Korean

South Korea’s dismal World Cup first-round exit has prompted fury at home, and calls for a complete overhaul at the top have not been silenced by coach Hong Myung-bo’s resignation.

South Korea, World Cup semifinalists as cohosts in 2002, limped out of the tournament after failing to squeeze into the knockout rounds as one of the top eight third-place finishers.

They had the last 32 within their reach only to suffer a shock 1-0 loss to lower-ranked South Africa.

Their early exit prompted coach Hong to quit on Sunday and cast doubt over the international future of captain Son Heung-min.

It also earned the team a rebuke from the country’s president, Lee Jae Myung, who pointed the finger at “incompetent people” and apologised to the nation.

The president’s comments reflect public anger that has reached a boiling point after years of simmering discontent with South Korean football chiefs.

Former captain Park Ji-sung said, “We may have expected this outcome years ago.

“We have to look back and ask ourselves why things have come to this,” the former Manchester United player said after the team’s elimination was confirmed.

“Even after spending a decade learning how to prepare for the World Cup and develop Korean football, we have forgotten those lessons once again.”

South Korea was expected to emerge from Group A that included cohosts Mexico, South Africa and Czechia.

They started with a 2-1 win over the Czechs but lost 1-0 to Mexico before bowing out against South Africa.

The team were expected to arrive home on Tuesday morning, but local media reported that the Korea Football Association (KFA) were not planning to organise an event to welcome them back.

In 2014, angry fans pelted the team with Korean candies – seen as a deeply offensive insult – when they returned from the World Cup in Brazil, where they went out in the group stage during Hong’s first spell as coach.

‘Message to change’

Hong has been a lightning rod for criticism since he returned to the job in July 2024, five months after his predecessor, German World Cup-winner Jurgen Klinsmann, was axed.

The KFA came under fire for the process that led to Hong’s reappointment, with questions asked over its transparency and fairness.

Hong, who was regularly booed by fans, did himself no favours at the World Cup by dropping star player Son for the South Africa game, in which South Korea needed only a point to progress.

Hong admitted afterwards that he was struggling to understand what had gone wrong, as the nation nervously waited for results in other games to decide their fate.

Lee Chun-soo, a member of the 2002 World Cup team, said he “felt pathetic and frustrated rooting for Uzbekistan” against the Democratic Republic of the Congo in the hope that the result would send South Korea through.

“This is a message to change,” Lee said on his YouTube channel. “Everyone should be ready to step down.”

South Korean fans reserved a sizeable chunk of their anger for KFA President Chung Mong-gyu.

Chung said before the World Cup that he would quit after the tournament, blaming his “lack of virtue” following fierce criticism of his 13-year tenure.

The 65-year-old, who is in his fourth term as KFA president, came under fire for trying to pardon former players who were banned for life for match-fixing.

Chung and Hong might not be the only ones to bow out, with captain Son yet to comment on his future.

The skipper, who turns 34 next month, had previously hinted at retiring from international football.

Former captain Park said South Korea needed to learn from the past.

“It’s unfortunate that this kind of cycle keeps repeating,” he said.

“We must dream of and shape a better future, and move forward step by step so that we don’t repeat these mistakes.”

June 26 (Asia Today) — South Korean defense experts, mine-clearance researchers and technology companies called for broader government, military and civilian cooperation to remove land mines and unexploded ordnance near the Demilitarized Zone, saying the weapons continue to threaten residents more than seven decades after the Korean War.

The Defense and Security Forum held its fourth roundtable Thursday at the Korea Mine Clearance Research Institute’s DMZ Peace Center in Haemaru Village in Paju, a restricted border area north of the Civilian Control Line.

The event, titled “Korean War DMZ Field Forum: Peace Grows When the Land Heals,” coincided with the 76th anniversary of the outbreak of the 1950-53 Korean War and South Korea’s month of remembrance for veterans.

Security specialists, field researchers, border residents and representatives of defense and information technology companies discussed mine removal, restoration of contaminated land and cooperation among government agencies, the military and private organizations.

The forum said areas contaminated by land mines, unexploded ordnance and other explosives in and near the DMZ and Civilian Control Zone are estimated to cover about 128 square kilometers, or 49 square miles.

It also cited estimates that about 2 million land mines remain buried across the Korean Peninsula’s heavily fortified border region.

The mines are not merely remnants of a past conflict, participants said. They continue to endanger people living in border communities and impede plans to preserve the DMZ as an internationally recognized area of peace and environmental conservation.

Residents in front-line communities face risks while farming, traveling and using land near suspected minefields.

Participants said previous mine-clearance accidents have also made local governments reluctant to pursue development, public infrastructure and community revitalization projects in some border regions, including areas around Cheorwon in Gangwon Province.

The discussion came after South Korea’s mine-action law took effect in February 2025.

The law establishes procedures for safely detecting and removing mines, unexploded ordnance, abandoned munitions and booby traps that are no longer considered militarily necessary.

It also allows qualified private corporations and organizations to conduct detection and removal work under government approval and safety requirements. The military previously handled most such operations.

Participants said cooperation with civilian specialists has become increasingly important as South Korea’s military faces declining troop numbers and difficulties retaining experienced mine-clearance personnel.

Baek Gun-ki, chairman of the Defense and Security Forum, said the country must remember the lessons of war while working toward a safer future.

“We must reflect on the tragic lessons of war and open the way toward a secure future for South Korea,” Baek said.

Seo Nam-yeol, president of the forum, moderated the discussion.

Kim Ki-ho, director of the Korea Mine Clearance Research Institute, presented an assessment of unconfirmed minefields and proposed directions for future clearance operations.

Forum director Kang Tae-jun outlined the South Korean Defense Ministry’s mine-action road map and discussed steps needed to expand cooperation between military and civilian organizations.

Representatives of South Korean defense and technology companies developing artificial intelligence-based detection systems and other advanced mine-clearance equipment also attended.

They discussed the technical limitations of equipment now used by the military and civilian organizations and agreed to pursue cooperation on developing and testing more advanced systems under field conditions.

Participants said mine action is evolving from a labor-intensive military task into a broader security and humanitarian undertaking that combines advanced technology, government policy and specialized civilian expertise.

Following the roundtable, participants visited a nearby area classified as an unconfirmed minefield.

The forum said the visit demonstrated that land mines are not solely a military issue but also affect public safety, land use, economic development and the daily lives of people in border communities.

“Land mines are like bullets lodged in the waist of the Korean Peninsula,” the forum said. “Only after those bullets are removed can vitality return to the peninsula and the lives of border residents fully recover.”

The group called on the central government, military, local governments and private mine-clearance organizations to develop a coordinated national response.

The forum said it plans to launch a nationwide campaign supporting mine clearance across the Korean Peninsula.

It also plans to strengthen South Korea’s mine-action capabilities and expand cooperation with international organizations and overseas specialists, including the United Nations Mine Action Service.

Organizers said South Korea could use its growing defense technology expertise to contribute to international humanitarian mine-clearance operations as well as domestic efforts.

A preliminary discussion featuring Kim and Seo was released online before the event. Video of the roundtable and field visit is expected to be published through the YouTube channel Cheongunmanma.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260626010009324

June 26 (Asia Today) — More than 4 in 10 South Korean employees who participated in a government cybersecurity exercise opened simulated phishing emails, but companies that had conducted repeated training recorded significantly better results, officials said Friday.

The Ministry of Science and ICT and the Korea Internet & Security Agency announced the findings at a review meeting at the Post Tower in central Seoul.

A total of 630 companies and 255,460 employees participated in the government’s cybersecurity crisis response exercise for the first half of 2026.

The government conducts the exercise twice a year to improve security awareness and strengthen companies’ ability to respond to cyberattacks.

The latest exercise was held from May 11 through May 22 and covered four areas: phishing emails, distributed denial-of-service attacks, penetration testing and vulnerability detection and response.

The phishing exercise targeted employees at 569 companies.

Participants received simulated malicious emails designed to resemble messages from familiar institutions or routine workplace correspondence.

The government monitored whether participants opened the emails and clicked attached files that would have triggered malware infections in a real attack.

The results showed that 41.6% of participants opened the simulated phishing emails. About 12.7% clicked an attachment and reached the simulated malware infection stage.

Large companies, which had the highest rate of conducting their own cybersecurity exercises, recorded the lowest figures.

Employees at large companies had an email open rate of 35.4% and a simulated infection rate of 9.8%, highlighting the value of repeated training, officials said.

The distributed denial-of-service exercise tested web servers and development servers at 147 companies by sending simulated attack traffic.

Officials measured how quickly each company detected and responded to the traffic.

Companies that had previously participated in the exercise took an average of 20 minutes to detect and respond to the attack.

First-time participants took an average of 64 minutes, more than three times as long.

The vulnerability assessment covered 241 companies.

Investigators found 28 types of security vulnerabilities at 32 companies. Twelve of those companies had six types of vulnerabilities that required immediate corrective action.

The ministry and the agency provided the affected companies with their assessment results and instructions for addressing the weaknesses.

Lim Jeong-gyu, director general for information security network policy at the ministry, said the emergence of advanced artificial intelligence was making cyber threats facing companies increasingly serious.

“Building technical defense systems is important, but having all employees directly experience and respond to a simulated crisis can prove invaluable at a critical moment,” Lim said.

He encouraged companies to participate regularly in cybersecurity exercises rather than treating them as one-time events.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260626010009374

June 26 (Asia Today) — South Korean banks are restricting mortgages and personal loans months earlier than usual as rapid household debt growth threatens to exhaust their annual lending quotas.

The country’s five largest commercial banks – KB Kookmin, Shinhan, Hana, Woori and NH NongHyup – recorded household loan growth through May that exceeded targets agreed upon with financial regulators, according to banking industry data released Friday.

Their combined household loan balance increased from 767.296 trillion won ($496.4 billion) at the end of April to 770.823 trillion won ($498.7 billion) at the end of May.

The one-month increase was 3.527 trillion won ($2.3 billion).

Mortgage growth slowed, but personal credit borrowing rose rapidly as a strengthening stock market encouraged more investors to borrow money to buy shares.

Outstanding personal credit loans at the five banks increased by 2.174 trillion won ($1.4 billion), from 104.341 trillion won ($67.5 billion) in April to 106.515 trillion won ($68.9 billion) in May.

Banks have responded by reducing loan limits, restricting online applications and suspending products that allow borrowers to receive larger mortgages.

Hana Bank will suspend enrollment Wednesday in mortgage insurance and guarantee programs that allow banks to lend without deducting an amount reserved to protect tenants’ small security deposits.

Without the programs, the maximum mortgage available for an apartment may fall by about 55 million won ($35,600) in Seoul and 48 million won ($31,100) in Gyeonggi Province.

KB Kookmin Bank suspended the programs Friday, while NH NongHyup Bank had already stopped offering them.

Industrial Bank of Korea also stopped accepting some individual loan applications submitted through outside loan consultants.

Banks have also reduced unsecured credit limits.

Hana Bank and Woori Bank lowered their personal credit loan limits to 100 million won ($64,700).

Shinhan Bank is reducing the limits on revolving credit lines by as much as 20% when customers renew them.

Online lenders KakaoBank, Kbank and Toss Bank have also reduced limits on personal loans and revolving credit accounts and restricted some new lending.

Banking officials said the restrictions began unusually early this year.

Banks ordinarily introduce stronger lending controls around October or November as they approach their annual household loan limits.

This year, however, regulators set substantially lower growth targets and banks are attempting to prevent a rush of applications late in the year.

One banking official said loan applications and inquiries increased after the government signaled that it would continue tightening household debt controls.

Some borrowers are seeking loans earlier because they fear financing will become more difficult later in the year, the official said.

Annual lending restrictions are not new in South Korea.

Banks sometimes receive permission to issue additional loans if their annual limits are exhausted earlier than expected. In other cases, borrowers must delay loans until the following year.

Lee Eun-hyung, a researcher at the Korea Research Institute for Construction Policy, said banks have repeatedly adjusted lending levels to comply with annual debt-management targets.

“Whether additional lending capacity is provided at the end of the year depends on the government’s policy direction and market conditions at that time,” Lee said.

Banking officials said additional lending allocations appear unlikely this year because the government remains focused on controlling household debt and stabilizing the real estate market.

Easing restrictions while housing prices remain elevated could further stimulate demand, they said.

The possibility that banks could exhaust their quotas early has prompted some prospective borrowers to accelerate home purchases or seek loan approval before further restrictions are introduced.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260626010009438

A Seoul court on Friday sentenced former first lady Kim Keon Hee to seven years in prison for taking expensive gifts in return for job appointments and business favors.

The Seoul Central District Court handed down the sentence to Kim, the wife of ousted former President Yoon Suk Yeol, after she was indicted on charges of accepting bribes for mediation, including over 100 million won (US$64,750) worth of jewelry in exchange for a government job for a son-in-law of a construction company chairman.

In total, she was charged with taking approximately 300 million won worth of gifts, and the court found her guilty on all counts.

“The defendant disregarded the social responsibilities associated with the position of first lady and used it merely as a means to pursue her private interests,” presiding judge Cho Sun-pyo said during the hearing, which was televised live.

Kim was indicted in December on charges of receiving a Van Cleef & Arpels necklace and other jewelry from the construction company chairman between March and May 2022; a golden turtle ornament in April 2022 from Lee Bae-yong, former head of the National Education Commission, in exchange for her appointment; a Dior bag worth 5.4 million won from a pastor the same year; and a Vacheron Constantin watch from another businessperson in September 2022.

In February 2023, she was accused of receiving a painting by renowned artist Lee Ufan from a former prosecutor in return for her help in securing him a nomination for an election.

The exchanges mostly took place during the period her husband was in office from May 2022 until his ouster in April 2025.

The judge said Kim sought to evade responsibility for her crimes by returning some of the gifts once an investigation got under way or arguing she had purchased them herself.

“This shows that she was fully aware of the illegality of her actions but tried to conceal it,” he said.

Special counsel Min Joong-ki’s team, which had demanded a 7 1/2-year prison term, welcomed the ruling. Kim’s lawyers said they would appeal.

The court also sentenced the construction company chairman to a one-year prison term, suspended for two years, the businessperson who gifted the watch to a 10-month prison term, suspended for two years, and the pastor to a fine of 8 million won.

The former first lady has already been sentenced by an appeals court to four years in prison in a separate corruption case.

She is also set to stand trial over her alleged involvement in a case where members of the Unification Church were reportedly forced to join the now main opposition People Power Party ahead of the 2022 presidential election in an attempt to influence the outcome of the party primary to pick its presidential candidate, which her husband Yoon won.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

June 25 (Asia Today) — A South Korean civic leader proposed creating a satellite communications network modeled on SpaceX’s Starlink to provide outside information to people in North Korea.

Jang Man-soon, chairman of the Committee for Ten Million Separated Families and a co-chair of Citizens’ Solidarity for ONE KOREA, called the proposed system “Korea Link.”

“If we place a system similar to Starlink over North Korea, we could inform North Koreans who have access to approximately 8.5 million mobile phones about the realities and conditions in South Korea,” Jang said during an interview Thursday at the National Assembly in Seoul.

The figure was Jang’s estimate and could not be independently confirmed.

Jang said the network could communicate the importance of freedom to North Korean residents and correct historical accounts and information distorted by the North Korean government.

He said it could also help North Koreans develop pride in the goal of Korean unification.

Jang argued that a new means of communication is necessary because traditional methods of reaching North Koreans, including radio broadcasts and border loudspeakers, have become increasingly restricted.

He said North Korean leader Kim Jong Un’s “two hostile states” policy is partly intended to isolate residents from outside information.

“North Korea is at a disadvantage in politics, economics, culture and military power, so the government is trying to block outside information from reaching its people,” Jang said.

Jang also discussed the declining prospects for families separated by the division of the Korean Peninsula and the 1950-53 Korean War.

“The wish of separated families is no longer simply to reunite with relatives,” he said. “It is to set foot in their hometowns.”

Many first-generation separated family members are now in their 90s, and few still have living parents in North Korea, he said.

“Their greatest wish is to visit their hometowns before they die,” Jang said.

He warned that public awareness of separated families is fading with each generation.

Jang called for expanded unification education for young people, opportunities to hear testimony from first-generation separated family members and educational visits to areas near the inter-Korean border.

“The reality is that only about half of the public now believes unification is necessary,” he said. “We are preparing various activities, including youth education, testimony from first-generation separated families and visits to border regions.”

Jang urged the South Korean government to participate in practical projects intended to support North Korean residents and preserve awareness of freedom and unification.

“If we view the people of North Korea as members of the same nation, I hope the government will participate in the practical plans we are pursuing,” he said.

“We must work together to establish a foundation that will allow future generations to understand the meaning of genuine freedom in the Republic of Korea.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260625010009002

June 25 (Asia Today) — A South Korean court has again rejected a request to preserve ballots, ballot boxes and other election materials kept at a counting center in Seoul’s Songpa District.

The First Civil Division of the Seoul Eastern District Court, led by Presiding Judge Joo Jin-am, dismissed an appeal Tuesday filed by the Freedom and Innovation party against the chair of the Songpa District Election Commission.

The materials were stored at a counting center inside the Olympic Park Handball Gymnasium.

The court rejected the party’s initial evidence-preservation request on June 12, prompting the party to appeal.

Freedom and Innovation claimed that ballot-paper shortages, the transportation of ballot boxes and other alleged irregularities during the June 3 nationwide local elections could have affected the voting and counting results.

The party sought court preservation of ballots, ballot boxes and related materials for possible use in future litigation.

The court, however, found that the application failed to satisfy legal requirements including relevance and necessity.

Judges said there was no sufficient connection between the ballot shortages and the requested preservation of ballots and ballot boxes from polling places where voting had been completed normally.

The court also determined that obtaining the materials would not help establish the disputed issues in an underlying lawsuit.

It said a separate preservation order was unnecessary because election law already requires the materials to be retained.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260625010009154

June 23 (Asia Today) — The estimated value of unpaid household services consumed by South Korean children totaled 116.6 trillion won ($75.3 billion) in 2024, with parents and grandparents providing much of the work, government data showed Tuesday.

The Ministry of Data and Statistics published the findings in South Korea’s 2024 National Time Transfer Accounts, which measure how unpaid household work is produced, consumed and transferred among age groups.

The account covers services that are generally excluded from gross domestic product, including cooking, cleaning, household management, caregiving and volunteer work.

The figure does not represent money that families paid for child care. It estimates the market value of unpaid services by using the time spent on household work, population figures and the wages that would be required to hire someone to perform similar tasks.

Children ages 14 and younger recorded a household-work lifecycle deficit of 116.6 trillion won because they consumed unpaid services but did not produce them.

A lifecycle deficit occurs when the value of household services consumed by an age group exceeds the value it produces.

About 107.3 trillion won ($69.3 billion), or 92% of the children’s deficit, was covered through transfers within the same household. This category largely represents time and labor provided by parents and other family members living with the children.

An additional 9.4 trillion won ($6.1 billion) came through transfers between households, which can include care provided by relatives living separately.

Working-age people between 15 and 64 produced unpaid household services valued at 444.4 trillion won ($287 billion) and consumed services worth 336.1 trillion won ($217 billion).

That left the group with a surplus of 108.3 trillion won ($69.9 billion).

The working-age population transferred a net 104.6 trillion won ($67.5 billion) in unpaid services to other members of the same households, primarily children.

The data show that people in their 30s and 40s, who are often raising young or school-age children, were at the center of the transfer system.

On a per-person basis, the household-work surplus reached its highest level at age 39, at 10.35 million won ($6,700).

Older South Koreans also made a net contribution.

People ages 65 and older produced household services valued at 138 trillion won ($89.1 billion) while consuming 129.7 trillion won ($83.8 billion), leaving a surplus of 8.3 trillion won ($5.4 billion).

They transferred a net 5.7 trillion won ($3.7 billion) in services between households. The ministry said the pattern reflects contributions such as grandparents caring for grandchildren who live in separate households.

Per-person household production peaked at age 40, declined and then increased again after retirement, producing what the ministry described as an M-shaped pattern.

Unpaid housework and care for grandchildren contributed to the later increase.

The lifecycle deficit was highest at birth, reaching 37 million won ($23,900) per person.

The balance shifted into a surplus at age 28, reached its peak at age 39 and returned to a deficit at age 82.

Those ages do not indicate when income begins to exceed personal spending. They show when the estimated value of unpaid household services a person produces becomes greater or smaller than the value of services the person consumes.

Household-service consumption was highest at birth and lowest at age 19, forming an L-shaped pattern.

Compared with 2019, the total deficit for children declined by 7.5 trillion won ($4.8 billion). Surpluses among working-age and older people also decreased.

The results provide a broader measure of the economic contributions made inside families, including work performed by parents and grandparents that does not appear in conventional income or production statistics.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260623010008145

June 23 (Asia Today) — South Korean power equipment maker LS Electric is strengthening its ties with communities in Utah by honoring Korean War veterans and investing in local education as it expands in the fast-growing North American power market.

Demand for power equipment has surged as artificial intelligence companies build more data centers across North America. Against that backdrop, LS Electric Chairman and Chief Executive Officer Ja-Kyun Koo has emphasized what the company describes as a management strategy based on long-term trust with local communities.

LS Electric said Koo has pursued the strategy through LS Electric Utah, formerly MCM Engineering II, in Cedar City. The South Korean company acquired the operation in 2022 and has since directed an expansion of its production facilities.

Koo has highlighted a Korean War engagement involving soldiers from southern Utah as a historical link between the state and South Korea.

On May 26, 1951, 240 members of the Utah National Guard’s 213th Armored Field Artillery Battalion encountered a Chinese force of more than 4,000 troops near Gapyeong in Gyeonggi Province.

The engagement became known in Utah as the “Miracle at Kapyong.” Accounts maintained by the Utah National Guard say the soldiers fought off the advancing force without losing a member of the unit in the battle.

Families and descendants of the veterans remain part of the community around Cedar City, where LS Electric Utah is based.

Koo said the soldiers’ service in an unfamiliar country demonstrated the kind of courage and commitment that a Korean company operating in Utah should recognize.

LS Electric this year sponsored a Southern Utah University program supporting Korean War veterans. The company also paid the travel expenses of surviving veterans who visited South Korea in May for a ceremony marking the 75th anniversary of the Utah unit’s action near Gapyeong.

The company has also supported the development of science, technology, engineering and mathematics education facilities at Southern Utah University as part of its efforts to train workers for the region’s future industries.

LS Electric joined a separate initiative led by the Korea Chamber of Commerce and Industry to connect Korean companies operating in the United States with veterans who previously served with U.S. Forces Korea.

The company said the program could help Korean businesses recruit workers who already have experience with South Korea and its culture.

LS Electric’s community engagement has accompanied a sharp increase in orders for equipment used in North American data centers.

Korea Investment & Securities said LS Electric secured two North American data center equipment projects during the second quarter with a combined value of 489.3 billion won, or about $318 million.

The brokerage expects the company’s North American data center orders to increase by more than 50% from a year earlier and surpass 1.5 trillion won, or about $974 million, in 2026.

“Today, our firm footing in the U.S. market rests on the noble sacrifice of Utah veterans who fought for freedom and peace,” Koo said.

“Remembering and honoring the heroes who created the Miracle at Kapyong is a responsibility that companies should fulfill,” he said.

Koo said businesses built on strong relationships with their communities would be better positioned to achieve stable, long-term growth.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260623010008080

“Seven,” a hit solo track by BTS member Jungkook, has surpassed 3 billion streams on Spotify, making him the first Korean artist to hit the threshold with a single song, his agency BigHit Music said Tuesday.

“Seven” is also the only song released in 2023 globally to reach the milestone, according to the agency.

A passionate serenade about wanting to spend every day with a loved one, “Seven” blends a catchy melody with a warm acoustic guitar sound and rhythms from UK garage, a genre of electronic music that emerged in Britain in the early 1990s.

The song’s music video surpassed 600 million views on YouTube in April.

Since its release, “Seven” has enjoyed worldwide success, debuting at No. 1 on the U.S. Billboard Hot 100 and reaching No. 3 on the British Official Singles Chart Top 100.

K-pop supergroup BTS, to which Jungkook belongs, is currently on its largest-ever scale world tour, “Arirang.”

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

June 19 (Asia Today) — Former North Korean diplomats have alleged that a North Korean education specialist affiliated with UNESCO and being considered as a speaker at an international forum in South Korea may be connected to Pyongyang’s intelligence apparatus.

Jang Kwang-chol is under consideration to participate by video in a session titled “UNESCO and the Future of Education: Challenges and Prospects” at the 21st Jeju Forum for Peace and Prosperity, according to forum organizers.

The forum, jointly hosted by South Korea’s Foreign Ministry, the Jeju provincial government and other organizations, is scheduled to take place from Wednesday through June 26 at Haevichi Hotel & Resort Jeju and Jeju Stone Park.

The former diplomats’ allegations regarding Jang could not be independently verified. Neither UNESCO nor the North Korean government was quoted as responding to the claims.

Several former North Korean diplomats said Pyongyang selects Foreign Ministry officials for assignments at United Nations agencies to secure international assistance, collect information about foreign governments and South Korea and earn foreign currency.

They alleged that officials selected for such work sometimes receive fabricated or altered professional backgrounds tailored to the agency where they will serve.

Before deployment, the officials may formally transfer their affiliation to an intelligence organization such as North Korea’s Reconnaissance General Bureau, the former diplomats claimed. Such an arrangement, they said, allows the officials to operate with greater independence than ordinary North Korean diplomats.

UNESCO materials identify Jang as an education specialist who earned a doctorate in education from Kim Hyong Jik University of Education and previously worked for North Korea’s Education Ministry.

The former diplomats alleged that at least part of that professional background could serve as a cover for intelligence-gathering duties.

Ko Young-hwan, a former first secretary at the North Korean Embassy in the Republic of Congo, told Asia Today that North Korea has frequently dispatched what it calls international civil servants to U.N. organizations.

“When they were sent abroad in the past, their affiliations were transferred to organizations under the Workers’ Party, such as the United Front Department or the External Information Investigation Department, also known as Office 35,” Ko said.

“After those organizations were consolidated, I understand that their affiliations were transferred to the Reconnaissance General Bureau.”

Ko, who later headed South Korea’s National Institute for Unification Education, said he believed Jang could fall into that category.

North Korea created the Reconnaissance General Bureau in 2009 by combining intelligence and operational units that had previously been divided among the Workers’ Party and the military.

South Korean authorities have described the bureau as North Korea’s principal organization for overseas intelligence collection, cyber operations and clandestine activities.

Former North Korean diplomats also said officials assigned to international organizations operate with fewer restrictions than diplomats posted to embassies.

Ko recalled an official who worked at UNESCO headquarters in Paris while he was serving in the North Korean Foreign Ministry.

“He attended a weekly self-criticism session at the embassy only once a week and did not have to report unless something unusual occurred,” Ko said.

Ryu Hyun-woo, a former acting North Korean ambassador to Kuwait, said such officials can operate independently under special circumstances.

“They are diplomats who act alone in exceptional situations,” Ryu said. “I understand that they receive separate, specialized training before being dispatched.”

The Jeju Forum’s organizers said education innovation is one of this year’s major themes and that Jang is being considered because he is a UNESCO-affiliated official suited to the education session.

The organizers have not publicly suggested that his proposed participation is connected to intelligence activity.

Some observers, however, have interpreted the invitation as a possible attempt to reopen communication with North Korea amid strained inter-Korean relations.

The outreach comes after the Jeju provincial government provided North Korea with about 160 million won ($116,000) worth of agricultural and medical supplies, including hallabong citrus seedlings, chemicals used to combat pine wilt disease and kidney dialysis equipment.

The provincial government’s North Korea assistance program has also drawn scrutiny following reports that Jeju Gov. Oh Young-hun had contact with Ri Ho-nam, a former counselor at the North Korean Embassy in Beijing who has been identified by South Korean sources as an operative involved in inter-Korean affairs.

No evidence was presented in the article showing that Jang had engaged in espionage or other illegal activity in connection with the Jeju Forum.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260619010006871

June 17 (Asia Today) — Canada is expected to select a preferred bidder within 30 days for a major submarine procurement program, narrowing the competition to South Korea’s Hanwha Ocean and Germany’s Thyssenkrupp Marine Systems.

The Canadian Patrol Submarine Project calls for the acquisition of up to 12 conventionally powered submarines to replace the Royal Canadian Navy’s four aging Victoria-class vessels.

The acquisition, infrastructure and long-term maintenance program has been estimated by South Korean industry officials at at least 60 trillion won, or about $39.7 billion. Some estimates place its potential value over several decades as high as 120 trillion won, or about $79.4 billion.

Stephen Fuhr, Canada’s secretary of state for defence procurement, said Ottawa expected to choose a preferred bidder within 30 days, according to Politico.

The selection would grant one bidder the right to enter detailed negotiations with the Canadian government, although it would not constitute a final contract award.

Canada previously identified Hanwha Ocean and Germany’s Thyssenkrupp Marine Systems as the two qualified suppliers for the program.

The contest has entered its final stage as South Korea promotes a package combining submarine construction, government-backed financing and broader industrial cooperation.

Canadian procurement chief visits South Korea

Fuhr visited Hanwha Ocean’s shipyard in Geoje, about 205 miles southeast of Seoul, on Feb. 2 with Canadian government and business representatives.

He toured the shipyard’s assembly facilities and automated production equipment and boarded the ROKS Jang Yeong-sil, the first 3,000-ton submarine in South Korea’s Dosan Ahn Changho Batch-II class, while it was undergoing sea trials.

Fuhr was accompanied by Hanwha Ocean Chief Executive Kim Hee-cheul and senior South Korean officials.

He later visited the South Korean Navy’s Submarine Force Command in Jinhae to examine its training, logistics and maintenance systems.

Hanwha Ocean said the visit allowed the Canadian delegation to assess South Korea’s submarine manufacturing capacity and its ability to provide long-term maintenance and operational support.

Canada seeks submarines for three oceans

Canada wants its future fleet to operate across the Atlantic, Pacific and Arctic oceans while maintaining interoperability with the United States and other allies.

Its requirements include long range, extended endurance, under-ice capability and reliable maintenance support.

Hanwha Ocean is offering a version of South Korea’s Dosan Ahn Changho-class submarine, also known as the KSS-III.

The company has emphasized that the platform is already in production and can be delivered more quickly than a newly developed design. It has also proposed cooperation with Canadian universities, shipyards and defense companies.

Thyssenkrupp Marine Systems is offering the Type 212CD submarine, a new design being developed for Germany and Norway.

The German bidder has highlighted its long-standing relationships within NATO, European defense supply chains and proposed investment in Canadian industry.

Germany and Norway have also reportedly examined changes to their own production schedules to make earlier delivery slots available to Canada.

Industrial benefits could determine outcome

Canada has made domestic jobs, industrial investment and long-term economic benefits central elements of the procurement.

The government has said work associated with the submarines should strengthen Canada’s marine and defense industries throughout the fleet’s operational life.

South Korea has therefore sought to expand its proposal beyond the construction of submarines.

Canadian officials have discussed potential South Korean investment in Canada’s automotive and transportation industries, according to people familiar with the negotiations.

South Korean companies have responded by exploring a hydrogen-powered commercial vehicle and fueling network rather than committing immediately to a conventional automobile assembly plant.

Hyundai Translead, Hyundai Motor Group’s North American trailer manufacturing subsidiary, has signed a dealership agreement with Canadian commercial vehicle dealer Breadner Trailers for Hyundai’s XCIENT hydrogen fuel-cell trucks.

The trucks have accumulated more than 1 million miles, or 1.6 million kilometers, of commercial driving in North America, according to Hyundai.

Glenn Copeland, president of Hanwha Ocean’s Canadian subsidiary, previously said Hyundai Motor Group had presented an initial proposal to Canadian officials for a hydrogen freight transportation corridor.

The plan could support Canada’s transportation decarbonization policies while adding a civilian industrial component to South Korea’s submarine offer.

Seoul prepares financial support

The South Korean government and state financial institutions are also preparing export financing to support the bid.

The Korea Trade Insurance Corp. and the Export-Import Bank of Korea have expanded financing programs for major overseas projects in defense, nuclear power and other strategic industries.

South Korean officials have said as much as 100 trillion won, or about $66.1 billion, from a broader export financing initiative could be made available for defense and nuclear energy projects. The amount does not represent financing committed exclusively to the Canadian submarine program.

Hanwha Ocean has also sought to demonstrate the strength of its domestic supply chain.

At the World Defense Show in Riyadh in February, the shipbuilder signed cooperation agreements with 11 South Korean defense and submarine equipment companies, including LIG Nex1, Hanwha Aerospace, Kolon Spaceworks, KTE and Firstec.

Hanwha Ocean says more than 80% of the components used in its proposed submarine can be supplied domestically.

A South Korean defense industry official said the final decision would depend not only on submarine performance but also on financing, delivery schedules, maintenance support and benefits for Canadian industry.

“Canada’s submarine project is more than a weapons sale,” the official said. “The remaining competition will be decided by which bidder can offer the most credible combination of capability, delivery and long-term industrial cooperation.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260616010005537

June 15 (Asia Today) — South Korean researchers have developed a catalyst that could substantially reduce the cost of producing green hydrogen while delivering performance and durability comparable to catalysts made with expensive precious metals.

A research team led by Professor Don-Hyung Ha of Chung-Ang University developed multimetallic phosphide nanoparticles that do not require platinum, iridium or other costly precious metals, the university said Monday.

The research was conducted jointly with a team led by Professor Inho Nam of Chung-Ang University’s Department of Chemical Engineering and researchers led by Sung Jong Yoo of the Korea Institute of Science and Technology’s Center for Hydrogen and Fuel Cells.

The catalyst was used to build a high-performance anion-exchange membrane water electrolysis system, a technology considered a potential lower-cost option for producing clean hydrogen.

Water electrolysis uses electricity to split water into hydrogen and oxygen. When the electricity comes from renewable sources, the resulting fuel is commonly called green hydrogen because the production process does not directly emit carbon dioxide.

Many high-performance electrolyzers, however, rely on scarce and expensive catalysts containing platinum or iridium. Their cost and limited availability have been major obstacles to the large-scale commercialization of green hydrogen.

Anion-exchange membrane water electrolysis could reduce dependence on those metals because it can operate with less expensive materials. Existing non-precious-metal catalysts, however, often undergo changes to their surface structures during operation, resulting in lower efficiency and shorter operating lives.

The researchers sought to address the problem by designing nanoparticles made from cobalt, nickel, iron and phosphorus.

They used real-time spectroscopic analysis to examine changes in the catalyst’s oxidation state and surface structure while it was operating.

The team found that optimizing the amount of cobalt caused a stable, highly active structure to form on the catalyst’s surface during electrolysis. The researchers identified this surface reconstruction as a key factor in maintaining high catalytic activity and long-term durability.

In single-cell tests, a system using the catalyst at both the hydrogen-producing and oxygen-producing electrodes reached a current density of 5.73 amperes per square centimeter at 2 volts.

When the catalyst was used only at the oxygen-producing electrode, the system reached 11.43 amperes per square centimeter at the same voltage.

Higher current density generally indicates that an electrolyzer can produce more hydrogen from a given electrode area, although overall commercial performance also depends on factors including energy efficiency, system size, operating conditions and manufacturing cost.

The system also operated continuously for 500 hours at a commercially relevant current density of 1 ampere per square centimeter without a significant decline in performance, the researchers said.

The results indicate that non-precious-metal catalysts can deliver performance approaching that of systems using platinum-group metals.

The study combined control of the catalyst’s chemical composition, real-time analysis of its operating surface and performance testing in a complete electrolysis cell. The researchers said the integrated approach strengthens the catalyst’s potential for practical application.

“This study is academically significant because we precisely controlled the composition of a non-precious multimetallic phosphide catalyst and used real-time analysis to clarify how its surface changes during operation,” Ha said.

“It could serve as a milestone in developing low-cost water electrolysis electrodes that replace expensive precious-metal catalysts while providing both high performance and durability,” he said.

The research was supported by South Korea’s Ministry of Science and ICT through the H2GATHER program, the H2 NEXT ROUND program and a Korea Institute of Science and Technology clean hydrogen technology development program.

The study, titled “Cobalt-Engineered Multimetallic Phosphides with Switchable HER-OER Activity for Durable Anion Exchange Membrane Water Electrolysis,” was published online May 26 in Advanced Functional Materials.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260612001005481

June 11 (Asia Today) — A South Korean-operated liquefied natural gas carrier that had been stranded near the Strait of Hormuz because of the U.S.-Iran war has passed through the waterway, South Korea’s Foreign Ministry said Wednesday.

The vessel was headed to a third country, not South Korea, and eight South Korean crew members were aboard, officials said.

“One South Korean vessel has passed through the Strait of Hormuz and is sailing,” the Foreign Ministry said. “Consultations related to this passage were led by the foreign-chartered company.”

The ministry said it understood the ship was heading to its final destination in a third country.

A Foreign Ministry official said Seoul has repeatedly emphasized to Iran the need for the prompt and safe navigation of all vessels in the Strait of Hormuz, including South Korean ships. The official said the government is also continuing to communicate with related countries.

According to the Ministry of Oceans and Fisheries, one LNG carrier operated by a South Korean shipping company resumed operations and left the inner side of the strait as of 7 a.m. Wednesday.

As a result, the number of South Korean-operated ships waiting inside the strait fell from 25 to 24. The number of South Korean crew members in the area declined from 147 to 139.

Foreign Ministry officials said the South Korean vessels are anchored in safe areas near Qatar, the United Arab Emirates and other nearby waters, following guidance from the Oceans Ministry.

“The government’s top priority is the free and safe passage of South Korean vessels and crew members in the strait,” a Foreign Ministry official said. “We are carrying out diplomatic efforts through multiple channels regarding the remaining 24 vessels.”

The charterer of the ship that passed through the strait was identified as QatarEnergy, Qatar’s state-owned energy company, and the final destination was believed to be Pakistan.

The case differs from the earlier passage of the Universal Winner, a very large crude carrier operated by HMM, which left the strait after direct negotiations between the South Korean government and Iran. In the latest case, the charterer led the decision-making and consultations.

Diplomatic observers said the involvement of QatarEnergy as the charterer and Pakistan as the destination may have helped the vessel secure passage. Pakistan has maintained close communication with Iran over Middle East tensions, and consultations involving the Pakistani Navy and the charterer may have reduced safety concerns.

The passage was reportedly completed shortly before Iran announced a full closure of the Strait of Hormuz. Iran said Wednesday local time it would completely close the strait in response to U.S. airstrikes.

Diplomatic observers said South Korea is likely to prioritize safety for the remaining 24 vessels for the time being, rather than pushing for immediate passage, as risks in the strait have increased.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260612010004185

June 11 (Asia Today) — South Korea needs to reform its electricity market to respond to surging power demand from artificial intelligence and the expansion of renewable energy, the Korea Chamber of Commerce and Industry said Wednesday.

The chamber said the current power market structure is not enough to support private investment or the growth of new energy businesses, including energy storage systems and virtual power plants.

The business group raised the issue during a seminar in Seoul co-hosted with the Korean Resource Economics Association. Participants discussed ways to reform the electricity market and promote new energy businesses as AI adoption and renewable power generation expand.

“As the power industry shifts from a centralized structure to a distributed and digital-based system, various new businesses are emerging,” said Cho Hong-jong, president of the Korean Resource Economics Association and a professor at Dankook University. “To make the energy transition a reality, it is necessary to build a competitive system based on market principles.”

Joo Sung-kwan, a professor at Korea University, said South Korea’s current electricity market has structural limits because wholesale prices are set a day before electricity is supplied, based mainly on fuel costs.

“This creates significant rigidity because real-time supply and demand conditions cannot be flexibly reflected in prices,” Joo said.

Joo said the market needs pricing signals that respond to supply and demand. Prices should rise when electricity supply is tight to encourage lower consumption and fall when supply is sufficient to promote use, he said.

For new energy businesses to secure profitability and increase investment, Joo said South Korea should move from the current day-ahead market to a real-time market. He also called for a price-bidding system in which power generators and electricity retailers submit bid prices.

Panelists also said South Korea needs a market environment and regulatory system that can attract private investment.

Lee Seo-jin, a professor at Hongik University, said tailored compensation systems for new energy businesses and a predictable policy environment are more important than simple market opening.

Huh Yoon-ji, a professor at Dankook University, said wholesale price normalization and retail electricity rate reform must proceed together to secure economic viability. She also called for independent governance to supervise the electricity market.

Industry officials said the pace of reform should accelerate.

Lee Hyo-seop, vice president of Encored, said his company is preparing a virtual power plant business using AI-based forecasting technology, but uncertainty over the schedule for electricity market reform is making business development difficult.

Yeom Sung-oh, Seoul representative of Gurin Energy, said power supply flexibility and sustainability will be crucial in the AI era. He called for preemptive institutional support covering power grids, energy storage systems and data centers.

The Korea Chamber of Commerce and Industry said private-sector energy businesses are essential to address rising electricity demand from AI and the growing variability of renewable energy.

“Companies need a more predictable electricity market so they can invest in high-cost new technologies,” said Kim Min-seok, head of the chamber’s Green Energy Center. “Institutional foundations, including regulatory innovation and a supportive market environment, must be established.”

“To secure competitiveness in power infrastructure in the AI era, discussion on electricity market reform can no longer be delayed,” Kim said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260611010003798

June 7 (Asia Today) — President Lee Jae-myung sharply criticized the National Election Commission on Sunday over allegations that voting rights were violated during South Korea’s June 3 local elections.

Lee called on the National Assembly to conduct a parliamentary inquiry and ordered the administration to create a joint investigation team involving prosecutors and police.

“The National Election Commission caused serious disruption to the people’s exercise of voting rights during the June 3 local elections,” Lee wrote on Facebook. “The incident itself is difficult to understand, but its response afterward and explanation to the public were also insufficient.”

Lee said the right to vote is a constitutional right that must not be restricted or infringed upon for any reason.

“This is a grave matter that damaged the foundation of popular sovereignty,” he said. “As one citizen and as the president responsible for the government, I express deep regret.”

Lee asked lawmakers to quickly pursue a parliamentary inquiry to determine the facts and prepare measures to prevent a recurrence.

He also called for discussions on fundamental institutional reforms of the election commission.

“The government will also consider every possible measure at the administrative level, given the seriousness of the matter,” Lee said. “I have instructed the creation of a joint investigation team involving prosecutors and police to clarify responsibility and thoroughly determine the full circumstances of the case.”

Lee noted that the commission is an independent institution and said its independence comes with major responsibilities.

“The chairperson of the National Election Commission is regarded as one of the five highest constitutional officeholders because the commission is an independent institution with corresponding authority, duties and responsibility, just like the executive, legislative and judicial branches,” Lee said.

“The more independent an institution is, the more important public trust becomes,” he said. “An independent institution that has lost public trust has no reason to exist.”

Lee urged the commission to conduct a fundamental review of its organization and election management system. He said the commission should take the incident seriously and show a strong commitment to reform at a level the public can trust.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260607010002243

June 3 (Asia Today) — Harim Group’s domestic transactions among affiliates exceeded 1.4 trillion won, or about $914 million, last year, raising concerns that some unlisted units remain heavily dependent on business from within the group.

An analysis of Financial Supervisory Service filings and affiliate transaction data showed Harim Group’s domestic internal transactions totaled 1.44 trillion won, or about $938 million, in 2025.

That accounted for about 11.5% of the group’s total revenue of 12.41 trillion won, or about $8.11 billion.

Harim Group has a vertically integrated business structure spanning feed production, livestock, food processing, distribution and logistics. The structure has drawn attention because several unlisted affiliates reported high levels of sales from transactions with other group companies.

Sunjin Hanmaeul, an agricultural company involved in pig farming, generated 229.2 billion won, or about $150 million, of its 256.6 billion won, or about $168 million, in total revenue last year through transactions with affiliates including Harim Holdings and Sunjin. That means 89.3% of its sales came from internal group transactions. Sunjin Hanmaeul is a sub-subsidiary of Harim Holdings.

Korea Thumb Vet, an animal pharmaceutical affiliate, also generated 94.8 billion won, or about $62 million, of its 130.1 billion won, or about $85 million, in total revenue from affiliate transactions. The company is also a sub-subsidiary of Harim Holdings.

Charm Trading, a Harim Holdings subsidiary responsible for grain procurement and trading, posted 323.9 billion won, or about $212 million, in internal transactions out of 534.5 billion won, or about $349 million, in total revenue last year. That was the largest amount among the group’s affiliate transactions.

Sunjin, a core affiliate in the feed and processed meat businesses, recorded 118.138 billion won, or about $77 million, in sales through affiliate transactions. Sunjin also owns an 89.4% stake in Sunjin Hanmaeul, whose internal transaction dependence reached 89.3%.

Other unlisted affiliates also showed high dependence on internal transactions. Sunjin Ham, a processed meat manufacturer, posted an internal transaction ratio of 99.9%. Farmsco Bio Inti, a livestock production affiliate, recorded 85.8%, while ship management company POS SM reported 85.4% and manufacturing and services affiliate Donglim posted 80.2%.

Harim Group was sanctioned by the Fair Trade Commission in 2021 over allegations that affiliates steered business to Orpum, a private company wholly owned by Kim Jun-young, the eldest son of Harim Chairman Kim Hong-kuk and an assistant managing director at Pan Ocean.

At the time, the commission said affiliate support provided unfair economic benefits to the owner family and imposed corrective orders and fines. Harim challenged the decision and the case is currently in administrative litigation.

The continued transaction structure involving major affiliates such as Charm Trading, Sunjin Hanmaeul and Korea Thumb Vet has drawn attention because it appears to have changed little since the commission’s sanctions.

Harim Group’s succession structure is widely seen as centered on Kim Jun-young. Through Orpum and Korea Investment, Kim has secured influence within the ownership structure of Harim Holdings, and key affiliates are also included under that structure.

Some level of internal transactions may be inevitable in a vertically integrated industry. But critics say it is a separate issue when some unlisted affiliates continue to depend on internal group transactions for 60% to nearly 100% of their revenue, especially as regulators strengthen oversight of tunneling and unfair support involving owner families.

The Fair Trade Commission says it does not determine illegality based only on the share of internal transactions.

“Internal transactions become a problem when illegal conduct such as unfair business steering or private benefit-taking is involved,” a commission official said. “If unfair support or private benefit-taking is found, the transaction can be subject to sanctions under relevant laws.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260604010001065

June 3 (Asia Today) — South Korea’s major commercial banks are facing growing pressure from a sharp rise in long-overdue loans, with the amount of loans unpaid for more than one year exceeding 1 trillion won, or about $716 million, in the first quarter.

Loans overdue for less than one year, which could later worsen into long-term delinquencies, also approached 6 trillion won, or about $3.84 billion. The increase suggests that borrower distress is deepening, especially among corporate borrowers, despite banks’ efforts to dispose of nonperforming loans.

The sequential expiration of COVID-19 loan maturity extensions also appears to be adding pressure on delinquent borrowers.

Banks, which have continued to post strong earnings, are concerned that rising long-term delinquencies could increase loan-loss provision burdens. The longer a loan remains overdue and the lower its chance of recovery becomes, the more banks must set aside in provisions.

If the Bank of Korea raises its base rate in the second half, borrowers’ repayment burdens could grow further, increasing the risk of additional long-term delinquencies. Analysts say asset quality management could become a key factor determining banks’ earnings performance.

According to financial industry data released Wednesday, the combined balance of loans overdue for at least one year at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH NongHyup Bank reached 1.0972 trillion won, or about $716 million, in the first quarter.

That was up 49.3% from 734.9 billion won, or about $480 million, a year earlier. Compared with 261 billion won, or about $170 million, in 2024, the figure has more than quadrupled. It was also more than double the 508 billion won, or about $332 million, recorded in 2022 during the COVID-19 pandemic.

The increase appeared across all five banks. By bank, NH NongHyup had the largest balance of long-term overdue loans at 474.8 billion won, or about $310 million, followed by KB Kookmin at 166.9 billion won, or about $109 million, Hana at 155.2 billion won, or about $101 million, Shinhan at 151.5 billion won, or about $99 million, and Woori at 148.8 billion won, or about $97 million.

Loans overdue for at least one month but less than one year totaled 5.8851 trillion won, or about $3.84 billion, approaching the 6 trillion won mark. The figure was slightly lower than 6.1002 trillion won, or about $3.98 billion, a year earlier, but remained high by historical standards.

By category, loans overdue for at least one month but less than three months rose from a year earlier to 2.8225 trillion won, or about $1.84 billion. Loans overdue for at least six months but less than one year, which are considered more likely to become long-term delinquencies, reached 1.1111 trillion won, or about $726 million. Both were record highs since the banks began disclosing the relevant data.

The surge in long-term delinquencies is widely attributed to a sharp increase in new overdue loans in 2024 and 2025. Higher interest rates and weak domestic demand weakened borrowers’ repayment capacity, with some distressed borrowers slipping into long-term delinquency.

The increase appears particularly concentrated among corporate borrowers, whose loans are relatively large and harder to recover. At the end of March, the banking sector’s corporate loan delinquency rate stood at 0.68%, up 0.06 percentage point from 0.62% a year earlier.

“Distress pressure has continued for a long period in sectors such as construction and real estate leasing because of the weak housing market,” an official at a commercial bank said.

A renewed period of rate increases could add to the problem. The Bank of Korea left open the possibility of at least one base rate increase in the second half during last month’s monetary policy meeting, raising concerns that banks could face greater asset quality pressure.

Higher base rates can push up market rates, including bank bond yields, increasing borrowers’ interest burdens. That could deepen distress among loans already in arrears and increase new delinquencies, potentially expanding the volume of long-term overdue loans later.

That would likely translate into higher loan-loss provisions for banks. Banks classify loans into five asset-quality categories: normal, precautionary, substandard, doubtful and estimated loss.

When a loan is classified as substandard, banks must set aside provisions equal to 20% of the loan amount. As the overdue period grows longer and repayment capacity worsens, the required provision ratio rises. Doubtful loans, which are overdue for more than three months and have low recovery prospects, require 50% provisioning. Loans classified as estimated losses after more than one year overdue require 100% provisioning.

That means if a doubtful loan deteriorates into an estimated loss, the provisioning burden doubles.

A rise in provision expenses would directly weigh on bank earnings. In 2022, the five major banks set aside 3.5422 trillion won, or about $2.31 billion, in annual loan-loss provisions, while their combined net profit rose 18.6% from a year earlier to 13.7472 trillion won, or about $8.98 billion.

But in 2023, when banks set aside more than 6 trillion won, or about $3.92 billion, in provisions because of real estate project financing distress and other factors, their net profit growth slowed to 2.6%.

Provision expenses fell sharply the following year, but as delinquencies continue to rise, the possibility of renewed growth in provisions has increased. Analysts say careful risk management has become more important.

“As the delinquency period lengthens, the sale price of nonperforming loans tends to fall, so if long-term delinquencies increase, banks disposing of bad loans will also face greater loss burdens,” a financial industry official said.

“The key will be whether banks can prevent new distress from expanding while effectively clearing existing bad loans,” the official said.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260604010001073

June 2 (Asia Today) — South Korean small business owners called for more practical labor consulting and measures to ease payroll burdens during a government meeting Tuesday.

The Ministry of SMEs and Startups held a roundtable on labor difficulties facing small businesses at the Korea Certified Public Labor Attorneys Association in Yeongdeungpo-gu, Seoul.

Minister Han Seong-sook, government officials and representatives from convenience stores, restaurants and cafes attended the meeting to discuss labor management difficulties in the field.

Participants said complicated wage rules, including weekly holiday allowances and severance pay, have become a major management burden. They urged the government to provide professional consulting support.

At the meeting, the ministry announced support measures to help small businesses manage labor issues. The measures include a question-and-answer guidebook on commonly missed labor rules, regional on-site briefings and stronger online guidance through short-form videos.

The ministry also plans to help resolve disputes through counseling centers and labor lawyers. It said it will link a 24-hour artificial intelligence labor law counseling service with Small Business 24, a government support platform for small businesses.

Small business groups, however, expressed disappointment with the measures. They said expanding online and offline counseling channels could become a formality unless the government also secures enough budget and staffing to handle a surge in labor complaints.

They also said 24-hour AI counseling may have limits because labor disputes often involve complicated facts and competing interests that differ from case to case.

Participants emphasized that small businesses need more than basic information or counseling. They said the government should build a field-based consulting system and adopt policies that directly reduce labor cost pressures.

They said the government needs a bolder approach that goes beyond publicity-focused measures to address the core problems facing small businesses, including complex employment structures and allowance management.

“We will implement the measures announced today without disruption to create an environment where small business owners can run their businesses with confidence,” Han said.

The government said it will continue listening to difficulties in the field and review possible improvements to the system.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260602010000499

Unification Minister Chung Dong-young will face a prosecution investigation over allegations that he leaked classified information related to North Korea‘s nuclear facilities.

The Seoul Southern District Prosecutors Office said Thursday that it received the case from the Seoul Central District Prosecutors Office on May 21 and assigned it. Chung is accused of violating laws governing the disclosure of official secrets.

During a parliamentary committee session on March 6, Chung said North Korea is operating another uranium enrichment facility in the northwestern region of Kusong, along with previously reported ones in Yongbyon and Kangson.

The government has previously officially identified Yongbyon and Kangson as the main locations hosting the North’s uranium enrichment facilities, with Kusong being identified as a site for the first time.

At the time, the United States was reportedly said to have conveyed its concerns through South Korean diplomatic, security and intelligence agencies.

The unification ministry responded that Chung’s remarks were based on comments by the head of the International Atomic Energy Agency and reports and analyses released by research institutions, as well as media outlets.

The ministry said Thursday the prosecution’s assignment of the case was merely a procedural step following the complaint and should not be interpreted as the formal launch of an investigation.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

Coffee chain has seen ‘very significant’ drop in sales after campaign that evoked deadly crackdown, local operator says.

Starbucks Korea has suffered a “very significant” drop in sales after a marketing campaign that evoked a brutal 1980 military crackdown on pro-democracy protesters triggered a public outcry, according to the coffee chain’s local operator.

Shinsegae Group, whose subsidiary E-Mart owns the coffee chain in South Korea, has faced mounting criticism over its so-called “Tank Day” campaign, launched on the anniversary of the May 18 Gwangju Uprising, when the military government deployed troops and tanks to suppress pro-democracy demonstrations.

In a news conference on Tuesday, Shinsegae Group chairman Chung Yong-jin made a public apology and asked people not to take out any anger on Starbucks Korea employees and front-line staff.

“I take it very seriously, the fact that many people felt deep pain and anger because of Starbucks Korea’s inappropriate marketing campaign,” Chung said.

“I will take all responsibility for the incident.”

Chung also asked people not to take out their frustration on staff at Starbucks shops, saying the responsibility lies with management. There were no immediate reports of major incidents at stores.

Chung issued his first apology on May 19, saying in a statement that the campaign caused “deep pain to the victims and bereaved families of the May 18 Democratization Movement as well as to the public”.

Shinsegae fired the head of Starbucks Korea last week after apologising over the campaign. Starbucks Global also apologised and said that an investigation had begun.

A Shinsegae official said sales had fallen sharply since the marketing controversy.

“While sales are not our main concern at the moment, we have seen a very significant drop,” said the official.

At Tuesday’s news conference, Jeon Sangjin, a senior Shinsegae Group executive, said the company had yet to find conclusive evidence that Starbucks Korea marketing employees intended to mock the pro-democracy movement, an accusation the employees have denied.

However, he said some employees refused management requests to hand over their smartphones during a weeklong internal review.

Jeon said the company would look at the results from the police inquiry, and any employee found to have intended to ridicule protesters would be fired.

The anger over the campaign has triggered public calls for boycotts, amplified by government officials, including Interior and Safety Minister Yoon Ho-jung, who said Starbucks products will no longer be used at government events and lamented the chain’s “anti-historical behaviour”.

The country’s president, Lee Jae Myung, said on X last week that the campaign displayed “inhumane and disgraceful behaviour by cheap profiteers who deny the values of the South Korean community, basic human rights and democracy”.

Hundreds of people are estimated to have died ⁠or gone missing when Chun Doo-hwan’s military government cracked down on the protests in Gwangju.

Many details remain unconfirmed, including who gave the order to open fire.

May 21 (Asia Today) — Korea Electric Power Corp.’s AI-based preventive diagnostics technology will be introduced to Germany’s power equipment market under the company’s largest-ever single technology transfer deal.

Korea Electric Power said Wednesday it signed a $1.34 million, or about 2 billion won, contract with German power equipment company Maschinenfabrik Reinhausen in Berlin on Tuesday. The South Korean utility will receive technology transfer fees from the German company over seven years.

The technology, called SEDA, analyzes about 100,000 pieces of substation equipment data a day. The system uses AI to detect abnormalities in power facilities by linking data from Internet of Things sensors, facility specifications and maintenance records.

Maschinenfabrik Reinhausen, founded in 1868, specializes in transformer load tap changers, sensors and digital solutions. The company has annual revenue of about 19 trillion won, or $12.6 billion.

The German company plans to apply SEDA to its TESSA 2.0 power equipment asset management platform. The platform monitors the condition of transformers, switchgear and other power equipment.

Korea Electric Power began using SEDA in South Korea in 2021. The system has been applied to 359 of the country’s 925 substations, or about 40%, and the company is gradually expanding its use.

The company said SEDA has detected an average of 15 abnormal signs per year over the past five years. Last year, the system helped prevent equipment damage worth 36.6 billion won, or about $24.3 million.

“This technology transfer is highly significant because it gives Korea Electric Power a key foothold for entering global markets, including Europe and North America,” said Yeo Geun-taek, head of the company’s transmission and substation operation office.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260521010006459