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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 -
APR to Internalize Key Component Technology for Beauty Devices APR is set to internalize system semiconductor and key component technology for beauty devices through a government project.On July 23, APR held a kickoff meeting at Lotte World Tower in Songpa-gu, Seoul, following its selection by the Ministry of Trade, Industry and Energy for the semiconductor advanced industry technology development project, the company announced on July 26.The event was attended by Shin Jae-woo, head of APRs R&D Center, Park Dong-hee, head of the technology research office, and representatives from domestic university research institutes and government-funded research organizations.APR was selected as the lead organization for the project last month and will collaborate with participating organizations to carry out the project over four years, concluding in 2029. The consortium is expected to receive a total funding of 7.6 billion won.The project aims to secure core components and system technologies that influence the output stability, miniaturization, energy efficiency, and safety control of beauty devices. Research related to system semiconductors, which determine the performance of beauty devices, will also be conducted.Additionally, APR plans to expand its product development capabilities in the beauty device sector into the semiconductor and core technology areas, establishing a K-Beauty Tech platform that integrates semiconductors, artificial intelligence (AI), and hardware.An APR official stated, We will collaborate with domestic research institutions and universities to internalize key K-Beauty Tech technologies and secure differentiated technological competitiveness in the global market.Meanwhile, APR plans to introduce new medical beauty devices in South Korea as early as the end of this year and aims for global business expansion in the medium to long term.* This article has been translated by AI. July 26, 2026 18:00
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U.S. Tariff War Enters New Phase as Forced Labor Tariffs Take Effect The United States has entered a prolonged trade conflict as it implements forced labor tariffs under Trade Law 301, following the expiration of temporary global tariffs under Trade Law 122. The South Korean government now faces the challenge of maintaining the agreed 15% tariff limit while also responding to item-specific measures under Trade Expansion Act 232. ◆301 Tariffs Replace Global Tariffs; South Korea Faces 12.5% Rate According to the Ministry of Trade, Industry and Energy, the U.S. Trade Representative (USTR) confirmed on July 23 that it would impose tariffs of 10% to 12.5% on 60 economic zones that do not sufficiently block imports of products made with forced labor. These tariffs took effect at 12:01 a.m. Eastern Time on July 24. This action largely replaces the 10% global tariff that the U.S. had temporarily imposed for 150 days under Trade Law 122, following a Supreme Court ruling on tariff legality. The 60 targeted economic zones account for 99.4% of all U.S. imports, effectively filling the gap left by the global tariff. For South Korean products, a total tariff of 12.5% will apply, combining existing tariffs with the forced labor tariffs. If the existing tariff is lower than 12.5%, the difference will be covered by the 301 tariff; if it is already above 12.5%, no additional tariffs will be applied. ◆301 and 232 Tariffs Create Additional Burdens The key issue is the ongoing investigation into structural overproduction capacity in the manufacturing sector under Trade Law 301. In March, the U.S. began a separate investigation involving South Korea, China, the European Union, Japan, and 13 other economic zones. The USTR has identified sectors of concern, including semiconductors, steel, automobiles, and batteries. The South Korean government maintains that the final tariff rate, reflecting both forced labor and overproduction measures, must not exceed the agreed 15% limit. With the forced labor tariff set at 12.5%, only a nominal 2.5 percentage points remain before reaching the cap. While the U.S. has reaffirmed its commitment to existing agreements, uncertainties remain regarding the tariff rates, applicable items, and exemptions resulting from the overproduction investigation. Even if the government successfully defends the 15% limit, concerns persist. The U.S. is expanding Trade Expansion Act 232 measures based on national security, having already included certain home appliances like refrigerators and washing machines under a 25% tariff. Investigations and follow-up actions are also underway for strategic industries such as semiconductors and pharmaceuticals. Items subject to 232 tariffs are exempt from the forced labor tariffs, but higher tariffs may still apply on a case-by-case basis. This means that even if the final tariff rate remains within the 15% limit, individual export items could face higher rates. The varying legal bases, tariff rates, and exemption conditions for each item are expected to increase the burden on companies regarding customs and contract management. ◆Growth Rate Under Pressure: Prepare for Tariffs as Constants This prolonged tariff conflict poses challenges for the South Korean economy. The Bank of Korea has previously analyzed that U.S. tariff policies, reflecting the South Korea-U.S. tariff agreement, could lower the countrys growth rate by 0.45 percentage points in 2025 and 0.60 percentage points in 2026. The export growth rate is also estimated to decrease by 1.6 percentage points. As the U.S. diversifies its tariff system with different legal bases and targeted items, the government is urged to analyze the sector-specific impacts from the outset and develop exemption arguments for each item. Companies must also revise their export and management strategies to account for tariff burdens. Jeon Yoon-sik, a senior researcher at the Korea International Trade Association, emphasized, Companies need to view U.S. tariffs as constants rather than variables when formulating export and management strategies. They must proactively prepare for potential 301 measures related to overproduction and the possibility of overlapping tariffs while managing trade issues stably. * This article has been translated by AI. July 26, 2026 17:16
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U.S. Imposes Higher Forced Labor Tariffs on South Korea Compared to Taiwan and EU South Korean exporters are facing heightened price competitiveness challenges as major rivals like Taiwan and the European Union benefit from lower tariffs imposed by the United States. Concerns are growing that a widening tariff gap could hinder the achievement of this years export targets, particularly for consumer goods such as chemicals, cosmetics, and food products. According to relevant authorities on July 26, the U.S. government has imposed a 12.5% tariff on South Korean products due to perceived inadequacies in measures against forced labor imports. This action is in accordance with Section 301 of the Trade Act, which allows for tariffs in response to discriminatory practices against U.S. companies. Products subject to existing tariffs, such as steel, aluminum, and automotive parts, as well as exempt items like semiconductors, are not included in this Section 301 action. The tariff rate applied to South Korea is 2.5 percentage points higher than the 10% rate for the EU and Taiwan. Japan also faces the same 12.5% tariff as South Korea. The differences in tariffs among countries competing for the same U.S. market can directly impact product pricing and order competitiveness. The chemical sector is likely to be significantly affected. General chemical products often compete with Taiwan, while precision chemical products face competition from the EU. Higher tariffs on South Korean products will inevitably disadvantage them in price competition. A representative from the chemical industry stated, The fact that South Koreas tariff rate is higher than that of competing countries is a negative factor for exporters. Consumer goods such as cosmetics and food products are also at risk. These products tend to have consumers who are sensitive to price changes, meaning even slight tariff differences can affect local selling prices and market share. Exporters who have expanded into the U.S. market based on K-pop and the Korean Wave may face increased burdens. The home appliance, electronics, and machinery sectors are also grappling with uncertainties stemming from U.S. tariff policies. While the U.S. applies product-specific tariffs on steel and aluminum, the criteria for these tariffs frequently change, complicating companies pricing and supply chain strategies. Looking ahead, the results of the ongoing U.S. overproduction investigation will be a key variable. If additional tariffs are imposed but the tariff gap with competing countries narrows, it could mitigate some of the impact. However, if the current disparity is maintained or widens, South Korean exporters are likely to see a decline in their competitive edge. Kim Tae-hwang, a professor of economics at Myongji University, noted, The upcoming results of the overproduction investigation will be a critical factor. If the tariff rate differences with competing countries do not narrow, exporters will have no choice but to raise prices, making it difficult to achieve this years export targets due to weakened price competitiveness.* This article has been translated by AI. July 26, 2026 17:16
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South Korea Diversifies Oil Supply Amid Middle East Tensions The oil supply chain in South Korea is facing significant disruptions as the Strait of Hormuz and the Red Sea are threatened with blockades. Refineries are grappling with supply shortages and increased transportation costs, prompting them to diversify their sources of crude oil.According to industry sources, GS Caltex recently imported Venezuelan crude oil, a product that South Korean refiners had avoided for over 20 years due to transportation distance and economic concerns. The urgency of the current supply situation has led to this reconsideration.South Korea relies heavily on imported oil, with approximately 70% of its crude coming from the Middle East before the outbreak of conflict in the region. A significant portion of this oil passes through the Strait of Hormuz.With the ongoing conflict, access to oil from major producers like Saudi Arabia, the United Arab Emirates, and Kuwait has become increasingly difficult. Additionally, attacks by Houthi rebels on oil tankers in the Red Sea and a blockade of Saudi vessels have further complicated alternative shipping routes.As both exits of the Middle Eastern oil supply chain face threats, tankers heading to Asia must now navigate around the Cape of Good Hope via the Suez Canal. This detour can more than double fuel costs and add approximately $1 million in tolls per vessel.Potential alternative supply sources for South Korean refiners are limited to the United States, the North Sea, and Venezuela. Brent crude from the North Sea is primarily allocated for European demand, making it difficult for South Korean refiners to secure large quantities at competitive prices.U.S. crude oil is lighter, making it challenging to fully replace Middle Eastern supplies. South Korean refiners, who have focused on processing heavy crude into high-value products, may face operational difficulties if they increase their reliance on U.S. light crude.Venezuelan heavy crude could help address the limitations of U.S. light crude. By blending the two types of oil, refiners could potentially create a more economically viable supply chain that mitigates the issues stemming from Middle Eastern disruptions.While S-Oil, which is majority-owned by Aramco, faces restrictions on importing non-Middle Eastern crude, SK Energy and HD Hyundai Oilbank are likely to expand discussions on Venezuelan imports if the risks in the Middle East persist. The results of GS Caltexs refining tests will likely influence the decisions of these two companies.This conflict has prompted a significant reevaluation of the supply chain structure for South Korean refiners, who have relied on Middle Eastern oil for about 70% of their needs. Even if the Middle East remains a primary supplier, there is an increasing push to enhance the share of non-Middle Eastern crude from sources like the U.S., Canada, and Venezuela to establish a reliable alternative supply network for emergencies.Kim Tae-hwang, a professor of international trade at Myongji University, stated, The import of Venezuelan crude oil is not about replacing existing Middle Eastern and U.S. supplies but rather securing a complementary option to prepare for supply chain instability. South Korea possesses the refining technology and facilities to convert heavy and extra-heavy crude into high-value products, making it competitive in this regard.* This article has been translated by AI. July 26, 2026 17:04
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South Korea Imports Venezuelan Oil for First Time in 20 Years As the U.S.-Iran conflict continues to disrupt oil supply, Venezuelan crude oil has made its way to South Korea for the first time in over 20 years. This development raises questions about whether it can serve as an alternative to the critical chokepoints in the Strait of Hormuz and the Red Sea, which are seen as major vulnerabilities for the national economy and energy sovereignty.According to industry sources, GS Caltex imported 110,000 barrels of Venezuelan oil last month, amounting to $12.015 million, with an average import price of $109.23 per barrel.This marks the first import of Venezuelan oil by South Korea since 2003-2006, when the country imported heavy crude oil from Venezuela to replace bunker fuel. However, trade ceased as former Venezuelan President Hugo Chávez intensified resource nationalism. Following this, U.S. sanctions against the Maduro regime made the import of Venezuelan oil an unfeasible option.However, with the potential collapse of the Maduro regime earlier this year and the prolonged uncertainties surrounding the Middle East conflict, the South Korean government and refining industry have begun to seriously assess the economic viability and applicability of Venezuelan oil in domestic facilities. Moon Shin-hak, the first vice minister of the Ministry of Trade, Industry and Energy, stated in May that companies were in contact regarding the import of Venezuelan oil and that results would likely emerge soon.GS Caltex has been the most proactive in this regard. Chevron, which holds a 50% stake in GS Caltex, is currently the only major oil company actively engaged in oil drilling operations in Venezuela, producing approximately 200,000 barrels per day. Given the favorable conditions for short-term production increases, it is expected that Chevron will begin allocating export volumes to GS Caltex.SK Energy and HD Hyundai Oilbank are also reportedly starting to evaluate the economic feasibility and refining potential of Venezuelan oil.However, the Venezuelan Merey 16 crude oil has a lower API gravity than Middle Eastern Dubai crude, making it a heavy sour crude with high viscosity and significant impurities such as sulfur and metals. The refining process is complex, requiring additional processing to convert it into high-value products like gasoline and diesel, making the assurance of economic viability a key concern.In fact, GS Caltexs recent import of this crude oil is primarily aimed at assessing whether it can secure stable refining margins rather than generating immediate profits. A GS Caltex official confirmed, We have indeed imported Venezuelan oil, but due to its lower quality, it was brought in for testing purposes. If it is confirmed that refining margins can be secured, imports are expected to increase starting next year. An industry source noted, Given the precarious situation in the Strait of Hormuz and the Red Sea, diversifying oil supply chains to countries like Canada, Australia, and Kazakhstan is not just an option but a necessity, adding that the import of Venezuelan oil is part of this diversification effort. July 26, 2026 17:04
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When merits break: Will cockroach movement test Asia's youths? SEOUL, July 26 (AJP) - The most remarkable thing about India's Cockroach movement is not that it forced the resignation of a cabinet minister. It is that it began with an insult. When a senior judge reportedly dismissed unemployed young Indians as "cockroaches" and "parasites," Generation Z did something previous generations rarely attempted. Instead of rejecting the slur, they adopted it, transforming a satirical Instagram page into a nationwide movement that ultimately compelled Prime Minister Narendra Modi's government to sacrifice Education Minister Dharmendra Pradhan over a scandal involving leaked entrance examinations. The movement amassed about 22 million Instagram followers, underscoring how quickly a satirical page could become national political infrastructure. It also exposed a stark generational imbalance: roughly 40 percent of India's population is under 40, while only about 10 percent of members of parliament fall within that age group. The episode may appear uniquely Indian. It is not. Across Asia, an uncomfortable question is emerging among younger generations: What happens when education no longer guarantees opportunity? The answer increasingly shapes politics as much as economics. For decades, much of Asia operated under a remarkably similar social contract. Study hard. Pass increasingly competitive examinations. Enter a good university. Secure a stable job. Join the middle class. That formula powered Japan's postwar miracle, South Korea's industrial rise, Singapore's technocratic success and, more recently, China's and India's expanding middle classes. Meritocracy became Asia's development model Parents accepted intense educational competition because they believed the reward justified the sacrifice. Governments invested heavily in schools because education produced economic growth. Young people tolerated extraordinary academic pressure because they believed examinations were fair. That faith is beginning to erode. India's medical entrance examination scandal merely exposed the deepest fault line. The cancelled National Eligibility cum Entrance Test, or NEET, affected about 2 million candidates seeking admission to medical colleges. The paper leak was also linked by protest organizers to more than a dozen student deaths by suicide, turning an administrative scandal into a national reckoning over the cost of competitive education. Millions of Indian families devote years—and often enormous financial resources—to preparing for a limited number of university places because higher education remains one of the few reliable routes into the middle class. When examination papers leak, students lose confidence not only in one test but in the proposition that effort determines success. India's labor market makes that sense of betrayal sharper. The International Labour Organization's latest comprehensive employment study found that educated young people accounted for an increasingly large share of the country's unemployed, illustrating the mismatch between expanding access to education and the economy's capacity to absorb graduates. The movement was therefore not simply about testing irregularities. It was about the erosion of the promise that studying hard and competing fairly would deliver upward mobility. Story hits home in South Korea South Korea has long been considered one of Asia's quintessential meritocratic societies. Yet the same bargain is weakening there, even without the street mobilization seen in India. According to the Ministry of Data and Statistics, 48.6 percent, or about 605,000, of Koreans aged 15 to 29 who had completed their education but remained unemployed had been without work for at least one year. That was the highest proportion since comparable data began in 2009. The number out of work for at least three years reached about 241,000, or 19.4 percent, also a record. Those figures describe more than a sluggish labor market. They show the growing distance between educational completion and economic independence. Young Koreans have largely followed the formula prescribed by previous generations. They remain in education longer, collect more qualifications and compete for an increasingly narrow range of secure professional jobs. Yet the transition from university to employment is becoming slower and less predictable. Real income rose only for young people in the richest 20 percent of households, gaining 1.6 percent, while it fell across each of the remaining four income groups, according to recent data. The result suggests that family wealth is increasingly determining whether young adults can withstand prolonged job searches, pursue further qualifications or wait for desirable employment. What was once presented as a competition based on talent and effort is becoming inseparable from parental resources. The economic strain does not end with employment. For many young Koreans, housing has become effectively inaccessible without family assistance, while insecure work delays marriage, childbirth and household formation. South Korea's record-low fertility is therefore not simply a lifestyle choice or a cultural rejection of marriage. It reflects the rising cost of gaining admission to adulthood. The same tension appears in the country's financial markets. As asset prices surged, young retail investors increasingly turned to leveraged exchange-traded funds and margin borrowing in an attempt to close a wealth gap that wages alone could no longer bridge. More than 1.16 million people completed the basic education course required to trade leveraged exchange-traded funds in the first half of this year, about 19 times the number a year earlier. A further 690,000 completed additional training for single-stock leveraged ETFs between April and June. This is meritocracy's financial afterlife: when education and work fail to deliver mobility quickly enough, speculation begins to look like a rational shortcut. South Korea's youth crisis also sits within a broader social contradiction. The country ranks among the world's longest-lived societies, with life expectancy reaching 83.7 years, yet it continues to record the highest suicide rate in the Organization for Economic Cooperation and Development. In 2023, 24.8 people per 100,000 died by suicide, more than double the OECD average of 10.9. The comparison should not be used to reduce suicide to academic or employment pressure alone. But it does illustrate the heavy psychological cost that can accompany an intensely competitive society when conventional routes to security begin to narrow. India's Cockroach movement is a loud expression of frustration. South Korea's version has often been quieter: withdrawal from job searches, delayed family formation, leveraged investment and disengagement from the milestones that once defined adulthood. Different economies, same frustration The symptoms vary across the region. China's young people popularized "lying flat" and later "letting it rot" amid weak graduate employment and slowing economic momentum. Japan's prolonged stagnation produced a "lost generation," many of whom moved between temporary and insecure jobs despite strong educational backgrounds. South Korea's "N-po generation" came to describe young people giving up dating, marriage, childbirth, home ownership and other ambitions as living costs outpaced wages. India's Cockroach generation is the latest and most politically explosive manifestation of the same phenomenon. The promise that education automatically delivers prosperity is no longer self-evident. A generation raised online The Cockroach movement also differs from earlier youth protests because it belongs entirely to the digital age. The movement was organized not through student unions or political parties but through memes, livestreams, Instagram reels and viral videos. Protesters documented demonstrations, interviewed one another and turned internet jokes into political slogans. Its self-mocking recruitment material listed qualifications such as being "unemployed," "lazy," "chronically online" and able to "rant professionally." The humor was not incidental. It allowed young Indians to turn labels normally used to shame them into a shared political identity. It also made the campaign legible to millions who might never attend a party rally or read a political manifesto. Unlike previous protest movements, social media was not merely a communication tool. It became the movement's headquarters, broadcasting network and recruitment office at once. Merit in the age of AI The challenge is becoming more acute as artificial intelligence begins reshaping entry-level employment. Asia's younger generation is being told simultaneously to acquire more advanced skills and to prepare for the possibility that many of the cognitive tasks associated with graduate employment will be automated. That creates a new contradiction. A university degree remains expensive and socially expected, but its economic premium is becoming less certain. Young people are asked to invest more in education even as employers gain technological alternatives to hiring them. This does not mean AI will simply eliminate graduate work. It does mean that governments can no longer rely on expanding education alone as a youth policy. They must also produce credible routes from education into employment, housing and economic independence. Replacing one Indian minister will not repair an examination system, and Korea's youth employment data will not be reversed by a single jobs program. The deeper issue is institutional trust. Young people may accept fierce competition when the rules appear fair and the rewards attainable. They become alienated when success increasingly depends on leaked papers, family wealth, asset ownership or access to shrinking professional networks. For half a century, Asian governments persuaded families that relentless investment in education would produce rising prosperity. That promise helped build modern Asia. The danger now is not simply that the return on education is weakening. It is that younger generations are beginning to believe the competition itself has been rigged. July 26, 2026 16:42 -
HD Hyundai Samho secures crane project in US as part of MASGA SEOUL, July 26 (AJP) -South Korea's Make American Shipbuilding Great Again (MASGA) initiative recorded its first visible commercial milestone after HD Hyundai secured a contract to supply four port cranes for an HMM-operated terminal in the U.S., in a project combining Korean shipbuilding, steelmaking and port logistics. HD Hyundai said Sunday that HD Hyundai Samho signed an agreement with Washington United Terminals (WUT), the operator of HMM's container terminal at the Port of Tacoma in Washington state, to supply two ship-to-shore cranes and two rubber-tired gantry cranes. The project will replace two aging quay cranes originally supplied by HD Hyundai Samho in 1999 while adding two new yard cranes, expanding cargo-handling capacity and improving the terminal's ability to service larger container vessels. The equipment is scheduled for delivery by 2028 under a turnkey contract covering design, manufacturing, transportation, installation and commissioning. The cranes will be built using premium steel produced by POSCO, making the project one of the first to integrate South Korea's shipbuilding, steel and logistics industries under the Korea-U.S. maritime cooperation framework. The contract is being viewed as the first tangible commercial outcome of MASGA, the Korea-U.S. shipbuilding partnership unveiled as part of Seoul's broader trade and industrial package with Washington. The initiative seeks to leverage South Korea's world-leading shipbuilding and maritime manufacturing capabilities to help revitalize the U.S. maritime industry while expanding bilateral industrial cooperation. The Tacoma project follows the recent launch of the Korea-U.S. Shipbuilding Partnership Center (KUSPC) in Washington, which is expected to serve as a platform for joint shipbuilding, port modernization and maritime supply-chain projects. Industry officials said HD Hyundai Samho's long track record in the United States helped secure the order. Since entering the U.S. market in 1985, the company has supplied 20 port cranes to major American ports, including equipment currently operating at Tacoma. "Winning the Tacoma port crane project demonstrates the technological expertise and quality competitiveness we have built through numerous domestic and overseas projects," an HD Hyundai Samho official said. "We will continue developing environmentally friendly, high-efficiency port equipment to successfully support the MASGA initiative." HMM said the modernization of WUT would strengthen the terminal's operational efficiency and improve logistics services for global customers while supporting the company's broader investment in port infrastructure alongside fleet expansion. Separately, HD Korea Shipbuilding & Offshore Engineering last week signed a definitive agreement with Siemens Digital Industries Software in Washington to develop an AI-powered next-generation marine platform and digital shipyard. The partnership aims to create an autonomous manufacturing system linking every stage of shipbuilding—from design and production to logistics, inspection and sea trials—through AI, digital twins and automation, further reinforcing Korea's role in modernizing the U.S. shipbuilding industry under the broader MASGA framework. July 26, 2026 12:49 -
Korea Fair Trade Commission Fines Companies 870 Million Won for Bid Rigging 한국전력공사가 발주한 전력케이블 보호용 플라스틱관 구매 입찰에서 담합한 조합과 업체들이 공정당국에 적발됐다. 공정거래위원회는 2017년 11월부터 2023년 1월까지 한전이 발주한 394건의 파형관 구매 입찰에서 담합한 3개 조합과 7개 사업자에 대해 총 8억6800만원의 과징금을 부과하기로 결정했다고 26일 밝혔다. 이들은 입찰 전에 낙찰예정자와 물량비율을 합의했다.파형관은 전력케이블을 감싸 보호하는 주름진 형태의 플라스틱관이다. 당시 중소기업자 간 경쟁제품으로 지정돼 공공입찰에는 중소기업이나 이들을 대신해 입찰에 참여하는 적격조합만 참가할 수 있었다.이번에 적발된 한국합성수지파형관사업협동조합과 한국플라스틱기술연구사업협동조합, 한국피이관공업협동조합은 회원사를 대신해 입찰에 참가한 뒤 낙찰받은 물량을 회원사에 배분하는 적격조합이다.이들은 품목과 입찰 방식에 따라 역할을 나눠 담합을 실행했다. 파형관조합과 플라스틱조합은 2018년 6월부터 2023년 1월까지 진행된 원형 파형관 전국·지역제한 입찰 384건에서 낙찰 순번을 미리 정하고 합의한 내용에 따라 투찰했다. 그 결과 파형관조합은 204건, 플라스틱조합은 175건을 낙찰받았다.나선형 파형관 지역제한 입찰에서는 3개 조합이 2017년 11월부터 2022년 12월까지 진행된 10건의 입찰에서 회원사 수에 비례해 낙찰물량을 나누기로 합의했다. 해당 입찰은 낮은 공급단가를 제시한 사업자부터 물량을 배분하는 방식이었지만 실제로는 합의한 비율과 유사하게 물량이 배분됐다.파형관조합 소속 7개 회원사도 원형 파형관 전국입찰에서 조합 간 담합 사실을 알면서 들러리로 투찰하거나 조합을 통해 입찰에 참여한 것으로 조사됐다.공정위는 이들의 행위를 불법 담합으로 보고 시정명령과 함께 과징금을 내렸다. 과징금은 플라스틱조합 2억5200만원, 피이관조합 1억4100만원, 파형관조합 1억2800만원, 영진산업 7000만원 등 총 8억6800만원이다.공정위 관계자는 "중소기업을 지원하기 위한 적격조합이라 하더라도 입찰담합을 벌일 경우 예외 없이 엄중 제재한다는 점을 명확히 했다"며 "향후 유사한 법 위반 행위가 적발될 경우 최근 상향된 과징금 기준을 적용해 더욱 엄정하게 대응할 계획"이라고 강조했다. July 26, 2026 12:08
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KOTRA Expands Support for Middle East Export Routes Amid Shipping Disruptions As tensions between the U.S. and Iran have led to a significant decrease in shipping traffic through the Strait of Hormuz, coupled with threats of maritime blockades from Yemens Houthi rebels, South Korean export companies are facing increased logistical burdens in the Middle East. KOTRA has decided to expand its support by providing information on alternative ports and transportation cost assistance to mitigate export disruptions. The Houthis have declared a maritime blockade against Saudi Arabia, warning shipping companies to avoid Saudi ports.According to KOTRA, South Korean exporters are utilizing alternative routes through ports outside the Strait of Hormuz, including Khor Fakkan in the United Arab Emirates, and Sohar and Salalah in Oman, as well as Jeddah in Saudi Arabia.However, congestion at these alternative ports is worsening. It currently takes 2 to 3 weeks for vessels to enter Sohar and Salalah, while Jeddah is experiencing delays of over 2 weeks due to the influx of cargo rerouted from Hormuz. Inland transportation costs have also more than doubled compared to previous rates.Shipping traffic through the Strait of Hormuz has sharply declined since the resumption of hostilities between the U.S. and Iran. The risk of vessel attacks has led some ships to halt their voyages or turn back, while war risk insurance premiums have surged.KOTRA is monitoring the operational status of 24 ports and alternative routes daily through its 13 trade offices in the Middle East. This information is provided to companies in the form of reports on the Current Operations of Major GCC Ports and Logistics Routes by Alternative Ports.Costs incurred after arriving at local ports, such as storage fees, customs duties, and inland transportation costs, are supported through KOTRAs overseas joint logistics center program, with up to 24 million won available per company. The scope of inland transportation cost support has also been expanded to include overland transport between the six GCC countries.Maritime and air transport costs from domestic departure points to local ports can be supported with emergency vouchers of up to 60 million won. Companies already utilizing export vouchers can also apply for the overseas joint logistics center program.By combining these two programs, companies can receive support totaling up to 84 million won for international transport and local logistics costs.KOTRA has expanded its joint logistics centers in the Middle East to 17. Companies that have exported to 22 Middle Eastern countries from 2023 to this year can utilize up to three joint logistics centers.From March 3 to July 21, KOTRAs emergency response consultation center received 1,088 inquiries related to the Middle East. Of these, 215 were logistics-related, accounting for about 20%. The main issues included increased costs due to rerouted transport, cargo returns, and a lack of local information.Kang Kyung-sung, president of KOTRA, stated, Logistics in the Middle East is directly linked to export feasibility and costs. We will provide local information promptly and operate support programs flexibly according to the situation.* This article has been translated by AI. July 26, 2026 11:04
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KB Kookmin Bank Utilizes JP Morgan's Blockchain Network to Accelerate Export and Import Payments KB Kookmin Bank is set to launch an overseas payment service for export and import companies utilizing a blockchain payment network. This initiative aims to reduce payment times for businesses dealing with countries across significant time zones, such as the United States and the Middle East, and to enhance the speed of trade payment recovery.On July 26, KB Kookmin Bank announced that it will introduce a payment service for export and import companies linked to JP Morgans blockchain division, Kinexys by J.P. Morgan, next month.KB Kookmin Bank is the first domestic financial institution to utilize Kinexys blockchain payment network for export and import transactions.Kinexys is JP Morgans blockchain payment infrastructure designed for institutional clients, including financial institutions and global corporations. The cumulative transaction volume has surpassed $4 trillion, with an average daily transaction amount of approximately $7 billion.The service supports remittances and foreign exchange payments linked to the existing Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network, enabling near real-time fund transfers 24/7. It also offers a programmable payment feature that allows for automatic payments when certain conditions are met.The service will be available through KB Kookmin Banks domestic branches and its Singapore branch.Remittance is possible to 10 countries, including South Korea, the United States, Singapore, Saudi Arabia, India, Thailand, Qatar, the United Arab Emirates (UAE), Bahrain, and South Africa. Initially, remittances in U.S. dollars (USD) will be supported.A representative from KB Kookmin Bank stated, It is significant that we have connected global digital payment infrastructure with domestic corporate financial services. We will continue to expand financial services for corporate clients in line with changes in the cross-border payment environment.* This article has been translated by AI. July 26, 2026 10:20
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Section 301 cases offer room for negotiation as Korea: KITA SEOUL, July 26 (AJP) -About half of the U.S. trade investigations launched under Section 301 over the past decade ultimately ended with tariffs being suspended or withdrawn through negotiations rather than fully enforced, offering South Korea a potential playbook as it seeks to avoid additional duties from Washington's ongoing excess-capacity probe. The finding comes from an analysis by the Korea International Trade Association (KITA), which argues Seoul should capitalize on that track record after the United States imposed a 12.5 percent Section 301 tariff on Korean goods over forced-labor concerns this week. According to KITA's Institute for International Trade, the Office of the U.S. Trade Representative (USTR) has launched 14 Section 301 investigations since President Donald Trump's first administration began in 2017. Four cases, including the investigation into industrial overcapacity affecting South Korea, remain under review, while 10 have been completed. Of those completed cases, only five resulted in tariffs being implemented, while the other five ended with duties suspended or abandoned following bilateral negotiations or broader international agreements. Section 301 of the U.S. Trade Act of 1974 authorizes Washington to impose retaliatory trade measures against countries deemed to engage in unfair or discriminatory trade practices. One of the clearest precedents cited by KITA is the U.S. investigation into China's shipbuilding, maritime and logistics sectors. Although Washington decided to impose port fees on Chinese-built vessels, implementation was postponed until November 2026 after the United States and China agreed to a one-year trade truce. Vietnam likewise avoided tariffs following Section 301 investigations into its currency policy and illegal timber imports, with both disputes settled through negotiated commitments and monitoring mechanisms rather than punitive duties. Similar outcomes were reached in disputes over digital services taxes imposed by France, India, Italy and other countries, as well as the long-running Airbus subsidy case involving the European Union and the United Kingdom. The report argues those cases demonstrate that Section 301 investigations have often functioned as negotiating leverage rather than automatic tariff actions, particularly for countries with strategic economic relationships with the United States. The latest forced-labor case, however, followed a different path. After opening simultaneous Section 301 investigations into forced labor and industrial overcapacity in March, the USTR finalized tariffs of 10 to 12.5 percent on 60 economies this week, replacing the temporary global tariff imposed under Section 122, which expired on July 24. South Korea, Japan and Switzerland were assigned an effective tariff ceiling of 12.5 percent. KITA said the forced-labor investigation moved unusually quickly, reaching a final decision in just four months compared with the roughly one year typically required for Section 301 cases. The institute attributed the speed to Washington's need to replace the expiring Section 122 tariff regime after legal challenges to the International Emergency Economic Powers Act (IEEPA) tariffs. The trade group nevertheless believes the still-pending excess-capacity investigation may leave more room for negotiation because it does not face the same policy urgency. South Korea is among 16 economies under investigation for alleged structural overcapacity. KITA warned that additional tariffs could still be imposed, potentially pushing Korea's overall tariff burden above the 15 percent ceiling agreed during last year's bilateral tariff negotiations unless Seoul secures exemptions or preferential treatment. The report recommends that Seoul use its previous trade agreement with Washington, pledged U.S. investment projects and the Korea-U.S. shipbuilding partnership under the MASGA initiative as bargaining chips in any forthcoming negotiations. It also urges the government to continue outreach even if new tariffs are announced, arguing that past Section 301 cases show implementation can still be delayed or modified through sustained engagement. "The forced-labor tariffs have now been finalized, and the results of the excess-capacity investigation are expected to follow soon," KITA senior researcher Jeon Yoon-sik said in the report. "Even during the first Trump administration, many Section 301 investigations ended with tariff suspensions or monitoring arrangements rather than immediate enforcement. Active negotiations could still secure a postponement or relief even after the investigation concludes." KITA will hold a briefing for businesses on July 29 at COEX in Seoul to explain the new U.S. Section 301 measures, developments surrounding Section 122 refund litigation and practical customs responses to Section 232 tariffs. The seminar will also cover IEEPA tariff refunds and the outlook for the ongoing excess-capacity investigation, reflecting growing concern among Korean exporters over the next phase of U.S. trade actions. July 26, 2026 07:20 -
Korea's Chimaek diplomacy gets a Silicon Valley AI makeover SEOUL, July 26 (AJP) - South Korea's signature chimaek culture — fried chicken and beer — found a Silicon Valley twist on Friday as President Lee Jae Myung clinked Budweiser bottles over burgers and fish and chips with Nvidia CEO Jensen Huang, Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and other AI leaders on San Francisco's waterfront. The informal dinner at a marina restaurant, following a day of high-level meetings and an AI summit, was designed to mirror the relaxed "chimaek diplomacy" Huang enjoyed during his visit to Seoul last year, when the Nvidia chief famously bonded with Korean business leaders over fried chicken and barbecue. This time, California seafood and beer replaced Korean fare, but the objective remained the same: forging personal ties behind one of the world's fastest-growing AI partnerships. Earlier in the day, Lee held separate meetings with OpenAI CEO Sam Altman, Nvidia CEO Jensen Huang, Broadcom CEO Hock Tan and Anthropic CEO Dario Amodei, urging each company to deepen participation in South Korea's AI ambitions. Lee introduced his administration's three mega AI projects and said South Korea was transforming itself into an AI-native economy spanning industry and society. Huang praised Seoul's vision, saying South Korea's ambition to become an "AI-native nation" was inspiring and that the country possessed the talent and industrial foundation to build sovereign AI if it secured sufficient access to graphics processing units. He also highlighted Nvidia's expanding cooperation with Samsung Electronics, SK hynix, Naver, Hyundai Motor and a planned joint AI research institute with KAIST. Altman described South Korea as one of OpenAI's most important partners and praised Lee's AI leadership. He said equity-based wealth-sharing models could prove more effective than simple cash transfers in the AI era and called Korea's investments in physical AI, energy infrastructure and its three mega projects globally exemplary. OpenAI also expressed interest in using South Korea as a test bed for its next-generation AI devices scheduled for release early next year. Meeting Hock Tan, Lee emphasized that governments and companies must jointly build AI ecosystems rather than compete independently. Tan praised South Korea's AI strategy and highlighted Broadcom's partnerships with Samsung Electronics, SK hynix and Korean AI startup FuriosaAI, predicting AI infrastructure demand would continue expanding through at least 2029. Amodei said Anthropic would expand cooperation with South Korea in data centers, AI security and cybersecurity after signing a memorandum of understanding with Seoul's science ministry. The meetings culminated in the San Francisco AI Summit, where Lee unveiled the San Francisco AI Declaration, pledging to make South Korea an "irreplaceable" pillar of the global AI supply chain by leveraging its leadership in memory semiconductors, advanced manufacturing and AI infrastructure. The summit also produced a series of commercial commitments between Korean conglomerates and global technology companies. According to the presidential office, SK Group agreed to pursue long-term AI infrastructure cooperation with global technology firms, Samsung Electronics expanded strategic cooperation with Broadcom, while Naver announced plans to develop global AI factories with Nvidia and Brookfield. Together with planned investments in AI data centers and computing infrastructure, the announced projects represent commitments valued at roughly $950 billion. Ending the day around a waterfront dinner table rather than a conference stage, Lee sought to reinforce a broader message that South Korea intends to pair its manufacturing strengths with America's AI software leadership — not only through investment pledges and semiconductor deals, but also through the personal relationships increasingly shaping the global AI race. After concluding his AI-focused visit to San Francisco, Lee headed to South America, where he pledged to deepen cooperation on critical minerals and revive trade talks with the Mercosur bloc. July 26, 2026 07:01 -
President Yoon Calls for Stronger Korea-South America Ties in Key Minerals and Manufacturing President Yoon Suk Yeol stated on July 25 that the relationship between South Korea and South America is entering a new phase, emphasizing the need to resume trade agreement negotiations with Mercosur and strengthen cooperation in key minerals for the AI era.During his visit to the United States and three South American countries (Brazil, Chile, and Argentina), Yoon made these remarks in a written interview with Spains EFE news agency, aimed at informing South American citizens about the purpose of his visit. He noted, The cooperation between the two sides should not merely be an exchange of natural resources for manufactured goods, but rather a relationship that creates value together through innovation, investment, technology, and talent.Yoon assessed that Mercosur member countries are global leaders in agriculture, food production, energy, and key minerals, while South Korea excels in advanced manufacturing, digital technology, shipbuilding, batteries, and innovation. He highlighted that South America possesses essential resources for future industries, and South Korea has the advanced technology, industrial know-how, and investment capabilities to match.He explained, By combining these strengths, we can build resilient value chains that benefit both regions, fostering resilient supply chains, nurturing new industries, and creating quality jobs that benefit both areas.Yoon also pointed out that as concerns grow over the spread of protectionism, geopolitical tensions, supply chain disruptions, and energy security, countries need reliable partners and trade based on clear norms and mutual trust.In this context, he identified modernizing the Korea-Chile Free Trade Agreement, South Koreas first free trade agreement signed and enacted in 2004, as a key objective of his visit to enhance economic cooperation with South America.Yoon stated, Now, more than 20 years after the agreement was signed, we have the opportunity to modernize it to reflect new areas such as digital trade, environmental cooperation, labor standards, gender equality, and innovation.He concluded, Our goal is clear: to build deep relationships not only in economic success but also in social exchanges and cooperation between future generations between South Korea and South America.* This article has been translated by AI. July 26, 2026 06:52
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President Lee Welcomes EU Exemption on Russian LNG Exports to South Korea President Lee Jae-myung expressed optimism on July 25 regarding the European Unions decision to exempt South Korea from sanctions related to the import of liquefied natural gas (LNG) from Russias Sakhalin-2 project. He stated, In a situation where energy supply uncertainty is increasing, I expect this will greatly help the daily lives of our citizens and our economy.While on a tour of the United States and South America, President Lee shared the news on X (formerly Twitter), saying, I was pleased to hear that our companies have been recognized as exceptions to the EUs sanctions on Russian LNG.He added, During my meeting with EU leaders in June, I explained the need for exceptional allowances for our energy security and urged their active interest in this matter.President Lee promised to continue to do his utmost to protect the lives of citizens and national interests through thorough responses.The EU adopted its 21st package of sanctions against Russia on July 23, which includes an exemption allowing South Korea to import LNG produced from the Sakhalin-2 project until March 2028.The South Korean government explained that this development is a result of significant progress made during the Korea-EU summit held in Brussels on June 10, where the issue of importing Russian LNG was a key economic and trade concern.The government has been requesting the EU to apply the exemption to ensure that the Korea Gas Corporation can import 1.5 million tons of LNG annually from the Sakhalin-2 project under a long-term contract from April 2008 to March 2028, preventing any disruptions in LNG supply. July 26, 2026 02:40