AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Ryu Yuna
  • Foreign ministers of South Korea and Singapore agree to deepen cooperation
    Foreign ministers of South Korea and Singapore agree to deepen cooperation SEOUL, May 28 (AJP) - Foreign Minister Cho Hyun met with his Singaporean counterpart in Seoul on Thursday to discuss bilateral cooperation, regional security issues, and broader international affairs, according to the Ministry of Foreign Affairs. Their meeting came after Singaporean Foreign Minister Vivian Balakrishnan's visit to North Korea earlier this week as part of a regional tour that also included China. During his trip to Pyongyang last Tuesday, Balakrishnan met with his North Korean counterpart Choe Son-hui. Cho was quoted as saying that it is important for Singapore and other ASEAN countries to continue engaging North Korea, as this could help build momentum for talks with Pyongyang. Balakrishnan agreed that the two countries should work closely together to support peace and stability on the Korean Peninsula, according to the ministry. Balakrishnan also said South Korea and Singapore share key values such as free trade and multilateralism, and he expressed hope for closer cooperation in areas including trade, advanced technologies, and emerging industries. The two ministers also discussed the prolonged conflict in the Middle East, stressing that keeping global shipping routes such as the Strait of Hormuz open and safe is vital for both countries' security and economic stability. Later in the day, Balakrishnan also met with Unification Minister Chung Dong-young, though details of their meeting were not disclosed. Speaking to reporters afterward, Chung said he "deeply appreciated" Singapore's constructive role in addressing issues on the Korean Peninsula. 2026-05-28 15:56:23
  • Group tourists from Indonesia allowed temporary visa-free entry until years end
    Group tourists from Indonesia allowed temporary visa-free entry until year's end SEOUL, May 28 (AJP) - Tourists from Indonesia are now allowed visa-free entry to South Korea from Thursday through the end of December. According to the Ministry of Justice, Indonesian tourists traveling in groups of three or more, whether independently or through a travel agency, are allowed to stay in South Korea for up to 15 days without a visa. The temporary measure in cooperation with the Ministry of Culture, Sports and Tourism and the Ministry of Foreign Affairs comes as Seoul seeks to boost tourism and domestic spending after Indonesian arrivals reached a record high of 365,596 visitors last year. The number of visitors from Indonesia has rebounded since the coronavirus pandemic, rising from around 250,000 in 2023 to more than 330,000 in 2024, after a pre-pandemic high of 270,000 in 2019. The measure is part of Seoul's broader push to boost tourism, aimed at attracting 30 million foreign visitors by 2030, by easing entry requirements for Southeast Asian travelers and expanding multiple-entry visas. Instead, they have to undergo stricter screening procedures to minimize illegal overstays. Travel agencies are also required to upload tourist lists to a state-run immigration portal at least 24 hours before arrival, or 36 hours in advance for travelers entering by ship. Immigration authorities will thoroughly review the lists to identify high-risk individuals including those previously involved in illegal stays or subject to entry restrictions. Such travelers are excluded from the visa-waiver program. Travel agencies could have their licenses revoked if the rate of tourists who go AWOL exceeds an average of 2 percent per quarter. 2026-05-28 14:41:02
  • Number of newborns in S. Korea reaches highest in seven years
    Number of newborns in S. Korea reaches highest in seven years SEOUL, May 27 (AJP) - The number of newborns in South Korea in March rose above 25,000, marking the highest level for the month in seven years, government data showed Wednesday. The rebound in births has now extended into a second straight year, supported by a rising number of marriages and more births among women in their early and late 30s. According to South Korea’s monthly population data for March released by the Ministry of Data and Statistics, 25,200 babies were born in March, up 19.4 percent from a year earlier. It marked the sharpest year-on-year increase for the month since the agency began compiling related data in 1981. The number of births had fallen below 20,000 a month at several points in 2024, fueling concerns over the country’s shrinking population and long-term labor shortages. However, South Korea saw its total number of newborns at 75,013 in the first quarter of 2026, up 14.8 percent from a year earlier. It was the highest first-quarter increase on record and the largest number of births for the January-March period since 2019. The improvement was also reflected in the country’s fertility rate. South Korea’s total fertility rate, the average number of children a woman is expected to have in her lifetime, stood at 0.93 in March, up from 0.78 a year earlier, remaining above 0.9 for a third consecutive month. If the trend continues, the annual figure could climb toward 0.9 this year after hitting a record low of 0.80 in 2025. The rise in marriages also continued, though the pace of growth slowed from the previous year. The number of marriages during the first quarter rose 6.1 percent from a year earlier to 62,309, compared with an 8.4 percent increase a year earlier. 2026-05-27 16:10:55
  • South Koreas AI bonus wars set off domino effect beyond chips
    South Korea's AI bonus wars set off domino effect beyond chips SEOUL, May 27 (AJP) - May is typically a labor unrest season in South Korea, but this year the epicenter of disputes is no longer traditional factories — it is high tech. The bonus bonanza at the country's two chipmakers, which rode the AI wave to become two of only three Asian companies valued at more than US$1 trillion, is spilling across industries. Employees from manufacturers to platform operators and biotech firms are demanding a greater share of record earnings, even as median wages for ordinary salary earners remain largely stagnant in Korea, exposing widening tensions over compensation, contribution and corporate inequality across the country's industrial landscape. For decades, South Korea's export-driven economy operated on a form of "trickle-down" growth, in which profits generated by large conglomerates flowed through layers of suppliers, subcontractors and smaller manufacturers. Now, workers and industry officials warn that conflicts surrounding AI-era bonuses may be creating a different kind of trickle-down effect — one driven not by shared prosperity, but by widening pay gaps, internal resentment and intensifying labor tensions. "I could have made more money feeding ducks in the memory campus," grumbled Lee HJ, a 33-year-old engineer in the system LSI division of a major Korean conglomerate. The joke has spread widely across Korean workplace forums after employees assigned to memory-chip businesses were expected to receive bonuses worth hundreds of millions of won, while Ph.D.-level engineers in loss-making system LSI and foundry units were set to receive far less. "Someone feeding ducks can receive 400 million to 500 million won just because they belong to the semiconductor division," Lee said, capturing growing frustration over widening internal pay gaps. The tensions are most visible at Samsung Electronics, where the company's representative union approved a tentative 2026 wage agreement on Wednesday, averting an immediate strike at the world's largest memory-chip maker and easing concerns over disruptions to AI supply chains and South Korea's stock market. Electronic voting held from May 22 through Wednesday morning drew participation from 95.5 percent of 65,593 eligible voters, with 73.7 percent approving the deal. The agreement — reached just one day before a planned strike deadline — includes an average 6.2 percent wage increase and a newly created special performance bonus tied to operating profit. Under the deal, Samsung will institutionalize a bonus pool linked to 10.5 percent of annual operating profit, mirroring a structure already adopted by SK hynix. Inside Samsung, compensation gaps between business divisions have widened dramatically. Workers in the company's memory semiconductor division — which benefited directly from soaring demand for high-bandwidth memory chips used in AI servers — are expected to receive compensation packages worth as much as 600 million won this year. By contrast, employees in Samsung's foundry and system LSI divisions, which remain under earnings pressure, are expected to receive around 210 million won, while some workers in the smartphone and consumer-electronics businesses may receive only around 6 million won. The nearly 100-fold disparity has fueled unusually sharp tensions inside Samsung over widening compensation inequality. The rush to carve up corporate earnings has spilled well beyond the lucrative chip segment. Park Byung-jin, a professor at Hanyang University's School of Business, said Samsung's bonus deal would have a "domino effect" across South Korea's labor market and corporate compensation systems. "A bonus structure with no clear ceiling at the country's most influential company could trigger broader 'bonus inflation' across Korea," he said. "Once it becomes a reference point, unions at other major firms will naturally push for similar payouts." Unions at Hyundai Motor and Kia have demanded bonuses equivalent to 30 percent of net profit this year. HD Hyundai Heavy Industries, whose shipbuilding business is benefiting from a supercycle driven by surging orders for high-value vessels, has included a proposal for "30 percent operating-profit sharing" in this year's wage negotiations. HD Hyundai Heavy Industries' union has included 30 percent operating-profit sharing in its bargaining proposal, while Kakao's union is pushing for bonuses worth 13 percent to 14 percent of operating profit. LG Uplus has also faced demands for bonuses tied to roughly 30 percent of operating profit. SM, a 33-year-old senior manager at a major Korean automaker, said the dispute ultimately comes down to how a limited pool of money is divided. "There is no such thing as a win-win structure," he said. "The more one side takes, the less remains for someone else. Eventually, somebody has to give something up." The conflict is no longer a simple clash between labor and management. It is spreading across multiple fault lines: business divisions, job categories, regular and subcontracted workers, primary contractors and suppliers, and even shareholders and employees. Inside platform and ICT firms, tensions are increasingly emerging between developers, marketers, sales teams and support staff over who truly creates value in AI-driven businesses and how those profits should be distributed. Similar disputes are surfacing across other industries. Samsung Biologics faced its first-ever strike earlier this month after talks collapsed over demands including profit-linked bonuses and higher compensation. The rise in profit-linked bonuses is also widening disparities between large corporations and smaller firms, intensifying feelings of relative deprivation among workers outside the AI boom. According to Labor Ministry data released in 2025, bonuses and incentives accounted for 24.7 percent of wages at companies with more than 1,000 employees in 2024, compared with about 8 percent at smaller firms. Monthly bonuses at large corporations averaged roughly 1.33 million won, nearly four times the 340,000 won average at smaller companies. According to National Tax Service data on 2024 earned-income filings, the average annual salary for Korean workers stood at roughly 45 million won, or about 3.75 million won per month. However, the median annual salary — the midpoint at which half of workers earn more and half earn less — was only 34.17 million won, or about 2.85 million won per month. The gap of more than 10 million won between the average and median underscores how high-income earners continue to skew overall wage statistics upward, while the majority of workers experience significantly lower real incomes. On a pretax basis, nearly half of Korean salary earners make less than 3 million won a month. Against that backdrop, compensation demands such as those raised by Samsung's union risk deepening the sense of inequality felt by ordinary workers. Some industry estimates suggest that if Samsung were to allocate 15 percent of operating profit to performance bonuses, as demanded by labor representatives, employees in the DS memory division could receive average bonuses totaling 2.61 billion won per person between 2026 and 2028. "Some people are barely getting through the month, while others are fighting over bonuses worth hundreds of millions of won," said David Song, a 35-year-old employee at an IT company in Seoul. "Smaller companies don't have the unions or bargaining power. It feels like we are living in a different world." The disputes are also spreading through Korea's broader contractor ecosystem. Large manufacturers depend heavily on subcontractors and outsourced workers, from logistics providers to cafeteria, cleaning and security staff operating inside the same industrial sites. "Is it reasonable to pay cleaners 80 percent of what regular employees receive?" said Kim JW, a 28-year-old employee at a major manufacturing conglomerate. "Situations like this only deepen resentment toward subcontracted workers." The issue has become more sensitive following revisions to South Korea's labor union law — often referred to as the "Yellow Envelope Act" — which expanded the responsibilities of primary contractors and increased pressure on large manufacturers to address widening bonus gaps across contractor networks. A logistics subcontractor union tied to SK hynix has demanded collective bargaining over bonus disparities, while a cafeteria-service union linked to Hanwha Ocean has also called for expanded bonus payments. The conflict is increasingly moving beyond directly employed workers into the wider subcontractor ecosystem. The debate is also colliding with shareholder concerns. Some investors argue that shareholders absorb losses during downturns while employees increasingly demand larger shares of profits during boom years. Critics warn that escalating bonus structures could weaken dividends and reduce long-term investment capacity. Park of Hanyang University said the widening bonus gap is forcing Korean companies into a difficult balancing act between preserving organizational cohesion and rewarding increasingly concentrated AI-era profits. He said Samsung's current OPI (Over Profit Incentive) structure still retains a strong "group reward" character, in which entire divisions benefit collectively when one business unit performs well. "That means companies may end up rewarding thousands of employees just to retain a handful of key engineers," he said. To address the problem, Park said Korean companies would eventually need to scale back broad group-based bonuses such as OPI and shift more resources toward targeted retention bonuses designed to prevent critical talent from leaving. "That would help reduce overall cost burdens while protecting irreplaceable engineers and top performers," he said. Park also argued that companies should first account for shareholder returns and capital costs before distributing incentives based on economic value added, or EVA — a measure of profit after deducting capital costs — in order to ease tensions between shareholders and employees. He further suggested replacing part of large cash payouts with restricted stock units, or RSUs, arguing that bonuses above a certain threshold should be paid in shares with multiyear lockup periods rather than immediate cash. Such a structure, he said, would align employees more closely with long-term shareholders. Park also warned that applying identical profit-based compensation standards to both highly profitable memory-chip divisions and future-growth businesses such as foundry and system LSI could deepen internal divisions. Instead, he said, future-oriented businesses should be evaluated using longer-term indicators such as technology milestones, customer orders and market-share growth rather than short-term profits alone. "The core shift," Park said, "is moving away from broad group bonuses toward a more targeted compensation system focused on shareholders and irreplaceable talent." Samsung's approved agreement partly reflects that transition. Under the deal, portions of special bonuses will be paid in company shares subject to lockup periods, marking an early shift away from immediate cash payouts toward longer-term stock-linked compensation. South Korea's AI-era bonus wars are no longer simply disputes over wages. They are becoming a broader test of whether Korean companies can preserve organizational and social cohesion while fairly distributing increasingly concentrated profits in the AI economy. 2026-05-27 15:20:26
  • KOSPI outshines as Seoul hosts 2 $1 trillion stocks, Nikkei also at record highs
    KOSPI outshines as Seoul hosts 2 $1 trillion stocks, Nikkei also at record highs SEOUL, May 27 (AJP) - South Korean and Japanese equities surged Wednesday while most other Asian markets moved sideways, highlighting the widening divergence in the region’s AI-driven rally. The KOSPI emerged as the standout performer, briefly topping the 8,400 level a day after entering the new four-digit era, as South Korea became home to two $1 trillion listed companies. As of 11:08 a.m., Seoul’s benchmark index was up 4.29 percent at 8,391.53, while the junior KOSDAQ slipped 0.87 percent to 1,162.36. Japan’s Nikkei 225 climbed 1.34 percent to 65,866.82 as semiconductor and AI-related shares tracked overnight gains on Wall Street. In contrast, Chinese and Hong Kong equities were little changed. Hong Kong’s Hang Seng Index fell 0.11 percent to 25,571.09, while China’s Shanghai Composite edged down 0.03 percent to 4,144.06. Overnight in the United States, Micron Technology surged nearly 20 percent, briefly pushing its market capitalization above the $1 trillion mark, while the Philadelphia Semiconductor Index jumped 5.53 percent as gains spread broadly across chipmakers. UBS also sharply raised its target price on Micron, citing a strengthening memory-chip cycle. U.S. equities were additionally supported by easing Treasury yields and lower oil prices. The S&P 500 rose 0.61 percent and the Nasdaq advanced 1.19 percent to fresh record highs, while the Dow Jones Industrial Average slipped 0.23 percent. In Seoul, memory giants Samsung Electronics and SK hynix powered the KOSPI higher even as declining issues outnumbered gainers 803 to 97. Investor sentiment toward Samsung Electronics improved after 73.7 percent of union members voted to approve the company’s tentative wage agreement, with turnout reaching 95.5 percent. Shares in Samsung Electronics rose 7.02 percent to 320,000 won. SK hynix surged 10.38 percent to 2,265,000 won, lifting the chipmaker above the $1 trillion market-cap threshold for the first time. The company became the third Asian firm after TSMC and Samsung Electronics to join the trillion-dollar club. At current prices, SK hynix ranks 12th globally with a market capitalization of roughly 1,598 trillion won ($1.06 trillion), surpassing Berkshire Hathaway, Micron and Eli Lilly. SK hynix and Samsung Electronics are now the only two Korean firms among the world’s 14 listed companies valued above $1 trillion. SK Square also jumped 9.82 percent as investors continued pouring into AI-linked semiconductor plays. Samsung affiliates advanced broadly, with Samsung Electro-Mechanics rising 4.45 percent, Samsung C&T gaining 4.50 percent and Samsung Life Insurance adding 4.60 percent. Defense and aerospace shares were mixed. Hanwha Aerospace rose 0.80 percent, while shipbuilder HD Hyundai Heavy Industries slipped 1.74 percent. By contrast, several automaker, battery and biotech shares underperformed. Hyundai Motor fell 1.45 percent, Kia lost 1.86 percent and LG Energy Solution declined 1.50 percent. Samsung Biologics also dropped 1.75 percent. The weaker showing on the KOSDAQ reflected mixed trading across biotech, battery and semiconductor-equipment shares despite gains in select pharmaceutical names. EcoPro BM rose 1.59 percent and EcoPro gained 2.45 percent, while biotech heavyweight Alteogen surged 7.66 percent. Peptreon climbed 6.84 percent and LigaChem Biosciences jumped 10.12 percent. Other biotech and equipment shares also advanced, with Koh Young Technology rising 4.31 percent, Sam Chun Dang Pharm gaining 0.97 percent, HLB adding 0.95 percent and Abeona Bio climbing 4.68 percent. Ju Sung Engineering edged up 0.85 percent. Meanwhile, robotics and chip-equipment stocks weakened. Rainbow Robotics fell 1.94 percent, EO Technics declined 3.47 percent, Wonik IPS dropped 5.66 percent and Leeno Industrial slid 7.31 percent. The rally remained heavily concentrated in semiconductor and AI-related heavyweights, underscoring the market’s continued dependence on a narrow group of AI beneficiaries. The Korean won traded little changed in early trading, with the dollar quoted at 1,504.60 won versus the previous session’s close of 1,504.30 won. 2026-05-27 11:24:53
  • KOSPI extends record-setting rally, fueled by memory stocks
    KOSPI extends record-setting rally, fueled by memory stocks SEOUL, May 27 (AJP) - South Korea’s main bourse briefly halted Wednesday after the benchmark index tracking the top 200 listed companies surged 5 percent, propelling the KOSPI past the 8,400 mark just a day after breaking into unprecedented four-digit territory. As of 9:30 a.m., the KOSPI had risen 3.63 percent to 8,355.81 after briefly testing above 8,400 shortly after the opening bell, as memory chip giants continued to shatter record highs. Samsung Electronics surged more than 6 percent to 318,000 won, while SK hynix jumped more than 9 percent to 2.24 million won on strong institutional and foreign buying. The KOSDAQ, however, fell 1.52 percent, to 1,154.68. 2026-05-27 09:47:50
  • Conflict Over Performance Bonuses Intensifies Amid AI Boom in South Korea
    Conflict Over Performance Bonuses Intensifies Amid AI Boom in South Korea “I want to receive performance bonuses based on my results, but it feels like I’m playing a game where the outcome is already decided,” said Yoo, a 31-year-old employee at a major South Korean corporation. “The criteria for performance bonuses change every year, making it hard to predict. The issue isn’t the money; it’s that the standards keep changing and aren’t clearly defined.” As Samsung Electronics and SK Hynix, leaders in the domestic semiconductor industry, continue to achieve record-breaking results thanks to the AI semiconductor boom, conflicts surrounding performance bonuses and compensation systems are intensifying in the workplace. While U.S. tech giants are significantly increasing stock options and equity compensation to attract key AI talent, South Korea is witnessing repeated labor disputes over the criteria and distribution methods for performance bonuses. Samsung Electronics and its labor union signed a tentative agreement following a government mediation process, temporarily postponing a planned general strike. However, the potential for renewed conflict remains, depending on the results of a member vote on the tentative agreement scheduled for the 27th. As a key player accounting for about 20% of South Korea's total exports, any production disruptions at Samsung could significantly impact the domestic industry and financial markets. The core of the tentative agreement at Samsung Electronics is to fix the performance bonus pool for the semiconductor (DS) division at 10.5% of agreed business performance and to eliminate the payment cap, introducing an unprecedented compensation system. This change allows for substantial stock performance bonuses for employees, particularly in the memory division, marking a test of a new compensation model aligned with the AI semiconductor boom. This situation has strengthened calls for more transparency and predictability in the criteria and decision-making processes for performance bonuses. Industry experts argue that the unclear compensation system has exacerbated recurring labor disputes, and this agreement could serve as a new benchmark for performance distribution during the AI boom. This trend is expected to influence discussions on compensation systems at other ICT companies, including Kakao, which recently faced the possibility of its first headquarters strike after a vote in favor of a strike. The differences in compensation systems between South Korean and U.S. companies have become more pronounced in the wake of the AI boom. In South Korea, wage increases are primarily driven by performance bonuses rather than base salaries. An analysis of raw data from the Ministry of Employment and Labor's 'Business Labor Force Survey' by the Korea Employers Federation revealed that special payments (including performance bonuses) increased by 8.1% in the first half of 2025 compared to the same period the previous year, significantly outpacing the increase in fixed salaries (2.9%). However, the distribution of performance bonuses is heavily skewed towards large corporations. According to data received by Kim Wi-sang, a member of the People Power Party, from the Ministry of Employment and Labor, as of June last year, 43.8% of workplaces with over 300 employees and 46.2% of those with over 1,000 employees operated performance bonus systems, compared to just 6.4% of small businesses with fewer than 300 employees. Performance distribution systems are collective performance reward systems based on whether a company meets its management goals, distinguishing them from individual performance bonuses based on personal evaluations. South Korean companies tend to have a strong structure for distributing performance bonuses based on overall company performance. Cash bonuses and welfare benefits are predominant, often prioritizing organizational performance over individual contributions. This contrasts with the compensation systems of U.S. tech giants, which focus on securing key talent and individual contributions. Experts analyze that the recurring conflicts over performance bonuses stem not just from corporate culture but also from structural differences in labor market flexibility, performance evaluation methods, and risk-sharing frameworks. Eric Cambria, a professor at Nanyang Technological University, noted, “U.S. tech companies are intensely focused on securing key research personnel that will determine their AI competitiveness. The trend of concentrating stock options and long-term rewards on key developers is strengthening.” Indeed, competition for top talent among U.S. tech giants has intensified following the AI boom. Financial data reviewed by The Wall Street Journal indicates that OpenAI's average stock compensation per employee is approximately $1.5 million for 2025. Meta reflected $20.4 billion and Alphabet $27.1 billion in stock-based compensation for the same year. U.S. companies are also reinforcing structures that reflect not only overall company performance but also individual contributions and strategic input in their performance bonuses. Companies like Meta and Google are known to consider a comprehensive range of factors, including rank, individual evaluations, and organizational performance, when determining compensation. The demand for AI talent is surging. According to global recruitment platform Indeed, job postings for 'Forward-Deployed Engineers,' who directly apply AI systems in the workplace, skyrocketed from 643 in April last year to 5,330 in April this year, an increase of about 729%. Choi Jae-pil, a professor at Sungkyunkwan University's Graduate School of Business, stated, “As AI standardizes repetitive tasks, the phenomenon of concentrating rewards on 'superstar talent' that creates strategic value will intensify.” He added, “As AI enables more transparent evaluations of previously hard-to-quantify performance, the introduction of differentiated compensation systems by companies is likely to accelerate. Ultimately, in the AI era, the question of 'who is irreplaceable' will become the standard for compensation.” He further noted, “Whether companies can retain key talent will determine their competitiveness. Companies are likely to shift their compensation systems toward stock options and long-term incentives. However, South Korea still has a strong collective culture and cash-based performance bonus system, which may lead to greater internal resistance during the process of introducing differentiated compensation systems compared to the U.S.” Differences in labor market structures are also cited as a backdrop to the recurring conflicts over performance bonuses. Shin Hyun-han, a professor at Yonsei University's School of Business, pointed to 'labor market flexibility' as a reason why U.S. companies tend to disclose evaluation criteria and compensation systems more transparently. He explained, “In the U.S., dissatisfied key talents can quickly move to competitors, prompting companies to naturally offer higher compensation to retain talent. Consequently, the employees who remain in the organization are those who agree with the corporate culture.” In contrast, he noted, “In South Korea, the burden of potential wage loss and career uncertainty makes it difficult for employees to leave easily. As a result, dissatisfied employees often remain in the organization and voice their concerns.” He described this as a “vicious cycle of performance bonus disputes,” where no matter how much bonuses are increased, relative deprivation persists. Differences in evaluation methods also emerge. Professor Shin stated, “U.S. companies tend to clearly disclose KPIs (Key Performance Indicators) or OKRs (Objectives and Key Results), while South Korean companies often rely on qualitative judgments from evaluators.” He added, “As a result, information asymmetry deepens, and ultimately, the degree of freedom in dismissals influences the transparency of companies.” He emphasized that what is crucial for employees is “predictability,” suggesting that maintaining base salaries while differentiating performance bonuses could be a realistic alternative. He stated, “The clearer the criteria become, the easier it is for employees to accept the results or make rational choices to leave if necessary.” There is already a growing perception that “effort and rewards are not connected.” SJ, a thirty-something employee at a subsidiary of a major corporation, expressed his frustration, saying, “The companies we supply to are having performance bonus parties, but we end up with nothing.” He noted, “In a vertically integrated structure, the profitability of subsidiaries is often determined by internal trading structures or group-level distribution methods. There needs to be more transparent and consistent disclosure of evaluation criteria for individuals, departments, and business units so that employees can accept the results.” He added, “Currently, no matter how much performance we deliver, the company often explains it away with the logic of being in a 'crisis situation.' Clear criteria are necessary for employees to feel motivated and grow alongside the organization.” However, experts caution that simply adopting the U.S. compensation system is not the solution. Kim Jin-young, a professor at Korea University, stated, “The high compensation in the U.S. comes with the structure of accepting the risks of layoffs and income volatility. To share performance, there must be a structure that also shares risks during downturns.” He added, “In South Korea, there is often a focus solely on the high compensation of the U.S. model, but underlying it are employment instability and labor market risks. Rather than trying to solve inequality issues solely through internal performance bonuses, it is necessary to approach them from a broader social structural perspective.” Experts believe that as the AI era progresses, South Korean companies will face increasing pressure to reform their compensation systems. However, they agree that rather than simply imitating the U.S. performance compensation system, it is essential to redesign compensation structures that fit the labor market structure and organizational culture in South Korea. Professor Choi emphasized, “Ultimately, what matters is how fairly and reliably employees perceive the performance evaluation and compensation systems. In the AI era, changes in compensation systems must go hand in hand with transformations in organizational culture and labor market structures.”* This article has been translated by AI. 2026-05-23 11:07:06
  • Asia AI boom lifts Nikkei to record high while KOSDAQ roars on retail frenzy
    Asia AI boom lifts Nikkei to record high while KOSDAQ roars on retail frenzy SEOUL, May 22 (AJP) - Japan's main index touched new heights Friday as it led broad Asian gains refueled by AI hype, while Seoul's secondary bourse received a boost from a state-backed fund. The Nikkei 225 rose 2.68 percent to a record close of 63,339.07 amid reinforced momentum in AI- and semiconductor-related stocks following Nvidia's strong earnings. SoftBank Group surged more than 12 percent intraday after a near 20-percent jump in the previous session — the biggest one-day gain since February 2000 — on expectations surrounding Arm Holdings and a potential OpenAI IPO. AI-related shares also rallied strongly, with factory automation firm Fanuc climbing 6.61 percent, Kawasaki Heavy Industries gaining 4.48 percent and electronic components maker Taiyo Yuden soaring 11.74 percent to a record high on expectations for rising AI server demand. China's Shanghai Composite also ended 0.87 percent higher at 4,112.90, while Hong Kong's Hang Seng Index was trading up 0.85 percent at 25,602.66. Korea's benchmark KOSPI swung sharply throughout the session before closing 0.41 percent higher at 7,847.71. The index briefly fell below 7,800 in early trading before rebounding above 7,860. Retail investors bought a net 1.07 trillion won worth of local shares, while foreigners sold a net 1.92 trillion won. Institutional investors bought a net 758.3 billion won. The junior KOSDAQ surged 4.99 percent to 1,161.13, triggering buy-side sidecar curbs for a second consecutive session as growth and speculative shares rallied sharply. Investor sentiment was boosted by the launch of the "National Growth Fund," a state-backed investment program aimed at channeling household savings into AI and other strategic industries. Online allocations at several brokerages sold out within minutes after subscriptions opened Friday morning, reinforcing expectations that the fund would primarily benefit smaller KOSDAQ-listed technology and venture firms, while boosting buying interest in biotech, AI, semiconductor equipment and secondary-battery shares. Secondary-battery stocks EcoPro BM and EcoPro climbed 10.77 percent and 12.87 percent to close at 216,000 won and 146,500 won, respectively, while semiconductor equipment maker Jusung Engineering surged 20.95 percent to 224,000 won. Biotech shares also rallied broadly, with HLB jumping 8.76 percent to 50,900 won, ABELBIO rising 9.37 percent to 120,200 won and LigaChem Biosciences gaining 12.83 percent to 157,400 won. The divergence between the two benchmarks widened as Samsung Electronics and SK hynix lost momentum following weeks of steep gains tied to the global AI rally. Samsung Electronics fell 2.34 percent to 292,500 won after hitting a record intraday high of 300,500 won, while SK hynix edged up 0.05 percent to 1,941,000 won. Other major KOSPI names traded mixed. Auto shares weakened, with Hyundai Motor falling 1.65 percent to 655,000 won and Kia declining 1.85 percent to 164,800 won amid profit-taking pressure following recent gains. By contrast, electronics and industrial shares advanced. Samsung Electro-Mechanics surged 11.30 percent to 1,340,000 won, while HD Hyundai Heavy Industries rose 1.19 percent to 680,000 won and Hanwha Aerospace gained 1.04 percent to 1,261,000 won. Financial and holding company shares also strengthened, with KB Financial rising 2.70 percent to 160,000 won, Samsung Life Insurance adding 2.68 percent to 364,500 won and SK Inc. jumping 11.46 percent to 642,000 won. Among battery and biotech names on the main board, Samsung SDI climbed 5.03 percent to 647,000 won and Samsung Biologics gained 1.43 percent to 1,415,000 won. Despite the relatively muted finish for the KOSPI, intraday volatility remained elevated as investors rotated out of large-cap semiconductor names and into smaller policy-driven momentum plays linked to the government fund theme. The dollar-won exchange rate retreated to 1,517.2 won on verbal intervention from authorities after crossing 1,580 won earlier in the day as foreign equity selling extended for a 12th straight session. In a joint statement, South Korea's Ministry of Economy and Finance and Bank of Korea said they were closely monitoring the market and would take decisive action if needed. The Seoul markets are closed Monday for Buddha's Birthday. 2026-05-22 17:19:06
  • State-backed investment fund sparks frenzy as retail investors flood in
    State-backed investment fund sparks frenzy as retail investors flood in SEOUL, May 22 (AJP) - A government-backed fund to invest in key strategic industries sparked a buying frenzy, with its online allocations selling out within minutes as soon as it became available on Friday. The fund, designed to invest in advanced industries such as artificial intelligence (AI) and semiconductors as part of President Lee Jae Myung's push to shift household assets away from heavy reliance on real estate and into the stock market, attracted strong demand from retail investors, who were drawn by tax incentives and a government-backed loss-sharing structure. Online offerings at some brokerages sold out within several minutes after sales began at 8 a.m., with banks and securities firms also seeing heavy demand both on mobile apps and in person. "We opened nearly 10,000 accounts for the fund in a single day," a staffer at a major brokerage in central Seoul said. "This morning alone, all online offerings were sold out within just 10 minutes." The staffer added that crowds had begun gathering early in the morning to open accounts for the fund, forming long waiting lines. Another brokerage also saw more than one-fifth of its 20 billion won ($14.5 million) allocation sold online within minutes after sales began at 8 a.m. Major banks including Shinhan and Woori said their mobile allocations sold out in the morning, while some branches saw customers lining up even before opening hours to sign up for the fund. "It feels more reliable because the government is involved," said a woman surnamed Bae in her 50s who visited a Korea Investment & Securities branch in Seoul's financial district of Yeouido to sign up for the fund. She said the product appealed to her because it was easier to manage alongside her daily job than short-term stock trading. "It feels more secure because the government is involved," said a woman in her 50s surnamed Bae, who visited a Korea Investment & Securities branch in Seoul's Yeouido financial district to sign up for the fund. She said the product also appealed to her because it was easier to manage alongside her daily job than short-term stock trading. The fund will be sold on a first-come, first-served basis over the next three weeks until June 11. To qualify for tax benefits, investors must be at least 19 years old and open a dedicated account used exclusively for the fund. Those who have been subject to South Korea's comprehensive income tax at least once in the past three years are not eligible to open such accounts. The fund aims to raise 600 billion won (US$435 million) from retail investors, along with 120 billion won in government funding. The combined assets will be allocated across 10 separate funds investing in strategic industries, with the government covering up to 20 percent of losses, though investors can still lose money. Financial regulators warned that the fund is a high-risk investment product, requiring investors to pass suitability assessments before investing. Despite the risks involved, demand appeared to surge as the fund offers tax benefits such as dividend income and income tax deductions. 2026-05-22 15:50:34
  • K-culture boom fuels global rise of AI Korean-learning app
    K-culture boom fuels global rise of AI Korean-learning app SEOUL, May 22 (AJP) - Riding the global mainstreaming of K-pop, Korean dramas and streaming blockbusters, a South Korean AI language-learning startup is rapidly expanding overseas, with the U.S. emerging as one of its biggest markets. TEUIDA, a South Korean language-learning app that uses AI voice recognition to simulate conversations with native speakers, has surpassed 6 million cumulative downloads worldwide, Chief Executive Jang Ji-woong said on Tuesday at Google’s annual I/O developer conference in Mountain View, California. About 30 percent of downloads came from the U.S., Jang said, while users in Southeast Asia, Europe and Japan are also driving growth. Monthly active users have reached around 600,000. Unlike conventional language-learning apps centered on memorization and repetition, TEUIDA focuses on immersive, conversation-based learning. Users speak directly to characters in filmed real-life scenarios, while AI analyzes pronunciation, context and accuracy in real time to guide the flow of the conversation. “It’s designed to feel more like talking to someone than studying a language,” Jang said. The company launched its Korean-language learning service first in Vietnam in 2019 before gradually expanding into English-speaking countries beginning in 2020. The platform now offers lessons in Korean, Japanese, Spanish and French, though Korean remains by far the most popular language among users. The app currently ranks No. 1 in Korean-language learning searches on Apple’s App Store in both the U.S. and the U.K., while also placing within the top 10 for Japanese-language learning apps. Mr. Jang said the global spread of Korean pop culture played a critical role in accelerating demand. The company’s launch coincided with BTS’s global breakout, followed by the worldwide success of Korean content such as “Parasite” and “Squid Game,” driving interest in Korean language and culture. In parts of Southeast Asia and Japan, Korean-language skills are increasingly viewed as useful for employment and education opportunities, adding to demand beyond entertainment consumption alone. The company has also sought to differentiate itself by incorporating cultural context into language learning. Lessons are filmed in authentic Korean settings — from restaurants and cafes to tourist spots such as Seoul’s Gwanghwamun district — allowing users to learn how expressions are naturally used in real-life situations. “Many users want to visit Korea and experience the culture,” Jang said, adding that the app’s appeal extends beyond simply learning the language. Earlier this year, the company launched a beta version of its English-learning service for Korean users and plans a broader rollout later this year after incorporating user feedback. Ultimately, TEUIDA aims to expand beyond Korean-language education into a broader multilingual learning platform. “Our ultimate goal is to become a multilingual app for language learners around the world,” Jang said. “This year, we are prioritizing revenue growth over profitability, though improving margins will become a priority starting next year.” 2026-05-22 11:33:16