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

Chinese ambassador urges Korea to reject protectionism, stresses value of China ties SEOUL, June 25 (AJP) - Chinese Ambassador to South Korea Dai Bing on Wednesday warned that the world is facing a period of historic upheaval and urged South Korea to stand firm against rising protectionism by maintaining close economic ties with China. Dai made the remarks during the Korea Economic Design Forum (KEDF), held at the CCMM Building in Seoul's Yeouido district. The event marked the seventh anniversary of Economic Daily and was co-sponsored by Aju News Corporation, the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, the Korea Employers Federation, and the Korea International Trade Association. "In the midst of this turmoil, economic globalization and international cooperation are facing strong headwinds," Dai said, referring to ongoing wars in Ukraine and the Middle East, as well as the United States' involvement that has, in his view, rattled the global order. "Unilateralism and protectionism are reemerging, and the momentum for global growth is weakening, leaving many economies grappling with serious challenges." He criticized Washington's trade policy for imposing sweeping tariffs on all trading partners, calling it harmful to the global economy and multilateral trade norms. "This approach has inflicted significant damage on the global economic order and has heightened uncertainty in global politics and the economy," he said. Dai emphasized that Beijing had taken firm countermeasures, aimed not only at defending China's legitimate interests but also at "safeguarding international fairness and justice." He added, "Objectively, this has also provided other countries with more time and space for negotiation." Although China and the U.S. have reached some tentative agreements, Dai cautioned that follow-through was essential. "The U.S. must act with credibility and sincerity in carrying out those results," he said. "Threats and pressure against China will not work." On South Korea–China relations, Dai said the two countries' economies are deeply connected through supply and industrial chains. He called both nations "important global economic players" and urged them to work together to defend free trade and stable supply networks. "Both sides should uphold principles and firmly oppose protectionism," he said. Dai also made a direct appeal to South Korean companies, framing China not as a competitor to avoid but as a market full of opportunity. "China's massive market, complete industrial system, and continued push for openness are powerful engines for bilateral cooperation," he said. "Investing in China means investing in the future. If you lose the Chinese market, you lose the foundation to talk about global strategy." 2025-06-25 15:55:25

PHOTOS: Korean War anniversary SEOUL, June 25 (AJP) - June 25 marks the 75th anniversary of the Korean War, which erupted in 1950. The conflict inflicted profound damage and enduring trauma upon the Korean populace, and its legacies — including the division of the peninsula and the lingering aftereffects of the Cold War — continue to shape the region. Below, we present a collection of photographs from the commemorative events held around this solemn anniversary. 2025-06-25 15:50:29

'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

Shinsegae's Jung Yong-jin tapped to lead Asia arm of Trump-linked Rockbridge Network SEOUL, June 25 (AJP) - Shinsegae Group Chairman Jung Yong-jin is expected to take the helm of Rockbridge Asia, a new regional branch of the Rockbridge Network -- a powerful conservative political organization closely tied to former United States President Donald Trump and several key figures in his potential second administration. Multiple sources in South Korea's business and investment banking circles confirmed on Wednesday that Jung has agreed to lead Rockbridge's Asia operations. The new division, based in Seoul, marks the group's first foray into global expansion. Jung's expected appointment is drawing attention amid the Lee Jae-myung administration's efforts to deepen ties with Washington ahead of a possible Trump return. The Rockbridge Network was founded in 2019 by current U.S. Vice President J.D. Vance and conservative commentator Christopher Buskirk. Known for its close alignment with Trump, the group includes Donald Trump Jr. and a range of high-profile players from Trump's previous administration. Among them are Tyler and Cameron Winklevoss, who reportedly donated one million dollars' worth of Bitcoin to Trump, as well as technology investor David Sacks and prominent conservative donor Rebekah Mercer. Also affiliated are current administration officials such as White House Chief of Staff Susie Wiles, Secretary of State Marco Rubio, Treasury Secretary Scott Besant, Commerce Secretary Howard Lutnick, Health and Human Services Secretary Robert F. Kennedy Jr., Director of National Intelligence Tulsi Gabbard, and Middle East envoy Steve Witkoff. The group's growing influence has attracted financial backing from major U.S. tech figures, including PayPal co-founder Peter Thiel and Tesla CEO Elon Musk. Rockbridge now aims to expand its political influence abroad, starting with Asia. South Korea has been selected as the hub for the region, with branches also planned in Taiwan and Japan. The expansion is widely viewed as a strategic effort to strengthen ties with U.S. allies in East Asia while building geopolitical leverage against China. Richard Tsai, chairman of Taiwan's Fubon Group, is expected to lead Rockbridge Taiwan, while Maeda Tadashi, chairman of the Japan Bank for International Cooperation (JBIC), will head the Japan branch. Jung will oversee the entire regional structure from the Seoul headquarters. Analysts see Rockbridge's launch in South Korea as highly significant. With the Lee administration expected to engage more actively with U.S. decision-makers on trade, North Korea, and regional security, Jung's leadership could offer a direct channel to key power centers in Washington. "Chairman Jung has been asked to take on the role at Rockbridge and is carefully considering whether to accept the offer," said one business source familiar with the matter. 2025-06-25 14:32:29

North Korea holds mass rallies against US on Korean War anniversary SEOUL, June 25 (AJP) - North Korea held a series of mass anti-United States rallies this week to mark the 75th anniversary of the outbreak of the Korean War, Pyongyang's state media reported on Wednesday. According to the official state-run Korean Central News Agency (KCNA), various unions organized rallies in Pyongyang and other regions on Tuesday and Wednesday. The events were part of what the North calls the “Day of Struggle Against U.S. Imperialism,” observed annually on Jun. 25. The regime observes the period from Jun. 25, when the Korean War started in 1950, to Jul. 27, the date of the Korean War armistice, as “Anti-U.S. Joint Struggle Month.” North Korea paused such rallies during U.S.-North Korea talks between 2018 and 2021 but resumed them in 2022 after its leader Kim Jong-un shifted his foreign policy stance. According to KCNA, as part of the events, participants viewed videos and exhibitions criticizing the U.S. for its role in the Korean War. The regime also encouraged its residents to visit historical sites linked to the U.S. during the Korean War. KCNA said that around 100,000 people including soldiers have visited a museum in South Hwanghae Province this year, which the North claims was the site of a U.S.-led massacre during the war. This year’s rallies come as U.S. President Donald Trump reportedly showed interest in resuming talks with Pyongyang recently, raising questions about whether the North will change its diplomatic stance toward the U.S. 2025-06-25 13:00:12

President Lee opens online platform to enhance communication with public SEOUL, June 25 (AJP) - President Lee Jae-myung has opened an online platform on Tuesday to gather and reflect public opinion on state affairs. According to the Presidential Office, the platform is to collect public opinion and questions on a wide range of national issues, including the economy, welfare, society, politics, diplomacy, and security via Google Forms. All submitted questions will be reported to the president. The presidential office stated that Lee plans to respond directly to those that reflect a strong public consensus or are deemed particularly timely. Lee also shared the Google Form link on his Facebook page, pledging to respond sincerely to public inquiries. "State affairs cannot be driven solely by discussions held at a desk. The people must be at the center of government," he wrote. "I will fulfill my promise to listen directly to the public and find answers in the field." The office added that it will continue to expand communication channels and deliver changes that people can notice in their daily lives. Meanwhile, Lee operated a similar platform during his tenure as leader of the ruling Democratic Party (DP), gathering public opinion on policy issues. 2025-06-25 12:58:16

Hyundai E&C enters Finnish nuclear market, eyes more opportunities in northern Europe SEOUL, June 25 (AJP) - Hyundai Engineering & Construction has taken a significant step into Northern Europe’s nuclear energy sector, signing a preliminary agreement to participate in a potential new nuclear power plant in Finland. The South Korean builder announced it had entered into an Early Works Agreement (EWA) on June 19 with Finland’s state-owned utility Fortum and Westinghouse Electric Company, the U.S.-based nuclear technology firm, in Helsinki. The agreement allows the consortium to begin preparatory work for a large-scale nuclear project, laying the groundwork for what could become a full-scale engineering, procurement, and construction (EPC) contract. The deal marks Hyundai E&C’s formal entry into the Finnish nuclear energy market and positions the company to play a central role in the deployment of Westinghouse’s AP1000 reactor, an advanced design featuring passive safety systems and modular construction. The AP1000 is already licensed and operating in the United States and China, with additional projects underway globally. “This partnership strengthens our role as a global EPC player and deepens our presence in the European energy market,” said Choi Young, head of Hyundai’s New Energy Division, who attended the signing ceremony at Fortum’s headquarters in Helsinki. Also present were Fortum Vice President Laurent Leveugle and Elias Gedeon, Senior Vice President at Westinghouse. The EWA enables the consortium to initiate key groundwork activities, including site assessment, permitting review, and detailed planning. It follows a two-year feasibility study led by Fortum, which in March named the Hyundai–Westinghouse team as its preferred partner for the project. For Hyundai, the Finland agreement is part of a broader push across Europe’s resurgent nuclear sector. The company is already engaged in Bulgaria’s Kozloduy 7 and 8 reactor planning and is actively pursuing projects in Slovenia and Sweden. The expansion builds on a 2022 strategic agreement with Westinghouse to jointly pursue AP1000 projects worldwide. 2025-06-25 11:07:21

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

Yoon's legal team denounces arrest warrant as special counsel ramps up investigation SEOUL, June 25 (AJP) - Former President Yoon Suk Yeol's legal team filed a formal objection with the Seoul Central District Court on Wednesday, pushing back against an arrest warrant request from the special counsel investigating his December 3 martial law declaration. They argued that the warrant lacks legal basis and violates Yoon's right to a fair defense. Before the special counsel took over, Yoon had been summoned three times by the police -- on June 5, 12, and 19 -- but declined to appear on each occasion. He made it clear that he did not intend to respond during the police investigation phase, prompting concerns that he was trying to run out the clock on the limited-duration inquiry. In the written opinion submitted to the court, Yoon's lawyers claimed the request was procedurally improper and blindsided the former president. "President Yoon has not received a single summons from the special counsel. We have not been informed of where the office is located, who the lead prosecutor is, or where any questioning would take place," the lawyers said in a statement. "Skipping every basic procedure and going straight to an arrest request is impossible to understand and seriously infringes on his legal rights." The team also questioned the legitimacy of the warrant, noting that it was based on summons issued during an earlier police investigation. "The police and the special counsel are clearly separate investigative bodies," the statement read. "Basing a special counsel's arrest warrant on police summons lacks legal validity and procedural fairness." The court is currently reviewing the submission and could issue a decision as early as today. Unlike detention warrants, arrest warrants in South Korea can be granted without a formal hearing. Special Counsel Cho Eon-seok filed the arrest warrant on Jun. 24, just six days after formally launching the investigation. Yoon is facing multiple charges, including obstruction of official duties, abuse of power, and instigating violations of the Presidential Security Act. Prosecutors allege that he ordered the Presidential Security Service to block police from arresting him on Jan. 3, and that he later instructed top military intelligence officials to delete encrypted phone records linked to the martial law plan. Yoon's lawyers said he had intended to cooperate with the special counsel and appear voluntarily once a schedule was agreed upon. They characterized the arrest warrant as an ambush and reiterated that he is willing to respond to a properly issued summons. The charges stem from Yoon's declaration of martial law on Dec. 3, 2024. The move, which bypassed the National Assembly, included the deployment of military units and the activation of emergency communication protocols, raising serious constitutional concerns. Two failed attempts to arrest Yoon followed in January. On both January 3 and January 15, officers from the Corruption Investigation Office for High-ranking Officials (CIO) were stopped by the Presidential Security Service at the gates of his residence. Yoon's legal team at the time argued the CIO lacked the authority to detain a sitting or former president under the Constitution. On April 4, 2025, the Constitutional Court upheld the National Assembly's impeachment of Yoon, officially removing him from office. It was the first time a South Korean president had been impeached and ousted over allegations related to insurrection. After the ruling, the case was transferred to prosecutors. In early June, the National Assembly passed legislation establishing a special counsel to investigate whether Yoon's actions amounted to insurrection or treason under the Criminal Act. Cho's team began its work on June 18 and has moved quickly. Former Defense Minister Kim Yong-hyun was indicted for allegedly ordering the destruction of evidence, and prosecutors are now seeking an additional detention warrant for him. The special counsel has emphasized the urgency of the probe, which must be completed within 150 days by law. 2025-06-25 10:16:16