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[[AI Analysis]] Economy outweighs politics in South Korea, New Year polls show SEOUL, January 01 (AJP) -New Year polls show economic anxiety outweighs political concerns as livelihoods come under strain in South Korea. Across multiple polls released at the turn of the year, voters expressed more anxiety than optimism — not in the form of crisis fear, but as a growing sense of fatigue from prolonged cost pressures and stalled improvement in daily life. Roughly 45–50 percent of respondents said the economy would worsen this year, while only the mid-30 percent range expected improvement. Notably, those predicting a sharp deterioration remained limited to around 10 percent, suggesting the public is not bracing for collapse but rather for continued stagnation under high prices and tight financial conditions. This pattern reflects what analysts describe as a widening gap between macro indicators and lived experience. Inflation has moderated on paper, but household budgets remain strained, reinforcing a sense that economic recovery has yet to reach everyday life. Economic performance outweighs political alignment Presidential approval ratings in several surveys hovered in the mid-50 percent range, with negative evaluations in the mid-30s to low-40s. Yet the reasons cited by respondents point less to ideology or foreign policy than to bread-and-butter concerns such as prices, jobs and housing costs. In other words, political judgment is increasingly being filtered through economic outcomes. Policy effectiveness — not rhetoric — has become the dominant yardstick. This shift is also visible in party support. Rather than a clear advantage for either camp, surveys show a notable expansion of independents, with 25–30 percent of respondents saying they support no party. In some polls, the non-aligned group rivals or exceeds individual party support. The rise of this bloc suggests not apathy, but caution: voters appear unwilling to commit politically until they see tangible improvements in daily life. Seoul mayoral race mirrors broader sentiment The same pattern emerges in polling on the Seoul mayoral race. Hypothetical two-way matchups show margins largely within the statistical error range, with leading candidates clustered between the high-30s and low-40s. Equally striking is the share of respondents answering “undecided” or “no preferred candidate,” which reaches around 20 percent in some surveys. The data suggest that Seoul voters are withholding judgment rather than rallying behind partisan identities. Age-group breakdowns reinforce this view. Among voters in their 20s and 30s, pessimism about the economy is particularly strong, and political engagement is more conditional. Many in this group say politics has limited power to improve their lives, reflecting concerns over housing affordability, job stability and long-term mobility. Another notable shift is the weakening of the traditional “government evaluation” frame. In several surveys, more respondents prioritized policy outcomes over assigning political responsibility. The underlying question has changed from who is to blame to what actually works. Experts interpret this as accumulated political fatigue combined with prolonged economic pressure. As inflation remains sticky and real purchasing power recovers slowly, public patience with symbolic politics has thinned. Messaging centered on ideology or confrontation is proving less persuasive than concrete, measurable results. Taken together, the New Year surveys amount to more than a snapshot of approval ratings. They form a collective portrait of economic sentiment — cautious, fatigued and pragmatic. The tight race seen in Seoul mayoral polling fits this broader picture. Voters are not rallying around personalities or camps, but reserving judgment until they see credible plans and execution on housing, costs of living and urban management. For policymakers, the challenge ahead is no longer how to win the political narrative, but how to translate policy into improvements people can actually feel. 2026-01-01 18:33:35
South Korea welcomes first babies of 2026 amid signs of fragile fertility recovery SEOUL, January 01 (AJP) - South Korea marked the start of the Year of the Red Horse with the birth of its first newborns at the stroke of midnight on Jan. 1, 2026, as two baby girls were delivered simultaneously at a maternity hospital in Seoul. According to CHA University Gangnam Medical Center, the two girls were born at exactly 12:00 a.m. to mothers aged 37, both in stable condition. One baby, weighing 2.88 kilograms, was delivered by cesarean section, while the other, weighing 3.42 kilograms, was born naturally. Both newborns and their mothers were reported to be healthy. One of the babies, nicknamed “Jjaem,” is the first child of a couple married for four years. Her father, Yoon Sung-min, 38, said he felt especially joyful that his daughter arrived at the very beginning of the new year. “I hope she grows up happy and enjoys life, just like her nickname suggests,” he said with a smile. The other newborn, nicknamed “Dori,” is the second child of her parents. Her father, Jung Dong-gyu, 36, said he had expected a late-December birth but was grateful that both mother and child held on until the new year. “It feels meaningful that she became one of the first babies of 2026,” he said, adding that he hopes more children will be born around her so she can grow up with many friends. Separately, another baby girl was born under dramatic circumstances later that day aboard a fire-service helicopter in the skies over Jeju Island. According to the Jeju Fire Safety Headquarters, emergency services received a request at 11:30 a.m. from an obstetrics clinic in Jeju City to transport a woman in her 30s who was experiencing premature rupture of membranes at 30 weeks of pregnancy. A rescue helicopter was dispatched, but during the flight to a mainland hospital, the woman went into labor and delivered the baby at 1:17 p.m. Both the mother and newborn were reported to be in stable condition. Officials described the airborne delivery as a rare case, made possible by the swift response of emergency personnel. The symbolic New Year births come as South Korea shows tentative signs of a rebound in childbirth after years of record-low fertility. The country’s total fertility rate — the average number of children a woman is expected to have in her lifetime — stood at about 0.80 for the January–October period last year. If the trend holds through year-end, it would mark the first return to the 0.8 range in four years. Korea’s fertility rate fell to 0.81 in 2021, dropped further to 0.78 in 2022 and hit a record low of 0.72 in 2023, before edging up to 0.75 in 2024 — the first rebound in nine years. Government and research projections suggest the recent uptick may continue. The National Assembly Budget Office estimates the fertility rate at 0.80 last year and 0.90 this year, with a gradual rise to 0.92 by 2045. It attributes the improvement to a rebound in marriages delayed during the COVID-19 pandemic, an increase in the population of women in their 30s, and gradually improving perceptions toward marriage and childbirth. Official population projections also point to a recovery trend. Under the medium scenario, the fertility rate is expected to bottom out at 0.65 before rising to 0.68 this year, 0.71 in 2027 and 0.75 in 2028. A more optimistic scenario sees the figure climbing from 0.75 to 0.80 this year and 0.84 by 2027. Public attitudes appear to be shifting as well. A survey by the Presidential Committee on Ageing Society and Population Policy showed that the share of people expressing willingness to marry rose from 61.0 percent in March 2024 to 65.2 percent a year later. The proportion saying they believe children are necessary increased from 61.1 percent to 70.9 percent over the same period. Still, the country's fertility rate remains well below the OECD average of 1.43 in 2023 and far under the replacement level of 2.1 needed to sustain the population. 2026-01-01 17:22:26
Samsung Display rolls out 360Hz QD-OLED with new pixel structure as high-end monitor competition intensifies SEOUL, January 01 (AJP) - Samsung Display has begun mass supply of a 34-inch QD-OLED monitor panel featuring a newly designed “V-Stripe” pixel structure, as panel makers race to differentiate performance in the premium gaming and productivity market. The company said it started shipping the panels in December to seven global manufacturers, including ASUS, MSI and Gigabyte. The model supports a 21:9 ultra-wide aspect ratio, a 360Hz refresh rate and peak brightness of 1,300 nits. The V-Stripe layout arranges red, green and blue sub-pixels vertically rather than in the conventional triangular configuration used in existing QD-OLED panels. Samsung Display says the redesign improves edge clarity for text, addressing demand from users involved in coding, document editing and content creation. High-refresh-rate performance on ultra-wide displays typically poses challenges due to increased pixel counts, heat generation and the need for uniform signal timing across the panel. The company said it improved material efficiency and panel design to mitigate luminance loss and thermal load during high-speed operation. The new panel will appear in several monitor models to be unveiled at CES 2026 in Las Vegas. Samsung Display will also showcase the technology at a private booth at the Encore at Wynn hotel during the event. According to market researcher Omdia, products using self-emissive displays such as OLED are expected to account for 27 percent of premium monitors priced above $500 in 2026, up from 14 percent in 2024, reflecting a continued shift away from LCD. Samsung Display is projected to hold more than 75 percent of the OLED monitor panel market next year, with estimated shipments of 2.5 million units. 2026-01-01 15:47:31
Half of Koreans expect economy to worsen in 2026, inflation tops concern: poll SEOUL, January 01 (AJP) -About half of South Koreans believe economic conditions will deteriorate in 2026, with inflation emerging as the most urgent concern, even as many remain optimistic that the stock market’s rally can extend further, a survey showed Thursday. A poll conducted by Realmeter on behalf of Energy Economy News found that 46.4 percent of respondents expect the economy next year to be “worse than now,” compared with 33.8 percent who believe conditions will improve. The pessimistic view outweighed optimism by 12.6 percentage points, beyond the margin of error. Pessimism was strongest among the young, reflecting the anxieties over job and income insecurity of the younger cohort. Respondents in their 50s were relatively upbeat, with 45.8 percent expecting improvement versus 38.8 percent anticipating deterioration. In contrast, pessimism was strongest among those aged 18–29 (56.8 percent) and those 70 or older (55.3 percent). When asked which economic issue the government should prioritize in 2026, respondents most frequently cited price stability, at 29.4 percent, reflecting continued pressure on household budgets from elevated living costs. Other priorities followed at a distance: easing corporate regulations and boosting investment (15.9 percent), strengthening export competitiveness and nurturing new industries (12.8 percent), expanding jobs and employment (12.0 percent), and reducing household debt and interest burdens (10.9 percent). Support for the self-employed and small businesses (8.3 percent) and assistance for youth and future generations (7.7 percent) ranked lower. Political orientation also played a decisive role. Among conservatives, 71.1 percent said the economy would worsen, while 59.0 percent of progressives expected improvement. Centrists were more divided, with pessimistic views (42.7 percent) narrowly exceeding optimistic ones (34.4 percent). Despite the downbeat economic outlook, views on the stock market were more balanced. When asked whether the benchmark KOSPI index could reach 5,000 points in 2026, 48.7 percent said it was possible, exceeding the 42.5 percent who said it was unlikely. By age group, optimism was highest among people in their 40s (55.1 percent), 50s (57.1 percent) and 60s (52.6 percent), while respondents aged 70 or older were the most pessimistic, with 54.4 percent doubting the possibility of a KOSPI 5,000 era. Ideological divides again surfaced, with 73.0 percent of progressives saying the index could reach 5,000, compared with 60.4 percent of conservatives who said it could not. Centrists were split, with 48.2 percent optimistic and 42.5 percent pessimistic. The survey was conducted on Dec. 29–30, 2025, among 1,025 adults aged 18 or older nationwide using automated random-digit dialing (RDD) of mobile phones. The margin of error is ±3.1 percentage points at the 95 percent confidence level. Results were weighted by gender, age and region based on October 2025 resident registration data. 2026-01-01 15:38:50
Son of Mirae Asset founder moves to core Mirae unit to renew speculation on generational shift SEOUL, January 01 (AJP) -Park Jun-beom, the eldest son of Mirae Asset Chairman Park Hyun-joo, has moved from Mirae Asset Venture Investment to Mirae Asset Securities, the core unit of South Korea's top asset managing conglomerate, renewing speculation about a generational shift under making despite the founder's long-stated opposition to hereditary succession. Mirae Asset Securities said Thursday that Park, previously a senior investment reviewer at Mirae Asset Venture Investment, was reassigned through a personnel reshuffle the previous day. Beginning this year, he will work in the proprietary investment (PI) division, which focuses on investments in new-growth industries and innovative companies. Born in 1993, Park majored in economics at Washington University in St. Louis. After graduating, he worked as a project manager at game developer Netmarble starting in 2020. He joined Mirae Asset Venture Investment in 2022, where he led startup deal sourcing and investment execution, including a secondary-share investment in apparel brand Andar, according to industry sources. His move to Mirae Asset Securities — widely regarded as the group’s core operating arm — has fueled market speculation that preparations for a future management succession may be gaining momentum. A Mirae Asset Securities official, however, downplayed such interpretations, saying the reassignment reflects Park’s professional background rather than a governance shift. “His experience as a venture investor focused on long-term investments in innovative companies will be useful for proprietary investment activities,” the official said, adding that Mirae Asset maintains a professional management system and that the chairman’s children are not expected to take board positions.Speculation over succession has been floated after change in the ownership structure of Mirae Asset Consulting, the holding company at the top of the group’s governance chain, two years ago. Regulatory filings placed Park Jun-beom as the second-largest shareholder of Mirae Asset Consulting after receiving 25,884 shares, or 3.33 percent, from his aunt Park Jung-sun through a gift transaction. His stake rose from 8.19 percent to 11.52 percent, second only to Chairman Park Hyun-joo’s 48.63 percent. The transfer pushed Park’s mother, Kim Mi-kyung, to third place with a 10.24 percent stake. His sisters, Park Ha-min and Park Eun-min, each hold 8.19 percent, while cousins Song Sung-won and Song Ha-kyung hold 1.37 percent each. Mirae Asset Consulting sits at the apex of the group’s ownership structure, which runs through Mirae Asset Global Investments, Mirae Asset Capital, Mirae Asset Securities and Mirae Asset Life Insurance. The group has been making meaningful strides on the global market. In September, the company's global exchange-traded fund assets have surpassed 250 trillion won ($179.2 billion), reaching 254 trillion won. Its ETFs are now operated across multiple markets, including South Korea, the United States, Canada, Australia and Japan, making Mirae Asset the world’s 12th-largest ETF provider by assets. Mirae Asset’s global ETF assets have grown at an average annual rate of 37 percent over the past decade, nearly double the global industry average of about 20 percent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-01 15:14:47
Kim Jong Un stresses internal unity, honors troops sent to Russia in New Year address SEOUL, January 01 (AJP) - North Korean leader Kim Jong Un used his New Year speech to emphasize domestic cohesion and praise soldiers deployed to Russia, avoiding any direct message toward South Korea or the United States. According to the Korean Central News Agency, Kim delivered the remarks late Wednesday at a large celebration held at Pyongyang’s May Day Stadium. He said North Korea’s drive for “comprehensive socialist development” had successfully passed its first stage, crediting both central and provincial regions for propelling nationwide progress. Kim devoted a significant portion of the speech to the Korean People’s Army, commending troops who endured “heavy hardships” and achieved “remarkable results” on what he described as front lines of construction and change. He said their “noble sacrifices” would be remembered “for generations,” in an apparent reference to forces dispatched to support Russia. He also highlighted workers, agricultural laborers and the women’s national football team, which won last year’s FIFA U-17 Women’s World Cup, describing them as key contributors to the country’s direction over the past year. Calling on the public to remain faithful to socialism and “people-first” principles, Kim urged citizens to strengthen unity ahead of the ruling Workers’ Party’s Ninth Congress, which is expected to outline major policy directions for the next five years. KCNA said Kim’s speech contained no references to the United States or South Korea, signaling a focus on tightening internal discipline rather than foreign policy messaging. Kim attended the event with his wife, Ri Sol Ju, and their daughter, Ju Ae, who sat beside him during the performance. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-01 15:01:51
South Korean defense minister conducts New Year's Day command flight SEOUL, January 01 (AJP) -South Korean Defense Minister Ahn Gyu-back conducted a command flight on New Year’s Day under escort by domestically produced fighter jets in a symbolic move to demonstrate military readiness across the Korean Peninsula, the Ministry of National Defense said Thursday. Ahn boarded an Air Force E-737 Peace Eye airborne early warning and control aircraft before dawn for what the ministry described as an “airborne command post” operation. Six Air Force fighter jets escorted the flight, including the KF-21, FA-50 and TA-50. It marked the first time domestically produced aircraft have been deployed to escort a command flight, the ministry said. During the mission, Ahn held a series of command-line briefings with frontline commanders to assess operational readiness. Those briefed included the captain of the Navy’s Gwanggaeto the Great destroyer operating in the East Sea, an Air Force flight leader responsible for aerial patrol and escort missions, the battalion commander of the Marine Corps’ 6th Brigade defending a front-line contact area, and the Army commander overseeing a guard post in the 22nd Division. Ahn later spoke by secure line with Joint Chiefs of Staff Chairman Jin Young-seung, stressing the importance of maintaining a strong state of readiness and a fully prepared operational posture. During the calls, the defense minister checked for any unusual developments along the front lines and in key operational areas. He thanked service members for their dedication, saying, “Thanks to your commitment, our people can welcome the New Year in peace,” and urged commanders to maintain a gap-free readiness posture throughout the year. Ahn also underscored the importance of self-reliant defense capabilities, saying, “Only when we have the strength to protect ourselves can sustainable peace be possible,” adding that the military must “proactively prepare for the future security environment based on our own defense capabilities.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-01 14:51:15
Korea bets on AI-driven productivity as new engine of growth in 2026 SEOUL, January 01 (AJP) -South Korea is entering 2026 with a renewed push to reset its growth model around artificial intelligence, as the government and corporate leaders converge on AI-led productivity and solution-based innovation as the country’s next economic engine, according to New Year's addresses by key officials from the government and private sector. In his New Year’s address Thursday, President Lee Jae Myung raised urgency on a national transition beyond recovery and incremental growth toward structural change powered by technology. “Now we are only at the starting line,” Lee said, “Because we started late, we must now run faster.” He pledged to make 2026 “the first year of a great leap forward,” calling for a fundamental shift in the country’s growth paradigm. Lee stressed that Korea can no longer rely on familiar development paths, saying the country must “completely change the growth paradigm” and move onto “a new road of transformation.” Growth, he said, should be driven not by concentration or scale alone, but by innovation, decentralization and new engines of productivity. At the core of that transformation is artificial intelligence, which policymakers increasingly view as essential infrastructure rather than a standalone technology. Deputy Prime Minister and Science and ICT Minister Bae Kyung-hoon described AI as a decisive factor for national survival in the coming decade. “Information security has become a prerequisite for the survival of both nations and companies in the AI era,” he said, signaling a tougher stance on governance as AI adoption accelerates. Bae defined 2026 as a turning point for science and technology policy, saying the government will push forward an “AI basic society” in which “all citizens can enjoy the benefits of artificial intelligence.” Rather than focusing only on cutting-edge research, the government is emphasizing practical, solution-oriented AI that directly raises productivity across the economy. The science ministry plans to secure world-class domestic AI models and deploy them across manufacturing, shipbuilding, logistics and other core industries to accelerate digital transformation. AI-based public projects will be expanded so citizens can experience tangible improvements in daily life. “We will promote AI transformation across key industries and expand AI-based livelihood projects so people can feel real change,” Bae said. Nationwide AI education programs, competitions and training initiatives will be expanded to ensure broad participation, while startups and young entrepreneurs will receive targeted support to translate ideas into viable businesses. A central pillar of the strategy is the creation of a “full-stack K-AI ecosystem,” linking semiconductors, software, data, platforms and services into a single value chain. The government plans to accelerate global expansion of Korean AI companies while strengthening the ecosystem that connects chips, infrastructure and applications. Officials say this approach is intended to move Korea beyond its traditional role as a component supplier toward becoming a provider of integrated AI solutions. This direction closely mirrors the private sector’s message. SK Group Chairman Chey Tae-won said AI is already reshaping global industry and will define competitiveness going forward. “AI is no longer a distant future but a reality that has entered deep into our daily lives,” Chey said in his New Year’s message. “The era of AI has only just begun, and the opportunities ahead will be far greater than we can imagine today.” He said SK aims to become a leader in the global AI ecosystem by offering integrated AI solutions rather than isolated technologies. “AI innovation is not limited to semiconductors,” he said, stressing that energy, telecommunications, construction and bio businesses can all serve as foundations for AI-driven value creation. Chey added that successful transformation depends on strengthening core businesses first. “We must solidify the fundamentals of what we already do well and layer AI innovation on top of them to create differentiated value,” he said. As AI adoption accelerates, the government is also tightening its stance on cybersecurity and accountability. Bae warned that cyber threats linked to AI pose structural risks, saying the government would “respond at the national level” to hacking and security breaches. He said corporate leaders will face clearer legal responsibility for security failures, and repeated incidents could result in punitive penalties. The goal, he said, is to ensure that trust and safety become the foundation of AI-driven growth rather than an afterthought. The government plans to expand regionally autonomous R&D budgets and establish AI-based innovation clusters linked to local industries. Large-scale demonstration projects will anchor these hubs, enabling regions to develop sustainable growth engines tailored to their industrial strengths. This aligns with President Lee’s broader vision of moving away from a capital-centric structure toward a more distributed growth model, in which multiple regions serve as engines of innovation. Alongside AI, the government highlighted biotechnology, quantum technology and nuclear fusion as next-generation strategic sectors. A so-called “K-Moonshot” initiative will support long-term, high-risk research aimed at securing core technologies essential for future competitiveness. Bae emphasized that science and technology are central to overcoming Korea’s low-growth trap. “Science and technology are the key tools to unlock our economic potential,” he said, pledging stronger institutional support for basic research, scientists and young talent. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-01 14:37:05
INTERVIEW: Korea confident in AI sovereignty - National AI committee vice chair SEOUL, January 01 (AJP) -“The debate over whether sovereign artificial intelligence is even possible has completely shifted. Now the mood is: we can do it. That change in mindset is the most important development so far,” Lim Moon-young, the vice chairman of the National Artificial Intelligence Strategy Committee, told Aju Business Daily on Dec. 29, 2025. More than 100 days after its launch under President Lee Jae Myung, the National AI Strategy Committee's biggest internal transformation is the growing recognition that artificial intelligence is no longer merely a policy agenda to be discussed, but a national strategy that must be executed. Initial skepticism over whether Korea could realistically pursue “sovereign AI” has eased as plans to secure large-scale computing resources — including hundreds of thousands of graphics processing units (GPUs) — have taken shape and as the government’s commitment has become more visible. Officials say confidence has grown both inside and outside government. The committee has elevated AI to a top-tier national agenda and is pushing for a government-wide shift in how policy is coordinated. Its approach includes converting the body into a statutory committee to strengthen authority, applying a so-called “funnel strategy” to compel interministerial cooperation, and drafting a basic AI law centered on infrastructure building and real-world deployment. The ultimate goal is to establish AI as a foundational national infrastructure across industry and society. Below is a Q&A with Lim Moon-young, vice chair of the National AI Strategy Committee. What stands out most after 100 days of the committee’s work? “The biggest change is confidence — confidence that we can actually do this. At the beginning, there was a lot of doubt: ‘Can we really compete with big tech?’ ‘Is sovereign AI even feasible?’ But that atmosphere has changed completely. As plans such as securing 260,000 GPUs have taken shape, both policymakers and the public have gained confidence in the AI transition. People can now see that the government is serious, and that has changed attitudes,” Lim said. The committee is set to become a statutory body next year. What will change? “Becoming a statutory committee allows us to operate on a more stable footing. In the AI era, every ministry’s work inevitably overlaps, so coordination is essential. This committee is designed as a new organizational model to break down bureaucratic silos and drive cooperation. “Through an AI action plan based on the funnel strategy, we assign clear roles, responsibilities and deadlines to each ministry. Their outcomes then flow back into the committee through a funnel structure that enforces collaboration. We will also introduce evaluation indicators so the process cannot be ignored, and we plan to monitor implementation through a council of chief AI officers centered on AI senior secretary Ha Jung-woo,” he said. Why does South Korea need ‘sovereign AI’? “Sovereign AI should not be misunderstood as a closed or exclusive approach that relies only on domestic products. The core issue is choice and control. If we do not have our own technology, we become vulnerable when overseas companies raise prices or cut off supply. “It’s similar to national defense. Even if we buy fighter jets from the United States, we operate them ourselves. In the same way, we need a flexible strategy that maintains our own models while also using global technologies where appropriate,” Lim said. Startups worry that an AI basic law could stifle innovation. How do you respond? “This should not be framed as a simple choice between regulation and promotion. The real question is whether policy fits our current stage of development. From an AI-native perspective, we are still at a very early phase. We lack sufficient data centers and power infrastructure. “In that situation, leading with regulation would be putting the cart before the horse. The AI basic law should not function as a regulatory law at this stage. It should serve as a foundation for support and promotion, helping us repay what I call the ‘technology debt’ accumulated over 20 years of underinvestment and enabling us to rapidly build AI infrastructure,” he said. How should South Korea address widening knowledge gaps as subscription-based AI services spread? “We are entering an era of what I call ‘knowledge inflation.’ Advanced knowledge should not be accessible only to those who can afford expensive subscriptions. Just as King Sejong created Hangul to democratize knowledge, the core philosophy of the government’s AI basic society is that benefits must be shared by everyone. “Rather than simply distributing AI vouchers, the government can make foundational technologies — such as large language models or vision-language models — available for free or at low cost so startups and small business owners can use them. “For example, a restaurant owner could upload sales data and have AI automatically handle complex tax filings or track health-certificate renewal dates. They could also ask questions like, ‘Most of my customers are in their 40s — what menu item should I add?’ or ‘How should I redesign my interior?’ and receive consulting-level analysis,” Lim said. How can South Korea address power supply constraints linked to an AI-based economy? “The solution is what I call ‘Gyeong-su, hyang-san’ — data in the capital region, computing in the provinces. China processes data generated in its eastern regions using power-rich western regions, and we can take a similar approach. “Data creation will naturally remain concentrated around Seoul, but large-scale training data centers, which consume enormous amounts of electricity, should be located in regions with abundant power supply. Edge centers for inference, where real-time response is crucial, should be located in cities, but they must be carefully managed so they don’t proliferate uncontrollably. “AI itself should help solve this problem by analyzing fluctuations in energy supply by time of day and season, and allocating power more efficiently. Just as Google DeepMind is working on using AI to manage nuclear fusion, the interaction must be two-way: AI improves energy efficiency, and energy sustains AI,” he said. What are the committee’s mid- to long-term goals? “I hope South Korea does not miss this golden window for AI transformation and succeeds in building an independent ‘third zone’ between U.S. and Chinese dominance. We are one of the few countries with a full-stack capability — spanning semiconductors, software, services and data. “Our strengths lie in e-government know-how and world-class manufacturing. Going forward, we plan to expand the committee and place greater emphasis on physical AI as the next strategic frontier. “Beyond industrial development, we also want to ask more fundamental questions: how democracy and social systems should evolve in the AI era, and what kind of identity and governance model Korea should pursue,” Lim said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-01 14:12:50
Korea's exports hit record $709.7 billion in 2025 as chip shipments surge to all-time high SEOUL, January 01 (AJP) - South Korea’s exports hit an all-time high in 2025, surpassing $700 billion for the first time, driven by record semiconductor shipments despite weakening demand in key overseas markets. According to data released Thursday by the Ministry of Trade, Industry and Energy, exports rose 3.8 percent from a year earlier to $709.7 billion, topping the previous record set in 2024. Average daily exports also reached a historic high of $2.64 billion. Semiconductor exports — the country’s largest item — climbed 22.2 percent to $173.4 billion, setting another annual record as global AI investment pushed up memory prices. Automotive exports edged up 1.7 percent to $72 billion, also a record despite tariff-related declines in U.S.-bound shipments. Other major gainers included bio/health (+7.9%), ships (+24.9%), computers (+4.5%), and wireless devices (+0.4%). Exports of agricultural and fisheries goods, cosmetics and electrical equipment all reached historic highs amid growing global interest in K-food and K-beauty. By contrast, petroleum products (-9.6%), petrochemicals (-11.4%), and steel (-9.0%) declined due to lower oil prices and global oversupply. Shipments to China — Korea’s biggest market — fell 1.7 percent, while exports to the United States dropped 3.8 percent, weighed down by tariffs on Korean automobiles and machinery. Exports to ASEAN rose 7.4 percent, to the EU 3.0 percent, and to CIS countries 18.6 percent. Total imports were nearly flat at $631.7 billion, with reduced energy purchases offsetting increased imports of semiconductor manufacturing equipment. As a result, Korea posted a $78 billion trade surplus for 2025. In December alone, exports grew 13.4 percent to a monthly record $69.6 billion, marking the 11th straight month of year-on-year gains. Chip exports in December surged 43.2 percent to a historic monthly high of $20.8 billion. Industry Minister Kim Jeong-gwan said Korea must use the momentum to upgrade export competitiveness, citing “manufacturing AI transformation” and accelerated investment in advanced sectors including AI semiconductors. 2026-01-01 11:50:25