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Lessons from the Meiji Restoration: Governance Requires Unity Meiji Restoration was a revolution that transformed Japan into a modern state. However, those who succeeded in the revolution did not all work together to build the new nation. While they united to dismantle the old power structure, they diverged in the process of governing the country after seizing power. The greatest lesson from the Meiji Restoration is not the success of the revolution itself, but the importance of unity in governance. In September 1877, in Shiroyama, Kagoshima, two heroes of the Meiji Restoration, Saigo Takamori and Okubo Toshimichi, ultimately could not reconcile. Once comrades in the revolution that toppled the Tokugawa shogunate, they became adversaries, pointing their guns at each other. The Seinan War, Japans last civil war, ended with a victory for the Meiji government forces. This outcome was a result of the different paths chosen by those who had achieved the revolution together. History often describes this conflict as a clash between idealism and realism. However, the essence is somewhat different. Both men shared the same goal of making Japan a prosperous modern nation. What diverged was not the goal itself, but the order in which to achieve it. Saigo sought to establish a moral foundation first, while Okubo aimed to strengthen national power. Saigo was a leader who gathered people, whereas Okubo was a leader focused on managing the state. While Saigo was a revolutionary who dismantled the old order, Okubo was a builder who established the institutions and foundations of the new nation. He reorganized finances, promoted industry, and concentrated national resources on building modern administration and military. His role was crucial in laying the groundwork for Japan to compete with Western powers in a short period. Ultimately, history accepted Okubos choice. Japan pursued industrialization and established the foundations of a modern state. However, this victory came at a cost. The Seinan War left behind enormous war expenses, equivalent to a significant portion of the national revenue at the time, leading to inflation, fiscal austerity, rural devastation, and social conflict. Most importantly, the dissatisfaction and loss felt by the defeated samurai class were not politically absorbed, leaving deep societal fractures. The state grew stronger, but the political unity needed to bind society together could not keep pace. While victorious, the limitations of unity became evident. The Meiji Restoration succeeded in creating a modern state, but the process of integrating various factions into a new order left considerable sacrifices and aftereffects. This remains a political lesson from the Meiji Restoration that resonates even today, over 150 years later. This lesson is applicable to South Korean politics today. The upcoming Democratic Party convention next month should not be viewed merely as a competition for party leadership. It is the first leadership election for the ruling party since the inauguration of the Lee Jae-myung administration. The new leadership will need to support the presidents governance philosophy through legislation, manage next years budget, and lead the ruling party until the 2028 general elections. This convention is not just a procedure to elect a party leader; it is a process of laying the political foundation for future governance. The Lee Jae-myung administration faces complex and heavy challenges. Tasks that will shape the nations future, such as AI national strategy, enhancing semiconductor competitiveness, fostering advanced manufacturing and defense industries, energy transition, balanced regional development, and addressing low birth rates and aging, are all being pursued simultaneously. Externally, the administration must actively respond to U.S.-China strategic competition, global supply chain restructuring, and changes in trade order. All these tasks require long-term momentum and political stability. Recently, there have been concerns in the political arena that no matter how much success is achieved in diplomacy and the economy, if the ruling party cannot be operated stably, the momentum for governance will not last long. This is a principle of politics that history has repeatedly shown, transcending the opinions of specific politicians. Diplomacy elevates the nations status, and the economy improves the lives of citizens. However, the power to solidify and sustain those achievements lies in politics. If the president sets the direction for governance, the ruling party must play the role of turning that direction into reality. Even if the government formulates policies and the president makes decisions, laws must pass through the National Assembly, and budgets require the Assemblys approval. If the government and ruling party do not move in the same direction, reform legislation will be delayed, budgets will drift, and it will be difficult to achieve policy outcomes that citizens can feel. Conversely, if the ruling party operates stably, policies can gain momentum, and governance can maintain consistency. The leadership of the ruling party is not merely an internal power issue; it is directly linked to the success or failure of national governance. Viewing this convention solely as a contest between reform and growth, or between hardline and moderate approaches, risks missing the essence. The ruling party cannot exist solely through struggle like the opposition, nor can it be evaluated only on administrative performance like the government. It must possess the strength to promote reform, the responsibility to manage governance stably, and the leadership to unify diverse opinions. Internal competition is necessary, but the purpose of that competition should not be to exclude others. It should aim to create better policies and stronger governing capabilities. The Democratic Party has already received the publics mandate to govern. What is now needed is to translate electoral victories into governance achievements. It will be difficult to operate governance stably if the party only looks to the support base that helped them win elections. Politics must consider not only the voices within the party but also the concerns of citizens who did not support them. The unity of the ruling party is not merely a matter of distributing positions among factions; it must be a process of incorporating the diverse interests and demands of society into government policy. The Meiji government was able to push for strong centralization and industrialization because it had clear national goals and momentum. However, in the process, it failed to adequately address the losses and anger of those left behind, ultimately paying a steep price in civil war. The faster the pace of reform, the more important it is for politics to embrace those who feel left behind or excluded. Momentum and unity are not mutually exclusive; they are both essential conditions for governance. After the Democratic Party convention, competition must come to an end. The new leader should not be merely a representative of the winners but a representative of the entire party. They must be able to embrace not only those who supported them but also party members and lawmakers who made different choices. A leadership that blindly follows the government or one that seeks to compete with the government is not desirable. The ruling party must correct the governments misdirection when necessary and unite to support needed reforms, sharing responsibility for governance outcomes. History remembers the aftermath of elections longer than the results themselves. The Meiji Restoration demonstrated that building a nation and unifying it are distinct challenges. The ability to acquire power and the ability to operate it stably are not the same. Elections create winners. However, governance is not completed solely through victory. Only when the government leads with the voices of those who competed and felt excluded can the nation move forward. This is the political lesson from the Meiji Restoration that resonates today: governance is completed not through victory, but through unity.* This article has been translated by AI. July 26, 2026 18:00 -
Food Companies Expand Restaurant Ventures Despite Economic Slowdown Despite a sluggish restaurant market, food companies are launching new dining brands and expanding their presence. As consumer sentiment tightens and commercial districts shrink, the food industry is focusing on overcoming declining profitability in manufacturing and securing new growth drivers, leading to renewed interest in the restaurant business.According to industry sources, CJ Foodville has been aggressively opening locations since launching its Italian bistro brand, Olifepe, in December. Starting with its first store in Gwanghwamun, it has opened additional locations in Yeouido and Pangyo, with the latest store in Gangnam, marking its fourth outlet.Ourhomes buffet brand, TAKE, is also ramping up its expansion. The Jonggak location, which opened in May, has averaged 750 visitors per day, surpassing 60,000 total visitors within 80 days of opening. Buoyed by this success, Ourhome plans to open a second location in October at the underground space of Lotte World Adventure in Jamsil, featuring over 240 seats.Efforts to introduce global brands and establish premium platforms are ongoing. Sangmidang Holdings is set to open the first Asian location of the American Mexican brand Chipotle near Gangnam Station, with a second location planned at Shinsegae Department Store in Gangnam, currently undergoing interior renovations. Hanwha FoodTech has introduced a premium dining complex, The Plaza Dining, in Gwanghwamun and recently launched a consolidated membership program, The Platinum Dining, which bundles benefits from its 14 restaurant brands to enhance customer engagement.The resurgence of the restaurant business among food companies is rooted in the limitations of their manufacturing-centric business structures. Rising costs for raw materials, packaging, and logistics have pushed the cost of sales to 70-80%, but due to price stability and competitive discounting in the retail sector, it has become challenging to reflect these cost increases in product prices.In contrast, the restaurant sector offers a larger market size than food manufacturing and allows for more flexible adjustments to prices and menus based on market conditions. According to the Korea Rural Economic Institute, the restaurant market was valued at approximately 192 trillion won last year, surpassing the food manufacturing market, which was around 159 trillion won. The ability to create synergies with existing businesses, such as meal services and food distribution, is also seen as an advantage.In fact, the contribution of the restaurant business to overall performance is increasing. In the first quarter of this year, CJ Foodvilles restaurant sales reached 63.5 billion won, a 5.1% increase from the same period last year, accounting for 24.8% of total sales. MZ Seed, a subsidiary of Maeil Holdings that operates coffee brand Paul Bassett and restaurant brands The Kitchen Il Porrno and Crystal Jade, recorded sales of 213.6 billion won last year, marking its first time surpassing 200 billion won. This represents more than double its size since exceeding 100 billion won in 2021, now accounting for about 10% of Maeil Holdings total sales.However, there are cautious views on whether the restaurant sector can serve as a long-term profitability shield and breakthrough. The burden of fixed operating costs, such as rent and labor, is significant, and the sector is sensitive to economic fluctuations. Without meticulous cost management and sustained brand competitiveness, the expansion could become detrimental.Moreover, the recovery of the restaurant market remains unclear. According to the National Data Agency, the restaurant industry business trend index for the second quarter of this year was 78.82, falling below the baseline of 100. The Seoul Business Analysis Service reported that 5,747 restaurants closed in the first quarter of this year, significantly outpacing the 4,701 new openings.An industry insider stated, While food manufacturers are strengthening their restaurant businesses to overcome stagnant profitability, the restaurant sector is also directly impacted by high inflation and consumer recession. To achieve stable growth, it is essential to focus on brand differentiation and thorough profitability management rather than merely expanding the number of locations.* This article has been translated by AI. July 26, 2026 17:32
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Tax Expenditure Reform Underway: Transition from Marriage Tax Credit to Subsidies The South Korean government is expected to replace tax benefits previously granted to newlyweds with direct subsidies to encourage marriage. The housing savings plan, which has been periodically reviewed for potential elimination, is likely to be made a permanent program to ensure housing stability for low-income households. The family business inheritance tax exemption will undergo a comprehensive redesign for the first time in 30 years to prevent circumvention of regulations.According to government sources, the tax reform plan to be announced in early August will focus on livelihood taxes for citizens and vulnerable groups, as well as growth taxes to support economic development.The most significant change will be the transition of the marriage tax credit into a subsidy. Currently, couples who register their marriage can receive a tax credit of up to 1 million won, but those with low incomes who do not pay taxes miss out on this benefit and must wait until year-end tax settlements. The government is also considering converting tax credits for childbirth, adoption, infertility treatments, and medical expenses for children under six into cash support.The housing savings plan, represented by the housing savings income deduction, is expected to be made permanent by eliminating its sunset provision. This program allows heads of households without homes to deduct 40% of their contributions, up to 3 million won annually, to support housing stability for low-income families.For young workers in small businesses, there are currently tax reductions of 90% on income tax for the first five years of employment, and 70% for seniors and people with disabilities for three years. Additional benefits for workers outside the capital region are anticipated. Currently, young startups in non-capital areas receive up to 100% tax reductions on income and corporate taxes for five years, and further measures are expected.The core of the growth tax reform is the domestic production promotion tax system, referred to as the Korean version of the Inflation Reduction Act (IRA). This initiative will provide tax incentives for domestic production and investment in strategic industries such as semiconductors and secondary batteries, along with the establishment of productive financial ISAs and expanded tax credits for R&D and investment in advanced industries.Tax incentives for startups in new industries such as AI, robotics, and biotechnology will be increased, and advanced safety technologies may be added to the list of new growth and core technologies. Additional tax incentives are also being discussed for companies that invest, hire, or conduct R&D in non-capital regions as part of the 5 Extremes and 3 Specialties initiative.The family business inheritance tax exemption, introduced in 1997, will be reformed to prevent circumvention by narrowing the scope of eligible industries and land, while strengthening minimum management periods and post-management requirements. Industries that are at risk of being misused as real estate succession tools will be excluded from eligibility, and the evaluation method for inheritance and gift taxes on low PBR listed stocks will also be revised.To prevent intentional stock price suppression by major shareholders, the evaluation method for inheritance and gift taxes on listed stocks will be reformed. A proposal is being discussed to reflect asset and income values in the evaluation of stocks of listed companies with a price-to-book ratio (PBR) below 0.8. The governments stance on the taxation of virtual assets, which has recently raised the need for a fourth extension, is also expected to be clarified during the announcement of the tax reform plan.The government plans to finalize the restructuring of tax expenditures and announce the complete tax reform plan in early August.* This article has been translated by AI. July 26, 2026 10:24
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KAMA Reports Strong Recovery in Domestic Auto Sales Driven by Imported Electric Vehicles The automotive market in South Korea is expected to see domestic sales surpassing 1.7 million units this year, driven by the impact of new car models, despite concerns over a slowdown in exports. This marks the first time since 2023 that domestic sales have exceeded 1.7 million units.According to the Korea Automobile Mobility Industry Association (KAMA) on July 26, the organization analyzed the first half of 2026s performance in domestic sales, exports, and production, along with projections for the second half.In the first half of the year, domestic sales reached 851,000 units, a 1.3% increase compared to the same period last year. The growth in domestic sales was largely driven by imported vehicles.Sales of domestic cars fell by 4.8% to 658,000 units, while imports surged by 30% to 193,000 units, thanks to electric vehicle brands like Tesla and BYD.Notably, electric vehicle sales soared by 113.6% year-on-year, totaling 198,509 units. The share of electric vehicles in the market rose from 11.1% last year to 23.3% this year.When including hybrid electric vehicles (HEVs) and fuel cell electric vehicles (FCEVs), total sales of eco-friendly vehicles reached 491,498 units, marking a 27.1% increase during the same period. The overall share of eco-friendly vehicles rose from 46.1% to 57.8%.KAMA anticipates that the growth in domestic sales will accelerate in the second half of the year, projecting sales to reach 865,000 units, a 2.7% increase from last year, bringing the annual total to 1.71 million units. This would be the first time since 2023 (1.75 million units) that domestic sales have exceeded 1.7 million.The continued growth of eco-friendly vehicles is expected in the second half, with KAMA highlighting the anticipated impact of new models such as the Hyundai Tucson, Avante, Santa Fe, and Genesis hybrid models.In the first half, exports increased by 2.1% to 1.441 million units. The share of eco-friendly vehicle exports rose from 30.0% last year to 37.0%.HEV exports totaled 379,000 units, a 28.5% increase from last year, driven by an expanded lineup including the Staria and Grand Koleos.Electric vehicle exports also grew by 20.6% to 155,000 units, supported by new models such as the Kia EV3, EV4, and EV5, as well as the purpose-built mobility (PBV) PV5.However, for the second half, exports are projected to decline by 0.3% year-on-year to 1.32 million units due to high inflation and interest rate hikes in major countries. The annual forecast for exports is a 0.9% increase to 2.76 million units.Production saw a slight decrease of 0.1% in the first half, but is expected to rebound by 1.5% in the second half due to recovery from production disruptions and the launch of key new models. The annual production forecast is a 0.7% increase to 4.13 million units.* This article has been translated by AI. July 26, 2026 10:04
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Ministerial Vacancy at Small and Medium Enterprises Ministry Delays Policies Since Han Seong-sook transitioned to the role of Prime Minister, the appointment of a new Minister for the Ministry of SMEs and Startups has been delayed for over a month, raising concerns about a policy gap. With small and medium enterprises (SMEs) and small business owners struggling amid high inflation and sluggish domestic demand, the absence of a policy leader is hindering initiatives like the normalization of the Everyones Startup program and appointments within affiliated agencies.According to government sources on July 25, the Ministry has been operating without a minister for nearly six weeks since Han was nominated as Prime Minister on June 7. Although First Vice Minister Noh Yong-seok is currently acting in the ministers role, the announcement of a successor has yet to be made.The prolonged absence of a minister is causing delays in addressing significant issues. The Ministrys key initiative, the Everyones Startup project, has seen its second recruitment phase postponed indefinitely following a data breach incident involving participants from the first phase, which was originally scheduled for July.Support for SMEs and small business owners, who are facing dire circumstances due to high interest rates and inflation, as well as policies for AI transition, venture investment recovery, and global expansion, are not being expedited.Moreover, the impact of the ministerial vacancy is cascading down to affiliated agencies. The term of Lee Tae-sik, head of the Korea SMEs and Startups Agency, has already ended, and next month, the terms of Kang Seok-jin, head of the Korea Small Business Corporation, and Kim Young-shin, head of the Korea Technology and Information Promotion Agency for SMEs, will also expire.Typically, the appointment of heads of affiliated agencies requires a recommendation from the relevant minister, which means the absence of a minister is leading to stagnation in these appointments.Additionally, there is a possibility that the presidential work report scheduled for early next month will be conducted without a minister, with the acting vice minister stepping in.Currently, various candidates for the next minister are being discussed in government and political circles, ranging from politicians to academics and private sector leaders. However, given the current economic challenges and global uncertainties, there is a growing call for a qualified individual with a deep understanding of the SME and startup sectors, as well as the expertise and drive to foster growth.An industry insider stated, We need to quickly appoint a hands-on candidate who understands the field and can lead policies with urgency, beyond political calculations or delays in verification.* This article has been translated by AI. July 25, 2026 10:08
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Hearing on Dedicated T-Commerce for Small Businesses Set to Begin Discussions on establishing a dedicated T-commerce (data home shopping) channel for small businesses, a long-standing goal of the industry and a campaign promise of President Lee Jae-myung, are expected to gain momentum in the second half of this year. The Korea Communications Commission (KCC), which holds the authority to approve the project, has secured the necessary quorum, prompting a hearing focused on Public Home Shopping and Home & Shopping, where rigorous questioning is anticipated.According to relevant ministries and the home shopping industry on July 23, the KCC plans to hold a hearing at the end of next month regarding the approval requests for T-commerce channels from Public Home Shopping and Home & Shopping. This hearing, following a preliminary review by the KCC, will serve as a platform to rigorously assess the companies staffing for broadcasting, the status of their transmission equipment, and their plans for securing initial capital.In February, as part of a government reorganization plan, the responsibility for establishing the small business T-commerce channel was transferred from the Ministry of Science and ICT to the KCC. With the KCC now having the necessary quorum, discussions that had stalled regarding the establishment of T-commerce channels are reigniting. The industry views the approval of T-commerce as a critical first test of the management capabilities and policy implementation of the newly appointed leaders of Public Home Shopping and Home & Shopping, Lee Il-yong and Kwon Jin-mi, respectively.T-commerce, a blend of television and commerce, allows viewers to order products directly using their remote controls while watching TV. Unlike live broadcasts, recorded shows can continuously display and sell products, providing a significant opportunity for small businesses to expand their market reach.This service is particularly seen as effective for small and micro businesses. A survey conducted from November 10 last year to January 28 this year among 856 small businesses engaged with TV home shopping and T-commerce revealed that 36.3% expressed willingness to use T-commerce channels if introduced.The persistent demand from the small business sector for the establishment of T-commerce channels stems from the inequality faced against large home shopping companies. Currently, there are ten T-commerce operators in South Korea, including Hyundai Home Shopping, Lotte Home Shopping, CJ OnStyle, GS Shop, NS Home Shopping, KT Shopping, Shopping N, SK Stoa, W Shopping, and Shinsegae Shopping. In contrast, Public Home Shopping and Home & Shopping, which emphasize expanding market access for small business products, rely solely on one live TV channel, limiting their growth potential.A representative from the small business sector stated, To provide practical market access for small businesses struggling with inflation and domestic demand stagnation, the establishment of T-commerce channels is urgent. We hope the upcoming hearing will be the first step toward meaningful institutional improvement.* This article has been translated by AI. July 25, 2026 10:04
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Next Week's Stock Market Outlook: AI Investment and FOMC Results in Focus Next week, the domestic stock market will focus on the sustainability of AI investments by major U.S. tech companies and the results of the Federal Open Market Committee (FOMC). The market experienced a sharp decline due to the emergence of Chinese AI models and geopolitical risks in the Middle East, but sentiment around semiconductor investments partially recovered following Alphabets announcement of increased capital expenditures (CAPEX). However, ongoing military tensions between the U.S. and Iran, along with concerns over high oil prices, are expected to keep volatility high in the near term.According to the Korea Exchange, on July 24, the KOSPI closed at 6,690.02, down 406.87 points (5.73%) from the previous trading day, while the KOSDAQ finished at 748.22, down 42.06 points (5.32%). Over the week from July 20 to 24, the KOSPI and KOSDAQ fell by 1.91% and 5.51%, respectively.Last week, the stock market was pressured by concerns over the semiconductor industry and geopolitical instability. The Chinese AI startup Moonshot AI unveiled its high-efficiency AI model Kimi K3, raising fears of declining demand for GPUs and high-bandwidth memory (HBM). Additionally, renewed military tensions between the U.S. and Iran led to rising international oil prices and market interest rates. This prompted profit-taking in the semiconductor sector, but Alphabets upward revision of its 2026 CAPEX guidance, alongside cloud growth, alleviated some concerns about a slowdown in AI investment.Signs of recovery in supply and demand were also observed. As individual investors continued to liquidate leveraged positions, foreign investors began buying on dips as the KOSPI fell to the 6,400 level, creating a rebound opportunity. Analysts suggest that the recent adjustments are part of a normalization process rather than a reflection of deteriorating semiconductor conditions.Lee Jae-won, a researcher at Yuanta Securities, stated, What collapsed in July was the excessively accumulated leveraged positions rather than semiconductor profits. Considering Alphabets CAPEX expansion and customer demand, there is no confirmed change supporting the peak-out of AI investment and semiconductor highs. He added, While passing the peak of forced selling does not necessarily indicate a trend reversal, prioritizing large-cap semiconductor stocks and expanding positions in oversold sectors could be a suitable strategy if supply and demand improvements spread.Looking ahead, global monetary policy and the performance of major tech companies are expected to be key variables influencing the stock market. Starting on July 29, the U.S. FOMC and SK Hynixs earnings report will be released, followed by the second-quarter GDP figures for the U.S. and Eurozone, as well as earnings from Microsoft, Meta, and Qualcomm on July 30. On July 31, the Bank of Japans monetary policy meeting and earnings reports from Apple and Amazon are also scheduled.Economic indicators are likely to significantly impact investor sentiment. The market anticipates that the FOMC will keep interest rates steady, but attention will be on the Feds messaging regarding future monetary policy direction. The U.S. second-quarter GDP, released on the same day, is expected to confirm robust consumer and investment trends, while South Koreas July exports, set to be announced on August 1, are projected to continue a strong upward trend, particularly in semiconductors. Stronger-than-expected growth and inflation indicators could dampen expectations for interest rate cuts, potentially weighing on the stock market. Conversely, if AI investment expansion and export growth are reaffirmed, investor sentiment in the semiconductor sector could improve significantly.Analysts predict that the market will remain in a range-bound phase as the earnings confirmation process continues. If major tech companies like Meta, Microsoft, Apple, and Amazon can simultaneously demonstrate both the expansion of AI investments and profitability, it could further restore investor sentiment in the semiconductor sector. However, there are also forecasts that prolonged geopolitical risks in the Middle East and rising international oil prices could lead to increased market volatility. July 25, 2026 06:04
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South Korea Freezes 8th Oil Price Cap Amid Rising International Oil Prices The South Korean government has decided to freeze the 8th oil product price cap. Despite recent factors that could lead to price increases due to rising international oil prices, the decision was made considering the burden on the consumer economy from inflation and interest rate hikes. However, with escalating tensions in the Middle East, there remains the possibility of future price increases.The Ministry of Trade, Industry and Energy announced on July 24 that the 8th oil product price cap, effective from midnight on July 25, will maintain the prices at 1,784 won per liter for regular gasoline, 1,773 won for diesel, and 1,380 won for kerosene. This price cap will apply to oil products supplied by refiners to gas stations over the next four weeks.The government has been implementing the oil product price cap system since midnight on March 13. The initial price cap was set at 1,724 won per liter for regular gasoline, 1,713 won for diesel, and 1,320 won for kerosene. The second price cap, which took effect on March 27, was set at 1,934 won for gasoline, 1,923 won for diesel, and 1,530 won for kerosene, and the prices have remained frozen up to the 6th cap.Subsequently, the government announced the 7th price cap on June 26, reducing the supply prices of gasoline, diesel, and kerosene by 150 won each. The 8th price cap announced today remains unchanged from the 7th.Recently, tensions between the U.S. and Iran have intensified, and the number of oil tankers transiting the Strait of Hormuz has decreased, leading to an upward trend in international oil prices. Additionally, the Houthi rebels declaration of a blockade in the Red Sea has contributed to this rise, with Brent crude prices reaching $101 per barrel on July 23. On the same day, West Texas Intermediate (WTI) crude was priced at $92, and Dubai crude at $97.International oil product prices have also increased, with gasoline rising to $125 per barrel and diesel to $168. However, the average international oil prices for July are lower than those in June, with Brent at $82, WTI at $77, and Dubai at $75. This is why the government has not immediately reflected the recent short-term price increases in the price cap.Furthermore, the domestic consumer price inflation rate has risen to around 3%, and the Bank of Korea has increased the base interest rate from 2.50% to 2.75%, influencing the decision to maintain the price cap. The government emphasized its focus on protecting the consumer economy from fluctuations in international oil prices and minimizing the burden on essential consumers such as truck drivers, delivery workers, and those in agriculture and fisheries.As a result, domestic fuel prices at gas stations are expected to remain in the current 1,800 won range for the time being. Since the implementation of the 7th price cap on June 27, domestic fuel prices have shown a downward trend, with gasoline priced at 1,871 won per liter and diesel at 1,856 won as of July 23.Yang Gi-wook, head of the Ministrys Resource Security Division, stated, We believe that retail prices will either remain at the current level or may slightly decrease for the time being. However, if the situation in the Middle East changes rapidly this weekend or next week, we are keeping the possibility of adjusting the price cap open before the four weeks are up. He noted that while the likelihood of the price cap system ending is low, adjustments to raise prices in response to a surge in international oil prices are likely.Currently, the price cap is set about 100 won lower than the estimated supply price for gasoline and about 300 won lower for diesel and kerosene. The government believes that the related financial burden can be managed within a reserve budget of 4.2 trillion won. If the price cap needs to be maintained for more than six months, additional measures will be considered, but the government is not currently contemplating a supplementary budget.Regarding recent allegations of collusion among refiners, the government stated, It is not appropriate to comment as it is still in the trial process. We will objectively review the materials received from the prosecution and those submitted by the refiners through the settlement committee.Current measures for stabilizing supply and demand that have expired may be resumed if the situation in the Middle East escalates. Yang added, We expect the supply and demand situation to remain stable until August, but if necessary in September or later, we will consider restarting measures such as strategic oil swaps and will prepare to implement other diversification measures sequentially.Regarding the situation in the Red Sea, he noted, Some refiners are considering alternative routes related to the blockade in the Red Sea, and there are cases of reviewing the Suez Canal. We are examining whether there is anything the government can support if it is deemed to affect supply and demand.* This article has been translated by AI. July 24, 2026 19:04
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KOSPI leads Asian retreat on oil jitters, capping sidecar-ridden week SEOUL, July 24 (AJP)— South Korean stocks suffered another sharp selloff Friday as surging oil prices driven by escalating Middle East tensions and mounting interest-rate concerns fueled broad risk aversion, sending both the KOSPI and KOSDAQ into sell-side sidecars for a fifth consecutive trading session. The benchmark KOSPI closed at 6,690.62, down 5.72 percent, and the junior KOSDAQ fell 5.32 percent, to 748.22, as foreign and institutional investors accelerated selling despite heavy buying by retail investors. The plunge followed another weak session on Wall Street overnight, where technology shares came under pressure and rising oil prices added to concerns over the global inflation outlook. Samsung Electronics and SK hynix bore the brunt of the selloff as foreign investors rapidly unwound positions in the two semiconductor heavyweights. Samsung Electronics tumbled 7.59 percent to 249,500 won, while SK hynix dropped 8.34 percent to 1,759,000 won. Foreign investors dumped a net 1.76 trillion won worth of SK hynix shares and 873 billion won of Samsung Electronics, while institutions also emerged as the largest sellers of both companies, offloading 867.3 billion won and 858.8 billion won, respectively. The SK Group was also in focus after the Seoul High Court largely upheld its revised divorce ruling ordering Chairman Chey Tae-won to pay former wife Roh Soh-yeong 944 billion won in the property settlement. SK Square fell 9.17 percent amid the broader market selloff. Selling spread across other large-cap technology and cyclical names. Samsung Electronics preferred shares lost 7.33 percent to 177,100 won, Samsung Electro-Mechanics fell 8.43 percent to 1,326,000 won, Hyundai Motor declined 7.18 percent to 401,000 won, and LG Energy Solution slipped 5.32 percent to 329,500 won. Financial shares also weakened, with Samsung Life Insurance falling 3.49 percent and KB Financial losing 2.72 percent, while Samsung C&T declined 5.00 percent. Among industrials, HD Hyundai Heavy Industries dropped 2.51 percent, and Kia slumped 12.88 percent, making it one of the day's biggest losers among blue chips. Defensive buying was limited. Samsung Biologics climbed 10.08 percent to 1,518,000 won, while Hanwha Aerospace gained 2.19 percent and Shinhan Financial edged up 0.58 percent. The weakness was equally pronounced on the junior KOSDAQ market. Among heavyweights, HLB was the lone gainer, rising 4.33 percent to 31,300 won. Biotechnology company Alteogen slipped 1.96 percent to 300,500 won, while battery materials makers EcoPro and EcoPro BM fell 7.35 percent and 8.38 percent, respectively. Drug developer LegoChem Biosciences tumbled 17.62 percent, semiconductor equipment makers Jusung Engineering and PSK dropped 13.97 percent and 8.34 percent, respectively, while semiconductor equipment supplier Wonik IPS lost 11.30 percent. Precision parts maker Leeno Industrial declined 7.71 percent and biotech firm ABL Bio edged down 2.56 percent. The Korean won, however, was broadly steady, with the dollar trading at 1,464.50 won, compared with 1,466.8 won in the previous session. The market rout came as investors grappled with a deteriorating macroeconomic outlook. Brent crude climbed back toward $100 a barrel and the yield on the benchmark U.S. 10-year Treasury note rose above 4.7 percent, reinforcing concerns that higher energy prices could keep inflation elevated and delay monetary easing. Adding to the cautious mood, Alphabet shares fell 6.89 percent after the company unveiled a sharply higher AI spending plan despite beating quarterly revenue estimates. The selloff was mirrored across regional markets. Japan's Nikkei 225 dropped 2.79 percent to 64,572.00, Hong Kong's Hang Seng Index declined 1.16 percent to 24,919.50 and China's Shanghai Composite fell 1.61 percent to 3,814.20. July 24, 2026 17:30 -
Chinese Stock Market Declines Amid Rising Oil Prices; Defense Sector Gains The Chinese stock market, which had risen the previous day, fell across the board on July 24, attributed to the surge in oil prices stemming from the Middle East.On this day, the Shanghai Composite Index closed down 1.61% at 3,814.20, the Shenzhen Component Index dropped 2.47% to 13,774.68, and the ChiNext Index fell 2.65% to 3,480.87.Brent crude oil prices reached as high as $102 per barrel during the day before trading around $100. Concerns over oil supply disruptions have intensified following attacks on Saudi oil tankers by Houthi rebels in the Red Sea and difficulties in normal navigation through the Strait of Hormuz. Iran has rejected a U.S. ceasefire proposal, and the U.S. is reportedly expanding military actions against Iran, with plans for more intense attacks than in the past, contributing to the spike in international oil prices. This surge raises fears of a resurgence in global inflation, while expectations for interest rate cuts by the U.S. Federal Reserve have virtually disappeared, with the possibility of further rate hikes being discussed. The significant drop in big tech stocks on the U.S. market the previous day also negatively impacted the Chinese stock market.Haitong Securities stated, The stock market is expected to experience high volatility in the coming weeks, entering a period of severe turmoil. After a correction in mid-May, the Chinese stock market is likely to hit bottom and stabilize ahead of overseas markets. By August, the autumn market is expected to begin, and there is a possibility of a sufficiently positive market emerging.On this day, the defense sector showed strong performance, with companies like Changcheng Military Industry and Jianjie Industrial hitting their upper limits. Expectations are rising that military conflict between the U.S. and Iran will escalate, increasing weapon demand from Middle Eastern countries, which led to a broad rise in Chinas defense sector. Additionally, there are expectations that the Chinese Peoples Liberation Army will benefit from policies aimed at accelerating military modernization.The semiconductor equipment sector also performed well, with Zhichun Technology reaching its upper limit and Zhengfan Technology showing significant gains. According to a report from the Semiconductor Equipment and Materials International (SEMI), global semiconductor equipment sales are expected to reach $165.9 billion this year, a 23.2% increase from the previous year. Furthermore, global semiconductor equipment sales are projected to hit $229.5 billion by 2028.Meanwhile, the Peoples Bank of China set the yuans central parity rate against the dollar at 6.7939 yuan, an increase of 0.0033 yuan from the previous day, reflecting a 0.05% decline in the yuans value.* This article has been translated by AI. July 24, 2026 16:20
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KOSPI Falls Below 6,700 Amid Global Risk Aversion Geopolitical tensions in the Middle East have led to a surge in international oil prices, triggering a wave of risk aversion in global markets. Following a decline in the New York stock market, South Koreas stock exchanges experienced significant sell-offs, with both the KOSPI and KOSDAQ dropping more than 5%.On July 24, the Korea Exchange reported that the KOSPI closed at 6,690.02, down 406.87 points (5.73%) from the previous trading day. The index opened at 7,000.78, down 96.11 points (1.35%), and continued to decline throughout the session.The drop in the New York market was attributed to rising oil prices amid escalating tensions in the Middle East, raising concerns about a resurgence of inflation. Market participants feared that higher oil prices could delay the Federal Reserves interest rate cuts, leading to increased selling pressure, particularly in technology stocks. This risk-averse sentiment carried over to the domestic market, where foreign investors focused their selling on large-cap stocks, including semiconductors.In the securities market, foreign investors sold a net 3.2685 trillion won, while institutions sold 1.9513 trillion won. In contrast, individual investors purchased a net 5.1783 trillion won.As volatility increased early in the session, both markets triggered sell-side circuit breakers. The Korea Exchange halted the effectiveness of sell orders in the securities market for five minutes at 11:23 a.m. A similar circuit breaker was activated in the KOSDAQ at 11:47 a.m.Among the top market capitalization stocks, SK Square fell 9.17%, Samsung Electro-Mechanics dropped 8.43%, SK Hynix declined 8.34%, Samsung Electronics fell 7.59%, Hyundai Motor decreased 7.18%, LG Energy Solution dropped 5.32%, Samsung C&T fell 5.00%, Samsung Life Insurance decreased 3.49%, and KB Financial Group fell 2.72%. In contrast, Samsung Biologics rose 10.08%, buoyed by strong second-quarter results.The KOSDAQ closed at 785.00, down 46.23 points (5.56%). The index opened at 816.39, down 14.84 points (1.79%), and continued to decline.In the KOSDAQ market, foreign and institutional investors sold a net 130.4 billion won and 358.7 billion won, respectively, while individual investors bought a net 488.8 billion won.Among the top KOSDAQ stocks, Rainbow Robotics fell 16.73%, Juseong Engineering dropped 13.97%, Wonik IPS declined 11.30%, IOTechniques fell 9.13%, PSK dropped 8.73%, EcoPro BM fell 8.29%, EcoPro decreased 7.12%, Rino Industry dropped 7.04%, ABL Bio fell 2.42%, Alteogen decreased 2.28%, and Pharma Research dropped 1.67%. Meanwhile, HLB rose 4.00% amid expectations for FDA approval of its bile duct cancer treatment.Lee Kyung-min, a researcher at Daishin Securities, stated, The domestic market retreated as risk appetite waned due to heightened tensions in the Middle East. This week, both the KOSPI and KOSDAQ have experienced extreme volatility, triggering circuit breakers for five consecutive trading days.* This article has been translated by AI. July 24, 2026 16:04
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Global Inflation Concerns Rise as Oil Prices Hit $100 and U.S. Imposes New Tariffs As international oil prices surpassed $100 per barrel, the United States has imposed new tariffs on key trading partners, reigniting global inflation concerns. Rising oil prices are increasing production and transportation costs, while U.S. tariffs could elevate the prices of imported goods. This situation raises the possibility that central banks in major economies may delay interest rate cuts or consider further hikes.Brent Crude Surpasses $100 Amid Middle East Shipping ConcernsOn July 23, Brent crude for September delivery closed at $100.69 per barrel, a 7.04% increase, marking the first time it has exceeded $100 since May 22. West Texas Intermediate (WTI) also rose by 6.17%, finishing at $92.19 per barrel. Both oil benchmarks have seen gains for five consecutive trading days.Concerns over potential disruptions in oil transportation due to military conflicts in the Middle East have driven prices higher. The ongoing U.S.-Iran tensions have significantly reduced shipping traffic through the Strait of Hormuz, while Yemens Iran-aligned Houthi group reported attacks on two Saudi oil tankers in the Red Sea.If both the Strait of Hormuz and the Bab el-Mandeb Strait are blocked, two major oil transport routes from the Middle East would be simultaneously threatened. Goldman Sachs has projected that if disruptions in the Strait of Hormuz persist, Brent crude could exceed $120 per barrel in the fourth quarter of this year. They also noted that if the Bab el-Mandeb Strait and the Suez Canal experience disruptions, prices could rise further.The surge in oil prices has also impacted the global bond market. With rising energy costs potentially driving inflation higher, concerns have grown that central banks may need to maintain elevated interest rates for longer or implement additional hikes, leading to a rise in government bond yields across major economies.The yield on the U.S. 10-year Treasury note rose to 4.703% on July 23 and climbed to 4.7135% during Asian trading on July 24, the highest level in 18 months. Germanys 10-year bond yield reached 3.205%, the highest since 2011, while the U.K.s 10-year yield rose to 5.096%, marking a two-month high.U.S. Imposes New Tariffs on 60 Countries, Including South KoreaAdditionally, the U.S. has introduced a new tariff policy that could further increase inflationary pressures. The Office of the U.S. Trade Representative (USTR) announced on July 24 that it would impose tariffs of 10-12.5% on 60 trading partners, including South Korea, under Section 301 of the Trade Act. These countries account for 99.4% of total U.S. imports.The application of tariffs varies by country. For South Korea, Japan, and Switzerland, the combined tariff rate of the existing most-favored-nation (MFN) tariff and the new tariff will be set at a minimum of 12.5%. If the existing rate is below 12.5%, the additional tariff will be adjusted accordingly; if it is already above 12.5%, no new tariff will be applied.The same method will apply to the European Union and Taiwan, but the combined tariff rate will be set at 10%. In contrast, 17 countries, including the U.K., Canada, India, and Mexico, will see an additional 10% tariff added to existing rates, while the remaining countries will face a 12.5% additional tariff.The new tariffs took effect at 12:01 a.m. Eastern Time on July 24. Notably, crude oil, key petroleum products, natural gas, and some fertilizer materials are excluded from this tariff list.Market analysts believe that high oil prices will increase global energy and transportation costs, while the new tariffs will pressure the prices of imported goods entering the U.S., contributing to inflationary burdens in different ways.The decisions of major central banks regarding interest rates have also become more complicated. The European Central Bank (ECB) held its deposit rate steady at 2.25% on July 23, cautioning that the impact of rising energy prices on inflation has not yet fully materialized. If oil prices continue to rise, there are discussions about the ECB potentially raising rates further.The Federal Reserve and the Bank of England are also expected to keep rates unchanged at their upcoming monetary policy meetings next week. However, if oil prices continue to climb, the possibility of additional rate hikes cannot be ruled out.According to Reuters, financial markets estimate about a one-third chance that the Fed will raise rates next week, with expectations for two rate hikes by January 2024 already priced in.* This article has been translated by AI. July 24, 2026 15:56
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Finance chief raises growth outlook as South Korea nears $40,000 per-capita income SEOUL, July 24 (AJP) - Deputy Prime Minister and Finance Minister Koo Yun-cheol said Friday that stronger-than-expected economic growth has put South Korea on track for annual growth of around 3 percent and per-capita income of US$40,000, although many households have yet to feel the effects of the stronger economy. The finance chief said the economy had sustained its growth momentum after a robust first quarter. "The likelihood of achieving 3 percent annual growth and per-capita national income of $40,000 this year has increased significantly," Koo said at a meeting in Seoul. He then pledged to advance the government's so-called "3-4-5 vision," which targets potential growth of 3 percent, a place among the world's four largest exporters and per-capita income of $50,000. South Korea's gross domestic product expanded 0.6 percent in the second quarter from the previous three months and 3.7 percent from a year earlier, according to preliminary data released by the Bank of Korea (BOK). Growth slowed from the first quarter's 1.8 percent pace but remained firm as semiconductor-led exports and private consumption offset continued weakness in construction. Exports increased 1.4 percent from the previous quarter and private consumption rose 0.4 percent, while construction investment declined 0.2 percent. Real gross domestic income, which reflects changes in purchasing power caused by shifts in trade prices, rose 3.6 percent from the previous quarter and 15.6 percent from a year earlier. Koo also pledged to contain inflation as renewed tensions in the Middle East threaten to raise oil prices and disrupt supply chains. The government will extend fuel-tax reductions through the end of September and maintain restrictions against the hoarding of urea and urea solution through August. It will ease inventory and sales restrictions on syringes and needles as supplies improve and introduce legislation next month to strengthen penalties for hoarding and allow confiscated goods to be released into the market. Despite the stronger headline figures, annual growth of 3 percent would not necessarily indicate robust momentum through the second half. The BOK has said the economy could still grow 3 percent this year even if GDP contracted by an average of 0.1 percent in each of the third and fourth quarters, reflecting the unusually strong expansion already recorded in the first half. Construction weakness and an uneven recovery outside the semiconductor industry therefore remain potential drags even if the annual target is reached. The prospect of per-capita gross national income reaching $40,000 is also heavily dependent on the exchange rate. Per-capita GNI rose 4.6 percent in won terms last year but increased only 0.3 percent in dollar terms to $36,855 as the currency weakened. Crossing the $40,000 threshold this year would require an increase of about 8.5 percent in dollar terms, meaning continued won weakness could offset growth in domestic nominal income. The central bank said in March that, assuming no exchange-rate effect and annual GNI growth of 4.4 percent, the average since 2014, South Korea would surpass $40,000 in 2027 rather than this year. Even reaching the threshold would not necessarily translate into comparable gains for middle- and lower-income households because GNI includes income earned by companies and the government and divides the total by the population. Average monthly household income rose 2.4 percent from a year earlier in the first quarter but increased only 0.4 percent after inflation, while earned income grew just 0.3 percent in nominal terms. Disposable income increased 2.7 percent, but consumption spending climbed 5.3 percent, reducing the average household surplus by 3.1 percent. Income-distribution indicators also deteriorated in 2024, with the Gini coefficient rising to 0.325 and the income ratio between the richest and poorest fifths widening to 5.78. The relative poverty rate, which measures the share of people living on less than half the median income, rose 0.4 percentage point to 15.3 percent. Annual growth of 3 percent and per-capita GNI of $40,000 would mark significant milestones for the size of the Korean economy, but broader improvements in living standards will depend on whether export and corporate income spreads into wages and household disposable income. July 24, 2026 14:34 -
Asia's Gen Z do not wait for permission anymore SEOUL, July 24 (AJP) - A canceled exam in New Delhi. A social media ban in Kathmandu. A housing allowance in Jakarta. A job quota in Dhaka. None of these, on its own, reads like the beginning of a national crisis. Yet each one sent hundreds of thousands of young people into the streets, and in two of those countries the government did not survive. Something has shifted in how Asia's youngest adults deal with power. The region's leaders are finding out the hard way. The latest lesson is unfolding in India. For more than three weeks, students have held a protest site near Parliament in New Delhi, and smaller demonstrations have spread to Mumbai, Bengaluru, Hyderabad and dozens of other cities. The spark was the leak of a national medical school entrance exam in May, which forced millions of students to retake their tests. Prime Minister Narendra Modi, now in his 13th year in office, waited until this week to respond, posting on social media that nothing matters more than the welfare of the youth and promising fast-track tribunals for the leakers. Protesters called it late and lame. Their demands widened the next day. Why does an exam leak shake a government? Look underneath it. India's economy is growing at a healthy pace on paper. Still, nearly 40 percent of young degree holders are unemployed, according to the State of Working India 2026 report from Azim Premji University. Families pour savings and debt into an education system that routinely fails to prepare graduates for work. Then the one gateway that promised fairness, the entrance exam, turns out to be crooked too. The same sequence has been playing out across the region for four years. In Bangladesh in June, 2024, students protested a quota system that reserved a large share of government jobs for descendants of independence war veterans. In a country where a stable public sector job is one of the few reliable paths to a middle-class life, the quota felt like a rigged game. Then Prime Minister Sheikh Hasina dismissed the protesters with a slur, her security forces opened fire, and the movement stopped being about quotas at all. More than 1,000 people died, according to the interim government's health ministry. In August, Hasina fled to India by helicopter, ending 15 years in power. Nepal came next, in September 2025. The government of K.P. Sharma Oli banned 26 social media platforms, including Facebook, YouTube and X, citing registration rules. Young Nepalis read it as censorship, and the tinder was already dry. Videos contrasting the luxury vacations of politicians' children with the grinding poverty of ordinary families had gone viral under hashtags mocking the "nepo kids" of the elite. Within days, parliament was burning and at least 19 protesters were dead. Oli resigned. The ban itself was lifted almost immediately, and it changed nothing. The ban was never the story either. In Indonesia, the fuse was a report in August 2025 that all 580 members of parliament were collecting a monthly housing allowance of about $3,000, roughly 10 times the minimum wage in Jakarta. Protests turned into riots after a police armored vehicle ran over and killed Affan Kurniawan, a 21-year-old motorcycle delivery driver who was not even demonstrating. He was trying to complete a food order. In a country where the gig economy has become the holding pen for millions of young people the formal economy cannot absorb, his death needed no explanation. President Prabowo Subianto revoked the perks within days. At least eight people had died by then. Sri Lanka started it all in 2022, when an economic collapse sent young protesters into the presidential palace, some swimming in its pool, and President Gotabaya Rajapaksa fled the country. What makes this wave remarkable is where it is happening. These are societies where age confers authority, where enduring hardship quietly is treated as a virtue, where the young have long been told their turn would come if they studied and waited. Protest itself is nothing new in Asia. Students drove South Korea's democratization in 1987 and filled Indian streets long before independence. But even those movements had structure the state could recognize. Umbrella coalitions, dissident elders, opposition politicians ready to carry street demands to the negotiating table. The new thing is a generation that skips all of it, organizing itself, naming its own enemies, and bringing down governments run by men twice and three times its age. The waiting is over. Governments keep misreading these movements, and the errors follow a pattern of their own. Leaders respond to the trigger. They cancel the ban, revoke the allowance, promise tribunals for the exam leakers. Each time the concession lands as an insult, because the protesters were never asking for the small thing. They were asking why an entire generation did what it was told, studied harder than any cohort before it, and arrived at adulthood to find the jobs missing, the exams rigged, and the officials' children shopping in Paris. No tribunal answers that. The next instinct is to look for someone to arrest, buy off, or sit across a table from. There is no one. India's protests are fronted by the Cockroach Janta Party, which is not a party at all but a satirical movement named after an insult delivered by the chief justice of the Supreme Court. Nepal's protesters organized on Discord, a gaming chat app. Indonesian demonstrators flew a pirate flag from a Japanese comic. To men who came up through party machines, this all looks unserious, and that is exactly the miscalculation. A movement with no head cannot be decapitated. The old strongman playbook was written against opposition parties and union bosses. It has no page for a hashtag. What remains is force, and force is the fastest way to lose. Hasina's men fired on students, and she lost the country. Nepal's crackdown killed 19, and the government fell within five days. In India, the batons and tear gas deployed on Monday turned a protest about exam accountability into something much larger. Watching from Seoul, it is tempting to treat all this as someone else's weather. South Korea's young people do not burn parliaments. But the underlying inventory should sound familiar. Brutal exam competition. Credential inflation. Youth unemployment concentrated among the educated. Housing priced out of reach. A raw, almost forensic sensitivity to fairness. The fury that followed South Korea's own hiring scandals struck the same nerve. Korean youth have so far channeled that anger through ballots and online mobilization rather than street occupations, and they have swung elections doing it. The difference between Seoul and Dhaka is not the grievance. It is whether institutions still offer a believable way out. That is the real warning in this wave. The Gen Z across Asia are not more radical than the generations before them. It is less patient with theater, and it no longer accepts a system's promises as payment. These young people watched their parents defer, and they watched deference go unrewarded. July 24, 2026 14:02 -
Nongshim to Raise Prices of 43 Brands by 5.8% Nongshim will raise the ex-factory prices of its popular cup noodles, snacks, and beverages by an average of 5.8% starting August 1. The primary reason for the increase is the soaring costs of materials, including packaging, due to prolonged high exchange rates and oil prices. However, all instant noodle products, including Shin Ramyeon, which directly affect consumer prices, are excluded from this price hike. According to Nongshim on July 24, the price adjustment will affect a total of 43 brands, including 18 cup noodles, 23 snacks, and 2 beverages. The average increase by category is 6.0% for cup noodles, 5.5% for snacks, and 7.7% for beverages. As a result, the recommended retail prices for key products will also rise. The price of the flagship cup noodle, Yukgaejang Cup Noodle, is expected to increase from 1,100 won to 1,200 won, while the popular snack Shrimp Chips (90g) will go up from 1,500 won to 1,600 won. The actual selling prices of major products such as Shin Ramyeon Cup, Honey Twist Snack, Capri Sun, and Welchs will also be adjusted across various distribution channels. This price adjustment marks the first increase for noodles in 1 year and 5 months since March 2025, while Shrimp Chips have seen price changes after a decrease in 2023 and a prior increase in September 2022. Nongshim noted that this is effectively the first increase in 3 years and 11 months. Nongshim stated that the accumulated cost burden has exceeded its capacity to absorb it. A Nongshim official said, The surge in material prices, including packaging, due to high exchange rates and oil prices stemming from international circumstances has significantly deteriorated the profitability of our domestic operations. We have managed to endure this through operational efficiency and cost-cutting measures, but the increase in supplier prices has made this adjustment unavoidable. Nevertheless, Nongshim has decided to freeze the prices of all instant noodles, which account for 63% of its noodle sales, to minimize the burden on consumers amid high inflation and to support the governments price stabilization efforts. Additionally, the company plans to expand discounts and promotional offers at large supermarkets, convenience stores, and e-commerce platforms to reduce the perceived impact of the price increase on consumers. Recently, the food industry has seen price adjustments due to rising costs of packaging, raw materials, and logistics. Lotte Chilsung Beverage raised the ex-factory prices of 44 items, including Chilsung Cider and Pepsi Cola, by an average of 5.3% in June, and Ottogi increased prices for 29 items, including curry, noodles, ketchup, and pepper this month. July 24, 2026 10:52