Seoul shares open over 1% lower following US strike on Iran
South Korean stocks opened over 1 percent lower Monday over heightened Middle Eastern uncertainties following the United States' bombing attacks on key Iranian nuclear facilities over the weekend.
The benchmark Korea Composite Stock Price Index dropped 38.17 points, or 1.26 percent, to 2,983.67 in the first 15 minutes of trading.
Engaging itself in the Israel-Iran conflict, the US used B-2 bombers to launch air strikes on three key nuclear sites in Iran on Saturday, with President Donald Trump describing the operation as "successful" and claiming the Iranian sites were "obliterated."
Most blue chips lost ground, with market heavyweight Samsung Electronics plunging 2.61 percent and chip rival SK hynix sliding 2.53 percent.
Top bio company Samsung Biologics dropped 1.77 percent, and leading battery manufacturer LG Energy Solution plummeted 3.61 percent. Top automaker Hyundai Motor retreated 4.05 percent.
In contrast, refiners and internet portal operators advanced. Leading refiner SK Innovation jumped 3.71 percent, and top internet portal firm Naver gained 1.86 percent.
The local currency was trading at 1,379.3 won against the greenback at 9:15 a.m., down sharply by 13.7 won from the previous session. (Yonhap)
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Korea Herald
43 minutes ago
- Korea Herald
US strikes on Iran leave hopes for nuclear diplomacy in tatters
PARIS/ISTANBUL (Reuters) -- In a bid to defuse the conflict over Iran's nuclear program, foreign ministers from Europe's top three powers hurried to meet their Iranian counterpart on Friday in Geneva. Those hopes collapsed Saturday when US President Donald Trump ordered airstrikes on Iran's three main nuclear sites in support of Israel's military campaign. "It's irrelevant to ask Iran to return to diplomacy," Iran's foreign minister Abbas Araqchi, visibly angry, told reporters in Istanbul on Sunday, promising a "response" to the US strikes."It's not time for diplomacy now." Trump, who said the US airstrikes "obliterated" the sites, warned in a televised speech on Saturday that the US could attack other targets in Iran if no peace deal was reached and urged Tehran to return to the negotiating table. Reuters spoke to seven Western diplomats and analysts who said the prospect of negotiations was negligible for now, with an unbridgeable gap between Washington's demand for zero enrichment by Iran and Tehran's refusal to abandon its nuclear program. "I think the prospects of effective diplomacy at this point are slim to none," said James Acton, co-director of the Nuclear Policy Program at the Carnegie Endowment for International Peace, a think tank headquartered in Washington. "I'm much more worried about escalation, both in the short and the long term." According to European diplomats, the three European allies -- Britain, France and Germany -- were not made aware of Trump's decision to strike Iran ahead of time. French President Emmanuel Macron had promised on Saturday -- just before the US strikes -- to accelerate the nuclear talks, following a call with his Iranian counterpart. One European diplomat, who asked not to be identified, acknowledged there was now no way of holding a planned second meeting with Iran in the coming week. In the wake of the US military action, any European diplomatic role appears likely to be secondary. Trump on Friday dismissed Europe's efforts towards resolving the crisis, saying Iran only wanted to speak to the US. Three diplomats and analysts said any future talks between Iran and Washington would likely be through regional intermediaries Oman and Qatar, once Tehran decides how to respond to the US airstrikes on its nuclear sites at Fordow, Natanz and Isfahan. The attacks leave Iran with few palatable options on the table. Since Israel began its military campaign against Iran on June 13, some in Tehran have raised the prospect of withdrawing from the Nuclear Non-Proliferation Treaty to signal Iran's determination to accelerate enrichment, but experts say that would represent a considerable escalation and likely draw a forceful response from Washington. Acton, of the Carnegie Endowment, said Iran's most obvious means of retaliation is its short-range ballistic missiles, which could be used to target US forces and assets in the region. But any military response by Iran carried the risk of miscalculation, he said. "On the one hand, they want a strong enough response that they feel the US has actually paid a price. On the other hand, they don't want to encourage further escalation," he said. Even before the US strikes, Friday's talks in Geneva showed little sign of progress amid a chasm between the two sides, and in the end, no detailed proposals were put forward, three diplomats said. Mixed messaging may have also undermined their efforts, diplomats said. European positions on key issues like Iran's enrichment program have hardened in the past 10 days with the Israeli strikes and the looming threat of US bombing. The three European powers, known as the E3, were parties to a 2015 nuclear deal that Trump abandoned three years later during his first term. Both the Europeans and Tehran believed they had a better understanding of how to get a realistic deal, given that the E3 has been dealing with Iran's nuclear program since 2003. But the Europeans have had a difficult relationship with Iran in recent months as they sought to pressure it over its ballistic missiles program, support for Russia and detention of European citizens. France, which was the keenest to pursue negotiations, has in the last few days suggested Iran should move towards zero enrichment, which until now was not an E3 demand given Iran's red line on the issue, two European diplomats said. Britain has also adopted a tougher stance more in tune with Washington and that was expressed in Geneva, the diplomats said. And Germany's new government appeared to go in the same direction, although it was more nuanced. "Iran has to accept zero enrichment eventually," said one EU official. A senior Iranian official on Saturday showed disappointment at the Europeans' new stance, saying their demands were "unrealistic," without providing further details. In a brief joint statement Sunday, which acknowledged the US strikes, the European countries said they would continue their diplomatic efforts. "We call upon Iran to engage in negotiations leading to an agreement that addresses all concerns associated with its nuclear program," it said, adding the Europeans stood ready to contribute "in coordination with all parties." David Khalfa, co-founder of the Atlantic Middle East Forum, a Paris-based think tank, said Supreme Leader Ali Khamenei's government had taken advantage of the Europeans for years to gain time as it developed its nuclear program and ballistic missile capabilities. "The European attempt ended in failure," he said. However, the Europeans still have one important card to play. They are the only ones who, as parties to the nuclear accord, can launch its so-called "snapback mechanism," which would reimpose all previous UN sanctions on Iran if it is found to be in violation of the agreement's terms. Diplomats said, before the US strikes, the three countries had discussed an end-August deadline to activate it as part of a 'maximum pressure' campaign on Tehran. In total, the US launched 75 precision-guided munitions, including more than two dozen Tomahawk missiles, and more than 125 military aircraft in the operation against the three nuclear sites, US officials said. US Defense Secretary Pete Hegseth on Sunday warned Iran against retaliation and said both public and private messages had been sent to Iran "in multiple channels, giving them every opportunity to come to the table." Five previous rounds of indirect negotiations between the US and Iran collapsed after a US proposal at the end of May called for Iran to abandon uranium enrichment. It was rejected by Tehran, leading to Israel launching its attack on Iran after Trump's 60-day deadline for talks had expired. Iran has repeatedly said from then on that it would not negotiate while at war. Even after Israel struck, Washington reached out to Iran to resume negotiations, including offering a meeting between Trump and Iranian President Masoud Pezeshkian in Istanbul, according to two European diplomats and an Iranian official. That was rebuffed by Iran, but Araqchi did continue direct contacts with US Special envoy Steve Witkoff, three diplomats told Reuters. One of the challenges in engaging with Iran, experts say, is that no one can be sure of the extent of the damage to its nuclear program. With the IAEA severely restricted in its access to Iranian sites, it is unclear whether Tehran has hidden enrichment facilities. A senior Iranian source told Reuters on Sunday that most of the highly enriched uranium at Fordow, the site producing the bulk of Iran's uranium refined to up to 60 percent, had been moved to an undisclosed location before the US attack there. Acton, of the Carnegie Endowment, said that -- putting aside the damage to its physical installations -- Iran had thousands of scientists and technicians involved in the enrichment program, most of whom had survived the US and Israeli attacks.
Korea Herald
an hour ago
- Korea Herald
What to expect from triple special probes targeting Yoon, wife
South Korea is set to begin an unprecedented trio of special counsel investigations into former President Yoon Suk Yeol, his wife Kim Keon Hee, and the suspicious death of a Marine during Yoon's term. With President Lee Jae Myung's approval of three special counsel bills on June 10, the probes mark a significant escalation in efforts to address allegations that the previous administration was shielded from scrutiny. Led by special prosecutors Cho Eun-suk, Min Joong-ki and Lee Myeong-hyeon, the probes are slated to begin as early as July after a mandatory 20-day preparation period ends on June 30. Nearly 600 personnel, including some 120 prosecutors, will be mobilized, making it the largest special counsel operation in South Korean history. While the prosecution and police previously conducted investigations into the same matters, critics, including then-opposition Democratic Party of Korea lawmakers, accused those probes of being superficial and biased in favor of the former presidential couple. Those earlier efforts took place when Yoon was suspended from duty but still held office, pending a Constitutional Court ruling. Unlike those probes, the special counsels operate independently from existing law enforcement and are designed to minimize political interference, aiming to restore public trust in state institutions. President Lee has framed the launch of the special counsels as a response to public demand for accountability and a reaffirmation of constitutional principles. The triple probes could reshape South Korea's political landscape, potentially deepening partisan divides or prompting broader legal and institutional reforms, depending on their outcomes. With the official launch of the special prosecutor investigation, previously separate investigations by the prosecution, police and the Corruption Investigation Office for High-ranking Officials will be consolidated under a single investigative body. The three, citing their respective jurisdictions, once vied for control over the investigation into Yoon after his martial law declaration in December 2024. Though a joint investigative team was formed among the CIO, the Korean National Police Agency's National Office of Investigation, and the Defense Ministry, the prosecution was excluded. This divide drew criticism from many people, citing a lack of credibility and fairness. It was also considered to have provided Yoon with the grounds to reject interrogation by the CIO, and led to confusion between the prosecution and the CIO when calculating the then president's detention period, according to Lee Yun-je, a law professor at Myongji University. 'The special counsel bill allows the investigation team to bring all investigation records and evidence together in one place. The special prosecutor team is likely to gain momentum in investigating different allegations surrounding Yoon, with additional summons for questioning or a search and seizure operation based on the records,' the professor added. Though Yoon was arrested by the CIO for interrogation in January, he remained silent and insisted that the CIO did not have jurisdiction to interrogate him. The ousted president was indicted by the prosecutors without investigation in late January. The police have also summoned Yoon for questioning three times since the Seoul Central District Court revoked his detention in mid-March. But the former president rejected the summons to appear for questioning over charges related to his short-lived martial law declaration. Two other independent counsel teams, tasked to probe suspicions against the former first lady and Yoon's alleged interference in the investigation into the death of Cpl. Chae Su-geun will conduct their investigation in the single investigative body as well. Public access to probes Regular briefings on the investigation process will also be held. According to the Special Prosecutor Act for the investigations on Yoon and his wife, the special prosecutor or assistant special prosecutor 'may brief the media on the investigation, excluding the details of the charges, to ensure the public's right to know." This will enable the special prosecutor teams to share the outcomes of certain case proceedings to the public, including summons, searches and seizures, warrant requests, and others, similarly to the independent counsel probe into former President Park Geun-hye and her confidante Choi Soon-sil in 2016. The Seoul Central District Court originally held Yoon's criminal trial hearings behind closed doors, citing Article 57 of the Court Organization Act. This stipulates that hearings may be closed to the public by court decision if there is 'concern that they could compromise national security, public order or violate good morals.' However, the Special Prosecutor Act mandates that the trials and hearings for related cases must be public. It states that live broadcasting shall be permitted if a request is made by the special prosecutor or the defendant, unless there are special circumstances as well. Changes for swift trials All three special prosecutor bills stipulate that the cases, which were indicted or set to be taken over by the special counsels for continued prosecution, will proceed in non-military courts. This means that the criminal trials of high-ranking military officials on insurrection charges, which were previously held in military courts, will now be conducted in the district courts. Meanwhile, Yoon's criminal trial, which is currently being heard at the Seoul Central District Court, could be transferred to a different court. The Special Prosecutor Act allows the special prosecutor to merge ongoing cases with new related cases, which could be assigned to a different panel after indicting Yoon for different criminal charges. According to the Special Prosecutor Act, the cases, which are indicted by the special prosecutors, shall be conducted promptly, taking precedence over other trials.
Korea Herald
2 hours ago
- Korea Herald
Korean workers say minimum wage needs 20% boost to cover essentials
A growing number of South Korean workers say the country's minimum wage is falling behind the cost of staying afloat. 57.4 percent of employees surveyed earlier this month said the legal wage floor for 2025 does not ensure a life of dignity, according to a new poll released by labor advocacy group Gapjil 119 on Sunday. Asked what they believe would constitute a livable income, 57 percent said it should be raised to at least 2.51 million won ($1,810) per month, or about 12,000 won per hour. That's nearly 20 percent higher than the current hourly minimum of 10,030 won, or about 2.09 million won ($1,510) for a full-time job. This tension is not new, but what stands out is the growing mismatch between wages and daily necessities in one of Asia's most developed economies, where key living expenses are now rising faster than the average price index. More than 86 percent of workers surveyed said they believe their actual purchasing power has declined, squeezed by inflation that has not been offset by wage growth. That concern is backed by central bank data. The Bank of Korea reported on June 18 that since the pandemic began in 2021, prices for essential living items, including especially food, clothing, and rent, have climbed by 19.1 percent. That's a full 3.2 percentage points above the overall consumer price increase of 15.9 percent during the same period. South Korea's core living costs are also higher than in other developed economies. For example, the Organization for Economic Cooperation and Development data shows that as of 2023, prices in Korea for food and clothing were 56 and 61 percent higher than the OECD average, respectively, after adjusting for purchasing power. Separate figures from the Economist Intelligence Unit show that Korea's fruit, vegetable, and meat prices are over 1.5 times higher than the OECD norm. The impact is felt most sharply by those at the bottom of the workplace ladder. Among entry-level employees, 61 percent said the minimum wage is not enough. Among workers at small businesses with fewer than five employees, that figure rose to nearly 66 percent. Even among those at large corporations, half still said the wage was inadequate. Attorney Kim Ki-beom of Gapjil 119 added that government plans to distribute consumer stimulus vouchers this summer, while welcome, cannot replace structural wage reform. 'Without aligning the minimum wage with actual inflation, the poorest workers will keep falling further behind,' he said. 'Next year's minimum must reflect a basic social expectation: That hard work should at least cover the basic cost of living.'
