Korea JoongAng Daily - Daily News from Korea

The author is an editorial writer at the JoongAng Ilbo.

London operates a public transportation system that, at first glance, appears more generous to older adults than Korea's. Residents aged 60 and older can apply for a free travel card, which allows them to use not only the Underground but also buses at no cost. To prevent misuse, eligibility is verified annually to ensure that applicants actually reside in London. Foreign nationals can also benefit if they maintain a local address and live there.

Compared with this, major Korean cities including Seoul offer free subway rides only to those aged 65 and older. Yet London imposes a key restriction: These users must pay fares during weekday morning rush hour before 9 a.m. In Seoul, by contrast, no such time limits exist.

Statistics illustrate the issue. According to Seoul Metro, older riders accounted for 9.7 percent of passengers between 7 a.m. and 8 a.m. last year. The share fell slightly to 7.9 percent between 8 a.m. and 9 a.m., though it remained significant during peak commuting hours.

If older riders were required to pay a fare during these congested periods, usage would not fall to zero. Some would continue to ride and pay, while others might shift their travel to less crowded times. Either way, congestion could be eased to some extent. Such a measure could also help mitigate growing intergenerational tensions over the rising cost of welfare.

President Lee Jae Myung's remark at a Cabinet meeting on March 24 about reviewing limits on free rides during commuting hours deserves broader public debate. The issue should have been discussed earlier, not only as part of temporary measures tied to high oil prices. London's time restrictions were not introduced as an energy policy but as a way to balance welfare benefits with social costs.

Korea's population is aging rapidly. As of last month, people aged 65 or older accounted for 21.6 percent of the population, according to the Ministry of the Interior and Safety. Seoul, at 20.7 percent, has already entered a "super-aged" society. The Ministry of Data and Statistics projects that by around 2035, the older population will exceed 15 million and make up 30 percent of the total. It will be increasingly difficult for the working-age population alone to bear the expanding welfare burden.

Politicians often find it easier to expand benefits than to reduce them, especially ahead of local elections in June. In that context, Lee's willingness to raise the issue is notable. London's model may not offer a perfect solution, but alternatives must be explored before generational conflict deepens further.

Recent developments, however, are disappointing. Opposition from older adult associations was predictable. The presidential office's swift retreat was not. Hong Ik-pyo, senior presidential secretary for political affairs, reportedly told a meeting with the Korean Senior Citizens Association on Friday that there were no plans to limit free rides. His remarks, cited in the association's press release, marked a clear shift from the president's comments just 10 days earlier.

Some have suggested raising the age threshold for such benefits, but that approach is not straightforward. International organizations such as the United Nations and the Organisation for Economic Cooperation and Development define the older population as those aged 65 and older, making it a global standard. Adopting a different benchmark in Korea could complicate international comparisons.

Encouraging the demographic to remain active outside the home has recognized social benefits. Research by the Korea Transport Institute suggests that free rides generate not only costs but also meaningful social gains. The key question is who should bear the cost. Ultimately, both older and younger generations will need to make compromises, and political leaders should avoid exacerbating divisions rather than working to ease them.

This article was originally written in Korean and transla...

Lee Jae-seung

The author is a professor of international studies at Korea University and head of the Ilmin International Relations Institute.

During his recent visit to Korea, French President Emmanuel Macron left behind an invitation to the June Group of 7 (G7) summit in Evian. For Korea, being invited to the apex of global governance signals an ascension to insider status. Yet in international politics, invitations are rarely gestures of goodwill alone.

With wars in the Middle East and Ukraine and instability in the Strait of Hormuz, this year's G7 is less a routine gathering of advanced economies than a crisis management forum for geopolitical risk. Discussions will extend beyond the G7's capacity, particularly on supply chains and energy security. That helps explain why Korea was invited. The key question is how Korea uses the opportunity.

Korea's position can be likened to a newcomer in an upscale neighborhood. It drives competitive industries such as semiconductors and defense exports and holds growing cultural influence. On the surface, it has joined the ranks of advanced economies. Yet to long-established players such as Japan and European nations, Korea still appears as a dynamic but relatively new entrant. In global politics, wealth is not measured only by GDP but also by accumulated trust and relationships.

Korea may see itself as an indispensable partner, but the reality is less certain. A Japanese acquaintance, asked last month about the need for Korea-Japan cooperation after the Iran war, replied cautiously: "It would be good to have Korea, but it is not essential." It was not a comfortable answer, but states act on necessity, not goodwill.

The following day, a six-nation maritime security declaration on the Strait of Hormuz led by Japan and France was announced. Behind the scenes, these countries had already aligned their positions. In times of crisis, what matters is who calls first and whether partners share context without explanation.

Against this backdrop, diplomatic gaps, including vacancies in key ambassadorial posts, are a missed opportunity. Macron reportedly spent twice as much time in Japan as in Korea during his recent trip. Korea's capabilities have grown, but the density of its relationships remains incomplete.

This defines the challenge at the Evian summit. The central agenda is not economic imbalance but geopolitical crisis management. Energy supply chains, financial shocks and subtle differences between the United States and Europe are intertwined. Korea must move beyond focusing narrowly on peninsula issues and instead propose roles that are indispensable to G7 priorities in security and energy.

There are practical contributions Korea can offer. These include maintenance and repair networks for defense equipment that could help fill security gaps among Western partners, as well as nuclear and hydrogen supply chains that address both decarbonization and energy security. Korea is also well positioned to participate in future energy and infrastructure reconstruction in the Middle East.

In multilateral diplomacy, what matters is not whom one meets but what agenda one advances. Korea should move beyond photo-driven "pull-aside" diplomacy and present proposals that others would miss in its absence. Doing so will shape Korea's standing and influence the success of the G20 summit it is set to host next year.

The G20 was once seen as a representative platform beyond the G7, but it has increasingly reflected geopolitical divisions. Reviving it will require more than ceremony. The host must craft workable agendas amid competing interests. That begins with reading the dynamics of multilateral forums such as the G7.

Korea often describes itself as a bridge between advanced and developing countries. From the outside, however, it is already viewed as part of the West. At a Konrad Adenauer Foundation conference a few years ago, one participant remarked, "Korea is already Western. It is harder to prove o...

Presidential Chief of Staff Kang Hoon-sik departed on Tuesday for the Middle East and other regions to secure crude oil and naphtha supplies strained by Iran's closure of the Strait of Hormuz. Following a visit to the United Arab Emirates last month, Kang is scheduled to travel to Saudi Arabia, Oman and Kazakhstan. The trip reflects a sense of urgency as prospects remain dim for the reopening of Hormuz, a key sticking point in cease-fire talks between the United States and Iran, even as U.S. President Donald Trump threatens to destroy Iran's infrastructure, including its bridges and power plants.

The supply disruption is already affecting Korea's economy and daily life. For example, average gasoline prices in Seoul have surpassed 2,000 won per liter ($5 per gallon), raising concerns about broader inflation and logistical bottlenecks. Shortages have begun to appear in unexpected areas, from government-issued trash bags to syrup bottles used for medicine.

Recent developments suggest that both Washington and Tehran view the Strait of Hormuz as a strategic pressure point. Trump said on Monday that reopening the strait is a "very high priority" in negotiations, and Iran appears determined to retain leverage over the passage. As a result, major oil-importing countries, including Korea, China and Japan, are actively seeking alternative sources across global markets.

The current crisis is expected to last for at least several months and could recur, which underscores the need for a more permanent diversification strategy. As of 2024, about 62 percent of Korea's oil imports passed through the Strait of Hormuz, highlighting the urgency of reducing dependence. The Ministry of Trade, Industry and Resources recently identified 17 potential supplier countries, but its focus must shift from one-time spot purchases to stable, long-term contracts.

Korea should also move quickly to expand purchases of U.S. energy, as agreed during last year's Korea-U.S. summit. Trump has singled out Korea, along with the European Union and Japan, as not having supported the United States in the current conflict. Increasing imports of U.S. crude oil, which accounted for 16.3 percent of Korea's total last year, could help stabilize supply while easing potential pressure from Washington on trade and security matters.

Japan has already announced plans to quadruple imports of crude from Texas this year. Korea must respond with similar urgency. As Kang said before his departure, the government should pursue every opportunity, "even if it means securing just one barrel of oil or one ton of naphtha." The current effort must go beyond symbolic diplomacy and produce tangible results in securing energy stability.

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.

This article is by Han Young-hye, Michael Lee and read by an artificial voice.

U.S. forces have struck military facilities on Kharg Island, Iran's primary oil export hub, according to a Tuesday report by U.S. media outlet Axios that cited anonymous sources.

Iran's state-owned Mehr News Agency also reported that Kharg Island had come under repeated airstrikes and that explosions had been heard in succession.

Situated off Iran's southern coast in the Persian Gulf, Kharg Island serves as the linchpin of the country's energy exports, handling more than 90 percent of its crude oil and petroleum shipments.

Any damage to the oil-related facilities there would likely ripple across Iran's energy sector, raising the prospect of significant disruption to one of the country's most vital economic lifelines.

The strikes came just hours before a 48-hour deadline set on Sunday by U.S. President Donald Trump for Iran to reopen the Strait of Hormuz was set to expire.

Approximately 70 percent of Korea's crude oil imports pass through the strait. Twenty-six ships owned or operated by Korean companies are stranded to the west of the strait, including 17 crude and oil tankers, five bulk carriers, two gas carriers, a container ship and an automobile carrier.

Trump has criticized Korea, Japan and European allies for not helping the United States reopen the strait by sending their warships to escort commercial vessels through the waterway.

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.

This article is by Kim Seon-mi and read by an artificial voice.

The surge in global oil prices driven by the Iran war has gas station operators and credit card companies butting heads over transaction fees.

Fuel retailers argue that as oil prices rise, so too do credit card fees — squeezing margins and limiting their ability to lower prices for consumers. Card companies, on the other hand, say cutting fees is difficult, citing profitability concerns and the need to maintain fairness across industries.

The Korea Oil Distribution Association has asked the government and card issuers to temporarily lower the current 1.5 percent credit card fee during periods of high oil prices to between 0.8 percent and 1.2 percent, according to oil industry sources on Tuesday.

Under the proposal, fees would be adjusted in line with fuel prices — for example, capped at 1.2 percent when the price exceeds 1,800 won per liter ($4.55 per gallon) and lowered to 1 percent when it surpasses 2,000 won.

The association estimates that of the 58.1 trillion won in total sales recorded by roughly 10,600 gas stations nationwide last year, about 828 billion won went to credit card fees.

"Every 200 won increase in fuel prices raises card fees by about 3 won," an industry source told the JoongAng Ilbo. "The burden on gas stations could rise by as much as 1 trillion won compared to last year."

At the heart of the dispute is the structure of fuel pricing, which includes taxes such as transportation, energy and environmental levies — amounting to 698 won per liter for gasoline and 436 won for diesel. Card fees can significantly eat into profit margins as they are calculated based on the sales price, which includes taxes.

However, card companies have resisted lowering fees, noting that gas stations already benefit from preferential rates applied to small- and medium-sized merchants under the current system.

According to the Financial Services Commission, merchants with annual sales below 300 million won are subject to minimum fees of 0.4 percent for credit cards and 0.15 percent for debit cards. For those with annual sales between 300 million won and 3 billion won, rates range from 1 percent to 1.45 percent for credit cards and 0.75 percent to 1.15 percent for debit cards.

"Given that preferential rates already apply to gas stations, it would be difficult to justify additional cuts from a fairness standpoint," a credit card industry representative told the JoongAng Ilbo. "With overall fee revenue declining and net profits across card companies falling by nearly 9 percent last year, reducing fees would also negatively impact [our] profitability."

In lieu of lowering fees, card companies have recently rolled out measures to soften the impact of rising oil costs on consumers at the request of financial authorities.

Nine domestic card issuers said they will offer full cashback on annual fees for new cards with benefits at gas stations until next month, along with additional discounts of up to 50 won per liter or 5 percent of fuel purchases.

"Rather than changing the fee system, we will focus on measures that consumers can directly feel," the credit card industry source said.

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.

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

Korea has virtually suspended its jet fuel exports amid crude oil shortages, a move set to hit the United States — which relies on Korean fuel for nearly 70 percent of its imports — the hardest.

Korean oil refiners have sharply scaled back jet fuel production, diverting much of the adjusted volume to domestic demand.

As the world's top jet fuel exporter, Korea is a critical lifeline for countries like the United States and Australia, leaving them highly exposed to any disruption in Korean shipments.

Seoul has yet to impose formal restrictions on jet fuel exports, but could move in that direction if conditions deteriorate, as it did with naphtha.

Jet fuel export freeze

Disruptions in crude supply have pushed jet fuel production down the priority list, with the limited volume largely diverted to meet domestic airline demand.

"Crude supply disruptions have forced adjustments across the crude distillation units, and jet fuel production has naturally declined," said a source at GS Caltex, one of Korea's major refiners. "The structure prioritizes domestic needs first, with any remaining volume earmarked for export.

"But even that leaves virtually nothing available for export."

With exportable volumes constrained, shipments previously promised for long-term supply contracts are being deferred.

"Some of April's jet fuel exports are being deferred, including through rollover supply," said a source at HD Hyundai Oilbank, another major refiner.

SK Energy is also directing nearly all spot volumes toward domestic consumption.

In fact, energy analytics firm Kpler said Korea's jet fuel exports in March fell to roughly half of last year's levels, and predicted the slowdown could deepen.

A halt in Korea's aviation fuel exports would have significant global repercussions, as Korea remains the No. 1 jet fuel exporter in the world, producing over 150 million barrels as of 2024. Of them, 90 million barrels were shipped overseas, accounting for 30 percent of the global market.

Of the exports, 41 percent were shipped to the United States, totaling 36.5 million barrels, while Australia ranked second with 14.06 million barrels, according to the Korea Petroleum Association as of 2024.

Still, the Korean government has taken a cautious stance on imposing restrictions on jet fuel exports.

"Restrictions on petroleum product exports must be approached with great caution," said Yang Ki-wook, director-general of the Office of Industry, Trade and Resource Security at the Ministry of Trade, Industry and Resources during a press briefing on Tuesday.

"While the situation may change in the future, at present we are not considering any export limitations."

U.S. overly dependent on Korea

The United States finds itself most vulnerable as nearly 70 percent of U.S. jet fuel imports — up to 85 percent in certain regions — depend on Korean jet fuel.

This reliance may partly explain the Donald Trump administration's fixation on keeping the Strait of Hormuz "open," despite Middle Eastern crude accounting for only 7.9 percent of U.S. oil imports last year.

Most of Korea's jet fuel is derived from Middle Eastern crude, meaning that a prolonged closure of the Strait of Hormuz could disrupt U.S. jet fuel supplies. Korea imports roughly 70 percent of its crude oil from the Middle East, and 99 percent of that passes through the Strait of Hormuz.

As of 2025, 68.6 percent of U.S. jet fuel imports came from Korea, according to the U.S. Energy Information Administration. In West Coast states, including California, Washington and Hawaii, it rose to 85 percent.

Jet fuel requires advanced refining, as even trace amounts of water can be catastrophic for aircraft operating in low-pressure, low-temperature environments. Despite being a non-oil-producing nation, Korea has mastered the production of high-grade jet fuel, leveraging its sophisticated refineries and large-scale facilities.

Korea ranks among the world's top f...

This article is by Jeong Jae-hong and read by an artificial voice.

Only a small proportion of suspects in stalking and domestic violence cases are being detained despite increased measures to curb such crimes, according to recent police data.

The National Police Agency conducted a comprehensive review of more than 22,000 crimes involving stalking and domestic violence after a man wearing an electronic ankle monitor stalked and killed his ex-girlfriend in Namyangju, Gyeonggi, on March 14.

Of the 22,388 cases examined, offenders in 1,626 cases were classified as high-risk.

Police had applied for arrest warrants in 389 cases, requested detention in 460 and sought court orders requiring suspects to wear electronic ankle monitors in 317.

However, only 35.7 percent of arrest warrants sought by police were issued, and detention and electronic monitoring orders were approved in 26.5 percent and 35.8 percent of cases, respectively.

Concerns have also emerged regarding the enforcement of court-ordered punishments. Some stalking suspects have disabled their electronic ankle monitors and gone into hiding.

In one case, a suspect who cut power to his device was apprehended after a two-day search.

Police said they have expanded victim protection measures, including funding private security and installing CCTV systems for high-risk victims. Still, critics say those steps fall short of preventing crimes before they occur.

An internal audit at the Korean National Police Agency also uncovered shortcomings in the handling of the Namyangju case. The agency said it has referred 16 officials to a disciplinary committee and requested investigations into two others.

Going forward, the police plan to strengthen information-sharing with the Ministry of Justice to better monitor individuals subject to electronic tracking and restraining orders.

Officials added that they will continue consultations with prosecutors and courts to raise the rate at which arrest warrants are granted.

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.

This article is by Lee Jae-lim and read by an artificial voice.

Samsung Electronics reported a preliminary operating profit of 57.2 trillion won ($38 billion) for the first quarter of 2026, marking a 755 percent on-year surge that blew past already elevated market expectations, driven by robust memory demand and rising chip prices.

The result comfortably exceeded the 40.2 trillion won consensus compiled by FnGuide, which had been revised upward just days earlier. The earnings also put the Korean chipmaker on par with U.S. Big Tech peers — in the latest quarter, Microsoft posted $38.3 billion in operating profit, Alphabet posted $35.9 billion, Nvidia posted $44.3 billion and Apple posted $50.9 billion.

The quarterly figure marks a new all-time high for the Suwon, Gyeonggi-based chipmaker, surpassing its previous full-year record operating profit of 58.9 trillion won in 2018, and far exceeding its full-year 2025 operating profit of 43.5 trillion won.

Revenue for the quarter climbed 68 percent from a year earlier to 133 trillion won, also beating market forecasts of 119 trillion won.

Analysts expect profitability to continue rising memory prices are anticipated to climb further amid an extreme supply-demand imbalance driven by expanding AI inference demand and constrained supply growth. Consensus estimates for the remaining quarters have been revised higher, with operating profit projected at 55.4 trillion won in the second quarter, 64.2 trillion won in the third quarter and 67.5 trillion in the fourth quarter, bringing the full-year 2026 operating profit to 244.3 trillion won.

KB Securities set the highest target stock price at 360,000 won for the next 12 months following the preliminary earnings release. The brokerage forecasts a hefty operating profit of 327 trillion won in 2026 and 488 trillion won in 2027, based on projected on-year price gains of 250 percent for dynamic random access memory (DRAM) and 187 percent for NAND flash.

"Samsung is expected to solidify its position among the world's most profitable companies," KB Securities analyst Kim Dong-won said. "While the estimated 2026 operating profit gap between Samsung and Nvidia is relatively narrow at 30 trillion won, Samsung's current market capitalization of 1.25 quadrillion won remains just 19 percent of Nvidia's and 57 percent of TSMC, highlighting its significant valuation upside."

Shinhan Securities raised its six-month target stock price to 270,000 won, noting that the chipmaker has the largest DRAM and NAND capacity amid strained global supply. The company is also expected to be the fastest among peers to bring new 1c-node DRAM capacity online.

The semiconductor division is estimated to have generated 53 trillion won in operating profit alone, including 54.5 trillion won from memory semiconductors and a loss of 1.5 trillion won from system semiconductor operations, according to Daishin Securities. The smartphone division is estimated at 3.4 trillion, Samsung Display at 300 billion won, the consumer electronics division at 200 billion won and Harman at 300 billion won.

The company did not provide a breakdown by business division and is set to release a full earnings report later this month.

This article is by Shin Hye-yeon and read by an artificial voice.

A bill allowing workers to use annual leave in hourly increments was approved by the National Assembly's Climate, Energy, Environment and Labor Committee on Tuesday.

The proposed amendment to the Labor Standards Act, if passed into law, is expected to give workers greater flexibility in using their time off.

The bill goes beyond the current system of half-day leave taken in morning or afternoon blocks. Details on its implementation are expected to be laid out in a future presidential decree.

The legislation also includes penalties for employers who disadvantage workers for requesting or using annual leave, with violators subject to fines of up to 5 million won ($3,700).

Other bills that would increase the number of paid days for infertility treatment leave and improve work-family life balance were also passed by the committee the same day.

Currently, only two of the six days for infertility treatment leave are paid leave; the revision raises the number of paid days to four.

Legislation that clarifies the scope of punishable offenses related to workplace sexual harassment was also passed by the committee.

In addition to employers, the proposed revisions explicitly include corporate representatives and supervisors, as well as employees who are relatives of the employer or company executives, as subject to penalties for harassment.

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.

This article is by Michael Lee and read by an artificial voice.

SM Entertainment's subsidiary Studio Realive has appointed Kim Jong-min, its previous chief creative officer (CCO), as its new chief executive, the parent company announced on Tuesday.

Kim, a specialist in creative technology and cross-disciplinary content, is expected to build a bridge between artistic production and technological innovation, according to SM Entertainment's press release.

Studio Realive, the so-called entertainment tech subsidiary of SM Entertainment, focuses on combining K-pop with AI and extended reality technologies to create next-generation entertainment experiences.

Leveraging SM's intellectual property and narrative universes, Studio Realive aims to build a participatory ecosystem in which fans act as co-creators to shape new forms of storytelling and engagement.

Before joining Studio Realive in 2024, Kim co-founded GiiOii Studio and worked as an extended reality curator at the Bucheon International Fantastic Film Festival. He has also served as an adjunct professor at the Korea National University of Arts and as a full-time professor at the Korea Creative Content Agency's New Content Academy.

During his tenure as Studio Realive's CCO, Kim led partnerships with global tech players — including Meta, Google DeepMind and Moment Factory — while spearheading immersive content and spatial experience projects. He played a key role in strengthening its technological capabilities and platform competitiveness, balancing artistic vision with commercial viability, according to SM Entertainment.

Kim is expected to strengthen Studio Realive's business foundation and help position innovative media projects within a sustainable ecosystem, the company said.