U.S. April PCE Inflation Rises 3.8%, Highest in Nearly Three Years
Rising oil prices due to the U.S.-Iran conflict have pushed the Personal Consumption Expenditures (PCE) price index in the United States to its highest level in nearly three years.
According to Yonhap News on May 28, the U.S. Department of Commerce reported that the PCE price index increased by 3.8% in April compared to the same month last year.
This marks the largest increase since May 2023 (4.0%) and represents a 0.4% rise from the previous month.
Excluding food and energy, the core PCE price index rose by 3.3% year-on-year, the highest since October 2023, and increased by 0.2% from the previous month.
The year-on-year increases for both the overall and core indices aligned with forecasts compiled by Dow Jones. However, the month-on-month increases fell short of expert expectations by 0.1 percentage points for both indices.
The PCE inflation rate has been rising since February, driven by the impact of high oil prices stemming from the Iran conflict.
The PCE price index reflects the prices of goods and services consumed by households, and the Federal Reserve uses it as a benchmark to assess its monetary policy goal of a 2% inflation rate.
Seoul to Resume Emergency Demolition of Seosomun Overpass
Seoul City announced on May 28 that it will begin emergency demolition of the remaining structures of the Seosomun overpass starting at midnight on May 29. This action follows the approval of the demolition plan by the Ministry of Employment and Labor.
The city estimates that the demolition and safety reinforcement work will take a total of 29 hours, including 15 hours for the demolition and 14 hours for finalization.
If the demolition proceeds as planned, all work, including testing operations, is expected to be completed by 5 a.m. on May 30, allowing for the reopening of Seosomun Road and the first train service on the Gyeongui Line. The actual demolition of the structure is anticipated to take about 7 hours.
From midnight to 3 p.m. on May 29, roads near the construction site will be fully closed.
This emergency demolition aims to swiftly remove the remaining structures to ensure public safety and to normalize traffic on Seosomun Road and the Gyeongui Central Line, which are currently halted.
The city plans to use a 'crushing method' for the complete demolition of the remaining structures to prioritize safety and expedite the process.
National Pension Service Increases Domestic Stock Target Allocation to 20.8%
The National Pension Service has decided to raise its target allocation for domestic stocks from 14.9% to 20.8% this year. This adjustment comes as the actual holdings of domestic stocks have significantly exceeded the target due to a recent surge in the KOSPI index.
According to Yonhap News, the National Pension Fund Management Committee held its fifth meeting on May 28, where it reviewed and approved adjustments to the target allocations for various asset classes and a mid-term asset allocation plan for 2027-2031.
The mid-term asset allocation plan outlines target allocations and management directions for stocks, bonds, and alternative investments over the next five years, serving as a guideline to enhance the fund's profitability and stability.
Initially, the target allocation for domestic stocks was set at 14.4% as per the fund management plan approved in May last year. Following the continued rise in the domestic stock market, the target was raised to 14.9% in January. The upper limit, including allowable ranges, was set at 19.9%.
However, as the KOSPI continued to surge, the actual allocation for domestic stocks reached 24.5% by the end of February. Consequently, the committee decided to increase the target allocation to 20.8% after considering market conditions, fund profitability, stability, and the impact on financial markets.
The committee explained that this decision aims to enhance long-term profitability and stability while mitigating market shocks from rebalancing due to potential structural changes in the domestic stock market.
The adjusted target allocation will take effect starting next month, following the end of the rebalancing suspension. Other asset class target allocations will also be adjusted accordingly.
NVIDIA CEO Jensen Huang to Visit South Korea Next Week for Semiconductor Talks
NVIDIA founder and CEO Jensen Huang is expected to visit South Korea next week. This will be his first visit since attending the APEC CEO Summit in Gyeongju last October.
According to industry sources on May 28, Huang will travel to South Korea after wrapping up his schedule at NVIDIA's annual AI conference, GTC Taipei 2026, and the IT exhibition Computex 2026, both taking place in Taipei next week.
GTC Taipei is scheduled for June 1-4, where Huang will deliver a keynote speech on NVIDIA's next-generation AI semiconductors and AI infrastructure strategy.
Industry insiders anticipate that Huang's visit will facilitate discussions with domestic semiconductor companies, including Samsung Electronics and SK Hynix, regarding high-bandwidth memory (HBM), next-generation AI accelerators, and foundry collaborations.
Additionally, discussions on AI collaboration across various sectors, including cloud computing and physical AI, with major IT companies such as LG and Naver are also expected to take place during his visit.
Previously, Huang visited South Korea in late October for the APEC summit, where he held a meeting with Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun, referred to as a 'gangbu meeting.'
Democratic and Progressive Parties Unite Behind Kim Sang-wook for Ulsan Mayor
On May 28, one day before early voting for the Ulsan mayoral election on June 3, the Democratic Party and the Progressive Party announced their unification behind Kim Sang-wook, the Democratic candidate for mayor.
Kim Sang-wook and Kim Jong-hoon, the Progressive Party candidate, held a joint press conference in front of the Ulsan Election Commission around 5:50 p.m. to announce the results of a public opinion poll conducted to determine the unified candidate.
During the day, both candidates used polling firms of their choice to conduct surveys utilizing anonymous phone numbers, resulting in Kim Sang-wook being selected as the unified candidate for both parties.
Kim Jong-hoon, who lost in the primary, accepted the results and submitted his resignation as a candidate to the Ulsan Election Commission just before the announcement.
Kim Sang-wook stated, "I will carry the hopes and wishes of my comrades in the Progressive Party in my heart and strive to create a citizen-led Ulsan and achieve true democratization." He also expressed respect and gratitude to Kim Jong-hoon for making a difficult and courageous decision.
The initial public opinion poll for unification was conducted from May 23 to 24. However, on May 24, Kim Sang-wook's camp raised concerns about the omission of a 'reverse selection prevention clause,' leading to a suspension of the primary. Subsequently, Kim Sang-wook's camp proposed a re-election with safeguards against organized interference from specific factions, which Kim Jong-hoon accepted on May 27, allowing the primary to proceed.
* This article has been translated by AI.
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