Journalist

Lee Hugh
  • Resident FX deposits in Korea jumped nearly $16 bln in December
    Resident FX deposits in Korea jumped nearly $16 bln in December SEOUL, January 26 (AJP) -Foreign-currency deposits at South Korea-based banks surged by nearly $16 billion in December on prolonged weakness in the Korean won, central bank data showed. The Bank of Korea said Monday that resident foreign-currency deposits at local foreign-exchange banks totaled $119.43 billion at the end of December, up $15.88 billion from the previous month. It marked the second consecutive monthly increase. Resident foreign-currency deposits include holdings by South Korean individuals and companies, foreigners who have lived in South Korea for at least six months, and foreign companies operating in the country. By currency, U.S. dollar deposits climbed $8.34 billion to $95.93 billion, while euro deposits rose $6.35 billion to $11.75 billion. Japanese yen deposits increased by $870 million to $9.0 billion. A Bank of Korea official said dollar deposits expanded as funds flowed into banks for multiple purposes, including about $2.0 billion related to foreigners’ purchases of equity stakes in South Korean companies, current-account settlements by exporters and importers, and investor funds held by securities firms. Euro deposits rose as foreign-affiliated companies placed funds tied to current-account payments due early in the year, including proceeds from discounting foreign-currency sales receivables, the official said. Yen deposits increased mainly due to investor deposits at securities firms. By depositor type, corporate foreign-currency deposits jumped $14.07 billion to $102.5 billion, while individual deposits rose $1.82 billion to $16.93 billion. By bank type, deposits at domestic banks increased $12.76 billion to $101.6 billion, while those at local branches of foreign banks rose $3.13 billion to $17.83 billion. 2026-01-26 13:07:57
  • KOSDAQ breaks above 1,000 as Asia trades mixed; Nikkei retreats on political uncertainty
    KOSDAQ breaks above 1,000 as Asia trades mixed; Nikkei retreats on political uncertainty SEOUL, January 26 (AJP) – Asian equities opened the week mostly lower, with Japanese stocks retreating on rising bond yields and political uncertainty. South Korea’s secondary KOSDAQ bucked the sentiment, surging past the 1,000 mark for the first time in four years on policy optimism. The benchmark KOSPI opened higher but later pared gains. As of 10:37 a.m. local time Monday, the index was down 0.48 percent at 4,966.31. The KOSDAQ jumped 5.48 percent to 1,048.35, triggering a buying sidecar as momentum accelerated in growth stocks. A KOSDAQ buying sidecar is activated when KOSDAQ 150 futures rise more than 6 percent from the reference price and the spot KOSDAQ 150 index climbs more than 3 percent for at least one minute. At the time of activation, KOSDAQ 150 futures were up 6.29 percent, or 105.10 points, at 1,774.60, while the spot index rose 6.56 percent. Trading in both futures and cash markets was temporarily halted for five minutes to curb volatility. It marked the first KOSDAQ buying sidecar since April 10 last year. The rally was driven by continued expectations for government measures to revitalize the junior bourse, along with strong gains in biotech and secondary battery shares. Market sentiment was buoyed by reports that the KOSPI 5,000 Special Committee recently proposed leveraging digital assets to push the KOSDAQ toward the 3,000 level during a luncheon meeting with President Lee Jae Myung. Policy initiatives such as the proposed “National Growth Fund” to boost venture investment also supported sentiment. Among KOSDAQ stocks, ABL Bio surged more than 15 percent, EcoPro BM climbed about 12 percent, and Rainbow Robotics jumped over 22 percent. On the KOSPI, heavyweight stocks showed mixed performance. Samsung Electronics rose 0.33 percent to 152,600 won, while SK hynix fell 2.74 percent to 746,000 won amid speculation that Samsung may be gaining an edge in the HBM4 race. LG Energy Solution advanced 0.85 percent to 415,500 won. Samsung Life Insurance slipped 0.49 percent, and Samsung Biologics edged down 0.17 percent. Automakers traded lower, with Hyundai Motor falling 1.76 percent to 501,000 won and Kia dropping 2.45 percent to 155,100 won, after recent sharp gains. Defense and aerospace shares gained attention, with Hanwha Aerospace rising 1.04 percent to 1,268,000 won, as President Lee Jae Myung’s chief of staff Kang Hoon-sik departed for Canada as a special envoy for strategic economic cooperation. Kang is seeking to support South Korea’s bid to secure Canada’s major submarine procurement project, estimated at up to 60 trillion won ($40.9 billion), where Hanwha Ocean is competing against Germany’s Thyssenkrupp Marine Systems. Shipbuilders traded lower. HD Hyundai Heavy Industries fell 2.55 percent to 611,000 won, while Hanwha Ocean slipped 0.50 percent to 139,600 won. In currency markets, the won strengthened to 1,444.40 per dollar, up 10.90 won from the previous session, supported by a firmer Japanese yen. Japanese stocks underperformed most in the region. The Nikkei 225 Index fell 1.75 percent to 52,902.87, weighed down by a sharp rise in government bond yields and growing political uncertainty. Yields on Japan’s long-dated government bonds last week had neared 30-year highs while the yen toward the 160-per-dollar level, fueling concerns over investor confidence. Markets were unsettled after Prime Minister Sanae Takaichi called a snap election for early next month, raising worries over fiscal policy direction amid proposals for additional stimulus and tax cuts. 2026-01-26 11:41:14
  • Team Korea heads for Canada for final push in $41 bn submarine bid
    Team Korea heads for Canada for final push in $41 bn submarine bid SEOUL, January 26 (AJP) - President Lee Jae Myung’s chief of staff Kang Hoon-sik departed for Canada on Monday as a special envoy for strategic economic cooperation, seeking to support South Korea’s bid to secure Canada’s major submarine procurement project estimated at up to 60 trillion won ($40.9 billion). Kang left Incheon International Airport for Toronto as South Korean shipbuilder Hanwha Ocean competes for Canada’s Canadian Patrol Submarine Project (CPSP), after being shortlisted as one of the final two contenders alongside Germany’s Thyssenkrupp Marine Systems (TKMS). “The bidders for the Canadian submarine project have now been narrowed down to Korea and Germany,” Kang told reporters before departure. “During this visit, we will meet senior Canadian officials to explain the advanced capabilities of Korean submarines and convey the Korean government’s commitment to expanding security and industrial cooperation between the two countries.” Kang is accompanied by Industry Minister Kim Jung-kwan and Defense Acquisition Program Administration (DAPA) Commissioner Lee Yong-chul, along with senior executives from Hanwha Ocean, Hyundai Motor Group and HD Hyundai. The CPSP involves the acquisition of up to 12 conventionally powered submarines of around 3,000 tons, along with long-term maintenance, repair and overhaul services, making it one of the largest submarine procurement programs currently under way. Kang stressed the need for pan-government support for the bid, noting that South Korea faces strong competition from Germany, a global manufacturing powerhouse and a country that previously transferred submarine technologies to South Korea. “Large-scale defense projects of this nature cannot be pursued by individual companies alone,” Kang said. “We will directly deliver the Korean government’s commitment to broadening industrial and security cooperation with Canada.” Following his Canada visit, Kang will travel to Norway to discuss expanding defense cooperation. It will mark his second trip to Norway after an earlier visit in October, when he delivered a personal letter from President Lee. In Norway, Hanwha Aerospace is seeking to secure a major long-range rocket procurement project with its K239 Chunmoo multiple rocket launcher system. Kang said a decision on the Norwegian deal is expected “in the near future.” Kang added that the government is also preparing to expand defense cooperation with Saudi Arabia, the United Arab Emirates, Indonesia and Peru. Kang was appointed as President Lee’s special envoy for strategic economic cooperation in October, as part of the administration’s goal to position South Korea among the world’s top four arms exporters. 2026-01-26 10:58:24
  • Seoul confirms plan to construct two nuclear reactors by late 2030s
    Seoul confirms plan to construct two nuclear reactors by late 2030s SEOUL, January 26 (AJP) - South Korea will proceed with plans to build two new nuclear reactors by 2037-38, the government said on Monday, reviving a project that had effectively been on hold and paving the way for site selection to begin. Climate, Energy and Environment Minister Kim Sung-hwan said construction of the reactors, included in the current national power plan, would move ahead as scheduled after public consultations showed broad support. “New nuclear power plant construction under the 11th Basic Plan for Electricity Supply and Demand will proceed as planned,” Kim told reporters at the government complex in Sejong. Finalized early last year, the 11th plan calls for the construction of two large-scale reactors with a combined capacity of 2.8 gigawatts, targeted to come online in 2037–2038. Kim said reducing carbon emissions across the economy was unavoidable in responding to climate change and that emissions cuts in the power sector would require scaling back coal and liquefied natural gas generation. The electricity system, he said, would need to rely primarily on renewable energy and nuclear power. Following a change in government, debate emerged over whether the nuclear construction plan should be reconsidered or deferred to the 12th basic plan, prompting two public forums and opinion polls conducted late last year and earlier this year. In the surveys, respondents who said the nuclear construction plan “must proceed” accounted for 32.5 percent in a Gallup Korea poll and 43.1 percent in a Realmeter poll. Those who said it “should preferably proceed” made up 37 percent and 18.8 percent, respectively, meaning more than 60 percent supported moving forward. Opposition was lower, with 5.3 percent and 13.5 percent saying the plan “must be halted,” and 17.3 percent in both surveys saying it “should preferably be halted.” When asked which energy source should be expanded most, the largest share of respondents selected renewable energy — 48.9 percent in the Gallup Korea poll and 43.1 percent in the Realmeter survey — followed by nuclear power at 38 percent and 41.9 percent. Citing the results, the government said it would place renewed emphasis on nuclear power while expanding renewables. Kim said intermittency in renewable generation would be addressed through energy storage systems and pumped-storage hydropower, while nuclear power’s operational inflexibility would be mitigated through more flexible plant operations. The new nuclear build is also expected to be a key assumption in the upcoming 12th electricity basic plan, covering 2026–2040. A working-level draft is due in the third quarter after meetings of expert committees, followed by a strategic environmental impact assessment, a public hearing, a report to a National Assembly standing committee and a review by the Electricity Policy Deliberation Committee. Final approval is expected by year-end. The ministry said the next plan would reflect rising electricity demand driven by artificial intelligence and broader electric-vehicle adoption, alongside targets for carbon neutrality and the expansion of a distributed power grid. However, the 11th plan assumes a construction period of about 167 months — nearly 14 years — for large reactors, making early site selection essential to meet the target completion date. Accordingly, Korea Hydro & Nuclear Power is expected to begin a site solicitation process soon, followed by five to six months of evaluation and selection. The aim is to secure construction permits in the early 2030s and complete the reactors by 2037–2038. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-26 10:53:44
  • [BTS Comeback] Ticketing is only half the battle
    [[BTS Comeback]] Ticketing is only half the battle SEOUL, January 26 (AJP) -"Booking a room is as important as scoring tickets." With BTS’s comeback in the Gwanghwamun area and the kick off of its April world tour in Goyang now confirmed, fans are increasingly turning their attention to accommodation near the venues. The idea is straightforward: avoid the most congested post-show routes and reduce travel time, ideally by staying within walking distance. The trend has even produced its own term among fans: “sukso-ting,” a portmanteau of the Korean word for accommodation (“sukso”) and “ticketing,” reflecting how booking hotels has become part of the concert preparation process. Hotels within walking distance expected to draw the most demand in Gwanghwamun A show in the city center offers strong accessibility, but heavy crowding and congestion are also expected, particularly during exit. For that reason, hotels that allow fans to move on foot are likely to be among the most sought-after options. "The Four Seasons Hotel Seoul" is located next to Gwanghwamun Square, offering views that can include Gyeongbokgung Palace and the surrounding area through large windows. The hotel also has an indoor pool and spa. "Hotel Koreana," directly adjacent to the square, is positioned just across a crosswalk from the venue. Its rooms have undergone renovations, making it a practical choice for those who prioritize proximity. "The Plaza Seoul" is roughly a 10 to 15 minute walk from Gwanghwamun. With its distinctive interior design and boutique style atmosphere, it is presented as an option for those who prefer staying bit away from the densest crowds while still remaining within a manageable distance. "Prepare for an endurance test": For Goyang, target the KINTEX area The April's world tour opener at Goyang Sports Complex will take place near Daehwa Station on Subway Line 3. Because the venue sits farther from central Seoul, securing a room in the northern Gyeonggi area is important in order for fans to not only shorten their travel time but also maintain their condition ahead of the concert. The "Sono Calm Goyang," described as a local landmark in Goyang, is located about five minutes by car from the stadium (approximately 2.5 kilometers). It is introduced as the only five-star hotel in northern Gyeonggi Province and is near KINTEX, making it a leading option for both business visitors and BTS fans. With comfortable room conditions and a range of dining options, the hotel is positioned to meet the needs of fans seeking both meals and rest before and after the event. Inquiries for April reservations are already said to be increasing. The "Gloucester Hotel Kintex" is presented as a more budget-friendly alternative for those seeking comfortable room conditions. Nearby facilities include "Hyundai Department Store" and "One Mount," and the stadium is described as close enough to reach with basic taxi rate. From budget picks to style-forward stays, more options are available Accommodation choices are not limited to five-star hotels. In the Gwanghwamun area, business hotels such as "Shilla Stay Gwanghwamun" and "L7 Myeongdong by Lotte" are cited as alternatives with clean facilities at reasonable prices. For travelers visiting with friends from abroad, finding hotels near Seochon or Bukchon Hanok Village can be a memorable option. In Goyang, one should not be disapointed if they failed to book "Sono Calm." Residence-style hotels near KINTEX, including "Kintex by K-Tree" and "Urban-est," are equipped with cooking facilities, allowing small groups of friends to gather and spend time together after the event. Moreover, remodeled small-to-mid-sized boutique hotels near the food district next to Daehwa Station provides cost friendly options. Important factor is timing. Regardless of the price, securing a base camp that accounts for routes to and from the venue will shape fan's ultimate BTS experience in March and April. 2026-01-26 10:47:37
  • Hyundai Motor chairman joins Canada envoy team to back submarine bid
    Hyundai Motor chairman joins Canada envoy team to back submarine bid SEOUL, January 26 (AJP) - Hyundai Motor Group Chairman Chung Eui-sun is joining a special envoy team to support South Korea’s bid for the Canadian Patrol Submarine Project, government and industry officials said on Monday. Chung will depart for Canada later in the day to back the government-led effort, the officials said. A defense-industry envoy team, including Presidential Chief of Staff Kang Hoon-sik and Industry Minister Kim Jeong-gwan, will also leave for Canada on Monday to promote South Korea’s bid for the project. The government requested participation from major industrial groups including Hyundai Motor Group, Hanwha Group, HD Hyundai and Korean Air. Chung will be joined by Hanwha Group Vice Chairman Kim Dong-kwan and Ju Won-ho, head of HD Hyundai Heavy Industries’ naval and medium-sized ship business division. The CPSP is a major defense procurement program to build up to 12 diesel-powered submarines. Construction costs are estimated at up to 20 trillion won ($15 billion), while the total value of the project could reach as much as 60 trillion won when including 30 years of maintenance, repair and operations (MRO), according to officials. A consortium formed by Hanwha Ocean and HD Hyundai Heavy Industries has been shortlisted alongside Germany’s Thyssenkrupp Marine Systems (TKMS) and is competing in the final stage of the tender. A decision is expected in June. Canada has been seeking industrial offsets as part of the procurement, including investment and other forms of compensation from potential suppliers in South Korea and Germany. Offsets typically involve arrangements such as technology transfers, local production or export opportunities for components as part of major defense contracts. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-26 10:30:59
  • Krafton executives meet Indian ambassador to discuss tech investment
    Krafton executives meet Indian ambassador to discuss tech investment SEOUL, January 26 (AJP) - Krafton announced on January 23 that it held talks with Indian Ambassador to South Korea Gourangalal Das at its Seoul headquarters to outline plans for expanded technology cooperation and investment in India. Ambassador Das met with senior Krafton executives, including Board Chairman Chang Byung-gyu and Kim Nak-hyung, the head of the company's India and emerging markets division. Deputy Chief of Mission Nishi Kant Singh also attended. The group exchanged views on the current state of India's technology ecosystem, covering artificial intelligence, digital content, and entertainment. They also discussed how private sector investment from South Korea could support broader industrial growth in India. The talks centered on the "KRAFTON-NAVER-MIRAEASSET Unicorn Growth Investment Fund." This investment vehicle is being established by Krafton in partnership with Naver and Mirae Asset Group. The fund, which targets a total size of up to 1 trillion won, aims to pool resources from leading South Korean corporations to support startups. Krafton intends to use this initiative to increase its mid-to-long-term investments in promising Indian technology firms. "India is rapidly growing as a core hub for global technology innovation, and it is significant that South Korean companies are expanding long-term cooperation and investment centered on the Indian market," Ambassador Das said. "We expect that private sector-led investment, including that of Krafton, will play an important role in helping Indian technology companies and startups grow and leap into the global market." Chairman Chang noted that Krafton views the region as more than just a consumer base. "For Krafton, India is not merely a market for overseas sales but a strategic partner country where we have built trust and standing through 'Battlegrounds Mobile India'," Chang said. "Based on this experience, the Unicorn Growth Investment Fund will serve as a starting point to expand cooperation with promising Indian enterprises beyond gaming into various industrial sectors." Krafton stated it plans to continue identifying investment targets through the fund and will look for further opportunities to link the South Korean and Indian technology sectors. 2026-01-26 10:14:29
  • S-Oils annual operating profit tumbles 31.7% on weak petrochemical margins
    S-Oil's annual operating profit tumbles 31.7% on weak petrochemical margins SEOUL, January 26 (AJP) - South Korean refiner S-Oil reported a 31.7 percent plunge in operating profit for 2025, dragged down by mounting losses in its petrochemical division amid a prolonged industry downturn. The company posted an operating profit of 288.2 billion won ($198.8 million) for the year, down from 422.1 billion won in 2024, according to a regulatory filing on Monday. Annual revenue slipped 6.5 percent to 34.25 trillion won as global oil prices softened throughout the year. S-Oil swung to a net profit of 216.9 billion won, reversing the previous year's loss, buoyed by a robust fourth quarter that defied the broader annual decline. The October-December period delivered an operating profit of 424.5 billion won, surging 90.9 percent from a year earlier. The refiner's lubricant business emerged as the sole bright spot, generating 582.1 billion won in operating profit. However, both the refining and petrochemical segments sank into the red, posting operating losses of 157.1 billion won and 136.8 billion won, respectively. Looking ahead, S-Oil projected favorable market conditions for 2026, citing expectations that global demand growth would outpace capacity additions from new refineries and paraxylene plants. The company also anticipates continued support from low crude prices and subdued official selling prices. The refiner's massive Shaheen Project, a crude-to-chemicals complex, has reached 93.1 percent completion as of Jan. 14. S-Oil said it aims to achieve mechanical completion by June and commence commercial operations by December. S-Oil shares traded at 95,600 won on Monday morning, down 3.92 percent from the previous market closure. 2026-01-26 10:04:06
  • OPINION: Behind the seizure of military power, is the Chinese military system strengthening or weakening
    OPINION: Behind the seizure of military power, is the Chinese military system strengthening or weakening SEOUL, January 26 (AJP) - A national military is both a tool of power and the ultimate safeguard for a country's survival. Historically, military control has rested on a balance between two pillars: political oversight and the autonomy of a professional military organization. When these two elements are in balance, a military grows stronger. When only control remains and autonomy vanishes, the military ceases to be an army and becomes a political organ. What is currently unfolding within the People’s Liberation Army (PLA) is a process where this balance is collapsing. On the surface, recent personnel reshuffles within the Central Military Commission (CMC) appear to be an extension of anti-corruption efforts and the establishment of discipline. However, looking at the scope and depth of the purges, as well as the nature of the individuals removed, this is not a simple cleanup of corruption. It is a political restructuring that changes the very nature of the military power structure. The military command elite is being dismantled, and the collective military decision-making system is effectively ceasing to function. Originally, while the CMC centered on a single chairman, practical military judgments were made through discussion and coordination among vice chairmen and members. Strategy, operations, theater command, weaponry systems, and joint operation doctrines were the domain of professional military elites. Recent trends, however, move toward dismantling this group and concentrating the responsibility for military judgment into the hands of the top political leader alone. The core of this change is more evident in who remains rather than who was removed. It is symbolic that the survivors are not from combat command lines but from inspection and political backgrounds. This signifies that internal control, loyalty management, and political security have become higher priorities than actual combat capability. This is the moment a military organization shifts from a system prioritizing combat efficiency to one prioritizing political trust. The problem begins here. Modern warfare is no longer a matter of troop size or equipment quantity. It is a complex conflict combining intelligence, space, cyber, AI, and electronic warfare. Such wars require rapid judgment from field commanders, creative responses to unexpected situations, and horizontal collaboration rather than a top-down structure. However, when the fear of purges dominates an organization, officers choose "safe judgments" over proactive ones. Reporting increases and responsibility moves upward while field autonomy disappears. The military may appear safer, but it does not become stronger. Another structural issue is the collapse of responsibility distribution. In a collective leadership system, military failures are absorbed within the institution. But when supreme decision-making power is concentrated in an individual, failure is directly linked to that individual. This may make a leader more cautious, but it also increases the risk of excessive information control and self-confirmation bias. A structure where only the information a leader wants to hear is reported may look powerful on the outside, but it is actually the most vulnerable. These internal structural changes have repercussions for the international order. It is difficult to conclude whether China will become more aggressive or more cautious. One thing is certain: predictability is decreasing. As the military becomes politicized, it becomes harder for outsiders to analyze China’s actions through military logic, as political considerations are likely to override strategic calculations. The Taiwan issue must also be viewed through this lens. While large-scale military actions tend to be suppressed during periods of internal military restructuring, the temptation to use external tension for internal cohesion also exists. The United States and its allies are likely to perceive this uncertainty as a threat and strengthen their defensive systems. Consequently, a paradox emerges where China’s internal military maintenance stimulates an external arms race. The Korean Peninsula cannot avoid indirect impacts. If the strategic focus of the Chinese military weakens, its crisis management capabilities in surrounding regions may also decline. When combined with the North Korean variable, this becomes a new factor of instability. The process of reorganizing into a control-centered military rather than a strong one increases uncertainty for neighboring countries rather than providing a sense of stability. Looking back at history, there have been many leaders who completely seized control of their militaries, but cases where those militaries remained strong for long are rare. A strong military stands on expertise and trust, not fear. Balance is maintained only when political power controls the military while allowing the autonomous space necessary for the military to prepare for war on its own. Where China stands now is both the pinnacle of power and an institutional testing ground. The more important question than whether the leadership succeeded in seizing the military is this: Does that military remain in a structure capable of fighting a modern war? The completion of control can, paradoxically, be the beginning of vulnerability. This is the point the international community must watch. 2026-01-26 09:43:24
  • OPINION: Xi Jinping reshapes military power structure through high-level purges
    OPINION: Xi Jinping reshapes military power structure through high-level purges SEOUL, January 26 (AJP) - Reports from Beijing on January 24 regarding the Chinese military indicate more than a routine personnel reshuffle. The announcements signal a profound realignment of the power structure within the Chinese Communist Party. The initiation of investigations into Zhang You-xia, vice chairman of the Central Military Commission (CMC), and Liu Zhen-li, chief of the Joint Staff Department, for "serious violations of discipline and law" targets two pillars at the apex of the People’s Liberation Army (PLA) command chain. The move has drawn immediate attention from diplomatic and security circles in New York, London, and Tokyo. The PLA serves as the ultimate guarantor of Communist Party rule, making its internal stability a critical factor in global security and Chinese domestic politics. For decades, the operating principle of Chinese politics has been that "the party commands the gun." However, the military has historically functioned as a complex ecosystem of revolutionary families, regional factions, and patronage networks. Even during the reform and opening-up era following Deng Xiaoping, the military maintained an independent sphere through economic interests and defense procurement. The anti-corruption campaign led by President Xi Jinping over the past decade has focused on dismantling these independent power centers. The previous downfalls of former CMC vice chairmen Xu Cai-hou and Guo Bo-xiong served as early indicators. Subsequent purges within the Rocket Force and equipment procurement divisions demonstrated that no department was exempt. The current investigations represent a symbolic peak in this process, sending a clear message that no individual, regardless of rank, is untouchable. Strategic analysts in Washington and on Wall Street are focusing on the structural consequences of these moves rather than the moral justifications. Reliability and continuity are essential assets in any military organization. When the top command is shaken, decision-making often becomes rigid, and mid-level officers may adopt a passive stance to avoid scrutiny. This "fear of approval" can delay sensitive matters such as defense procurement, the deployment of new power systems, and joint combat training. The leadership’s decision to proceed despite these risks suggests that long-term control is being prioritized over short-term efficiency. As China faces critical challenges including military modernization goals, the Taiwan issue, and strategic competition with the United States, the leadership appears determined to consolidate the command structure under a single point of authority. This creates a tension between political loyalty and combat readiness. While external observers question whether prioritizing loyalty weakens professional expertise, the perspective from Beijing is that corruption and factionalism inherently limit actual combat effectiveness, regardless of how modern the weaponry is. Consequently, anti-corruption efforts are framed not merely as a moral discourse but as a logic for rebuilding military strength. However, the process increases internal uncertainty and raises questions abroad regarding the stability of the Chinese military. With Chinese military activities in the East China Sea, South China Sea, and Taiwan Strait already serving as primary variables in international tension, these command changes affect the strategic calculations of neighboring countries. It remains unclear whether the military will become more aggressive once internal consolidation is complete or if it will show more restrained movement under centralized control to manage risks. Analysts suggest these events also reflect a generational shift. The era of the "Red Second Generation" military elite—descendants of revolutionary elders—is fading, replaced by a structure centered on personal loyalty networks. This aligns with broader shifts in Chinese politics toward higher power concentration and the weakening of collective leadership. The ongoing purge is likely to continue as the leadership aims for a "flawless military" ahead of the PLA’s centenary. However, historical precedent suggests that stability is rarely sustained through increased control alone. The long-term durability of the organization will likely depend on whether these measures are eventually balanced with institutionalized rules and predictable procedures. 2026-01-26 09:29:59