Huawei's New Semiconductor Strategy Amid U.S. Sanctions In March 2023, I attended a performance announcement at Huawei's headquarters in Shenzhen, China. More striking than the performance figures was the plum blossom theme that adorned the venue. The flower symbolizes resilience and nobility. Huawei CEO Xu Zhi Jun's remark, "The fragrance of the plum blossom comes from enduring the harsh winter," seemed to reflect the company's determination to overcome stringent U.S. sanctions. However, I couldn't shake the question: Can Huawei truly navigate these challenges? Three years later, that question seems to be fading. Recently, Huawei unveiled its so-called "Tao's Law," which resembles a plum blossom that has bloomed after enduring the cold. Despite being blocked from accessing advanced extreme ultraviolet (EUV) lithography equipment due to U.S. sanctions, Huawei has proposed a new direction for semiconductor processes that enhances chip performance. The core of this approach shifts away from Moore's Law, which focuses on making transistors smaller to boost performance. Instead, it optimizes the entire internal circuit and data transmission structure of chips to reduce signal transmission time. The term "Tao" is derived from the physics term "tau (τ)," which represents the time constant for electrical signal transmission. Tao's Law is the brainchild of He Tingbo, head of Huawei's semiconductor design division, HiSilicon. Within Huawei, it is also referred to as "He’s Law" in honor of He. He Tingbo has drawn inspiration from the ancient Chinese irrigation system, Dujiangyan, built over 2,300 years ago. This system was scientifically designed to redirect water flows to prevent flooding rather than blocking rivers, and it remains in use today. He stated, "Dujiangyan was completed in an environment lacking electricity, Newton's laws, and mechanical equipment. There is no reason why today's Huawei engineers cannot find solutions." In fact, Huawei has sought new alternatives against U.S. sanctions through semiconductor process design, packaging, system architecture, and software optimization. This reflects the wisdom of Dujiangyan: if you cannot block the river, change its course. Such solutions did not emerge overnight. Last year alone, Huawei invested 192.3 billion yuan (approximately $42 billion) in research and development. Over the past decade, total investments have exceeded 1.38 trillion yuan. Even during the peak of U.S. sanctions, Huawei did not reduce its technological investments. This resilience is rooted in Huawei's unique sense of crisis. In early 2001, founder Ren Zhengfei published a lengthy piece in the company’s internal media titled "Huawei's Winter." At that time, Huawei was rapidly growing as a leading telecommunications company in China, but he warned, "It is spring now, but winter is not far off." This message emphasized the need to prepare for crises during times of success. The company has endured the 2008 global financial crisis and the comprehensive U.S. sanctions that began in 2019. Today, "Huawei's Winter" is considered essential reading among Chinese business leaders. Recently, the semiconductor industry in South Korea has thrived amid an AI boom. However, the semiconductor cycle is inherently repetitive. Today's prosperity does not guarantee tomorrow's success. Another winter will inevitably come. Will we be able to endure like the plum blossom? Can we apply the wisdom of Dujiangyan?* This article has been translated by AI. 2026-06-04 08:00:00

Oh Se-hoon Takes Lead in Seoul Mayoral Race After Initial Deficit Oh Se-hoon, the People Power Party candidate for Seoul mayor, surged to first place around 7:16 a.m. on June 4, overtaking Democratic Party candidate Jeong Won-o. Oh's comeback came approximately 13 hours after polls closed, overcoming a 5.4 percentage point deficit reported by the three major broadcasters (KBS, MBC, SBS) in their exit polls. According to the National Election Commission, as of 7:45 a.m., Oh had secured 48.80% of the votes, slightly ahead of Jeong's 48.48%. Oh, who had trailed Jeong by more than 10 percentage points earlier, dramatically reversed the situation in the morning and has since widened the gap. Reports indicate that Oh is currently moving from his home, where he watched the vote counting, to the election camp's counting room in Jongno-gu, Seoul. Meanwhile, on the previous day, several polling stations in Seoul, including the second polling station in Jamsil 7-dong, Songpa-gu, faced a shortage of ballots, leading some voters to leave without casting their votes. The National Election Commission responded by urgently supplying additional ballots to ensure voters could still participate after 6 p.m. However, the People Power Party expressed concerns that some voters' rights were infringed upon. The National Election Commission acknowledged the issue, stating, "We take full responsibility" and apologized to the public, but clarified that the ballot shortage does not meet the criteria for a re-election.* This article has been translated by AI. 2026-06-04 07:51:00

CENTCOM: Iran's Missiles Fail to Hit Targets in Kuwait The U.S. Central Command (CENTCOM) reported that Iranian missiles failed to hit their intended targets in Kuwait. This statement comes after Iran claimed to have attacked U.S.-related facilities in the Gulf region, which the U.S. denied, stating there were no American casualties. On June 3, CENTCOM posted on X (formerly Twitter) that "Iran launched several ballistic missiles toward regional nations, but none struck their intended targets." According to CENTCOM, two missiles fired by Iran toward Kuwait either fell short or disintegrated mid-flight. Three missiles aimed at Bahrain were intercepted by U.S. and Bahraini air defense systems. There were also drone attacks. CENTCOM explained that Iran launched three one-way attack drones at civilian vessels passing through regional waters, which were intercepted by U.S. forces. In response, U.S. forces struck a military ground control facility on Iran's Qeshm Island in an act of self-defense. Qeshm Island is a strategic location near the Strait of Hormuz. CENTCOM confirmed that there were no U.S. personnel casualties from the attacks. They also stated they are prepared to respond to Iranian aggression despite the ongoing ceasefire. The dispute over responsibility for the attack on Kuwait International Airport continues. Reuters reported that the Iranian drone and missile strikes damaged airport facilities, resulting in one death and over 60 injuries. The Iranian Revolutionary Guard claimed they did not target the airport and attributed the damage to U.S. interceptor missiles. In response, CENTCOM refuted this claim, stating, "Iran's assertion that it did not attack the Kuwait International Airport passenger terminal and that the damage was caused by U.S. missile interceptors is completely false."* This article has been translated by AI. 2026-06-04 07:42:00

U.S. Secretary of State Rubio: Sanctions Relief Linked to Iran's Nuclear Program U.S. Secretary of State Marco Rubio stated that any sanctions relief in negotiations with Iran must be contingent upon the country abandoning its nuclear program. He emphasized that simply reopening the Strait of Hormuz would not suffice for lifting sanctions. On June 3, during a House Foreign Affairs Committee hearing, Rubio denied speculation that the U.S. had proposed sanctions relief in exchange for reopening the Strait of Hormuz. He asserted, "For sanctions relief to be considered, Iran must abandon its enrichment of uranium and nuclear activities." Rubio explained, "Iran is under sanctions due to its enrichment of uranium and nuclear activities. If Iran relinquishes these and complies with an agreement, then sanctions relief will follow." This positions the nuclear issue as a priority over the Strait of Hormuz transit concerns. According to the Economic Times, Rubio also mentioned the weakening of Iran's military capabilities. He claimed, "Following military operations by the U.S. and Israel, Iran's navy, air force, air defense systems, and missile and drone launch capabilities have suffered significant blows." He further noted that Iran is facing severe economic challenges, including hyperinflation, currency devaluation, and fiscal pressures. Rubio indicated that any nuclear-related agreement with Iran would undergo congressional review. He stated that he would submit any relevant agreements to Congress in accordance with the Iran Nuclear Agreement Review Act (INARA) established in 2015. This implies that any agreement would not only be an executive announcement but would also require congressional scrutiny. According to the Associated Press, Rubio also addressed the situation in Lebanon. He mentioned, "The U.S. is mediating security discussions between Israel and Lebanon," and asserted that the Lebanese government must regain control over its territory and disarm Hezbollah. Regarding Greenland, he stated, "Defense discussions among the U.S., Denmark, and Greenland are ongoing." Rubio emphasized Greenland's importance in missile defense and Arctic security, noting that discussions are in a favorable position.* This article has been translated by AI. 2026-06-04 07:24:00

Jung Cheong-rae Delays Local Election Briefing as Seoul Mayor Race Tightens Jung Cheong-rae, the head of the Democratic Party's central election campaign committee, postponed a briefing scheduled for 7 a.m. on June 4 regarding the local election results. This delay is believed to be due to the close race for the Seoul mayoral election, where results have yet to be finalized. In a statement to the media, the Democratic Party announced, "We will inform you of the new briefing schedule as soon as it is set." While the party has achieved a significant victory in the elections, the Seoul mayoral race is proving to be highly competitive. Exit polls released the previous afternoon by three major broadcasters and JTBC indicated that Jung Won-oh, the Democratic candidate, was leading. However, as of 7:12 a.m. on June 4, the margin was only 4,059 votes. The counting in the Songpa district, where issues of poor vote management by the Election Commission have arisen, has been slower than in other areas, gradually narrowing the gap. Jung is expected to make a statement at his campaign office at 7:30 a.m. Meanwhile, Oh Se-hoon, the opposing candidate, successfully took the lead at around 7:17 a.m. The Seoul mayoral election is anticipated to be decided by a narrow margin, and the fallout from the Election Commission's vote management issues is likely to grow.* This article has been translated by AI. 2026-06-04 07:24:00

Goldman Sachs Raises KOSPI Target to 12,000, Citing Semiconductor Boom ◆Ajou Economic Key News ▷Goldman Sachs Raises KOSPI Target to 12,000, Citing Semiconductor Boom - Goldman Sachs has raised its 12-month target for the KOSPI index from 9,000 to 12,000, citing a boom in AI semiconductors and improved corporate earnings. - The firm assesses that there is approximately a 36% upside potential based on the current index, reinforcing its optimism about the South Korean stock market. - The AI semiconductor supply chain, led by Samsung Electronics and SK Hynix, is driving the rise of the Korean stock market, with South Korea and Taiwan identified as key drivers of the Asian market rally. - Goldman Sachs analyzed that the South Korean stock market has shown relative resilience against energy price shocks due to geopolitical risks in the Middle East. - However, the firm warned of increased risks of short-term overheating and corrections due to the influx of leveraged ETF funds and concentration in AI semiconductor stocks. ◆Major Reports from Previous Trading Day Meritz Securities: "Hyundai Mobis Expected to Benefit from Atlas Production... Target Price Up" - Meritz Securities has raised its target price for Hyundai Mobis to 900,000 won, maintaining a 'Buy' rating, reflecting the growth potential of its actuator business for the humanoid robot Atlas. - Hyundai Mobis plans to establish a local production base in the U.S. for the Atlas actuators, having acquired technology from Boston Dynamics, with revenue recognition expected to begin in 2027. - The company is expected to expand its business scope beyond actuators to include sensors and controllers, aiming to become a key supplier of core components for robots. - Meritz Securities anticipates that if Hyundai Mobis achieves its actuator production target of 350,000 units by 2028, it will generate 525 billion won in related revenue and 157.5 billion won in EBITDA. ◆Major Announcements After Market Close (June 3) ▷ S&P Upgrades LG Electronics' Credit Rating to BBB+ ◆Fund Trends (As of June 1, Excluding ETFs) Domestic Equity: -113.8 billion won Overseas Equity: -57.9 billion won ◆Key Schedule for Today (Thursday) South Korea - Foreign Exchange Reserves (May) United States - Layoff Numbers (May), Non-Farm Productivity (Q1), Unit Labor Costs (Q1) * This article has been translated by AI. 2026-06-04 07:21:00

Anthropic Selects Morgan Stanley and Goldman Sachs as IPO Underwriters AI startup Anthropic has reportedly chosen Morgan Stanley and Goldman Sachs as underwriters for its initial public offering (IPO). According to Bloomberg on June 3, Anthropic selected Morgan Stanley and Goldman Sachs to lead the IPO process, with JPMorgan Chase also participating in the deal. However, the listing procedures and conditions have yet to be finalized. Bloomberg noted that discussions are ongoing, and additional banks may join or details may change. Anthropic, Morgan Stanley, Goldman Sachs, and JPMorgan declined to comment on the matter. On June 1, Anthropic submitted a draft confidential securities registration statement to the U.S. Securities and Exchange Commission (SEC). The company may pursue its IPO after the SEC review, taking market conditions into account. The number of shares to be offered and the pricing have not yet been determined. The IPO could occur as early as October. Recently, Anthropic was valued at $96.5 billion (approximately 1.477 trillion won) during its latest funding round. Anthropic operates the chatbot Claude and is considered a major player in the generative AI market, alongside OpenAI, with significant investments from Amazon and Google. The company's actual financial structure and offering size are expected to be clarified after the public securities registration statement is filed.* This article has been translated by AI. 2026-06-04 07:18:00

Gmarket Cultivates Star Sellers Through Data and Promotions Gmarket is actively cultivating star sellers by discovering small brands, local producers, and new sellers with competitive products. On June 3, Gmarket announced that its category managers have collaborated with sellers to identify high-potential products, resulting in food brands that have been on the platform for less than two years reaching category leadership, and local agricultural products achieving sales in the tens of thousands. Gmarket supports the growth of new brands by analyzing sales data to suggest product assortments and pricing strategies, while also providing customer engagement opportunities through major promotions and live broadcasts. The processed food brand "Myeongjang," which joined Gmarket and Auction in 2024, has become a star seller in less than two years. The brand's kimchi stew, priced competitively at around 2,000 won per serving, aligns with the average price of processed foods in the mid-20,000 won range, leading to positive customer responses. Another notable example is "Saengsaeng Story," a seller representing the largest stevia tomato producer in the Buyeo region. Gmarket enhanced the visibility of their products during promotional events like Big Smile Day, resulting in transaction amounts of approximately 760 million won and 56,000 orders during the event period. The global robot vacuum brand MOVA has also expanded its customer base through Gmarket. By analyzing competing products, Gmarket's home appliance category manager planned exclusive benefits and supported promotional visibility, leading to sales of about 1.5 billion won for a single model during the first half of the Big Smile Day. Overall transaction amounts for the brand increased approximately 14 times compared to the monthly average. A Gmarket representative stated, "We are focused on discovering and nurturing small sellers and new brands with high growth potential. We will leverage the product planning capabilities of our category managers and various marketing assets to create more star sellers." Meanwhile, Gmarket has returned to a growth trend in gross merchandise volume (GMV) after launching a joint venture with AliExpress, following aggressive marketing and pricing investments. In March, GMV and average transaction prices increased by 12% and 10%, respectively, with similar trends continuing into April.* This article has been translated by AI. 2026-06-04 07:03:00

Trump to Attend G7 in France After UFC Event at White House Donald Trump, President of the United States, announced he will travel to France for the G7 summit after hosting a UFC event at the White House. He emphasized the event at the White House South Lawn, calling it an "unprecedented event in American history." On June 3, Trump posted on Truth Social, stating, "The UFC World Championship match at the White House South Lawn will be one of the most enjoyable nights in American history, and I will head to France for the G7 right after that." He claimed that while there have been low-profile fighting events at the White House in the past, none have featured the world's top athletes like this one. He added, "It has never been imagined that the best fighters, all champions, would compete in the people's house." The UFC event is set to be a major fighting spectacle at the White House South Lawn. Trump has publicly highlighted his connection with the UFC and is promoting the event in conjunction with the celebration of the 250th anniversary of American independence. The G7 summit in France will take place from June 15 to 17 in Évian. France is serving as the chair of the G7 this year, and the summit will address key issues such as the global economy, energy security, and geopolitical tensions. Trump's message combines domestic political events with his diplomatic agenda, showcasing the White House UFC event to rally his supporters while also preparing to engage on the international stage at the G7 summit.* This article has been translated by AI. 2026-06-04 06:36:00

New York Stock Market Declines Amid Middle East Tensions and Rising Oil Prices The New York stock market fell due to rising tensions in the Middle East and increasing oil prices. After reaching record highs, profit-taking occurred, and concerns that surging oil prices could disrupt inflation and interest rate forecasts dampened investor sentiment. On June 3, the Dow Jones Industrial Average closed down 620.72 points (1.21%) at 50,687.07. The Standard & Poor's 500 index fell 56.06 points (0.74%) to 7,553.72, while the Nasdaq composite dropped 239.92 points (0.89%) to 26,853.98. Middle East tensions have pushed oil prices higher, adding pressure to the stock market. Renewed airstrikes between the U.S. and Iran have destabilized a fragile ceasefire, raising concerns about potential disruptions in oil supply. Reuters reported that "the rise in oil prices could extend beyond energy costs, contributing to overall inflationary pressures, which weighed on the market." Interest rate forecasts have also been shaken. According to the CME FedWatch, financial markets now reflect a 41.1% chance of a Federal Reserve interest rate hike in December, a significant increase from 9.1% a month ago. The potential for prolonged conflict and the possibility of closing the Strait of Hormuz have heightened inflation concerns, making it more difficult for the Fed to lower rates. Sector performance was mixed, with technology and financial stocks struggling. The S&P 500 software and services index fell 4.0%, impacted by competitive concerns related to the artificial intelligence (AI) transition. Conversely, energy stocks rose significantly, benefiting from higher oil prices. AI semiconductor stocks showed relative strength, with the Philadelphia Semiconductor Index rising 1.4%. Companies like Marvell, Intel, Qualcomm, and SanDisk saw increases between 3.7% and 6.7%. However, among the seven major AI-related stocks, only Meta gained 4.2%, while the others declined. The strength in AI semiconductor stocks was not enough to offset the overall market downturn. In individual stock movements, asset management firms declined after Swiss Partners Group announced restrictions on an $8.6 billion private equity fund redemption, leading to drops of 3.9% to 4.2% for KKR, Blackstone, Blue Owl, and Ares Management. GameStop, however, rose 6.0% following a quarterly revenue increase and a $2 billion stock buyback announcement. Market breadth was weak, with declining stocks outnumbering advancing stocks by a ratio of 3.04 to 1 on the New York Stock Exchange. On the Nasdaq, declining stocks outnumbered advancing ones by 2.59 to 1. As concerns over rising oil prices and interest rate pressures resurfaced, the market closed lower despite some strength in AI semiconductor stocks.* This article has been translated by AI. 2026-06-04 06:33:00