Journalist

Lee Jung-woo
  • Coupang keeps up sales, but Q4 data shock exposes cash and trust risks
    Coupang keeps up sales, but Q4 data shock exposes cash and trust risks SEOUL, February 27 (AJP) - Coupang Inc.’s fourth-quarter numbers told a stark story: revenue rose 11 percent year-on-year to $8.84 billion, yet operating income collapsed 97 percent to just $8 million, and net income swung from a $156 million profit a year earlier to a $26 million loss. The sharp deterioration, driven largely by a massive data breach disclosed in November, undercut profitability, disrupted cash conversion and triggered regulatory scrutiny on both sides of the Pacific — even as the company posted record annual revenue for 2025. According to its filing with the U.S. Securities and Exchange Commission, the South Korean e-commerce giant, headquartered in the United States, generated $34.53 billion in net revenue in 2025, up 14 percent year-on-year and 18 percent on a constant-currency basis. Net income attributable to shareholders reached $208 million, while adjusted EBITDA increased to $1.49 billion from $1.38 billion a year earlier. Gross profit climbed 15 percent to $10.14 billion, with margin improving modestly to 29.4 percent. On the surface, scale and operating leverage appear intact. But free cash flow tells a different story. Free cash flow fell to $527 million in 2025 from $1.02 billion in 2024 — a 48 percent decline, representing $489 million less in cash generation. Management explicitly attributed the drop primarily to “the impact the data incident had on working capital in Q4 2025,” alongside elevated capital expenditures. Operating cash flow slipped to $1.773 billion from $1.886 billion a year earlier. Meanwhile, equipment-related capital expenditures surged to $1.015 billion from $634 million. The working capital shock is particularly revealing. Coupang’s business model depends on rapid cash cycles — collecting from customers quickly while managing payables efficiently. In the fourth quarter, however, cash lingered in refunds, credits, remediation costs and legal provisions rather than converting cleanly into free cash flow. Demand did not collapse. Cash efficiency did. Fourth-quarter profitability cratered The October–December quarter marked a sharp inflection. Revenue rose 11 percent year-on-year to $8.84 billion. However, operating income plunged to $8 million — a 97 percent decline — while net income swung to a $26 million loss. Adjusted EBITDA fell to $267 million from $421 million, with margin compressing from 5.3 percent to 3.0 percent. Sequentially, revenue declined from $9.27 billion in the third quarter to $8.84 billion in the fourth, marking a rare quarter-on-quarter contraction since Coupang’s 2021 New York listing. Gross margin deteriorated by 248 basis points in Q4, underscoring the cost of remediation, security upgrades and customer-related expenses following the breach. The episode illustrates a classic platform dynamic: transaction volumes can remain resilient, but profitability can deteriorate quickly when trust is impaired. Bom Kim: Trust remains central On the earnings conference call, founder and board chairman Bom Kim acknowledged the setback. “Everything Coupang has achieved has been driven by our single goal of delivering a Wow experience to our customers,” he said. “We are doing our utmost to earn customers' trust, as nothing is more serious for us than failing to meet their expectations.” He added, “While we faced challenges this quarter, particularly with the data incident, we remain committed to strengthening our operations and expanding our offerings. Our strong cash position allows us to invest in long-term growth opportunities.” The remarks reflect management’s effort to frame the incident as a temporary disruption rather than a structural impairment. The key question for investors, however, is whether the working capital shock was truly one-off — or whether heightened cybersecurity spending, compliance costs and customer incentives will structurally weigh on margins. Core resilient, expansions magnify volatility Coupang’s Product Commerce segment — including Rocket Delivery and Fresh — generated $29.59 billion in annual revenue, up 11 percent. Adjusted EBITDA improved to $2.5 billion, with margin expanding to 8.4 percent. Active customers rose 8 percent year-on-year to 24.6 million in Q4, suggesting the core ecosystem remains broadly intact despite the breach. By contrast, Developing Offerings — including Coupang Eats, Taiwan operations and newer initiatives — posted revenue growth of 38 percent to $4.94 billion, but adjusted EBITDA losses widened to $995 million. This imbalance amplifies consolidated volatility: while the core produces steady cash flow, expansion businesses increase sensitivity to shocks. The fourth-quarter incident exposed how quickly margin compression in emerging segments can compound pressure from unexpected events. "While its convenience once defined its brand, the recent data breach has shifted consumer perception from a local champion to a detached U.S. corporation, a sentiment now mirrored by similar challenges in Taiwan. Rebuilding this fractured consumer trust will be the defining hurdle for Coupang’s long-term sustainability in 2026," said Lee Hong-joo, professor of Business Administration at Catholic University. Regulatory scrutiny intensifies The breach involved unauthorized access to roughly 34 million customer accounts, exposing names, phone numbers and shipping addresses, though not payment details or login credentials. South Korea’s Personal Information Protection Commission has launched an investigation into whether Coupang’s internal access controls met legal standards. In the United States, members of Congress have sought briefings on the scope of the breach, reflecting the company’s status as a New York–listed firm subject to global governance scrutiny. While management says no secondary misuse has been detected, the scale of the breach presents a significant reputational risk in a subscription-driven model built on loyalty and trust. Coupang shares closed Thursday at $18.71 on the Nasdaq, up 1.91 percent in regular trading. Following the earnings release, the stock fell roughly 3.6–3.7 percent in after-hours trading. 2026-02-27 11:59:46
  • How 60-second micro-dramas are redefining screen culture
    How 60-second micro-dramas are redefining screen culture SEOUL, February 26 (AJP) - Over the past two decades, researchers have found that the average time people remain focused on a single task has fallen from roughly 2.5 minutes to about 40 seconds. For a generation raised on scrolling rather than scheduled programming, sitting through a two-hour film can feel like a commitment. A drama told in one or two minutes, however, fits neatly into the rhythm of daily life. Micro-dramas — serialized stories delivered in 60 to 120 seconds — are rapidly becoming one of the most consumed forms of visual entertainment worldwide. In South Korea, the surge has been particularly pronounced. According to Seoul-based short drama platform Beegloo, four of the five most-watched series this month are micro-dramas. While many titles initially targeted women in their 20s to 40s, the audience is broadening. Data show the core demographic is older than expected: women aged 35 and above now account for more than half of Beegloo’s global users. The rise of micro-dramas signals a structural shift within the already booming short-form content market. For years, web dramas with 10- to 15-minute episodes dominated digital storytelling. Now the attention economy favors speed, compression and emotional intensity. Micro-dramas are not confined to South Korea. Data from British research firm Omdia show the global market was valued at $11 billion last year and is projected to reach $14 billion this year. Nearly half of the $3 billion generated outside China comes from the United States alone. Regional breakdowns underscore the genre’s breadth. Latin America accounted for 27 percent of all short-form drama app downloads in the first quarter of last year — nearly 100 million downloads, up 69 percent year-on-year. Southeast Asia followed with 24 percent, a 61 percent annual increase. India, Europe and the U.S. each now hold between 7 and 11 percent of the global share. China remains a major growth engine, powered by domestic apps such as ReelShort and DramaBox. Both reported in-app purchase revenue growth exceeding 30 percent over the past year. According to Omdia’s analysis based on SensorTower data, ReelShort users in the U.S. average 35.7 minutes of daily viewing time — surpassing Netflix (24.8 minutes), Amazon Prime Video (26.9 minutes) and Disney+ (23 minutes). “I’m looking at Korean ones now through Vigloo and can compare them to shorts I often see on TikTok, YouTube and Instagram. The sheer volume of short sequences is striking,” said Patrick Parra Pennefather, a professor at the University of British Columbia. “Chinese and Korean micro-dramas are more developed,” he added. “With tools like Seedance 2, we may see new micro formats emerge — perhaps even original content built around generative AI. I’ve seen good, bad and a lot of slop.” A Battle for Attention Despite high daily viewing times, micro-drama platforms still trail major streaming services in monthly active users. Netflix counts roughly 12 million active users in the United States — about ten times more than ReelShort. Yet the disparity reveals something more nuanced: even with fewer users, micro-drama apps generate longer engagement per viewer. Their addictive brevity and algorithmic targeting reward repetition. “Micro-dramas aren’t just replacing television — they’re reprogramming how we consume stories,” said David Oh, professor of global media at Syracuse University. “Their power lies in how seamlessly they fit our digital habits.” Micro-dramas first gained traction in China’s mobile video ecosystem before spreading across Asia and onto global platforms such as TikTok, YouTube Shorts and Instagram Reels. Their narrative DNA blends soap opera melodrama with mobile-first design. Episodes often open mid-crisis — an affair exposed, a slap delivered, a betrayal revealed — pulling viewers instantly into the next clip. Earlier theories linked the popularity of webtoons and web dramas to commuting culture — watching or reading while riding the subway. But that explanation no longer suffices. “This isn’t just about mobility,” Oh said. “It’s about how deeply the mobile phone has become the center of everyday life.” Shortened attention spans, constant multitasking and algorithm-driven “instant payoff” loops form the psychological foundation of this viewing culture. Even pop songs are getting shorter. Time compression has seeped into storytelling, music and cognition itself. Micro-dramas embrace melodrama unapologetically. Betrayal, revenge and infidelity are recycled at high speed, echoing the “makjang” dramas once dominant in Korean prime time — but now compressed to 10x tempo. Emotional clarity replaces narrative complexity. In Southeast Asia and Latin America in particular, micro-dramas have become accessible entertainment for lower-income smartphone users with limited data plans or time. Light bandwidth, brief runtimes and emotional directness make them globally adaptable in ways prestige streaming often is not. As micro-dramas reshape storytelling grammar, traditional television faces recalibration. High-concept series such as Breaking Bad or Game of Thrones are likely to retain loyal audiences. But mid-tier shows may increasingly borrow from micro-drama logic. “We’re seeing split attention — people scrolling while watching TV,” Oh noted. “That means hour-long shows will pack in more frequent payoffs: twists, fights, shocks. It’s not a revolution, but an intensification of television’s existing strategies.” Long-form storytelling may begin to mirror short-form rhythms — faster cuts, sharper escalation and denser emotional triggers. Film faces a more uncertain path. On streaming platforms, the social discipline of the theater — no phones, no distractions — has weakened. To hold attention, films may simplify narratives and amplify spectacle. But the opposite scenario is plausible. As everything else shrinks, cinema could double down on scale: immersive sound, collective viewing and emotional grandeur. “Survival for film,” Oh suggested, “may depend on reminding audiences what ‘big’ really feels like.” In Seoul, telecom companies are already exploring micro-dramas as a subscription driver. Bundling short-drama platforms into mobile plans mirrors earlier streaming strategies: the more users watch, the longer they remain within an ecosystem. Production houses are investing heavily. Some operate industrial-scale studios churning out serialized one-minute episodes. Others experiment with generative AI tools to script dialogue and edit footage to algorithmic pacing. 2026-02-26 17:38:32
  • Chinas Seedance unleashes dispute on how far AI can go in fiction
    China's Seedance unleashes dispute on how far AI can go in fiction SEOUL, February 25 (AJP) - The release of Seedance 2.0, an AI-powered video generator developed by ByteDance, has triggered a fresh wave of copyright disputes between technology firms and the global entertainment industry amid blurry border in the fictional realm. After users began circulating AI-generated clips featuring characters resembling Spider-Man and Deadpool, major studios including Disney and Paramount Pictures issued cease-and-desist letters, accusing the platform of enabling large-scale copyright infringement. To assess the legal and regulatory implications, AJP spoke with leading legal scholars in Asia, Europe, Australia, and the United States. Their views suggest that the controversy sits at the intersection of unsettled law, rapid technological change, and growing pressure for industry self-regulation. Training Data vs. Copyrighted Expression Park Kyung Sin, a professor of law at Korea University, draws a crucial distinction between learning from copyrighted material and reproducing it. “Whether AI can claim authorship is a separate question from whether it should be allowed to train on copyrighted works,” Park said. “Copyright protects expressions, not ideas.” In his view, most AI training resembles human learning. “AI does not retain books, films, or images as such. It retains statistical relationships between tokens. Just as a human can read a book and absorb its ideas without infringing copyright, a machine should be able to do the same.” However, Park cautions that the technical process itself may pose legal problems. “The tokenization process involves copying copyrighted works. Technically, that can constitute infringement. Courts are now debating whether this copying qualifies as fair use.” U.S. courts have reached mixed conclusions, while some European rulings have taken a more restrictive stance. More troubling, Park argues, is Seedance’s apparent ability to reproduce recognizable characters. “If Seedance retains and reproduces complete images of Spider-Man on demand, that is clearly infringement,” he said. “ByteDance can and should install filters to block outputs that replicate training material.” He added that while parody and satire can sometimes justify reuse, mass automated reproduction does not. Who Owns AI-Created Works? Ilanah Fhima, professor of intellectual property law at University College London, points to deep international uncertainty over authorship. “There is no global consensus on whether copyright should exist in AI-generated works,” she said. “Most copyright laws were written before this technology existed.” Copyright traditionally rests on human originality. That assumption is now under strain. “The U.S. has refused to recognize AI as an author,” Fhima noted. “The UK, however, has long recognized ‘computer-generated works,’ although this has not yet been tested in modern AI cases.” China has issued rulings suggesting limited protection for AI-generated content, while other jurisdictions remain undecided. Another unresolved question concerns users. “There is an ongoing debate about whether the person who designs the prompt should receive copyright, based on their creative input,” Fhima said. These differences mean that cases against platforms like ByteDance could set precedents far beyond any single country. Fair Use and Platform Responsibility David Super, a professor at Georgetown University, sees multiple legal vulnerabilities in AI video tools. “First, training often involves physical copying,” he said. “That likely counts as copying under copyright law.” Whether such copying qualifies as fair use remains unclear. “Fair use usually requires that the copying not undermine the market for the original work,” Super explained. “If AI-generated videos substitute for movies or licensed clips, that argument weakens.” Beyond training data, Super highlighted the issue of secondary liability. “Selling technology that enables illegal copying can itself create liability,” he said, citing landmark U.S. cases involving video recorders and file-sharing software. While earlier rulings protected technologies with legitimate uses, later decisions imposed liability when companies encouraged infringement. “Many AI tools advertise themselves as ‘uncensored,’” Super said. “Courts may see that as encouraging copyright violations.” If so, manufacturers could be held responsible for how users deploy their products. Cultural Change and Platform Regulation Akshaya Kamalnath, professor at the Australian National University College of Law, argues that the debate extends beyond courtroom doctrine. “This is also a cultural shift,” she said. “AI clips often function more like memes than traditional films.” That distinction, she suggests, may push regulators toward platform-based solutions rather than relying solely on copyright lawsuits. Actors and performers, meanwhile, face separate risks. “Individuals can object to the unauthorized use of their likeness,” Kamalnath noted. “This overlaps with deepfake regulation.” In India, platforms must remove deepfakes within hours of receiving notices. Similar rules are emerging elsewhere. She also points to competitive pressures. “Companies are racing to release products first and fix problems later. This reflects competition not only between firms, but between countries.” The Rise of Industry Guardrails James Grimmelmann, professor of digital and information law at Cornell University, observes that many AI firms are now moving toward self-regulation. “There are still no definitive court rulings,” he said. “But most companies are building copyright guardrails into their systems.” These systems aim to block outputs involving identifiable characters, celebrities, or copyrighted scenes. “Seedance launched without strong safeguards,” Grimmelmann said. “ByteDance quickly realized that was risky and began adding them.” He believes such measures are now becoming standard. “Companies understand that without guardrails, they face serious legal exposure.” A Test Case for AI and Entertainment Taken together, experts agree that the most immediate legal danger for platforms like Seedance lies not in training data, but in output. Reproducing recognizable characters, enabling large-scale imitation, and marketing tools in ways that encourage infringement all carry significant risk. ByteDance has promised new safeguards, but has not paused the rollout of Seedance 2.0. At the same time, lawsuits against other AI firms signal that the conflict is far from isolated. The coming years are likely to determine whether courts accept the idea that AI “learns like humans,” or conclude that mass automated generation fundamentally alters creative markets. For now, the Seedance controversy stands as an early test of how law, culture, and technology will negotiate the boundaries of creativity in the age of machines. 2026-02-25 17:25:35
  • Defiant Trump vows to stand firm on tariffs despite Supreme Court ruling
    Defiant Trump vows to stand firm on tariffs despite Supreme Court ruling SEOUL, February 25 (AJP) - U.S. President Donald Trump on Tuesday signaled he would not back down on tariffs, despite a Supreme Court ruling against his tariff policy last week. "A very unfortunate ruling, but the good news is that almost all countries and corporations want to keep the deal that they already made..... knowing that the legal power that I as president have to make a new deal could be far worse for them, and therefore they will continue to work along the same successful path that we had negotiated before the Supreme Court's unfortunate involvement," he said during his first State of the Union address in his non-consecutive second term. The remarks came just several days after the U.S. Supreme Court struck down his sweeping global tariffs policy, ruling that Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose broad import duties was unlawful. The decision dealt a significant blow to one of the administration's signature economic initiatives. Undeterred, Trump wasted no time resorting to alternative measures such as Section 122 and Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962, threatening to reimpose global tariffs of up to 15 percent. He then doubled down further, declaring that import duties could one day replace income taxes even as his administration faces major legal and political obstacles to that vision. "As time goes by, I believe the tariffs paid by foreign countries will, as in the past, substantially replace the modern-day system of income tax," Trump said to applause from Republican lawmakers, claiming that such a shift would "take a great financial burden off the people that I love." "So despite the disappointing ruling, these powerful country saving - it's saving our country the kind of money we're taking in - peace protecting - many of the wars I settled was because of the threat of tariffs I wouldn’t have been able to settle them without - will remain in place under fully approved and tested alternative legal statutes," Trump said, adding that "congressional action will not be necessary." "And therefore, they will continue to work along the same successful path that we had negotiated before the Supreme Court's unfortunate involvement," he said. Trump's unwavering stance leaves uncertainty looming and complicates calculations, as tariff deals are not merely economic matters but are closely linked to national security and defense concerns. Earlier in the day, South Korean Ambassador to the U.S. Kang Kyung-wha said at a press briefing with South Korean correspondents in Washington, D.C., that Seoul has been "closely monitoring" the Trump administration's follow-up moves while supporting upcoming discussions with Washington, aiming to ensure they proceed "in a favorable atmosphere." Washington's trade community has also turned its attention to newly opened investigations under Section 301, with speculation mounting that the U.S. Trade Representative (USTR) could examine potential "discriminatory practices" against U.S. tech and digital platforms, including e-commerce giant Coupang, which claims it suffered unfair treatment during a probe related to its massive data leak late last year. Tuesday's address came after over a year of rapid deregulation, a record number of executive actions, and a turbulent political climate marked by mass layoffs, aggressive immigration enforcement, and a partial shutdown at the Department of Homeland Security. While Trump used the address to project confidence in his economic stewardship ahead of November's U.S. midterm elections, recent polls suggest public opinion remains divided. A PBS News/NPR/Marist survey found that 60 percent of Americans believe the country is worse off than a year ago, compared with 40 percent who say it has improved. 2026-02-25 15:49:54
  • Vice FM Kim pledges inter-Korean dialogue on humanitarian issues at UN rights council
    Vice FM Kim pledges inter-Korean dialogue on humanitarian issues at UN rights council SEOUL, February 24 (AJP) - Seoul will pursue inter-Korean dialogue to address humanitarian issues such as family reunions and the return of detainees, Vice Foreign Minister Kim Jin-a said Monday at the United Nations Human Rights Council. In a keynote address to the council’s 61st session in Geneva, Kim said the government would work closely with the international community to achieve “practical” improvements in the human rights of North Korean residents. “It will pursue inter-Korean dialogue to resolve humanitarian issues such as separated families, abductees, detainees and prisoners of war,” the Foreign Ministry said in a statement, quoting Kim. She also reaffirmed South Korea’s commitment to its role as a council member for the 2025–2027 term, pledging to help promote global norms for stronger protection and advancement of human rights. Kim highlighted Seoul’s efforts to narrow social and development gaps arising from new technologies, including artificial intelligence, as well as challenges related to youth, climate change, digital innovation, welfare and healthcare. She voiced support for international action to eliminate conflict-related sexual violence, noting that South Korea remains committed to restoring the honor and dignity of victims of Japan’s wartime sexual slavery. Kim also introduced a recent amendment to the Comfort Women Victims Protection Act, which aims to strengthen protections against the spread of false information about survivors. During her visit to Geneva from Feb. 23 to 25, Kim met with UN Deputy High Commissioner for Human Rights Nada Al-Nashif to discuss cooperation on North Korean human rights and South Korea-led priorities on technology, local governance and human rights. She also held talks with International Committee of the Red Cross Secretary General Pierre Krähenbühl, with both sides agreeing to strengthen cooperation amid growing humanitarian crises linked to global armed conflicts. 2026-02-24 16:41:14
  • AI reckoning: when Chinese algorithms start making movies
    AI reckoning: when Chinese algorithms start making movies SEOUL, February 23 (AJP) - When clips of Spider-Man crouching on a rain-soaked Shanghai skyline and Deadpool delivering punchlines in fluent Mandarin began circulating on Chinese social media last month, Hollywood C-suite were impressed. Then they panicked. The videos were generated by Seedance 2.0, an artificial intelligence tool developed by ByteDance, the parent company of TikTok. With a short line of text, users could summon short films complete with soundtracks, camera movement and dialogue — often featuring copyrighted characters. Within days, major studios were drafting cease-and-desist letters. It was not the first time generative video technology had unsettled the film industry. Tools such as Sora, Runway’s Gen-3 Alpha and Pika had already previewed a future in which movies could be produced from prose. But Seedance struck a deeper nerve — not only for its technical quality, but for how easily it collapsed the boundary between fandom, piracy and production. When Seedance-generated clips featuring Marvel and Pixar characters went viral, Disney and Paramount accused ByteDance of facilitating copyright infringement. Japan’s Agency for Cultural Affairs soon opened an inquiry after anime-style shorts appeared online without authorization. ByteDance said it was strengthening safeguards. The dispute echoes earlier battles in the West. In 2023, The New York Times sued OpenAI and Microsoft over training data. A year later, Reddit filed suit against Perplexity over unauthorized scraping. Together, the cases expose a growing contradiction: media companies condemn unlicensed data use, even as they quietly integrate AI into their own production pipelines. Disney, according to industry sources, has since signed a licensing agreement with OpenAI’s Sora worth roughly $1 billion. Protest and participation now coexist. Beneath the legal disputes lies a more unsettling question: Is artificial intelligence creating anything at all? “If a user is required to initiate the process, then the AI has not really created the film,” said Gwen Grewal, a philosopher at The New School for Social Research. “It has compiled it. Like a production manager or editor.” Without consciousness, she argues, there is no intention — and without intention, no true authorship. Grewal traces the issue to existential philosophy, from Heidegger to Sartre, which links creativity to human awareness of limits. “People are born into systems they did not choose,” she said. “But they know they can become something more. Does AI have that impulse? Can it reject its own work? Can it care if it fails?” Seedance can generate surprises, even for its engineers. But it cannot “mean” what it produces. That distinction, she suggests, may define the boundary between creation and computation. Not everyone in the film world sees AI as an existential threat. “I don’t think directors have much to fear,” said Shin Haerin, a professor at Korea University’s College of Media and Communication. “What AI cannot replicate is intention,” she said. “That will become more valuable, not less.” She compares the shift to fashion. “As we distinguish between ready-to-wear and haute couture, cinema will divide between automated content and intentional filmmaking.” In this view, AI will dominate fast, disposable entertainment — short clips, personalized stories, viral visuals — while human filmmakers retreat into slower, more deliberate work. Polish will matter less than purpose. That Seedance emerged from Beijing is no accident. Over the past year, China has placed generative AI and robotics at the center of national strategy, investing heavily in chips, automation and algorithms. The rise of Seedance follows the breakthrough of DeepSeek, which became the most-downloaded free app in the U.S. Apple Store in 2025, briefly overtaking ChatGPT. Together, they signal China’s ambition to compete not just in manufacturing, but in cultural technology. For Beijing, AI is also a soft-power tool. By enabling users to generate cinematic content in Mandarin, Cantonese and minority languages, platforms like Seedance could reduce reliance on Hollywood imports and strengthen domestic entertainment ecosystems. What begins as hobbyist creativity may evolve into a parallel film industry. Seedance 2.0 has not ended cinema. Nor has it solved creativity. But it has exposed how fragile the old boundaries have become — between studio and fan, artist and algorithm, inspiration and imitation. In the coming years, the central question may no longer be whether AI can make films. It will be whether audiences still care who made them. 2026-02-23 18:08:18
  • Ju-ae or Ju-hae? Name debate over North Koreas young heiress
    Ju-ae or Ju-hae? Name debate over North Korea's young heiress SEOUL, February 23 (AJP) - North Korean leader Kim Jong Un on Sunday was re-elected as general secretary of the ruling Workers' Party of Korea, reaffirming the supreme-leader status he has held since 2012. But what has increasingly drawn international attention is not Kim himself, but his brash, omnipresent teenage daughter. The confident, bubbly-looking girl has frequently appeared at her father’s side in recent years, prompting North Korea watchers to speculate that she could be an unconventional choice as the country’s next ruler — breaking with a succession system that has passed power from father to son for three generations. South Korean intelligence authorities estimate her age at 12 to 13, while foreign analysts put it at around 13 to 14. Now, even her name has become a matter of debate. The girl has so far been widely known as Ju Ae, but some close observers believe her real name may be Ju Hae. According to a senior government official, intelligence agencies are verifying the reports that the young girl is playing an unofficial role comparable to “director of the Missile General Bureau” within the regime. They have been closely following the ninth party congress under way in Pyongyang since Feb. 19 for signs of her growing political presence. Kim Ju Ae — or Ju Hae — has increasingly accompanied her father to key weapons tests, fueling speculation about an emerging hereditary succession plan. One intelligence source said she is believed to be receiving briefings and issuing directions to some officials, in place of Jang Chang-ha commanding the missile bureau. Earlier this month, South Korea’s National Intelligence Service briefed lawmakers that Kim’s daughter had entered what it called the “succession designation stage.” The agency said she has begun expressing views on certain state policies, a possible sign of her rising influence. She first drew international attention in 2013, when former NBA star Dennis Rodman told The Guardian that he had “held baby Ju Ae” during a visit to North Korea. Defector testimonies, including that of former diplomat Ryu Hyun-woo, have also cited “Ju Ae” as Kim’s chosen name for his second child, allegedly meaning “one who is loved by all.” However, alternative versions such as “Ju Ye” and “Ju Hye” have circulated for years, and analysts now believe her name may have been altered after she was designated as a successor. Kim Jong Un himself is known to have changed the Chinese character of his given name in 2009, when his own succession path began. For years, Kim Ju Ae was believed to be the second of Kim Jong Un and his wife Ri Sol Ju’s three children, though neither the total number nor their birth order has ever been publicly confirmed. She remains the only child acknowledged through state media appearances. Since her first official appearance alongside her father at an intercontinental ballistic missile launch in November 2022, she has featured prominently at military parades and official banquets. By early 2023, state outlets began referring to her as the “respected daughter,” an honorific previously used for Kim himself before his leadership was announced. By January 2024, the NIS identified her as the “most likely successor,” while cautioning that “many variables” remain, given Kim’s relatively young age and North Korea’s patriarchal political culture. Her expanding public role — and recent intelligence suggesting her name may be Kim Ju Hae — indicates that Pyongyang may be quietly preparing for a fourth-generation transfer of power under the Kim dynasty. Whether that process will include formally recognizing her new name remains one of the regime’s closely guarded secrets. 2026-02-23 14:40:29
  • The heat is on Seoul as Tokyo gets a head start on U.S. investment
    The heat is on Seoul as Tokyo gets a head start on U.S. investment SEOUL, February 20 (AJP) - Japan has moved swiftly to translate its pledged $550 billion investment commitment to the United States into concrete projects, unveiling an initial $36 billion package centered on energy, infrastructure and critical materials — areas closely aligned with Washington’s strategic priorities — while Seoul remains mired in legislative gridlock. President Donald Trump welcomed the announcement, publicly praising Tokyo’s commitment and reiterating his March 19 invitation to the Japanese leader, whose political authority was recently reaffirmed through a high-stakes snap election. The rollout marks the first major tranche under Prime Minister Sanae Takaichi’s U.S.-focused investment strategy, which links capital deployment directly to diplomatic and trade objectives. Infrastructure-focused investment package At the core of the package is a $33 billion natural gas power plant in Portsmouth, Ohio, led by SB Energy, a subsidiary of SoftBank Group. The 9.2-gigawatt facility is expected to become the largest of its kind in U.S. history and is designed to address surging electricity demand from AI data centers. Additional projects include a $2.1 billion investment in the GulfLink deepwater oil export terminal off Texas, aimed at expanding U.S. crude exports to Asia, and a $600 million synthetic diamond facility in Georgia by De Beers’ Element Six, intended to strengthen U.S. production of industrial materials now dominated by China. Japan’s Economy and Industry Minister Ryosei Akazawa described the selections as “win-win,” noting that more than 16 Japanese companies, including Toshiba, Hitachi and Mitsubishi Electric, are preparing to participate as suppliers and partners. He also pledged close coordination with Washington on a second tranche during Takaichi’s planned visit to the United States in March. The structure of the package reflects Washington’s priorities. As AI expansion strains power grids and geopolitical tensions reshape supply chains, energy infrastructure and critical materials have become central to U.S. economic security. Rather than broad pledges, Tokyo presented projects that directly address these bottlenecks, reinforcing its position as a strategic partner. Korea left behind The fast and systematic move by Tokyo has placed Korea in a laggard position. Seoul has announced plans for large-scale U.S. investments in nuclear power, shipbuilding, energy and advanced manufacturing. However, progress has been slowed by legislative delays and the absence of a comprehensive institutional framework. The National Assembly’s special committee on U.S. investment has yet to complete key groundwork, including passage of a special law to support overseas investment programs. Instead of forging consensus around a national strategy, political wrangling and blame-shifting have continued. Opposition People Power Party lawmaker Kang Seung-kyu criticized the government and ruling party for what he called their unilateral approach. “They cannot blame the People Power Party for the delay of the Special Act on Investment in the United States while they are pushing through other bills on their own,” he said. The ruling party, meanwhile, has repeated that the deal could undermine Korea’s competitiveness, without presenting a concrete strategy for securing favorable terms. “Automobile tariffs directly affect a large number of jobs in Korea,” Lee Un-ju, a Supreme Council member of the Democratic Party of Korea, said. “If Korea faces higher U.S. tariffs than Japan, Korean automobiles will lose competitiveness in the American market.” She added that as many as 1.5 million people depend directly or indirectly on the auto industry, stressing that “further parliamentary deadlock cannot be tolerated.” Washington’s expectations Yet the auto sector is not at the center of the investment framework Washington expects from Seoul. In the investment list posted on the White House website, Korea’s commitments are categorized mainly under energy and environment. Individual companies such as Hyundai Motor Group and Hanwha Ocean are expected to pursue separate manufacturing investments. From Washington’s perspective, credibility increasingly depends on institutional certainty — clear legal frameworks, budget commitments and bipartisan backing — rather than headline figures alone. Japan’s package combines infrastructure development, corporate participation and diplomatic engagement into a single framework. Energy projects resolve immediate bottlenecks, Japanese firms secure long-term roles, and political ties are reinforced. By contrast, Korea’s approach remains fragmented. While Seoul has outlined cooperation in energy, semiconductors and AI, it has yet to consolidate these initiatives into a unified package backed by legislation and long-term financing. U.S. officials have repeatedly emphasized that energy security, export capacity and supply-chain diversification are central to future cooperation. Countries that can deliver these elements in integrated form are better positioned in trade and tariff negotiations. Structure over scale The government has moved to accelerate talks, dispatching a working-level delegation to Washington this week to explore projects in nuclear power, shipbuilding and advanced industries. Ruling party leaders are also seeking ways to pass investment-related legislation despite opposition resistance. However, experts note that without a stable legal and fiscal framework, such efforts may appear provisional. Japan’s advantage lies not only in speed but in structure. Its investment package links public financing, private-sector participation and diplomatic coordination into a single system. For Korea, the challenge is to move beyond ad hoc negotiations and build similar institutional foundations — integrating power infrastructure with AI and semiconductor projects, energy investment with shipbuilding orders, and mineral supply with downstream processing. Stressing the urgency, Lee said, “Since the Special Act on Investment in the United States concerns the national interest, further parliamentary deadlock cannot be tolerated,” warning that “if the People Power Party keeps blocking this bill to the very end and fails to pass it, causing fatal damage to our economy, the party will face harsh judgment from the people in the upcoming local elections.” The legislative impasse, she admitted, is not the sole obstacle. “The Ministry of Land, Infrastructure and Transport and the Ministry of Trade, Industry and Resources are engaged in turf wars and passing the buck, which has stalled progress,” she said. For now, Seoul faces a growing list of homework, while Tokyo continues to earn points — and advance its national interests — in Washington. 2026-02-20 10:19:51
  • Korean president flags plan to move HMM to Busan soon
    Korean president flags plan to move HMM to Busan "soon" SEOUL, February 19 (AJP) -The proposed relocation of South Korea’s flagship shipping line HMM to Busan has returned to the spotlight after President Lee Jae Myung reiterated his commitment to the plan despite continued employee opposition. Lee wrote on social media platform X on Thursday that HMM would relocate to Busan “soon,” following the establishment of a maritime court and a state-backed investment corporation focused on Southeast Asian shipping routes. The move forms part of his broader pledge to turn the country’s second-largest city into a regional maritime hub. He also reposted an earlier roadmap by former oceans minister Chung Jae-woo, who is widely rumored to be preparing a run for the Busan mayoral race in June. Relocating HMM’s headquarters from Yeouido in western Seoul to Busan was one of Lee’s major campaign pledges. Although HMM is publicly traded, it remains heavily influenced by the state after receiving government support during the prolonged shipping downturn in the late 2010s. As of Thursday, government-affiliated entities controlled about 77 percent of its shares, including 35.42 percent held by Korea Development Bank, 35.08 percent by Korea Ocean Business Corporation, and 6.51 percent by the National Pension Service. HMM was effectively nationalized in 2016 after its former rival Hanjin Shipping collapsed and entered court receivership. The company returned to profitability in 2020, and privatization efforts began in 2023, but have yet to yield results. Given the government’s dominant stake, industry observers say the relocation could be pushed through if formally raised at a shareholders’ meeting. HMM’s articles of incorporation currently designate Seoul as its headquarters. Any relocation would require a revision approved by a two-thirds majority of attending shareholders at a general meeting. With government-related institutions holding nearly 70 percent of shares, approval would be likely if the agenda is submitted. According to investment banking sources, there are no clear signs yet that the board plans to place a charter revision on the agenda for the March shareholders’ meeting. However, an extraordinary board meeting could still be convened in late February or early March to do so. HMM’s land-based labor union has strongly opposed any relocation without prior consultation, warning of possible collective action. The union argues that moving the headquarters ahead of local elections, without sufficient review of operational efficiency and employee impact, would be unreasonable. About 800 employees currently work at the Yeouido headquarters. With amendments to labor laws scheduled to take effect in March, the possibility of large-scale strikes remains. Supporters argue that relocating HMM would strengthen Busan’s role as a maritime cluster and improve policy coordination among shipping firms, ports and regulators. Busan Port handled 22.95 million TEUs in 2023, ranking sixth globally. Critics counter that Seoul’s financial infrastructure and talent pool are essential for attracting high-value cargo and managing global networks. They point out that Maersk, the world’s second-largest shipping company, is headquartered in Copenhagen, Denmark’s political and financial center. As of the end of last year, more than 1,000 of HMM’s 1,824 employees were based in Seoul, mainly in management, sales and accounting. Shares of HMM ended Thursday up 5.83 percent at 22,700 won. 2026-02-19 16:32:42
  • Bonus polarization deepens as Lunar New Year exposes divide in Korean Inc.
    Bonus polarization deepens as Lunar New Year exposes divide in Korean Inc. SEOUL, February 13 (AJP) - As millions of South Korean breadwinners return home for the Lunar New Year, many do so with thinner envelopes and tighter wallets. This year’s Seollal holiday arrives amid an uncomfortable contrast: a red-hot stock market and record-breaking bonus payouts at a handful of corporate champions, even as a growing share of companies scale back seasonal bonuses. According to a survey by the Korea Enterprises Federation, 58.7 percent of companies paid Seollal bonuses this year, down 2.8 percentage points from 61.5 percent last year. The gap is particularly stark by company size. Among enterprises with more than 300 employees, 71.1 percent provided bonuses, compared with 57.3 percent of smaller firms. For workers at small and mid-sized businesses, the strain is palpable. The subdued holiday mood stands in sharp contrast to bonus windfalls at export powerhouses riding boom cycles in semiconductors and defense. Hanwha Ocean made headlines by granting a uniform 400 percent performance bonus based on monthly base salary to both in-house and subcontractor workers — a first for a major Korean shipbuilder. The decision reflects the shipbuilding sector’s resurgence and acknowledges that roughly 60 percent of production processes are handled by subcontractors. Previously, in-house employees received 150 percent bonuses in 2024, while partner workers received 75 percent. The equal payout this year was framed as an effort to strengthen labor-management harmony during a boom period. Kakao followed with bonuses of up to 9 percent of annual salary, slightly higher than last year’s 8 percent. The company posted record 2025 results, reporting 8.99 trillion won in revenue and 732 billion won in operating profit — a 48 percent increase — driven by growth of its KakaoTalk platform. Hanwha Aerospace offered bonuses of up to 700 percent of monthly base pay, varying by division, after three consecutive years of record profits. Its Land Systems division led with 725 percent, while other units exceeded 500 percent. The company reported 2025 revenue of 26.6 trillion won and operating profit of 3 trillion won. SK hynix Reshapes the Bonus Benchmark But it was SK hynix that reset expectations across corporate Korea. The chipmaker announced an unprecedented 2,964 percent performance bonus based on base salary under its excess profit-sharing system. For an employee earning 100 million won annually, that translates into roughly 148 million won in bonus pay alone. The payout follows a 2025 labor-management agreement allocating 10 percent of operating profit to performance sharing, removing the previous 1,000 percent cap. Eighty percent is paid upfront, with the remaining 20 percent distributed over two years. The move simplified a previously complex formula and linked bonuses directly to disclosed profits. With operating margins approaching 50 percent and 2025 revenue reaching 97.15 trillion won, SK hynix has emerged as Korea’s most profitable company — and its transparent profit-sharing model has intensified scrutiny elsewhere. The contrast has fueled unease at rival Samsung Electronics, long considered the gold standard for compensation. Samsung continues to base bonuses on Economic Value Added (EVA), a metric employees often criticize as opaque. Depreciation and capital cost adjustments can reduce payouts even in strong sales years, creating what some workers describe as a “black box.” Frustration has translated into organization. The Samsung Electronics branch of the Super-Large Company Union surpassed 63,000 members by late January 2026, up from 6,300 just four months earlier. Crossing the claimed majority threshold grants exclusive bargaining rights, setting the stage for potentially contentious wage negotiations. The widening compensation gap risks deepening structural imbalances across the labor market. While major exporters distribute record incentives, small and mid-sized enterprises struggle to compete. McKinsey survey data show 49 percent of Korean workers prioritize total compensation when choosing jobs. The average monthly salary at large firms stands at 5.93 million won — nearly double the 2.98 million won average at smaller companies. As talent gravitates toward high-paying conglomerates, smaller firms face what industry groups describe as a “recruitment black hole.” The Lunar New Year has traditionally been a time for shared prosperity and symbolic generosity. This year, however, bonus polarization underscores a broader economic divide — one that risks turning a season of reunion into a quiet reminder of inequality. 2026-02-13 15:57:36