of hydrogen energy. But progress has been limited, partly due to the rapid rise of Chinese EV makers and the slow expansion of hydrogen refueling infrastructure. Still, Hyundai has continued to build a track record in commercial hydrogen mobility. Its XCIENT Fuel Cell Truck has already surpassed 20 million kilometers of accumulated driving in Europe, while its North American operations have logged about 1.6 million kilometers since 2023. The proposal suggests Hyundai may be seeking a more practical route into Canada's mobility market by focusing on long-haul freight, where hydrogen is seen as more competitive due to shorter refueling times and longer driving ranges compared with battery-only trucks. June 5, 2026 16:07 -
South Korea and Serbia Finalize First Free Trade Agreement in the Balkans South Korea has reached an agreement with Serbia on a Comprehensive Economic Partnership Agreement (CEPA), marking the first free trade agreement (FTA) in the Balkans. This deal is expected to enhance opportunities for South Korean companies in the Western Balkans and European markets, while expanding the foundation for cooperation in supply chains and future industries such as minerals. The Ministry of Trade, Industry and Energy announced that Yeo Han-goo, head of the Trade Negotiation Headquarters, officially declared the conclusion of the CEPA negotiations with Serbias Minister of Internal and Foreign Trade, Jagoda Lazarević, in Belgrade on June 5 (local time). The CEPA negotiations were initiated during the 2023 Korea-Serbia summit. Following the start of negotiations in September 2024, the first official talks were held in December of the same year, culminating in the completion of discussions across 12 chapters. Serbia, emerging as a manufacturing hub in Europe, boasts an extensive network of FTAs and is gaining attention as a new partner amid rising costs in major Eastern European production centers. The agreement is expected to foster collaboration in various sectors, including automotive, information technology, renewable energy, and nuclear power. South Korean mobility companies, including domestic auto parts manufacturers, have already been actively entering the Serbian market. Additionally, there are expectations for expanded cooperation in advanced industry supply chains utilizing lithium and other materials. Serbia is home to the Zadar project, one of Europes largest lithium deposits. As China weaponizes key minerals like rare earth elements, the need for supply chain diversification through collaboration with Serbia is becoming increasingly important. The Korea-Serbia CEPA is based on a high level of market openness. Both parties agreed to eliminate tariffs on over 90.2% of items by number and over 96% by import value. Furthermore, Serbia, which is not a member of the World Trade Organizations Information Technology Agreement (ITA), has committed to abolishing tariffs of up to 25% on semiconductor and electronic products. The agreement opens the market for eco-friendly vehicles, including electric and hybrid cars, and eliminates tariffs on all automotive parts immediately. With expectations for growth in exports of consumer goods like K-food and K-beauty to Europe, tariffs on these items will also be removed. Moreover, tariffs on Serbian lithium, cobalt, nickel, graphite, and rare earth elements will be eliminated immediately or within five years. This is anticipated to stabilize the supply chain for key raw materials in South Koreas advanced industries, such as batteries and semiconductors. Tariffs on feed and processed corn, which account for over 40% of Serbias exports to Korea, will be eliminated immediately and over ten years, respectively. However, market access for sensitive agricultural products like rice, natural honey, strawberries, and other fruits, meat, and dairy products will be minimized to achieve a balance of mutual benefits. Additionally, agreements were reached on origin rules, expedited customs and trade facilitation, intellectual property protection, technical regulations (TBT), and sanitary and phytosanitary measures (SPS), as well as economic cooperation. The government plans to swiftly proceed with follow-up procedures for formal signing, including legal reviews and translations of the agreement, and to ensure a smooth process for economic impact assessments and parliamentary ratification. Yeo Han-goo stated, The conclusion of the Korea-Serbia CEPA will serve as a stepping stone to elevate economic cooperation with Serbia, a key partner in the Western Balkans. In the rapidly changing trade environment marked by the spread of protectionism and the restructuring of global supply chains, this agreement is significant not only for market openness but also for building a cooperative platform in future industries such as supply chains, energy and minerals, AI, and biotechnology.* This article has been translated by AI. June 5, 2026 11:03 -
Kioxia Surpasses Toyota, Nvidia Dominates Apple as Semiconductor Sector Reshapes Market Caps in Korea, U.S., and Japan ◆ Ajou Economics Major News ▷ Kioxia Surpasses Toyota, Nvidia Dominates Apple… Semiconductor Sector Reshapes Market Caps in Korea, U.S., and Japan - The semiconductor sector is gaining prominence in the Korean stock market as the benefits of artificial intelligence (AI) concentrate in this industry. Samsung Electronics, once viewed primarily as a smartphone-centric IT company, has emerged as a key beneficiary of the expanding demand for memory semiconductors in the AI era. - SK Hynixs transformation is even more dramatic. As a key supplier of high-bandwidth memory (HBM) for Nvidia, it is now considered one of the biggest beneficiaries in the AI landscape. Analysts note that the company has shifted from being heavily influenced by the DRAM market to becoming a central player in AI infrastructure expansion. - While Samsung Electronics and SK Hynix lead the Korean market, Nvidia effectively dominates in the U.S. Recently, Nvidias market capitalization surpassed $5.2 trillion, making it the worlds most valuable company. - In Japan, AI is also shaking up the stock market landscape. Kioxia Holdings, a NAND flash memory manufacturer, is at the forefront. Toyota, a symbol of Japanese manufacturing and previously the top company by market cap, is facing challenges as Kioxias stock price has surged recently. - Kioxias shares rose over 7% during trading, pushing its market capitalization above 45 trillion yen at one point, allowing it to surpass Toyota and become the second-largest publicly traded company in Japan. ◆ Major Reports: Unwinding Supply and Demand in Consumer Goods, Finance, and Materials [Shinhan Investment Corp] - The previous day, the KOSDAQ materials sector was hot. In the past month, the sectors with increased market capitalization on KOSDAQ include semiconductors, machinery, and IT hardware, as AIs influence spreads while biotechnology takes a breather. - Recently, supply chain stocks in the U.S. and Japan have shown strength, but domestic stocks were previously weighed down by a concentration of demand in large-cap semiconductors, leading to a rebound on this day. - Expectations for post-election KOSDAQ revitalization policies and the implementation of the National Growth Fund were also reflected, with recent three-month net purchases by foreign investors and pension funds concentrated in IT hardware and banking sectors. ◆ Major Announcements After Market Close (June 4) ▷ Shinhan Securities decided to retire about 1 trillion won in treasury shares, stating it aims to enhance shareholder value. ▷ OSP announced a stock split of 0.5 shares per share. ▷ TSI Scientific announced a 3 billion won capital increase through a third-party allocation. ▷ Kolon Mobility Group acquired shares of AutoHub Selca for 61.7 billion won. ◆ Fund Trends (as of June 2, excluding ETFs) ▷ Domestic Equity: -307.7 billion won ▷ Overseas Equity: -22.9 billion won ◆ Key Schedule for Today (June 5) ▷ South Korea: Current Account (April) ▷ Eurozone: GDP Growth Rate (Q1) ▷ U.S.: Employment Report (May), Consumer Credit (April)* This article has been translated by AI. June 5, 2026 07:30 -
Kolon Mobility Group Acquires AutoHub Selca to Enter Auto Auction Business Kolon Mobility Group, a domestic importer of vehicles, is entering the auto auction business. On June 4, Kolon Mobility Group announced that it has acquired a 100% stake in AutoHub Selca, a company specializing in auto auctions. AutoHub Selca operates a large auction house in Anseong, Gyeonggi Province. With this acquisition, Kolon Mobility Group aims to complete an integrated value chain covering the entire lifecycle of vehicles, from new car purchases to resale. The company will also strengthen its procurement channels for its used car platform, 702 Certified Used Cars. Industry experts believe that this value chain development will serve as a significant opportunity to enhance various business areas, including rental cars, vehicle repairs, and warranty extensions. Kolon Mobility Group has declared its goal to achieve a corporate value of 1 trillion won by next year through business model diversification. Choi Hyun-seok, CEO of Kolon Mobility Group, stated, The acquisition of AutoHub Selca is a strategic decision to fundamentally enhance the competitiveness of the 702 Certified Used Cars business and to set a new standard in South Koreas used car market. According to the Ministry of Land, Infrastructure and Transport, the domestic used car market is expected to reach approximately 2.42 million units annually by the end of 2024, surpassing the new car market, which stands at around 1.67 million units. June 4, 2026 18:24 -
AI-Driven Insurance Fraud on the Rise, Regulators to Establish Unified Detection System As new forms of insurance fraud utilizing generative artificial intelligence (AI) for forgery of medical certificates and receipts proliferate, financial authorities are moving to establish a unified detection system that links data from the insurance sector and public institutions. Unlike traditional forgery methods using Photoshop and manual alterations, AI-generated forgeries leave fewer traces, making them harder to detect. This initiative marks the beginning of a comprehensive government response aimed at preventing insurance losses and the deterioration of health insurance finances. On June 4, the Financial Services Commission held a kickoff meeting for the AI-Based Insurance Fraud Prevention Task Force (TF) alongside an insurance investigation council. The financial authorities plan to operate the TF for three months, with the goal of preparing a plan for an AI-Based Insurance Fraud Prevention System by September. Following this, they intend to implement legislative amendments and enhance platforms starting in October. Last year, the amount of detected insurance fraud was reported at 1.1571 trillion won. Considering undetected fraud, the total is estimated to reach approximately 9 trillion won. By category, long-term damage insurance, including health insurance, accounted for 44.7%, followed by auto insurance at 22.4% and life insurance at 21.8%. Recently, there have been cases where generative AI and deepfake technology have been misused to forge identification documents, medical certificates, and photos of vehicle damage throughout the entire insurance process, from enrollment to claims. A 20-year-old individual in Busan was sentenced to two years in prison for forging a hospitalization confirmation letter using generative AI, defrauding a total of 150 million won from 11 insurance companies. Concerns are high regarding AI forgery, as it is difficult to detect with existing methods. In the past, when receipts or medical records were cut and pasted or manipulated using Photoshop, there were often clues left, such as changes in font or spacing. In contrast, generative AI can create new image pixels, eliminating traces of manipulation. The TF will discuss establishing legal grounds for the centralized sharing of information related to insurance fraud, real-time information sharing among relevant agencies, and the analysis of AI-based fraud patterns and risk indices. Plans are also in place to enhance the AI-Based InsurTech Platform of the Korea Credit Information Corporation as a unified infrastructure for preventing insurance fraud across all insurance sectors and to activate a system for original data verification with public institutions.* This article has been translated by AI. June 4, 2026 15:30 -
Hyundai Home Shopping Introduces Automation Technology at Logistics Center Hyundai Home Shopping is enhancing its logistics capabilities by expanding automation at its centers. On June 4, the company announced the introduction of automated logistics equipment, including robotic arms and a singulator, at its logistics center in Hwaseong, Gyeonggi Province. Robotic arms are designed to pick up multiple products at once and transfer them to unloading conveyor belts. The singulator automatically arranges products on the conveyor belt to ensure they are shipped one at a time. These systems were customized to meet the unique order environment of home shopping, which differs from open-market e-commerce that typically handles small quantities of various products. Home shopping sees concentrated orders for the same product during specific broadcast times. To address this, Hyundai Home Shopping has implemented robotic arms capable of moving up to 24 boxes at once and the singulator for automatic product arrangement. Additionally, the company has integrated these new systems with its previously installed auto-labeler, which attaches shipping labels automatically. This creates a seamless, one-stop automation line that covers the entire process from unloading to product arrangement and label attachment. With this automation line, Hyundai Home Shopping expects to significantly increase the processing capacity of its Hwaseong logistics center to up to 4,000 items per hour. Consequently, the overall shipping time is projected to be reduced by approximately 20% compared to previous methods. A company representative stated, We have made proactive investments to innovate logistics efficiency and create a safe working environment for our employees amid the rapidly changing retail landscape. We plan to continue expanding the introduction of cutting-edge automation equipment suitable for our logistics environment. Meanwhile, Hyundai Home Shopping is also accelerating its efforts to expand offline customer touchpoints alongside enhancing its logistics infrastructure. Recently, the company opened its second beauty edit shop, Coasis, on the basement level of Hyundai Department Store in Gangdong-gu, Seoul. This follows the opening of its first store at Hyundai Premium Outlet Space One in Namyangju last year, marking an expansion of its retail network. Until June 28, Coasis will offer discounts on popular products, including Jasderma ampoules, Saint Frank gel masks, and VT PRDN riddle shot cream.* This article has been translated by AI. June 4, 2026 13:57