February 25 (Tuesday) News Headline

Economy

"Cocoa Prices, Which Surged More Than Bitcoin, Plunge as Alternatives Emerge"

• Cocoa prices soared 178% last year

• As chocolate manufacturers found alternative ingredients, prices dropped by 20% within a month

• Cocoa supply shortages also resolved

"KEPCO and KHNP Headed for International Dispute Over Additional UAE Nuclear Plant Costs?… A 1.4 Trillion KRW Burden Dispute"

• Debate over who will bear the additional 1.4 trillion KRW construction cost

• KEPCO: "Costs to be distributed after UAE settlement" vs. KHNP: "OSS contract terms must be followed"

"Soaring Coffee Bean Prices Threaten Franchises"

• Coffee bean prices more than doubled in a year, rising about 35% since the start of 2024

• Franchise owners struggling to source cheaper beans

• Switching to alternative beans proving extremely difficult

"Happiness Disparity Deepens… South Korea Ranks Lowest in OECD for Happiness—Why Are Koreans So Unhappy?"

• Despite economic strength, Korea ranks among the lowest in happiness

• Quality of life satisfaction shows a stark divide based on income

• To shed the stigma of being an "unhappy economic powerhouse," Korea must focus on happiness indicators rather than just GDP growth

"YouTube Music's 'Half-Price Plan' Excludes Korea Again… Another Case of Discrimination?"

• The new 'Light Plan' is set for official launch, but Korea is expected to be excluded from the first release

• Korean users raise concerns over pricing discrimination

• Korea’s Fair Trade Commission: "Standalone video subscription options should be offered to expand consumer choice"

Finance

"Gold Hits 10th Record High This Year… Will the Overheated Market Slow Down?"

• Domestic investment demand surging sharply

• Gold supply unable to keep up, widening the gap between domestic and international gold prices

"KOSPI Takes a Breather… Retreats to 2,640 Level Amid Profit-Taking"

• U.S. stock market slowdown last week limits KOSPI’s upward momentum

• Foreign and institutional investors both turn to selling

• Diagnostic kit stocks rise on reports of a new bat coronavirus

• Kosdaq debut stock Winners surges with a ‘double-up’ performance

"Alternative Trading Platforms Flourish Globally… How Can Korea Ensure a Smooth Landing?"

• U.S.: 65 platforms (11% market share), EU: 142 (18%), Japan: 3 (11%)

• Korea to model its system after Australia due to similar market size

• "Japan’s experience suggests it will take time for tangible results"

• "Korea Exchange's monopoly needs to be addressed through new infrastructure"

"Banks Frustrated by Populist Policies After Being Forced to Cut Loans"

• "Lower deposit rates will inevitably lead to lower loan interest rates"

• Criticism that the policy is influenced by upcoming elections

"Trump Trade Losing Steam?… Dollar Weakens as Market Sees It as Overvalued"

• USD/KRW exchange rate falls to the 1,420 range for the first time since December 10, 2024

• "Trump-driven tariff effects are minimal"

• Strengthening euro and yen weigh down on the dollar

Corporations

"Canadian Crude Oil to Be Released?… Refining Industry Eyes Supply Diversification"

• U.S. to impose tariffs on Canadian crude oil starting in March

• Refining margins remain stagnant, last month’s margin at $6.8 per barrel

"Samsung Electronics and Its Labor Union Tentatively Agree on a 5.1% Wage Increase… Joint Labor-Management Task Force to Be Established"

• All employees to receive 30 company shares

• Reemployment program for parents with multiple children after retirement

"U.S. Tariffs on Pharmaceuticals Prompt Korean Biopharma Firms to Consider Local Production"

• Celltrion plans to invest in securing raw pharmaceutical production facilities in the U.S. within the first half of 2024

• SK Biopharm also considering securing U.S. contract manufacturing facilities

"Trump Tariff Threat Revives Korean GM Exit Rumors"

• GM CFO: "If tariffs persist long-term, we will consider multiple factors"

• Labor union concerns grow as withdrawal rumors spread again

• Korea’s auto parts industry, the third-largest exporter to the U.S., also on edge

"Global Auto Industry U-Turns to Hybrids… BMW Reconsiders Mini Electric Investment"

• 116 new hybrid models expected to launch worldwide this year, a 43% increase

• GM, Porsche, and Mercedes-Benz announce investments in hybrid and internal combustion engines

Real Estate

"4,600 New Apartment Units to Be Completed in Seoul Next Month… 'I Want to Live in Seoul Too'"

• 26,142 new units to be completed nationwide, including 14,000 in the metropolitan area

• Metropolitan housing supply triples

"30-Year Fixed-Rate Mortgages to Expand… Korea Housing Finance Corp. Institutionalizes Covered Bond Guarantees"

• Covered bonds to be used as long-term fixed-rate mortgage funding

• Government amending laws to allow banks to guarantee and securitize covered bonds

• Lower mortgage rates to encourage fixed-rate adoption

"Massive Jeonse Scam in Southern Gyeonggi Province… Victims File Complaints Worth Tens of Billions of KRW"

• 16 victims filed complaints against a landlord in his 60s as of February 20

• Authorities expect the scale of damage to grow further

"Government Calls for More Housing Supply, But 'Reconstruction Acceleration Act' Stalled in Parliament"

• National Assembly’s Land Committee postponed discussion on the 25th

• Delays threaten the government's redevelopment-driven housing supply plan

"Korea Land & Housing Corporation (LH) to Award 19.1 Trillion KRW in Construction Contracts This Year"

• Includes projects in Namyangju Wangsuk and Hanam Gyosan, part of Korea’s third-generation new towns

• Largest-ever public sector construction spending

• 12.6 trillion KRW allocated for apartment and infrastructure projects

International

"U.S. Sets $1 Billion Investment Minimum for Fast-Track Incentives… Complicating Korean Investment Plans"

• Economic delegation meets with U.S. Commerce Secretary Gina Raimondo

• Seen as an unofficial investment guideline

• Korean businesses struggle with high-cost, low-efficiency U.S. investments

• Exploring joint investment solutions

"Zelensky Considers Resignation If Ukraine Joins NATO… $700 Billion Reconstruction Effort Gains Momentum"

• Suggests conditional resignation in a press conference

• Pushback against Trump calling him a "dictator"

• Despite ongoing conflicts, expectations for a ceasefire rise

• Interest in Ukraine's $700 billion reconstruction project surges

• Travel restrictions for international businesses expected to be lifted

"U.S. Pressures Mexico to Impose Tariffs on China to Avoid Trump Tariffs"

• U.S. officials urge Mexico to impose tariffs on Chinese imports

• Trump administration insiders: "China is the real target behind steel and aluminum tariffs"

"U.S. Egg Prices Skyrocket… Bakery Prices Expected to Rise"

• Increased bakery costs due to soaring egg prices

• Demand surges for alternative ingredients like soybean substitutes

• Additional burden from rising chocolate prices

"Western Sanctions on Russia Ineffective… China and India Quadruple Russian Oil Imports"

• Russia’s seaborne oil exports up 15% compared to pre-Ukraine war levels

• Western nations hesitant to impose stricter sanctions due to rising oil prices affecting their own economies

Seoul Tribune (c)

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