Korea Mulls Emergency Supply Controls Amid Naphtha Crisis - Seoul Economic Daily Featured News from South Korea

Korea Mulls Emergency Supply Controls Amid Naphtha Crisis

The Korean government is reviewing emergency measures to stabilize supply of naphtha and major petrochemical products, often called "the rice of industry." The move comes as domestic refiners' crude oil stockpiles are expected to be depleted starting in April, triggering supply chain bottleneck warnings across the country—from naphtha refined from crude oil to various plastics and vinyl products derived from it. Concerns are also rapidly spreading about supply shortages of critical materials such as helium, which is essential for semiconductor manufacturing processes. According to the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, and other relevant agencies on March 19, the government is considering invoking "emergency supply-demand stabilization adjustments" as stipulated in the Special Measures Act for Strengthening Competitiveness of Materials, Parts and Equipment Industries and Stabilizing Supply Chains. This measure can be taken when rapid changes in international trade conditions disrupt the smooth functioning of industrial supply chains and pose a significant threat to national economic activity. Once approved by the Cabinet, the government can establish or modify production plans for designated items such as naphtha. The government can also arbitrarily adjust supply priorities and direct transportation, storage, stockpiling, and transfers. It is essentially an ultra-powerful measure capable of stabilizing supply chains in a short period. The supply-demand stabilization adjustment was newly established when the Materials, Parts and Equipment Special Act was comprehensively revised at the end of 2019. This followed Japan's export restrictions on key semiconductor materials in 2019, which put Korean manufacturing in crisis and created recognition that powerful government-level measures were needed to stabilize supply chains during sudden changes in trade conditions. However, no situation has arisen since then that warranted the government playing this card. When the mask crisis erupted due to COVID-19 in 2020 and the urea solution shortage occurred in 2021, the government implemented "emergency supply-demand adjustment measures" that could control overall production, supply, and distribution—but these were based on the Price Stabilization Act. Since the impact of those crises was limited to logistics, transportation, and mask prices, the response came through the Price Stabilization Act rather than the Materials, Parts and Equipment Special Act. A senior government official said, "The supply-demand stabilization measure is essentially an emergency command authority," adding, "Since petrochemical materials are the foundation of manufacturing, we are examining all legal possibilities to prevent the Middle East situation from spreading to supply imbalances or price increases." The government's basic position is to swiftly execute bold measures if necessary, just as it calmed market anxiety with petroleum price caps. The government appears to judge that the crude oil supply crisis from the recent U.S.-Iran war could lead to mammoth-scale shocks unlike previous crises. This is because naphtha refined from crude oil and ethylene processed from naphtha are raw materials used across industries—from shipbuilding and automobiles to clothing, plastic bags, PET bottles, and plastic containers. In the business community, concerns are growing that supply chain bottlenecks could spread beyond petrochemical companies to the entire manufacturing sector. According to the petrochemical industry, Company A notified its suppliers last week of an additional 400,000 won per ton price increase, following a 100,000 won per ton increase on March 1 for ABS and SAN. ABS and SAN are types of plastics used in automotive interiors, cosmetic containers, and kitchenware. Company B raised petrochemical product prices by 200,000 won per ton earlier this month, including low-density polyethylene (LDPE) used in plastic bags and polypropylene (PP) used in various containers. Company C recently notified customers that "orders received after March 9 will be transacted at prices finalized at the end of March." The Korea Institute for Industrial Economics and Trade analyzed in a report released that day that if the Strait of Hormuz blockade is prolonged and international oil prices surge to $150-180, domestic manufacturing production costs would rise by an average of 11.8%. However, some raise concerns that the government's successive market interventions could paralyze market functions. A manufacturing industry official said, "As the government implemented petroleum price caps on gasoline, diesel, and kerosene, refiners now have incentives to raise naphtha prices—which are not subject to price caps—to minimize losses," adding, "Government market intervention could lead to a chain reaction of side effects."...

BTS Returns With Fifth Album 'Arirang' After Nearly Four Years - Seoul Economic Daily Featured News from South Korea

BTS Returns With Fifth Album 'Arirang' After Nearly Four Years

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BTS announced the release of their full-group album "Arirang" on June 20, saying they "prepared thoroughly to return in style, given how long Army has waited." "We feel excited and nervous, but above all, deeply moved," the group said through their agency BigHit Music. "We are happy and grateful just to have all seven of us together again, working on something as a team." The fifth studio album "Arirang" is BTS's first new release in three years and nine months since the anthology album "Proof" in June 2022. "Because it's been so long since our last group album, we felt as much fear as excitement, but we're not too worried because we have each other and Army," the members said. The seven members are releasing 14 new tracks including the title song "Swim," which captures the team's identity and universal K-sentiment. Through this comeback, they aim to open a new chapter called "BTS 2.0." Jimin explained the album's message: "We wanted to say that we keep moving forward. There's always pressure to show something new and better. We have countless worries, but we wanted to express our determination to keep swimming forward without stopping." Suga said the group "thought deeply about what is most authentically us" and "focused on 'us' ourselves rather than grand messages." BTS said "Swim" was the song they worked on longest. During songwriting sessions in Los Angeles, the members spent an entire month trying to create something that could surpass "Swim," but found it difficult. After active solo careers around their military service, the members ate together and talked daily while working on songs in Los Angeles. They revisited memories from their rookie days and comforted each other at their lodgings when work wasn't going well. Leader RM described his first impression of "Swim": "It felt like Pyongyang naengmyeon—clean and subtly appealing. The more I listened, the more I felt like I wanted to swim together with everyone." V agreed: "Among the songs with strong sounds, 'Swim' felt the most understated. At first I thought it wasn't a stimulating track, but the more I listened, I realized it's the kind of song you can enjoy for a long time." Jin noted the rhythm point in the middle of the song—a "ddong-dda-da-dang" phrase—as particularly memorable. As the Pyongyang naengmyeon comparison suggests, BTS attempted musical changes with this album. In a documentary teaser, they expressed their will to grow, saying "We can't keep doing the same thing." "If you listen to all the tracks, the album composition itself is solid," BTS said. "We focused on expanding our range—genre, sound, and vocal expression. We tried genres that weren't familiar to us and worked hard to incorporate expressions we hadn't attempted before." Track "FYA" features raw energy with hyper jersey-based sound, while "Like Animals" and "Merry Go Round" add psychedelic textures for a different musical feel. During recording, they adjusted their approach to sound more relaxed and understated than before. The final track "Into the Sun" was created when V was suddenly inspired on his way back from working out. Jungkook said: "Since we had over 100 demo tracks, the process of gathering together to listen to them all at once was particularly memorable. Some songs were worked on separately, so there were quite a few I was hearing for the first time. That process remains a fun memory. It was just so enjoyable and happy." The members said: "It's hard to say we're 100% satisfied, but we're satisfied enough knowing that we're still changing and moving forward." BTS is raising the curtain on their second act, "BTS 2.0," with the fifth album "Arirang" and a massive world tour of the same name. Each member assigned their own meaning to "BTS 2.0": "A new beginning" (Suga), "Growth as artists" (J-Hope), "A story that includes growth" (V), and "A new direction" (Jungkook). RM reflected: "We thought about it countless times, but it's hard to define in just one phrase. I think it's close to 'balance.' Half of it is that we're back together as seven, and the other half is that we need to move somewhere and change. It's not easy, but it's equally happy and fun." Jin added: "If I had to name something that's improved, I'd say the members have grown closer. The atmosphere of naturally laughing and joking around when we're together is the same. These days, when there's a good restaurant, we still go eat together." BTS will hold a group live broadcast on fan platform Weverse at 2 p.m. on June 20 to celebrate their comeback. The following day at 8 p.m., they will hold a large-scale free return concert "BTS The Comeback Live: Arirang" at Gwanghwamun Square in Seoul....

AmCham Opposes Korea's Digital Disaster Safety Law, Citing International Law Concerns - Seoul Economic Daily Featured News from South Korea

AmCham Opposes Korea's Digital Disaster Safety Law, Citing International Law Concerns

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The American Chamber of Commerce in Korea (AmCham) has raised objections to the "Digital Disaster and Incident Safety Management Act" currently being pursued by the National Assembly. AmCham argues that applying domestic law equally to businesses with overseas data centers could violate international law. The move is effectively a demand to exclude U.S. big tech companies such as Google and Netflix from regulation, raising concerns it could escalate into a non-tariff barrier dispute and spark trade friction. According to political sources on May 19, AmCham submitted a letter of opposition as the National Assembly's Science, ICT, Broadcasting and Communications Committee accelerated efforts to enact the digital disaster safety law. AmCham argued the legislation could dampen investment by U.S. companies and hinder technological development. The Digital Disaster Safety Act was proposed in response to data center incidents that paralyzed government and private networks, including the 2022 Pangyo data center fire and the KakaoTalk outage. The bill's core provisions would require major operators to systematically manage digital incidents and designate dedicated agencies to submit and monitor management plans. **AmCham: "Extraterritorial Application of Digital Disaster Law May Violate International Law"** AmCham has specifically challenged the law's potential extraterritorial application. In its letter to the National Assembly, AmCham stated: "Excessively expanding extraterritorial scope simply because it affects the domestic market raises concerns about international law violations" and "could conflict with principles of sovereign state independence and non-interference." The "overseas activities" cited by AmCham refers to U.S. internet service companies like Google providing domestic services through overseas data centers. Google and Netflix operate domestic services using data centers in locations such as Singapore. AmCham's demand is effectively interpreted as a request to exclude U.S. big tech from regulatory scope. Under the bill, major operators failing to implement safety management plans could face fines of up to 3% of revenue. AmCham maintains this constitutes excessive regulation compared to the principle of minimal intervention. AmCham's sensitivity to this provision stems particularly from the revenue estimation methodology. The bill allows authorities to estimate revenue based on financial statements and user numbers and impose fines even on companies with overseas data centers. Google has been criticized for underreporting domestic revenue by citing its overseas data centers. As of 2024, Google disclosed 365.3 billion won in revenue, but academics estimate actual revenue at over 12 trillion won. **Opposition Spreads Over Domestic Representative Requirements... "Potential Korea-U.S. FTA Violation"** The strengthening of the current domestic representative system has also drawn AmCham's objection. The Digital Disaster Safety Act requires major operators to designate domestic representatives with substantial control. AmCham argued: "Designating related affiliates would be sufficient, and this may violate the Korea-U.S. Free Trade Agreement." AmCham has been expanding its influence amid the U.S. government's pressure to eliminate non-tariff barriers through tariff threats. Industry consensus holds that AmCham played a significant role when the Korean government conditionally allowed big tech export of high-precision maps last month for the first time in 19 years. Within the National Assembly, there are signs of pushback against AmCham's overt intervention. Some lawmakers emphasized at the Science Committee's legislation subcommittee on May 10 that citizens' digital sovereignty and safety must be the top priority. Kim Hyun, a Democratic Party member of the Science Committee, said: "This intervention constitutes interference in domestic affairs." Lee Jung-heon, also a Democratic Party lawmaker, noted: "Google achieved its long-standing goal with the high-precision map export, but our companies have significant concerns. We should not simply be led by AmCham's position under these circumstances." However, some government officials expressed concern that enacting the law could provoke U.S. companies and lead to another trade dispute. An official from the Ministry of Science and ICT said: "With the U.S. Section 301 investigation underway and tensions from the Coupang situation subsiding, this law could become another source of friction. Careful legislative timing is crucial."...

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