Journalist

김동영
Kim Dong Young
  • South Korean central bank warns of stablecoin risks to financial stability
    South Korean central bank warns of stablecoin risks to financial stability SEOUL, June 25 (AJP) - South Korea’s central bank and the Bank for International Settlements (BIS) have raised fresh alarms over the systemic risks posed by the rapid rise of stablecoins, warning that widespread adoption could trigger destabilizing financial shocks and threaten monetary sovereignty. In its financial stability report released Wednesday, the Bank of Korea cautioned that stablecoins — cryptocurrencies pegged to traditional currencies — are vulnerable to abrupt mass redemptions or “coin runs” if public confidence in their reserve assets or price stability erodes. Such loss of trust could lead to "de-pegging" events, in which stablecoins detach from their fiat anchors, with potentially cascading effects on short-term funding markets and liquidity conditions at banks. The central bank emphasized that unlike traditional financial institutions, stablecoin issuers lack safeguards such as deposit insurance or access to lender-of-last-resort functions. The warning comes as South Korea presses forward with legislative reforms aimed at modernizing digital asset oversight — a key campaign pledge of President Lee Jae Myung. BOK Governor Rhee Chang-yong has repeatedly expressed concern that a premature or poorly regulated rollout could undermine monetary stability. The report also cited operational vulnerabilities, pointing to the absence of robust blockchain infrastructure and comprehensive regulation, which increase the risk of technical failures and illicit activity. For emerging markets and non-reserve currency countries such as South Korea, the growing use of dollar-pegged stablecoins could exacerbate exchange rate volatility and complicate capital flow management, the report said. The central bank warned that the mass adoption of such assets could weaken the effectiveness of domestic monetary policy by undermining currency credibility and reducing banks’ capacity for credit creation. The BIS echoed these concerns in a draft of its upcoming annual report, set to be released June 29, stating that stablecoins could dilute monetary sovereignty and introduce new transparency and capital flight challenges — especially in emerging economies. 2025-06-25 16:49:49
  • Stablecoins emerge as global financial trend
    'Stablecoins emerge as global financial trend' SEOUL, June 25 (AJP) - Stablecoins are no longer a passing fascination but a defining trend in global finance, Hana Securities said in a report Wednesday. The Seoul-based brokerage described the rise of stablecoins as a shift “from theme to trend,” signaling a structural change in how markets view these blockchain-based assets. The report pointed to a confluence of factors — regulatory reforms, growing institutional interest, and the possible issuance of won-backed stablecoins — that could accelerate South Korea’s transition into a more digitally integrated financial system. “Financial history has alternated between phases of centralization and decentralization,” said Kim Du-un, an analyst at Hana Securities. “We’re now in a transitional period where traditional and digital finance are beginning to coexist. While the balance of power remains unclear, these periods have historically offered rare opportunities — and stablecoins are emerging as one of them.” Stablecoins, typically pegged to government-issued currencies like the U.S. dollar or the euro, have gained popularity worldwide for enabling faster and cheaper transactions while mitigating the volatility often associated with cryptocurrencies like Bitcoin or Ethereum. The report comes amid a flurry of legislative activity in Seoul, where ruling Democratic Party lawmakers have introduced new digital asset bills that expand on President Lee Jae Myung’s campaign promises to modernize the country’s approach to cryptocurrency. South Korea’s regulatory posture is developing in parallel with moves in other major economies. In the United States, Congress passed an act on June 17 — its most comprehensive digital asset legislation to date — aimed at securing a strategic foothold in the global stablecoin market. While details of its coordination with existing financial laws remain under discussion, implementation is expected within the year. The European Union, meanwhile, has already adopted a regulation, which went into effect last year, laying the groundwork for cross-border compliance and investor protection in the bloc’s growing crypto markets. 2025-06-25 14:42:54
  • South Korea fails again in bid for MSCI Developed Market status
    South Korea fails again in bid for MSCI Developed Market status SEOUL, June 25 (AJP) - South Korea’s ambitions to join the ranks of the world’s developed financial markets faced another setback as MSCI declined once again to elevate the country from its emerging market classification. In its annual market classification review, the global index provider said South Korea would not be added to its watch list for a potential upgrade — effectively stalling any chance of reclassification until at least 2026. The decision also delays possible inclusion in the MSCI Developed Market Index to 2028 or beyond. “MSCI will continue to monitor the implementation and market adoption of measures to enhance the accessibility of the Korean equity market,” the firm said in a statement. The announcement follows a series of market reforms by South Korean authorities aimed at addressing longstanding concerns from global investors. In March, the government lifted a ban on short-selling, which had been in place since 2020, and implemented measures to curb illegal trading practices. Still, MSCI said these efforts had not gone far enough. “As a reminder, potential reclassification consultations require that all issues have been addressed, reforms have been fully implemented, and market participants have had ample time to thoroughly evaluate the effectiveness of the changes,” the firm said. South Korea has been classified as an emerging market since its inclusion in MSCI’s indices in 1992. It briefly appeared on the watch list for developed market consideration in 2008, only to be removed in 2014 due to what MSCI described as “insufficient progress” on market accessibility. The latest review underscores the complexity and high bar of MSCI’s evaluation criteria. While the index provider last week upgraded South Korea’s short-selling accessibility rating from negative to positive, six other categories — including liberalization of the foreign exchange market, investor registration, and settlement infrastructure — continue to receive negative assessments. MSCI noted that, despite recent reforms to South Korea’s foreign exchange regime, “operational difficulties persist in registration procedures, and the limited use of omnibus accounts and over-the-counter trading constrains the effectiveness of related measures.” In April, Kim Byoung-hwan, chairman of the Financial Services Commission, met with senior MSCI executives to advocate for the country’s upgrade and outline Seoul’s ongoing reform agenda. The meeting, however, appears to have had little effect on MSCI’s deliberations. 2025-06-25 11:01:19
  • South Korea to host US students in shipbuilding education program
    South Korea to host US students in shipbuilding education program SEOUL, June 24 (AJP) - South Korea will launch a new shipbuilding education program next year aimed at strengthening maritime industry ties with the United States by hosting American university students and faculty for short-term training. The initiative was announced Tuesday by the Ministry of Trade, Industry and Energy. Seoul National University, San Diego State University, and HD Korea Shipbuilding & Offshore Engineering signed a memorandum of understanding, outlining plans for collaborative education and training. Under the agreement, Seoul National University will host between 20 and 30 students and faculty members from U.S. institutions annually, beginning in 2026, for short-term engineering programs focused on shipbuilding. The two countries also committed to expanding the scope of the program to include shipyard design professionals. The new agreement builds on a similar trilateral accord signed last July between Seoul National University, the University of Michigan, and HD Korea Shipbuilding & Offshore Engineering. The latest initiative comes as the United States seeks to rebuild its maritime capabilities, following decades of industrial decline in commercial shipbuilding. 2025-06-24 17:09:13
  • Consumer sentiment in South Korea hits 4-year high
    Consumer sentiment in South Korea hits 4-year high SEOUL, June 24 (AJP) - South Korea’s consumer confidence surged to a four-year high in June, lifted by optimism over the launch of a new government and expectations for a forthcoming supplementary budget, the central bank said Tuesday. The Bank of Korea reported that its Composite Consumer Sentiment Index (CCSI) rose to 108.7 in June, up 6.9 points from the previous month and marking the highest reading since June 2021, when the index reached 111.1. The latest increase represents the third consecutive monthly gain and reflects a sharp rebound from December, when the index plummeted 12.5 points following the declaration of martial law by then President Yoon Suk Yeol. Sentiment began to recover in April, when the index stood at 93.8. Analysts said consumer confidence has been bolstered by President Lee Jae-myung’s proposed supplementary budget, which is aimed at stimulating domestic consumption and reviving economic growth. All six sub-indices of the sentiment survey improved in June. The outlook for domestic economic conditions posted the largest gain, rising 16 points to 107. The index measuring current economic conditions climbed 11 points to 74. Expectations for housing prices also surged, with that index jumping 9 points to 120 — its highest level since October 2021, when it hit 125. The monthly increase was the sharpest in more than two years. 2025-06-24 16:13:32
  • Former Naver executives steer President Lee Jae Myungs AI policy
    Former Naver executives steer President Lee Jae Myung's AI policy SEOUL, June 24 (AJP) - President Lee Jae Myung has appointed former top executives from Naver to senior government posts, signaling a shift toward industry-driven policymaking as the country seeks to accelerate its ambitions in artificial intelligence. Ha Jung-woo, 48, the former head of AI innovation at Naver Cloud, was named the first Chief of AI Future Planning within the presidential office on June 15. A deep learning specialist, Ha had led the development of advanced AI technologies at Naver and was a vocal proponent of building “sovereign AI” — domestically developed AI systems tailored to national priorities. In his inaugural press briefing, Ha underscored the need for cross-ministerial collaboration, describing AI development as a “strategic imperative” for South Korea’s economic and technological independence. President Lee also nominated Han Seong-sook, 58, a pioneering figure in South Korea’s internet industry, as Minister of SMEs and Startups. Han served as Naver’s chief executive from 2017 to 2022 — the first woman to hold the role — overseeing a critical period of expansion into mobile platforms, fintech, and overseas markets. Under her leadership, the company launched Naver Pay, scaled its global webtoon business, and surpassed 6 trillion won (about $4.3 billion) in annual revenue during the COVID-19 pandemic. The appointments reflect a broader departure from the traditional practice of staffing key policy roles with bureaucrats and academics. Instead, President Lee's administration is turning to private-sector technologists with hands-on experience to help shape the country’s digital future. Industry analysts say the move aligns with Lee’s campaign pledge to develop a homegrown AI model, positioning South Korea as a leader in next-generation technologies while reducing dependence on foreign platforms. 2025-06-24 15:26:22
  • Mideast tensions jolt financial markets
    Mideast tensions jolt financial markets SEOUL, June 23 (AJP) - South Korea’s main stock index dropped below the 3,000-point threshold on Monday as rising geopolitical tensions in the Middle East unsettled global financial markets and triggered a sharp sell-off by foreign investors. The benchmark KOSPI fell 30.71 points, or 1.02 percent, to 2,991.13 as of 10:31 a.m. in Seoul, slipping back below the key psychological level it had reclaimed on June 20 for the first time in more than three years. The decline came in the wake of U.S. airstrikes on Iranian nuclear facilities over the weekend, marking a dramatic escalation in the simmering conflict between Washington and Tehran. The strikes — authorized by U.S. President Donald Trump just days after issuing an ultimatum to Iran — prompted fears of broader regional instability and energy supply disruptions. Foreign investors were at the forefront of Monday’s sell-off, dumping 358.4 billion won, or about $260 million, worth of shares. Institutional investors followed suit, offloading 522.5 billion won. Currency markets also reflected the growing unease. The South Korean won weakened sharply, rising 6.5 won, or 0.47 percent, to 1,383.0 per dollar as of 10:47 a.m. The won had opened 9.4 won higher at 1,375.0, extending losses as investors sought refuge in dollar-denominated assets. Global energy markets were quick to react to the turmoil. West Texas Intermediate crude futures for August delivery jumped 2.60 percent to $75.76 per barrel, driven by fears that Iran’s retaliatory move to close the Strait of Hormuz — a vital conduit for global oil shipments — could choke off supplies. The renewed volatility underscores South Korea’s economic vulnerability to geopolitical shocks, particularly those threatening the flow of Middle Eastern oil, which accounts for a significant portion of the country’s energy imports. Analysts warn that sustained disruption in the region could ripple through the broader economy, weighing on corporate earnings, consumer sentiment, and inflation. 2025-06-23 14:00:13
  • Closure of Hormuz Strait likely to imperil South Koreas energy lifeline
    Closure of Hormuz Strait likely to imperil South Korea's energy lifeline SEOUL, June 23 (AJP) - Iran’s parliament has approved a measure to close the Strait of Hormuz, raising the specter of a severe energy crisis in South Korea. The move, seen as retaliation for recent U.S. military strikes on Iranian nuclear facilities, threatens to sever a critical artery through which nearly 70 percent of South Korea’s crude oil imports flow. The narrow waterway, wedged between Iran and Oman, is one of the world’s most strategic maritime chokepoints. It serves as the primary conduit for oil from major Middle Eastern producers — including Saudi Arabia, Kuwait, and the United Arab Emirates — most of which must transit through the strait to reach Asian markets. “Virtually all of South Korea’s Middle Eastern crude passes through Hormuz,” said an energy analyst in Seoul. “A shutdown would have immediate and far-reaching consequences for the Korean economy, especially in energy-intensive sectors.” About 99 percent of Middle Eastern oil shipments to South Korea are routed through the strait, underscoring the country’s acute vulnerability to geopolitical shocks in the Persian Gulf. The latest escalation sent crude oil prices sharply higher over the weekend, as markets absorbed the implications of a potential shipping blockade. Domestic gasoline and diesel prices in South Korea, which had been declining for over a month, reversed course, with traders pricing in fears of prolonged supply disruptions. The surge is already squeezing corporate margins and curbing consumer spending. Officials in Seoul convened emergency meetings over the weekend to weigh contingency measures. The government is exploring alternative supply routes and strategic reserve deployments, but officials privately concede that few viable options exist should the strait remain closed for an extended period. The industrial sector is likely to be the hardest hit. South Korea’s sprawling network of refineries, petrochemical complexes, and steel mills — most of which rely heavily on imported crude — could face production curtailments within weeks, analysts warned. Key export engines such as semiconductors and automobiles would also feel the ripple effects. Construction firms, many of which depend on large-scale contracts in the Middle East, are watching the situation with growing unease. South Korean companies secured $5.64 billion in regional projects from January through May, accounting for nearly half of their total overseas orders, according to the International Contractors Association of Korea. Economists warn that the crisis could not have come at a worse time. With global growth forecasts hovering around 2 percent and inflationary pressures mounting, a sustained oil price shock could tip South Korea’s economy into stagflation. Some projections suggest GDP growth could fall below 1 percent if military confrontation in the region intensifies. “This is no longer a distant geopolitical risk,” one Seoul-based economist said. “It’s a direct threat to Korea’s economic stability.” 2025-06-23 10:50:21
  • South Korea unveils plan to build own ChatGPT, Gemini competitor
    South Korea unveils plan to build own ChatGPT, Gemini competitor SEOUL, June 20 (AJP) - South Korea has unveiled an ambitious national initiative to develop its own artificial intelligence foundation model, aiming to reduce reliance on U.S. tech giants and establish a competitive foothold in the fast-evolving global AI race. The Ministry of Science and ICT said Friday it will accept applications from domestic AI consortiums through July 21 to participate in the project, which seeks to build a “Korean GPT” — a large language model to rival OpenAI’s ChatGPT and Google’s Gemini. “We expect this to be the starting point for ‘AI for All,’ as South Korea’s top AI elite teams take on the challenge of developing a globally competitive, independent AI foundation model,” said Song Sang-hoon, deputy minister for ICT policy, in a statement. “This will help the nation leap forward as an AI powerhouse.” The initiative, part of a broader policy roadmap presented Wednesday to the National Policy Planning Committee, aligns with President Lee Jae-myung’s campaign pledge to establish a domestically developed AI model designed for universal access and tailored to Korean linguistic and cultural needs. Up to five consortiums will be selected in the first phase, receiving government-provided resources including graphics processing units (GPUs), curated datasets and infrastructure support. The selected teams will be tasked with building both large language models and multimodal AI systems. The government has set an ambitious benchmark: models must perform at least 95 percent as well as leading global counterparts released within the prior six months. An initial evaluation will take place in December and will include a competitive showcase judged by both the public and AI experts. 2025-06-20 16:03:32
  • South Korea extends bidding deadline for controversial offshore gas project
    South Korea extends bidding deadline for controversial offshore gas project SEOUL, June 20 (AJP) - South Korea has extended the bidding deadline for international energy companies to join its contentious East Sea offshore gas development project, as foreign firms seek assurances about the new administration’s stance on an initiative spearheaded by the previous government. The state-run Korea National Oil Corporation (KNOC) has delayed the original June 20 deadline by several weeks, industry officials said, following requests from interested bidders for more time. The extension is expected to be formally announced through Onbid, the public auction platform managed by the Korea Asset Management Corporation. The delay comes as international oil majors weigh the commitment of President Lee Jae-myung’s administration to the project, which has drawn sharp political scrutiny. While more than 10 overseas companies have reportedly reviewed KNOC’s exploration data since bidding opened on March 20, industry experts say the future of the project remains clouded by political transition. President Lee, who took office on June 4, was a vocal critic of the gas field initiative during his campaign, labeling it a “scam” and questioning the economic viability of a project closely associated with former President Yoon Suk-yeol. The administration has yet to articulate a clear position on whether it will support continued development. KNOC drilled independently at the field’s most promising structure — known as “Blue Whale” — between December and February, but the Ministry of Trade, Industry and Energy later confirmed the site failed to yield commercially viable hydrocarbon reserves. Now, under pressure to reduce its own financial exposure, the debt-laden KNOC is courting foreign investment and technical expertise for a second phase of exploration. The company hopes to attract up to 49 percent equity participation from international partners to investigate other potentially productive structures within the offshore block. Energy analysts say foreign bidders are likely to demand policy clarity before committing to a project that could require hundreds of millions of dollars in upfront investment and years of exploration. 2025-06-20 13:59:47