Journalist

Lee Hugh
  • South Koreas 2025 growth slows to 1% as GDP contracts in 4Q
    South Korea's 2025 growth slows to 1% as GDP contracts in 4Q SEOUL, January 22 (AJP) - South Korea’s economy expanded 1 percent last year, slowing sharply from the previous year as weak domestic demand, particularly in construction and investment, weighed on growth, according to central bank data released on Wednesday. The pace was about half of the 2 percent growth recorded a year earlier and fell well below the country’s estimated potential growth rate of 1.8 percent. Preliminary data from the Bank of Korea showed real gross domestic product contracted 0.3 percent in the fourth quarter of 2025 from the previous quarter. The result was 0.5 percentage points below the bank’s forecast of 0.2 percent growth and marked the weakest quarterly performance since the fourth quarter of 2022, when the economy shrank 0.4 percent. Quarterly growth has been volatile over the past two years. GDP expanded 1.2 percent in the first quarter of 2024, before slipping to a contraction of 0.2 percent in the second quarter, followed by modest growth of 0.1 percent in both the third and fourth quarters. Growth turned negative again in the first quarter of last year, falling 0.2 percent, then rebounded to 0.7 percent in the second quarter and 1.3 percent in the third, before returning to contraction in the final quarter. In the fourth quarter, private consumption rose 0.3 percent from the previous quarter, supported by services such as medical care, although spending on goods including passenger cars declined. Government consumption increased 0.6 percent, driven mainly by higher national health insurance benefits. Investment remained a drag on growth. Construction investment fell 3.9 percent as both building and civil engineering activity weakened, while facility investment declined 1.8 percent, led by lower spending on transport equipment such as automobiles. Exports dropped 2.1 percent, reflecting weaker shipments of automobiles, machinery and equipment. Imports fell 1.7 percent, largely due to declines in natural gas and automobile purchases. By industry, manufacturing output fell 1.5 percent, weighed down by transport equipment and machinery and equipment. Output in electricity, gas and water utilities plunged 9.2 percent, mainly due to lower electricity production, while construction activity contracted 5 percent. Agriculture, forestry and fisheries rose 4.6 percent, and services expanded 0.6 percent. Real gross domestic income increased 0.8 percent in the fourth quarter, outpacing the 0.3 percent contraction in real GDP. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-22 08:45:58
  • OPINION: Disorder from US-China rivalry demands Korea strategic policy
    OPINION: Disorder from US-China rivalry demands Korea strategic policy The era of disorder The global order is shaking. Disorder has become the new normal. Free trade is retreating before protectionism, conflict is no longer exceptional, and international law and institutions are increasingly ineffective. Globalization is fragmenting, geopolitical instability is weighing on growth, and global liquidity is flowing toward safe-haven assets such as gold. Multilateralism is fading as unilateralism rises. Multilateralism rests on shared rules and collective decision-making through international institutions. Unilateralism, by contrast, prioritizes national interest over cooperation and increasingly takes the form of hegemonic behavior. Like a typhoon rattling every branch, the force reshaping today’s global order is the struggle for dominance between the United States and China. China is challenging U.S. leadership, while Washington is determined to prevent Beijing’s ascent. The dynamic recalls the 1985 Plaza Accord, when Japan’s GDP approached 70 percent of the U.S. level and coordinated intervention helped curb its rise. Today, China’s GDP has reached nearly 77 percent of that of the United States, triggering a far more complex and prolonged contest. Unlike in the late 20th century, the two powers now appear more evenly matched. The United States is unlikely to subdue China quickly, and China is equally unlikely to force the United States to yield. Their rivalry will persist, embedding geopolitical risk into the global system. Four fronts in the U.S.-China rivalry The U.S.-China contest is unfolding across four main fronts. Understanding these arenas is essential for governments and businesses seeking to navigate an era of sustained uncertainty. First is resource dominance. China has prepared systematically for a long rivalry by tightening control over strategic materials essential to automobiles, robotics, defense equipment and semiconductors. It dominates the global rare-earth supply chain, from mining and refining to permanent magnet production, and exerts outsized influence over nonferrous metals critical to electric vehicles, data centers and renewable energy. As a result, the United States has become dependent on China not only for rare earths but also for lithium, aluminum and copper. When Washington uses tariffs as leverage, Beijing responds with resources. During President Donald Trump’s second term in 2025, China raised the prospect of restricting rare-earth exports in response to U.S. tariff pressure. The message was received. The U.S. government designated rare earths as strategic materials, backed MP Materials — its only rare-earth producer — with equity investment and price support, and accelerated efforts to secure supply chains through partnerships with Saudi Arabia and Australia. MP Materials now mines and refines at Mountain Pass, California, and produces neodymium magnets in Texas for U.S. manufacturers, including General Motors. Second is technology. The rivalry is increasingly visible in global marketplaces and at trade fairs such as CES and MWC. China is rapidly closing the gap in artificial intelligence, robotics, electric vehicles, autonomous driving and semiconductors, while the United States is striving to maintain its lead. According to the OECD, U.S. R&D spending reached US$955.6 billion in 2023, compared with China’s US$477.0 billion. The United States still leads in semiconductors and data-center capacity, but China is pushing aggressively to overtake it, seeking to engineer another “DeepSeek moment” that could reshape global perceptions. While the United States graduates about 820,000 science and technology majors annually, China produces tens of millions. When factoring in Chinese engineers trained in the United States and experienced in U.S. tech firms, it is far from certain that American technological leadership will remain unchallenged. China has already surpassed the United States in AI paper output and patent filings, underscoring the intensity of the competition. Third is currency. The United States continues to benefit from the dollar’s reserve-currency status, but China is actively challenging that privilege. The yuan’s share of global foreign-exchange markets has risen from virtually zero in the early 2000s to 8.6 percent in 2025, and its role in trade settlement and overseas investment is expanding. The yuan has effectively emerged as the fourth major reserve currency, following the dollar, euro and yen. To support this push, China launched the Cross-border Interbank Payment System (CIPS) in 2015 as an alternative to the U.S.-centered SWIFT network. As of 2025, CIPS had 193 participating banks and processed roughly US$170 billion in annual transactions. A parallel contest is unfolding in digital finance: The United States is promoting dollar-based stablecoins, while China is deploying a central bank digital currency to internationalize the yuan. Washington has moved to ban CBDC use domestically, while Beijing has prohibited stablecoins. Fourth is energy. While China considers rare-earth controls as leverage, the United States holds a powerful card in oil. As the world’s largest oil producer, the United States has elevated energy development to a strategic priority. Shale gas and oil have turned it into a net crude exporter, enhancing its ability to influence global supply and prices. Recent tensions involving Venezuela and Iran can be viewed through this lens. China relies heavily on energy imports from both countries, while Washington seeks to maintain energy dominance as a geopolitical tool. Energy competition overlaps with other fronts. It intersects with currency power through the “petrodollar” system, established after the collapse of the gold standard in the 1970s, when oil trade was anchored to the U.S. dollar. Today, as the world’s largest oil importer, China is pressing producers to accept yuan settlement. Energy is also tied to technology, as AI leadership depends on massive data centers, whose electricity demand still relies heavily on thermal power generation. South Korea’s response Disorder has become the global baseline. South Korea must adapt accordingly. First, it must strengthen defense and security systems. Economic stability cannot exist without security. As geopolitical rivalry intensifies, South Korea needs stronger domestic defense capabilities and reinforced military alliances. The United States is expanding defense spending, while China is reportedly building a massive military complex in Beijing. The geoeconomic rivalry shows no sign of abating. Second, South Korea must pursue diplomatic balance. While firmly aligned with the United States on security, it cannot afford to sever economic ties with China or emerging BRICS economies. A clear separation between security policy and economic strategy is essential. With nonaligned countries, active diplomacy is needed to prevent geopolitical tensions from spilling over into trade and investment. Third, South Korea should prepare for a prolonged U.S.-China rivalry by seizing opportunities in the global defense industry. Advancing the defense sector should become a national priority, supported by joint research between defense firms and private industries in AI, mobility and information technology. At the same time, policymakers must plan ahead to minimize economic shocks from sanctions, supply-chain disruptions and semiconductor-related restrictions. In an era defined by disorder, resilience — not prediction — will determine survival. * The author is the head of economic research at the Institute for Korean Economy and Industry. About the author: △Adjunct professor at Hanyang University △Former senior researcher at Samjong KPMG Economic Research Institute △Former senior researcher at Hyundai Research Institute * This article, published by Aju Business Daily, was edited by AJP. 2026-01-22 07:46:28
  • Editorial: When a mature democracy judges itself
    Editorial: When a mature democracy judges itself The sentencing of former South Korean Prime Minister Han Duck-soo to 23 years in prison marks more than the end of an individual career. It represents a moment of moral reckoning for a democracy confident enough to judge its own power at its peak. The court’s ruling did not merely describe the December 3 emergency decree as unconstitutional. It called it what it was: a “coup from above,” a form of insurrection carried out not by rebels on the margins but by those entrusted with the state itself. The phrase matters. History teaches us that democracies rarely fall from outside pressure alone; they are more often weakened when those in power convince themselves that necessity excuses lawlessness. What made this case exceptional was not the duration of the emergency rule—it lasted only hours—nor the absence of casualties. Rather, it was the context. South Korea today is not the fragile republic of the late 20th century. It is a consolidated democracy, a member of the global economic elite, and a nation whose citizens have repeatedly demonstrated civic courage. In such a country, the court argued, an abuse of constitutional authority carries greater, not lesser, weight. This reasoning reflects a principle often misunderstood outside democratic societies: the stronger the system, the heavier the responsibility borne by those who lead it. In authoritarian states, power is expected to override law. In democracies, power exists precisely because law restrains it. To violate that restraint is to strike at the foundation itself. The ruling also delivered a quieter, more unsettling message. Han Duck-soo was not a demagogue or a political firebrand. He was widely regarded as a stabilizer—a career technocrat shaped by nearly five decades of public service. That is precisely why his fall resonates. Experience, the court made clear, is not a shield. Longevity in office does not dilute accountability; it intensifies it. There is an undeniable tragedy here. According to testimony, senior officials urged restraint, warning that decades of public service should not end in disgrace. Those warnings went unheeded. What followed was not merely a legal violation but a moral failure: the choice to obey political momentum rather than constitutional duty. Yet the broader significance of the verdict lies beyond personal regret. By rejecting arguments of “symbolic,” “preventive,” or “warning” emergency powers—terms with no grounding in constitutional law—the court reaffirmed a central democratic truth: extraordinary authority cannot be improvised. In a democracy, there are no informal shortcuts around the constitution, no rhetorical devices that transform illegality into prudence. Equally important was the court’s recognition of the public. The absence of violence, it noted, was not evidence of restraint by those who ordered the emergency measures. It was the result of citizens who resisted peacefully, lawmakers who acted decisively, and soldiers and police officers who quietly refused unlawful commands. Democracy, in this telling, was preserved not by power, but by conscience. For South Korea, the sentence will reverberate far beyond this case. It establishes a precedent that future leaders cannot ignore: that even failed attempts to subvert constitutional order will be judged by their intent, not their outcome. This is how democracies protect themselves—not by assuming virtue in leadership, but by institutionalizing skepticism toward it. The lesson is neither vengeful nor triumphalist. It is sober. Democracies do not mature by avoiding crisis, but by confronting it within the rule of law. Painful accountability is not a sign of weakness; it is evidence of strength. In the end, the court’s message was unmistakable. In an advanced democracy, betrayal of constitutional order is not a historical echo—it is an immediate danger. And the price of that betrayal must be high enough to ensure it is never mistaken for an option again. South Korea has chosen to remember that lesson. Other democracies would do well to take note. 2026-01-21 20:56:19
  • Black Eagles to participate in air show in Saudi Arabia next month
    Black Eagles to participate in air show in Saudi Arabia next month SEOUL, January 21 (AJP) - South Korea's aerobatics team will participate in an air show in Saudi Arabia next month after a refueling stopover in Japan, the Air Force said Wednesday. The team will depart Wonju next Wednesday for the International Defense Industry Exhibition, stopping in Okinawa, Japan, to refuel and hold an exchange event with the Japan Air Self-Defense Force's aerobatics team Blue Impulse. Japan had abruptly refused to provide refueling support for the Black Eagles after initially agreeing to do so, raising issues over a T-50B aircraft conducting routine training near the easternmost islets of Dokdo. However, shuttle diplomacy between the two countries, revived after President Lee Jae Myung's visit earlier this month, has gained momentum, allowing the refueling in Japan to proceed as planned. After refueling in Japan, the Black Eagles will fly about 11,300 kilometers (7,020 miles) via Clark in the Philippines; Da Nang, Viet Nam; Chiang Mai, Thailand; Kolkata, Nagpur and Jamnagar, India; and Muscat, Oman, arriving Riyadh on Feb. 2. The Air Force will send approximately 120 personnel, along with nine T-50B aircraft and four C-130 transport planes. The team plans to showcase its "Mugunghwa" maneuver, inspired by South Korea's national flower, the rose of Sharon, symbolizing the country's perseverance and resilience. Col. Noh Nam-seon of the team said, "As this will be our first air show in the Middle East, we will deliver our best performance, drawing on the flight expertise and teamwork we have built over the years." 2026-01-21 17:54:23
  • I-CON City an experiment in creativity and growth — not urban development: Kessler
    'I-CON City an experiment in creativity and growth — not urban development': Kessler SEOUL, January 21 (AJP) - The ambitious experiment of blending high technology, research, entertainment and community life — while mixing American and Korean cultural elements — is made possible by one decisive factor: location. Cheongna, a 10-minute drive from South Korea’s main gateway at Incheon International Airport, provides the foundation for the $1.4 billion I-CON City project, according to the American developer behind the plan. “This is not just about housing. It’s not just about retirement, a museum or entertainment,” Richard C. Kessler, chairman and founder of U.S. hospitality firm The Kessler Collection, told AJP on Wednesday after signing a memorandum of understanding with the Incheon Metropolitan Government and Korea Land and Housing Corp. (LH). “It’s about all of those things coming together to create something you don’t find everywhere,” he said, describing I-CON City not as a conventional real estate development but as an evolving experiment that blends culture, research, entertainment and community. Founded in 1984, The Kessler Collection operates art-driven boutique hotels in cities such as Savannah and Orlando, with 11 properties across the U.S. After 55 years in real estate, Kessler said, the logic was simple. “Location, location, location,” he said. “This site has all three.” I-CON City, short for Incheon Contents City, also reflects the ambition to create a truly “iconic” destination in the capital region. “Creativity gives energy to everything,” the hotelier said. Officially named the Cheongna Culture and Tourism Complex, the project is being developed jointly by Incheon City, The Kessler Collection and LH, with completion targeted for 2031. The development will integrate cultural, tourism, business and residential functions, according to the city. “That’s really critical to what we are trying to build here,” Kessler said, citing the group’s experience with adaptive reuse projects such as the Plant Riverside District in Savannah, Georgia. There, a former power plant was transformed into a major tourist destination by preserving industrial elements such as generators and smokestacks, creating a space where history and cultural arts coexist. At the heart of I-CON City is the diversity of function. Rather than focusing on a single purpose such as housing or tourism, Kessler said the project aligns with Incheon’s broader push to develop a “K-Con Land” across Cheongna, Yeongjong Island — home to Incheon International Airport — and Songdo, linking multiple interests into one organically growing urban space. A large-scale park will anchor the development, occupying roughly 15 to 20 percent of the site. Kessler described Durumi Park as the “heart” of I-CON City, where research facilities, residential areas and entertainment venues intersect. “That park is the heartbeat of the entire project,” he said. “It’s where culture, technology, people and ideas come together — a place that can continue to evolve over time.” The name Durumi Park carries historical significance. Cheongna was once a natural wetland where red-crowned cranes — a protected natural monument in Korea — migrated and wintered before large-scale urban development reshaped the area. Although land reclamation eliminated much of the original habitat, the crane remains a powerful symbol of Cheongna’s ecological heritage. Nearby, the Starfield Cheongna complex — combining a domed stadium with large-scale retail and leisure facilities — is under construction and scheduled for completion in 2027. Kessler emphasized that I-CON City is designed to attract an international audience, particularly from across Asia. Research-oriented office space, a 5,000-seat entertainment complex and an outdoor amphitheater are intended to draw visitors well beyond the local community. “This is not a local show,” he said. “It’s something people will travel to experience.” Another distinctive feature is the project’s approach to senior housing. Rather than viewing retirement as withdrawal, Kessler said the development aims to attract experienced professionals and global talent who can actively contribute to research, cultural programming and community life. “There’s a lot of wisdom in that group,” he said. “And that wisdom can add real depth to this project.” Storytelling will also play a central role. Drawing on the Kessler Collection’s experience with themed hotels and curated cultural spaces in the U.S., Kessler said I-CON City will highlight narratives unique to Korea — including K-pop, shipbuilding, advanced manufacturing and the country’s modern history. “K-pop is one story the world still doesn’t fully understand,” he said. “There are many others — technology, shipbuilding, creativity — that Korea can tell in a very compelling way.” One centerpiece is a planned concert hall featuring hologram performances by past and present stars on a rotating basis. For fans, the show would not depend on comeback tours or overseas schedules — it would, in theory, always be on. Ultimately, Kessler said, the goal is for I-CON City to serve as a model for future developments — flexible, adaptive and open-ended. “This is an experiment,” he said. “But it’s the kind of experiment that can uncover opportunities developers may not have seen before.” 2026-01-21 17:48:53
  • Koreanness, the answer BTS found for its return
    Koreanness, the answer BTS found for its return SEOUL, January 21 (AJP) - As BTS prepares to return as a full group after nearly four years, the question surrounding the comeback has never really been whether it would make an impact, but how the group would choose to reappear. The answer, it seems, is rooted in something familiar — and distinctly Korean. BTS will release its fifth full-length album, “ARIRANG,” on March 20, marking its first full reunion in three years and nine months. Around the album, a series of details has drawn attention for pointing in the same direction: a return framed by Korean sentiment, symbols and space. The group is also reportedly planning a three-day performance at the Gwanghwamun Square from March 20 to 22 to coincide with the album’s release, though details have yet to be officially confirmed. Gwanghwamun Square occupies a central position in Seoul’s historical axis, linking the modern city to Gyeongbokgung Palace, the main royal palace of the Joseon dynasty, and extending symbolically toward Sungnyemun Gate, the former southern gateway to the capital. The square is home to statues of King Sejong the Great, creator of the Korean alphabet, and Admiral Yi Sun-sin, a national hero revered for his leadership in times of crisis. Together, these landmarks and figures anchor Gwanghwamun as a space where Korea’s political history, cultural identity and civic life converge — a place shaped by continuity, disruption and restoration across centuries. According to South Korea’s Cultural Heritage Administration, BTS’s agency HYBE has received conditional approval to use Gyeongbokgung Palace and Sungnyemun Gate for filming. While no official confirmation has been made about whether filming will actually take place — or in what form — the possibility alone has sparked interest. These are not the kinds of locations typically associated with pop productions. Gyeongbokgung Palace, built in 1395, was the main royal palace of the Joseon dynasty, while Sungnyemun Gate, long known internationally as Namdaemun, once marked the southern entrance to the capital. Both sites are deeply woven into Korea’s historical landscape, carrying layers of memory shaped by destruction, restoration and daily coexistence with modern city life. The album title adds another layer. “Arirang” is one of Korea’s most widely recognized folk songs, passed down through generations in countless regional versions. With no single composer or definitive form, the song has endured precisely because it has remained open — absorbing different emotions and meanings over time. In a statement, HYBE described ARIRANG as an album that reflects BTS’s identity and the emotions they wish to share with fans, noting themes of longing and deep connection. The agency said the group naturally turned toward its roots as it prepared for its return. Taken together, the choices surrounding the comeback suggest a mood that feels less about spectacle and more about grounding. Rather than chasing something new or unfamiliar, BTS appears to be leaning into symbols that already carry shared meaning — places and melodies that resonate without explanation. For a group that has spent much of the past decade operating on a global stage, the emphasis on Koreanness stands out not as a retreat, but as a point of reference. Gyeongbokgung, Sungnyemun and Arirang are not owned by any single era or creator. Their meanings have been shaped collectively, through repetition and memory, and continue to evolve. As anticipation builds ahead of the album’s release, details about promotional plans remain limited. HYBE has not confirmed how the heritage sites might be used, nor what visual concepts will accompany the album. What is becoming clear, however, is the tone BTS has chosen for its return. In a moment when expectations are high and attention is intense, the group appears to have found its answer not in scale or novelty, but in something closer to home — the familiar pull of Korean roots. 2026-01-21 17:48:13
  • KOSPI closes higher as won strengthens amid mixed Asian markets
    KOSPI closes higher as won strengthens amid mixed Asian markets SEOUL, January 21 (AJP) - Asian stock markets closed mixed on Wednesday as U.S. tariff threats rattled investors, with signs of a broader "sell America" trend adding to volatility across the region. In Seoul, the KOSPI swung more than 100 points before finishing at 4,909.93, up 0.49 percent from the previous session, while the KOSDAQ dropped 2.57 percent to 951.29. Individuals offloaded a net 996.5 billion won ($675 million), while foreign investors and institutions purchased net amounts of 439.5 billion won and 321.6 billion won, respectively. Among large-cap stocks, Samsung Electronics rose 2.96 percent to 149,500 won, while SK Hynix fell 0.40 percent to 740,000 won, Samsung Biologics dropped 2.45 percent to 1,873,000 won, Samsung Life Insurance slipped 0.29 percent to 174,700 won, and LG Energy Solution declined 2.11 percent to 394,500 won. Auto-related stocks traded higher, led by Hyundai Motor, which surged 14.61 percent to 549,000 won, continuing its upward momentum. Kia also gained 5 percent to 172,100 won. Defense and aerospace stocks also traded higher, with Hanwha Aerospace up 0.46 percent at 1,315,000 won. Shipbuilding-related shares weakened, with HD Hyundai Heavy Industries falling 1.56 percent to 631,000 won and Hanwha Ocean sliding 3.81 percent to 141,500 won. The won, which traded at 1,481.4 per dollar earlier in the morning, strengthened to 1,469.40 later in the day, buoyed by remarks from President Lee Jae-myung, who said he would seek to ease concerns over foreign-exchange volatility. Elsewhere in Asia, Japanese shares pulled back, with the Nikkei 225 Index down 0.41 percent to close at 52,774.64, as investors weighed political uncertainty due to a looming snap election along with tax relief proposals as an election sweetener. 2026-01-21 17:27:33
  • Japanese bond yields trigger global tantrum, South Korea most sensitive
    Japanese bond yields trigger global tantrum, South Korea most sensitive SEOUL, Jan 21 (AJP) - Major sovereign bond yields, including South Korean treasuries, jumped on Tuesday after a sharp surge in Japanese government bond yields — bringing the elephant in the room back into focus: the massive yen carry trade. The benchmark 10-year JGB yield closed up 7 basis points at 2.34 percent, its highest level in nearly three decades. The move quickly spilled over abroad, pushing the U.S. 10-year Treasury yield up 7.5 basis points to 4.295 percent and Australia’s 10-year yield up 6.9 basis points to 4.799 percent. South Korea proved particularly sensitive. The 10-year Korean government bond yield surged 8.8 basis points to 3.653 percent, marking its highest level in almost two years. Japan has long functioned as a global liquidity provider, with near-zero borrowing costs encouraging yen-funded carry trades for decades. The recent rise in JGB yields is now prompting capital repatriation, as Japanese investors pull funds back home to capture higher domestic returns. Because the yen serves as a major funding and reserve currency, this reversal has acted as a destabilizing force for global bond markets. Notably, the latest spike in yields was driven less by monetary policy than by fiscal concerns. The Bank of Japan is set to announce its interest rate decision on Friday, and the advanced trigger came from political developments surrounding Prime Minister Sanae Takaichi’s policy agenda. On Tuesday, Takaichi announced plans to dissolve parliament on Jan. 23 and call snap elections for Feb. 8. Although the ruling coalition of the Liberal Democratic Party and Nippon Ishin no Kai already controls 233 seats, she is seeking at least 240 seats to consolidate legislative dominance. Markets reacted sharply to her populist stimulus pledges, particularly proposals to cut consumption taxes on food and beverages to 8 percent — a move estimated to create a 5 trillion yen ($31.6 billion) revenue shortfall — without clear funding measures. Bond yields retreated after Takaichi later pledged that “there will be no additional debt issuance,” with the 10-year JGB yield falling about 8 basis points by Wednesday morning. However, skepticism remains, as yields continue to hover above 2.3 percent and investors question whether stimulus can be financed without new borrowing. Demand for Japanese debt has already weakened. A recent 20-year JGB auction recorded a record-low bid-to-cover ratio, underscoring investor caution. The rise in government yields has filtered through to consumer lending. As of Wednesday, 10-year fixed mortgage rates at Japan’s megabanks — Mizuho, MUFG and SMBC — were approaching 3.8 percent, nearly double the roughly 2 percent ceiling seen a year earlier. Analysts have compared the episode to the U.K.’s 2022 “Truss Shock,” when unfunded tax cuts proposed by then–Prime Minister Liz Truss sent 10-year gilt yields soaring from about 3.5 percent to 4.5 percent in less than a week. After Japanese Finance Minister Satsuki Katayama urged markets to “maintain calm,” the 10-year JGB yield slipped further, down 8.6 basis points to 2.29 percent. The recovery in Korea has lagged. The 10-year Korean yield stood at 3.619 percent on Wednesday morning, still up 3.4 basis points and failing to fully reverse the previous day’s sharp jump. Part of the drag stemmed from Korea's own fiscal stimulus agenda. On Tuesday, President Lee Jae-myung mentioned the possibility of a supplementary budget, instructing Culture Minister Choi Hwi-young to review potential increases in arts and culture spending. Although Lee later clarified at a Wednesday press conference that there would be “no reckless supplementary budget,” the initial comment had already unsettled the bond market. U.S. Treasury yields also eased slightly, with the 10-year yield ending Wednesday at 4.275 percent, down 2 basis points, but still short of a full recovery. Persistent geopolitical risks — including Washington’s threat to impose a 10 percent tariff on countries opposing its push to acquire Greenland — continued to weigh on sentiment. Caution urged over expansionary fiscal trends While analysts say fears of a systemic shock in South Korea are overstated, they warn that a broader global tilt toward fiscal expansion among major currency issuers poses ongoing risks. “Mentioning a supplementary budget in January is unusual, but South Korea is likely to exceed its tax revenue targets this year, making large-scale bond issuance unlikely,” said Kang Seung-won, a researcher at NH Securities. Kang added that a projected 30 percent increase in earnings among KOSPI and KOSDAQ-listed companies should help buffer the domestic bond market. Still, expansionary fiscal policies elsewhere remain a concern. “We are seeing a recurring pattern where fiscal concerns push up bond yields and market rates, which then weigh on currencies,” said Kwon Ah-min, another researcher at NH Securities. Kwon pointed to Japan’s record 122.3 trillion yen budget for fiscal 2026 — with 29.6 trillion yen expected to be financed through debt — as a key risk factor. “Rising bond issuance among major economies remains a volatile variable for global financial markets,” she said. 2026-01-21 17:20:01
  • Samsung Biologics becomes first Korean drugmaker to join 2 trillion won income club
    Samsung Biologics becomes first Korean drugmaker to join 2 trillion won income club SEOUL, January 21 (AJP) - Samsung Biologics on Wednesday posted record annual operating profit for 2025, becoming the first pharmaceutical and biotechnology company in South Korea to surpass the 2 trillion won threshold. The contract drug manufacturing giant posted an operating profit of 2.07 trillion won ($1.4 billion) for 2025, soaring 56.6 percent from a year earlier, according to a regulatory filing released Wednesday. Revenue climbed 30.3 percent to 4.55 trillion won, while net profit jumped 55.2 percent to 1.61 trillion won. Fourth-quarter operating profit reached 528.3 billion won, up 67.8 percent year-on-year, driven by full-capacity operations across all four manufacturing plants in Incheon. Quarterly revenue stood at 1.29 trillion won. The company attributed its robust performance to the ramp-up of Plant 4 operations, stable utilization of Plants 1 through 3, and favorable foreign exchange effects. Samsung Biologics has served over 110 clients, including 17 of the world's top 20 pharmaceutical companies. "2025 has been a year of steady progress for Samsung Biologics as we expanded collaboration with both pharma and biotech companies, supported by our focus on operational and quality excellence," said John Rim, CEO of Samsung Biologics. The Incheon-based firm made strategic moves throughout 2025 to bolster its global footprint, including acquiring a manufacturing facility in Rockville, Maryland, securing land for a third bio campus, and completing the construction of Plant 5. Cumulative contract value has exceeded $21.2 billion since its founding in 2011. Samsung Biologics forecast revenue growth of 15 to 20 percent for 2026, excluding contributions from the Rockville facility acquisition, which remains pending regulatory approval. The company maintained a solid financial position with total assets of 11.06 trillion won and a debt-to-equity ratio of 48.4 percent at year-end. It achieved the 2 trillion won operating profit milestone just two years after becoming the first Korean drugmaker to post annual operating profit exceeding 1 trillion won in 2023. Shares of Samsung Biologics closed Wednesday 1.35 percent lower at 1,894,000 won per stock. The regulatory filing came after market closure. 2026-01-21 17:19:50
  • Seoul weighs weekly half-price movie tickets to lure audiences back to cinemas
    Seoul weighs weekly half-price movie tickets to lure audiences back to cinemas SEOUL, January 21 (AJP) - South Korea is considering offering half-priced movie tickets and free admission to royal palaces every Wednesday, instead of once a month, as part of a broader effort to revive cultural consumption — though doubts remain over whether the move can rescue a struggling cinema industry. The Ministry of Culture, Sports and Tourism said Tuesday it plans to expand “Culture Day,” currently held on the last Wednesday of each month, to every Wednesday. The timing of the change has not yet been finalized. Since its launch in 2014, Culture Day has allowed the public to visit national heritage sites such as Changgyeong Palace and Deoksu Palace for free and receive discounts at movie theaters and other cultural venues. Under the program, major cinema chains including CGV, Lotte Cinema and Megabox have offered 2D movie tickets priced at 7,000 won — less than half the average ticket price of about 15,000 won — for screenings between 5 p.m. and 9 p.m. While roughly one-third of moviegoers used the discount in 2014, participation surged to 85 percent by 2024, highlighting how deeply audiences have come to rely on price incentives. The proposed expansion comes as alarm grows over the state of South Korea’s film industry, which has been hit hard by the rapid shift toward streaming platforms. “The uncomfortable truth is that the film industry has practically collapsed,” said Kim Han-min, director of The Admiral: Roaring Currents, at a film forum hosted by the Korean Film Council and the National Assembly’s Culture Committee in January 2024. Director Kim Sung-soo echoed that assessment at the 2025 Mise-en-scène Short Film Festival. “If I had to describe it in one word: collapse,” he said. “Korean films simply aren’t being made.” “There used to be 50 to 60 commercial features shooting at any given time,” said one production executive. “Now it feels like barely half that.” Industry observers say the decline in theater attendance reflects deeper structural problems in Korean filmmaking. “When films like Avatar or Zootopia 2 succeed, it’s not a crisis of theaters — it’s a crisis of Korean cinema,” said one film distributor. Domestic audiences have continued to reward strong local titles, including The Roundup series, 12.12: The Day (2023) and Exhuma (2024), during the post-pandemic recovery period. Yet not a single Korean film surpassed 10 million viewers last year, an unprecedented result except for 2021, when theaters were largely shuttered by social distancing rules. Globally, the film market has recovered to roughly 80 percent of pre-pandemic levels, but Korea’s remains “stuck at the bottom,” industry insiders say. The Culture Day expansion has drawn support from lawmakers, though many describe it as only a temporary remedy. Rep. Lee Ki-heon of the ruling Democratic Party said the proposal demonstrates “a strong and proactive will by the government to revive an industry on the verge of collapse by lowering barriers to cultural consumption.” He added that consistent pricing incentives could help “rebuild the habit of moviegoing.” However, Lee cautioned that discounts alone cannot address deeper issues. “The crisis in the film industry stems not only from financial burdens, but also from a shortage of compelling content,” he said. Progressive Party lawmaker Son Sol called the measure “necessary and timely” to expand cultural access, but stressed that participation by private businesses — which operate nearly all theaters — is essential. “Public enthusiasm is high, but the system relies on voluntary participation,” she said. “The government must actively engage theater chains and production companies to sustain it.” Son also warned of a “vicious cycle” in which falling attendance has reduced Film Development Fund revenues, weakening support for emerging directors and film workers. “Korea’s global cinematic standing is at risk,” she said. Rep. Jung Yeon-wook of the opposition People Power Party supported the intent of the policy but criticized its rollout as rushed. “Without financial support, it could place undue burdens on private theaters,” he said. “Without proper consultation, it risks becoming a well-meaning but hollow gesture.” As the government collects public feedback on the proposed decree through Feb. 28, questions remain over whether cheaper tickets can truly reignite a film ecosystem facing structural decline. 2026-01-21 15:58:18