Korea JoongAng Daily - Daily News from Korea

This article is by Sarah Chea and read by an artificial voice.

The United States, Canada, Australia and others have urged Seoul to refrain from imposing controls on petroleum exports, after several Asian countries moved to restrict exports amid protracted instability in Middle Eastern crude supplies.

Despite being a non-oil-producing country, Korea is a highly advanced refining hub, with overseas markets relying heavily on its gasoline, diesel and jet fuel exports. With Korea importing 70 percent of its crude from the Middle East, the closure of the Strait of Hormuz has constricted crude inflows, hampering production and disrupting exports of refined products.

"Countries such as Australia, the Netherlands and the Philippines have expressed deep concern and are making requests regarding potential curbs on Korean exports," said Yang Ki-wook, the director-general for industry, trade and resource security at the Ministry of Trade, Industry and Resources.

"For these countries, export controls would be more damaging than a closure of the Strait of Hormuz, as they rely on importing refined petroleum products anyway," Yang said, adding that any move to restrict exports must be "approached with the utmost caution."

The United States and Canada have also voiced concern about Korea's jet fuel exports, while Japan has reportedly urged Seoul to refrain from restricting diesel shipments.

So far, Seoul has not imposed export restrictions on petroleum products other than naphtha. However, output has declined, and a growing share has been diverted to domestic consumption, resulting in a sharp drop in export volumes.

Korea's outbound shipments of refined petroleum products — including gasoline, diesel, kerosene and jet fuel — fell 20 percent to 35.97 million barrels in March from 43.9 million barrels in February, according to data from the Korea National Oil Corporation.

Gasoline shipments posted a steep decline, dropping about 34 percent on month to 6.9 million barrels from 10.5 million, while jet fuel exports fell 15 percent to 7.3 million barrels. Kerosene saw the sharpest contraction overall, plunging nearly 60 percent to 224,000 barrels from 491,000 in February.

Korea ranks among the world's top five in refining capacity, with highly sophisticated crude-processing capabilities. Three single-site facilities operated by SK Energy, GS Caltex and S-Oil stand among the five largest in the world.

The country is also the world's No. 1 exporter of jet fuel, producing more than 150 million barrels in 2024, of which roughly 90 million barrels were shipped overseas, accounting for about 30 percent of the global market.

Australia was the largest importer of Korea's oil products at 16.8 percent as of last year, followed by Singapore at 13.6 percent, Japan at 11.3 percent and the United States at 10.2 percent. In the case of Australia's refined fuel import market, Korea is the largest supplier with shipments valued at $7.4 billion.

Korea has virtually halted exports of fuel as refiners sharply cut jet fuel production and nearly all volumes have been redirected to domestic use, as reported exclusively by the Korea JoongAng Daily in early April.

Shipments of jet fuel to the United States fell about 40 percent to 2.58 million barrels in March, from 4.03 million in February.

The United States finds itself most vulnerable, as around 70 percent of U.S. jet fuel imports come from Korea, according to the U.S. Energy Information Administration. In West Coast states, including California, Washington and Hawaii, the share is as high as 85 percent.

This article is by Jin Eun-soo and read by an artificial voice.

Luxury travelers are increasingly seeking "fusion" experiences that blend the familiar with the new, positioning Korea as an appealing destination, according to Matthew Upchurch, chief executive of Virtuoso.

Virtuoso is a global network of luxury travel agencies, with approximately 22,000 advisors across 58 countries. It operates as a two-sided network linking "travel advisors" who take care of travel experiences with service providers such as hotels, restaurants and other high-end travel businesses.

"Luxury travelers today want to discover something new but still expect a level of Western conveniences," said Upchurch in a recent interview with the Korea JoongAng Daily.

"At the same time, they don't want to feel as if they could be anywhere else. It has to feel distinct, authentic and well preserved."

In that regard, he sees strong potential in Korea.

"Korea is having an incredible moment because this country has become such a cultural phenomenon around the world, and there is this wonderful hold that already exists that is the creativity of Korea combined with a culture that is very well protected," he said.

"You come here and you know you are in Korea [because of the culture], but yet there's amazing technology efficiency and things that wow you not only from the past but also from the future."

Luxury tourism is expected to grow at an average rate of 8.4 percent per year through 2032, according to data compiled by market tracker Acumen.

Upchurch believes the outlook remains strong for his business as well, despite the rise of artificial intelligence tools capable of generating personalized itineraries.

"In the age of AI and technology, travel advisors' filter has actually become stronger, not weaker, because it is an emotional filter and that's become one of the most important ways in which the advisors are able to add value to a destination," he said.

"Travel advisors are doing so well as a profession because they are able to translate the specific nuances and emotion of luxury, which is what makes luxury, luxury."

While AI can build an itinerary that is 90 percent correct, that final 10 percent prone to hallucination is what makes travel advisors more valuable, especially in the luxury realm, according to the CEO.

"People are walking in with AI itineraries, and a really good advisor today is a collaborator. They take what has come out of AI and say what's right and what should be considered."

Exclusive experiences continue to underpin the modern definition of high-end travel.

"Luxury travelers are very interested in being participants. They want to be part of a destination, not observers. Early entrance or post-closing entrance is what luxury travelers are seeking, and are willing to pay for," he said.

For Upchurch, who has been in the industry for four decades, his business's existence faced a threat with the rise of millennials, a generation that, for the first time, had access to travel information online instantly and from anywhere.

The reality, however, was quite the contrary, he says.

"The millennials actually brought us back to probably the simplest definition of luxury. They say, 'Of course I can do it by myself, but why do I have to if I can have somebody that I can collaborate with that has personal contacts and personal access? And who also takes care of my trip if anything goes wrong?'"

Korea's tourism industry has gained momentum on the back of the global rise of K-culture, from K-pop acts such as BTS to hit series like "Squid Game" (2021-25). The country posted a record of 18.5 million foreign visitors in 2025.

Now, Korea wants to pivot toward higher-value tourism. While most inbound travellers have traditionally come from neighboring countries such as Japan and China, which together take up more than 50 percent, there is a growing push to attract visitors from North America and Europe through longer-stay programs.

As part of that effort, t...

This article is by Kim Da-young and read by an artificial voice.

The gender pay gap across Korea's financial industry remains wide, with insurance companies showing the largest disparities, according to new data analyzed by the JoongAng Ilbo.

Sectors with a higher share of performance-based pay and wider compensation spreads tend to produce larger disparities, with men consistently earning more on average than women.

While pockets of reversal have emerged — particularly at certain ranks in banking and securities — they remain exceptions in a system where the overall structure still favors male employees.

These findings are based on compensation data that financial firms began publishing in March after a parliamentary audit last year brought the issue of gender disparities in finance into sharper public focus.

Among the four major commercial banks — KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank — the average annual pay gap stood at about 30.5 million won ($20,642), with Shinhan Bank exhibiting the highest gap between the genders at roughly 44 million won.

However, the pay gap among staff who work at physical bank branches was reversed at KB Kookmin Bank and Woori Bank, where women in such positions earn slightly more than men on average. This difference is likely due to the higher proportion of women working in these roles and the higher concentration of employees with longer tenures among them.

The gender pay gap was wider in the securities industry, where the average disparity in salaries reached about 38.6 million won across Samsung Securities, Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities and KB Securities.

However, some companies bucked this trend when it came to their higher-ranking staff.

Female vice presidents at Samsung Securities earned more on average than their male counterparts, while women outearned men at the department head and team leader levels at KB Securities. NH Investment & Securities also showed a similar pattern among senior managers. But these reversals were limited to select ranks, with the broader structure still tilted toward higher male pay.

The gender pay disparity was wider still in the card industry, where the average gap was 42.8 million won among five major card issuers: Shinhan Card, Samsung Card, Hyundai Card, KB Kookmin Card and Lotte Card, with Hyundai Card posting the widest difference.

But the most striking pay imbalances by far are in insurance.

Among nonlife insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance and DB Insurance, the average gap reached 63 million won — the largest across the financial sector. At DB Insurance alone, the difference between male and female employees approached 69 million won.

Life insurers showed similarly large disparities. At firms such as Samsung Life Insurance, Kyobo Life Insurance and Hanwha Life Insurance, the average gap hovered around 44 million won. Hanwha Life did show a reversal at several mid-level ranks, where women earned more than men, but the overall structure — particularly at the executive level — remained male-dominated.

One industry representative who spoke to the JoongAng Ilbo attributed these gaps to the composition of companies' work forces.

"Women are more heavily represented in roles such as customer service, support and call centers, which tend to offer lower pay," they said, adding that this dynamic "is compounded by a pyramid-shaped structure in which female representation thins sharply at higher ranks, concentrating the highest salaries among male executives."

The data has also revived calls to formalize gender pay reporting.

While some financial firms now publish the data pursuant to regulatory guidance, disclosures remain voluntary, with limited penalties for noncompliance. The government is considering expanding a mandatory pay transparency regime across industries as early as next year.

"Disclosing wage information can strengthen workers' bargai...

This article is by Choi Hye-ri and read by an artificial voice.

From book recommendations to breakdowns of topics, AI has entered the reading space. Bookstores, libraries and e-book platforms alike are increasingly using AI to suggest titles and guide readers through books in real time.

The question now is whether AI can become more of a reading companion, rather than just a discovery tool.

So far, AI is most actively used for personalized curation.

Last month, Kyobo Book Centre unveiled Trend+, an AI service that recommends books based on the selection patterns of its in-house merchandisers.

Navigating through the app leads users to a page that suggests titles tied to current issues, such as recently announced international literary awards and trending topics in the news.

Online bookstore Yes24 also launched Crema AI last year, a chatbot that recommends books through conversations with users. When users give it prompts such as "a novel to read when feeling tired and drained," the chatbot suggests books drawn from its purchasing and catalog data.

Flybook, a startup that offers personalized book recommendations through an app, has begun installing AI-powered kiosks at around 250 libraries across the country.

Users select their age, gender, current mood, interests and preferred genres, and an AI librarian recommends about five books available in the library.

"Satisfaction among [human] librarians is high," said Kim Jun-hyun, the CEO of Flybook. "In the past, book loans tended to focus on bestsellers and newly released titles, but after the introduction of the kiosks, we have seen a noticeable increase in the borrowing of quality books that had previously gone unnoticed."

He added, "I believe AI can simultaneously solve the problem of not knowing what to read and the difficulty of maintaining consistent reading habits."

Subscription-based reading platform Millie's Library is taking things a step further by integrating a conversational AI chatbot into its platform.

By tapping "Read with AI" at the bottom of an e-book, users can ask questions about the text they're reading.

For example, if a user asks what fish represent in the book "Why Fish Don't Exist" (2020) by Lulu Miller, the chatbot will explain that fish can be seen as a metaphor for life beyond the order and categories we know, and also recommend relevant passages for deeper reading.

"In the case of this service, usage is particularly high for nonfiction books such as business and self-help titles," a representative from Millie's Library said. "We are using AI as a tool to lower the barrier to reading and enable deeper reading experiences."

The target users of these AI services are people in their 20s and 30s in Korea, as reading is often seen as a fashionable trend among this demographic.

"We wanted to appeal to younger readers, who tend to be more receptive to AI recommendations and actively embrace new technologies," a representative for Kyobo Book Centre said.

Over the past year, 50 percent of users of Millie's Library's AI reading service were women in their 20s and 30s.

However, deeper applications of AI that use the book's actual text are unlikely to expand widely in the current industry climate, while most AI recommendations are currently based on consumer patterns and data rather than the text itself.

Resistance to AI remains strong among publishers, authors and readers, to the extent that the slang term "click publishing" has emerged — referring to books created with minimal effort.

"If publishers believed that AI could learn the full text [from e-books provided on reading platforms], more than 90 percent of publishers would refuse to supply their books," an industry insider said.

As a result, providers of AI reading services emphasize that they "do not train AI on full book texts without authorization," drawing a clear line by stating that they use only "publicly available book information, reader reviews and anonymized user data."

Experts say that while...

This article is by Woo Ji-won and read by an artificial voice.

"My competitive fire was incredibly intense when I debuted with Wanna One in my early 20s," Kim said during a roundtable interview with reporters on Monday at a cafe in Gangnam District, southern Seoul, ahead of the release of his new digital single, "I'll Be There," on Wednesday.

"Whenever I appeared on variety shows, especially in survival-style segments, I always wanted to come in first. But now, I see younger artists coming up, and I feel like that phase has passed for me. I just want to keep making music while staying grateful and never losing a sense of appreciation."

Kim debuted as the main vocalist of Wanna One in 2017 alongside members such as Park Ji-hoon and Kang Daniel after placing among the finalists on the second season of Mnet's hit audition program "Produce 101" (2016-19). The group was active for about a year and a half, releasing hits such as "Energetic" (2017), before disbanding in January 2019.

"The lyrics of this song are about offering comfort," Kim said. "When I was writing them, I kept thinking about how fans had been waiting for me, during my military service and even after while preparing this song. I wanted to create a song that says, 'I will come get you,' something that can comfort them through their tiring daily lives." Kim was discharged from his mandatory military service last December after serving in a military band.

But he hopes the message extends beyond his fan base, delivering "a sense of warmth to people going through exhausting days."

The latest track also signals a return to the sound he feels most like himself in — a band-driven style. Built as a rock ballad, the single features a full arrangement of live-recorded instruments, including drums, bass and guitar. Before debuting with Wanna One, Kim trained as a band musician for four years and has played guitar since elementary school.

"I am more comfortable with band music," he said. "Holding a guitar on stage feels more natural to me, so I think it will show a more natural side of me."

"I believe the guitar, among all instruments, carries the warmest tones. Because I've played it since I was young, I think that warmth in the guitar's sound can also come through in my voice."

After Wanna One's disbandment, Kim built his solo career with a full-length album, multiple EPs and a range of drama original soundtracks, including "Someday" from tvN's hit drama "Crash Landing on You" (2019–20).

Still, the transition into working alone was not without pressure, particularly following the immense popularity of Wanna One.

"I definitely felt that pressure in the beginning, right after Wanna One ended and I debuted as a solo artist," he said. "Because I received so much love as part of the group, I felt like I had to carry that over into my solo career. But over time, I learned to let go of certain things and tried to stay humble even more during those moments."

Recently, the group announced a reunion and held a fan meet-and-greet in western Seoul on April 6, where they spontaneously performed "Pick Me" (2017).

"Even though it was brief, I could tell everyone has improved so much," Kim said. "Since we've all been active individually and performing on stage, we must have all grown a lot." The group's reality program "Wanna One Go: Back to Base" is set to air on April 28.

"I think 'comfort' suits me well," he said. "People often tell me that my voice feels warm when I sing. I hope to become an artist who can deliver that warmth, someone whose music brings comfort to others."

Above all, Kim is eager to return to the stage.

"I want to perform at a lot of festivals. It's not about headlining. I just want to find as many stages as I can where I can share my music."

This article is by Cho Jung-woo and read by an artificial voice.

Garbage bag shortages due to naphtha supply disruptions triggered by the Middle East conflict are raising questions about whether it is time to scrap Korea's long-established, cumbersome volume-based garbage bag system.

A Seoul resident last month filed a complaint through the 120 Dasan Call Center suggesting that the Volume-Based Waste Fee (VBWF) system, officially introduced in 1995, be abolished. The system requires people to dispose of household waste in paid, designated bags. The resident instead proposed allowing the use of regular plastic bags for convenience.

In response, the Seoul Metropolitan Government said dismantling the system would be difficult. Officials emphasized that a recent ban on the direct landfilling of household waste in the greater Seoul area, including Incheon and Gyeonggi, has made systematic waste management more important than ever. The policy is intended to reduce pollution and reliance on landfills.

Korea is widely regarded as the first country to adopt a nationwide pay-as-you-throw system. The policy was designed to curb waste by tying disposal costs to volume.

Yet total household waste has continued to rise, increasing from 48,728 tons per day in 2013 to 61,404 tons in 2023, according to government figures.

While some critics say the VBWF system no longer provides a strong incentive to reduce waste, others argue that it has helped Korea build one of the world's more rigorous recycling systems.

Rethinking the system

Park Seok-soon, an emeritus professor of environmental engineering at Ewha Womans University and former head of the National Institute of Environmental Research, argues that the system should be scrapped as it contributes to plastic waste by relying on disposable bags.

"People do not necessarily reduce waste to avoid paying for the bags," Prof. Park said. "Instead, the system ends up producing more plastic bags."

Around 1.8 billion VBWF, or pay-as-you-throw, bags are produced in Korea each year.

Prof. Park proposed outsourcing waste collection to specialized companies. Under his model, households would use reusable containers or bags that would be collected and managed by private small- and mid-sized firms.

"The companies would be paid according to the number of households and residents in the areas they serve," Prof. Park said.

"That would allow companies to sort recyclable materials more efficiently, as many are currently discarded in paid garbage bags, while also creating jobs," he said.

According to the Seoul city government, about 55 percent of vinyl disposed of in the city is still discarded in paid, general waste bags, leading to incineration or landfilling despite its recyclability. To address this, the Ministry of Climate, Energy and Environment has proposed expanding pretreatment facilities nationwide to reduce waste sent to incinerators and increase the recycling rate. These facilities would open waste bags and mechanically sort recyclable materials such as plastic film, which could then be processed through pyrolysis, a method that breaks plastic down into reusable resources.

Before waste disposal became fee-based

Until 1980, household waste was discarded in large communal bins near homes, where general, food and recyclable waste were mixed together. Between 1980 and 1995, those bins were removed and garbage was placed in large black plastic bags, though sorting remained limited.

That changed in 1995 with the introduction of the VBWF system, which formalized waste separation and introduced a financial incentive to reduce nonrecyclable waste. Households were charged based on the volume of general waste they generated, while recyclables could be disposed of free of charge. Food waste was initially collected with general waste, but began to be separated after a 2005 ban on its direct landfilling.

Before the adoption of the VBWF system, most waste had previously been sent to landfills, according to the K...

The author is a playwright and director.

A comedian who publicly supported the president was recently appointed head of the National Jeongdong Theater. He is said to have been active in the performing arts, but even I, who have also spent considerable time in that field, know little about him. Such reward-style appointments have always existed, but this one is so unconventional that it feels like watching a piece of black comedy.

In thinking about comedy, one recalls "The Name of the Rose" (1980) by Umberto Eco. The novel is set in a medieval monastery where a series of murders takes place. After investigation, a book coated with poison is discovered, but it is ultimately destroyed in a fire. The book is imagined to be the missing comedy section of "Poetics" (335 B.C.) by Aristotle.

"Poetics," a foundational work of literary theory, survives largely as a set of lecture notes and is mainly concerned with tragedy. As for comedy, Aristotle offers only a brief definition and mentions that he will discuss it later. Because that later discussion is missing from the existing text, it remains unclear whether a full treatment of comedy ever existed.

Most readers might pass over that brief remark, but Eco did not. He took that single line as a starting point, imagining that a lost section on comedy once existed and constructing a story about how it might have disappeared.

If tragedy is a genre that confronts the truths of life with solemnity, comedy has the power to twist and subvert accepted truths through laughter. In the medieval world, where the absolute authority of God was emphasized, such laughter could pose a threat. If comedy, which could undermine authority by turning it into an object of laughter, were to spread among the people, it would have been seen as dangerous. In Eco's narrative, the book is coated with poison to kill those who read it and is eventually burned, leaving only the current version of "Poetics."

The title "The Name of the Rose" also recalls a line from William Shakespeare's "Romeo and Juliet" (1597). Juliet says that a rose would retain its fragrance even if its name were changed, expressing trust in the essence of things. By contrast, Eco concludes that the rose of the past remains only as an empty name. This invites a question: are the principles we believe in today likewise reduced to names without substance?

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

The author is an editorial writer at the JoongAng Ilbo.

It is hard to predict how things unfold. Today, amid a semiconductor boom, Samsung Electronics is grappling with internal tensions over large performance bonuses. Yet only three years ago, the outlook was bleak. Its stock price had fallen, and doubts grew over whether it could maintain its technological edge after lagging in high bandwidth memory. Losses even led to zero corporate tax payments, shrinking government revenue. At the time, bonuses were out of the question.

The surge in artificial intelligence has changed that picture. Profits are rising, and the pool to be shared has grown. Rival SK hynix has heightened tensions with an announcement of generous bonuses. Labor unions, determined to secure their share, are even prepared to strike. Discussions about priorities such as research and development or capital investment needed to sustain growth are largely absent. Demands for bonuses — estimated at no less than a total of 40 trillion won ($28 billion) — far exceed shareholder dividends of 11.1 trillion won, raising questions about whether a company ultimately serves its shareholders or its employees.

The bonus debate, which began at SK hynix and spread to Samsung and other firms including Hyundai Motor, reflects a common pattern in Korea. Public interest extends beyond employees and shareholders. People with no direct stake comment on bonus policies, while speculation circulates about their potential impact on the real estate market. Some even express concern about the future of companies unrelated to them.

Unions, therefore, find themselves not only negotiating with management but also facing public skepticism. A key question is whether profits achieved during a favorable semiconductor cycle can be attributed to individual performance. This recalls criticism of banks that posted peak profits during a housing boom and distributed large bonuses. Calls have emerged for windfall taxes or for bonuses to be paid in local currency vouchers. In some cases, individuals with no direct ties to the companies have staged one-person protests opposing such payouts.

Unions argue that competitive bonuses are needed to prevent talent outflow and invoke broader social considerations. Samsung's union has claimed that higher compensation would support science and engineering and ease the concentration of students in medical school. Interest in semiconductor-related academic tracks has indeed increased alongside rising pay in the sector. Even so, using such arguments as a basis for bonuses remains unconvincing.

Another distinctive feature is the influence of egalitarian thinking. Although bonuses are meant to reward performance, uniform distribution has become common, reflecting what some scholars describe as a deeply ingrained cultural tendency. This has led to tensions, as standardized compensation structures encourage free riding and dilute the purpose of performance-based pay.

As bonuses are divided evenly rather than based on role or achievement, rewards for specialized skills, including advanced research, are weakened. This has widened divisions between highly trained researchers and production workers. Increasingly, the decisive factor is not individual capability but whether one belongs to a profitable industry. Critics warn that record bonuses in the chip sector could distort the broader science and engineering ecosystem.

Despite differences across industries, demand for bonuses are spreading. Major corporate unions are using semiconductor-sector payouts as leverage. Hyundai's union, for example, plans to seek bonuses equivalent to 30 percent of last year's net profit, drawing on precedents set by SK hynix and Samsung. The situation suggests a form of benchmarking that could raise expectations across sectors.

Sharing corporate gains with employees is not inherently unreasonable, and companies have at times been slow to distribute profits. Yet the widespread attention to bo...

The author is a chair professor of economics at Seoul National University.

Why does North Korea come to mind when observing the Iran war? One reason is the persistence of U.S. President Donald Trump on nuclear issues. It is clear that U.S. military action aims to prevent Iran from acquiring nuclear weapons. Trump has said the world will be safer once the war ends, making Tehran's abandonment of nuclear ambitions central to any settlement. In this respect, the conflict recalls the North Korean nuclear crisis of 2016–17.

In early 2016, North Korea carried out its fourth nuclear test, followed by two more tests and intercontinental ballistic missile launches. At the time, the first Trump administration seriously considered a so-called bloody nose strike. However, there was still hope that sanctions could lead to negotiations, and experienced officials prevented escalation. Trump's confidence was also more limited. Had such a crisis occurred during his second term, the possibility of war might have been greater.

Another similarity lies in the role of third parties persuading Trump that the moment was ripe for a deal. Reports suggest Israeli Prime Minister Benjamin Netanyahu helped shape conditions leading to the Iran conflict. In 2018, negotiations with North Korea were facilitated in part by special envoys from the Moon Jae-in administration. Information conveyed by these actors appears to have reinforced Trump's instinct that such strategic opportunities are rare and must be seized.

Yet the approaches to denuclearization diverged sharply. While the United States pursued negotiations with North Korea, it used military force in Iran's case. The second Trump administration appears more willing than previous administrations to use force. This may increase pressure on adversaries, but it also raises concerns among observers. While such tactics may be effective in individual cases, they risk undermining the broader international order.

The Iran war has increased the likelihood of military conflict worldwide. In the roughly 70 years between the Korean War and the Russia-Ukraine war, major power-involved conflicts occurred about once every seven years. In contrast, two such wars have taken place in the past four years. The growing frequency of conflict may reduce policymakers' reluctance to use military force, making war a more readily chosen option.

Conflicts can spread in unintended ways. When Hamas attacked Israel in October 2023, few experts anticipated escalation into a broader war involving Iran and eventually the United States. Yet that is what has occurred. War carries the risk of expansion, and as economic tools and military force are increasingly used together, the global environment becomes more dangerous. This moment may mark the beginning of such an era.

The key question is whether this wave of conflict will stop or evolve into a larger cycle affecting the Korean Peninsula. Korea must preserve peace. Preventing the spread of conflict requires addressing the North Korean issue. However, moving too quickly risks legitimizing North Korea as a de facto nuclear state. Given Trump's focus on nuclear issues, attention may eventually shift from Iran to North Korea, though he is likely aware that rushed negotiations could give Pyongyang the upper hand.

At present, resolving the North Korean nuclear issue is unlikely to be a top U.S. priority. At the same time, excessive assertiveness by Trump could also pose risks. Frustration under unfavorable conditions might appear as signals of military confrontation on the peninsula. Even rhetoric similar to "fire and fury" could deliver a severe shock to South Korea's economy in the current environment.

Seoul must wait for a strategic opportunity. When geopolitical shifts or internal changes in North Korea create such a window, it should be prepared to use it as a basis for negotiation. The South also needs to compensate for weaknesses in Trump's transactional approach, including a tenden...

Economic aides at the Blue House recently took to social media to criticize both the International Monetary Fund's warning on government debt and domestic media reports citing it. In its latest Fiscal Monitor, the IMF identified Belgium and Korea as the countries likely to see the fastest rise in the ratio of government debt to GDP over the next five years. Kim Yong-beom, the presidential chief of staff for policy, described the notion that "government debt itself means danger" as a "one-dimensional fear narrative." It is unusual in itself for senior Blue House officials to publicly rebut an IMF outlook and the reporting based on it.

Kim argued that Korea's debt-to-GDP ratio remains well below the average for members of the Organisation for Economic Cooperation and Development. He also questioned whether reserve-currency status should be treated as the decisive standard for judging fiscal soundness, and suggested it was far from certain that Korea's debt ratio would rise at the fastest pace. Ryu Deok-hyun, a senior presidential aide for fiscal planning, likewise stressed that by international standards, Korea's fiscal position remains exceptionally sound and that interest payments on government bonds, at about 1 percent of GDP, are still manageable.

Still, Kim's tendency to treat concern over public debt as exaggerated political framing is problematic. As the Blue House explains, Korea's fiscal position may look stronger than that of many advanced economies for now. But once the liabilities of public enterprises are taken into account, there is less room for confidence. The speed of debt accumulation is also difficult to ignore. Given rapid aging and growing welfare demand, concerns about fiscal sustainability cannot simply be dismissed.

What makes Kim's argument more striking is that it contrasts with his own earlier view. In "Upheaval and Balance" (2022), published after he left office as first vice finance minister, Kim wrote that Korea's national debt had risen very quickly in recent years and that international credit rating agencies were beginning to focus on the medium- and long-term soundness of Korea's public finances. He also argued that, because Korea is neither a reserve-currency issuer nor anything other than a small open economy, it would be better to approach the government bond market cautiously and defensively.

For a country that has lived through repeated crises, including the foreign exchange crisis, preparing for the worst remains essential. That was also Kim Yong-beom's earlier position. If the government wants active fiscal policy, structural fiscal reform must accompany it. Rather than dismissing the IMF's concern, Blue House aides should have used it to persuade interest groups resisting fiscal restructuring. That would have been the proper posture for economic officials.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.